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Tj ET Q q 0 0 0 rg BT 434.02 403.65 Td (Y) Tj ET Q q 0 0 0 rg BT 439.31 403.65 Td (es) Tj ET Q /GS0 gs q 7.57 0 0 8.73 448.51 401.82 cm /I3 Do Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 456.09 403.65 Td (No) Tj ET Q /GS0 gs q 7.58 0 0 8.73 479.23 401.82 cm /I4 Do Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 31.50 383.25 Td (Indicate by check mark if the registrant is not required to file reports pursuant to Section13 or Section15\(d\) of the Exchange ) Tj ET Q q 0 0 0 rg BT 458.98 383.25 Td (Act.) 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Tj ET Q q 0 0 0 rg BT 421.12 151.20 Td (Y) Tj ET Q q 0 0 0 rg BT 426.41 151.20 Td (es) Tj ET Q /GS0 gs q 7.57 0 0 8.73 435.61 149.37 cm /I18 Do Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 443.19 151.20 Td (No) Tj ET Q /GS0 gs q 7.58 0 0 8.73 466.32 149.37 cm /I19 Do Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 31.50 131.40 Td (Aggregate market value of the common stock held by non-af) Tj ET Q q 0 0 0 rg BT 238.35 131.40 Td (filiates of the registrant: No established market exists for the registrant) Tj ET Q q 0 0 0 rg BT 480.54 131.40 Td (s common stock.) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 31.50 111.60 Td (As of ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.28 111.60 Td (March16, 2018) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 106.34 111.60 Td (,no shares of the registrant) Tj ET Q q 0 0 0 rg BT 200.76 111.60 Td (s Class ) Tj ET Q q 0 0 0 rg BT 226.58 111.60 Td (T) Tj ET Q q 0 0 0 rg BT 231.62 111.60 Td ( common stock, Class S common stock, Class D common stock, Class I common stock, and Class JX ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 22.50 101.40 Td (common stock were outstanding, and approximately ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 202.62 101.40 Td (19.2 million) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 244.17 101.40 Td ( shares of the registrant) Tj ET Q q 0 0 0 rg BT 325.85 101.40 Td (s Class ) Tj ET Q q 0 0 0 rg BT 351.35 101.40 Td (AX common stock, ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 419.82 101.40 Td (20.1 million) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 461.38 101.40 Td ( shares of the registrant) Tj ET Q q 0 0 0 rg BT 543.05 101.40 Td (s Class ) Tj ET Q q 0 0 0 rg BT 568.88 101.40 Td (TX ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 22.50 91.20 Td (common stock and ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 88.84 91.20 Td (0.1 million) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 126.15 91.20 Td ( shares of the registrant) Tj ET Q q 0 0 0 rg BT 207.82 91.20 Td (s Class IX common stock were outstanding.) 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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 646.07 Td (Mine Safety Disclosures) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.85 632.23 Td (P) Tj ET Q q 0 0 0 rg BT 293.59 632.23 Td (AR) Tj ET Q q 0 0 0 rg BT 307.48 632.23 Td (T) Tj ET Q q 0 0 0 rg BT 313.89 632.23 Td (II) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 618.23 Td (Item 5.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 618.07 Td (Market for Registrant) Tj ET Q q 0 0 0 rg BT 203.42 618.07 Td (s Common Equity) Tj ET Q q 0 0 0 rg BT 275.55 618.07 Td (, Related Stockholder Matters and Issuer Purchases of Equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 608.07 Td (Securities) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 594.23 Td (Item 6.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 594.07 Td (Selected Financial Data) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 580.23 Td (Item 7.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 580.07 Td (Management) Tj ET Q q 0 0 0 rg BT 168.98 580.07 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 238.15 580.07 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 566.23 Td (Item 7A.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 566.07 Td (Quantitative and Qualitative Disclosures ) Tj ET Q q 0 0 0 rg BT 278.40 566.07 Td (About Market Risk) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 552.23 Td (Item 8.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 552.07 Td (Financial Statements and Supplementary Data) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 538.23 Td (Item 9.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 538.07 Td (Changes in and Disagreements ) Tj ET Q q 0 0 0 rg BT 239.90 538.07 Td (W) Tj ET Q q 0 0 0 rg BT 248.94 538.07 Td (ith ) Tj ET Q q 0 0 0 rg BT 261.44 538.07 Td (Accountants on ) Tj ET Q q 0 0 0 rg BT 325.88 538.07 Td (Accounting and Financial Disclosure) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 524.23 Td (Item 9A.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 524.07 Td (Controls and Procedures) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 510.23 Td (Item 9B.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 510.07 Td (Other Information) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 285.90 496.23 Td (P) Tj ET Q q 0 0 0 rg BT 291.64 496.23 Td (AR) Tj ET Q q 0 0 0 rg BT 305.53 496.23 Td (T) Tj ET Q q 0 0 0 rg BT 311.94 496.23 Td (III) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 482.23 Td (Item 10.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 482.07 Td (Directors, Executive Of) Tj ET Q q 0 0 0 rg BT 209.06 482.07 Td (ficers and Corporate Governance) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 468.23 Td (Item 1) Tj ET Q q 0 0 0 rg BT 80.21 468.23 Td (1.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 468.07 Td (ExecutiveCompensation) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 453.18 Td (Item 12.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 453.17 Td (Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 439.23 Td (Item 13.) 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Such forward-looking statements relate to, without limitation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (potential future acquisitions, the completion of projects in development, economic conditions that may impact our operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (our future leverage and financial position, our future capital expenditures, future distributions, other developments and trends in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (the commercial real estate industry and our business strategy) Tj ET Q q 0 0 0 rg BT 292.61 634.25 Td (. Forward-looking statements are generally identifiable by the use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (of the words may) Tj ET Q q 0 0 0 rg BT 123.50 622.25 Td (, will, should, expect, could, intend, plan, anticipate, estimate, believe, continue, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (predict, potential or the negative of these words or other comparable terminology) Tj ET Q q 0 0 0 rg BT 392.00 610.25 Td (. ) Tj ET Q q 0 0 0 rg BT 399.32 610.25 Td (These statements are not guarantees of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (future performance, and involve certain risks, uncertainties and assumptions that are dif) Tj ET Q q 0 0 0 rg BT 400.53 598.25 Td (ficult to predict.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 574.25 Td (The forward-looking statements in this ) Tj ET Q q 0 0 0 rg BT 225.47 574.25 Td (Annual Report on Form10-K are based on our current expectations, plans, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (estimates, assumptions and beliefs that involve numerous risks and uncertainties. ) Tj ET Q q 0 0 0 rg BT 378.55 562.25 Td (Assumptions relating to the foregoing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (involve judgments with respect to, among other things, future economic, competitive and market conditions and future business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (decisions, all of which are dif) Tj ET Q q 0 0 0 rg BT 168.12 538.25 Td (ficult or impossible to predict accurately and many of which are beyond our control. ) Tj ET Q q 0 0 0 rg BT 509.68 538.25 Td (Any of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (assumptions underlying forward-looking statements could prove to be inaccurate. ) Tj ET Q q 0 0 0 rg BT 381.12 526.25 Td (T) Tj ET Q q 0 0 0 rg BT 386.53 526.25 Td (o the extent that our assumptions dif) Tj ET Q q 0 0 0 rg BT 531.88 526.25 Td (fer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (from actual results, our ability to meet such forward-looking statements, including our ability to generate positive cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (from operations, provide distributions to our stockholders and maintain the value of the real estate properties in which we hold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (an interest, may be significantly hindered.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 466.25 Td (Our stockholders are cautioned not to place undue reliance on any forward-looking statement in this ) Tj ET Q q 0 0 0 rg BT 470.38 466.25 Td (Annual Report on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td (Form10-K. ) Tj ET Q q 0 0 0 rg BT 101.67 454.25 Td (All forward-looking statements are made as of the date of this ) Tj ET Q q 0 0 0 rg BT 351.32 454.25 Td (Annual Report on Form10-K, and the risk that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (actual results will dif) Tj ET Q q 0 0 0 rg BT 133.96 442.25 Td (fer materially from the expectations expressed in this ) Tj ET Q q 0 0 0 rg BT 348.34 442.25 Td (Annual Report on Form10-K may increase with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (passage of time. In light of the significant uncertainties inherent in the forward-looking statements in this ) Tj ET Q q 0 0 0 rg BT 474.90 430.25 Td (Annual Report on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (Form10-K, the inclusion of such forward-looking statements should not be regarded as a representation by us or any other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (person that the objectives and plans set forth in this ) Tj ET Q q 0 0 0 rg BT 257.18 406.25 Td (Annual Report on Form10-K will be achieved. Please see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.34 406.25 Td (Item1A.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.89 406.25 Td ( Risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (Factors for a discussion of some of the risks and uncertainties that could cause actual results to dif) Tj ET Q q 0 0 0 rg BT 446.66 394.25 Td (fer materially from those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (presented in certain forward-looking statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (Item1.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 79.49 358.25 Td (Business) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (General Description of Business and Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 310.25 Td (Hines Global Income ) Tj ET Q q 0 0 0 rg BT 155.35 310.25 Td (T) Tj ET Q q 0 0 0 rg BT 161.11 310.25 Td (rust, Inc. \(Hines Global\), formerly known as Hines Global REIT) Tj ET Q q 0 0 0 rg BT 428.08 310.25 Td ( II, Inc., was formed as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (Maryland corporation on July31, 2013, for the purpose of raising capital through public stock of) Tj ET Q q 0 0 0 rg BT 436.74 298.25 Td (ferings and investing in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (diversified portfolio of quality commercial real estate properties and other real estate investments located throughout the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (States and internationally) Tj ET Q q 0 0 0 rg BT 150.49 274.25 Td (. Hines Global is sponsored by Hines Interests Limited Partnership \(Hines\), a fully integrated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (global real estate investment and management firm that has acquired, developed, owned, operated and sold real estate for over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (60 years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 228.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 228.25 Td (e conduct most of our activities through, and most of our real estate investments are held directly or indirectly by) Tj ET Q q 0 0 0 rg BT 527.58 228.25 Td (, Hines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.25 Td (Global REIT) Tj ET Q q 0 0 0 rg BT 101.25 216.25 Td ( II Properties, LP) Tj ET Q q 0 0 0 rg BT 169.76 216.25 Td ( \(the Operating Partnership\), which was formed on July 31, 2013. ) Tj ET Q q 0 0 0 rg BT 445.53 216.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.97 216.25 Td (March29, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.57 216.25 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.25 Td (owned interests in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.76 204.25 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.76 204.25 Td ( real estate investments. ) Tj ET Q q 0 0 0 rg BT 245.10 204.25 Td (The properties contain, in the aggregate, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.92 204.25 Td (2.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.82 204.25 Td ( square feet of leasable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 192.25 Td (space. ) Tj ET Q q 0 0 0 rg BT 79.03 192.25 Td (The properties represent investments in a variety of real estate classes and geographic markets. See) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.76 192.25 Td ( Item 2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.09 192.25 Td (. Properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.25 Td (for additional information regarding our real estate portfolio.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 156.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 156.25 Td (e have no employees. Our business is managed by Hines Global REIT) Tj ET Q q 0 0 0 rg BT 359.51 156.25 Td ( II ) Tj ET Q q 0 0 0 rg BT 370.62 156.25 Td (Advisors LP) Tj ET Q q 0 0 0 rg BT 420.53 156.25 Td ( \(the Advisor\), an af) Tj ET Q q 0 0 0 rg BT 510.03 156.25 Td (filiate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.25 Td (Hines, under the terms and conditions of an advisory agreement between us, the Operating Partnership and the ) Tj ET Q q 0 0 0 rg BT 493.54 144.25 Td (Advisor \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.25 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 93.11 132.25 Td (Agreement\). ) Tj ET Q q 0 0 0 rg BT 152.25 132.25 Td (As compensation for these services, we pay our ) Tj ET Q q 0 0 0 rg BT 344.70 132.25 Td (Advisor asset management fees, a performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.25 Td (participation allocation, and fees for other services and we reimburse certain of the ) Tj ET Q q 0 0 0 rg BT 382.70 120.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 415.29 120.25 Td () Tj ET Q q 0 0 0 rg BT 418.07 120.25 Td (s expenses incurred on our behalf ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.25 Td (in accordance with the ) Tj ET Q q 0 0 0 rg BT 141.68 108.25 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 180.85 108.25 Td (Agreement. Hines or af) Tj ET Q q 0 0 0 rg BT 277.02 108.25 Td (filiates of Hines manage the leasing and operations of most of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.25 Td (properties in which we invest and, accordingly) Tj ET Q q 0 0 0 rg BT 235.74 96.25 Td (, we pay Hines property management and leasing fees in connection with these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.25 Td (services. Hines is owned and controlled by) Tj ET Q q 0 0 0 rg BT 222.70 84.25 Td (, or for the benefit of, Gerald D. Hines and his son Jef) Tj ET Q q 0 0 0 rg BT 437.74 84.25 Td (frey C. Hines, the Chairman of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 72.25 Td (our board of directors. Hines and its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.63 72.25 Td (4,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.13 72.25 Td (employees have over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.54 72.25 Td (60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.54 72.25 Td (years of experience in the areas of investment selection, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 60.25 Td (underwriting, due diligence, portfolio management, asset management, property management, leasing, disposition, finance, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 48.25 Td (accounting and investor relations.) Tj ET Q endstream endobj 9 0 obj <> endobj 10 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 742.10 Td (Our of) Tj ET Q q 0 0 0 rg BT 93.70 742.10 Td (fice is located at 2800 Post Oak Boulevard, Suite5000, Houston, ) Tj ET Q q 0 0 0 rg BT 356.26 742.10 Td (T) Tj ET Q q 0 0 0 rg BT 361.67 742.10 Td (exas 77056-61) Tj ET Q q 0 0 0 rg BT 419.90 742.10 Td (18. Our telephone number is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (1-888-220-6121. Our web site is www) Tj ET Q q 0 0 0 rg BT 203.27 730.10 Td (.hinessecurities.com/reits/hgit. ) Tj ET Q q 0 0 0 rg BT 327.51 730.10 Td (The information on our website is not incorporated by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (reference into this report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 694.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 694.10 Td (e refer to Hines Global, the Operating Partnership and its wholly-owned subsidiaries as the Company) Tj ET Q q 0 0 0 rg BT 485.11 694.10 Td (, and the use of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (we, our) Tj ET Q q 0 0 0 rg BT 92.41 682.10 Td (, us or similar pronouns in this annual report refers to Hines Global or the Company as required by the context in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (which such pronoun is used.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (Our Public Offerings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 622.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 622.10 Td (e raise capital for our investments through public of) Tj ET Q q 0 0 0 rg BT 283.12 622.10 Td (ferings of our common stock. ) Tj ET Q q 0 0 0 rg BT 403.47 622.10 Td (W) Tj ET Q q 0 0 0 rg BT 412.11 622.10 Td (e commenced our initial public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 610.10 Td (fering of up to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.63 610.10 Td ($2.5 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.75 610.10 Td ( in shares of our common stock \(the Initial Of) Tj ET Q q 0 0 0 rg BT 351.02 610.10 Td (fering\) in) Tj ET Q q 0 0 0 rg BT 394.89 610.10 Td (August 2014. ) Tj ET Q q 0 0 0 rg BT 450.73 610.10 Td (As of December 6, 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (Hines Global began operating as a non-exchange traded real estate investment trust \(REIT\) with no tar) Tj ET Q q 0 0 0 rg BT 468.33 598.10 Td (geted liquidity window ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (instead of operating as a finite-life REIT) Tj ET Q q 0 0 0 rg BT 210.92 586.10 Td (. On September 30, 2017, we suspended the sale of shares in the primary portion of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (Initial Of) Tj ET Q q 0 0 0 rg BT 86.25 574.10 Td (fering, while continuing to of) Tj ET Q q 0 0 0 rg BT 203.55 574.10 Td (fer up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.92 574.10 Td ($150.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.82 574.10 Td ( of common stock pursuant to our distribution reinvestment plan. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 562.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.02 562.10 Td (, the Company received gross of) Tj ET Q q 0 0 0 rg BT 294.25 562.10 Td (fering proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.75 562.10 Td ($405.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 562.10 Td ( including shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (issued under its distribution reinvestment plan.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 526.10 Td (On December 6, 2017 we commenced a second public of) Tj ET Q q 0 0 0 rg BT 296.13 526.10 Td (fering of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.11 526.10 Td ($2.5 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.23 526.10 Td ( in shares of common stock including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td ($500.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.39 514.10 Td ( of shares of) Tj ET Q q 0 0 0 rg BT 157.36 514.10 Td (fered under ourdistribution reinvestment plan \(the Follow-on Of) Tj ET Q q 0 0 0 rg BT 421.00 514.10 Td (fering\). Our Follow-on Of) Tj ET Q q 0 0 0 rg BT 530.24 514.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (reflects a restructuring \(the Restructuring\) that our board of directors believes is in the best interests of our stockholders. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (Pursuant to the Restructuring, among other things:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 466.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 466.10 Td (we began operating as a non-exchange traded REIT) Tj ET Q q 0 0 0 rg BT 292.17 466.10 Td ( with no tar) Tj ET Q q 0 0 0 rg BT 337.82 466.10 Td (geted liquidity window;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 451.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 451.10 Td (we reduced broker dealer fees payable to the dealer manager and expenses in connection with our public of) Tj ET Q q 0 0 0 rg BT 514.30 451.10 Td (ferings;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 436.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 436.10 Td (we restructured the fees we pay to the ) Tj ET Q q 0 0 0 rg BT 238.77 436.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 270.59 436.10 Td (, including the elimination of acquisition fees and disposition fees;) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 67.50 419.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 419.90 Td (a cap was placed on the monthly asset management fee payable to our ) Tj ET Q q 0 0 0 rg BT 367.90 419.90 Td (Advisor equal to 1/12th of 1.25% of NA) Tj ET Q q 0 0 0 rg BT 528.25 419.90 Td (V) Tj ET Q q 0 0 0 rg BT 535.29 419.90 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 407.90 Td (the end of each month;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 392.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 392.90 Td (we implemented a performance participation allocation payable to our ) Tj ET Q q 0 0 0 rg BT 368.44 392.90 Td (Advisor to better align our ) Tj ET Q q 0 0 0 rg BT 476.48 392.90 Td (Advisor) Tj ET Q q 0 0 0 rg BT 509.07 392.90 Td () Tj ET Q q 0 0 0 rg BT 511.85 392.90 Td (s interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 380.90 Td (with our overall financial performance \(see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.97 380.90 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.91 380.90 Td ( Related Party ) Tj ET Q q 0 0 0 rg BT 359.38 380.90 Td (T) Tj ET Q q 0 0 0 rg BT 365.14 380.90 Td (ransactions for a description of this performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 368.90 Td (based allocation\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 353.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 353.90 Td (we changed the frequency with which we calculate the NA) Tj ET Q q 0 0 0 rg BT 319.94 353.90 Td (V) Tj ET Q q 0 0 0 rg BT 326.98 353.90 Td ( per share from quarterly to monthly; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 338.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 338.90 Td (we amended our share redemption program applicable to Class IX shares and Class JX shares in order to make it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 326.90 Td (applicable to all classes of shares, which enhances liquidity for current Class ) Tj ET Q q 0 0 0 rg BT 394.02 326.90 Td (AX and Class ) Tj ET Q q 0 0 0 rg BT 451.89 326.90 Td (TX stockholders and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 314.90 Td (creates a lar) Tj ET Q q 0 0 0 rg BT 133.06 314.90 Td (ger liquidity pool which is equivalent to 20% of the Company) Tj ET Q q 0 0 0 rg BT 383.58 314.90 Td (s aggregate NA) Tj ET Q q 0 0 0 rg BT 444.48 314.90 Td (V) Tj ET Q q 0 0 0 rg BT 451.53 314.90 Td ( \(subject to additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 302.90 Td (limitations described in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.87 302.90 Td (Item 5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.70 302.90 Td (\) to benefit all stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 278.90 Td (On October 3, 2017, we announced a new NA) Tj ET Q q 0 0 0 rg BT 251.16 278.90 Td (V) Tj ET Q q 0 0 0 rg BT 258.20 278.90 Td ( per share of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.40 278.90 Td ($9.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.90 278.90 Td ( as of ) Tj ET Q q 0 0 0 rg BT 356.50 278.90 Td (August 31, 2017, as compared to our previously ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.90 Td (determined NA) Tj ET Q q 0 0 0 rg BT 110.13 266.90 Td (V) Tj ET Q q 0 0 0 rg BT 117.18 266.90 Td ( per share of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.37 266.90 Td ($9.65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.87 266.90 Td ( as of December 31, 2016. ) Tj ET Q q 0 0 0 rg BT 301.57 266.90 Td (As noted above, we began determining a new NA) Tj ET Q q 0 0 0 rg BT 499.38 266.90 Td (V) Tj ET Q q 0 0 0 rg BT 506.42 266.90 Td ( per share on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.90 Td (a monthly basis as of the end of January 2018. Our NA) Tj ET Q q 0 0 0 rg BT 271.22 254.90 Td (V) Tj ET Q q 0 0 0 rg BT 278.26 254.90 Td ( per share as of January 31, 2018 and February 28, 2018 was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.48 254.90 Td ($9.78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.98 254.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.90 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 242.90 Td ($9.78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 242.90 Td (, respectively) Tj ET Q q 0 0 0 rg BT 141.60 242.90 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 218.90 Td (Primary Investment Objectives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 194.90 Td (Our primary investment objectives are to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 170.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 170.90 Td (provide income in the form of regular) Tj ET Q q 0 0 0 rg BT 227.16 170.90 Td (, stable cash distributions to achieve an attractive distribution yield;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 152.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 152.90 Td (preserve and protect invested capital;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 134.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 134.90 Td (invest in a diversified portfolio of quality commercial real estate properties and other real estate investments across a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 122.90 Td (range of asset types throughout the U.S. and internationally;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 104.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 104.90 Td (realize appreciation in NA) Tj ET Q q 0 0 0 rg BT 180.99 104.90 Td (V) Tj ET Q q 0 0 0 rg BT 188.03 104.90 Td ( from proactive investment management and asset management;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 86.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 86.90 Td (provide an investment alternative for investors seeking to allocate a portion of their long-term investment portfolios to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 74.90 Td (commercial real estate with generally lower volatility than publicly traded real estate companies; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 56.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 56.90 Td (qualify for and remain qualified as a REIT) Tj ET Q q 0 0 0 rg BT 246.53 56.90 Td ( for federal income tax purposes.) Tj ET Q endstream endobj 11 0 obj <> endobj 12 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (Acquisition and Investment Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 718.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 718.25 Td (e have invested and expect to continue to invest the proceeds from our public of) Tj ET Q q 0 0 0 rg BT 395.85 718.25 Td (ferings in a diversified portfolio of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (quality commercial real estate properties and other real estate investments throughout the United States and internationally) Tj ET Q q 0 0 0 rg BT 539.52 706.25 Td (. ) Tj ET Q q 0 0 0 rg BT 546.84 706.25 Td (W) Tj ET Q q 0 0 0 rg BT 555.48 706.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (may purchase properties or make other real estate investments that relate to varying property types including of) Tj ET Q q 0 0 0 rg BT 494.72 694.25 Td (fice, retail, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (industrial, multi-family residential, student housing and hospitality or leisure. ) Tj ET Q q 0 0 0 rg BT 363.99 682.25 Td (W) Tj ET Q q 0 0 0 rg BT 372.63 682.25 Td (e may invest in operating properties, properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (under development, and undeveloped properties such as land. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 646.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 646.25 Td (e expect to invest in real estate-related securities and debt investments for purposes of generating additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (diversification and income as well as to provide additional liquidity for our share redemption program, cash management and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (other purposes. Real estate-related securities may include, but are not limited to, common or preferred stocks of publicly-traded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (REIT) Tj ET Q q 0 0 0 rg BT 71.02 610.25 Td (s or real estate operating companies, or REOC, debt or bond securities of such companies, CMBS, U.S. government and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (agency securities, or other debt and equity securities of public or private real estate-related companies. ) Tj ET Q q 0 0 0 rg BT 461.65 598.25 Td (T) Tj ET Q q 0 0 0 rg BT 467.06 598.25 Td (o the extent that we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (invest in real estate-related debt, our primary investments may include, but are not limited to, originations of and participations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (in commercial mortgage loans secured by real estate, B-Notes, mezzanine loans and certain other types of debt-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (investments that may help us reach our diversification, liquidity and other investment objectives. ) Tj ET Q q 0 0 0 rg BT 438.95 562.25 Td (W) Tj ET Q q 0 0 0 rg BT 447.59 562.25 Td (e may use third parties and/) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (or Hines and its af) Tj ET Q q 0 0 0 rg BT 122.63 550.25 Td (filiates to source, underwrite and service our real estate-related securities and debt investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 526.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 526.25 Td (e believe that there is an opportunity to create attractive total returns by employing a strategy of investing in a diversified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (portfolio of such investments which are well-selected, well-managed and disposed of at an optimal time. ) Tj ET Q q 0 0 0 rg BT 472.53 514.25 Td (W) Tj ET Q q 0 0 0 rg BT 481.17 514.25 Td (e may use proceeds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (from disposals to make additional strategic acquisitions or we may use proceeds from disposals of properties for future capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (expenditures, leasing capital needs, or reducing our leverage in the portfolio. Our principal tar) Tj ET Q q 0 0 0 rg BT 427.80 490.25 Td (geted assets are investments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (properties, and other real estate investments that relate to properties, that have quality construction and desirable locations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (which can attract quality tenants. ) Tj ET Q q 0 0 0 rg BT 186.21 466.25 Td (These types of investments are, or relate to, properties generally located in central business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (districts or suburban markets of major metropolitan cities worldwide. ) Tj ET Q q 0 0 0 rg BT 331.76 454.25 Td (W) Tj ET Q q 0 0 0 rg BT 340.39 454.25 Td (e intend to invest in a geographically diverse portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (in order to reduce the risk of reliance on a particular market, a particular property and/or a particular tenant. ) Tj ET Q q 0 0 0 rg BT 484.68 442.25 Td (W) Tj ET Q q 0 0 0 rg BT 493.31 442.25 Td (e anticipate that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (international real estate investments may comprise a substantial portion of our portfolio.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 406.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 406.25 Td (e may invest in real estate properties and other real estate investments directly by owning 100% of such investments or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (indirectly by owning less than 100% of such investments through co-ownership or joint-venture arrangements with third parties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (or with other Hines-af) Tj ET Q q 0 0 0 rg BT 137.90 382.25 Td (filiated entities. ) Tj ET Q q 0 0 0 rg BT 204.92 382.25 Td (W) Tj ET Q q 0 0 0 rg BT 213.56 382.25 Td (e intend to fund our future acquisitions and investments primarily with proceeds raised ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (in our public of) Tj ET Q q 0 0 0 rg BT 111.25 370.25 Td (ferings and potential follow-on of) Tj ET Q q 0 0 0 rg BT 246.04 370.25 Td (ferings as well as with proceeds from debt financings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 346.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 346.25 Td (e are not limited as to the asset types or geographic areas in which we may invest and conduct our operations. ) Tj ET Q q 0 0 0 rg BT 519.43 346.25 Td (W) Tj ET Q q 0 0 0 rg BT 528.07 346.25 Td (e are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (not specifically limited in the number or size of investments we may make, or on the percentage of net proceeds of our public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 322.25 Td (ferings that we may invest in a single property) Tj ET Q q 0 0 0 rg BT 242.51 322.25 Td (, a real estate investment, real estate-related securities or a loan. ) Tj ET Q q 0 0 0 rg BT 501.56 322.25 Td (Although the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (actual percentages may vary from those presently anticipated, after the proceeds of our public of) Tj ET Q q 0 0 0 rg BT 434.99 310.25 Td (ferings and any subsequent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 298.25 Td (ferings have been fully invested, we anticipate that international real estate investments will comprise between 40% and 60% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (of our portfolio and real estate investments other than the acquisition of commercial real estate properties will comprise less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (than 30% of our portfolio. ) Tj ET Q q 0 0 0 rg BT 159.02 274.25 Td (The number) Tj ET Q q 0 0 0 rg BT 207.21 274.25 Td (, size and mix of investments we make will depend upon real estate and market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (conditions and other circumstances existing at the time we are evaluating investment opportunities and the amount of proceeds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (we raise in our public of) Tj ET Q q 0 0 0 rg BT 146.79 250.25 Td (ferings and any subsequent of) Tj ET Q q 0 0 0 rg BT 266.02 250.25 Td (ferings.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (Financing Strategy and Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 202.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.94 202.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.53 202.25 Td (, our portfolio was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.16 202.25 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.49 202.25 Td ( leveraged \(based on the valuations of our real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (investments using the ) Tj ET Q q 0 0 0 rg BT 138.11 190.25 Td (August 2017 appraised values and the purchase price of Queen) Tj ET Q q 0 0 0 rg BT 392.75 190.25 Td (s Court Student Residences\) with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (weighted average interest rate of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.49 178.25 Td (2.63%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.32 178.25 Td (. ) Tj ET Q q 0 0 0 rg BT 215.64 178.25 Td (W) Tj ET Q q 0 0 0 rg BT 224.28 178.25 Td (e expect that once we have fully invested the proceeds of our public of) Tj ET Q q 0 0 0 rg BT 506.49 178.25 Td (ferings, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (debt financing, including our pro rata share of the debt financing of entities in which we invest, will be in the range of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (approximately 40%-60% of the aggregate value of our real estate investments and other assets. Financing for acquisitions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (investments may be obtained at the time an asset is acquired or an investment is made or at such later time as we determine to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (be appropriate. In addition, debt financing may be used from time to time for property improvements, lease inducements, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (tenant improvements, purchase of real estate-related securities and other working capital needs, including the payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (distributions. ) Tj ET Q q 0 0 0 rg BT 106.45 106.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 156.36 106.25 Td (, the amount of debt placed on an individual property or related to a particular investment, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (our pro rata share of the amount of debt incurred by an individual entity in which we invest, may be less than 40% or more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (60% of the value of such property/investment or the value of the assets owned by such entity) Tj ET Q q 0 0 0 rg BT 420.42 82.25 Td (, depending on market conditions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (and other factors. ) Tj ET Q endstream endobj 13 0 obj <> endobj 14 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 742.10 Td (Our aggregate borrowings, secured and unsecured, must be reasonable in relation to our net assets and must be reviewed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (by our board of directors at least quarterly) Tj ET Q q 0 0 0 rg BT 217.40 730.10 Td (. Our charter limits our borrowing to 300% of our net assets \(which approximates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (75% of the cost of our assets\) unless any excess borrowing is approved by a majority of our independent directors and is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (disclosed to our stockholders in our next quarterly report along with justification for the excess. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 682.10 Td (Our existing indebtedness and any additional indebtedness we do incur will likely be subject to continuing covenants, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (we will likely be required to make continuing representations and warranties about our company in connection with such debt. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (Moreover) Tj ET Q q 0 0 0 rg BT 88.53 658.10 Td (, some or all of our debt may be secured by some or all of our assets. If we default on the payment of interest or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (principal on any such debt, breach any representation or warranty in connection with any borrowing or violate any covenant in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (any loan document, our lender may accelerate the maturity of such debt, requiring us to immediately repay all outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (principal.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (Distribution Objectives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 574.10 Td (In order to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 182.84 574.10 Td ( for federal income tax purposes, we generally must distribute at least 90% of our taxable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (income \(excluding capital gains\) to our stockholders. ) Tj ET Q q 0 0 0 rg BT 266.76 562.10 Td (W) Tj ET Q q 0 0 0 rg BT 275.40 562.10 Td (e intend, although we are not legally obligated, to continue to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (regular monthly distributions to holders of our common shares in excess of the level required to maintain our REIT) Tj ET Q q 0 0 0 rg BT 510.33 550.10 Td ( status ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (unless our results of operations, our general financial condition, general economic conditions or other factors inhibit us from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (doing so. Distributions are authorized at the discretion of our board of directors, which is directed, in substantial part, by its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (obligation to cause us to comply with the REIT) Tj ET Q q 0 0 0 rg BT 238.73 514.10 Td ( requirements of the Internal Revenue Code of 1986, as amended \(the Code\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.54 490.10 Td (ith the authorization of our board of directors, we declared distributions daily through December 31, 2017. Beginning in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (January 2018 we have and intend to continue to accrue and pay regular distributions on a monthly basis, as of monthly record ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (dates. ) Tj ET Q q 0 0 0 rg BT 77.37 466.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.40 466.10 Td (ith the authorization of our board of directors, we declared monthly distributions from January 2018 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.10 454.10 Td ( at a gross distribution rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.80 454.10 Td ($0.05083) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.30 454.10 Td ( per month for each share class less any applicable distribution and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (stockholder servicing fees. Distributions will be made on all classes of shares of our common stock, including any outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (shares related to our Initial Of) Tj ET Q q 0 0 0 rg BT 169.55 430.10 Td (fering \(IPO Shares\) at the same time. ) Tj ET Q q 0 0 0 rg BT 331.44 430.10 Td (All distributions were or will be paid in cash or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (reinvested in shares of our common stock for those participating in our distribution reinvestment plan and have been or will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (paid or issued, respectively) Tj ET Q q 0 0 0 rg BT 157.71 406.10 Td (, on the first business day following the completion of the month to which they relate. Distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (reinvested pursuant to our distribution reinvestment plan were or will be reinvested in shares of the same class as the shares on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (which the distributions are being made. Some or all of the cash distributions may be paid from sources other than cash flows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (from operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 346.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 346.10 Td (e have not generated and we may continue to be unable to generate suf) Tj ET Q q 0 0 0 rg BT 358.90 346.10 Td (ficient cash flow from operations to fully fund ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (distributions paid. ) Tj ET Q q 0 0 0 rg BT 126.54 334.10 Td (Therefore, our distributions have been paid and may continue to be paid, and during the of) Tj ET Q q 0 0 0 rg BT 488.20 334.10 Td (fering phase, are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (likely to be paid at least partially from other sources, such as proceeds from our debt financings, proceeds from the of) Tj ET Q q 0 0 0 rg BT 519.72 322.10 Td (ferings, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (cash advances by our ) Tj ET Q q 0 0 0 rg BT 136.69 310.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 168.51 310.10 Td (, cash resulting from a waiver or deferral of fees and/or proceeds from the sale of assets. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (example, we funded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.80 298.10 Td (56%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.13 298.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.13 298.10 Td (60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.46 298.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.90 298.10 Td (23%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.23 298.10 Td ( of total distributions for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.19 298.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.77 298.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.77 298.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.77 298.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.21 298.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.21 298.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 286.10 Td (, with cash flows from financing activities, which includes of) Tj ET Q q 0 0 0 rg BT 341.64 286.10 Td (fering proceeds.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 262.10 Td (For a summary of distributions declared and paid by us for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.64 262.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.23 262.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.23 262.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.23 262.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.67 262.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.67 262.10 Td (, refer to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (Item 7.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.83 250.10 Td ( Management) Tj ET Q q 0 0 0 rg BT 139.74 250.10 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 208.91 250.10 Td (Analysis of Financial Condition and Results of Operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.25 226.10 Td (ax Status) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 202.10 Td (e have elected to be taxed as a REIT) Tj ET Q q 0 0 0 rg BT 221.44 202.10 Td ( under Sections 856 through 860 of the Code, beginning with our taxable year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (December31, 2015. Our management believes that we operate in such a manner as to qualify for treatment as a REIT) Tj ET Q q 0 0 0 rg BT 522.76 190.10 Td ( and we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (intend to operate in the foreseeable future in such a manner so that we will remain qualified as a REIT) Tj ET Q q 0 0 0 rg BT 458.34 178.10 Td ( for federal income tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (purposes. ) Tj ET Q q 0 0 0 rg BT 92.00 166.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 141.34 166.10 Td (, no provision has been made for U.S. federal income taxes for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.01 166.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.59 166.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 154.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 154.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 154.10 Td ( in the accompanying consolidated financial statements. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.81 154.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.81 154.10 Td (, income tax expense recorded by the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (was primarily comprised of foreign income taxes related to the operation of its international properties. ) Tj ET Q q 0 0 0 rg BT 464.19 142.10 Td (The Company does not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (believe it has any uncertain tax positions or unrecognized tax benefits requiring disclosure. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (Competition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 82.10 Td (Numerous real estate companies, real estate investment trusts and U.S.institutional and foreign investors, including Hines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (Global REIT) Tj ET Q q 0 0 0 rg BT 100.69 70.10 Td (, Inc. \(Hines Global REIT\) compete with us in acquiring properties or making other real estate investments and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (obtaining creditworthy tenants to occupy such properties. Many of these entities have significant financial and other resources, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (allowing them to compete ef) Tj ET Q q 0 0 0 rg BT 163.73 46.10 Td (fectively with us. Principal factors of competition in our primary business of acquiring properties ) Tj ET Q endstream endobj 15 0 obj <> endobj 16 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (or making other real estate investments include access to capital, the quality of properties, leasing terms \(including rent and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (other char) Tj ET Q q 0 0 0 rg BT 89.57 730.10 Td (ges and allowances for inducements and tenant improvements\), the quality and breadth of tenant services provided, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (and reputation as an owner and operator of commercial real estate investments in the relevant market. ) Tj ET Q q 0 0 0 rg BT 460.45 718.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 510.35 718.10 Td (, our ability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (to compete depends upon, among other factors, trends of the global, national and local economies, investment alternatives, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (financial condition and operating results of current and prospective tenants, availability and cost of capital, taxes, governmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (regulations, legislation and demographic trends.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 658.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 658.10 Td (e believe Hines) Tj ET Q q 0 0 0 rg BT 140.37 658.10 Td ( extensive real estate experience and depth and breadth of its or) Tj ET Q q 0 0 0 rg BT 393.69 658.10 Td (ganization of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (4,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 646.10 Td (employees located in over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.68 646.10 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.68 646.10 Td (cities across the United States and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.04 646.10 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.04 646.10 Td ( foreign countries allows it to better identify ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (investment opportunities for us. However) Tj ET Q q 0 0 0 rg BT 217.96 634.10 Td (, competition may increase our cost of acquisitions.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 586.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 586.10 Td (e are dependent upon the ability of current tenants to pay their contractual rent amounts as the rents become due. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (year ended December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.17 574.10 Td (, there were no tenants that individually represented more than 10% of our total rental revenue.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (A) Tj ET Q q 0 0 0 rg BT 55.98 550.10 Td (vailable Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 526.10 Td (Stockholders may obtain copies of our filings with the Securities and Exchange Commission \(SEC\), free of char) Tj ET Q q 0 0 0 rg BT 525.82 526.10 Td (ge from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (the website maintained by the SEC at www) Tj ET Q q 0 0 0 rg BT 222.98 514.10 Td (.sec.gov or from our website at www) Tj ET Q q 0 0 0 rg BT 370.63 514.10 Td (.hinessecurities.com/reits/hgit. Further) Tj ET Q q 0 0 0 rg BT 526.58 514.10 Td (, a copy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (of this ) Tj ET Q q 0 0 0 rg BT 76.73 502.10 Td (Annual Report on Form 10-K is located at the SEC) Tj ET Q q 0 0 0 rg BT 284.20 502.10 Td (s Public Reference Room at 100 F Street NE, ) Tj ET Q q 0 0 0 rg BT 467.87 502.10 Td (W) Tj ET Q q 0 0 0 rg BT 476.51 502.10 Td (ashington, D.C. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (20549. Information on the operation of the Public Reference Room can be obtained by calling the SEC at 1-800-SEC-0330. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (Our filings will be available on our website as soon as reasonably practicable after we electronically file such materials with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (SEC. However) Tj ET Q q 0 0 0 rg BT 111.59 466.10 Td (, the information from our website is not incorporated by reference into this report.) Tj ET Q endstream endobj 17 0 obj <> endobj 18 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (Item1A.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 91.71 742.25 Td (Risk Factors) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 718.25 Td (Y) Tj ET Q q 0 0 0 rg BT 76.64 718.25 Td (ou should car) Tj ET Q q 0 0 0 rg BT 131.27 718.25 Td (efully r) Tj ET Q q 0 0 0 rg BT 159.50 718.25 Td (ead and consider the risks described below) Tj ET Q q 0 0 0 rg BT 331.51 718.25 Td (, together with all other information in this r) Tj ET Q q 0 0 0 rg BT 509.20 718.25 Td (eport. If ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (certain of the following risks actually occur) Tj ET Q q 0 0 0 rg BT 223.37 706.25 Td (, it could have a material adverse effect on our business, financial condition, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (r) Tj ET Q q 0 0 0 rg BT 53.02 694.25 Td (esults of operations and our ability to pay distributions would likely suffer materially or could be eliminated entir) Tj ET Q q 0 0 0 rg BT 507.34 694.25 Td (ely) Tj ET Q q 0 0 0 rg BT 518.44 694.25 Td (. ) Tj ET Q q 0 0 0 rg BT 525.76 694.25 Td (As a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (r) Tj ET Q q 0 0 0 rg BT 53.02 682.25 Td (esult, the value of our common shar) Tj ET Q q 0 0 0 rg BT 196.24 682.25 Td (es may decline, and our stockholders could lose all or part of the money they paid to buy ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (our common shar) Tj ET Q q 0 0 0 rg BT 119.69 670.25 Td (es.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (Risks Related to Investing in the Public Offerings) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 622.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 622.25 Td (e have a limited prior operating history) Tj ET Q q 0 0 0 rg BT 235.83 622.25 Td (, and the prior performance of other Hines af) Tj ET Q q 0 0 0 rg BT 422.60 622.25 Td (filiated entities may not be a good ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (measure of our future results; therefore, there is a higher risk that we will not be able to achieve our investment objectives ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (compared to a real estate investment trust with a significant operating history) Tj ET Q q 0 0 0 rg BT 367.21 598.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 574.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 574.25 Td (e have a limited prior operating history) Tj ET Q q 0 0 0 rg BT 236.05 574.25 Td (. ) Tj ET Q q 0 0 0 rg BT 243.00 574.25 Td (As a result, an investment in our shares of common stock may entail more risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (than the shares of common stock of a real estate investment trust with a significant operating history and we may not be able to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (achieve our investment objectives. In addition, our stockholders should not rely on the past performance of investments by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (other investment vehicles sponsored by Hines to predict our future results. Our investment strategy and key employees may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 526.25 Td (fer from the investment strategies and key employees of our af) Tj ET Q q 0 0 0 rg BT 310.72 526.25 Td (filiates in the past, present and future.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 502.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 502.25 Td (e of) Tj ET Q q 0 0 0 rg BT 90.74 502.25 Td (fer a share redemption program for stockholders seeking liquidity of their shares. However) Tj ET Q q 0 0 0 rg BT 466.86 502.25 Td (, there is no public ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (market for our common shares; therefore, it will be dif) Tj ET Q q 0 0 0 rg BT 274.32 490.25 Td (ficult for our stockholders to sell their shares and, if they are able to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (sell their shares, they will likely sell them at a discount to the price our stockholders paid.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 454.25 Td (There is no public market for our common shares, and we do not expect one to develop. ) Tj ET Q q 0 0 0 rg BT 429.88 454.25 Td (W) Tj ET Q q 0 0 0 rg BT 438.52 454.25 Td (e have a share redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (program, but it is limited in terms of the amount of shares which may be redeemed. It will therefore be dif) Tj ET Q q 0 0 0 rg BT 476.14 442.25 Td (ficult for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (stockholders to sell their shares of common stock promptly or at all. ) Tj ET Q q 0 0 0 rg BT 326.12 430.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 376.02 430.25 Td (, our charter contains restrictions on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (ownership and transfer of our shares, and these restrictions may limit the ability of our stockholders to sell their shares. If they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (are able to sell their shares, they may only be able to sell them at a discount from the price they paid. ) Tj ET Q q 0 0 0 rg BT 456.87 406.25 Td (Any redemptions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (shares will be at a price equal to the transaction price of the class of shares being redeemed on the date of redemption \(which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (generally will be equal to the most recently determined NA) Tj ET Q q 0 0 0 rg BT 285.63 382.25 Td (V) Tj ET Q q 0 0 0 rg BT 292.67 382.25 Td ( per share applicable to the class of shares being redeemed and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (most recently disclosed by us in a public filing with the SEC\), and not based on the price at which they initially purchased the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (shares. Subject to limited exceptions, shares redeemed within one year of the date of issuance will be redeemed at 95% of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (transaction price. ) Tj ET Q q 0 0 0 rg BT 120.31 346.25 Td (As a result, stockholders may receive less than the price they paid for their shares when they sell them to us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (pursuant to our share redemption program. In addition, stockholders may also experience substantial losses if we dispose of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (assets or in connection with a liquidation event. ) Tj ET Q q 0 0 0 rg BT 244.83 322.25 Td (W) Tj ET Q q 0 0 0 rg BT 253.47 322.25 Td (e cannot assure stockholders that their shares will ever appreciate in value to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (equal the price they paid for their shares. ) Tj ET Q q 0 0 0 rg BT 217.59 310.25 Td (Thus, prospective stockholders should consider our common shares as illiquid and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (long-term investment, and they must be prepared to hold their shares for an indefinite length of time.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 274.25 Td (The Of) Tj ET Q q 0 0 0 rg BT 96.48 274.25 Td (fering is a blind pool of) Tj ET Q q 0 0 0 rg BT 192.70 274.25 Td (fering and our stockholders do not have the opportunity to evaluate our future ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (investments prior to purchasing shares of our common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 238.25 Td (Our stockholders will not be able to evaluate the economic merits, transaction terms or other financial or operational data ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (concerning our future investments prior to purchasing shares of our common stock. In addition, our investment policies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (strategies are very broad and permit us to invest in all types of properties and other real estate investments. Our stockholders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (must rely on our ) Tj ET Q q 0 0 0 rg BT 117.27 202.25 Td (Advisor and our board of directors to implement our investment policies, to evaluate our investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (opportunities and to structure the terms of our investments. Because our stockholders cannot evaluate our future investments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (advance of purchasing shares of our common stock, a blind pool of) Tj ET Q q 0 0 0 rg BT 327.01 178.25 Td (fering may entail more risk than other types of of) Tj ET Q q 0 0 0 rg BT 523.72 178.25 Td (ferings. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (This additional risk may hinder our stockholders) Tj ET Q q 0 0 0 rg BT 246.50 166.25 Td ( ability to achieve their personal investment objectives related to portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (diversification, risk-adjusted investment returns and other objectives.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 130.25 Td (The Of) Tj ET Q q 0 0 0 rg BT 96.48 130.25 Td (fering is a best ef) Tj ET Q q 0 0 0 rg BT 171.85 130.25 Td (forts of) Tj ET Q q 0 0 0 rg BT 206.39 130.25 Td (fering and if we are unable to raise substantial additional funds, we will be limited in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (the number and type of investments we may make which could negatively impact an investment in shares of our common ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 82.25 Td (The Of) Tj ET Q q 0 0 0 rg BT 104.92 82.25 Td (fering is being made on a best ef) Tj ET Q q 0 0 0 rg BT 239.41 82.25 Td (forts basis, whereby the broker dealers participating in the Of) Tj ET Q q 0 0 0 rg BT 489.14 82.25 Td (fering are only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (required to use their best ef) Tj ET Q q 0 0 0 rg BT 158.45 70.25 Td (forts to sell shares of our common stock and have no firm commitment or obligation to purchase any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (of the shares of our common stock. ) Tj ET Q q 0 0 0 rg BT 194.75 58.25 Td (As a result, the amount of proceeds we raise in the Of) Tj ET Q q 0 0 0 rg BT 409.50 58.25 Td (fering may be substantially less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (the amount we would need to achieve a diversified industrial portfolio. Our inability to raise substantial additional funds would ) Tj ET Q endstream endobj 19 0 obj <> endobj 20 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (increase our fixed operating expenses as a percentage of gross income, and our financial condition and ability to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (distributions could be adversely af) Tj ET Q q 0 0 0 rg BT 187.06 730.10 Td (fected. ) Tj ET Q q 0 0 0 rg BT 218.44 730.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.88 730.10 Td (March16, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.48 730.10 Td (, we have raised approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.65 730.10 Td ($408.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.54 730.10 Td ( from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (shares in the Of) Tj ET Q q 0 0 0 rg BT 112.36 718.10 Td (fering, including shares sold through the distribution reinvestment plan and as of the date of this ) Tj ET Q q 0 0 0 rg BT 498.67 718.10 Td (Annual Report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (on Form 10-K, we have acquired eight real estate investments. If we are unable to sell a significant number of the shares being ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 694.10 Td (fered in the Of) Tj ET Q q 0 0 0 rg BT 116.05 694.10 Td (fering, we are more likely to focus on making investments in loans and real estate related entities, resulting in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (less diversification in terms of the number of investments owned, the geographic regions in which our property investments are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (located and the types of investments that we make. ) Tj ET Q q 0 0 0 rg BT 257.50 670.10 Td (As a result, the likelihood increases that any single investment) Tj ET Q q 0 0 0 rg BT 509.66 670.10 Td (s poor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (performance would materially af) Tj ET Q q 0 0 0 rg BT 180.65 658.10 Td (fect our overall investment performance.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 634.10 Td (The U.S. Department of Labor) Tj ET Q q 0 0 0 rg BT 193.06 634.10 Td (, or DOL, has adopted certain amendments, including an amendment to the definition of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (fiduciary under the Employee Retirement Income Security ) Tj ET Q q 0 0 0 rg BT 302.17 622.10 Td (Act of 1974, as amended, or ERISA, and the Code, which ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (could impact our ability to raise significant additional capital in the Of) Tj ET Q q 0 0 0 rg BT 340.17 610.10 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 586.10 Td (The DOL) Tj ET Q q 0 0 0 rg BT 109.73 586.10 Td ( has adopted certain amendments, including an amendment to the definition of fiduciary under ERISA) Tj ET Q q 0 0 0 rg BT 527.11 586.10 Td ( and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (Code. ) Tj ET Q q 0 0 0 rg BT 77.93 574.10 Td (The amendments have broadened the definition of fiduciary and have changed the prohibited transaction exemptions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (relating to investments by employee benefit plans subject to ) Tj ET Q q 0 0 0 rg BT 291.76 562.10 Td (T) Tj ET Q q 0 0 0 rg BT 297.52 562.10 Td (itle I of ERISA) Tj ET Q q 0 0 0 rg BT 357.79 562.10 Td ( or retirement plans or accounts subject to Section ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (4975 of the Code \(including individual retirement accounts\). ) Tj ET Q q 0 0 0 rg BT 297.03 550.10 Td (The final regulation and the related exemptions were scheduled to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (become applicable for investment transactions on and after ) Tj ET Q q 0 0 0 rg BT 287.19 538.10 Td (April 10, 2017, but the applicability date was delayed until June 9, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (2017, with full implementation further delayed until July 1, 2019. On February 3, 2017, a Presidential Memorandum was issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (directing the DOL) Tj ET Q q 0 0 0 rg BT 122.44 514.10 Td ( to, among other things, examine the regulation to determine whether it may adversely af) Tj ET Q q 0 0 0 rg BT 477.70 514.10 Td (fect the ability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (Americans to gain access to market information and financial advice. ) Tj ET Q q 0 0 0 rg BT 328.93 502.10 Td (The outcome of this review by the DOL) Tj ET Q q 0 0 0 rg BT 488.80 502.10 Td ( and the ultimate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (impact of the final regulation are not yet known. ) Tj ET Q q 0 0 0 rg BT 245.37 490.10 Td (The final regulation could negatively impact the sale of shares of our common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (stock to such employee benefit plans and retirement plans and accounts when it is implemented in 2019 as well as before it is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (implemented, due to the uncertainty concerning how the regulation will be implemented and its impact.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 442.10 Td (The availability and timing of distributions to our stockholders is uncertain and cannot be assured.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 418.10 Td (There is no assurance that distributions will continue to be authorized and paid. ) Tj ET Q q 0 0 0 rg BT 395.74 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 404.37 418.10 Td (e cannot assure our stockholders that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (we will have suf) Tj ET Q q 0 0 0 rg BT 115.13 406.10 Td (ficient cash to pay distributions to them or that the amount of any such distributions will increase over time. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (addition, the distribution and stockholder servicing fees payable with respect to Class ) Tj ET Q q 0 0 0 rg BT 393.41 394.10 Td (T) Tj ET Q q 0 0 0 rg BT 399.33 394.10 Td ( shares, Class S shares and Class D ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (shares issued in the Of) Tj ET Q q 0 0 0 rg BT 139.86 382.10 Td (fering will reduce the amount of funds available for distribution with respect to all Class ) Tj ET Q q 0 0 0 rg BT 495.42 382.10 Td (T) Tj ET Q q 0 0 0 rg BT 501.35 382.10 Td ( shares, Class ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (S shares and Class D shares \(including Class ) Tj ET Q q 0 0 0 rg BT 230.96 370.10 Td (T) Tj ET Q q 0 0 0 rg BT 236.89 370.10 Td ( shares, Class S shares and Class D shares issued pursuant to the distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (reinvestment plan\). Further) Tj ET Q q 0 0 0 rg BT 160.74 358.10 Td (, because the distribution and stockholder servicing fees payable with respect to Class ) Tj ET Q q 0 0 0 rg BT 506.01 358.10 Td (T) Tj ET Q q 0 0 0 rg BT 511.94 358.10 Td ( shares and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (Class S shares are higher than those payable with respect to Class D shares, distributions with respect to Class ) Tj ET Q q 0 0 0 rg BT 492.01 346.10 Td (T) Tj ET Q q 0 0 0 rg BT 497.94 346.10 Td ( shares and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (Class S shares will be lower than distributions with respect to Class D shares; also, because there are no distribution and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (stockholder servicing fees payable with respect to Class I shares, distributions with respect to Class ) Tj ET Q q 0 0 0 rg BT 449.23 322.10 Td (T) Tj ET Q q 0 0 0 rg BT 455.16 322.10 Td ( shares, Class S shares and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (Class D shares will be lower than distributions with respect to Class I shares. Should we fail for any reason to distribute at least ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (90% of our REIT) Tj ET Q q 0 0 0 rg BT 119.03 298.10 Td ( taxable income, we would not qualify for the favorable tax treatment accorded to REIT) Tj ET Q q 0 0 0 rg BT 469.58 298.10 Td (s.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 274.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 274.10 Td (e have, may continue, and during the of) Tj ET Q q 0 0 0 rg BT 239.64 274.10 Td (fering phase, are likely to pay distributions from sources other than our cash ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (flow from operations, including advances, deferrals or waivers of fees from our ) Tj ET Q q 0 0 0 rg BT 378.02 262.10 Td (Advisor or af) Tj ET Q q 0 0 0 rg BT 431.73 262.10 Td (filiates, borrowings and/or ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (proceeds of the Of) Tj ET Q q 0 0 0 rg BT 124.58 250.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 156.90 250.10 Td (W) Tj ET Q q 0 0 0 rg BT 165.05 250.10 Td (e have not placed a cap on the amount of our distributions that may be paid from any of these ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (sources. The use of sources other than our cash flow from operations to fund distributions could adversely impact our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (ability to pay distributions in future periods, decrease the amount of cash we have available for operations and new ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (investments and/or potentially impact the value or result in dilution of our stockholders) Tj ET Q q 0 0 0 rg BT 411.01 214.10 Td ( investment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 190.10 Td (During the of) Tj ET Q q 0 0 0 rg BT 125.70 190.10 Td (fering phase, and from time to time thereafter) Tj ET Q q 0 0 0 rg BT 307.44 190.10 Td (, our cash flow from operations may be insuf) Tj ET Q q 0 0 0 rg BT 486.94 190.10 Td (ficient to fund ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (distributions to stockholders. Our or) Tj ET Q q 0 0 0 rg BT 196.53 178.10 Td (ganizational documents permit us to make distributions from any source and we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (choose to pay distributions when we do not have suf) Tj ET Q q 0 0 0 rg BT 259.01 166.10 Td (ficient cash flow from operations to fund such distributions. ) Tj ET Q q 0 0 0 rg BT 503.50 166.10 Td (W) Tj ET Q q 0 0 0 rg BT 512.14 166.10 Td (e may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (choose to use advances, deferrals or waivers of fees, if available, from our ) Tj ET Q q 0 0 0 rg BT 348.27 154.10 Td (Advisor or af) Tj ET Q q 0 0 0 rg BT 401.41 154.10 Td (filiates, borrowings and/or proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (the Of) Tj ET Q q 0 0 0 rg BT 74.59 142.10 Td (fering or other sources to fund distributions to our stockholders. For example, we funded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.79 142.10 Td (56%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.12 142.10 Td ( of total distributions for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 130.10 Td ( with cash flows from financing activities which includes of) Tj ET Q q 0 0 0 rg BT 308.98 130.10 Td (fering proceeds. In addition, our ) Tj ET Q q 0 0 0 rg BT 442.28 130.10 Td (Advisor agreed to waive the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (asset management fee otherwise payable to it pursuant to our ) Tj ET Q q 0 0 0 rg BT 295.54 118.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 334.71 118.10 Td (Agreement for the fourth quarter of 2014, each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (quarters in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.49 106.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.49 106.10 Td ( and 2016, to the extent that our MFFO for each respective quarter) Tj ET Q q 0 0 0 rg BT 379.84 106.10 Td (, as disclosed in our ) Tj ET Q q 0 0 0 rg BT 460.94 106.10 Td (Annual Report on Form ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (10-K or Quarterly Report on Form 10-Q, as applicable, amounted to less than 100% of the aggregate distributions declared for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (such quarter) Tj ET Q q 0 0 0 rg BT 98.09 82.10 Td (. Pursuant to this waiver agreement, our ) Tj ET Q q 0 0 0 rg BT 261.95 82.10 Td (Advisor waived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.04 82.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.94 82.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.94 82.10 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.83 82.10 Td ( and $16,000 in asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (management fees payable to it during the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.92 70.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 70.10 Td (, 2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 462.60 70.10 Td (. Our ) Tj ET Q q 0 0 0 rg BT 487.60 70.10 Td (Advisor also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (agreed to waive the asset management fees otherwise payable to it for the quarter ended March 31, 2017 to the extent that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (MFFO for such quarter) Tj ET Q q 0 0 0 rg BT 142.14 46.10 Td (, as reduced to reflect the distribution and stockholder servicing fees payable for such quarter) Tj ET Q q 0 0 0 rg BT 514.10 46.10 Td (, as ) Tj ET Q endstream endobj 21 0 obj <> endobj 22 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (disclosed in our Quarterly Report on Form 10-Q, amounted to less than 100% of the aggregate distributions declared to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (stockholders for that quarter) Tj ET Q q 0 0 0 rg BT 161.97 730.10 Td (. Our ) Tj ET Q q 0 0 0 rg BT 184.47 730.10 Td (Advisor did not waive any asset management fees payable to it during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (December 31, 2017. ) Tj ET Q q 0 0 0 rg BT 135.40 718.10 Td (W) Tj ET Q q 0 0 0 rg BT 144.04 718.10 Td (e have not placed a cap on the amount of our distributions that may be paid from sources other than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (cash flows from operations, including proceeds from our debt financings, proceeds from our public of) Tj ET Q q 0 0 0 rg BT 456.99 706.10 Td (ferings, cash advances by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (our ) Tj ET Q q 0 0 0 rg BT 64.78 694.10 Td (Advisor and cash resulting from a waiver or deferral of fees. However) Tj ET Q q 0 0 0 rg BT 347.88 694.10 Td (, our ) Tj ET Q q 0 0 0 rg BT 368.16 694.10 Td (Advisor and af) Tj ET Q q 0 0 0 rg BT 427.41 694.10 Td (filiates are under no obligation to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (advance funds to us or to defer or to continue to waive fees in order to support our distributions. ) Tj ET Q q 0 0 0 rg BT 438.40 682.10 Td (When we pay distributions in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (excess of earnings and we use cash flows from financing activities, including of) Tj ET Q q 0 0 0 rg BT 368.95 670.10 Td (fering proceeds and borrowings, to fund ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (distributions, then we have less funds available for operations and for acquiring properties and other investments, which could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (adversely impact our ability to pay distributions in future periods, may reduce our stockholders) Tj ET Q q 0 0 0 rg BT 432.55 646.10 Td ( overall return and may result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (the dilution of our stockholders) Tj ET Q q 0 0 0 rg BT 177.63 634.10 Td ( investment. In addition, our ) Tj ET Q q 0 0 0 rg BT 295.39 634.10 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 360.48 634.10 Td (filiates could choose to receive shares of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (common stock or interests in the Operating Partnership in lieu of cash or deferred fees or the repayment of advances to which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (they are entitled, and the issuance of such securities may dilute our stockholders) Tj ET Q q 0 0 0 rg BT 372.83 610.10 Td ( interest in us. Furthermore, to the extent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (distributions exceed cash flow from operations, a stockholder) Tj ET Q q 0 0 0 rg BT 295.92 598.10 Td () Tj ET Q q 0 0 0 rg BT 298.69 598.10 Td (s basis in our stock will be reduced and, to the extent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (distributions exceed a stockholder) Tj ET Q q 0 0 0 rg BT 186.22 586.10 Td () Tj ET Q q 0 0 0 rg BT 189.00 586.10 Td (s basis, the stockholder may recognize capital gain.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 562.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 562.10 Td (e have incurred net losses on a GAAP) Tj ET Q q 0 0 0 rg BT 231.12 562.10 Td ( basis in the past and may continue to incur such losses in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 538.10 Td (For the years ended December 31, 2017, 2016 and 2015, we have incurred net losses, on a GAAP) Tj ET Q q 0 0 0 rg BT 463.86 538.10 Td ( basis, of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td ($17.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 526.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.39 526.10 Td ($1) Tj ET Q q 0 0 0 rg BT 118.02 526.10 Td (1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.91 526.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.35 526.10 Td ($5.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.24 526.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 282.90 526.10 Td (. ) Tj ET Q q 0 0 0 rg BT 287.35 526.10 Td (As a result of these losses, we had accumulated distributions in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (excess of earnings balances, on a GAAP) Tj ET Q q 0 0 0 rg BT 211.02 514.10 Td ( basis, of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.61 514.10 Td ($68.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.50 514.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.50 514.10 Td ($31.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.40 514.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.83 514.10 Td ($9.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.73 514.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 543.39 514.10 Td (, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (of December 31, 2017, 2016 and 2015. Our net losses and the related accumulated distributions in excess of earnings balances ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (for these periods are lar) Tj ET Q q 0 0 0 rg BT 143.72 490.10 Td (gely attributable to depreciation and amortization of our real estate investments as well as acquisition-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (related fees and expenses that are incurred while we are in the acquisition phase of our life cycle. ) Tj ET Q q 0 0 0 rg BT 439.98 478.10 Td (Therefore, we may continue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (to incur net losses and accumulated distributions in excess of earnings balances in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 442.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 126.40 442.10 Td (, we have generated other comprehensive income, on a GAAP) Tj ET Q q 0 0 0 rg BT 375.11 442.10 Td ( basis, of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.70 442.10 Td ($7.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.59 442.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (year ended December 31, 2017, and have incurred other comprehensive losses, on a GAAP) Tj ET Q q 0 0 0 rg BT 414.56 430.10 Td ( basis, of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.15 430.10 Td ($1.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 418.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 418.10 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.72 418.10 Td (, for the years ended December 31, 2016 and 2015 respectively) Tj ET Q q 0 0 0 rg BT 398.76 418.10 Td (. ) Tj ET Q q 0 0 0 rg BT 403.58 418.10 Td (These amounts relate to translating the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (financial statements of our international subsidiaries into U.S. dollars for financial reporting purposes and represent changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (the exchange rates between the functional currencies of these subsidiaries and the U.S. dollar) Tj ET Q q 0 0 0 rg BT 421.31 394.10 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 370.10 Td (Payments to the holders of OP) Tj ET Q q 0 0 0 rg BT 192.40 370.10 Td ( Units will reduce cash available for distribution to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 346.10 Td (An af) Tj ET Q q 0 0 0 rg BT 95.81 346.10 Td (filiate of Hines has received OP) Tj ET Q q 0 0 0 rg BT 222.89 346.10 Td ( Units in return for its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.33 346.10 Td ($190,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.83 346.10 Td ( contribution to the Operation Partnership. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 114.59 334.10 Td (filiates may also choose to receive OP) Tj ET Q q 0 0 0 rg BT 266.95 334.10 Td ( Units in lieu of certain fees. ) Tj ET Q q 0 0 0 rg BT 385.34 334.10 Td (The holders of all OP) Tj ET Q q 0 0 0 rg BT 471.06 334.10 Td ( Units will be entitled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (to receive cash from operations pro rata with the distributions being paid to us and such distributions to the holder of the OP) Tj ET Q q 0 0 0 rg BT 545.70 322.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (Units will reduce the cash available for distribution to our stockholders.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 286.10 Td (Payments to our ) Tj ET Q q 0 0 0 rg BT 142.86 286.10 Td (Advisor in respect of any common stock or OP) Tj ET Q q 0 0 0 rg BT 333.59 286.10 Td ( Units it elects to receive in lieu of fees or distributions ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (will dilute future cash available for distribution to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 250.10 Td ( Our ) Tj ET Q q 0 0 0 rg BT 93.50 250.10 Td (Advisor may choose to receive our common shares or OP) Tj ET Q q 0 0 0 rg BT 323.91 250.10 Td ( Units in lieu of certain fees or distributions. ) Tj ET Q q 0 0 0 rg BT 503.13 250.10 Td (The holders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (all OP) Tj ET Q q 0 0 0 rg BT 74.41 238.10 Td ( Units will be entitled to receive cash from operations pro rata with the distributions being paid to us and such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (distributions to the holders of OP) Tj ET Q q 0 0 0 rg BT 182.18 226.10 Td ( Units will reduce the cash available for distribution to us and to our stockholders. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (Furthermore, under certain circumstances the OP) Tj ET Q q 0 0 0 rg BT 245.73 214.10 Td ( Units held by our ) Tj ET Q q 0 0 0 rg BT 319.89 214.10 Td (Advisor are required to be repurchased, in cash at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (holder) Tj ET Q q 0 0 0 rg BT 75.42 202.10 Td () Tj ET Q q 0 0 0 rg BT 78.20 202.10 Td (s election and there may not be suf) Tj ET Q q 0 0 0 rg BT 217.14 202.10 Td (ficient cash to make such a repurchase payment; therefore, we may need to use cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (from operations, borrowings, of) Tj ET Q q 0 0 0 rg BT 176.79 190.10 Td (fering proceeds, or other sources to make the payment, which will reduce cash available for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (distribution to our stockholders or for investment in our operations. Redemptions of any of our shares or OP) Tj ET Q q 0 0 0 rg BT 484.34 178.10 Td ( Units that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (received by our ) Tj ET Q q 0 0 0 rg BT 113.64 166.10 Td (Advisor in lieu of a cash asset management fee are not subject to the monthly and quarterly volume limitations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (or the 5% holding discount under our share redemption program. Redemptions of any of our shares or OP) Tj ET Q q 0 0 0 rg BT 472.37 154.10 Td ( Units that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (received by our ) Tj ET Q q 0 0 0 rg BT 113.64 142.10 Td (Advisor in lieu of a cash distribution with respect to its performance participation allocation are not subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (the 5% holding discount under our share redemption program, but, in the case of shares, such redemptions are subject to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (monthly and quarterly volume limitations and do not receive priority over other shares being put for redemption during such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (period.) Tj ET Q endstream endobj 23 0 obj <> endobj 24 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (9) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (Our stockholders) Tj ET Q q 0 0 0 rg BT 140.93 742.25 Td ( ability to have their shares redeemed is limited under our share redemption program, and if they are ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (able to have their shares redeemed, it may be at a price that is less than the price they paid for the shares and the then-) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 718.25 Td (current market value of the shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 694.25 Td (Our share redemption program contains significant restrictions and limitations. For example, only stockholders who ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (purchase their shares directly from us or who received their shares through a non-cash transaction, not in the secondary market, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (are eligible to participate, and if holders of shares do not hold their shares for a minimum of one year) Tj ET Q q 0 0 0 rg BT 453.42 670.25 Td (, then they will only be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (eligible for redemption at 95% of the transaction price that would otherwise apply) Tj ET Q q 0 0 0 rg BT 377.08 658.25 Td (. ) Tj ET Q q 0 0 0 rg BT 381.90 658.25 Td (W) Tj ET Q q 0 0 0 rg BT 390.54 658.25 Td (e may choose to redeem fewer shares than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (have been requested in any particular month to be redeemed under our share redemption program, or none at all, in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (discretion at any time. ) Tj ET Q q 0 0 0 rg BT 140.68 634.25 Td (W) Tj ET Q q 0 0 0 rg BT 149.32 634.25 Td (e may redeem fewer shares than have been requested to be redeemed due to lack of readily available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (funds because of adverse market conditions beyond our control, the need to maintain liquidity for our operations or because we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (have determined that investing in real property or other illiquid investments is a better use of our capital than the redemption of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (our shares. In addition, the total amount of shares that may be redeemed under our share redemption program is limited, in any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (calendar month, to shares whose aggregate value \(based on the transaction price per share on the date on the redemption\) is 2% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (of our aggregate NA) Tj ET Q q 0 0 0 rg BT 130.68 574.25 Td (V) Tj ET Q q 0 0 0 rg BT 137.72 574.25 Td ( as of the last calendar day of the previous month and during any calendar quarter whose aggregate value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (\(based on the transaction price per share in ef) Tj ET Q q 0 0 0 rg BT 230.91 562.25 Td (fect when the redemption is ef) Tj ET Q q 0 0 0 rg BT 352.07 562.25 Td (fected\) is up to 5% of our aggregate NA) Tj ET Q q 0 0 0 rg BT 511.28 562.25 Td (V) Tj ET Q q 0 0 0 rg BT 518.32 562.25 Td ( as of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (last calendar day of the prior calendar quarter) Tj ET Q q 0 0 0 rg BT 230.80 550.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 526.25 Td (The vast majority of our assets will consist of properties which cannot generally be readily liquidated on short notice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (without impacting our ability to realize full value upon their disposition. ) Tj ET Q q 0 0 0 rg BT 340.93 514.25 Td (Therefore, we may not always have a suf) Tj ET Q q 0 0 0 rg BT 505.13 514.25 Td (ficient ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (amount of cash to immediately satisfy redemption requests. Further) Tj ET Q q 0 0 0 rg BT 319.31 502.25 Td (, we may invest in real estate-related securities and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (securities with the primary goal of maintaining liquidity in support of our share redemption program. ) Tj ET Q q 0 0 0 rg BT 455.53 490.25 Td (Any such investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (may result in lower returns than an investment in real estate assets, which could adversely impact our ability to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (distributions and your overall return. In addition, our board of directors may modify) Tj ET Q q 0 0 0 rg BT 384.89 466.25 Td (, suspend or terminate our share redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (program at any time in its sole discretion. ) Tj ET Q q 0 0 0 rg BT 220.02 454.25 Td (As a result of these limitations, our stockholders) Tj ET Q q 0 0 0 rg BT 415.91 454.25 Td ( ability to have their shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (redeemed by us may be limited, our shares should be considered as having only limited liquidity and at times may be illiquid. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (In addition, the redemption price our stockholders may receive upon any such redemption may not be indicative of the price our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (stockholders would receive if our shares were actively traded or if we were liquidated, and our stockholders should not assume ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (that they will be able to sell all or any portion of their shares back to us pursuant to our share redemption program or to third ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (parties at a price that reflects the then current market value of the shares or at all.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 370.25 Td (Purchases and redemptions of our common shares will not be made based on the current NA) Tj ET Q q 0 0 0 rg BT 449.30 370.25 Td (V) Tj ET Q q 0 0 0 rg BT 455.79 370.25 Td ( per share of our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 334.25 Td (The purchase and redemption price for shares of our common stock generally will be based on our most recently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (disclosed monthly NA) Tj ET Q q 0 0 0 rg BT 138.21 322.25 Td (V) Tj ET Q q 0 0 0 rg BT 145.25 322.25 Td ( \(subject to material changes\) and will not be based on any public trading market. ) Tj ET Q q 0 0 0 rg BT 473.30 322.25 Td (W) Tj ET Q q 0 0 0 rg BT 481.94 322.25 Td (e generally expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (our transaction price to be equal to our NA) Tj ET Q q 0 0 0 rg BT 219.82 310.25 Td (V) Tj ET Q q 0 0 0 rg BT 226.86 310.25 Td ( per share as of the last calendar day of the prior month, which may be significantly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 298.25 Td (ferent than the transaction price as of the date on which stockholders make their subscription request or redemption request. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (Therefore, the price at which stockholders purchase shares may be higher than the actual then-current NA) Tj ET Q q 0 0 0 rg BT 471.37 286.25 Td (V) Tj ET Q q 0 0 0 rg BT 478.41 286.25 Td ( per share at the time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (of sale and the price at which stockholders redeem shares may be lower than the actual then-current NA) Tj ET Q q 0 0 0 rg BT 463.88 274.25 Td (V) Tj ET Q q 0 0 0 rg BT 470.92 274.25 Td ( per share at the time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (of redemption. In addition, we may of) Tj ET Q q 0 0 0 rg BT 201.50 262.25 Td (fer and repurchase shares at a price that we believe reflects the NA) Tj ET Q q 0 0 0 rg BT 467.30 262.25 Td (V) Tj ET Q q 0 0 0 rg BT 474.34 262.25 Td ( per share of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (stock more appropriately than the prior month) Tj ET Q q 0 0 0 rg BT 236.67 250.25 Td (s NA) Tj ET Q q 0 0 0 rg BT 256.22 250.25 Td (V) Tj ET Q q 0 0 0 rg BT 263.26 250.25 Td ( per share, including by updating a previously disclosed transaction price, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (in cases where we believe there has been a material change \(positive or negative\) to our NA) Tj ET Q q 0 0 0 rg BT 415.83 238.25 Td (V) Tj ET Q q 0 0 0 rg BT 422.87 238.25 Td ( per share since the end of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (prior month.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 202.25 Td (Economic events that may cause our stockholders to request that we redeem their shares may materially adversely af) Tj ET Q q 0 0 0 rg BT 546.46 202.25 Td (fect ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (our cash flow and our results of operations and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 166.25 Td (Economic events af) Tj ET Q q 0 0 0 rg BT 152.18 166.25 Td (fecting the U.S. economy) Tj ET Q q 0 0 0 rg BT 253.45 166.25 Td (, such as the general negative performance of the real estate sector) Tj ET Q q 0 0 0 rg BT 517.91 166.25 Td (, could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (cause our stockholders to seek to sell their shares to us pursuant to our share redemption program at a time when such events ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (are adversely af) Tj ET Q q 0 0 0 rg BT 112.61 142.25 Td (fecting the performance of our assets. Even if we decide to satisfy all resulting redemption requests, our cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (flow could be materially adversely af) Tj ET Q q 0 0 0 rg BT 198.43 130.25 Td (fected. In addition, if we determine to sell assets to satisfy redemption requests, we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (not be able to realize the return on such assets that we may have been able to achieve had we sold at a more favorable time, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (our results of operations and financial condition, including, without limitation, breadth of our portfolio by property type and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (location, could be materially adversely af) Tj ET Q q 0 0 0 rg BT 214.81 94.25 Td (fected.) Tj ET Q endstream endobj 25 0 obj <> endobj 26 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (10) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (V) Tj ET Q q 0 0 0 rg BT 73.06 742.25 Td (aluations and appraisals of our properties, real estate-related assets and real estate-related liabilities are estimates of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (value and may not necessarily correspond to realizable value.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 706.25 Td (The valuation methodologies used to value our properties and certain real estate-related assets involve subjective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (judgments regarding such factors as comparable sales, rental revenue and operating expense data, known contingencies, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (capitalization or discount rate, and projections of future rent and expenses based on appropriate analysis. ) Tj ET Q q 0 0 0 rg BT 470.19 682.25 Td (As a result, valuations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (and appraisals of our properties, real estate-related assets and real estate-related liabilities are only estimates of current market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (value. Ultimate realization of the value of an asset or liability depends to a great extent on economic and other conditions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (beyond our control and the control of the independent valuation firm and other parties involved in the valuation of our assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (and liabilities. Further) Tj ET Q q 0 0 0 rg BT 137.69 634.25 Td (, these valuations may not necessarily represent the price at which an asset or liability would sell, because ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (market prices of assets and liabilities can only be determined by negotiation between a willing buyer and seller) Tj ET Q q 0 0 0 rg BT 492.42 622.25 Td (. ) Tj ET Q q 0 0 0 rg BT 497.24 622.25 Td (V) Tj ET Q q 0 0 0 rg BT 503.35 622.25 Td (aluations used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (for determining our NA) Tj ET Q q 0 0 0 rg BT 143.46 610.25 Td (V) Tj ET Q q 0 0 0 rg BT 150.51 610.25 Td ( also are generally made without consideration of the expenses that would be incurred in connection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (with disposing of assets and liabilities. ) Tj ET Q q 0 0 0 rg BT 206.25 598.25 Td (Therefore, the valuations of our properties, our investments in real estate-related assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (and our liabilities may not correspond to the timely realizable value upon a sale of those assets and liabilities. In addition, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (NA) Tj ET Q q 0 0 0 rg BT 62.65 574.25 Td (V) Tj ET Q q 0 0 0 rg BT 69.70 574.25 Td ( does not currently represent enterprise value and may not accurately reflect the actual prices at which our assets could be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (liquidated on any given day) Tj ET Q q 0 0 0 rg BT 159.93 562.25 Td (, the value a third party would pay for all or substantially all of our shares, or the price that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (shares would trade at on a national stock exchange. ) Tj ET Q q 0 0 0 rg BT 257.02 550.25 Td (There will be no retroactive adjustment in the valuation of such assets or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (liabilities, the price of our shares of common stock, the price we paid to redeem shares of our common stock or NA) Tj ET Q q 0 0 0 rg BT 510.02 538.25 Td (V) Tj ET Q q 0 0 0 rg BT 516.33 538.25 Td (-based fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (we paid to our ) Tj ET Q q 0 0 0 rg BT 108.93 526.25 Td (Advisor and our Dealer Manager to the extent such valuations prove to not accurately reflect the true estimate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (value and are not a precise measure of realizable value. Because the price our stockholders will pay for shares of our common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (stock in the Of) Tj ET Q q 0 0 0 rg BT 108.47 502.25 Td (fering, and the price at which your shares may be redeemed by us pursuant to our share redemption program, are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (generally based on our NA) Tj ET Q q 0 0 0 rg BT 155.96 490.25 Td (V) Tj ET Q q 0 0 0 rg BT 163.00 490.25 Td ( per share, stockholders may pay more than realizable value or receive less than realizable value for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (their investment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 454.25 Td (In order to disclose a monthly NA) Tj ET Q q 0 0 0 rg BT 206.22 454.25 Td (V) Tj ET Q q 0 0 0 rg BT 211.60 454.25 Td (, we are reliant on the parties that we engage for that purpose, in particular the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (independent valuation firm and the appraisers that we hire to value and appraise our real estate portfolio.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 418.25 Td (In order to disclose a monthly NA) Tj ET Q q 0 0 0 rg BT 208.85 418.25 Td (V) Tj ET Q q 0 0 0 rg BT 214.78 418.25 Td (, our board of directors, including a majority of our independent directors, has adopted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (valuation procedures to be used in connection with the calculation of our NA) Tj ET Q q 0 0 0 rg BT 356.45 406.25 Td (V) Tj ET Q q 0 0 0 rg BT 363.49 406.25 Td ( and will cause us to engage independent third ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (parties such as the independent valuation firm, to value our real estate portfolio on a monthly basis and to provide periodic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (appraisals with respect to our properties. ) Tj ET Q q 0 0 0 rg BT 213.62 382.25 Td (Although our board of directors, with the assistance of our ) Tj ET Q q 0 0 0 rg BT 449.40 382.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 481.22 382.25 Td (, oversees all of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (these parties and the reasonableness of their work product, we will not independently verify our NA) Tj ET Q q 0 0 0 rg BT 448.09 370.25 Td (V) Tj ET Q q 0 0 0 rg BT 455.13 370.25 Td ( or the components ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (thereof, such as the appraised values of our properties. Our management) Tj ET Q q 0 0 0 rg BT 341.62 358.25 Td (s assessment of the market values of our properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (may also dif) Tj ET Q q 0 0 0 rg BT 98.75 346.25 Td (fer from the appraised values of our properties as determined by the independent valuation firm. If the parties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (engaged by us to assist in the determination of our monthly NA) Tj ET Q q 0 0 0 rg BT 302.34 334.25 Td (V) Tj ET Q q 0 0 0 rg BT 309.38 334.25 Td ( are unable or unwilling to perform their obligations to us, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (NA) Tj ET Q q 0 0 0 rg BT 62.65 322.25 Td (V) Tj ET Q q 0 0 0 rg BT 69.70 322.25 Td ( could be inaccurate or unavailable, and we could decide to suspend the Follow- On Of) Tj ET Q q 0 0 0 rg BT 417.74 322.25 Td (fering and our share redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (program.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 286.25 Td (No rule or regulation requires that we calculate our NA) Tj ET Q q 0 0 0 rg BT 296.50 286.25 Td (V) Tj ET Q q 0 0 0 rg BT 302.99 286.25 Td ( in a certain way) Tj ET Q q 0 0 0 rg BT 370.96 286.25 Td (, and our board of directors, including a ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (majority of our independent directors, may adopt changes to the valuation procedures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 250.25 Td (There are no existing rules or regulatory bodies that specifically govern the manner in which we calculate our NA) Tj ET Q q 0 0 0 rg BT 527.60 250.25 Td (V) Tj ET Q q 0 0 0 rg BT 533.53 250.25 Td (. ) Tj ET Q q 0 0 0 rg BT 537.98 250.25 Td (As a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (result, it is important that stockholders pay particular attention to the specific methodologies and assumptions we use to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (calculate our NA) Tj ET Q q 0 0 0 rg BT 116.51 226.25 Td (V) Tj ET Q q 0 0 0 rg BT 122.44 226.25 Td (. Other public REIT) Tj ET Q q 0 0 0 rg BT 201.73 226.25 Td (s may use dif) Tj ET Q q 0 0 0 rg BT 254.59 226.25 Td (ferent methodologies or assumptions to determine their NA) Tj ET Q q 0 0 0 rg BT 491.31 226.25 Td (V) Tj ET Q q 0 0 0 rg BT 497.24 226.25 Td (. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (each year our board of directors, including a majority of our independent directors, will review the appropriateness of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (valuation procedures and may) Tj ET Q q 0 0 0 rg BT 169.08 202.25 Td (, at any time, adopt changes to the valuation procedures. Our board of directors may change ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (aspects of our valuation procedures, which changes may have an adverse ef) Tj ET Q q 0 0 0 rg BT 351.42 190.25 Td (fect on our NA) Tj ET Q q 0 0 0 rg BT 410.39 190.25 Td (V) Tj ET Q q 0 0 0 rg BT 417.43 190.25 Td ( and the price at which stockholders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (may sell shares to us under our share redemption program.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 154.25 Td (Our NA) Tj ET Q q 0 0 0 rg BT 99.82 154.25 Td (V) Tj ET Q q 0 0 0 rg BT 106.31 154.25 Td ( per share may suddenly change if the valuations of our properties materially change from prior valuations or ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (the actual operating results materially dif) Tj ET Q q 0 0 0 rg BT 219.60 142.25 Td (fer from what we originally budgeted.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 118.25 Td (It is possible that the annual appraisals of our properties may not be spread evenly throughout the year and may dif) Tj ET Q q 0 0 0 rg BT 532.64 118.25 Td (fer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (from the most recent monthly valuation. ) Tj ET Q q 0 0 0 rg BT 212.52 106.25 Td (As such, when these appraisals are reflected in our valuation of our real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (portfolio, there may be a sudden change in our NA) Tj ET Q q 0 0 0 rg BT 251.48 94.25 Td (V) Tj ET Q q 0 0 0 rg BT 258.52 94.25 Td ( per share for each class of our common stock. Property valuation changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (can occur for a variety of reasons, such as local real estate market conditions, the financial condition of our tenants, or lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (expirations. For example, we expect to regularly face lease expirations across our portfolio, and as we move further away from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (lease commencement toward the end of a lease term, the valuation of the underlying property will be expected to drop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (depending on the likelihood of a renewal or a new lease on similar terms. Such a valuation drop can be particularly significant ) Tj ET Q endstream endobj 27 0 obj <> endobj 28 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 31.60 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (when closer to a lease expiration, especially for single tenant buildings or where an individual tenant occupies a lar) Tj ET Q q 0 0 0 rg BT 509.44 742.10 Td (ge portion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (a building. ) Tj ET Q q 0 0 0 rg BT 94.59 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 103.23 730.10 Td (e will be at the greatest risk of these valuation changes during periods in which we have a lar) Tj ET Q q 0 0 0 rg BT 474.59 730.10 Td (ge number of lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (expirations as well as when the lease of a significant tenant is closer to expiration. In addition, actual operating results may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 706.10 Td (fer from what we originally budgeted, which may cause a sudden increase or decrease in the NA) Tj ET Q q 0 0 0 rg BT 445.38 706.10 Td (V) Tj ET Q q 0 0 0 rg BT 452.42 706.10 Td ( per share amounts. ) Tj ET Q q 0 0 0 rg BT 532.49 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 541.13 706.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (accrue estimated income and expenses on a periodic basis based on annual budgets as adjusted from time to time to reflect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (changes in the business throughout the year) Tj ET Q q 0 0 0 rg BT 223.35 682.10 Td (. On a periodic basis, we adjust the income and expense accruals we estimated to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (reflect the income and expenses actually earned and incurred. ) Tj ET Q q 0 0 0 rg BT 298.09 670.10 Td (W) Tj ET Q q 0 0 0 rg BT 306.73 670.10 Td (e will not retroactively adjust the NA) Tj ET Q q 0 0 0 rg BT 454.29 670.10 Td (V) Tj ET Q q 0 0 0 rg BT 461.33 670.10 Td ( per share of each class ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (for any such adjustments. ) Tj ET Q q 0 0 0 rg BT 154.02 658.10 Td (Therefore, because actual results from operations may be better or worse than what we previously ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (budgeted, the adjustment to reflect actual operating results may cause the NA) Tj ET Q q 0 0 0 rg BT 358.10 646.10 Td (V) Tj ET Q q 0 0 0 rg BT 365.14 646.10 Td ( per share for each class of our common stock to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (increase or decrease.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 610.10 Td (New acquisitions may be valued for purposes of our NA) Tj ET Q q 0 0 0 rg BT 296.49 610.10 Td (V) Tj ET Q q 0 0 0 rg BT 302.98 610.10 Td ( at less than what we pay for them, which would dilute our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (NA) Tj ET Q q 0 0 0 rg BT 62.65 598.10 Td (V) Tj ET Q q 0 0 0 rg BT 68.03 598.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 574.10 Td (Pursuant to our valuation procedures, the acquisition price of newly acquired properties will serve as our appraised value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (for the year of acquisition, and thereafter will be part of the rotating appraisal cycle such that they are appraised at least every ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (calendar year) Tj ET Q q 0 0 0 rg BT 102.52 550.10 Td (. However) Tj ET Q q 0 0 0 rg BT 143.77 550.10 Td (, the independent valuation firm will have the ability to adjust property valuations for purposes of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (NA) Tj ET Q q 0 0 0 rg BT 62.65 538.10 Td (V) Tj ET Q q 0 0 0 rg BT 69.70 538.10 Td ( from the most recent appraised value. Similarly) Tj ET Q q 0 0 0 rg BT 261.77 538.10 Td (, if the independent valuation firm believes that the purchase price for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (recent acquisition does not reflect the current value of the property) Tj ET Q q 0 0 0 rg BT 315.41 526.10 Td (, the valuation may be adjusted downwards immediately after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (acquisition for purposes of our NA) Tj ET Q q 0 0 0 rg BT 187.91 514.10 Td (V) Tj ET Q q 0 0 0 rg BT 193.84 514.10 Td (. Even if the independent valuation firm does not adjust the valuation downwards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (immediately following the acquisition, when we obtain an appraisal on the property) Tj ET Q q 0 0 0 rg BT 383.76 502.10 Td (, it may not appraise at a value equal to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (purchase price. ) Tj ET Q q 0 0 0 rg BT 111.97 490.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 161.31 490.10 Td (, the value of a new acquisition as established under our NA) Tj ET Q q 0 0 0 rg BT 400.51 490.10 Td (V) Tj ET Q q 0 0 0 rg BT 407.55 490.10 Td ( procedures could be less than what ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (we paid for it, which could negatively af) Tj ET Q q 0 0 0 rg BT 211.49 478.10 Td (fect our NA) Tj ET Q q 0 0 0 rg BT 257.96 478.10 Td (V) Tj ET Q q 0 0 0 rg BT 263.89 478.10 Td (. Lar) Tj ET Q q 0 0 0 rg BT 285.09 478.10 Td (ge portfolio acquisitions, in particular) Tj ET Q q 0 0 0 rg BT 435.48 478.10 Td (, may require a portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (premium to be paid by us in order to be a competitive bidder) Tj ET Q q 0 0 0 rg BT 296.25 466.10 Td (, and this portfolio premium may not be taken into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (consideration in calculating our NA) Tj ET Q q 0 0 0 rg BT 191.50 454.10 Td (V) Tj ET Q q 0 0 0 rg BT 197.43 454.10 Td (. In addition, acquisition expenses we incur in connection with new acquisitions will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (negatively impact our NA) Tj ET Q q 0 0 0 rg BT 152.35 442.10 Td (V) Tj ET Q q 0 0 0 rg BT 158.28 442.10 Td (. ) Tj ET Q q 0 0 0 rg BT 163.10 442.10 Td (W) Tj ET Q q 0 0 0 rg BT 171.74 442.10 Td (e may make acquisitions of any size without stockholder approval, and such acquisitions may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (dilutive to our NA) Tj ET Q q 0 0 0 rg BT 121.81 430.10 Td (V) Tj ET Q q 0 0 0 rg BT 127.75 430.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 406.10 Td (The NA) Tj ET Q q 0 0 0 rg BT 99.26 406.10 Td (V) Tj ET Q q 0 0 0 rg BT 105.75 406.10 Td ( per share that we publish may not necessarily reflect changes in our NA) Tj ET Q q 0 0 0 rg BT 404.19 406.10 Td (V) Tj ET Q q 0 0 0 rg BT 410.68 406.10 Td ( that are not immediately ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (quantifiable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 370.10 Td (From time to time, we may experience events with respect to our investments that may have a material impact on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (NA) Tj ET Q q 0 0 0 rg BT 62.65 358.10 Td (V) Tj ET Q q 0 0 0 rg BT 68.59 358.10 Td (. For example, and not by way of limitation, changes in governmental rules, regulations and fiscal policies, environmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (legislation, acts of God, terrorism, social unrest, civil disturbances and major disturbances in financial markets may cause the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (value of a property to change materially) Tj ET Q q 0 0 0 rg BT 208.78 334.10 Td (. ) Tj ET Q q 0 0 0 rg BT 213.60 334.10 Td (The NA) Tj ET Q q 0 0 0 rg BT 244.80 334.10 Td (V) Tj ET Q q 0 0 0 rg BT 251.84 334.10 Td ( per share of each class of our common stock as published for any given ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (month may not reflect such extraordinary events to the extent that their financial impact is not immediately quantifiable. ) Tj ET Q q 0 0 0 rg BT 532.41 322.10 Td (As a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (result, the NA) Tj ET Q q 0 0 0 rg BT 104.59 310.10 Td (V) Tj ET Q q 0 0 0 rg BT 111.63 310.10 Td ( per share that we publish may not necessarily reflect changes in our NA) Tj ET Q q 0 0 0 rg BT 400.52 310.10 Td (V) Tj ET Q q 0 0 0 rg BT 407.56 310.10 Td ( that are not immediately quantifiable, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (and the NA) Tj ET Q q 0 0 0 rg BT 94.31 298.10 Td (V) Tj ET Q q 0 0 0 rg BT 101.35 298.10 Td ( per share of each class published after the announcement of a material event may dif) Tj ET Q q 0 0 0 rg BT 441.86 298.10 Td (fer significantly from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (actual NA) Tj ET Q q 0 0 0 rg BT 89.03 286.10 Td (V) Tj ET Q q 0 0 0 rg BT 96.07 286.10 Td ( per share for such class until such time as the financial impact is quantified and our NA) Tj ET Q q 0 0 0 rg BT 447.18 286.10 Td (V) Tj ET Q q 0 0 0 rg BT 454.22 286.10 Td ( is appropriately adjusted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (in accordance with our valuation procedures. ) Tj ET Q q 0 0 0 rg BT 231.75 274.10 Td (The resulting potential disparity in our NA) Tj ET Q q 0 0 0 rg BT 401.54 274.10 Td (V) Tj ET Q q 0 0 0 rg BT 408.58 274.10 Td ( may inure to the benefit of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (redeeming stockholders or non-redeeming stockholders and new purchasers of our common stock, depending on whether our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (published NA) Tj ET Q q 0 0 0 rg BT 104.04 250.10 Td (V) Tj ET Q q 0 0 0 rg BT 111.08 250.10 Td ( per share for such class is overstated or understated.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 226.10 Td (The realizable value of specific properties may change before the value is adjusted and reflected in the calculation of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (our NA) Tj ET Q q 0 0 0 rg BT 79.60 214.10 Td (V) Tj ET Q q 0 0 0 rg BT 84.98 214.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 190.10 Td (Our valuation procedures generally provide that our ) Tj ET Q q 0 0 0 rg BT 283.15 190.10 Td (Advisor will adjust a real property) Tj ET Q q 0 0 0 rg BT 423.40 190.10 Td (s valuation, as necessary) Tj ET Q q 0 0 0 rg BT 521.05 190.10 Td (, based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (known events that have a material impact on the most recent value \(adjustments for non-material events may also be made\). ) Tj ET Q q 0 0 0 rg BT 547.76 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 556.40 178.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (are dependent on our ) Tj ET Q q 0 0 0 rg BT 135.58 166.10 Td (Advisor to be reasonably aware of material events specific to our properties \(such as tenant disputes, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (damage, litigation and environmental issues, as well as positive events such as new lease agreements\) that may cause the value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (of a property to change materially and to promptly notify the independent valuation firm so that the information may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (reflected in our real estate portfolio valuation. Events may transpire that, for a period of time, are unknown to us or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (independent valuation firm that may af) Tj ET Q q 0 0 0 rg BT 205.10 118.10 Td (fect the value of a property) Tj ET Q q 0 0 0 rg BT 312.45 118.10 Td (, and until such information becomes known and is processed, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (the value of such asset may dif) Tj ET Q q 0 0 0 rg BT 172.62 106.10 Td (fer from the value used to determine our NA) Tj ET Q q 0 0 0 rg BT 349.60 106.10 Td (V) Tj ET Q q 0 0 0 rg BT 355.53 106.10 Td (. In addition, although we may have information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (that suggests a change in value of a property may have occurred, there may be a delay in the resulting change in value being ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (reflected in our NA) Tj ET Q q 0 0 0 rg BT 126.23 82.10 Td (V) Tj ET Q q 0 0 0 rg BT 133.27 82.10 Td ( until such information is appropriately reviewed, verified and processed. ) Tj ET Q q 0 0 0 rg BT 428.56 82.10 Td (Where possible, adjustments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (generally are made based on events evidenced by proper final documentation. It is possible that an adjustment to the valuation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (of a property may occur prior to final documentation if the independent valuation firm determines that events warrant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (adjustments to certain assumptions that materially af) Tj ET Q q 0 0 0 rg BT 259.82 46.10 Td (fect value. However) Tj ET Q q 0 0 0 rg BT 340.21 46.10 Td (, to the extent that an event has not yet become final ) Tj ET Q endstream endobj 29 0 obj <> endobj 30 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (based on proper documentation, its impact on the value of the applicable property may not be reflected \(or may be only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (partially reflected\) in the calculation of our NA) Tj ET Q q 0 0 0 rg BT 237.30 730.10 Td (V) Tj ET Q q 0 0 0 rg BT 243.23 730.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 706.10 Td ( The performance participation allocation payable to the holder of the Special OP) Tj ET Q q 0 0 0 rg BT 403.22 706.10 Td ( Units is calculated on the basis of the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (overall investment return on OP) Tj ET Q q 0 0 0 rg BT 181.91 694.10 Td ( Units over a calendar year) Tj ET Q q 0 0 0 rg BT 292.74 694.10 Td (, so it may not be consistent with the return on your shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 670.10 Td (The performance participation allocation payable to the holder of the Special OP) Tj ET Q q 0 0 0 rg BT 390.06 670.10 Td ( Units is calculated on the basis of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (overall investment return over a calendar year) Tj ET Q q 0 0 0 rg BT 232.75 658.10 Td (. ) Tj ET Q q 0 0 0 rg BT 239.70 658.10 Td (As a result of the manner in which the performance participation allocation is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (calculated, it is not directly tied to the performance of the shares our stockholders purchase, the class of shares you purchase, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (the time period during which our stockholders own their shares. ) Tj ET Q q 0 0 0 rg BT 307.32 634.10 Td (The performance participation allocation may be payable to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (holder of the Special OP) Tj ET Q q 0 0 0 rg BT 147.44 622.10 Td ( Units even if the NA) Tj ET Q q 0 0 0 rg BT 231.97 622.10 Td (V) Tj ET Q q 0 0 0 rg BT 239.01 622.10 Td ( of your shares at the time the performance participation allocation is calculated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (is below your purchase price, and the thresholds at which increases in NA) Tj ET Q q 0 0 0 rg BT 343.96 610.10 Td (V) Tj ET Q q 0 0 0 rg BT 351.00 610.10 Td ( count towards the overall return are not based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (your purchase price. Because of the class-specific allocations of the ongoing distribution and stockholder servicing fees, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 586.10 Td (fer among classes, we do not expect the overall return of each class of shares and OP) Tj ET Q q 0 0 0 rg BT 399.66 586.10 Td ( Units to ever be the same. However) Tj ET Q q 0 0 0 rg BT 544.76 586.10 Td (, if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (and when the performance participation allocation is payable, the expense will be allocated among all holders of shares and OP) Tj ET Q q 0 0 0 rg BT 558.40 574.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (Units ratably according to the NA) Tj ET Q q 0 0 0 rg BT 184.01 562.10 Td (V) Tj ET Q q 0 0 0 rg BT 191.05 562.10 Td ( of their shares or units, regardless of the dif) Tj ET Q q 0 0 0 rg BT 367.48 562.10 Td (ferent returns achieved by dif) Tj ET Q q 0 0 0 rg BT 485.03 562.10 Td (ferent classes of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (shares during the year) Tj ET Q q 0 0 0 rg BT 136.97 550.10 Td (. Further) Tj ET Q q 0 0 0 rg BT 171.01 550.10 Td (, stockholders who redeem their shares during a given year may redeem their shares at a lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (NA) Tj ET Q q 0 0 0 rg BT 62.65 538.10 Td (V) Tj ET Q q 0 0 0 rg BT 69.70 538.10 Td ( per share as a result of an accrual for the estimated performance participation allocation, even if no performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (participation allocation is ultimately payable to the holder of the Special OP) Tj ET Q q 0 0 0 rg BT 353.21 526.10 Td ( Units for all or any portion of such calendar year) Tj ET Q q 0 0 0 rg BT 550.37 526.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (In addition, if the holder of the Special OP) Tj ET Q q 0 0 0 rg BT 219.37 514.10 Td ( Units earns the performance participation allocation in any given year) Tj ET Q q 0 0 0 rg BT 501.08 514.10 Td (, it will not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (obligated to return any portion of it based on our subsequent performance.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 478.10 Td (Our stockholders will not have the benefit of an independent due diligence review in connection with the Of) Tj ET Q q 0 0 0 rg BT 510.38 478.10 Td (fering and, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (since there is no separate counsel for us and certain of our af) Tj ET Q q 0 0 0 rg BT 302.11 466.10 Td (filiates in connection with the Of) Tj ET Q q 0 0 0 rg BT 437.22 466.10 Td (fering, if a conflict of interest ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (arises between us and Hines, we may incur additional fees and expenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 430.10 Td (Because our ) Tj ET Q q 0 0 0 rg BT 124.59 430.10 Td (Advisor and our Dealer Manager are af) Tj ET Q q 0 0 0 rg BT 281.56 430.10 Td (filiates of Hines, our stockholders will not have the benefit of an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (independent due diligence review and investigation of the type normally performed by an unaf) Tj ET Q q 0 0 0 rg BT 427.81 418.10 Td (filiated, independent underwriter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (in connection with a securities of) Tj ET Q q 0 0 0 rg BT 181.78 406.10 Td (fering. In addition, Greenber) Tj ET Q q 0 0 0 rg BT 298.78 406.10 Td (g ) Tj ET Q q 0 0 0 rg BT 306.10 406.10 Td (T) Tj ET Q q 0 0 0 rg BT 311.85 406.10 Td (raurig, LLP) Tj ET Q q 0 0 0 rg BT 358.14 406.10 Td ( has acted as counsel to us, our ) Tj ET Q q 0 0 0 rg BT 483.39 406.10 Td (Advisor and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (Dealer Manager in connection with the Of) Tj ET Q q 0 0 0 rg BT 218.70 394.10 Td (fering and, therefore, investors will not have the benefit of a due diligence review and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (investigation that might otherwise be performed by independent counsel which increases the risk of their investment. ) Tj ET Q q 0 0 0 rg BT 520.03 382.10 Td (There is a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (possibility in the future that the interests of the various parties may become adverse and, under the code of professional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (responsibility of the legal profession, Greenber) Tj ET Q q 0 0 0 rg BT 237.60 358.10 Td (g ) Tj ET Q q 0 0 0 rg BT 244.92 358.10 Td (T) Tj ET Q q 0 0 0 rg BT 250.68 358.10 Td (raurig, LLP) Tj ET Q q 0 0 0 rg BT 296.96 358.10 Td ( may be precluded from representing any one or all of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (parties. If any situation arises in which our interests appear to be in conflict with those of our ) Tj ET Q q 0 0 0 rg BT 423.02 346.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 454.84 346.10 Td (, our Dealer Manager or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (their af) Tj ET Q q 0 0 0 rg BT 77.91 334.10 Td (filiates, additional counsel may be retained by one or more of the parties to assure that their interests are adequately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (protected, which may result in us incurring additional fees and expenses. Moreover) Tj ET Q q 0 0 0 rg BT 382.05 322.10 Td (, should a conflict of interest not be readily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (apparent, Greenber) Tj ET Q q 0 0 0 rg BT 125.94 310.10 Td (g ) Tj ET Q q 0 0 0 rg BT 133.26 310.10 Td (T) Tj ET Q q 0 0 0 rg BT 139.02 310.10 Td (raurig, LLP) Tj ET Q q 0 0 0 rg BT 185.30 310.10 Td ( may inadvertently act in derogation of the interest of the parties which could af) Tj ET Q q 0 0 0 rg BT 503.90 310.10 Td (fect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (ability to meet our investment objectives.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 274.10 Td (The fees we pay in connection with the Of) Tj ET Q q 0 0 0 rg BT 240.09 274.10 Td (fering and the agreements entered into with Hines and its af) Tj ET Q q 0 0 0 rg BT 487.71 274.10 Td (filiates were not ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (determined on an arm) Tj ET Q q 0 0 0 rg BT 143.48 262.10 Td (s-length basis and therefore may not be on the same terms we could achieve from a third party) Tj ET Q q 0 0 0 rg BT 531.17 262.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 238.10 Td (The compensation paid to our ) Tj ET Q q 0 0 0 rg BT 194.86 238.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 226.68 238.10 Td (, Dealer Manager) Tj ET Q q 0 0 0 rg BT 295.97 238.10 Td (, Hines and other af) Tj ET Q q 0 0 0 rg BT 374.37 238.10 Td (filiates for services they provide us was not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (determined on an arm) Tj ET Q q 0 0 0 rg BT 139.74 226.10 Td (s-length basis. ) Tj ET Q q 0 0 0 rg BT 201.41 226.10 Td (All service agreements, contracts or arrangements between or among Hines and its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 214.10 Td (filiates, including our ) Tj ET Q q 0 0 0 rg BT 144.85 214.10 Td (Advisor and us, were not negotiated at arm) Tj ET Q q 0 0 0 rg BT 319.80 214.10 Td (s-length. Such agreements include our ) Tj ET Q q 0 0 0 rg BT 477.26 214.10 Td (Advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (Agreement, our Dealer Manager ) Tj ET Q q 0 0 0 rg BT 181.38 202.10 Td (Agreement, and any property management and leasing agreements. ) Tj ET Q q 0 0 0 rg BT 454.90 202.10 Td (A) Tj ET Q q 0 0 0 rg BT 461.57 202.10 Td ( third party unaf) Tj ET Q q 0 0 0 rg BT 526.09 202.10 Td (filiated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (with Hines may be willing and able to provide certain services to us at a lower price.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 166.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 166.10 Td (e pay substantial compensation to Hines, our ) Tj ET Q q 0 0 0 rg BT 263.08 166.10 Td (Advisor and their af) Tj ET Q q 0 0 0 rg BT 345.41 166.10 Td (filiates, which may be increased during the Of) Tj ET Q q 0 0 0 rg BT 535.23 166.10 Td (fering ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (or future of) Tj ET Q q 0 0 0 rg BT 97.10 154.10 Td (ferings by our independent directors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 130.10 Td (Subject to limitations in our charter) Tj ET Q q 0 0 0 rg BT 215.01 130.10 Td (, the fees, compensation, income, expense reimbursements, interests and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (payments payable to Hines, our ) Tj ET Q q 0 0 0 rg BT 177.81 118.10 Td (Advisor and their af) Tj ET Q q 0 0 0 rg BT 257.88 118.10 Td (filiates may increase during the Of) Tj ET Q q 0 0 0 rg BT 396.26 118.10 Td (fering or in the future without ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (stockholder approval if such increase is approved by a majority of our independent directors.) Tj ET Q endstream endobj 31 0 obj <> endobj 32 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (13) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 742.25 Td (e do not, and do not expect to, have research analysts reviewing our performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 718.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 718.25 Td (e do not, and do not expect to, have research analysts reviewing our performance or our securities on an ongoing basis. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (Therefore, our stockholders will not have an independent review of our performance and the value of our common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (relative to publicly traded companies.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 670.25 Td (Our stockholders may experience dilution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 646.25 Td (Our stockholders do not have preemptive rights. If we engage in a subsequent of) Tj ET Q q 0 0 0 rg BT 397.95 646.25 Td (fering of common shares or securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (convertible into common shares, issue shares pursuant to the distribution reinvestment plan or otherwise issue additional shares, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (investors who purchase shares in the Of) Tj ET Q q 0 0 0 rg BT 208.72 622.25 Td (fering who do not participate in those other stock issuances will experience dilution in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (their percentage ownership of our outstanding shares. Furthermore, stockholders may experience a dilution in the value of their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (shares depending on the terms and pricing of any share issuances \(including the shares being sold in the Of) Tj ET Q q 0 0 0 rg BT 477.54 598.25 Td (fering\) and the value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (of our assets at the time of issuance.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (Risks Related to Our) Tj ET Q q 0 0 0 rg BT 139.04 562.25 Td ( Business in General) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 538.25 Td (Delays in purchasing properties or making other real estate investments with the proceeds received from the Of) Tj ET Q q 0 0 0 rg BT 524.53 538.25 Td (fering ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (may result in a lower rate of return to investors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 502.25 Td (Our ability to locate and commit to purchase specific properties, or make investments, will be partially dependent on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (ability to raise suf) Tj ET Q q 0 0 0 rg BT 121.25 490.25 Td (ficient funds for such acquisitions and investments. ) Tj ET Q q 0 0 0 rg BT 331.31 490.25 Td (W) Tj ET Q q 0 0 0 rg BT 339.94 490.25 Td (e may be substantially delayed in making investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (due to delays in:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 454.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 454.25 Td (the sale of our common shares,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 442.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 442.25 Td (obtaining debt financing,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 430.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 430.25 Td (negotiating or obtaining the necessary purchase documentation,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 418.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 418.25 Td (locating suitable investments or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 406.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 406.25 Td (other factors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 382.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 382.25 Td (e expect to invest proceeds we receive from the Of) Tj ET Q q 0 0 0 rg BT 284.92 382.25 Td (fering in short-term, highly-liquid investments until we use such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (funds in our operations. ) Tj ET Q q 0 0 0 rg BT 149.30 370.25 Td (W) Tj ET Q q 0 0 0 rg BT 157.94 370.25 Td (e expect that the income we earn on these temporary investments will not be substantial. Further) Tj ET Q q 0 0 0 rg BT 545.49 370.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (we may use the principal amount of these investments, and any returns generated on these investments, to pay for fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (expenses in connection with the Of) Tj ET Q q 0 0 0 rg BT 190.12 346.25 Td (fering and distributions. ) Tj ET Q q 0 0 0 rg BT 290.75 346.25 Td (Therefore, delays in investing proceeds we raise from the Of) Tj ET Q q 0 0 0 rg BT 533.26 346.25 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (could impact our ability to generate cash flow for distributions.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 310.25 Td (A) Tj ET Q q 0 0 0 rg BT 73.62 310.25 Td ( prolonged national or world-wide economic downturn or volatile capital market conditions could adversely af) Tj ET Q q 0 0 0 rg BT 526.23 310.25 Td (fect our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (results of operations and our ability to pay distributions to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 274.25 Td (If disruptions in the capital and credit markets were to occur) Tj ET Q q 0 0 0 rg BT 314.13 274.25 Td (, they could adversely af) Tj ET Q q 0 0 0 rg BT 411.96 274.25 Td (fect our ability to obtain loans, credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (facilities, debt financing and other financing, or) Tj ET Q q 0 0 0 rg BT 239.59 262.25 Td (, when available, to obtain such financing on reasonable terms, which could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (negatively impact our ability to implement our investment strategy) Tj ET Q q 0 0 0 rg BT 316.01 250.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 226.25 Td (If these disruptions in the capital and credit markets should occur again as a result of, among other factors, uncertainty) Tj ET Q q 0 0 0 rg BT 546.31 226.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (changing regulation, changes in trade agreements, reduced alternatives or additional failures of significant financial institutions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (our access to liquidity could be significantly impacted. Prolonged disruptions could result in us taking measures to conserve ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (cash until the markets stabilize or until alternative credit arrangements or other funding for our business needs could be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (arranged. Such measures could include deferring investments, reducing or eliminating the number of shares redeemed under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (our share redemption program and reducing or eliminating distributions we make to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 142.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 142.25 Td (e believe the risks associated with our business are more severe during periods of economic downturn if these periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (are accompanied by declining values in real estate. For example, a prolonged economic downturn could negatively impact our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (property investments as a result of increased customer delinquencies and/or defaults under our leases, generally lower demand ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (for rentable space, potential oversupply of rentable space leading to increased concessions, and/or customer improvement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (expenditures, or reduced rental rates to maintain occupancies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 70.25 Td (Our operations could be negatively af) Tj ET Q q 0 0 0 rg BT 224.10 70.25 Td (fected to a greater extent if an economic downturn occurs, is prolonged or becomes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (more severe, which could significantly harm our revenues, results of operations, financial condition, liquidity) Tj ET Q q 0 0 0 rg BT 486.23 58.25 Td (, business ) Tj ET Q endstream endobj 33 0 obj <> endobj 34 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (prospects and our ability to make distributions to our stockholders and may result in a decrease in the value of our stockholders) Tj ET Q q 0 0 0 rg BT 561.13 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (investment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 706.10 Td (Y) Tj ET Q q 0 0 0 rg BT 73.06 706.10 Td (ields on and safety of deposits may be lower due to the extensive decline in the financial markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 682.10 Td (Until we invest the proceeds of the Of) Tj ET Q q 0 0 0 rg BT 225.78 682.10 Td (fering in real properties and other real estate investments, we may hold those funds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (in investments, including money market funds, bank money market accounts and CDs or other accounts at third-party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (depository institutions. Unusual declines in the financial markets, similar to those experienced during the Great Recession, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (could result in a loss of some or all of these funds. In particular) Tj ET Q q 0 0 0 rg BT 304.31 646.10 Td (, money market funds may experience intense redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (pressure and have dif) Tj ET Q q 0 0 0 rg BT 134.56 634.10 Td (ficulty satisfying redemption requests. ) Tj ET Q q 0 0 0 rg BT 292.31 634.10 Td (As a result, we may not be able to access the cash in our money ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (market investments. In addition, current yields from these investments are minimal.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 598.10 Td (The failure of any bank in which we deposit our funds could reduce the amount of cash we have available to pay ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (distributions and make additional investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 562.10 Td (The Federal Deposit Insurance Corporation only insures amounts up to $250,000 per depositor) Tj ET Q q 0 0 0 rg BT 452.04 562.10 Td (. It is likely that we will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (have cash and cash equivalents and restricted cash deposited in certain financial institutions in excess of federally insured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (levels. If any of the banking institutions in which we deposit funds ultimately fails, we may lose any amounts of our deposits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (over federally insured levels. ) Tj ET Q q 0 0 0 rg BT 170.38 526.10 Td (The loss of our deposits could reduce the amount of cash we have available to distribute or invest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (and could result in a decline in the value of our stockholders) Tj ET Q q 0 0 0 rg BT 293.41 514.10 Td ( investment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 490.10 Td (Because of our inability to retain earnings, we will rely on debt and equity financings for acquisitions, and if we do not ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (have suf) Tj ET Q q 0 0 0 rg BT 84.04 478.10 Td (ficient capital resources from such financings, our growth may be limited.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 454.10 Td (In order to qualify for taxation as a REIT) Tj ET Q q 0 0 0 rg BT 237.15 454.10 Td (, we generally are required to distribute to our stockholders at least 90% of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (annual ordinary taxable income to maintain such qualification. ) Tj ET Q q 0 0 0 rg BT 304.79 442.10 Td (This requirement limits our ability to retain income or cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (from operations to finance the acquisition of new investments. ) Tj ET Q q 0 0 0 rg BT 303.98 430.10 Td (W) Tj ET Q q 0 0 0 rg BT 312.62 430.10 Td (e will explore acquisition opportunities from time to time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (with the intention of expanding our operations and increasing our profitability) Tj ET Q q 0 0 0 rg BT 361.00 418.10 Td (. ) Tj ET Q q 0 0 0 rg BT 368.32 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 376.96 418.10 Td (e anticipate that we will use debt and equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (financing for such acquisitions because of our inability to retain significant earnings. Consequently) Tj ET Q q 0 0 0 rg BT 447.64 406.10 Td (, if we cannot obtain debt or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (equity financing on acceptable terms, our ability to acquire new investments and expand our operations will be adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 382.10 Td (fected.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 358.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 358.10 Td (e may need to incur borrowings that would otherwise not be incurred to meet REIT minimum distribution ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (requirements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 322.10 Td (In order to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 188.28 322.10 Td (, we are required to distribute to our stockholders at least 90% of our annual ordinary taxable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (income. In addition, we will be subject to a 4% nondeductible excise tax on the amount, if any) Tj ET Q q 0 0 0 rg BT 429.03 310.10 Td (, by which certain distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (paid \(or deemed paid\) by us with respect to any calendar year are less than the sum of \(i\)85% of our ordinary income for that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (year) Tj ET Q q 0 0 0 rg BT 66.31 286.10 Td (, \(ii\)95% of our capital gain net income for that year and \(iii\)100% of our undistributed taxable income from prior years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 262.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 262.10 Td (e expect our income, if any) Tj ET Q q 0 0 0 rg BT 190.33 262.10 Td (, to consist almost solely of our share of the Operating Partnership) Tj ET Q q 0 0 0 rg BT 458.06 262.10 Td (s income, and the cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (available for the payment of distributions by us to our stockholders will consist of our share of cash distributions made by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (Operating Partnership. ) Tj ET Q q 0 0 0 rg BT 144.48 238.10 Td (As the general partner of the Operating Partnership, we will determine the amount of any distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (made by the Operating Partnership. However) Tj ET Q q 0 0 0 rg BT 232.65 226.10 Td (, we must consider a number of factors in making such distributions, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 202.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 202.10 Td (the amount of the cash available for distribution;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 190.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 190.10 Td (the impact of such distribution on other partners of the Operating Partnership;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 178.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 178.10 Td (the Operating Partnership) Tj ET Q q 0 0 0 rg BT 190.63 178.10 Td (s financial condition;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 166.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 166.10 Td (the Operating Partnership) Tj ET Q q 0 0 0 rg BT 190.63 166.10 Td (s capital expenditure requirements and reserves therefor; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 154.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 154.10 Td (the annual distribution requirements contained in the Code necessary to qualify and maintain our qualification as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 142.10 Td (REIT) Tj ET Q q 0 0 0 rg BT 106.57 142.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 118.10 Td (Dif) Tj ET Q q 0 0 0 rg BT 86.65 118.10 Td (ferences in timing between the actual receipt of income and actual payment of deductible expenses and the inclusion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (of such income and deduction of such expenses when determining our taxable income, as well as the ef) Tj ET Q q 0 0 0 rg BT 462.52 106.10 Td (fect of nondeductible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (capital expenditures, the creation of reserves, the use of cash to purchase shares under our share redemption program or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (required debt amortization payments, could result in our having taxable income that exceeds cash available for distribution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 58.10 Td (In view of the foregoing, we may be unable to meet the REIT) Tj ET Q q 0 0 0 rg BT 319.63 58.10 Td ( minimum distribution requirements and/or avoid the 4% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (excise tax described above. In certain cases, we may decide to borrow funds in order to meet the REIT) Tj ET Q q 0 0 0 rg BT 462.22 46.10 Td ( minimum distribution ) Tj ET Q endstream endobj 35 0 obj <> endobj 36 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (and/or avoid the 4% excise tax even if our management believes that the then prevailing market conditions generally are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (favorable for such borrowings or that such borrowings would not be advisable in the absence of such tax considerations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 706.10 Td (Lenders may require us to enter into restrictive covenants that relate to or otherwise limit our operations, which could ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (limit our ability to make distributions to our stockholders, to replace our ) Tj ET Q q 0 0 0 rg BT 348.33 694.10 Td (Advisor or to otherwise achieve our investment ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (objectives.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 658.10 Td (When providing financing, a lender may impose restrictions on us that af) Tj ET Q q 0 0 0 rg BT 365.46 658.10 Td (fect our distribution and operating policies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (our ability to incur additional debt. Loan documents we enter into may contain covenants that limit our ability to further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (mortgage property) Tj ET Q q 0 0 0 rg BT 122.99 634.10 Td (, discontinue insurance coverage, or make distributions under certain circumstances. In addition, provisions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (of our loan documents may deter us from replacing our ) Tj ET Q q 0 0 0 rg BT 272.21 622.10 Td (Advisor because of the consequences under such agreements and may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (limit our ability to replace the property manager or terminate certain operating or lease agreements related to the property) Tj ET Q q 0 0 0 rg BT 534.76 610.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (These or other limitations may adversely af) Tj ET Q q 0 0 0 rg BT 223.15 598.10 Td (fect our flexibility and our ability to achieve our investment objectives.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 574.10 Td (Actions of our joint venture partners, including other Hines investment vehicles and third parties, could negatively ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (impact our performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 538.10 Td (e may purchase or develop properties or other real estate investments or make investments in joint ventures or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (partnerships, co-tenancies or other co-ownership arrangements with Hines af) Tj ET Q q 0 0 0 rg BT 356.71 526.10 Td (filiates, the sellers of the properties, developers or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (similar persons. Joint ownership of properties or other investments, under certain circumstances, may involve risks not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (otherwise present with other methods of owning real estate or other real estate investments. Examples of these risks include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 478.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 478.10 Td (the possibility that our partners or co-investors might become insolvent or bankrupt;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 466.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 466.10 Td (that such partners or co-investors might have economic or other business interests or goals that are inconsistent with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 454.10 Td (our business interests or goals, including inconsistent goals relating to the sale of properties or other investments held ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 442.10 Td (in the joint venture or the timing of the termination and liquidation of the venture;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 430.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 430.10 Td (the possibility that we may incur liabilities as the result of actions taken by our partners or co-investors; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 418.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 418.10 Td (that such partners or co-investors may be in controlling positions and/or be in a position to take actions contrary to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 406.10 Td (instructions or requests or contrary to our policies or objectives, including our policy with respect to qualifying and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 394.10 Td (maintaining our qualification as a REIT) Tj ET Q q 0 0 0 rg BT 243.48 394.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 370.10 Td (Actions by a co-venturer) Tj ET Q q 0 0 0 rg BT 172.23 370.10 Td (, co-tenant or partner may result in subjecting the assets of the joint venture to unexpected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (liabilities. Under joint venture arrangements, neither co-venturer may have the power to control the venture, and under certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (circumstances, an impasse could result and this impasse could have an adverse impact on the operations and profitability of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (joint venture.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 310.10 Td (If we have a right of first refusal or buy/sell right to buy out a co-venturer or partner) Tj ET Q q 0 0 0 rg BT 409.37 310.10 Td (, we may be unable to finance such a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (buy-out if it becomes exercisable or we are required to purchase such interest at a time when it would not otherwise be in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (best interest to do so. If our interest is subject to a buy/sell right, we may not have suf) Tj ET Q q 0 0 0 rg BT 393.97 286.10 Td (ficient cash, available borrowing capacity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (or other capital resources to allow us to elect to purchase an interest of a co-venturer subject to the buy/sell right, in which case ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (we may be forced to sell our interest as the result of the exercise of such right when we would otherwise prefer to keep our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (interest. Finally) Tj ET Q q 0 0 0 rg BT 114.12 250.10 Td (, we may not be able to sell our interest in a joint venture if we desire to exit the venture for any reason or if our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (interest is likewise subject to a right of first refusal of our co-venturer or partner) Tj ET Q q 0 0 0 rg BT 368.99 238.10 Td (, our ability to sell such interest may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (adversely impacted by such right. Joint ownership arrangements with Hines af) Tj ET Q q 0 0 0 rg BT 365.35 226.10 Td (filiates may also entail conflicts of interest.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 202.10 Td (If we invest in a limited partnership as a general partner) Tj ET Q q 0 0 0 rg BT 299.19 202.10 Td (, we could be responsible for all liabilities of such partnership.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 178.10 Td (In some joint ventures or other investments we may make, if the entity in which we invest is a limited partnership, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (may acquire all or a portion of our interest in such partnership as a general partner) Tj ET Q q 0 0 0 rg BT 377.43 166.10 Td (. ) Tj ET Q q 0 0 0 rg BT 384.38 166.10 Td (As a general partner) Tj ET Q q 0 0 0 rg BT 464.77 166.10 Td (, we could be liable for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (all the liabilities of such partnership. ) Tj ET Q q 0 0 0 rg BT 200.02 154.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 249.92 154.10 Td (, we may acquire a general partner interest in the form of a non-managing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (general partner interest. ) Tj ET Q q 0 0 0 rg BT 148.62 142.10 Td (As a non-managing general partner) Tj ET Q q 0 0 0 rg BT 289.28 142.10 Td (, we are potentially liable for all liabilities of the partnership ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (without having the same rights of management or control over the operation of the partnership as the managing general partner) Tj ET Q q 0 0 0 rg BT 556.84 130.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (Therefore, we may be held responsible for all of the liabilities of an entity in which we do not have full management rights or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (control, and our liability may far exceed the amount or value of investment we initially made or then had in the partnership.) Tj ET Q endstream endobj 37 0 obj <> endobj 38 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (16) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 742.25 Td (e may acquire various financial instruments for purposes of hedging or reducing our risks, which may be costly ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (and inef) Tj ET Q q 0 0 0 rg BT 83.49 730.25 Td (fective and may reduce our cash available for distribution to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 706.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 706.25 Td (e may enter into currency rate swaps and caps, or similar hedging or derivative transactions or arrangements, in order to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (manage or mitigate our risk of exposure to the ef) Tj ET Q q 0 0 0 rg BT 244.53 694.25 Td (fects of currency changes as a result of our international investments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (Similarly) Tj ET Q q 0 0 0 rg BT 86.07 682.25 Td (, we may enter into interest rate swaps and caps, or similar hedging or derivative transactions or arrangements, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (order to manage or mitigate our risk of exposure to the ef) Tj ET Q q 0 0 0 rg BT 278.41 670.25 Td (fects of interest rate changes due to variable interest rate debt that we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (may have.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 634.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 634.25 Td (e are dif) Tj ET Q q 0 0 0 rg BT 109.35 634.25 Td (ferent in some respects from other investment vehicles sponsored by Hines, and therefore the past ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (performance of such investments may not be indicative of our future results. In addition, Hines has limited experience in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (acquiring and operating certain types of real estate investments that we may acquire.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 586.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 586.25 Td (e are Hines) Tj ET Q q 0 0 0 rg BT 129.70 586.25 Td ( third publicly-of) Tj ET Q q 0 0 0 rg BT 197.84 586.25 Td (fered real estate investment vehicle. ) Tj ET Q q 0 0 0 rg BT 346.20 586.25 Td (W) Tj ET Q q 0 0 0 rg BT 354.84 586.25 Td (e collectively refer to real estate joint ventures, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (funds and programs as real estate investment vehicles. ) Tj ET Q q 0 0 0 rg BT 271.10 574.25 Td (All but two of the previous real estate investment vehicles of Hines and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (its af) Tj ET Q q 0 0 0 rg BT 69.04 562.25 Td (filiates were conducted through privately-held entities not subject to either the up-front commissions, fees and expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (associated with the Of) Tj ET Q q 0 0 0 rg BT 138.46 550.25 Td (fering or all of the laws and regulations that govern us, including reporting requirements under the federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (securities laws and tax and other regulations applicable to REIT) Tj ET Q q 0 0 0 rg BT 304.55 538.25 Td (s.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 514.25 Td (The past performance of other investment vehicles sponsored by Hines or its af) Tj ET Q q 0 0 0 rg BT 390.45 514.25 Td (filiates may not be indicative of our future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (results, and we may not be able to successfully operate our business and implement our investment strategy) Tj ET Q q 0 0 0 rg BT 479.02 502.25 Td (, which may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 490.25 Td (ferent in a number of respects from the operations previously conducted by Hines. In addition, Hines has limited experience ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (in acquiring and operating certain types of real estate investments that we may acquire. For example, a significant amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (real estate investments that have been made by Hines) Tj ET Q q 0 0 0 rg BT 265.34 466.25 Td ( other investment vehicles have consisted of acquisitions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (development of of) Tj ET Q q 0 0 0 rg BT 122.63 454.25 Td (fice or industrial properties or land. ) Tj ET Q q 0 0 0 rg BT 269.07 454.25 Td (Therefore, we may need to use third parties to source or manage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (investments in which Hines has limited experience. In addition, a significant portion of Hines) Tj ET Q q 0 0 0 rg BT 428.67 442.25 Td ( other programs and investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (involve development projects. ) Tj ET Q q 0 0 0 rg BT 174.75 430.25 Td (Although we are able to invest in development projects, we do not anticipate that a significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (portion of the proceeds from the Of) Tj ET Q q 0 0 0 rg BT 191.50 418.25 Td (fering will be invested in development projects. ) Tj ET Q q 0 0 0 rg BT 386.73 418.25 Td (As a result of all of these factors, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (stockholders should not rely on the past performance of other investment vehicles sponsored by Hines and its af) Tj ET Q q 0 0 0 rg BT 497.27 406.25 Td (filiates to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (predict, or as an indication of, our future performance.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 370.25 Td (Our success will be dependent on the performance of Hines as well as key employees of Hines. Certain other ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (investment vehicles sponsored by Hines have experienced adverse developments in recent years and there is a risk that we ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (may experience similar adverse developments. ) Tj ET Q q 0 0 0 rg BT 241.31 346.25 Td (Adverse changes in af) Tj ET Q q 0 0 0 rg BT 331.96 346.25 Td (filiated programs could also adversely af) Tj ET Q q 0 0 0 rg BT 498.70 346.25 Td (fect our ability ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (to raise capital. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 310.25 Td (Our ability to achieve our investment objectives and to pay distributions is dependent upon the performance of Hines and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (its af) Tj ET Q q 0 0 0 rg BT 69.04 298.25 Td (filiates as well as key employees of Hines in the identification and acquisition of investments, the selection of tenants, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (determination of any financing arrangements, the management of our assets and operation of our day-to-day activities. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (board of directors and our ) Tj ET Q q 0 0 0 rg BT 155.30 274.25 Td (Advisor have broad discretion when identifying, evaluating, making and managing our investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (with the proceeds of the Of) Tj ET Q q 0 0 0 rg BT 158.45 262.25 Td (fering. Our stockholders will have no opportunity to evaluate the terms of transactions or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (economic or financial data concerning our investments. ) Tj ET Q q 0 0 0 rg BT 276.18 250.25 Td (W) Tj ET Q q 0 0 0 rg BT 284.82 250.25 Td (e will rely on the management ability of Hines and the oversight of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (our board of directors as well as the management of any entities or ventures in which we invest.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 214.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 214.25 Td (e may not be able to retain our key employees. ) Tj ET Q q 0 0 0 rg BT 273.56 214.25 Td (T) Tj ET Q q 0 0 0 rg BT 278.97 214.25 Td (o the extent we are unable to retain and/or find qualified successors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (for key employees that depart from the company) Tj ET Q q 0 0 0 rg BT 243.50 202.25 Td (, our results of operations may be adversely impacted. Our of) Tj ET Q q 0 0 0 rg BT 490.75 202.25 Td (ficers and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (management of our ) Tj ET Q q 0 0 0 rg BT 129.20 190.25 Td (Advisor also serve in similar capacities for numerous other entities. If Hines or any of its key employees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (are distracted by these other activities or suf) Tj ET Q q 0 0 0 rg BT 225.64 178.25 Td (fer from adverse financial or operational problems in connection with operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (unrelated to us, the ability of Hines and its af) Tj ET Q q 0 0 0 rg BT 229.28 166.25 Td (filiates to allocate time and/or resources to our operations may be adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 154.25 Td (fected. If Hines is unable to allocate suf) Tj ET Q q 0 0 0 rg BT 218.24 154.25 Td (ficient resources to oversee and perform our operations for any reason, our results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (operations would be adversely impacted. ) Tj ET Q q 0 0 0 rg BT 217.88 142.25 Td (W) Tj ET Q q 0 0 0 rg BT 226.52 142.25 Td (e will not provide key-man life insurance policies for any of Hines) Tj ET Q q 0 0 0 rg BT 495.41 142.25 Td ( key employees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 118.25 Td (Certain other investment vehicles sponsored by Hines have experienced adverse developments in recent years. ) Tj ET Q q 0 0 0 rg BT 520.01 118.25 Td (Although ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (it was re-opened with respect to ordinary redemption requests in ) Tj ET Q q 0 0 0 rg BT 308.87 106.25 Td (April 2013, Hines Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 477.82 106.25 Td (T) Tj ET Q q 0 0 0 rg BT 483.58 106.25 Td (rust, Inc. \(Hines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (REIT\) suspended its share redemption program, except with respect to redemptions in connection with the death or disability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (of a stockholder in December 2009. During the five years prior to its adoption of a plan of liquidation and dissolution, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (specifically in May 201) Tj ET Q q 0 0 0 rg BT 143.83 70.25 Td (1, November 2012, ) Tj ET Q q 0 0 0 rg BT 222.98 70.25 Td (April 2013, November 2013, December 2014 and September 2015, Hines REIT) Tj ET Q q 0 0 0 rg BT 545.41 70.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (board of directors determined an NA) Tj ET Q q 0 0 0 rg BT 195.66 58.25 Td (V) Tj ET Q q 0 0 0 rg BT 202.70 58.25 Td ( per share of $7.78, $7.61, $6.75, $6.40, $6.50, and $6.65, respectively) Tj ET Q q 0 0 0 rg BT 484.50 58.25 Td (, each of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (was lower than the most recent primary of) Tj ET Q q 0 0 0 rg BT 218.43 46.25 Td (fering price of $10.08 per share. ) Tj ET Q q 0 0 0 rg BT 351.81 46.25 Td (The reduction in the NA) Tj ET Q q 0 0 0 rg BT 448.27 46.25 Td (V) Tj ET Q q 0 0 0 rg BT 455.31 46.25 Td ( between November 2012 ) Tj ET Q endstream endobj 39 0 obj <> endobj 40 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (and ) Tj ET Q q 0 0 0 rg BT 65.89 742.10 Td (April 2013 was due to Hines REIT) Tj ET Q q 0 0 0 rg BT 208.09 742.10 Td (s payment to its stockholders of special distributions in excess of $0.80 per share \(all of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (which represented a return of capital\). In addition, Hines REIT) Tj ET Q q 0 0 0 rg BT 303.12 730.10 Td ( decreased its distribution rate in July 2010 and further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (decreased the rate in ) Tj ET Q q 0 0 0 rg BT 133.34 718.10 Td (April 2013. ) Tj ET Q q 0 0 0 rg BT 184.27 718.10 Td (The board of directors of Hines Global REIT) Tj ET Q q 0 0 0 rg BT 363.75 718.10 Td (, another public investment vehicle sponsored by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (Hines, determined an NA) Tj ET Q q 0 0 0 rg BT 150.40 706.10 Td (V) Tj ET Q q 0 0 0 rg BT 157.44 706.10 Td ( per share of $9.04, $10.03, $10.24, $9.44, $8.90 and $8.78, respectively) Tj ET Q q 0 0 0 rg BT 446.74 706.10 Td (, as of December 31, 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (2016, 2015, 2014, 2013, 2012, each of which was lower than the most recent primary of) Tj ET Q q 0 0 0 rg BT 402.01 694.10 Td (fering price of $10.40 per share. ) Tj ET Q q 0 0 0 rg BT 537.89 694.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (reduction in NA) Tj ET Q q 0 0 0 rg BT 113.20 682.10 Td (V) Tj ET Q q 0 0 0 rg BT 120.24 682.10 Td ( between December 2016 and December 2017 was primarily due to Hines Global REIT) Tj ET Q q 0 0 0 rg BT 473.18 682.10 Td (s declaration of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (special distribution of $1.05 per share \(which represented a return of capital\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 646.10 Td (In addition to Hines REIT) Tj ET Q q 0 0 0 rg BT 177.19 646.10 Td (, Hines Global REIT) Tj ET Q q 0 0 0 rg BT 259.21 646.10 Td (, and HMS Income Fund, Inc. \(HMS\), Hines has sponsored more than 20 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (privately-of) Tj ET Q q 0 0 0 rg BT 96.52 634.10 Td (fered programs in the past ten years. Several of Hines) Tj ET Q q 0 0 0 rg BT 315.98 634.10 Td ( privately-of) Tj ET Q q 0 0 0 rg BT 365.50 634.10 Td (fered programs have experienced adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (economic developments due to the global financial crisis and deteriorating economic conditions in several European and South ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (American countries, Mexico and several U.S. markets between 2007 and 2009. ) Tj ET Q q 0 0 0 rg BT 370.89 610.10 Td (The adverse market conditions experienced by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (these programs may result in them altering their investment strategy) Tj ET Q q 0 0 0 rg BT 321.28 598.10 Td (, generating returns lower than originally expected, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (ultimately may cause them to incur losses. ) Tj ET Q q 0 0 0 rg BT 224.00 586.10 Td (There is a risk that we may experience similar adverse developments, as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (investment vehicle sponsored by Hines.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 550.10 Td (Adverse results in the other non-traded REIT) Tj ET Q q 0 0 0 rg BT 251.80 550.10 Td (s on the Hines platform have the potential to af) Tj ET Q q 0 0 0 rg BT 439.63 550.10 Td (fect Hines) Tj ET Q q 0 0 0 rg BT 483.03 550.10 Td ( and our reputation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (among financial advisors and investors, which could af) Tj ET Q q 0 0 0 rg BT 269.82 538.10 Td (fect our ability to raise capital.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 514.10 Td (T) Tj ET Q q 0 0 0 rg BT 72.69 514.10 Td (errorist attacks and other acts of violence, civilian unrest or war may af) Tj ET Q q 0 0 0 rg BT 366.67 514.10 Td (fect the markets in which we operate, our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (business and our profitability) Tj ET Q q 0 0 0 rg BT 169.99 502.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 478.10 Td (T) Tj ET Q q 0 0 0 rg BT 78.91 478.10 Td (errorist attacks and other acts of violence, civilian unrest or war may negatively af) Tj ET Q q 0 0 0 rg BT 407.49 478.10 Td (fect our operations and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (stockholders) Tj ET Q q 0 0 0 rg BT 102.63 466.10 Td ( investment in our shares. ) Tj ET Q q 0 0 0 rg BT 209.93 466.10 Td (W) Tj ET Q q 0 0 0 rg BT 218.57 466.10 Td (e may acquire real estate investments located in or that relate to real estate located in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (areas that are susceptible to attack. In addition, any kind of terrorist activity or violent criminal acts, including terrorist acts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (against public institutions or buildings or modes of public transportation \(including airlines, trains or buses\) could have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (negative ef) Tj ET Q q 0 0 0 rg BT 93.46 430.10 Td (fect on our business. ) Tj ET Q q 0 0 0 rg BT 180.49 430.10 Td (These events may directly impact the value of our assets through damage, destruction, loss or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (increased security costs. ) Tj ET Q q 0 0 0 rg BT 151.23 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 159.87 418.10 Td (e may not be able to obtain insurance against the risk of terrorism because it may not be available or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (may not be available on terms that are economically feasible. Further) Tj ET Q q 0 0 0 rg BT 328.44 406.10 Td (, even if we do obtain terrorism insurance, we may not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (able to obtain suf) Tj ET Q q 0 0 0 rg BT 118.47 394.10 Td (ficient coverage to fund any losses we may incur) Tj ET Q q 0 0 0 rg BT 313.41 394.10 Td (. Risks associated with potential acts of terrorism in the areas ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (in which we acquire properties or other real estate investments could sharply increase the premiums we pay for coverage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (against property and casualty claims. ) Tj ET Q q 0 0 0 rg BT 201.96 370.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 251.86 370.10 Td (, mortgage lenders in some cases have begun to insist that specific coverage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (against terrorism be purchased by commercial owners as a condition for providing loans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 334.10 Td (The consequences of any armed conflict are unpredictable, and we may not be able to foresee events that could have an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.13 322.10 Td (fect on our business or our stockholders) Tj ET Q q 0 0 0 rg BT 252.13 322.10 Td ( investment. More generally) Tj ET Q q 0 0 0 rg BT 366.72 322.10 Td (, any terrorist attack, other act of violence or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (war) Tj ET Q q 0 0 0 rg BT 64.09 310.10 Td (, including armed conflicts, could result in increased volatility in or damage to, the United States and worldwide financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (markets and economy) Tj ET Q q 0 0 0 rg BT 136.60 298.10 Td (. ) Tj ET Q q 0 0 0 rg BT 143.92 298.10 Td (They also could result in a continuation of the current economic uncertainty in the United States or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (abroad. Our revenues will be dependent upon the payment of rent and the return of our other investments which may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (particularly vulnerable to uncertainty in the local economy) Tj ET Q q 0 0 0 rg BT 283.48 274.10 Td (. Increased economic volatility could adversely af) Tj ET Q q 0 0 0 rg BT 484.89 274.10 Td (fect our tenants) Tj ET Q q 0 0 0 rg BT 549.12 274.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (ability to pay rent or the return on our other investments or our ability to borrow money or issue capital stock at acceptable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (prices and have a material adverse ef) Tj ET Q q 0 0 0 rg BT 197.01 250.10 Td (fect on our business, results of operations, cash flows and financial condition and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (ability to make distributions to our stockholders and the value of their investment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 214.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 214.10 Td (e may be subject to litigation which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 356.00 214.10 Td (fect on our business and financial condition. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 196.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 196.10 Td (e may be subject to litigation, including claims relating to our operations, of) Tj ET Q q 0 0 0 rg BT 384.28 196.10 Td (ferings, unrecognized pre-acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.10 Td (contingencies and otherwise in the ordinary course of business. Some of these claims may result in potentially significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.10 Td (judgments against us, some of which are not, or cannot be, insured against. ) Tj ET Q q 0 0 0 rg BT 351.75 172.10 Td (W) Tj ET Q q 0 0 0 rg BT 360.39 172.10 Td (e generally intend to vigorously defend ourselves; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 160.10 Td (however) Tj ET Q q 0 0 0 rg BT 83.53 160.10 Td (, we cannot be certain of the ultimate outcomes of claims that may arise in the future. Resolution of these types of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.10 Td (matters against us may result in our payment of significant fines or settlements, which, if not insured against, or if these fines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.10 Td (and settlements exceed insured levels, would adversely impact our earnings and cash flows. Certain litigation or the resolution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.10 Td (of certain litigation may af) Tj ET Q q 0 0 0 rg BT 155.95 124.10 Td (fect the availability or cost of some of our insurance coverage which could adversely impact our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.10 Td (results of operations and cash flows, expose us to increased risks that would be uninsured and/or adversely impact our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.10 Td (attract of) Tj ET Q q 0 0 0 rg BT 85.13 100.10 Td (ficers and directors. ) Tj ET Q endstream endobj 41 0 obj <> endobj 42 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (18) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (Our business could suf) Tj ET Q q 0 0 0 rg BT 162.07 742.25 Td (fer in the event our ) Tj ET Q q 0 0 0 rg BT 243.09 742.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 274.20 742.25 Td (, our Dealer Manager) Tj ET Q q 0 0 0 rg BT 363.66 742.25 Td (, our transfer agent or any other party that ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (provides us with services essential to our operations experiences system failures or cyberincidents or a deficiency in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 718.25 Td (cybersecurity) Tj ET Q q 0 0 0 rg BT 103.55 718.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 700.25 Td (Our ) Tj ET Q q 0 0 0 rg BT 89.50 700.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 121.32 700.25 Td (, our Dealer Manager) Tj ET Q q 0 0 0 rg BT 206.43 700.25 Td (, our transfer agent and other parties that provide us with services essential to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 688.25 Td (operations are vulnerable to damages from any number of sources, including computer viruses, unauthorized access, ener) Tj ET Q q 0 0 0 rg BT 534.71 688.25 Td (gy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 676.25 Td (blackouts, natural disasters, terrorism, war and telecommunication failures. ) Tj ET Q q 0 0 0 rg BT 352.19 676.25 Td (Any system failure or accident that causes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 664.25 Td (interruptions in our operations could result in a material disruption to our business. ) Tj ET Q q 0 0 0 rg BT 385.28 664.25 Td (A) Tj ET Q q 0 0 0 rg BT 391.95 664.25 Td ( cyber incident is considered to be any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 652.25 Td (adverse event that threatens the confidentiality) Tj ET Q q 0 0 0 rg BT 235.16 652.25 Td (, integrity or availability of information resources. More specifically) Tj ET Q q 0 0 0 rg BT 507.76 652.25 Td (, a cyber ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 640.25 Td (incident is an intentional attack or an unintentional event that may include, but is not limited to, gaining unauthorized access to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 628.25 Td (systems to disrupt operations, corrupt data, steal assets or misappropriate confidential information, such as confidential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 616.25 Td (stockholder records. ) Tj ET Q q 0 0 0 rg BT 132.53 616.25 Td (As reliance on technology in our industry has increased, so have the risks posed to our systems, both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 604.25 Td (internal and those we have outsourced. In addition, the risk of a cyber incident, including by computer hackers, foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 592.25 Td (governments and cyber terrorists, has generally increased as the number) Tj ET Q q 0 0 0 rg BT 337.33 592.25 Td (, intensity and sophistication of attempted attacks and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 580.25 Td (instructions from around the world have increased. ) Tj ET Q q 0 0 0 rg BT 257.87 580.25 Td (The remediation costs and lost revenues experienced by a victim of a cyber ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.25 Td (incident may be significant and significant resources may be required to repair system damage, protect against the threat of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 556.25 Td (future security breaches or to alleviate problems, including reputational harm, loss of revenues and litigation, caused by any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.25 Td (breaches. ) Tj ET Q q 0 0 0 rg BT 89.29 544.25 Td (There also may be liability for any stolen assets or misappropriated confidential information. ) Tj ET Q q 0 0 0 rg BT 462.53 544.25 Td (Any material adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 532.25 Td (fect experienced by our ) Tj ET Q q 0 0 0 rg BT 153.15 532.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 184.97 532.25 Td (, our Dealer Manager) Tj ET Q q 0 0 0 rg BT 270.09 532.25 Td (, our transfer agent and other parties that provide us with services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.25 Td (essential to our operations could, in turn, have an adverse impact on us.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 496.25 Td (Risks Related to Investments in Real Estate) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 472.25 Td (Geographic concentration of our portfolio may make us particularly susceptible to adverse economic developments in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 460.25 Td (the real estate markets of those areas.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 436.25 Td (In the event that we have a concentration of properties in, or real estate investments that invest in properties located in, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 424.25 Td (particular geographic area, our operating results and ability to make distributions are likely to be impacted by economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 412.25 Td (changes af) Tj ET Q q 0 0 0 rg BT 91.79 412.25 Td (fecting the real estate markets in that area. ) Tj ET Q q 0 0 0 rg BT 262.92 412.25 Td (Therefore, an investment in our common stock will be subject to greater ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 400.25 Td (risk to the extent that we lack a geographically diversified portfolio. ) Tj ET Q q 0 0 0 rg BT 325.80 400.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.25 400.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.83 400.25 Td (, we owned interests in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.25 400.25 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.25 400.25 Td ( real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 388.25 Td (estate investments, six of which are located in dif) Tj ET Q q 0 0 0 rg BT 246.76 388.25 Td (ferent domestic and international real estate markets. Please see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.38 388.25 Td (Item 2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.20 388.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.25 Td (Properties for additional information regarding our investments, including market concentration.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 352.25 Td (Industry concentration of our tenants may make us particularly susceptible to adverse economic developments in these ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 340.25 Td (industries.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 316.25 Td (In the event we have a concentration of tenants in a particular industry) Tj ET Q q 0 0 0 rg BT 354.41 316.25 Td (, our operating results and ability to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.25 Td (distributions may be adversely af) Tj ET Q q 0 0 0 rg BT 182.06 304.25 Td (fected by adverse developments in those industries and we will be subject to a greater risk to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.25 Td (the extent that our tenants are not diversified by industry) Tj ET Q q 0 0 0 rg BT 275.18 292.25 Td (. For example, based on leased square footage of our commercial real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.25 Td (estate properties, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.41 280.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.99 280.25 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.25 280.25 Td (60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.58 280.25 Td ( is leased to tenants in the retail industry) Tj ET Q q 0 0 0 rg BT 464.01 280.25 Td (. Please see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.82 280.25 Td (Item 2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 280.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.25 Td (Properties for additional information regarding our investments, including industry concentration.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 244.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 244.25 Td (e have not established investment criteria limiting the size of property acquisitions. If we have an investment that ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 232.25 Td (represents a material percentage of our assets which experiences a loss, the value of an investment in us would be ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 220.25 Td (significantly diminished. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 202.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 202.25 Td (e are not limited in the size of any single property acquisition we may make and certain of our investments may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (represent a significant percentage of its assets. Should we experience a loss on a portion or all of an investment that represents a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (significant percentage of our assets, this event would have a material adverse ef) Tj ET Q q 0 0 0 rg BT 367.81 178.25 Td (fect on our business and financial condition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (which would result in an investment in us being diminished. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 142.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 142.25 Td (e depend on tenants for our revenue, and therefore our revenue will be dependent on the success and economic ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (viability of our tenants. Our reliance on single or significant tenants in certain buildings may decrease our ability to lease ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (vacated space.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 94.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 94.25 Td (e expect that rental income from real property will, directly or indirectly) Tj ET Q q 0 0 0 rg BT 370.26 94.25 Td (, constitute a significant portion of our income. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (Delays in collecting accounts receivable from tenants could adversely af) Tj ET Q q 0 0 0 rg BT 338.92 82.25 Td (fect our cash flows and financial condition. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (addition, the inability of a single major tenant or a number of smaller tenants to meet their rental obligations would adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 58.25 Td (fect our income. ) Tj ET Q q 0 0 0 rg BT 127.16 58.25 Td (Therefore, our financial success will be indirectly dependent on the success of the businesses operated by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (the tenants in our properties or in the properties securing loans we may own. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.14 46.25 Td (year ended December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.81 46.25 Td (, there were ) Tj ET Q endstream endobj 43 0 obj <> endobj 44 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (no tenants that individually represented more than 10% of our total rental revenue. ) Tj ET Q q 0 0 0 rg BT 381.99 742.10 Td (The weakening of the financial condition or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (the bankruptcy or insolvency of a significant tenant or a number of smaller tenants and vacancies caused by defaults of tenants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (or the expiration of leases, may adversely af) Tj ET Q q 0 0 0 rg BT 225.92 718.10 Td (fect our operations and our ability to pay distributions.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 694.10 Td (A) Tj ET Q q 0 0 0 rg BT 79.62 694.10 Td ( change in U.S. accounting standards regarding operating leases may make the leasing of our properties less ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (attractive to our potential tenants, which could reduce overall demand for our leasing services. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 664.10 Td (Under current authoritative accounting guidance for leases, a lease is classified by a tenant as a capital lease if the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 652.10 Td (significant risks and rewards of ownership are considered to reside with the tenant. Under capital lease accounting, both the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 640.10 Td (leased asset and liability are reflected on the tenant) Tj ET Q q 0 0 0 rg BT 256.08 640.10 Td (s balance sheet. If the terms of the lease do not meet the criteria for a capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 628.10 Td (lease, the lease is considered an operating lease and no leased asset or contractual lease obligation is recorded on the tenant) Tj ET Q q 0 0 0 rg BT 544.58 628.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 616.10 Td (balance sheet. ) Tj ET Q q 0 0 0 rg BT 107.53 616.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 156.86 616.10 Td (, under the current accounting standards for leases, the entry into an operating lease with respect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 604.10 Td (real property can appear to enhance a tenant) Tj ET Q q 0 0 0 rg BT 228.57 604.10 Td (s reported financial condition or results of operations in comparison to the tenant) Tj ET Q q 0 0 0 rg BT 554.59 604.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 592.10 Td (direct ownership of the property) Tj ET Q q 0 0 0 rg BT 177.70 592.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 568.10 Td (In order to address concerns raised by the SEC regarding the transparency of contractual lease obligations under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 556.10 Td (existing accounting standards for operating leases, the Financial ) Tj ET Q q 0 0 0 rg BT 307.48 556.10 Td (Accounting Standards Board \(F) Tj ET Q q 0 0 0 rg BT 438.10 556.10 Td (ASB\) issued ) Tj ET Q q 0 0 0 rg BT 494.77 556.10 Td (Accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.10 Td (Standards Update \(ASU\) 2016-02 on February 25, 2016, which substantially changes the current lease accounting standards, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.10 Td (primarily by significantly changing the concept of operating lease accounting. ) Tj ET Q q 0 0 0 rg BT 363.57 532.10 Td (As a result, a lease asset and obligation will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.10 Td (recorded on the tenant) Tj ET Q q 0 0 0 rg BT 141.40 520.10 Td (s balance sheet for all lease arrangements. In addition, ) Tj ET Q q 0 0 0 rg BT 359.93 520.10 Td (ASU 2016-02 will impact the method in which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 508.10 Td (contractual lease payments will be recorded. In order to mitigate the ef) Tj ET Q q 0 0 0 rg BT 331.98 508.10 Td (fect of the new lease accounting standards, tenants may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.10 Td (seek to negotiate certain terms within new lease arrangements or modify terms in existing lease arrangements, such as shorter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.10 Td (lease terms, which would generally have less impact on their balance sheets. ) Tj ET Q q 0 0 0 rg BT 357.18 484.10 Td (Also, tenants may reassess their lease-versus-buy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 472.10 Td (strategies. ) Tj ET Q q 0 0 0 rg BT 92.08 472.10 Td (This could result in a greater renewal risk, a delay in investing our of) Tj ET Q q 0 0 0 rg BT 367.93 472.10 Td (fering proceeds, or shorter lease terms, all of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 460.10 Td (which may negatively impact our operations and our ability to pay distributions to our stockholders. ) Tj ET Q q 0 0 0 rg BT 452.02 460.10 Td (The new leasing standard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 448.10 Td (is ef) Tj ET Q q 0 0 0 rg BT 66.26 448.10 Td (fective on January 1, 2019, with early adoption permitted.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 418.10 Td (Due to the risks involved in the ownership of real estate investments and real estate acquisitions, a return on an ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (investment in us is not guaranteed, and our stockholders may lose some or all of their investment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 382.10 Td (By owning our shares, stockholders will be subjected to significant risks associated with owning and operating real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (investments. ) Tj ET Q q 0 0 0 rg BT 104.59 370.10 Td (The performance of their investment in us will be subject to such risks, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 346.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 346.10 Td (changes in the general economic climate;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 334.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 334.10 Td (changes in local conditions such as an oversupply of space or reduction in demand for real estate;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 322.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 322.10 Td (changes in interest rates and the availability of financing;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 310.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 310.10 Td (changes in property level operating expenses due to inflation or otherwise;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 298.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 298.10 Td (changes in laws and governmental regulations, including those governing real estate usage, zoning and taxes; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 286.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 286.10 Td (changes due to factors that are generally outside of our control, such as terrorist attacks and international instability) Tj ET Q q 0 0 0 rg BT 545.41 286.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 274.10 Td (natural disasters and acts of God, over) Tj ET Q q 0 0 0 rg BT 237.91 274.10 Td (-building, adverse national, state or local changes in applicable tax, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 262.10 Td (environmental or zoning laws and a taking of any of the properties which we own or in which we otherwise have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 250.10 Td (interests by eminent domain.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 226.10 Td (In addition, we expect to acquire properties in the future, which may subject us to additional risks associated with real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (estate property acquisitions, including the risks that:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 190.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 190.10 Td (the investments will fail to perform in accordance with our expectations because of conditions or liabilities we did not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 178.10 Td (know about at the time of acquisition; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 166.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 166.10 Td (our projections or estimates with respect to the performance of the investments, the costs of operating or improving the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 154.10 Td (properties or the ef) Tj ET Q q 0 0 0 rg BT 160.72 154.10 Td (fect of the economy or capital markets on the investments will prove inaccurate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 130.10 Td (Any of these factors could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 285.72 130.10 Td (fect on our business, results of operations, cash flows and financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (condition and our ability to make distributions to our stockholders and the value of their investment.) Tj ET Q endstream endobj 45 0 obj <> endobj 46 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (20) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (An economic slowdown or rise in interest rates or other unfavorable changes in economic conditions in the markets in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (which we operate could adversely impact our business, results of operations, cash flows and financial condition and our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 718.25 Td (ability to make distributions to our stockholders and the value of their investment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 694.25 Td (The development of negative economic conditions in the markets in which we operate may significantly af) Tj ET Q q 0 0 0 rg BT 500.68 694.25 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (occupancy) Tj ET Q q 0 0 0 rg BT 91.60 682.25 Td (, rental rates and our ability to collect rent from our tenants, as well as our property values, which could have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (material adverse impact on our cash flows, operating results and carrying value of investment property) Tj ET Q q 0 0 0 rg BT 459.55 670.25 Td (. For example, an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (economic recession or rise in interest rates could make it more dif) Tj ET Q q 0 0 0 rg BT 312.84 658.25 Td (ficult for us to lease real properties, may require us to lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (the real properties we acquire at lower rental rates and may lead to an increase in tenant defaults. In addition, these conditions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (may also lead to a decline in the value of our properties and make it more dif) Tj ET Q q 0 0 0 rg BT 356.99 634.25 Td (ficult for us to dispose of these properties at an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (attractive price. Other risks that may af) Tj ET Q q 0 0 0 rg BT 208.14 622.25 Td (fect conditions in the markets in which we operate include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 598.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 598.25 Td (Local conditions, such as an oversupply of the types of properties we invest in or a reduction in demand for such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 586.25 Td (properties in the area; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 574.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 574.25 Td (Increased operating costs, if these costs cannot be passed through to tenants.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 550.25 Td (International, national, regional and local economic climates have been adversely af) Tj ET Q q 0 0 0 rg BT 409.29 550.25 Td (fected by the slow job growth of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (recent years. ) Tj ET Q q 0 0 0 rg BT 104.84 538.25 Td (T) Tj ET Q q 0 0 0 rg BT 110.25 538.25 Td (o the extent any of the adverse conditions described above occurs in the specific markets in which we operate, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (market rents, occupancy rates and our ability to collect rents from our tenants will likely be af) Tj ET Q q 0 0 0 rg BT 424.47 526.25 Td (fected and the value of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (properties may decline. ) Tj ET Q q 0 0 0 rg BT 147.89 514.25 Td (W) Tj ET Q q 0 0 0 rg BT 156.53 514.25 Td (e could also face challenges related to adequately managing and maintaining our properties, should ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (we experience increased operating cost and as a result, we may experience a loss of rental revenues. ) Tj ET Q q 0 0 0 rg BT 453.77 502.25 Td (Any of these factors may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (adversely af) Tj ET Q q 0 0 0 rg BT 97.90 490.25 Td (fect our business, results of operations, cash flows and financial condition, our ability to make distributions to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (stockholders and the value of their investment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 454.25 Td (Our use of borrowings to partially fund acquisitions and improvements on properties could result in foreclosures and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (unexpected debt service expenses upon refinancing, both of which could have an adverse impact on our operations and cash ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (flow) Tj ET Q q 0 0 0 rg BT 66.91 430.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 406.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 406.25 Td (e are relying and intend to continue to rely in part on borrowings under credit facilities and other external sources of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (financing to fund the costs of new investments, capital expenditures and other items. ) Tj ET Q q 0 0 0 rg BT 392.57 394.25 Td (This may also include our use of short-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (term mortgage notes to fund our long-term investments in real properties, which could result in the maturity date of such notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (being reached prior to a time when the properties securing the notes are generating suf) Tj ET Q q 0 0 0 rg BT 394.74 370.25 Td (ficient cash flows to repay the debt. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 98.84 358.25 Td (, we are subject to the risks that our cash flow will not be suf) Tj ET Q q 0 0 0 rg BT 341.65 358.25 Td (ficient to cover required debt service payments and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (that we will be unable to meet other covenants or requirements in the credit agreements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 322.25 Td (If we cannot meet our required debt obligations, the property or properties securing such indebtedness could be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (foreclosed upon by) Tj ET Q q 0 0 0 rg BT 125.50 310.25 Td (, or otherwise transferred to, our lender) Tj ET Q q 0 0 0 rg BT 281.70 310.25 Td (, with a consequent loss of income and asset value to us. For tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (purposes, a foreclosure of any of our properties would be treated as a sale of the property for a purchase price equal to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (outstanding balance of the debt secured by the mortgage. If the outstanding balance of the debt secured by the mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (exceeds our tax basis in the property) Tj ET Q q 0 0 0 rg BT 194.92 274.25 Td (, we would recognize taxable income on foreclosure, but we may not receive any cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (proceeds. ) Tj ET Q q 0 0 0 rg BT 91.99 262.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 141.89 262.25 Td (, we may be required to refinance our debt subject to lump sum or balloon payment maturities on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (terms less favorable than the original loan or at a time we would otherwise prefer to not refinance such debt. ) Tj ET Q q 0 0 0 rg BT 487.13 250.25 Td (A) Tj ET Q q 0 0 0 rg BT 493.80 250.25 Td ( refinancing on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (such terms or at such times could increase our debt service payments, which would decrease the amount of cash we would have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (available for operations, new investments and distribution payments and may cause us to determine to sell one or more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (properties at a time when we would not otherwise do so.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 190.25 Td (Uninsured losses relating to real property may adversely impact the value of our portfolio.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 166.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 166.25 Td (e will attempt to ensure that all of our properties are adequately insured to cover casualty losses. However) Tj ET Q q 0 0 0 rg BT 507.98 166.25 Td (, there are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (types of losses, generally catastrophic in nature, which are uninsurable, are not economically insurable or are only insurable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (subject to limitations. Examples of such catastrophic events include acts of war or terrorism, earthquakes, floods, hurricanes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (and pollution or environmental matters. ) Tj ET Q q 0 0 0 rg BT 212.89 130.25 Td (W) Tj ET Q q 0 0 0 rg BT 221.53 130.25 Td (e may not have adequate coverage in the event we or our buildings suf) Tj ET Q q 0 0 0 rg BT 503.20 130.25 Td (fer casualty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (losses. If we do not have adequate insurance coverage, the value of our assets will be reduced as the result of, and to the extent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (of, any such uninsured losses. ) Tj ET Q q 0 0 0 rg BT 173.38 106.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 223.28 106.25 Td (, we may not have access to capital resources to repair or reconstruct any uninsured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (damage to a property) Tj ET Q q 0 0 0 rg BT 133.54 94.25 Td (.) Tj ET Q endstream endobj 47 0 obj <> endobj 48 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (21) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 730.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 730.25 Td (e may be unable to obtain desirable types of insurance coverage at a reasonable cost, if at all, and we may be unable ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 718.25 Td (to comply with insurance requirements contained in mortgage or other agreements due to high insurance costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 694.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 694.25 Td (e may not be able either to obtain certain desirable types of insurance coverage, such as terrorism, earthquake, flood, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (hurricane and pollution or environmental matter insurance, or to obtain such coverage at a reasonable cost in the future, and this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (risk may limit our ability to finance or refinance debt secured by our properties. ) Tj ET Q q 0 0 0 rg BT 372.73 670.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 422.63 670.25 Td (, we could default under debt or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (other agreements if the cost and/or availability of certain types of insurance make it impractical or impossible to comply with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (covenants relating to the insurance we are required to maintain under such agreements. In such instances, we may be required ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (to self-insure against certain losses or seek other forms of financial assurance.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 610.25 Td (The real estate industry is subject to extensive regulation, which may result in higher expenses or other negative ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (consequences that could adversely af) Tj ET Q q 0 0 0 rg BT 201.52 598.25 Td (fect us. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 574.25 Td (Our activities are subject to federal, state and municipal laws, and to regulations, authorizations and license requirements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (with respect to, among other things, zoning, environmental protection and historical heritage, all of which may af) Tj ET Q q 0 0 0 rg BT 502.52 562.25 Td (fect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (business. ) Tj ET Q q 0 0 0 rg BT 88.21 550.25 Td (W) Tj ET Q q 0 0 0 rg BT 96.85 550.25 Td (e may be required to obtain licenses and permits with dif) Tj ET Q q 0 0 0 rg BT 323.83 550.25 Td (ferent governmental authorities in order to acquire and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (manage our assets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 514.25 Td (In addition, the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 186.52 514.25 Td (W) Tj ET Q q 0 0 0 rg BT 195.16 514.25 Td (all Street Reform and Consumer Protection ) Tj ET Q q 0 0 0 rg BT 370.13 514.25 Td (Act \(the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 460.38 514.25 Td (Act\), which generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (took ef) Tj ET Q q 0 0 0 rg BT 77.37 502.25 Td (fect in 201) Tj ET Q q 0 0 0 rg BT 119.76 502.25 Td (1, contains a sweeping overhaul of the regulation of U.S. financial institutions and financial markets. Key ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (provisions of the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 170.05 490.25 Td (Act require extensive rulemaking by the SEC and the U.S. Commodity Futures ) Tj ET Q q 0 0 0 rg BT 488.70 490.25 Td (T) Tj ET Q q 0 0 0 rg BT 494.46 490.25 Td (rading ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (Commission, some of which remains ongoing. ) Tj ET Q q 0 0 0 rg BT 238.20 478.25 Td (Thus, the full impact of the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 400.39 478.25 Td (Act on our business cannot be fully ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (assessed until all final implementing rules and regulations are promulgated. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 442.25 Td (V) Tj ET Q q 0 0 0 rg BT 78.11 442.25 Td (arious rules currently in ef) Tj ET Q q 0 0 0 rg BT 183.45 442.25 Td (fect under the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 291.75 442.25 Td (Act may have a significant impact on our business, including, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (without limitation, provisions of the legislation that increase regulation of and disclosure requirements related to investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (advisors, swap transactions and hedging policies, corporate governance and executive compensation, investor protection and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (enforcement provisions, and asset-backed securities. In February 2017, the U.S. President ordered the Secretary of the U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 394.25 Td (reasury to review certain existing rules and regulations, such as those promulgated under the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 478.47 394.25 Td (Act; however) Tj ET Q q 0 0 0 rg BT 532.22 394.25 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (implications of that review are not yet known and none of the rules and regulations promulgated under the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 527.99 382.25 Td (Act ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (have been modified or rescinded as of the date of this report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 346.25 Td (For example, but not by way of limitation, the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 309.74 346.25 Td (Act and the rules and regulations promulgated thereunder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (provides for significantly increased regulation of the derivatives markets and transactions that af) Tj ET Q q 0 0 0 rg BT 434.74 334.25 Td (fect our interest rate hedging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (activities, including: \(i\) regulatory reporting, \(ii\) subject to limited exemptions, mandated clearing through central ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (counterparties and execution on regulated exchanges or execution facilities, and \(iii\) mar) Tj ET Q q 0 0 0 rg BT 404.73 310.25 Td (gin and collateral requirements. ) Tj ET Q q 0 0 0 rg BT 536.17 310.25 Td (While ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (the full impact of the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 186.69 298.25 Td (Act on our interest rate hedging activities cannot be fully assessed until all final ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (implementing rules and regulations are promulgated, the foregoing requirements may af) Tj ET Q q 0 0 0 rg BT 401.71 286.25 Td (fect our ability to enter into hedging or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (other risk management transactions, may increase our costs in entering into such transactions, and/or may result in us entering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (into such transactions on less favorable terms than prior to the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 351.10 262.25 Td (Act. For example, subject to an exception for end-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (users of swaps upon which we may seek to rely) Tj ET Q q 0 0 0 rg BT 243.52 250.25 Td (, we may be required to clear certain interest rate hedging transactions by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (submitting them to a derivatives clearing or) Tj ET Q q 0 0 0 rg BT 223.72 238.25 Td (ganization. ) Tj ET Q q 0 0 0 rg BT 272.69 238.25 Td (T) Tj ET Q q 0 0 0 rg BT 278.10 238.25 Td (o the extent we are required to clear any such transactions, we will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (required to, among other things, post mar) Tj ET Q q 0 0 0 rg BT 214.84 226.25 Td (gin in connection with such transactions. ) Tj ET Q q 0 0 0 rg BT 382.96 226.25 Td (The occurrence of any of the foregoing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (events may have an adverse ef) Tj ET Q q 0 0 0 rg BT 171.20 214.25 Td (fect on our business and our stockholders) Tj ET Q q 0 0 0 rg BT 339.31 214.25 Td ( return.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 190.25 Td (In addition, public authorities may enact new and more stringent standards, or interpret existing laws and regulations in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (more restrictive manner) Tj ET Q q 0 0 0 rg BT 144.61 178.25 Td (, which may force companies in the real estate industry) Tj ET Q q 0 0 0 rg BT 364.44 178.25 Td (, including us, to spend funds to comply with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (these new rules. ) Tj ET Q q 0 0 0 rg BT 115.59 166.25 Td (Any such action on the part of public authorities may adversely af) Tj ET Q q 0 0 0 rg BT 379.50 166.25 Td (fect our results from operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 142.25 Td (In the event of noncompliance with such laws, regulations, licenses and authorizations, we may face the payment of fines, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (project shutdowns, cancellation of licenses, and revocation of authorizations, in addition to other civil and criminal penalties. ) Tj ET Q endstream endobj 49 0 obj <> endobj 50 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (22) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 742.25 Td (e operate in a competitive business, and many of our competitors have significant resources and operating flexibility) Tj ET Q q 0 0 0 rg BT 553.33 742.25 Td (, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (allowing them to compete ef) Tj ET Q q 0 0 0 rg BT 164.86 730.25 Td (fectively with us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 706.25 Td (Numerous real estate companies that operate in the markets in which we may operate will compete with us in acquiring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (real estate investments and obtaining creditworthy tenants to occupy such properties or the properties owned by such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (investments. Such competition could adversely af) Tj ET Q q 0 0 0 rg BT 250.66 682.25 Td (fect our business. ) Tj ET Q q 0 0 0 rg BT 325.19 682.25 Td (There are numerous real estate companies, real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (investment trusts and U.S. institutional and foreign investors that will compete with us in seeking investments and tenants for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (properties, including Hines Global REIT) Tj ET Q q 0 0 0 rg BT 211.78 658.25 Td (. Many of these entities have significant financial and other resources, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (operating experience, allowing them to compete ef) Tj ET Q q 0 0 0 rg BT 252.29 646.25 Td (fectively with us. In addition, our ability to char) Tj ET Q q 0 0 0 rg BT 446.23 646.25 Td (ge premium rental rates to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (tenants may be negatively impacted. ) Tj ET Q q 0 0 0 rg BT 200.10 634.25 Td (This increased competition may increase our costs of acquisitions or investments or lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (our occupancy rates and the rent we may char) Tj ET Q q 0 0 0 rg BT 232.57 622.25 Td (ge tenants. In addition, the arrival of new competitors in the immediate areas ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (where we have assets could require unplanned investments in our assets, which may adversely af) Tj ET Q q 0 0 0 rg BT 437.25 610.25 Td (fect us. ) Tj ET Q q 0 0 0 rg BT 470.95 610.25 Td (W) Tj ET Q q 0 0 0 rg BT 479.59 610.25 Td (e may also have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 598.25 Td (ficulty in renewing leases or in leasing to new tenants, which may lead to a reduction in our cash flow and operating income, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (since the proximity of new competitors could divert existing or new tenants to such competitors, resulting in vacancies.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 562.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 562.25 Td (e may have dif) Tj ET Q q 0 0 0 rg BT 135.17 562.25 Td (ficulty selling real estate investments, and our ability to distribute all or a portion of the net proceeds ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (from such sales to our stockholders may be limited.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 526.25 Td (Real estate investments are relatively illiquid. ) Tj ET Q q 0 0 0 rg BT 261.04 526.25 Td (W) Tj ET Q q 0 0 0 rg BT 269.68 526.25 Td (e will have a limited ability to vary our portfolio in response to changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (in economic or other conditions. ) Tj ET Q q 0 0 0 rg BT 184.01 514.25 Td (W) Tj ET Q q 0 0 0 rg BT 192.65 514.25 Td (e will also have a limited ability to sell assets in order to fund working capital and similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (capital needs such as share redemptions. ) Tj ET Q q 0 0 0 rg BT 215.93 502.25 Td (W) Tj ET Q q 0 0 0 rg BT 224.57 502.25 Td (e expect to generally hold a real estate investment for the long term. ) Tj ET Q q 0 0 0 rg BT 501.23 502.25 Td (When we sell ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (any of our real estate investments, we may not realize a gain on such sale or the amount of our taxable gain could exceed the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (cash proceeds we receive from such sale. ) Tj ET Q q 0 0 0 rg BT 218.96 478.25 Td (W) Tj ET Q q 0 0 0 rg BT 227.60 478.25 Td (e may not distribute any proceeds from the sale of real estate investments to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (stockholders. Rather) Tj ET Q q 0 0 0 rg BT 131.30 466.25 Td (, we may use such proceeds to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 442.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 442.25 Td (purchase additional real estate investments;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 430.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 430.25 Td (repay debt;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 418.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 418.25 Td (buy out interests of any co-venturers or other partners in any joint venture in which we are a party;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 406.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 406.25 Td (purchase shares under our share redemption program;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 394.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 394.25 Td (create working capital reserves; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 382.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 382.25 Td (make repairs, maintenance, tenant improvements or other capital improvements or expenditures to our other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 370.25 Td (properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 346.25 Td (Our ability to sell our properties may also be limited by our desire to avoid a 100% penalty tax that is imposed on gain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (recognized by a REIT) Tj ET Q q 0 0 0 rg BT 137.34 334.25 Td ( from the sale of property characterized as dealer property) Tj ET Q q 0 0 0 rg BT 368.51 334.25 Td (. In order to avoid such characterization and to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (take advantage of certain safe harbors under the Code, we may determine to hold our properties for a minimum period of time, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (generally two years.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 286.25 Td (Our investment strategy may cause us to incur penalty taxes, fail to maintain our REIT status or own and sell properties ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (through TRSs, each of which would diminish the return to our stockholders.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 364.30 274.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 250.25 Td (The sale of one or more of our properties may be considered a prohibited transaction under the Code. ) Tj ET Q q 0 0 0 rg BT 483.31 250.25 Td (Any inventory-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (like sales could be considered such a prohibited transaction. If we are deemed to have engaged in a prohibited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (transaction \(i.e., we sell a property held by us primarily for sale in the ordinary course of our trade or business\), all net gain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (that we derive from such sale would be subject to a 100% penalty tax. ) Tj ET Q q 0 0 0 rg BT 331.74 214.25 Td (The Code sets forth a safe harbor for REIT) Tj ET Q q 0 0 0 rg BT 502.64 214.25 Td (s that wish to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (sell property without risking the imposition of the 100% penalty tax. ) Tj ET Q q 0 0 0 rg BT 325.95 202.25 Td (The principal requirements of the safe harbor are that: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (\(i\)the REIT) Tj ET Q q 0 0 0 rg BT 98.19 190.25 Td ( must hold the applicable property for not less than two years for the production of rental income prior to its sale; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (\(ii\)the aggregate expenditures made by the REIT) Tj ET Q q 0 0 0 rg BT 246.74 178.25 Td (, or any partner of the REIT) Tj ET Q q 0 0 0 rg BT 357.34 178.25 Td (, during the two-year period preceding the date of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (sale which are includable in the basis of the property do not exceed 30% of the net selling price of the property; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (\(iii\)property sales by the REIT) Tj ET Q q 0 0 0 rg BT 174.56 154.25 Td ( do not exceed at least one of the following thresholds: \(a\) seven sales in the current year; \(b\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (sales in the current year that do not exceed 10% of the REIT) Tj ET Q q 0 0 0 rg BT 293.86 142.25 Td (s assets as of the beginning of the year \(as measured by either fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (market value or tax basis\); or \(c\) sales in the current year that do not exceed 20% of the REIT) Tj ET Q q 0 0 0 rg BT 426.86 130.25 Td (s assets as of the beginning of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (year) Tj ET Q q 0 0 0 rg BT 66.31 118.25 Td (, and sales over a three-year period do not exceed, on average, 10% per annum of the REIT) Tj ET Q q 0 0 0 rg BT 433.93 118.25 Td (s assets, in each case as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (measured by either fair market value or tax basis. Given our investment and operating strategy) Tj ET Q q 0 0 0 rg BT 426.78 106.25 Td (, the sale of one or more of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (properties may not satisfy the above prohibited transaction safe harbor) Tj ET Q q 0 0 0 rg BT 330.80 94.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 70.25 Td (If we desire to sell a property pursuant to a transaction that does not satisfy the safe harbor) Tj ET Q q 0 0 0 rg BT 437.93 70.25 Td (, we may be able to avoid the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (prohibited transaction tax if we hold and sell the property through a taxable REIT) Tj ET Q q 0 0 0 rg BT 375.61 58.25 Td ( subsidiary) Tj ET Q q 0 0 0 rg BT 418.57 58.25 Td (, or ) Tj ET Q q 0 0 0 rg BT 434.22 58.25 Td (TRS. In that case, any gain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (would be taxable to the ) Tj ET Q q 0 0 0 rg BT 145.13 46.25 Td (TRS at regular corporate income tax rates. ) Tj ET Q q 0 0 0 rg BT 317.10 46.25 Td (W) Tj ET Q q 0 0 0 rg BT 325.74 46.25 Td (e may decide to for) Tj ET Q q 0 0 0 rg BT 402.74 46.25 Td (go the use of a ) Tj ET Q q 0 0 0 rg BT 463.38 46.25 Td (TRS in a transaction ) Tj ET Q endstream endobj 51 0 obj <> endobj 52 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (that does not meet the safe harbor based our own internal analysis, the opinion of counsel or the opinion of other tax advisors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (that the disposition will not be subject to the prohibited transaction tax. In cases where a property disposition is not ef) Tj ET Q q 0 0 0 rg BT 519.50 730.10 Td (fected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (through a ) Tj ET Q q 0 0 0 rg BT 89.87 718.10 Td (TRS, the Internal Revenue Service could assert that the disposition constitutes a prohibited transaction. If such an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (assertion were successful, all of the net gain from the sale of the property will be payable as a tax which will have a negative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (impact on cash flow and the ability to make cash distributions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 670.10 Td (As a REIT) Tj ET Q q 0 0 0 rg BT 118.53 670.10 Td (, the value of our ownership interests held in our ) Tj ET Q q 0 0 0 rg BT 314.69 670.10 Td (TRSs may not exceed 20% of the value of all of our assets at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (the end of any calendar quarter) Tj ET Q q 0 0 0 rg BT 173.05 658.10 Td (. If the IRS were to determine that the value of our interests in all of our ) Tj ET Q q 0 0 0 rg BT 462.78 658.10 Td (TRSs exceeded 20% of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (the value of our total assets at the end of any calendar quarter) Tj ET Q q 0 0 0 rg BT 294.55 646.10 Td (, then we could fail to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 454.32 646.10 Td (. If we determine it to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (in our best interest to own a substantial number of our properties through one or more ) Tj ET Q q 0 0 0 rg BT 394.80 634.10 Td (TRSs, then it is possible that the IRS may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (conclude that the value of our interests in our ) Tj ET Q q 0 0 0 rg BT 232.87 622.10 Td (TRSs exceeds 20% of the value of our total assets at the end of any calendar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (quarter and therefore cause us to fail to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 278.39 610.10 Td (. ) Tj ET Q q 0 0 0 rg BT 282.83 610.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 332.74 610.10 Td (, as a REIT) Tj ET Q q 0 0 0 rg BT 376.98 610.10 Td (, generally no more than 25% of our gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (income with respect to any year may be from sources other than real estate. Distributions paid to us from a ) Tj ET Q q 0 0 0 rg BT 478.36 598.10 Td (TRS are considered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (to be non-real estate income. ) Tj ET Q q 0 0 0 rg BT 167.05 586.10 Td (Therefore, we may fail to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 342.07 586.10 Td ( if distributions from all of the Company) Tj ET Q q 0 0 0 rg BT 507.33 586.10 Td (s ) Tj ET Q q 0 0 0 rg BT 513.54 586.10 Td (TRSs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (when aggregated with all other non-real estate income with respect to any one year) Tj ET Q q 0 0 0 rg BT 380.91 574.10 Td (, are more than 25% of the Company) Tj ET Q q 0 0 0 rg BT 531.42 574.10 Td (s gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (income with respect to such year) Tj ET Q q 0 0 0 rg BT 180.29 562.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 538.10 Td (Potential liability as the result of, and the cost of compliance with, environmental matters could adversely af) Tj ET Q q 0 0 0 rg BT 511.75 538.10 Td (fect our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 502.10 Td (Under various federal, state and local environmental laws, ordinances and regulations, a current or previous owner or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (operator of real property may be liable for the cost of removal or remediation of hazardous or toxic substances on such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (property) Tj ET Q q 0 0 0 rg BT 82.73 478.10 Td (. Such laws often impose liability whether or not the owner or operator knew of, or was responsible for) Tj ET Q q 0 0 0 rg BT 496.95 478.10 Td (, the presence ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (of such hazardous or toxic substances.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 442.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 442.10 Td (e expect to invest in, or make investments in real estate investments that have interests in, properties historically used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (for industrial, manufacturing and commercial purposes. ) Tj ET Q q 0 0 0 rg BT 276.75 430.10 Td (These properties are more likely to contain, or may have contained, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (under) Tj ET Q q 0 0 0 rg BT 72.09 418.10 Td (ground storage tanks for the storage of petroleum products and other hazardous or toxic substances. ) Tj ET Q q 0 0 0 rg BT 475.03 418.10 Td (All of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (operations create a potential for the release of petroleum products or other hazardous or toxic substances. Leasing properties to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (tenants that engage in industrial, manufacturing, and commercial activities will cause us to be subject to increased risk of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (liabilities under environmental laws and regulations. ) Tj ET Q q 0 0 0 rg BT 264.27 382.10 Td (The presence of hazardous or toxic substances, or the failure to properly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (remediate these substances, may adversely af) Tj ET Q q 0 0 0 rg BT 230.35 370.10 Td (fect our ability to sell, rent or pledge such property as collateral for future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (borrowings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 334.10 Td (Environmental laws also may impose restrictions on the manner in which properties may be used or businesses may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (operated, and these restrictions may require expenditures. Such laws may be amended so as to require compliance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (stringent standards which could require us to make unexpected, substantial expenditures. Environmental laws provide for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (sanctions in the event of noncompliance and may be enforced by governmental agencies or) Tj ET Q q 0 0 0 rg BT 413.69 298.10 Td (, in certain circumstances, by private ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (parties. ) Tj ET Q q 0 0 0 rg BT 83.47 286.10 Td (W) Tj ET Q q 0 0 0 rg BT 92.11 286.10 Td (e may be potentially liable for such costs in connection with the acquisition and ownership of our properties in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (United States. In addition, we may invest in properties located in countries that have adopted laws or observe environmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (management standards that are less stringent than those generally followed in the United States, which may pose a greater risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (that releases of hazardous or toxic substances have occurred to the environment. ) Tj ET Q q 0 0 0 rg BT 375.31 250.10 Td (The cost of defending against claims of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (liability) Tj ET Q q 0 0 0 rg BT 79.96 238.10 Td (, compliance with environmental regulatory requirements or remediating any contaminated property could be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (substantial and require a material portion of our cash flow) Tj ET Q q 0 0 0 rg BT 280.72 226.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 202.10 Td (e ) Tj ET Q q 0 0 0 rg BT 82.59 202.10 Td (face ) Tj ET Q q 0 0 0 rg BT 102.29 202.10 Td (possible ) Tj ET Q q 0 0 0 rg BT 137.57 202.10 Td (risks ) Tj ET Q q 0 0 0 rg BT 159.53 202.10 Td (associated ) Tj ET Q q 0 0 0 rg BT 204.24 202.10 Td (with ) Tj ET Q q 0 0 0 rg BT 224.53 202.10 Td (the ) Tj ET Q q 0 0 0 rg BT 239.81 202.10 Td (physical ) Tj ET Q q 0 0 0 rg BT 276.20 202.10 Td (ef) Tj ET Q q 0 0 0 rg BT 283.78 202.10 Td (fects ) Tj ET Q q 0 0 0 rg BT 305.16 202.10 Td (of ) Tj ET Q q 0 0 0 rg BT 315.99 202.10 Td (climate ) Tj ET Q q 0 0 0 rg BT 348.48 202.10 Td (change.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 178.10 Td (e cannot predict with certainty whether climate change is occurring and, if so, at what rate. However) Tj ET Q q 0 0 0 rg BT 486.02 178.10 Td (, the physical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 166.10 Td (fects of climate change could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 280.96 166.10 Td (fect on our properties, operations and business. ) Tj ET Q q 0 0 0 rg BT 474.06 166.10 Td (T) Tj ET Q q 0 0 0 rg BT 479.47 166.10 Td (o the extent climate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (change causes changes in weather patterns, our markets could experience increases in storm intensity) Tj ET Q q 0 0 0 rg BT 453.70 154.10 Td (, such as those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (experienced in Super Storm Sandy in October 2012 and Hurricane Harvey in 2017, and rising sea-levels. Over time, these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (conditions could result in declining demand for of) Tj ET Q q 0 0 0 rg BT 249.55 130.10 Td (fice space in our buildings or the inability of us to operate the buildings at all. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (Climate change may also have indirect ef) Tj ET Q q 0 0 0 rg BT 214.81 118.10 Td (fects on our business by increasing the cost of \(or making unavailable\) property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (insurance on terms we find acceptable, increasing the cost of ener) Tj ET Q q 0 0 0 rg BT 312.26 106.10 Td (gy and increasing the cost of snow removal at our properties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (There can be no assurance that climate change will not have a material adverse ef) Tj ET Q q 0 0 0 rg BT 375.27 94.10 Td (fect on our properties, operations or business.) Tj ET Q endstream endobj 53 0 obj <> endobj 54 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (24) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (The properties we acquire will be subject to property taxes that may increase in the future, which could adversely af) Tj ET Q q 0 0 0 rg BT 542.29 742.25 Td (fect ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (our cash flow) Tj ET Q q 0 0 0 rg BT 105.25 730.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 706.25 Td (Any properties we acquire will be subject to real and personal property taxes that may increase as property tax rates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (change and as the properties are assessed or reassessed by taxing authorities. ) Tj ET Q q 0 0 0 rg BT 360.88 694.25 Td (W) Tj ET Q q 0 0 0 rg BT 369.52 694.25 Td (e anticipate that most of our leases will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (generally provide that the property taxes, or increases therein, are char) Tj ET Q q 0 0 0 rg BT 330.86 682.25 Td (ged to the lessees as an expense related to the properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (that they occupy) Tj ET Q q 0 0 0 rg BT 114.94 670.25 Td (. ) Tj ET Q q 0 0 0 rg BT 121.89 670.25 Td (As the owner of the properties, however) Tj ET Q q 0 0 0 rg BT 282.27 670.25 Td (, we are ultimately responsible for payment of the taxes to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (government. If property taxes increase, our tenants may be unable to make the required tax payments, ultimately requiring us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (to pay the taxes. In addition, we will generally be responsible for property taxes related to any vacant space. If we purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (residential properties, the leases for such properties typically will not allow us to pass through real estate taxes and other taxes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (to residents of such properties. Consequently) Tj ET Q q 0 0 0 rg BT 228.82 622.25 Td (, any tax increases may adversely af) Tj ET Q q 0 0 0 rg BT 372.74 622.25 Td (fect our results of operations at such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (properties.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 586.25 Td (Our properties may contain or develop harmful mold, which could lead to liability for adverse health ef) Tj ET Q q 0 0 0 rg BT 491.48 586.25 Td (fects and costs of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (remediating the problem.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 550.25 Td (If any of our properties has or develops mold we may be required to undertake a costly program to remediate, contain or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (remove the mold. Mold growth may occur when moisture accumulates in buildings or on building materials. Some molds may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (produce airborne toxins or irritants. Concern about indoor exposure to mold has been increasing because exposure to mold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (may cause a variety of adverse health ef) Tj ET Q q 0 0 0 rg BT 209.51 514.25 Td (fects and symptoms, including aller) Tj ET Q q 0 0 0 rg BT 351.80 514.25 Td (gic or other reactions. ) Tj ET Q q 0 0 0 rg BT 443.81 514.25 Td (W) Tj ET Q q 0 0 0 rg BT 452.45 514.25 Td (e may become liable to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (tenants, their employees and others if property damage or health concerns arise, all of which could have a material adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 490.25 Td (fect on our business, results of operations, cash flows and financial condition and our ability to make distributions to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (stockholders and the value of their investment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 454.25 Td (If we set aside insuf) Tj ET Q q 0 0 0 rg BT 148.99 454.25 Td (ficient working capital reserves, we may be required to defer necessary or desirable property ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (improvements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 418.25 Td (If we do not establish suf) Tj ET Q q 0 0 0 rg BT 174.13 418.25 Td (ficient reserves for working capital to supply necessary funds for capital improvements or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (similar expenses, we may be required to defer necessary or desirable improvements to our properties. If we defer such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (improvements, the applicable properties may decline in value, it may be more dif) Tj ET Q q 0 0 0 rg BT 374.21 394.25 Td (ficult for us to attract or retain tenants to such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (properties or the amount of rent we can char) Tj ET Q q 0 0 0 rg BT 226.47 382.25 Td (ge at such properties may decrease.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 358.25 Td (Risks related to the development of real properties may have an adverse ef) Tj ET Q q 0 0 0 rg BT 371.71 358.25 Td (fect on our results of operations and returns ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 322.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 322.25 Td (e may invest in properties on which developments or improvements are to be constructed or completed. ) Tj ET Q q 0 0 0 rg BT 500.91 322.25 Td (As such, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (may be subject to the risks associated with development and construction activities including the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 286.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 286.25 Td (long periods of time may elapse between the commencement and the completion of our projects;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 274.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 274.25 Td (our original estimates may not be accurate and our actual construction and development costs may exceed those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 262.25 Td (estimates;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 250.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 250.25 Td (the level of interest of potential tenants for a recently launched development may be low;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 238.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 238.25 Td (construction materials and equipment may be unavailable or cost more than expected due to changes in supply and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 226.25 Td (demand;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 214.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 214.25 Td (construction and sales may not be completed on time, resulting in a cost increase;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 202.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 202.25 Td (we may not be able to acquire or we may pay too much for the land we acquire for new developments or properties;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 190.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 190.25 Td (labor may be in limited availability; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 178.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 178.25 Td (changes in tax, real estate and zoning laws may be unfavorable to us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 154.25 Td (In addition, our reputation and the construction quality of our real estate developments, whether operated individually or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (through partnerships, may be determining factors for our ability to lease space and grow) Tj ET Q q 0 0 0 rg BT 401.52 142.25 Td (. ) Tj ET Q q 0 0 0 rg BT 408.84 142.25 Td (The timely delivery of real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (projects and the quality of our developments, however) Tj ET Q q 0 0 0 rg BT 266.81 130.25 Td (, depend on certain factors beyond our full control, including the quality ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (and timeliness of construction materials delivered to us and the technical capabilities of our contractor) Tj ET Q q 0 0 0 rg BT 457.70 118.25 Td (. If one or more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (problems af) Tj ET Q q 0 0 0 rg BT 96.80 106.25 Td (fect our real estate developments, our reputation and future performance may be negatively af) Tj ET Q q 0 0 0 rg BT 472.01 106.25 Td (fected and we may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (exposed to civil liability) Tj ET Q q 0 0 0 rg BT 145.78 94.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 70.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 70.25 Td (e depend on a variety of factors outside of our control to build, develop and operate real estate projects. ) Tj ET Q q 0 0 0 rg BT 500.14 70.25 Td (These factors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (include, among others, the availability of market resources for financing, land acquisition and project development. ) Tj ET Q q 0 0 0 rg BT 515.47 58.25 Td (Any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (scarcity of market resources, including human capital, may decrease our development capacity due to either dif) Tj ET Q q 0 0 0 rg BT 494.42 46.25 Td (ficulty in ) Tj ET Q endstream endobj 55 0 obj <> endobj 56 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (obtaining credit for land acquisition or construction financing or a need to reduce the pace of our growth. ) Tj ET Q q 0 0 0 rg BT 474.73 742.10 Td (The combination of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (these risks may adversely af) Tj ET Q q 0 0 0 rg BT 162.06 730.10 Td (fect our business, results of operations, cash flows and financial condition and our ability to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (distributions to our stockholders and the value of their investment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 694.10 Td (Delays in the development and construction of real properties may have adverse ef) Tj ET Q q 0 0 0 rg BT 406.17 694.10 Td (fects on portfolio diversification, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (results of operations and returns to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 658.10 Td (If we experience delays in the development of our real properties, it could adversely af) Tj ET Q q 0 0 0 rg BT 420.12 658.10 Td (fect returns to our stockholders. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (When properties are acquired prior to the start of construction or during the early stages of construction, it will typically take ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (several months or longer to complete construction, to rent available space, and for rent payments to commence. ) Tj ET Q q 0 0 0 rg BT 500.00 634.10 Td (Therefore, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (may not receive any income from these properties and our ability to pay distributions to our stockholders could suf) Tj ET Q q 0 0 0 rg BT 508.66 622.10 Td (fer) Tj ET Q q 0 0 0 rg BT 519.20 622.10 Td (. If we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (are delayed in the completion of any such construction project, our tenants may have the right to terminate preconstruction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (leases for space at such newly developed project. ) Tj ET Q q 0 0 0 rg BT 250.91 598.10 Td (W) Tj ET Q q 0 0 0 rg BT 259.54 598.10 Td (e may incur additional risks when we make periodic progress payments or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (other advances to builders prior to completion of construction. Each of these factors could result in increased costs of a project ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (or loss of our investment. In addition, we will be subject to normal lease-up risks relating to newly-constructed projects. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (Furthermore, the price we agree to pay for a real property will be based on our projections of rental income and expenses and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (estimates of the fair market value of the real property upon completion of construction. If our projections are inaccurate, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (may pay too much for a property) Tj ET Q q 0 0 0 rg BT 180.48 538.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 514.10 Td (Changes in supply of or demand for similar properties in a particular area may increase the price of real estate assets ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (we may seek to purchase or adversely af) Tj ET Q q 0 0 0 rg BT 214.01 502.10 Td (fect the value of the properties we own.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 478.10 Td (The real estate industry is subject to market forces and we are unable to predict certain market changes including changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (in supply of or demand for similar properties in a particular area. For example, if demand for the types of real estate assets in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (which we seek to invest were to sharply increase or supply of those assets were to sharply decrease, the prices of those assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (could rise significantly) Tj ET Q q 0 0 0 rg BT 140.50 442.10 Td (. ) Tj ET Q q 0 0 0 rg BT 147.44 442.10 Td (Any potential purchase of an overpriced asset could decrease our rate of return on these investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (and result in lower operating results and overall returns to you. Likewise, a sharp increase in supply could adversely af) Tj ET Q q 0 0 0 rg BT 526.40 430.10 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (lease rates and occupancy) Tj ET Q q 0 0 0 rg BT 152.41 418.10 Td (, which could result in lower operating results and overall returns to you.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 394.10 Td (Retail properties depend on anchor tenants to attract shoppers and could be adversely af) Tj ET Q q 0 0 0 rg BT 430.38 394.10 Td (fected by the loss of a key ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (anchor tenant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 358.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 358.10 Td (e may acquire retail properties in the future. Retail properties, like other properties, are subject to the risk that tenants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (may be unable to make their lease payments or may decline to extend a lease upon its expiration. ) Tj ET Q q 0 0 0 rg BT 441.59 346.10 Td (A) Tj ET Q q 0 0 0 rg BT 448.26 346.10 Td ( lease termination by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (tenant that occupies a lar) Tj ET Q q 0 0 0 rg BT 148.72 334.10 Td (ge area of a retail center \(commonly referred to as an anchor tenant\) could impact leases of other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (tenants. Other tenants may be entitled to modify the terms of their existing leases in the event of a lease termination by an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (anchor tenant, or the closure of the business of an anchor tenant that leaves its space vacant even if the anchor tenant continues ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (to pay rent. ) Tj ET Q q 0 0 0 rg BT 99.21 298.10 Td (Any such modifications or conditions could be unfavorable to us as the property owner and could decrease rents or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (expense recoveries. ) Tj ET Q q 0 0 0 rg BT 132.24 286.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 182.14 286.10 Td (, major tenant closures may result in decreased customer traf) Tj ET Q q 0 0 0 rg BT 424.65 286.10 Td (fic, which could lead to decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (sales at other stores. In the event of default by a tenant or anchor store, we may experience delays and costs in enforcing our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (rights as landlord to recover amounts due to us under the terms of our agreements with those parties.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 238.10 Td (Leases with retail properties) Tj ET Q q 0 0 0 rg BT 185.92 238.10 Td ( tenants may restrict us from re-leasing space.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 214.10 Td (Most leases with retail tenants contain provisions giving the particular tenant the exclusive right to sell particular types of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (merchandise or provide specific types of services within the particular retail center) Tj ET Q q 0 0 0 rg BT 379.65 202.10 Td (. ) Tj ET Q q 0 0 0 rg BT 386.97 202.10 Td (These provisions may limit the number and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (types of prospective tenants interested in leasing space in a particular retail property) Tj ET Q q 0 0 0 rg BT 384.84 190.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 166.10 Td (Short-term multifamily community leases associated with any multifamily residential properties we acquire may expose ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (us to the ef) Tj ET Q q 0 0 0 rg BT 94.60 154.10 Td (fects of declining market rent and could adversely impact our ability to make cash distributions to our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 118.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 118.10 Td (e expect that, to the extent that we invest in any multi-family residential properties, substantially all of our multifamily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (community leases will be for a term of one year or less. Because these leases generally permit the residents to leave at the end ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (of the lease term without penalty) Tj ET Q q 0 0 0 rg BT 180.20 94.10 Td (, our rental revenues may be impacted by declines in market rents more quickly than if our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (leases were for longer terms.) Tj ET Q endstream endobj 57 0 obj <> endobj 58 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (26) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (High levels of unemployment could adversely af) Tj ET Q q 0 0 0 rg BT 265.07 742.25 Td (fect the occupancy and rental rates of any multifamily residential ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (properties we acquire, with high quality multifamily communities suf) Tj ET Q q 0 0 0 rg BT 333.51 730.25 Td (fering even more severely) Tj ET Q q 0 0 0 rg BT 438.38 730.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 706.25 Td (Increased levels of unemployment in multifamily markets could significantly decrease occupancy and rental rates. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (times of increasing unemployment, multifamily occupancy and rental rates have historically been adversely af) Tj ET Q q 0 0 0 rg BT 490.28 694.25 Td (fected by:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 670.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 670.25 Td (rental residents deciding to share rental units and therefore rent fewer units;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 658.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 658.25 Td (potential residents moving back into family homes or delaying leaving family homes;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 646.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 646.25 Td (a reduced demand for higher) Tj ET Q q 0 0 0 rg BT 199.85 646.25 Td (-rent units, such as those of high quality multifamily communities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 634.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 634.25 Td (a decline in household formation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 622.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 622.25 Td (persons enrolled in college delaying leaving college or choosing to proceed to or return to graduate school in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 610.25 Td (absence of available employment;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 598.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 598.25 Td (the inability or unwillingness of residents to pay rent increases; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 586.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 586.25 Td (increased collection losses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 562.25 Td (These factors generally have contributed to lower rental rates. If these factors worsen, our results of operations, financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (condition and ability to make distributions to our stockholders may be adversely af) Tj ET Q q 0 0 0 rg BT 380.92 550.25 Td (fected.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 526.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 526.25 Td (e ) Tj ET Q q 0 0 0 rg BT 82.59 526.25 Td (may ) Tj ET Q q 0 0 0 rg BT 102.30 526.25 Td (face ) Tj ET Q q 0 0 0 rg BT 122.01 526.25 Td (risks ) Tj ET Q q 0 0 0 rg BT 143.96 526.25 Td (associated ) Tj ET Q q 0 0 0 rg BT 188.68 526.25 Td (with ) Tj ET Q q 0 0 0 rg BT 208.97 526.25 Td (our ) Tj ET Q q 0 0 0 rg BT 225.92 526.25 Td (student ) Tj ET Q q 0 0 0 rg BT 258.43 526.25 Td (housing ) Tj ET Q q 0 0 0 rg BT 294.29 526.25 Td (properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 502.25 Td (Unlike other apartment housing, student housing communities are typically leased on an individual lease basis, by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (bed, which limits each resident) Tj ET Q q 0 0 0 rg BT 176.41 490.25 Td (s liability to his or her own rent without liability for a roommate) Tj ET Q q 0 0 0 rg BT 435.81 490.25 Td (s rent. ) Tj ET Q q 0 0 0 rg BT 462.57 490.25 Td (The lease terms are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (typically for one year or less and student housing properties must be almost entirely re-leased each year) Tj ET Q q 0 0 0 rg BT 463.41 478.25 Td (, exposing us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (increased leasing risk. If we are unable to find new individual tenants for these properties, it could have an adverse ef) Tj ET Q q 0 0 0 rg BT 521.09 466.25 Td (fect on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (our results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 430.25 Td (Many colleges and universities own and operate their own competing on-campus housing facilities, and changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (university admission policies could adversely af) Tj ET Q q 0 0 0 rg BT 241.78 418.25 Td (fect us. For example, if a university reduces the number of student admissions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (or requires that certain students, such as freshmen, live in a university-owned facility) Tj ET Q q 0 0 0 rg BT 388.75 406.25 Td (, the demand for beds at our student ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (housing properties may be reduced and the occupancy rate at the properties may decline.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 370.25 Td (If we acquire hospitality) Tj ET Q q 0 0 0 rg BT 166.85 370.25 Td (, leisure or healthcare properties, we will depend on others to manage those facilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 346.25 Td (In order to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 188.28 346.25 Td (, we will not be able to operate any hospitality) Tj ET Q q 0 0 0 rg BT 372.58 346.25 Td (, leisure or healthcare properties that we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (acquire or participate in the decisions af) Tj ET Q q 0 0 0 rg BT 209.25 334.25 Td (fecting the daily operations of these properties. ) Tj ET Q q 0 0 0 rg BT 402.06 334.25 Td (W) Tj ET Q q 0 0 0 rg BT 410.70 334.25 Td (e may lease any hospitality) Tj ET Q q 0 0 0 rg BT 518.35 334.25 Td (, leisure or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (healthcare properties we acquire to a taxable REIT) Tj ET Q q 0 0 0 rg BT 252.27 322.25 Td ( subsidiary) Tj ET Q q 0 0 0 rg BT 295.23 322.25 Td (, or ) Tj ET Q q 0 0 0 rg BT 310.88 322.25 Td (TRS, in which we may own up to a 100% interest. In the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (event our ) Tj ET Q q 0 0 0 rg BT 89.30 310.25 Td (TRS will enter into management agreements with eligible independent contractors, potentially including Hines or its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 298.25 Td (filiates, that are not our subsidiaries or otherwise controlled by us to manage these properties. ) Tj ET Q q 0 0 0 rg BT 435.69 298.25 Td (Thus, independent operators, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (under management agreements with our ) Tj ET Q q 0 0 0 rg BT 212.32 286.25 Td (TRS, will control the daily operations of our hospitality) Tj ET Q q 0 0 0 rg BT 434.14 286.25 Td (, leisure and healthcare-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 250.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 250.25 Td (e will depend on these independent management companies to operate our hospitality) Tj ET Q q 0 0 0 rg BT 423.89 250.25 Td (, leisure or healthcare properties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 238.25 Td (e will not have the authority to require these properties to be operated in a particular manner or to govern any particular ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (aspect of the daily operations, such as establishing room rates at our hospitality or leisure properties. ) Tj ET Q q 0 0 0 rg BT 456.16 226.25 Td (Thus, even if we believe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (our hospitality) Tj ET Q q 0 0 0 rg BT 106.90 214.25 Td (, leisure or healthcare properties are being operated inef) Tj ET Q q 0 0 0 rg BT 329.67 214.25 Td (ficiently or in a manner that does not result in satisfactory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (results, we may not be able to force the management company to change its method of operation of these properties. ) Tj ET Q q 0 0 0 rg BT 519.45 202.25 Td (W) Tj ET Q q 0 0 0 rg BT 528.08 202.25 Td (e can ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (only seek redress if a management company violates the terms of the applicable management agreement with the ) Tj ET Q q 0 0 0 rg BT 503.88 190.25 Td (TRS, and then ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (only to the extent of the remedies provided for under the terms of the management agreement. In the event that we need to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (replace any management company) Tj ET Q q 0 0 0 rg BT 187.40 166.25 Td (, we may be required by the terms of the management agreement to pay substantial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (termination fees and may experience significant disruptions at the af) Tj ET Q q 0 0 0 rg BT 322.83 154.25 Td (fected properties.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 130.25 Td (The hospitality or leisure industry is seasonal.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 106.25 Td (The hospitality or leisure industry is seasonal in nature. ) Tj ET Q q 0 0 0 rg BT 299.29 106.25 Td (As a result of the seasonality of the hospitality or leisure industry) Tj ET Q q 0 0 0 rg BT 559.42 106.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (there will likely be quarterly fluctuations in results of operations of any hospitality or leisure properties that we may own. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (Quarterly financial results may be adversely af) Tj ET Q q 0 0 0 rg BT 236.46 82.25 Td (fected by factors outside our control.) Tj ET Q endstream endobj 59 0 obj <> endobj 60 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (27) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (The hospitality or leisure market is highly competitive and generally subject to greater volatility than our other market ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (segments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 706.25 Td (The hospitality or leisure business is highly competitive and influenced by factors such as location, room rates, quality) Tj ET Q q 0 0 0 rg BT 546.91 706.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (service levels, reputation and reservation systems, among many other factors. ) Tj ET Q q 0 0 0 rg BT 364.22 694.25 Td (There are many competitors in this market, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (these competitors may have substantially greater marketing and financial resources than those available to us. ) Tj ET Q q 0 0 0 rg BT 492.78 682.25 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (competition, along with other factors, such as over) Tj ET Q q 0 0 0 rg BT 251.75 670.25 Td (-building in the hospitality or leisure industry and certain deterrents to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (traveling, may increase the number of rooms available and may decrease the average occupancy and room rates of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (hospitality or leisure properties. ) Tj ET Q q 0 0 0 rg BT 181.51 646.25 Td (The demand for rooms at any hospitality or leisure properties that we may acquire will change ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (much more rapidly than the demand for space at other properties that we acquire. ) Tj ET Q q 0 0 0 rg BT 379.19 634.25 Td (This volatility in room demand and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (occupancy rates could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 245.05 622.25 Td (fect on our financial condition, results of operations and ability to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (distributions to our stockholders.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 586.25 Td (If we purchase assets at a time when the commercial real estate market is experiencing substantial influxes of capital ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (investment and competition for properties, the real estate we purchase may not appreciate or may decrease in value.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 550.25 Td (Real estate investment transaction volume has increased and estimated going-in capitalization rates, or cap rates \(ratio of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (the net projected operating income of a property in its initial fiscal year divided by the net purchase price\), have fallen relative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (to their post-recession peaks in late 2009. ) Tj ET Q q 0 0 0 rg BT 220.11 526.25 Td (There continues to be a significant amount of investment capital pursuing high-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (quality) Tj ET Q q 0 0 0 rg BT 76.62 514.25 Td (, well-located assets that generate stable cash flows, causing aggressive competition and pricing for assets which match ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (our investment strategy) Tj ET Q q 0 0 0 rg BT 142.72 502.25 Td (. ) Tj ET Q q 0 0 0 rg BT 150.04 502.25 Td (This may continue to drive prices higher) Tj ET Q q 0 0 0 rg BT 311.81 502.25 Td (, resulting in lower cap rates and returns. ) Tj ET Q q 0 0 0 rg BT 479.64 502.25 Td (T) Tj ET Q q 0 0 0 rg BT 485.05 502.25 Td (o the extent we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (purchase real estate in the future in this environment, we are subject to the risks that the value of our assets may not appreciate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (or may decrease significantly below the amount we paid for such assets if the real estate market ceases to attract the same level ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (of capital investment in the future as it has recently attracted, or if the number of companies seeking to acquire such assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (decreases. If any of these circumstances occur or the values of our investments are otherwise negatively af) Tj ET Q q 0 0 0 rg BT 477.48 454.25 Td (fected, the value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (our stockholders) Tj ET Q q 0 0 0 rg BT 118.46 442.25 Td ( investment may be lower) Tj ET Q q 0 0 0 rg BT 221.22 442.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 418.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 418.25 Td (e depend on the availability of public utilities and services, especially for water and electric power) Tj ET Q q 0 0 0 rg BT 475.60 418.25 Td (. ) Tj ET Q q 0 0 0 rg BT 480.23 418.25 Td (Any reduction, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (interruption or cancellation of these services may adversely af) Tj ET Q q 0 0 0 rg BT 304.29 406.25 Td (fect us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 376.85 Td (Public utilities, especially those that provide water and electric power) Tj ET Q q 0 0 0 rg BT 351.34 376.85 Td (, are fundamental for the operation of our assets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.85 Td (The delayed delivery or any material reduction or prolonged interruption of these services could result in tenants terminating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.85 Td (their leases or result in an increase in our costs, as we may be forced to use backup generators, which also could be insuf) Tj ET Q q 0 0 0 rg BT 531.66 352.85 Td (ficient ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.85 Td (to fully operate our properties. ) Tj ET Q q 0 0 0 rg BT 173.35 340.85 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 222.69 340.85 Td (, any interruption or limitation in the provision of these essential services may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.85 Td (adversely af) Tj ET Q q 0 0 0 rg BT 97.90 328.85 Td (fect us.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 304.85 Td (Risks Related to Investments in Real Estate-Related Securities) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 280.85 Td (Investments in real estate-related securities are subject to specific risks relating to the particular issuer of the securities ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 268.85 Td (and may be subject to the general risks of investing in subordinated real estate-related securities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 244.85 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 244.85 Td (e expect to invest in real estate-related securities to help maintain liquidity to satisfy any share redemptions we choose ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.85 Td (to make in any particular month and to manage cash before investing subscription proceeds into properties. ) Tj ET Q q 0 0 0 rg BT 480.58 232.85 Td (W) Tj ET Q q 0 0 0 rg BT 489.22 232.85 Td (e may invest in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 220.85 Td (real estate-related common equity) Tj ET Q q 0 0 0 rg BT 184.62 220.85 Td (, preferred equity and debt securities of both publicly traded and private real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 208.85 Td (companies. Investments in real estate-related securities will involve special risks relating to the particular issuer of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.85 Td (securities, including the financial condition and business outlook of the issuer) Tj ET Q q 0 0 0 rg BT 359.72 196.85 Td (. Issuers of real estate-related securities generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.85 Td (invest in real estate or real estate-related assets and are subject to the inherent risks associated with real estate-related debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.85 Td (investments discussed in this prospectus.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 148.85 Td (Real estate-related securities may be unsecured and subordinated to other obligations of the issuer) Tj ET Q q 0 0 0 rg BT 464.76 148.85 Td (. ) Tj ET Q q 0 0 0 rg BT 469.21 148.85 Td (As a result, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.85 Td (investments in real estate-related securities are subject to risks of \(i\) limited liquidity in the secondary trading market, \(ii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.85 Td (substantial market price volatility) Tj ET Q q 0 0 0 rg BT 182.98 124.85 Td (, \(iii\) subordination to the prior claims of banks and other senior lenders to the issuer and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.85 Td (preferred equity holders, \(iv\) the operation of mandatory sinking fund or call/redemption provisions during periods of declining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.85 Td (interest rates that could cause the issuer to reinvest redemption proceeds in lower yielding assets, \(v\) the possibility that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 88.85 Td (earnings of the issuer may be insuf) Tj ET Q q 0 0 0 rg BT 188.73 88.85 Td (ficient to meet its debt service and distribution obligations and \(vi\) the declining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 76.85 Td (creditworthiness and potential for insolvency of the issuer during periods of rising interest rates and economic downturn. ) Tj ET Q q 0 0 0 rg BT 535.31 76.85 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 64.85 Td (risks may adversely af) Tj ET Q q 0 0 0 rg BT 139.01 64.85 Td (fect the value of outstanding real estate-related securities and the ability of the issuers thereof to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 52.85 Td (dividends to us.) Tj ET Q endstream endobj 61 0 obj <> endobj 62 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (28) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 730.10 Td (e will be subject to certain risks inherent in investing in publicly traded securities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 706.10 Td (e expect to invest in securities that are publicly traded and are, therefore, subject to the risks inherent in investing in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (public securities. ) Tj ET Q q 0 0 0 rg BT 119.58 694.10 Td (When investing in public securities, we may be unable to obtain financial covenants or other contractual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (rights, including management rights that it might otherwise be able to obtain in making privately negotiated investments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (Moreover) Tj ET Q q 0 0 0 rg BT 88.53 670.10 Td (, we may not have the same access to information in connection with investments in public securities, either when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (investigating a potential investment or after making an investment, as compared to privately negotiated investments. ) Tj ET Q q 0 0 0 rg BT 517.25 658.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (inability to sell public securities could materially adversely af) Tj ET Q q 0 0 0 rg BT 295.91 646.10 Td (fect the investment results. In addition, an investment may be sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (by us to a public company where the consideration received is a combination of cash and stock of the public company) Tj ET Q q 0 0 0 rg BT 520.93 634.10 Td (, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (may) Tj ET Q q 0 0 0 rg BT 66.07 622.10 Td (, depending on the securities laws of the relevant jurisdiction, be subject to lock-up periods.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 598.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 598.10 Td (e may invest in real estate-related equity securities that are subject to specific risks relating to the particular issuer of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (the securities and may be subject to the general risks of investing in subordinated real estate securities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 562.10 Td (The value of real estate-related securities, including those of publicly listed REIT) Tj ET Q q 0 0 0 rg BT 398.25 562.10 Td (s, fluctuates in response to issuer) Tj ET Q q 0 0 0 rg BT 529.49 562.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (political, market and economic developments. In the short term, equity prices can fluctuate dramatically in response to these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (developments. Dif) Tj ET Q q 0 0 0 rg BT 123.19 538.10 Td (ferent parts of the market and dif) Tj ET Q q 0 0 0 rg BT 254.62 538.10 Td (ferent types of equity securities can react dif) Tj ET Q q 0 0 0 rg BT 431.86 538.10 Td (ferently to these developments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (and they can af) Tj ET Q q 0 0 0 rg BT 110.12 526.10 Td (fect a single issuer) Tj ET Q q 0 0 0 rg BT 183.86 526.10 Td (, multiple issuers within an industry) Tj ET Q q 0 0 0 rg BT 326.54 526.10 Td (, the economic sector or geographic region, or the market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (as a whole. ) Tj ET Q q 0 0 0 rg BT 96.53 514.10 Td (The real estate industry is sensitive to economic downturns. ) Tj ET Q q 0 0 0 rg BT 337.96 514.10 Td (The value of securities of companies engaged in real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (estate activities can be af) Tj ET Q q 0 0 0 rg BT 149.27 502.10 Td (fected by changes in real estate values and rental income, property taxes, interest rates and tax and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (regulatory requirements.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 466.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 466.10 Td (e may invest in equity of other REIT) Tj ET Q q 0 0 0 rg BT 224.45 466.10 Td (s and other real estate-related companies, which subjects us to certain risks ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (including those risks associated with an investment in our own common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 430.10 Td (REIT) Tj ET Q q 0 0 0 rg BT 95.02 430.10 Td (s are dependent upon specialized management skills, have limited diversification and are, therefore, subject to risks ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (inherent in financing a limited number of projects. REIT) Tj ET Q q 0 0 0 rg BT 275.13 418.10 Td (s may be subject to a management fees and other expenses, and so ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (when we invest in REIT) Tj ET Q q 0 0 0 rg BT 146.00 406.10 Td (s we will bear our proportionate share of the costs of the REIT) Tj ET Q q 0 0 0 rg BT 395.23 406.10 Td (s) Tj ET Q q 0 0 0 rg BT 401.71 406.10 Td ( operations. Investing in REIT) Tj ET Q q 0 0 0 rg BT 522.38 406.10 Td (s and real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (estate-related companies involves certain unique risks in addition to those risks associated with investing in the real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (industry in general. ) Tj ET Q q 0 0 0 rg BT 129.30 382.10 Td (The market value of REIT) Tj ET Q q 0 0 0 rg BT 234.63 382.10 Td ( shares and the ability of the REIT) Tj ET Q q 0 0 0 rg BT 371.91 382.10 Td ( to distribute income may be adversely af) Tj ET Q q 0 0 0 rg BT 536.96 382.10 Td (fected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (by several factors, including the risks described herein that relate to an investment in our common stock. REIT) Tj ET Q q 0 0 0 rg BT 491.73 370.10 Td (s depend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (generally on their ability to generate cash flow to make distributions to stockholders, and certain REIT) Tj ET Q q 0 0 0 rg BT 459.24 358.10 Td (s have self-liquidation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (provisions by which mortgages held may be paid in full and distributions of capital returns may be made at any time. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (addition, distributions received by us from REIT) Tj ET Q q 0 0 0 rg BT 243.49 334.10 Td (s may consist of dividends, capital gains and/or return of capital. Generally) Tj ET Q q 0 0 0 rg BT 543.03 334.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (dividends received by us from REIT) Tj ET Q q 0 0 0 rg BT 195.12 322.10 Td ( shares and distributed to our stockholders will not constitute qualified dividend income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (eligible for the reduced tax rate applicable to qualified dividend income. In addition, the performance of a REIT) Tj ET Q q 0 0 0 rg BT 497.20 310.10 Td ( may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 298.10 Td (fected by changes in the tax laws or by its failure to qualify for tax-free pass-through of income. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 274.10 Td (REIT) Tj ET Q q 0 0 0 rg BT 95.02 274.10 Td (s are also subject to interest rate risk. Rising interest rates may cause REIT) Tj ET Q q 0 0 0 rg BT 393.64 274.10 Td ( investors to demand a higher annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (yield, which may) Tj ET Q q 0 0 0 rg BT 118.00 262.10 Td (, in turn, cause a decline in the market price of the equity securities issued by a REIT) Tj ET Q q 0 0 0 rg BT 456.87 262.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 238.10 Td (Investing in certain REIT) Tj ET Q q 0 0 0 rg BT 174.72 238.10 Td (s and real estate-related companies, which often have small market capitalizations, may also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (involve the same risks as investing in other small capitalization companies. REIT) Tj ET Q q 0 0 0 rg BT 374.28 226.10 Td (s and real estate-related companies may have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (limited financial resources and their securities may trade less frequently and in limited volume and may be subject to more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (abrupt or erratic price movements than lar) Tj ET Q q 0 0 0 rg BT 217.58 202.10 Td (ger company securities.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 178.10 Td (Investments in real estate-related debt securities are subject to risks including various creditor risks and early ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (redemption features which may materially adversely af) Tj ET Q q 0 0 0 rg BT 274.85 166.10 Td (fect our results of operations and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 142.10 Td (The debt securities and other interests in which we may invest may include secured or unsecured debt at various levels of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (an issuer) Tj ET Q q 0 0 0 rg BT 85.14 130.10 Td () Tj ET Q q 0 0 0 rg BT 87.92 130.10 Td (s capital structure. ) Tj ET Q q 0 0 0 rg BT 163.26 130.10 Td (The debt securities in which we may invest may not be protected by financial covenants or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (limitations upon additional indebtedness, may be illiquid or have limited liquidity) Tj ET Q q 0 0 0 rg BT 375.75 118.10 Td (, and may not be rated by a credit rating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (agency) Tj ET Q q 0 0 0 rg BT 77.17 106.10 Td (. Debt securities are also subject to other creditor risks, including \(i\) the possible invalidation of an investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (transaction as a fraudulent conveyance under relevant creditors) Tj ET Q q 0 0 0 rg BT 313.35 94.10 Td ( rights laws, \(ii\) so- called lender liability claims by the issuer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (of the obligation and \(iii\) environmental liabilities that may arise with respect to collateral securing the obligations. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (investments may be subject to early redemption features, refinancing options, pre-payment options or similar provisions which, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (in each case, could result in the issuer repaying the principal on an obligation held by us earlier than expected, resulting in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (lower return to us than anticipated or reinvesting in a new obligation at a lower return to us.) Tj ET Q endstream endobj 63 0 obj <> endobj 64 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (29) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 730.10 Td (e may invest in commercial mortgage-backed securities, or CMBS, which are subject to all of the risks of the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (underlying mortgage loans and the additional risks of the securitization process.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 694.10 Td (CMBS are securities that evidence interests in, or are secured by) Tj ET Q q 0 0 0 rg BT 330.82 694.10 Td (, a single commercial mortgage loan or a pool of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (commercial mortgage loans. In a rising interest rate environment, the value of CMBS may be adversely af) Tj ET Q q 0 0 0 rg BT 473.63 682.10 Td (fected when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (payments on underlying mortgages do not occur as anticipated, resulting in the extension of the security) Tj ET Q q 0 0 0 rg BT 468.28 670.10 Td (s ef) Tj ET Q q 0 0 0 rg BT 482.26 670.10 Td (fective maturity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (and the related increase in interest rate sensitivity of a longer) Tj ET Q q 0 0 0 rg BT 292.54 658.10 Td (-term instrument. ) Tj ET Q q 0 0 0 rg BT 364.29 658.10 Td (The value of CMBS may also change due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (shifts in the market) Tj ET Q q 0 0 0 rg BT 129.21 646.10 Td (s perception of issuers and regulatory or tax changes adversely af) Tj ET Q q 0 0 0 rg BT 390.04 646.10 Td (fecting the mortgage securities market as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (whole. In addition, CMBS are subject to the credit risk associated with the performance of the underlying mortgage properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 610.10 Td (The securitization process that CMBS go through may also result in additional risks. Generally) Tj ET Q q 0 0 0 rg BT 451.28 610.10 Td (, CMBS are issued in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (classes similar to mortgage loans. ) Tj ET Q q 0 0 0 rg BT 186.51 598.10 Td (T) Tj ET Q q 0 0 0 rg BT 191.92 598.10 Td (o the extent that we invest in a subordinate class, we will be paid interest only to the extent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (that there are funds available after paying the senior classes. ) Tj ET Q q 0 0 0 rg BT 292.27 586.10 Td (T) Tj ET Q q 0 0 0 rg BT 297.68 586.10 Td (o the extent the collateral pool includes delinquent loans, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (subordinate classes will likely not be fully paid and may not be paid at all. Subordinate CMBS are also subject to greater credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (risk than those CMBS that are more highly rated. Further) Tj ET Q q 0 0 0 rg BT 277.95 562.10 Td (, the ratings assigned to any particular class of CMBS may not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (ultimately prove to be accurate. ) Tj ET Q q 0 0 0 rg BT 178.15 550.10 Td (Thus, any particular class of CMBS may be riskier and more volatile than the rating assigned to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (such security which may result in the returns on any such CMBS investment to be less than anticipated.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (Risks Related to Investments in Debt) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 490.10 Td (Hines does not have substantial experience investing in mortgage, mezzanine, bridge or construction loans, B Notes, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (securitized debt or other debt related to properties in which we may invest, which could adversely af) Tj ET Q q 0 0 0 rg BT 457.91 478.10 Td (fect our return on our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (loan investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 442.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 442.10 Td (e may make investments in mortgage, mezzanine, bridge or construction loans, B-Notes, securitized debt or other debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (related to properties if our ) Tj ET Q q 0 0 0 rg BT 155.85 430.10 Td (Advisor determines that it is advantageous to us due to the state of the real estate market or in order ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (to diversify our investment portfolio. However) Tj ET Q q 0 0 0 rg BT 238.78 418.10 Td (, neither our ) Tj ET Q q 0 0 0 rg BT 289.32 418.10 Td (Advisor nor any of its af) Tj ET Q q 0 0 0 rg BT 387.18 418.10 Td (filiates has any substantial experience ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (investing in these types of loans and we may not have the expertise necessary to maximize the return on our investment in these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (types of loans.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 370.10 Td (If we make or invest in loans, our loans may be impacted by unfavorable real estate market conditions, which could ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (decrease the value of our loan investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 334.10 Td (If we make or invest in loans, we will be at risk of default by the borrowers on those loans. ) Tj ET Q q 0 0 0 rg BT 441.84 334.10 Td (These defaults may be caused ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (by many conditions beyond our control, including interest rate levels and local and other economic conditions af) Tj ET Q q 0 0 0 rg BT 499.48 322.10 Td (fecting real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (estate values. ) Tj ET Q q 0 0 0 rg BT 107.63 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 116.27 310.10 Td (e may invest in unsecured loans. Even with respect to loans secured by real property) Tj ET Q q 0 0 0 rg BT 455.51 310.10 Td (, we will not know ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (whether the values of the properties securing the loans will remain at the levels existing on the dates of origination of the loans. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (If the values of such underlying properties drop, our risk will increase with respect to secured loans because of the lower value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (of the security associated with such loans.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 250.10 Td (If we make or invest in loans, our loans will be subject to interest rate fluctuations, which could reduce our returns as ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (compared to market interest rates as well as the value of the loans in the event we sell the loans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 214.10 Td (If we invest in fixed-rate, long-term loans and interest rates rise, the loans could yield a return that is lower than then-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (current market rates. If interest rates decrease, we will be adversely af) Tj ET Q q 0 0 0 rg BT 331.40 202.10 Td (fected to the extent that loans are prepaid, because we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (may not be able to make new loans at the previously higher interest rate. If we invest in variable interest rate loans, if interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (rates decrease, our revenues will likewise decrease. Finally) Tj ET Q q 0 0 0 rg BT 287.64 178.10 Td (, if interest rates increase, the value of fixed-rate loans we own at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (such time would decrease which would lower the proceeds we would receive in the event we sell such assets.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 142.10 Td (Debt investments face prepayment risk that may adversely af) Tj ET Q q 0 0 0 rg BT 316.17 142.10 Td (fect our results of operations and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 118.10 Td (During periods of declining interest rates, the issuer of a security or borrower under a loan may exercise its option to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (prepay principal earlier than scheduled, forcing us to reinvest the proceeds from such prepayment in lower yielding securities or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (loans, which may result in a decline in our return. Debt investments frequently have call features that allow the issuer to redeem ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (the security at dates prior to its stated maturity at a specified price \(typically greater than par\) only if certain prescribed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (conditions are met. ) Tj ET Q q 0 0 0 rg BT 127.82 70.10 Td (An issuer may choose to redeem a debt security if, for example, the issuer can refinance the debt at a lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (cost due to declining interest rates or an improvement in the credit standing of the issuer) Tj ET Q q 0 0 0 rg BT 401.91 58.10 Td (.) Tj ET Q endstream endobj 65 0 obj <> endobj 66 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (30) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (Delays in liquidating defaulted loans could reduce our investment returns.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 718.25 Td (If there are defaults under our loans secured by real property) Tj ET Q q 0 0 0 rg BT 314.96 718.25 Td (, we may not be able to repossess and sell the underlying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (properties quickly) Tj ET Q q 0 0 0 rg BT 121.33 706.25 Td (. ) Tj ET Q q 0 0 0 rg BT 128.65 706.25 Td (The resulting time delay could reduce the value of our investment in the defaulted loans. ) Tj ET Q q 0 0 0 rg BT 484.65 706.25 Td (An action to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (foreclose on a property securing a loan is regulated by state statutes and rules and is subject to many of the delays and expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (of other lawsuits if the defendant raises defenses or counterclaims. In the event of default by a borrower) Tj ET Q q 0 0 0 rg BT 467.00 682.25 Td (, these restrictions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (among other things, may impede our ability to foreclose on or sell the secured property or to obtain proceeds suf) Tj ET Q q 0 0 0 rg BT 499.20 670.25 Td (ficient to repay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (all amounts due to us on the loan.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 634.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 634.25 Td (e may make or invest in mezzanine loans, which involve greater risks of loss than senior loans secured by real ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 598.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 598.25 Td (e may make or invest in mezzanine loans that generally take the form of subordinated loans secured by second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (mortgages on the underlying real property or loans secured by a pledge of the ownership interests of an entity that directly or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (indirectly owns real property) Tj ET Q q 0 0 0 rg BT 164.65 574.25 Td (. ) Tj ET Q q 0 0 0 rg BT 171.97 574.25 Td (These types of investments involve a higher degree of risk than long-term senior mortgage loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (secured by real property because the investment may become unsecured as a result of foreclosure by the senior lender) Tj ET Q q 0 0 0 rg BT 519.87 562.25 Td (. In the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (event of a bankruptcy of the entity providing the pledge of its ownership interests as security) Tj ET Q q 0 0 0 rg BT 419.59 550.25 Td (, we may not have full recourse to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (the assets of such entity) Tj ET Q q 0 0 0 rg BT 143.83 538.25 Td (, or the assets of the entity may not be suf) Tj ET Q q 0 0 0 rg BT 310.00 538.25 Td (ficient to satisfy our mezzanine loan. If a borrower defaults ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (on our mezzanine loan or debt senior to our mezzanine loan, or in the event of a borrower bankruptcy) Tj ET Q q 0 0 0 rg BT 455.09 526.25 Td (, our mezzanine loan will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (be satisfied only after the senior debt. ) Tj ET Q q 0 0 0 rg BT 204.18 514.25 Td (As a result, we may not recover some or all of our investment. In addition, mezzanine ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (loans may have higher loan-to-value ratios than traditional mortgage loans, resulting in less equity in the real property and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (increasing our risk of loss of principal.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 466.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 466.25 Td (e may invest in B-Notes, which are subject to additional risks as a result of the privately negotiated structure and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (terms of such transactions which may result in losses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 430.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 430.25 Td (e may invest in B-Notes, which are typically secured by a first mortgage on a single lar) Tj ET Q q 0 0 0 rg BT 430.46 430.25 Td (ge commercial property or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (group of related properties and subordinated to an ) Tj ET Q q 0 0 0 rg BT 251.11 418.25 Td (A-Note secured by the same first mortgage on the same collateral. If a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (borrower defaults on a B-Note, ) Tj ET Q q 0 0 0 rg BT 176.13 406.25 Td (A-Note holders would be paid first and there may not be suf) Tj ET Q q 0 0 0 rg BT 416.72 406.25 Td (ficient funds remaining to repay us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (and other B-Note holders. B-Notes can vary in their structural characteristics and risks because each transaction is privately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (negotiated. For example, the rights of holders of B-Notes to control the process following a borrower default may be limited in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (certain investments. ) Tj ET Q q 0 0 0 rg BT 134.29 370.25 Td (W) Tj ET Q q 0 0 0 rg BT 142.93 370.25 Td (e cannot predict the terms of each B-Note investment. Moreover) Tj ET Q q 0 0 0 rg BT 402.72 370.25 Td (, because B-Notes are typically secured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (by a single property or group of related properties, such investments may not be as diversified as investments secured by a pool ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (of properties and therefore may be subject to increased risks.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 322.25 Td (Bridge loans may involve a greater risk of loss than conventional mortgage loans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 298.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 298.25 Td (e may provide bridge loans secured by first lien mortgages on properties to borrowers who are typically seeking short-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (term capital in connection with acquisitions, developments or refinancings of real estate. In connection with such investments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (there is a risk that the borrower may not achieve its investment objectives and that we may therefore not recover some or all of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (our investment in such bridge loans. For example, if we provide a bridge loan to a borrower who has identified an undervalued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (asset, either due to mismanagement of the underlying assets or as a result of what the borrowers deem to be a recovering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (market, and the market in which such asset is located fails to recover according to the borrower) Tj ET Q q 0 0 0 rg BT 431.12 238.25 Td () Tj ET Q q 0 0 0 rg BT 433.90 238.25 Td (s projections, or if the borrower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (fails to improve the quality of the asset) Tj ET Q q 0 0 0 rg BT 208.07 226.25 Td (s management or the value of the asset, the borrower may not receive a suf) Tj ET Q q 0 0 0 rg BT 506.95 226.25 Td (ficient return ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (on the asset to satisfy the bridge loan.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 190.25 Td (In addition, owners usually borrow funds under a conventional mortgage loan to repay a bridge loan. If the borrower is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (unable to obtain permanent financing to repay our bridge loan, we may lose some or all of our investment. Bridge loans are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (also subject to risks of borrower defaults, bankruptcies, fraud, losses and special hazard losses that are not covered by standard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (hazard insurance. In the event we make a bridge loan to a borrower who defaults, we bear the risk of loss of principal and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (nonpayment of interest and fees to the extent of any deficiency between the value of the mortgage collateral and the principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (amount of the bridge loan. ) Tj ET Q q 0 0 0 rg BT 160.13 130.25 Td (T) Tj ET Q q 0 0 0 rg BT 165.54 130.25 Td (o the extent we suf) Tj ET Q q 0 0 0 rg BT 240.89 130.25 Td (fer such losses with respect to our investments in bridge loans, it could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (adversely impact our business, results of operations, cash flows and financial ability and our ability to make distributions to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (stockholders and the value of their investment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 82.25 Td (Non-conforming and non-investment grade loans are subject to an increased risk of loss.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 58.25 Td (Loans we may acquire or originate may not conform to conventional loan criteria applied by traditional lenders and may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (not be rated or may be rated as non-investment grade. Non-investment grade ratings for these loans typically result from the ) Tj ET Q endstream endobj 67 0 obj <> endobj 68 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (overall leverage of the loans, the lack of a strong operating history for the properties underlying the loans, the borrowers) Tj ET Q q 0 0 0 rg BT 533.32 742.10 Td ( credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (history) Tj ET Q q 0 0 0 rg BT 76.63 730.10 Td (, the properties) Tj ET Q q 0 0 0 rg BT 138.92 730.10 Td ( underlying cash flow or other factors. ) Tj ET Q q 0 0 0 rg BT 296.75 730.10 Td (Therefore, non-conforming and investment loans we acquire or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (originate may have a higher risk of default and loss than conventional loans. ) Tj ET Q q 0 0 0 rg BT 359.14 718.10 Td (Any loss we incur may adversely impact our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (business, results of operations, cash flows and financial ability and our ability to make distributions to our stockholders and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (value of their investment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 670.10 Td (Our debt investments may be considered illiquid and we may not be able to adjust our portfolio in response to changes ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (in economic and other conditions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 634.10 Td (The debt investments we may make in connection with privately negotiated transactions may not be registered under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (relevant securities laws, resulting in a prohibition against their transfer) Tj ET Q q 0 0 0 rg BT 331.24 622.10 Td (, sale, pledge or other disposition except in a transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (that is exempt from the registration requirements of, or is otherwise in accordance with, those laws. ) Tj ET Q q 0 0 0 rg BT 451.61 610.10 Td (As a result, our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (vary our portfolio in response to changes in economic and other conditions may be relatively limited. ) Tj ET Q q 0 0 0 rg BT 459.21 598.10 Td (The mezzanine loans we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (may purchase in the future will be particularly illiquid investments due to their short life, their unsuitability for securitization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (and the greater dif) Tj ET Q q 0 0 0 rg BT 122.34 574.10 Td (ficulty of recoupment in the event of a borrower) Tj ET Q q 0 0 0 rg BT 315.41 574.10 Td () Tj ET Q q 0 0 0 rg BT 318.19 574.10 Td (s default.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (Risks Related to International Investments) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 526.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 526.10 Td (e are subject to additional risks from our international investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 502.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 502.10 Td (e expect to continue to purchase real estate investments located in, or related to assets located in, the United States and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (internationally) Tj ET Q q 0 0 0 rg BT 107.17 490.10 Td (, and may make or purchase loans or participations in loans secured by property located outside the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (States. ) Tj ET Q q 0 0 0 rg BT 80.71 478.10 Td (These investments may be af) Tj ET Q q 0 0 0 rg BT 196.60 478.10 Td (fected by factors particular to the laws and business practices of the jurisdictions in which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (the properties are located. ) Tj ET Q q 0 0 0 rg BT 157.60 466.10 Td (These laws and business practices may expose us to risks that are dif) Tj ET Q q 0 0 0 rg BT 432.35 466.10 Td (ferent from and in addition to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (those commonly found in the United States. Foreign investments are subject to risk, including the following risks:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 430.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 430.10 Td (the burden of complying with a wide variety of foreign laws;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 418.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 418.10 Td (changing governmental rules and policies, including changes in land use and zoning laws, more stringent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 406.10 Td (environmental laws or changes in such environmental laws;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 394.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 394.10 Td (existing or new laws relating to the foreign ownership of real property or loans and laws restricting the ability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 382.10 Td (foreign persons or companies to remove profits earned from activities within the country to the person) Tj ET Q q 0 0 0 rg BT 496.93 382.10 Td (s or company) Tj ET Q q 0 0 0 rg BT 553.59 382.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 370.10 Td (country of origin;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 358.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 358.10 Td (the potential for expropriation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 346.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 346.10 Td (possible currency transfer restrictions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 334.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 334.10 Td (imposition of adverse or confiscatory taxes;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 322.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 322.10 Td (changes in real estate and other tax rates and changes in other operating expenses in particular countries;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 310.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 310.10 Td (possible challenges to the anticipated tax treatment of the structures that allow us to acquire and hold investments;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 298.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 298.10 Td (adverse market conditions caused by terrorism, civil unrest and changes in national or local governmental or economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 286.10 Td (conditions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 274.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 274.10 Td (the willingness of domestic or foreign lenders to make loans in certain countries and changes in the availability) Tj ET Q q 0 0 0 rg BT 529.05 274.10 Td (, cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 262.10 Td (and terms of loan funds resulting from varying national economic policies;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 250.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 250.10 Td (general political and economic instability in certain regions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 238.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 238.10 Td (the potential dif) Tj ET Q q 0 0 0 rg BT 148.23 238.10 Td (ficulty of enforcing obligations in other countries; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 226.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 226.10 Td (Hines) Tj ET Q q 0 0 0 rg BT 111.02 226.10 Td ( limited experience and expertise in foreign countries relative to its experience and expertise in the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 214.10 Td (States.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 190.10 Td (Investments in properties or other real estate investments outside the United States subject us to foreign currency risks, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (which may adversely af) Tj ET Q q 0 0 0 rg BT 145.69 178.10 Td (fect distributions and our REIT status.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 154.10 Td (Revenues generated from any properties or other real estate investments we acquire or ventures we enter into relating to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (transactions involving assets located in markets outside the United States likely will be denominated in the local currency) Tj ET Q q 0 0 0 rg BT 535.12 142.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (Therefore, any investments we make outside the United States may subject us to foreign currency risk due to potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (fluctuations in exchange rates between foreign currencies and the U.S. dollar) Tj ET Q q 0 0 0 rg BT 356.61 118.10 Td (. ) Tj ET Q q 0 0 0 rg BT 363.56 118.10 Td (As a result, changes in exchange rates of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (such foreign currency to the U.S. dollar may af) Tj ET Q q 0 0 0 rg BT 237.59 106.10 Td (fect our revenues, operating mar) Tj ET Q q 0 0 0 rg BT 367.07 106.10 Td (gins and distributions and may also af) Tj ET Q q 0 0 0 rg BT 518.54 106.10 Td (fect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (book value of our assets and the amount of stockholders) Tj ET Q q 0 0 0 rg BT 276.76 94.10 Td ( equity) Tj ET Q q 0 0 0 rg BT 303.61 94.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 70.10 Td (Changes in foreign currency exchange rates used to value a REIT) Tj ET Q q 0 0 0 rg BT 338.40 70.10 Td (s foreign assets may be considered changes in the value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (of the REIT) Tj ET Q q 0 0 0 rg BT 100.04 58.10 Td (s assets. ) Tj ET Q q 0 0 0 rg BT 137.08 58.10 Td (These changes may adversely af) Tj ET Q q 0 0 0 rg BT 266.29 58.10 Td (fect our status as a REIT) Tj ET Q q 0 0 0 rg BT 364.12 58.10 Td (. Further) Tj ET Q q 0 0 0 rg BT 400.66 58.10 Td (, bank accounts in foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (which are not considered cash or cash equivalents may adversely af) Tj ET Q q 0 0 0 rg BT 319.77 46.10 Td (fect our status as a REIT) Tj ET Q q 0 0 0 rg BT 417.61 46.10 Td (.) Tj ET Q endstream endobj 69 0 obj <> endobj 70 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (32) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 730.10 Td (The United Kingdom) Tj ET Q q 0 0 0 rg BT 156.76 730.10 Td (s determination to exit the European Union could adversely af) Tj ET Q q 0 0 0 rg BT 412.98 730.10 Td (fect market rental rates and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (commercial real estate values in the United Kingdom and Europe.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 687.60 Td (On June 23, 2016, the United Kingdom held a non-binding referendum in which a majority of voters voted in favor of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 675.60 Td (the United Kingdom) Tj ET Q q 0 0 0 rg BT 134.49 675.60 Td (s exit from the European Union. On March 29, 2017, the United Kingdom gave formal notice of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 663.60 Td (exit from the European Union and commenced the two-year period of negotiations to determine the terms of the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 651.60 Td (Kingdom) Tj ET Q q 0 0 0 rg BT 90.06 651.60 Td (s relationship with the European Union after the exit, including, among other things, the terms of trade between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.60 Td (the United Kingdom and the European Union. ) Tj ET Q q 0 0 0 rg BT 236.50 639.60 Td (The ef) Tj ET Q q 0 0 0 rg BT 262.14 639.60 Td (fects of the exit will depend on any agreements the United Kingdom ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 627.60 Td (makes to retain access to European Union markets either during a transitional period or more permanently) Tj ET Q q 0 0 0 rg BT 473.43 627.60 Td (. ) Tj ET Q q 0 0 0 rg BT 478.25 627.60 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 615.60 Td (announcement of the Brexit vote caused significant volatility in global stock markets and currency exchange rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 603.60 Td (fluctuations that resulted in the strengthening of the U.S. dollar against foreign currencies in which we conduct business. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.60 Td (The strengthening of the U.S. dollar relative to other currencies such as the Euro may adversely af) Tj ET Q q 0 0 0 rg BT 441.96 591.60 Td (fect our results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 579.60 Td (operations. In addition, the uncertainty caused by the Brexit vote and the notice of departure may:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 555.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 555.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 129.90 555.10 Td (fect European and worldwide economic and market conditions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 543.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 543.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 129.90 543.10 Td (fect commercial property market rental rates in the United Kingdom and continental Europe;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 531.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 531.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 129.90 531.10 Td (fect commercial property market values in the United Kingdom and continental Europe;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 519.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 519.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 129.90 519.10 Td (fect the availability of financing for commercial properties in the United Kingdom and continental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 507.10 Td (Europe, which could reduce the price for which we are able to sell properties we have acquired in such geographic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 495.10 Td (locations; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 483.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 483.10 Td (create further instability in global financial and foreign exchange markets, including volatility in the value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 471.10 Td (sterling and euro.) 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Tj ET Q q 0 0 0 rg BT 544.50 434.60 Td (31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.50 422.60 Td (2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.00 422.60 Td (35%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.33 422.60 Td ( ) Tj ET Q q 0 0 0 rg BT 101.34 422.60 Td (of ) Tj ET Q q 0 0 0 rg BT 112.67 422.60 Td (our ) Tj ET Q q 0 0 0 rg BT 129.01 422.60 Td (real ) Tj ET Q q 0 0 0 rg BT 147.00 422.60 Td (estate ) Tj ET Q q 0 0 0 rg BT 172.77 422.60 Td (investment ) Tj ET Q q 0 0 0 rg BT 219.65 422.60 Td (portfolio ) Tj ET Q q 0 0 0 rg BT 257.65 422.60 Td (consisted ) Tj ET Q q 0 0 0 rg BT 297.87 422.60 Td (of ) Tj ET Q q 0 0 0 rg BT 309.21 422.60 Td (two ) Tj ET Q q 0 0 0 rg BT 327.21 422.60 Td (properties ) Tj ET Q q 0 0 0 rg BT 370.20 422.60 Td (located ) Tj ET Q q 0 0 0 rg BT 402.08 422.60 Td (in ) Tj ET Q q 0 0 0 rg BT 412.86 422.60 Td (Dublin, ) Tj ET Q q 0 0 0 rg BT 446.14 422.60 Td (Ireland ) Tj ET Q q 0 0 0 rg BT 477.46 422.60 Td (and ) Tj ET Q q 0 0 0 rg BT 494.91 422.60 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0 0 0 rg BT 518.12 410.60 Td (economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.50 398.60 Td (conditions ) Tj ET Q q 0 0 0 rg BT 98.68 398.60 Td (could ) Tj ET Q q 0 0 0 rg BT 123.42 398.60 Td (negatively ) Tj ET Q q 0 0 0 rg BT 167.59 398.60 Td (impact ) Tj ET Q q 0 0 0 rg BT 197.32 398.60 Td (commercial ) Tj ET Q q 0 0 0 rg BT 247.03 398.60 Td (real ) Tj ET Q q 0 0 0 rg BT 264.54 398.60 Td (estate ) Tj ET Q q 0 0 0 rg BT 289.82 398.60 Td (fundamentals ) Tj ET Q q 0 0 0 rg BT 346.21 398.60 Td (and ) Tj ET Q q 0 0 0 rg BT 363.17 398.60 Td (result ) Tj ET Q q 0 0 0 rg BT 387.90 398.60 Td (in ) Tj ET Q q 0 0 0 rg BT 398.20 398.60 Td (lower ) Tj ET Q q 0 0 0 rg BT 423.49 398.60 Td (occupancy) Tj ET Q q 0 0 0 rg BT 465.59 398.60 Td (, ) Tj ET Q q 0 0 0 rg BT 470.61 398.60 Td (lower ) Tj ET Q q 0 0 0 rg BT 495.90 398.60 Td (rental ) Tj ET Q q 0 0 0 rg BT 521.18 398.60 Td (rates ) Tj ET Q q 0 0 0 rg BT 542.58 398.60 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.50 386.60 Td 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Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 362.60 Td (Inflation in foreign countries, along with government measures to curb inflation, may have an adverse ef) Tj ET Q q 0 0 0 rg BT 500.41 362.60 Td (fect on our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 350.60 Td (investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 326.60 Td (Certain countries have in the past experienced extremely high rates of inflation. Inflation, along with governmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.60 Td (measures to curb inflation, coupled with public speculation about possible future governmental measures to be adopted, has had) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.31 314.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.60 Td (significant negative ef) Tj ET Q q 0 0 0 rg BT 138.17 302.60 Td (fects on these international economies in the past and this could occur again in the future. ) Tj ET Q q 0 0 0 rg BT 500.66 302.60 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.60 Td (introduction of governmental policies to curb inflation can have an adverse ef) Tj ET Q q 0 0 0 rg BT 360.04 290.60 Td (fect on our business. High inflation in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.60 Td (countries in which we purchase real estate or make other investments could increase our expenses and we may not be able to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.60 Td (pass these increased costs on to our tenants.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 242.60 Td (Lack of compliance with the United States Foreign Corrupt Practices ) Tj ET Q q 0 0 0 rg BT 354.91 242.60 Td (Act, or FCP) Tj ET Q q 0 0 0 rg BT 403.89 242.60 Td (A, could subject us to penalties and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 230.60 Td (other adverse consequences.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 206.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 206.60 Td (e are subject to the FCP) Tj ET Q q 0 0 0 rg BT 176.48 206.60 Td (A, which generally prohibits United States companies from engaging in bribery or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.60 Td (prohibited payments to foreign of) Tj ET Q q 0 0 0 rg BT 183.73 194.60 Td (ficials for the purpose of obtaining or retaining business. Foreign companies, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.60 Td (potential competitors, are not subject to these prohibitions. Fraudulent practices, including corruption, extortion, bribery) Tj ET Q q 0 0 0 rg BT 531.79 182.60 Td (, pay-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.60 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 170.60 Td (fs, theft and others, occur from time-to-time in countries in which we may do business. If people acting on our behalf or at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.60 Td (our request are found to have engaged in such practices, severe penalties and other consequences could be imposed on us that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.60 Td (may have a material adverse ef) Tj ET Q q 0 0 0 rg BT 173.42 146.60 Td (fect on our business, results of operations, cash flows and financial condition and our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.60 Td (make distributions to our stockholders and the value of their investment.) Tj ET Q endstream endobj 71 0 obj <> endobj 72 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (33) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (Risks Related to Organizational Structur) Tj ET Q q 0 0 0 rg BT 224.87 742.25 Td (e) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 718.25 Td (Any interest in us will be diluted by the Special OP) Tj ET Q q 0 0 0 rg BT 275.47 718.25 Td ( Units and any other OP) Tj ET Q q 0 0 0 rg BT 375.39 718.25 Td ( Units in the Operating Partnership and any ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (interest in us may be diluted if we issue additional shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 682.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 682.25 Td (e owned a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.17 682.25 Td (99.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.00 682.25 Td ( general partner interest in the Operating Partnership as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.37 682.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.95 682.25 Td (. Hines Global REIT) Tj ET Q q 0 0 0 rg BT 549.03 682.25 Td ( II ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (Associates Limited Partnership owns a less than 0.1% limited partner interest in the Operating Partnership and our ) Tj ET Q q 0 0 0 rg BT 509.40 670.25 Td (Advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (holds the partnership interests designated as Special OP) Tj ET Q q 0 0 0 rg BT 276.58 658.25 Td ( Units in the Operating Partnership, which entitle our ) Tj ET Q q 0 0 0 rg BT 495.42 658.25 Td (Advisor to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (receive a performance participation allocation for so long as the ) Tj ET Q q 0 0 0 rg BT 306.61 646.25 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 345.78 646.25 Td (Agreement is in ef) Tj ET Q q 0 0 0 rg BT 419.74 646.25 Td (fect. Payments with respect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (these interests will reduce the amount of distributions that would otherwise be payable to our stockholders in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 610.25 Td (Stockholders do not have preemptive rights to acquire any shares issued by us in the future. ) Tj ET Q q 0 0 0 rg BT 444.34 610.25 Td (Therefore, investors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (purchasing our common shares in the Follow-On Of) Tj ET Q q 0 0 0 rg BT 258.45 598.25 Td (fering may experience dilution of their equity investment if we:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 574.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 574.25 Td (sell shares in the Follow-On Of) Tj ET Q q 0 0 0 rg BT 210.73 574.25 Td (fering or sell additional shares in the future, including those issued pursuant to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 562.25 Td (distribution reinvestment plan;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 550.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 550.25 Td (sell securities that are convertible into shares, such as OP) Tj ET Q q 0 0 0 rg BT 313.55 550.25 Td ( Units;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 538.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 538.25 Td (at the option of our ) Tj ET Q q 0 0 0 rg BT 163.70 538.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 195.52 538.25 Td (, issue OP) Tj ET Q q 0 0 0 rg BT 235.43 538.25 Td ( Units to pay for certain fees;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 526.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 526.25 Td (issue OP) Tj ET Q q 0 0 0 rg BT 120.01 526.25 Td ( Units or common shares to our ) Tj ET Q q 0 0 0 rg BT 248.05 526.25 Td (Advisor or af) Tj ET Q q 0 0 0 rg BT 301.19 526.25 Td (filiates in exchange for advances or deferrals of fees;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 514.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 514.25 Td (issue shares in a private of) Tj ET Q q 0 0 0 rg BT 190.72 514.25 Td (fering; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 502.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 502.25 Td (issue shares to sellers of properties acquired by us in connection with an exchange of partnership units from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 490.25 Td (Operating Partnership.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 466.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 466.25 Td (e have issued shares of common stock as dividends and may issue preferred shares or separate classes or series of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (common shares, which issuance could adversely af) Tj ET Q q 0 0 0 rg BT 259.05 454.25 Td (fect the holders of our common shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 430.25 Td (Holders of our common stock do not have preemptive rights to any shares issued by us in the future. ) Tj ET Q q 0 0 0 rg BT 479.63 430.25 Td (W) Tj ET Q q 0 0 0 rg BT 488.67 430.25 Td (ith the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (authorization of our board of directors, we declared special daily stock dividends for the period from October 1, 2014 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (June 30, 2015, which may dilute the value of our shares. In addition, we may issue, without stockholder approval, preferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (shares or a class or series of common shares with rights that could adversely af) Tj ET Q q 0 0 0 rg BT 364.78 394.25 Td (fect the holders of our common shares. Upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (the af) Tj ET Q q 0 0 0 rg BT 71.80 382.25 Td (firmative vote of a majority of our directors \(including, in the case of preferred shares, a majority of our independent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (directors\), our charter authorizes our board of directors \(without any further action by our stockholders\) to issue preferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (shares or common shares in one or more classes or series, and to fix the voting rights \(subject to certain limitations\), liquidation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (preferences, distribution rates, conversion rights, redemption rights and terms, including sinking fund provisions, and certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (other rights and preferences with respect to such classes or series of shares. If we ever create and issue preferred shares with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (distribution preference over common shares, payment of any distribution preferences of outstanding preferred shares would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (reduce the amount of funds available for the payment of distributions on the common shares. Further) Tj ET Q q 0 0 0 rg BT 455.38 310.25 Td (, holders of preferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (shares are normally entitled to receive a preference payment in the event we liquidate, dissolve or wind up before any payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (is made to the common stockholders, likely reducing the amount common stockholders would otherwise receive upon such an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (occurrence. ) Tj ET Q q 0 0 0 rg BT 100.67 274.25 Td (W) Tj ET Q q 0 0 0 rg BT 109.31 274.25 Td (e could also designate and issue shares in a class or series of common shares with similar rights. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (under certain circumstances, the issuance of preferred shares or a separate class or series of common shares may render more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 250.25 Td (ficult or tend to discourage:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 226.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 226.25 Td (a mer) Tj ET Q q 0 0 0 rg BT 107.80 226.25 Td (ger) Tj ET Q q 0 0 0 rg BT 120.17 226.25 Td (, tender of) Tj ET Q q 0 0 0 rg BT 160.81 226.25 Td (fer or proxy contest;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 214.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 214.25 Td (the assumption of control by a holder of a lar) Tj ET Q q 0 0 0 rg BT 265.55 214.25 Td (ge block of our securities; and/or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 202.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 202.25 Td (the removal of incumbent management.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 178.25 Td (Our board of directors determines our major policies and operations which increases the uncertainties faced by our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 142.25 Td (Our board of directors determines our major policies, including our policies regarding acquisitions, dispositions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (financing, growth, debt capitalization, REIT) Tj ET Q q 0 0 0 rg BT 226.21 130.25 Td ( qualification, redemptions and distributions. Our board of directors may amend or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (revise these and other policies without a vote of the stockholders. Under the Maryland General Corporation Law and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (charter) Tj ET Q q 0 0 0 rg BT 76.85 106.25 Td (, our stockholders have a right to vote only on limited matters. Our board of directors) Tj ET Q q 0 0 0 rg BT 422.69 106.25 Td ( broad discretion in setting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (policies and the inability of our stockholders to exert control over those policies increases the uncertainty and risks they face, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (especially if our board of directors and our stockholders disagree as to what course of action is in the best interests of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (stockholders.) Tj ET Q endstream endobj 73 0 obj <> endobj 74 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (34) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (The ownership limit in our charter may discourage a takeover attempt.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 718.25 Td (Our charter provides that no holder of shares, other than any person to whom our board of directors grants an exemption, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (may directly or indirectly own more than 9.9% of the number or value, whichever is more restrictive, of the aggregate of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (outstanding shares or more than 9.9% of the number or value, whichever is more restrictive, of the outstanding shares of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (class or series of our outstanding securities. ) Tj ET Q q 0 0 0 rg BT 228.45 682.25 Td (This ownership limit may deter tender of) Tj ET Q q 0 0 0 rg BT 392.11 682.25 Td (fers for our common shares, which of) Tj ET Q q 0 0 0 rg BT 542.17 682.25 Td (fers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (may be attractive to our stockholders, and thus may limit the opportunity for stockholders to receive a premium for their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (common shares that might otherwise exist if an investor attempted to assemble a block of common shares in excess of 9.9% of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (the number or value, whichever is more restrictive, of the aggregate of our outstanding shares, or 9.9% in number or value, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (whichever is more restrictive, of the outstanding common shares or otherwise to ef) Tj ET Q q 0 0 0 rg BT 380.61 634.25 Td (fect a change of control in us.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 610.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 610.25 Td (e will not be af) Tj ET Q q 0 0 0 rg BT 136.02 610.25 Td (forded the protection of the Maryland General Corporation Law relating to business combinations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 586.25 Td (Provisions of the Maryland General Corporation Law prohibit business combinations, unless prior approval of the board ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (of directors is obtained before the person seeking the combination became an interested stockholder) Tj ET Q q 0 0 0 rg BT 448.68 574.25 Td (, with:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 550.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 550.25 Td (any person who beneficially owns 10% or more of the voting power of our outstanding voting shares \(an interested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 538.25 Td (stockholder\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 526.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 526.25 Td (any of our af) Tj ET Q q 0 0 0 rg BT 136.29 526.25 Td (filiates or associates who, at any time within the two-year period prior to the date in question, was the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 514.25 Td (beneficial owner of 10% or more of the voting power of our then outstanding shares \(also an interested stockholder\); ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 502.25 Td (or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 490.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 490.25 Td (an af) Tj ET Q q 0 0 0 rg BT 104.63 490.25 Td (filiate of an interested stockholder) Tj ET Q q 0 0 0 rg BT 240.69 490.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 466.25 Td (These prohibitions are intended to prevent a change of control by interested stockholders who do not have the support of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (our board of directors. Because our charter contains limitations on ownership of more than 9.9% of our common shares, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (board of directors has adopted a resolution presently opting out of the business combinations statute. ) Tj ET Q q 0 0 0 rg BT 456.74 442.25 Td (Therefore, we will not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 430.25 Td (forded the protections of this statute and, accordingly) Tj ET Q q 0 0 0 rg BT 269.71 430.25 Td (, there is no guarantee that the ownership limitations in our charter will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (provide the same measure of protection as the business combinations statute and prevent an undesired change of control by an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (interested stockholder) Tj ET Q q 0 0 0 rg BT 136.98 406.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 382.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 382.25 Td (e are not registered as an investment company under the Investment Company ) Tj ET Q q 0 0 0 rg BT 400.28 382.25 Td (Act of 1940, as amended, or the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (Investment Company ) Tj ET Q q 0 0 0 rg BT 139.13 370.25 Td (Act, and therefore we will not be subject to the requirements imposed on an investment company by ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (the Investment Company ) Tj ET Q q 0 0 0 rg BT 154.41 358.25 Td (Act which may limit or otherwise af) Tj ET Q q 0 0 0 rg BT 300.91 358.25 Td (fect our investment choices.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 334.25 Td (Hines Global, the Operating Partnership, and our subsidiaries will conduct our businesses so that none of such entities are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (required to register as investment companies under the Investment Company ) Tj ET Q q 0 0 0 rg BT 367.19 322.25 Td (Act. ) Tj ET Q q 0 0 0 rg BT 388.94 322.25 Td (The operation of a business in a manner so ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (as not to be subject to regulation as an investment company requires an analysis of and compliance with complex laws, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (regulations and SEC staf) Tj ET Q q 0 0 0 rg BT 148.47 298.25 Td (f interpretations, not all of which are summarized herein. ) Tj ET Q q 0 0 0 rg BT 380.61 298.25 Td (Although we could modify our business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (methods at any time, at the present time we expect that the focus of our activities will involve investments in real estate, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (buildings, and other assets that can be referred to as sticks and bricks and therefore we will not be an investment company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (under Section3\(a\)\(1\)\(A\) of the Investment Company ) Tj ET Q q 0 0 0 rg BT 264.72 262.25 Td (Act. ) Tj ET Q q 0 0 0 rg BT 286.48 262.25 Td (W) Tj ET Q q 0 0 0 rg BT 295.12 262.25 Td (e may invest in other real estate investments and will otherwise be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (considered to be in the real estate business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 226.25 Td (Companies subject to the Investment Company ) Tj ET Q q 0 0 0 rg BT 264.58 226.25 Td (Act are required to comply with a variety of substantive requirements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (such as requirements relating to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 190.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 190.25 Td (limitations on the capital structure of the entity;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 178.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 178.25 Td (restrictions on certain investments;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 166.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 166.25 Td (prohibitions on transactions with af) Tj ET Q q 0 0 0 rg BT 226.56 166.25 Td (filiated entities; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 154.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 154.25 Td (public reporting disclosures, record keeping, voting procedures, proxy disclosure and similar corporate governance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 142.25 Td (rules and regulations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 118.25 Td (These and other requirements are intended to provide benefits and/or protections to security holders of investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (companies. Because we and our subsidiaries do not expect to be subject to these requirements, our stockholders will not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (entitled to these benefits or protections. It is our policy to operate in a manner that will not require us to register as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (investment company) Tj ET Q q 0 0 0 rg BT 131.89 82.25 Td (, and we do not expect or intend to register as an investment company under the Investment Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (Act.) Tj ET Q endstream endobj 75 0 obj <> endobj 76 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 742.10 Td (e do not expect that we, the Operating Partnership, or other subsidiaries will be an investment company because we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (intend to ensure that holdings of investment securities by each such entity will not exceed 40% of the total assets of that entity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (and that no such entity holds itself out as being engaged primarily in the business of investing in securities. If an entity were to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (hold investment securities having a value exceeding 40% of the value of the entity) Tj ET Q q 0 0 0 rg BT 381.90 706.10 Td (s total assets, and no other exclusion from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (registration was available, that entity might be required to register as an investment company) Tj ET Q q 0 0 0 rg BT 420.96 694.10 Td (. In order to avoid such a result, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (we, the Operating Partnership, or a subsidiary may be unable to sell assets we would otherwise want to sell or may need to sell ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (assets we would otherwise wish to retain. In addition, we may also have to for) Tj ET Q q 0 0 0 rg BT 364.52 670.10 Td (go opportunities to acquire certain investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (or interests in companies or entities that we would otherwise want to acquire, or acquire assets we might otherwise not select ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (for purchase.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 622.10 Td (If Hines Global, the Operating Partnership or any subsidiary owns assets that qualify as investment securities and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (value of such assets exceeds 40% of the value of its total assets, the entity would be deemed to be an investment company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (absent another exclusion from the Investment Company ) Tj ET Q q 0 0 0 rg BT 275.28 598.10 Td (Act. Certain of the subsidiaries that we may form in the future could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (seek to rely upon the exclusion provided by Section3\(c\)\(5\)\(C\) of that ) Tj ET Q q 0 0 0 rg BT 330.54 586.10 Td (Act, which is available for) Tj ET Q q 0 0 0 rg BT 435.94 586.10 Td (, among other things, entities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (primarily engaged in the business of purchasing or otherwise acquiring mortgages and other liens on and interests in real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (estate. ) Tj ET Q q 0 0 0 rg BT 84.02 562.10 Td (This exclusion, as interpreted by the staf) Tj ET Q q 0 0 0 rg BT 245.74 562.10 Td (f of the SEC, generally requires that at least 55% of an entity) Tj ET Q q 0 0 0 rg BT 492.05 562.10 Td (s portfolio be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (comprised of qualifying interests and the remaining 45% of the entity) Tj ET Q q 0 0 0 rg BT 330.54 550.10 Td (s portfolio be comprised primarily of real estate-type ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (interests \(as such terms have been interpreted by the staf) Tj ET Q q 0 0 0 rg BT 275.07 538.10 Td (f of the SEC\). SEC staf) Tj ET Q q 0 0 0 rg BT 368.22 538.10 Td (f no-action letters have indicated that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (foregoing real estate-type interests test will be met if at least 25% of such entity) Tj ET Q q 0 0 0 rg BT 371.07 526.10 Td (s assets are invested in real estate-type ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (interests, which threshold is subject to reduction to the extent that the entity invested more than 55% of its total assets in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (qualifying interests, and no more than 20% of such entity) Tj ET Q q 0 0 0 rg BT 281.67 502.10 Td (s total assets are invested in miscellaneous investments. Qualifying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (interests for this purpose include actual interests in real estate, certain mortgage loans and other assets as interpreted in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (manner consistent with SEC staf) Tj ET Q q 0 0 0 rg BT 179.86 478.10 Td (f guidance. ) Tj ET Q q 0 0 0 rg BT 229.10 478.10 Td (W) Tj ET Q q 0 0 0 rg BT 237.74 478.10 Td (e intend to treat the following as real estate-type interests: non-agency RMBS; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (CMBS, debt and equity securities of companies primarily engaged in real estate businesses; agency partial pool certificates and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (securities issued by pass-through entities of which substantially all of the assets consist of qualifying interests; and/or real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (estate-related assets. Due to the factual nature of this test, we, the Operating Partnership, or a subsidiary may be unable to sell ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (assets we would otherwise want to sell or may need to sell assets we would otherwise wish to retain, if we deem it necessary to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (remain in compliance with the foregoing standards. In addition, we may have to for) Tj ET Q q 0 0 0 rg BT 385.89 418.10 Td (go opportunities to acquire certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (investments or interests in companies or entities that we would otherwise want to acquire, or acquire assets we might otherwise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (not select for purchase, if we deem it necessary to remain in compliance with the foregoing standards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 370.10 Td (In addition, we, the Operating Partnership and/or our subsidiaries may rely upon other exclusions, including the exclusion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (provided by Section3\(c\)\(6\) of the Investment Company ) Tj ET Q q 0 0 0 rg BT 276.12 358.10 Td (Act \(which excludes, among other things, parent entities whose ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (primary business is conducted through majority-owned subsidiaries relying upon the exclusion provided by Section3\(c\)\(5\)\(C\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (\(discussed above\)\), from the definition of an investment company and the registration requirements under the Investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (Company ) Tj ET Q q 0 0 0 rg BT 90.33 322.10 Td (Act.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 298.10 Td (There can be no assurance that the laws and regulations governing the Investment Company ) Tj ET Q q 0 0 0 rg BT 443.94 298.10 Td (Act status of REIT) Tj ET Q q 0 0 0 rg BT 518.51 298.10 Td (s \(and/or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (their subsidiaries\), including actions by the SEC or its staf) Tj ET Q q 0 0 0 rg BT 282.06 286.10 Td (f providing more specific or dif) Tj ET Q q 0 0 0 rg BT 407.68 286.10 Td (ferent guidance regarding these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (exclusions, will not change in a manner that adversely af) Tj ET Q q 0 0 0 rg BT 276.47 274.10 Td (fects our operations. For example, on ) Tj ET Q q 0 0 0 rg BT 430.04 274.10 Td (August31, 201) Tj ET Q q 0 0 0 rg BT 491.06 274.10 Td (1, the SEC issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (a concept release requesting comments regarding a number of matters relating to the exclusion provided by Section3\(c\)\(5\)\(C\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (of the Investment Company ) Tj ET Q q 0 0 0 rg BT 162.82 250.10 Td (Act, including the nature of assets that qualify for purposes of the exclusion and whether mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (REIT) Tj ET Q q 0 0 0 rg BT 71.02 238.10 Td (s should be regulated in a manner similar to investment companies. ) Tj ET Q q 0 0 0 rg BT 344.94 238.10 Td (T) Tj ET Q q 0 0 0 rg BT 350.35 238.10 Td (o the extent that the SEC or the SEC staf) Tj ET Q q 0 0 0 rg BT 513.20 238.10 Td (f provides ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (more specific guidance regarding any of the matters bearing upon the exclusions discussed above or other exclusions from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (definition of an investment company under the Investment Company ) Tj ET Q q 0 0 0 rg BT 326.94 214.10 Td (Act upon which we may rely) Tj ET Q q 0 0 0 rg BT 442.09 214.10 Td (, we may be required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (change the way we conduct our business or adjust our strategy accordingly) Tj ET Q q 0 0 0 rg BT 348.48 202.10 Td (. ) Tj ET Q q 0 0 0 rg BT 355.43 202.10 Td (Any additional guidance from the SEC staf) Tj ET Q q 0 0 0 rg BT 527.99 202.10 Td (f could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (provide additional flexibility to us, or it could further inhibit our ability to pursue the strategies we have chosen. If we meet the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (definition of an investment company under the Investment Company ) Tj ET Q q 0 0 0 rg BT 326.94 178.10 Td (Act and we fail to qualify for an exclusion therefrom, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (ability to use leverage and other business strategies would be substantially reduced. Our business will be materially and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 97.90 154.10 Td (fected if we fail to qualify for an exclusion from regulation under the Investment Company ) Tj ET Q q 0 0 0 rg BT 464.18 154.10 Td (Act.) Tj ET Q endstream endobj 77 0 obj <> endobj 78 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (36) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (If Hines Global or the Operating Partnership is required to register as an investment company under the Investment ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (Company ) Tj ET Q q 0 0 0 rg BT 91.08 730.25 Td (Act, the additional expenses and operational limitations associated with such registration may reduce our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 718.25 Td (stockholders) Tj ET Q q 0 0 0 rg BT 103.76 718.25 Td ( investment return or impair our ability to conduct our business as planned.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 694.25 Td (If we become an investment company or are otherwise required to register as an investment company) Tj ET Q q 0 0 0 rg BT 478.54 694.25 Td (, we might be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (required to revise some of our current policies, or substantially restructure our business, to comply with the Investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (Company ) Tj ET Q q 0 0 0 rg BT 90.33 670.25 Td (Act. ) Tj ET Q q 0 0 0 rg BT 112.09 670.25 Td (This would likely require us to incur the expense and delay of holding a stockholder meeting to vote on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (proposals for such changes. Further) Tj ET Q q 0 0 0 rg BT 194.07 658.25 Td (, if we were required to register as an investment company) Tj ET Q q 0 0 0 rg BT 427.50 658.25 Td (, but failed to do so, we would be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (prohibited from engaging in our business, criminal and civil actions could be brought against us, some of our contracts might ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (be unenforceable, unless a court were to direct enforcement, and a court could appoint a receiver to take control of us and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (liquidate our business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 598.25 Td (If we internalize our management functions, we could incur adverse ef) Tj ET Q q 0 0 0 rg BT 358.72 598.25 Td (fects on our business and financial condition, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (including significant costs associated with becoming and being self-managed and the percentage of our outstanding ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (common stock owned by our stockholders could be reduced.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 550.25 Td (If we seek to list our shares on an exchange as a way of providing our stockholders with a liquidity event, we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (consider internalizing the functions performed for us by our ) Tj ET Q q 0 0 0 rg BT 290.82 538.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 322.49 538.25 Td (. ) Tj ET Q q 0 0 0 rg BT 329.44 538.25 Td (An internalization could take many forms, for example, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (we may hire our own group of executives and other employees or we may acquire our ) Tj ET Q q 0 0 0 rg BT 395.50 526.25 Td (Advisor or its respective assets including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (its existing workforce. ) Tj ET Q q 0 0 0 rg BT 141.15 514.25 Td (Any internalization could result in significant payments, including in the form of our stock, to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (owners of our ) Tj ET Q q 0 0 0 rg BT 106.99 502.25 Td (Advisor as compensation, which could reduce the percentage ownership of our then existing stockholders and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (concentrate ownership in Hines. In addition, there is no assurance that internalizing our management functions will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (beneficial to us and our stockholders. For example, we may not realize the perceived benefits because of: \(i\)the costs of being ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (self-managed; \(ii\)our inability to ef) Tj ET Q q 0 0 0 rg BT 192.88 466.25 Td (fectively integrate a new staf) Tj ET Q q 0 0 0 rg BT 308.20 466.25 Td (f of managers and employees; or \(iii\)our inability to properly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (replicate the services provided previously by our ) Tj ET Q q 0 0 0 rg BT 246.38 454.25 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 311.47 454.25 Td (filiates. ) Tj ET Q q 0 0 0 rg BT 345.63 454.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 395.54 454.25 Td (, internalization transactions have also, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (some cases, been the subject of litigation and even if these claims are without merit, we could be forced to spend significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (amounts of money defending claims which would reduce the amount of funds available for us to invest in real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (investments or to pay distributions. In connection with any such internalization transaction, a special committee consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (our independent directors will be appointed to evaluate the transaction and to determine whether a fairness opinion should be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (obtained.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (Risks Related to Potential Conflicts of Inter) Tj ET Q q 0 0 0 rg BT 235.41 370.25 Td (est) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 346.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 346.25 Td (e compete with af) Tj ET Q q 0 0 0 rg BT 147.40 346.25 Td (filiates of Hines for real estate investment opportunities and some of these af) Tj ET Q q 0 0 0 rg BT 462.76 346.25 Td (filiates have ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (preferential rights to accept or reject certain investment opportunities in advance of our right to accept or reject such ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (opportunities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 298.25 Td (Hines has existing real estate joint ventures, funds and programs, which we collectively refer to as real estate investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (vehicles, with investment objectives and strategies similar to ours, including Hines Global REIT) Tj ET Q q 0 0 0 rg BT 434.24 286.25 Td (. Because we compete with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (these real estate investment vehicles for investment opportunities, Hines faces conflicts of interest in allocating investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (opportunities between us and these other real estate investment vehicles. ) Tj ET Q q 0 0 0 rg BT 344.23 262.25 Td (W) Tj ET Q q 0 0 0 rg BT 352.86 262.25 Td (e have limited rights to specific investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (opportunities located by Hines. Some of these entities have a priority right over other Hines real estate investment vehicles, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (including us, to accept investment opportunities that meet certain defined investment criteria. Because we and other Hines real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (estate investment vehicles rely on Hines to present us with investment opportunities, these rights will reduce our investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (opportunities. ) Tj ET Q q 0 0 0 rg BT 109.59 214.25 Td (W) Tj ET Q q 0 0 0 rg BT 118.23 214.25 Td (e therefore may not be able to invest in, or we may only invest indirectly with or through another Hines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 202.25 Td (filiated real estate investment vehicle in, certain investments we otherwise would make directly) Tj ET Q q 0 0 0 rg BT 438.25 202.25 Td (. ) Tj ET Q q 0 0 0 rg BT 445.57 202.25 Td (T) Tj ET Q q 0 0 0 rg BT 450.98 202.25 Td (o the extent we invest in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (opportunities with another real estate investment vehicles af) Tj ET Q q 0 0 0 rg BT 289.52 190.25 Td (filiated with Hines, we may not have the control over such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (investment we would otherwise have if we owned all of or otherwise controlled such assets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 154.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 154.25 Td (e do not have priority rights to specific investment opportunities located by Hines. Our right to participate in Hines) Tj ET Q q 0 0 0 rg BT 546.84 154.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (investment allocation process will terminate if we are no longer advised by an af) Tj ET Q q 0 0 0 rg BT 371.71 142.25 Td (filiate of Hines. For investment opportunities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (not covered by this allocation procedure, Hines will decide in its discretion, subject to any priority rights it grants or has granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (to other Hines-managed or otherwise af) Tj ET Q q 0 0 0 rg BT 207.87 118.25 Td (filiated real estate investment vehicles, how to allocate such opportunities among us, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (Hines and other real estate investment vehicles. Because we do not have a right to accept or reject any investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (opportunities before Hines or one or more Hines real estate investment vehicles have the right to accept such opportunities, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (are otherwise subject to Hines) Tj ET Q q 0 0 0 rg BT 172.61 82.25 Td ( discretion as to the investment opportunities we will receive, we may not be able to review and/) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (or invest in opportunities which we would otherwise pursue if we were the only real estate investment vehicle sponsored by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (Hines or had a priority right in regard to such investments. ) Tj ET Q q 0 0 0 rg BT 288.44 58.25 Td (W) Tj ET Q q 0 0 0 rg BT 297.07 58.25 Td (e are subject to the risk that, as a result of the conflicts of interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (between Hines, us and other real estate investment vehicles sponsored or managed by or af) Tj ET Q q 0 0 0 rg BT 412.81 46.25 Td (filiated with Hines, and the priority ) Tj ET Q endstream endobj 79 0 obj <> endobj 80 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (rights Hines has granted or may in the future grant to any such other real estate investment vehicles, we may not be of) Tj ET Q q 0 0 0 rg BT 521.12 742.10 Td (fered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (favorable investment opportunities located by Hines when it would otherwise be in our best interest to accept such investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (opportunities, and our business, results of operations, cash flows and financial condition and our ability to make distributions to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (our stockholders and the value of their investment may be adversely impacted thereby) Tj ET Q q 0 0 0 rg BT 393.18 706.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 682.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 682.10 Td (e may compete with other investment vehicles af) Tj ET Q q 0 0 0 rg BT 273.49 682.10 Td (filiated with Hines for tenants.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 658.10 Td (Hines and its af) Tj ET Q q 0 0 0 rg BT 135.80 658.10 Td (filiates are not prohibited from engaging, directly or indirectly) Tj ET Q q 0 0 0 rg BT 384.24 658.10 Td (, in any other business or from possessing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (interests in any other business venture or ventures, including businesses and ventures involved in the acquisition, development, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (ownership, management, leasing or sale of real estate projects. Hines or its af) Tj ET Q q 0 0 0 rg BT 360.88 634.10 Td (filiates own and/or manage properties in most, if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (not all, geographical areas in which we expect to acquire interests in real estate assets. ) Tj ET Q q 0 0 0 rg BT 398.63 622.10 Td (Therefore, our properties may compete ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (for tenants with other properties owned and/or managed by Hines and its af) Tj ET Q q 0 0 0 rg BT 350.90 610.10 Td (filiates, including Hines Global REIT) Tj ET Q q 0 0 0 rg BT 500.41 610.10 Td (. Hines may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (face conflicts of interest when evaluating tenant opportunities for our properties and other properties owned and/or managed by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (Hines and its af) Tj ET Q q 0 0 0 rg BT 111.80 586.10 Td (filiates and these conflicts of interest may have a negative impact on our ability to attract and retain tenants.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 562.10 Td (Employees of our ) Tj ET Q q 0 0 0 rg BT 141.85 562.10 Td (Advisor and Hines will face conflicts of interest relating to time management and allocation of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (resources and investment opportunities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 526.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 526.10 Td (e do not have employees. Pursuant to a contract with Hines, we rely on employees of Hines and its af) Tj ET Q q 0 0 0 rg BT 489.63 526.10 Td (filiates to manage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (and operate our business and they are contractually bound to devote the time and attention reasonably necessary to conduct our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (business in an appropriate manner) Tj ET Q q 0 0 0 rg BT 185.57 502.10 Td (. Our of) Tj ET Q q 0 0 0 rg BT 219.28 502.10 Td (ficers and the of) Tj ET Q q 0 0 0 rg BT 283.79 502.10 Td (ficers and employees of our ) Tj ET Q q 0 0 0 rg BT 396.80 502.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 428.63 502.10 Td (, Hines and its af) Tj ET Q q 0 0 0 rg BT 495.93 502.10 Td (filiates hold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (similar positions in numerous entities and they may from time to time allocate more of their time to service the needs of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (entities than they allocate to servicing our needs. Hines is not restricted from acquiring, developing, operating, managing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (leasing or selling real estate through entities other than us and Hines will continue to be actively involved in real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (operations and activities other than our operations and activities. Hines currently controls and/or operates other entities that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (own properties in many of the markets in which we will seek to invest. Hines spends a material amount of time managing these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (properties and other assets unrelated to our business. ) Tj ET Q q 0 0 0 rg BT 264.82 430.10 Td (W) Tj ET Q q 0 0 0 rg BT 273.46 430.10 Td (e lack the ability to manage it without the time and attention of Hines) Tj ET Q q 0 0 0 rg BT 553.47 430.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (employees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 394.10 Td (Hines and its af) Tj ET Q q 0 0 0 rg BT 135.80 394.10 Td (filiates are general partners and sponsors of other real estate investment vehicles having investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (objectives and legal and financial obligations similar to ours, including Hines Global REIT) Tj ET Q q 0 0 0 rg BT 412.84 382.10 Td (. Because Hines and its af) Tj ET Q q 0 0 0 rg BT 518.46 382.10 Td (filiates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (have interests in other real estate investment vehicles and also engage in other business activities, they may have conflicts of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (interest in allocating their time and resources among our business and these other activities. Our of) Tj ET Q q 0 0 0 rg BT 446.71 358.10 Td (ficers and directors, as well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (as those of our ) Tj ET Q q 0 0 0 rg BT 110.05 346.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 141.87 346.10 Td (, own equity interests in entities af) Tj ET Q q 0 0 0 rg BT 279.16 346.10 Td (filiated with Hines from which we may buy properties. ) Tj ET Q q 0 0 0 rg BT 503.65 346.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (individuals may make substantial profits in connection with such transactions, which could result in conflicts of interest. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (Likewise, such individuals could make substantial profits as the result of investment opportunities allocated to entities af) Tj ET Q q 0 0 0 rg BT 532.27 322.10 Td (filiated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (with Hines other than us. ) Tj ET Q q 0 0 0 rg BT 154.21 310.10 Td (As a result of these interests, they could pursue transactions that may not be in our best interest.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 286.10 Td (Hines may face conflicts of interest if it sells properties it acquires or develops to us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 262.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 262.10 Td (e may in the future acquire properties from Hines and af) Tj ET Q q 0 0 0 rg BT 306.87 262.10 Td (filiates of Hines. ) Tj ET Q q 0 0 0 rg BT 378.06 262.10 Td (W) Tj ET Q q 0 0 0 rg BT 386.70 262.10 Td (e may acquire properties Hines currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (owns or hereafter acquires from third parties. Hines may also develop properties and then sell the completed properties to us. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (Similarly) Tj ET Q q 0 0 0 rg BT 86.07 238.10 Td (, we may provide development loans to Hines in connection with these developments. Hines, its af) Tj ET Q q 0 0 0 rg BT 482.75 238.10 Td (filiates and its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (employees \(including our of) Tj ET Q q 0 0 0 rg BT 162.35 226.10 Td (ficers and directors\) may make substantial profits in connection with such transactions. ) Tj ET Q q 0 0 0 rg BT 515.40 226.10 Td (W) Tj ET Q q 0 0 0 rg BT 524.04 226.10 Td (e must ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (follow certain procedures when purchasing assets from Hines and its af) Tj ET Q q 0 0 0 rg BT 334.79 214.10 Td (filiates. Hines may owe fiduciary and/or other duties to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (the selling entity in these transactions and conflicts of interest between us and the selling entities could exist in such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (transactions. Because we are relying on Hines, these conflicts could result in transactions based on terms that are less favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (to us than we would receive from a third party) Tj ET Q q 0 0 0 rg BT 234.07 178.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 154.10 Td (Our ) Tj ET Q q 0 0 0 rg BT 86.30 154.10 Td (Advisor faces a conflict of interest because the fees it receives for services performed are based in part on our NA) Tj ET Q q 0 0 0 rg BT 551.05 154.10 Td (V) Tj ET Q q 0 0 0 rg BT 556.43 154.10 Td (, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (which our ) Tj ET Q q 0 0 0 rg BT 93.59 142.10 Td (Advisor is ultimately responsible for determining.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 118.10 Td (Our ) Tj ET Q q 0 0 0 rg BT 91.00 118.10 Td (Advisor is paid an asset management fee for its services based on our NA) Tj ET Q q 0 0 0 rg BT 384.35 118.10 Td (V) Tj ET Q q 0 0 0 rg BT 390.28 118.10 Td (, which is calculated based in part on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (information provided by our ) Tj ET Q q 0 0 0 rg BT 165.04 106.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 196.71 106.10 Td (. In addition, the distributions to be received by our ) Tj ET Q q 0 0 0 rg BT 403.89 106.10 Td (Advisor with respect to its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (performance participation interest in the Operating Partnership will be based in part upon the Operating Partnership) Tj ET Q q 0 0 0 rg BT 514.64 94.10 Td (s net assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (\(which is a component of our NA) Tj ET Q q 0 0 0 rg BT 182.63 82.10 Td (V\). ) Tj ET Q q 0 0 0 rg BT 198.00 82.10 Td (The calculation of our NA) Tj ET Q q 0 0 0 rg BT 302.22 82.10 Td (V) Tj ET Q q 0 0 0 rg BT 309.27 82.10 Td ( includes certain subjective judgments with respect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (estimating, for example, the value of our portfolio and our accrued expenses, net portfolio income and liabilities, and therefore, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (our NA) Tj ET Q q 0 0 0 rg BT 78.48 58.10 Td (V) Tj ET Q q 0 0 0 rg BT 85.53 58.10 Td ( may not correspond to realizable value upon a sale of those assets. Our ) Tj ET Q q 0 0 0 rg BT 373.49 58.10 Td (Advisor may benefit by us retaining ownership ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (of our assets at times when our stockholders may be better served by the sale or disposition of our assets in order to avoid a ) Tj ET Q endstream endobj 81 0 obj <> endobj 82 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (reduction in our NA) Tj ET Q q 0 0 0 rg BT 129.03 742.10 Td (V) Tj ET Q q 0 0 0 rg BT 134.96 742.10 Td (. If our NA) Tj ET Q q 0 0 0 rg BT 178.10 742.10 Td (V) Tj ET Q q 0 0 0 rg BT 185.14 742.10 Td ( is calculated in a way that is not reflective of our actual NA) Tj ET Q q 0 0 0 rg BT 424.60 742.10 Td (V) Tj ET Q q 0 0 0 rg BT 430.53 742.10 Td (, then the purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (shares of our common stock or the price paid for the redemption of your shares of common stock on a given date may not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (accurately reflect the value of our portfolio, and your shares may be worth less than the purchase price or more than the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (redemption price.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 682.10 Td (The ) Tj ET Q q 0 0 0 rg BT 85.74 682.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 117.78 682.10 Td () Tj ET Q q 0 0 0 rg BT 120.37 682.10 Td (s asset management fee and performance participation allocation may not create proper incentives or may ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (induce our ) Tj ET Q q 0 0 0 rg BT 96.36 670.10 Td (Advisor to make certain investments, including speculative investments, that increase the risk of our real estate ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (portfolio.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 634.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 634.10 Td (e pay our ) Tj ET Q q 0 0 0 rg BT 119.79 634.10 Td (Advisor an asset management fee regardless of the performance of our portfolio. Our ) Tj ET Q q 0 0 0 rg BT 462.45 634.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 495.04 634.10 Td () Tj ET Q q 0 0 0 rg BT 497.82 634.10 Td (s entitlement to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (an asset management fee, which is not based upon performance metrics or goals, might reduce its incentive to devote its time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (and ef) Tj ET Q q 0 0 0 rg BT 74.03 610.10 Td (fort to seeking investments that provide attractive risk-adjusted returns for our portfolio. ) Tj ET Q q 0 0 0 rg BT 429.03 610.10 Td (W) Tj ET Q q 0 0 0 rg BT 437.67 610.10 Td (e may be required to pay our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (Advisor an asset management fee in a particular period despite experiencing a net loss or a decline in the value of our portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (during that period. ) Tj ET Q q 0 0 0 rg BT 125.97 586.10 Td (The existence of the 12.5% performance participation interest in our Operating Partnership to which our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (Advisor is entitled, is based on our total distributions plus the change in NA) Tj ET Q q 0 0 0 rg BT 352.06 574.10 Td (V) Tj ET Q q 0 0 0 rg BT 359.10 574.10 Td ( per share, may create an incentive for our ) Tj ET Q q 0 0 0 rg BT 529.58 574.10 Td (Advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (to make riskier or more speculative investments on our behalf than it would otherwise make in the absence of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (performance-based compensation. In addition, the change in NA) Tj ET Q q 0 0 0 rg BT 306.73 550.10 Td (V) Tj ET Q q 0 0 0 rg BT 313.77 550.10 Td ( per share will be based on the value of our investments on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (the applicable measurement dates and not on realized gains or losses. ) Tj ET Q q 0 0 0 rg BT 328.30 538.10 Td (As a result, our ) Tj ET Q q 0 0 0 rg BT 391.35 538.10 Td (Advisor may receive distributions based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (on unrealized gains in certain assets at the time of such distributions and such gains ultimately may not be realized when those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (assets are eventually disposed of. Because the asset management fee and the performance participation interest are based on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (NA) Tj ET Q q 0 0 0 rg BT 62.65 502.10 Td (V) Tj ET Q q 0 0 0 rg BT 68.59 502.10 Td (, our ) Tj ET Q q 0 0 0 rg BT 88.87 502.10 Td (Advisor may also be motivated to accelerate acquisitions in order to increase NA) Tj ET Q q 0 0 0 rg BT 411.91 502.10 Td (V) Tj ET Q q 0 0 0 rg BT 417.84 502.10 Td (, which would increase amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (payable to our ) Tj ET Q q 0 0 0 rg BT 108.65 490.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 140.32 490.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 466.10 Td (Our Dealer Manager may face conflicts of interest caused by compensation arrangements with us, which could result in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (actions that are not in our stockholders) Tj ET Q q 0 0 0 rg BT 213.79 454.10 Td ( best interest.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 430.10 Td (Our Dealer Manager will be paid ongoing distribution and stockholder servicing fees with respect to Class ) Tj ET Q q 0 0 0 rg BT 501.55 430.10 Td (T) Tj ET Q q 0 0 0 rg BT 507.47 430.10 Td ( shares, Class ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (S shares and Class D shares until the earliest to occur of several events, including a listing of our common shares and a mer) Tj ET Q q 0 0 0 rg BT 543.08 418.10 Td (ger ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (or consolidation with or into another entity) Tj ET Q q 0 0 0 rg BT 220.49 406.10 Td (, or the sale or other disposition of all or substantially all of our assets, which may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (incentivize our ) Tj ET Q q 0 0 0 rg BT 111.15 394.10 Td (Advisor not to recommend a listing, sale, mer) Tj ET Q q 0 0 0 rg BT 293.98 394.10 Td (ger or other liquidity event until our Dealer Manager has been paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (all distribution and stockholder servicing fees, because the completion of such transactions would cause the payment of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (fees to our Dealer Manager to cease.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 346.10 Td (Hines may face conflicts of interest in connection with the management of our day-to-day operations and in the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (enforcement of agreements between Hines and its af) Tj ET Q q 0 0 0 rg BT 265.13 334.10 Td (filiates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 310.10 Td (Hines and our ) Tj ET Q q 0 0 0 rg BT 131.55 310.10 Td (Advisor manage our day-to-day operations and properties pursuant to an advisory agreement. ) Tj ET Q q 0 0 0 rg BT 510.14 310.10 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (agreement was not negotiated at arm) Tj ET Q q 0 0 0 rg BT 199.16 298.10 Td (s length and certain fees payable by us under such agreement are paid regardless of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (performance. Hines and its af) Tj ET Q q 0 0 0 rg BT 169.83 286.10 Td (filiates may encounter conflicts of interest with respect to position as to matters relating to this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (agreement. ) Tj ET Q q 0 0 0 rg BT 98.09 274.10 Td (Areas of potential conflict include the computation of fees and reimbursements under such agreements, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (enforcement, renewal and/or termination of the agreements and the priority of payments to third parties as opposed to amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (paid to af) Tj ET Q q 0 0 0 rg BT 87.08 250.10 Td (filiates of Hines. ) Tj ET Q q 0 0 0 rg BT 158.27 250.10 Td (These fees may be higher than fees char) Tj ET Q q 0 0 0 rg BT 318.29 250.10 Td (ged by third parties in an arm) Tj ET Q q 0 0 0 rg BT 438.82 250.10 Td (s-length transaction as a result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (of these conflicts.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 214.10 Td (Certain of our of) Tj ET Q q 0 0 0 rg BT 137.05 214.10 Td (ficers and directors face conflicts of interest relating to the positions they hold with other entities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 190.10 Td (All of our of) Tj ET Q q 0 0 0 rg BT 123.59 190.10 Td (ficers and non-independent directors are also of) Tj ET Q q 0 0 0 rg BT 313.89 190.10 Td (ficers and directors of our ) Tj ET Q q 0 0 0 rg BT 419.13 190.10 Td (Advisor and/or other entities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (controlled by Hines. Some of these entities, including Hines Global REIT) Tj ET Q q 0 0 0 rg BT 346.20 178.10 Td (, may compete with us for investment and leasing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (opportunities. ) Tj ET Q q 0 0 0 rg BT 109.59 166.10 Td (These personnel owe fiduciary duties to these other entities and their security holders and these duties may from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (time to time conflict with the fiduciary duties such individuals owe to us and our stockholders. For example, conflicts of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (interest adversely af) Tj ET Q q 0 0 0 rg BT 129.84 142.10 Td (fecting our investment decisions could arise in decisions or activities related to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 118.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 118.10 Td (the allocation of new investments among us and other entities operated by Hines;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 106.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 106.10 Td (the allocation of time and resources among us and other entities operated by Hines;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 94.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 94.10 Td (the timing and terms of the investment in or sale of an asset;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 82.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 82.10 Td (investments with Hines and af) Tj ET Q q 0 0 0 rg BT 206.01 82.10 Td (filiates of Hines;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 70.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 70.10 Td (the compensation paid to our ) Tj ET Q q 0 0 0 rg BT 203.13 70.10 Td (Advisor; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 58.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 58.10 Td (our relationship with Hines in the management of our properties.) Tj ET Q endstream endobj 83 0 obj <> endobj 84 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 742.10 Td (These conflicts of interest may also be impacted by the fact that such individuals may have compensation structures tied ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (to the performance of such other entities controlled by Hines and these compensation structures may potentially provide for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (greater remuneration in the event an investment opportunity is presented to a Hines af) Tj ET Q q 0 0 0 rg BT 392.82 718.10 Td (filiate rather than us.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 694.10 Td (Our of) Tj ET Q q 0 0 0 rg BT 94.82 694.10 Td (ficers and directors have limited liability) Tj ET Q q 0 0 0 rg BT 260.27 694.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 670.10 Td (Generally) Tj ET Q q 0 0 0 rg BT 112.27 670.10 Td (, we are obligated under our charter to indemnify our of) Tj ET Q q 0 0 0 rg BT 335.07 670.10 Td (ficers and directors against certain liabilities incurred in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (connection with their services. ) Tj ET Q q 0 0 0 rg BT 176.50 658.10 Td (W) Tj ET Q q 0 0 0 rg BT 185.14 658.10 Td (e enter into indemnification agreements with each of our of) Tj ET Q q 0 0 0 rg BT 422.37 658.10 Td (ficers and directors pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (which we generally agree to indemnify our of) Tj ET Q q 0 0 0 rg BT 232.31 646.10 Td (ficers and directors for any such liabilities that they incur) Tj ET Q q 0 0 0 rg BT 460.29 646.10 Td (. ) Tj ET Q q 0 0 0 rg BT 467.61 646.10 Td (These indemnification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (agreements, as well as the indemnification provisions in our charter) Tj ET Q q 0 0 0 rg BT 319.57 634.10 Td (, could limit our ability and the ability of our stockholders to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 622.10 Td (fectively take action against our of) Tj ET Q q 0 0 0 rg BT 195.46 622.10 Td (ficers and directors arising from their service to us. In addition, there could be a potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (reduction in distributions resulting from our payment of premiums associated with insurance or payments of a defense, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (settlement or claim.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 574.10 Td (Our UPREIT structure may result in potential conflicts of interest.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 550.10 Td (Persons holding OP) Tj ET Q q 0 0 0 rg BT 152.58 550.10 Td ( Units have the right to vote on certain amendments to the ) Tj ET Q q 0 0 0 rg BT 386.42 550.10 Td (Agreement of Limited Partnership of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (Operating Partnership, as well as on certain other matters. Persons holding such voting rights may exercise them in a manner ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (that conflicts with the interests of our stockholders. ) Tj ET Q q 0 0 0 rg BT 258.90 526.10 Td (As general partner of the Operating Partnership, we will be obligated to act ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (in a manner that is in the best interest of all partners of the Operating Partnership. Circumstances may arise in the future when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (the interests of limited partners in the Operating Partnership may conflict with the interests of our stockholders.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (Risks Related to ) Tj ET Q q 0 0 0 rg BT 121.26 478.10 Td (T) Tj ET Q q 0 0 0 rg BT 127.01 478.10 Td (axes) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 454.10 Td (If we fail to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 190.20 454.10 Td (, our operations and our ability to pay distributions to our stockholders would be adversely ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (impacted.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 418.10 Td (e believe that we qualify as a REIT) Tj ET Q q 0 0 0 rg BT 222.73 418.10 Td ( under the Code. ) Tj ET Q q 0 0 0 rg BT 293.28 418.10 Td (A) Tj ET Q q 0 0 0 rg BT 299.95 418.10 Td ( REIT) Tj ET Q q 0 0 0 rg BT 324.48 418.10 Td ( generally is not taxed at the corporate level on income that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (it currently distributes to its stockholders. Qualification as a REIT) Tj ET Q q 0 0 0 rg BT 315.65 406.10 Td ( involves the application of highly technical and complex ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (rules for which there are only limited judicial or administrative interpretations. ) Tj ET Q q 0 0 0 rg BT 368.94 394.10 Td (The determination of various factual matters ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (and circumstances not entirely within our control may af) Tj ET Q q 0 0 0 rg BT 275.92 382.10 Td (fect our ability to continue to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 464.84 382.10 Td (. In addition, new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (legislation, regulations, administrative interpretations or court decisions could significantly change the tax laws with respect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (qualification as a REIT) Tj ET Q q 0 0 0 rg BT 142.34 358.10 Td ( or the federal income tax consequences of such qualification.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 334.10 Td (If we were to fail to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 225.76 334.10 Td ( in any taxable year:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 310.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 310.10 Td (we would not be allowed to deduct our distributions to our stockholders when computing our taxable income;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 298.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 298.10 Td (we would be subject to federal income tax \(including any applicable alternative minimum tax\) on our taxable income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 286.10 Td (at regular corporate rates;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 274.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 274.10 Td (we would be disqualified from being taxed as a REIT) Tj ET Q q 0 0 0 rg BT 299.03 274.10 Td ( for the four taxable years following the year during which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 262.10 Td (qualification was lost, unless entitled to relief under certain statutory provisions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 250.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 250.10 Td (our cash available for distribution would be reduced and we would have less cash to distribute to our stockholders; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 238.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 238.10 Td (we might be required to borrow additional funds or sell some of our assets in order to pay corporate tax obligations we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 226.10 Td (may incur as a result of our disqualification.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 202.10 Td (e may be required to defer repatriation of cash from foreign jurisdictions in order to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 496.41 202.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 178.10 Td (Investments in foreign real property may be subject to foreign currency gains and losses. Certain foreign currency gains ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (will generally be excluded from income for purposes of determining our satisfaction of one or both of the REIT) Tj ET Q q 0 0 0 rg BT 495.86 166.10 Td ( gross revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (tests; however) Tj ET Q q 0 0 0 rg BT 106.58 154.10 Td (, under certain circumstances \(for example, if we regularly trade in foreign securities\) such gains will be treated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (as non-qualifying income. ) Tj ET Q q 0 0 0 rg BT 159.02 142.10 Td (T) Tj ET Q q 0 0 0 rg BT 164.43 142.10 Td (o reduce the risk of foreign currency gains adversely af) Tj ET Q q 0 0 0 rg BT 384.98 142.10 Td (fecting our REIT) Tj ET Q q 0 0 0 rg BT 453.11 142.10 Td ( qualification, we may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (required to defer the repatriation of cash from foreign jurisdictions or to employ other structures that could af) Tj ET Q q 0 0 0 rg BT 486.12 130.10 Td (fect the timing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (character or amount of income we receive from our foreign investments. No assurance can be given that we will be able to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (manage our foreign currency gains in a manner that enables us to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 383.37 106.10 Td ( or to avoid U.S. federal income and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (taxes on our income as a result of foreign currency gains.) Tj ET Q endstream endobj 85 0 obj <> endobj 86 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (40) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (If the Operating Partnership is classified as a publicly traded partnership under the Code, our operations and our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (ability to pay distributions to our stockholders could be adversely af) Tj ET Q q 0 0 0 rg BT 326.54 730.25 Td (fected.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 706.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 706.25 Td (e believe that the Operating Partnership will be treated as a partnership, and not as an association or a publicly traded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (partnership for federal income tax purposes. In this regard, the Code generally classifies publicly traded partnerships \(as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (defined in Section7704 of the Code\) as associations taxable as corporations \(rather than as partnerships\), unless substantially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (all of their taxable income consists of specified types of passive income. In order to minimize the risk that the Code would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (classify the Operating Partnership as a publicly traded partnership for tax purposes, we placed certain restrictions on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (transfer and/or repurchase of partnership units in the Operating Partnership. However) Tj ET Q q 0 0 0 rg BT 393.43 646.25 Td (, if the Internal Revenue Service, or IRS, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (successfully determines that the Operating Partnership should be taxed as a corporation, the Operating Partnership would be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (required to pay U.S. federal income tax at corporate rates on its net income, its partners would be treated as stockholders of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (Operating Partnership and distributions to partners would constitute non-deductible distributions in computing the Operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (Partnership) Tj ET Q q 0 0 0 rg BT 97.83 598.25 Td (s taxable income. In addition, we could fail to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 356.74 598.25 Td ( and the imposition of a corporate tax on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (Operating Partnership would reduce the amount of cash available for distribution to our stockholders.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 562.25 Td (Distributions to tax-exempt investors may be classified as unrelated business taxable income.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 538.25 Td (Neither ordinary nor capital gain distributions with respect to our common shares nor gain from the sale of common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (shares should generally constitute unrelated business taxable income to a tax-exempt investor) Tj ET Q q 0 0 0 rg BT 423.01 526.25 Td (. However) Tj ET Q q 0 0 0 rg BT 466.76 526.25 Td (, there are certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (exceptions to this rule. In particular:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 490.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 490.25 Td (part of the income and gain recognized by certain qualified employee pension trusts with respect to our common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 478.25 Td (shares may be treated as unrelated business taxable income if our stock is predominately held by qualified employee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 466.25 Td (pension trusts, we are required to rely on a special look through rule for purposes of meeting the REIT) Tj ET Q q 0 0 0 rg BT 494.53 466.25 Td ( stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 454.25 Td (ownership tests, and we are not operated in such a manner as to otherwise avoid treatment of such income or gain as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 442.25 Td (unrelated business taxable income;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 430.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 430.25 Td (part of the income and gain recognized by a tax exempt investor with respect to our common shares would constitute ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 418.25 Td (unrelated business taxable income if such investor incurs debt in order to acquire the common shares; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 406.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 406.25 Td (part or all of the income or gain recognized with respect to our common shares by social clubs, voluntary employee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 394.25 Td (benefit associations and supplemental unemployment benefit trusts and qualified group legal services plans which are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 382.25 Td (exempt from federal income taxation under Sections 501\(c\)\(7\), \(9\), or \(17\)of the Code may be treated as unrelated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 370.25 Td (business taxable income.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 346.25 Td (Stockholders who participate in the distribution reinvestment plan may realize taxable income without receiving cash ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (distributions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 310.25 Td (If our stockholders participate in the distribution reinvestment plan, they will be required to take into account, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (computing their taxable income, ordinary and capital gain distributions allocable to shares that they own, even though they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (receive no cash because such distributions are reinvested. In addition, the dif) Tj ET Q q 0 0 0 rg BT 358.66 286.25 Td (ference between the public of) Tj ET Q q 0 0 0 rg BT 476.75 286.25 Td (fering price of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (shares and the transaction price paid for shares purchased pursuant to the distribution reinvestment plan may be deemed to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (taxable as income to participants in the plan.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 238.25 Td (Foreign investors may be subject to the Foreign Investment in Real Property T) Tj ET Q q 0 0 0 rg BT 390.47 238.25 Td (ax ) Tj ET Q q 0 0 0 rg BT 402.60 238.25 Td (Act \(FIRPT) Tj ET Q q 0 0 0 rg BT 456.21 238.25 Td (A\) on sale of common ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (shares if we are unable to qualify as a domestically controlled REIT) Tj ET Q q 0 0 0 rg BT 338.30 226.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 202.25 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 202.25 Td ( foreign person disposing of a U.S. real property interest, including shares of a U.S. corporation whose assets consist ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (principally of U.S. real property interests, is generally subject to tax under FIRPT) Tj ET Q q 0 0 0 rg BT 375.01 190.25 Td (A) Tj ET Q q 0 0 0 rg BT 381.68 190.25 Td ( on the gain recognized on the disposition. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (FIRPT) Tj ET Q q 0 0 0 rg BT 75.93 178.25 Td (A) Tj ET Q q 0 0 0 rg BT 82.60 178.25 Td ( does not apply) Tj ET Q q 0 0 0 rg BT 142.78 178.25 Td (, however) Tj ET Q q 0 0 0 rg BT 181.80 178.25 Td (, to the disposition of stock in a REIT) Tj ET Q q 0 0 0 rg BT 331.89 178.25 Td ( if the REIT) Tj ET Q q 0 0 0 rg BT 379.75 178.25 Td ( is domestically controlled. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (FIRPT) Tj ET Q q 0 0 0 rg BT 75.93 166.25 Td (A) Tj ET Q q 0 0 0 rg BT 82.60 166.25 Td ( will apply if we make a distribution that is attributable to gain recognized by us on a disposition of a U.S. real property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (interest, even if we are domestically controlled. ) Tj ET Q q 0 0 0 rg BT 243.88 154.25 Td (A) Tj ET Q q 0 0 0 rg BT 250.54 154.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 275.08 154.25 Td ( is domestically controlled if less than 50% of the REIT) Tj ET Q q 0 0 0 rg BT 509.47 154.25 Td (s capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (stock, by value, has been owned, directly and indirectly) Tj ET Q q 0 0 0 rg BT 271.28 142.25 Td (, by persons who are not U.S. persons during a continuous five-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (period ending on the date of disposition or) Tj ET Q q 0 0 0 rg BT 218.79 130.25 Td (, if shorter) Tj ET Q q 0 0 0 rg BT 259.77 130.25 Td (, during the entire period of the REIT) Tj ET Q q 0 0 0 rg BT 411.95 130.25 Td (s existence.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 106.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 106.25 Td (e cannot assure our stockholders that we will qualify as a domestically controlled REIT) Tj ET Q q 0 0 0 rg BT 439.90 106.25 Td (. If we were to fail to so ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (qualify) Tj ET Q q 0 0 0 rg BT 77.18 94.25 Td (, gains realized by foreign investors other than qualified foreign pension plans on a sale of our common shares would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (be subject to tax under FIRPT) Tj ET Q q 0 0 0 rg BT 168.96 82.25 Td (A) Tj ET Q q 0 0 0 rg BT 175.63 82.25 Td ( \(unless our common shares were traded on an established securities market and the foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (investor did not at any time during a specified testing period directly or indirectly own more than 10% of the value of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (outstanding common shares\). Our common shares are not currently traded on an established securities market.) Tj ET Q endstream endobj 87 0 obj <> endobj 88 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (41) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (In certain circumstances, we may be subject to federal, state, and local or foreign income or other taxes, which would ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (reduce our cash available to pay distributions to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 706.25 Td (Even if we qualify and maintain our status as a REIT) Tj ET Q q 0 0 0 rg BT 284.92 706.25 Td (, we may be subject to certain federal, state, local or foreign, income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (or other taxes. For example, if we have net income from a prohibited transaction, such income will be subject to a 100% tax. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 682.25 Td (e may not be able to make suf) Tj ET Q q 0 0 0 rg BT 177.64 682.25 Td (ficient distributions to avoid paying federal income tax and/or the 4% excise tax that applies to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (certain income retained by a REIT) Tj ET Q q 0 0 0 rg BT 186.75 670.25 Td (. ) Tj ET Q q 0 0 0 rg BT 194.07 670.25 Td (W) Tj ET Q q 0 0 0 rg BT 202.71 670.25 Td (e may also decide to retain income that we earn from the sale or other disposition of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (properties and pay income tax directly on such income. In that event, our stockholders would be treated as if they earned that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (income and paid the tax on it directly) Tj ET Q q 0 0 0 rg BT 197.97 646.25 Td (. However) Tj ET Q q 0 0 0 rg BT 241.72 646.25 Td (, stockholders that are tax-exempt, such as charities or qualified pension plans, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (would have no benefit from their deemed payment of such tax liability) Tj ET Q q 0 0 0 rg BT 331.27 634.25 Td (. ) Tj ET Q q 0 0 0 rg BT 338.59 634.25 Td (W) Tj ET Q q 0 0 0 rg BT 347.22 634.25 Td (e may also be subject to state and local taxes on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (income or property) Tj ET Q q 0 0 0 rg BT 125.49 622.25 Td (, either directly or at the level of the Operating Partnership or of other entities through which we indirectly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (own our assets. ) Tj ET Q q 0 0 0 rg BT 112.83 610.25 Td (Any taxes that we pay will reduce our cash available for distribution to our stockholders. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 586.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 586.25 Td (e have entered, and may continue to enter into, certain hedging transactions which may have a potential impact on ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (our REIT status.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 550.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 550.25 Td (e have entered into hedging transactions with respect to certain of our activities and may continue to enter into similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (transactions in the future. Our hedging activities may include entering into interest rate and/or foreign currency swaps, caps ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (and floors, options to purchase these items, and futures and forward contracts. ) Tj ET Q q 0 0 0 rg BT 366.45 526.25 Td (The gross income tests applicable to REIT) Tj ET Q q 0 0 0 rg BT 535.71 526.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (generally exclude any income or gain from a hedging or similar transaction entered into by the REIT) Tj ET Q q 0 0 0 rg BT 452.52 514.25 Td ( primarily to manage the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (risk of interest rate, price changes or currency fluctuations with respect to borrowings made or to be made to acquire or carry ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (real estate assets or to manage the risk of currency fluctuations with respect to an item of income or gain that would be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (qualifying income under the 75% or 95% gross income test \(or any property which generates such income or gain\), provided ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (that we properly identify such hedges and other transactions in the manner required by the Code and regulations. ) Tj ET Q q 0 0 0 rg BT 505.30 466.25 Td (T) Tj ET Q q 0 0 0 rg BT 510.71 466.25 Td (o the extent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (that we do not properly identify such transactions as hedges or we hedge with other types of financial instruments, or hedge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (asset values or other types of indebtedness, the income from those transactions is likely to be treated as non-qualifying income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (for purposes of the gross income tests and may af) Tj ET Q q 0 0 0 rg BT 247.33 430.25 Td (fect our ability to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 389.04 430.25 Td (. In addition, to the extent that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (position in a hedging transaction has positive value, the instrument may be treated as a non-qualifying asset that does not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (qualify for purposes of the gross asset tests to which REIT) Tj ET Q q 0 0 0 rg BT 282.65 406.25 Td (s are subject. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 382.25 Td (Entities through which we hold foreign real estate investments may be subject to foreign taxes, notwithstanding our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (status as a REIT) Tj ET Q q 0 0 0 rg BT 117.21 370.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 346.25 Td (Even if we maintain our status as a REIT) Tj ET Q q 0 0 0 rg BT 237.16 346.25 Td (, entities through which we hold investments in assets located outside the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (States may be subject to income taxation by jurisdictions in which such assets are located. Our cash available for distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (to our stockholders will be reduced by any such foreign income taxes.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 298.25 Td (Dividends payable by REIT) Tj ET Q q 0 0 0 rg BT 179.62 298.25 Td (s do not qualify for the reduced tax rates available for some dividends.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 274.25 Td (The maximum tax rate applicable to income from qualified dividends payable to U.S. stockholders that are individuals, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (trusts or estates is currently 20%. Dividends payable by REIT) Tj ET Q q 0 0 0 rg BT 298.47 262.25 Td (s, however) Tj ET Q q 0 0 0 rg BT 341.39 262.25 Td (, generally are not eligible for the reduced rates. ) Tj ET Q q 0 0 0 rg BT 537.79 262.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (more favorable rates applicable to regular corporate qualified dividends could cause investors who are individuals, trusts or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (estates to perceive investments in our common shares to be relatively less attractive than investments in the stocks of non-REIT) Tj ET Q q 0 0 0 rg BT 560.02 238.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (corporations that pay dividends, which could adversely af) Tj ET Q q 0 0 0 rg BT 280.36 226.25 Td (fect the value of our common shares.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 202.25 Td (Recharacterization of sale-leaseback transactions may cause us to lose our REIT status.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 178.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 178.25 Td (e may purchase real properties and lease them back to the sellers of such properties. ) Tj ET Q q 0 0 0 rg BT 422.10 178.25 Td (W) Tj ET Q q 0 0 0 rg BT 430.74 178.25 Td (e will use commercially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (reasonable ef) Tj ET Q q 0 0 0 rg BT 102.34 166.25 Td (forts to structure any such sale-leaseback transaction such that the lease will be characterized as a true lease, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (thereby allowing us to be treated as the owner of the property for federal income tax purposes, but cannot assure our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (stockholders that the IRS will not challenge such characterization. In the event that any such sale-leaseback transaction is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (challenged and recharacterized as a financing transaction or loan for U.S. federal income tax purposes, deductions for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (depreciation relating to such property would be disallowed. ) Tj ET Q q 0 0 0 rg BT 292.03 118.25 Td (W) Tj ET Q q 0 0 0 rg BT 300.67 118.25 Td (e might fail to satisfy the REIT) Tj ET Q q 0 0 0 rg BT 424.91 118.25 Td ( qualification asset tests or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (income tests and, consequently) Tj ET Q q 0 0 0 rg BT 182.14 106.25 Td (, lose our REIT) Tj ET Q q 0 0 0 rg BT 243.62 106.25 Td ( status ef) Tj ET Q q 0 0 0 rg BT 278.98 106.25 Td (fective with the year of recharacterization if a sale-leaseback ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (transaction were so recharacterized. ) Tj ET Q q 0 0 0 rg BT 197.20 94.25 Td (Alternatively) Tj ET Q q 0 0 0 rg BT 249.30 94.25 Td (, the amount of our REIT) Tj ET Q q 0 0 0 rg BT 350.21 94.25 Td ( taxable income could be recalculated which might ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (also cause us to fail to meet the distribution requirement for a taxable year) Tj ET Q q 0 0 0 rg BT 345.79 82.25 Td (.) Tj ET Q endstream endobj 89 0 obj <> endobj 90 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (42) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (Investments in other REIT) Tj ET Q q 0 0 0 rg BT 176.88 742.25 Td (s and real estate partnerships could subject us to the tax risks associated with the tax status of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (such entities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 706.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 706.25 Td (e may invest in the securities of other REIT) Tj ET Q q 0 0 0 rg BT 255.83 706.25 Td (s and real estate partnerships. Such investments are subject to the risk that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (any such REIT) Tj ET Q q 0 0 0 rg BT 109.30 694.25 Td ( or partnership may fail to satisfy the requirements to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 394.88 694.25 Td ( or a partnership, as the case may be, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (any given taxable year) Tj ET Q q 0 0 0 rg BT 139.18 682.25 Td (. In the case of a REIT) Tj ET Q q 0 0 0 rg BT 231.18 682.25 Td (, such failure would subject such entity to taxation as a corporation. Failure to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (qualify as a REIT) Tj ET Q q 0 0 0 rg BT 120.13 670.25 Td ( may require such REIT) Tj ET Q q 0 0 0 rg BT 216.03 670.25 Td ( to incur indebtedness to pay its tax liabilities, may reduce its ability to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (distributions to us, and may render it ineligible to elect REIT) Tj ET Q q 0 0 0 rg BT 292.88 658.25 Td ( status prior to the fifth taxable year following the year in which it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (fails to so qualify) Tj ET Q q 0 0 0 rg BT 118.56 646.25 Td (. In the case of a partnership, such failure could subject such partnership to an entity level tax and reduce the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (entity) Tj ET Q q 0 0 0 rg BT 75.05 634.25 Td (s ability to make distributions to us. In addition, such failures could, depending on the circumstances, jeopardize our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (ability to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 157.90 622.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 598.25 Td (Complying with the REIT requirements may cause us to forgo otherwise attractive opportunities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 574.25 Td (T) Tj ET Q q 0 0 0 rg BT 78.91 574.25 Td (o qualify as a REIT) Tj ET Q q 0 0 0 rg BT 157.04 574.25 Td ( for U.S. federal income tax purposes, we must continually satisfy tests concerning, among other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (things, the sources of our income, the nature and diversification of our assets, the amounts we distribute to our stockholders and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (the ownership of shares of our common stock. ) Tj ET Q q 0 0 0 rg BT 239.28 550.25 Td (W) Tj ET Q q 0 0 0 rg BT 247.92 550.25 Td (e may be required to for) Tj ET Q q 0 0 0 rg BT 344.08 550.25 Td (go otherwise attractive investments or make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (distributions to stockholders at disadvantageous times or when we do not have funds readily available for distribution. ) Tj ET Q q 0 0 0 rg BT 527.28 538.25 Td (Thus, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (compliance with the REIT) Tj ET Q q 0 0 0 rg BT 155.12 526.25 Td ( requirements may hinder our ability to operate solely on the basis of maximizing profits.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 502.25 Td (Complying with the REIT requirements may force us to liquidate otherwise attractive investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 478.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 478.25 Td (e must ensure that at the end of each calendar quarter) Tj ET Q q 0 0 0 rg BT 294.41 478.25 Td (, at least 75% of the value of our assets consists of cash, cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (items, government securities and qualified REIT) Tj ET Q q 0 0 0 rg BT 243.71 466.25 Td ( real estate assets in order to ensure our qualification as a REIT) Tj ET Q q 0 0 0 rg BT 495.65 466.25 Td (. ) Tj ET Q q 0 0 0 rg BT 502.97 466.25 Td (The remainder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (of our investments \(other than governmental securities and qualified real estate assets\) generally cannot include more than 10% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (of the outstanding voting securities of any one issuer or more than 10% of the total value of the outstanding securities of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (one issuer) Tj ET Q q 0 0 0 rg BT 89.22 430.25 Td (. In addition, in general, no more than 5% of the value of our assets \(other than government securities and qualified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (real estate assets\) can consist of the securities of any one issuer) Tj ET Q q 0 0 0 rg BT 301.51 418.25 Td (, and no more than 20% \(the limit was 25% prior to January 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (2018\) of the value of our total assets can be represented by securities of one or more taxable REIT) Tj ET Q q 0 0 0 rg BT 442.51 406.25 Td ( subsidiaries. If we fail to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (comply with these requirements at the end of any calendar quarter) Tj ET Q q 0 0 0 rg BT 313.44 394.25 Td (, we must correct such failure within 30 days after the end of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (the calendar quarter in order to avoid losing our REIT) Tj ET Q q 0 0 0 rg BT 265.08 382.25 Td ( status and suf) Tj ET Q q 0 0 0 rg BT 321.84 382.25 Td (fering adverse tax consequences. ) Tj ET Q q 0 0 0 rg BT 457.89 382.25 Td (As a result, we may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (required to liquidate otherwise attractive investments.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 346.25 Td (The failure of a mezzanine loan or any other loan which is not secured by a mortgage on real property to qualify as a ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (real estate asset could adversely af) Tj ET Q q 0 0 0 rg BT 190.68 334.25 Td (fect our ability to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 336.15 334.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 310.25 Td (The IRS has issued Revenue Procedure 2003-65, which provides a safe harbor pursuant to which a mezzanine loan that is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (secured by interests in a pass-through entity will be treated by the IRS as a real estate asset for purposes of the REIT) Tj ET Q q 0 0 0 rg BT 514.74 298.25 Td ( tests, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (interest derived from such loan will be treated as qualifying mortgage interest for purposes of the REIT) Tj ET Q q 0 0 0 rg BT 462.53 286.25 Td ( 75% income test. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (Although the Revenue Procedure provides a safe harbor on which taxpayers may rely) Tj ET Q q 0 0 0 rg BT 390.96 274.25 Td (, it does not prescribe rules of substantive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (tax law) Tj ET Q q 0 0 0 rg BT 78.01 262.25 Td (. ) Tj ET Q q 0 0 0 rg BT 85.33 262.25 Td (W) Tj ET Q q 0 0 0 rg BT 93.96 262.25 Td (e may make investments in loans secured by interests in pass-through entities in a manner that complies with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (various requirements applicable to our qualification as a REIT) Tj ET Q q 0 0 0 rg BT 298.12 250.25 Td (. ) Tj ET Q q 0 0 0 rg BT 305.44 250.25 Td (T) Tj ET Q q 0 0 0 rg BT 310.85 250.25 Td (o the extent, however) Tj ET Q q 0 0 0 rg BT 396.53 250.25 Td (, that any such loans do not satisfy all of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (the requirements for reliance on the safe harbor set forth in the Revenue Procedure, there can be no assurance that the IRS will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (not challenge the tax treatment of such loans, which could jeopardize our ability to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 453.07 226.25 Td (. Similarly any other loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (which we make which is not secured by a mortgage on real property may fail to qualify as a real estate asset for purposes of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (REIT) Tj ET Q q 0 0 0 rg BT 71.54 202.25 Td ( qualification tests and therefore could adversely af) Tj ET Q q 0 0 0 rg BT 275.99 202.25 Td (fect our ability to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 417.71 202.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 178.25 Td (Legislative or regulatory action could adversely af) Tj ET Q q 0 0 0 rg BT 273.40 178.25 Td (fect us and/or our investors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 154.25 Td (In recent years, numerous legislative, judicial and administrative changes have been made to the U.S. federal income tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (laws applicable to the qualification and taxation of REIT) Tj ET Q q 0 0 0 rg BT 275.95 142.25 Td (s and to investments in REIT) Tj ET Q q 0 0 0 rg BT 391.63 142.25 Td (s and similar entities. ) Tj ET Q q 0 0 0 rg BT 481.06 142.25 Td (Additional changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (to tax laws may continue to occur in the future and may be given retroactive or prospective ef) Tj ET Q q 0 0 0 rg BT 423.90 130.25 Td (fect, and we cannot assure our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (stockholders that any such changes will not adversely af) Tj ET Q q 0 0 0 rg BT 274.26 118.25 Td (fect how we are taxed or the taxation of a stockholder) Tj ET Q q 0 0 0 rg BT 488.62 118.25 Td (. ) Tj ET Q q 0 0 0 rg BT 495.56 118.25 Td (Any such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (changes could have an adverse ef) Tj ET Q q 0 0 0 rg BT 182.86 106.25 Td (fect on us and on an investment in shares of our common stock. ) Tj ET Q q 0 0 0 rg BT 442.35 106.25 Td (W) Tj ET Q q 0 0 0 rg BT 450.99 106.25 Td (e ur) Tj ET Q q 0 0 0 rg BT 466.08 106.25 Td (ge our stockholders to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (consult with their own tax advisors with respect to the status of legislative, regulatory or administrative developments and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (proposals and their potential ef) Tj ET Q q 0 0 0 rg BT 173.17 82.25 Td (fect on an investment in shares of our common stock.) Tj ET Q endstream endobj 91 0 obj <> endobj 92 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (43) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (The T) Tj ET Q q 0 0 0 rg BT 91.30 742.25 Td (ax Cuts and Jobs ) Tj ET Q q 0 0 0 rg BT 164.28 742.25 Td (Act, which made significant changes to the U.S. federal income tax rules for taxation of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (individuals and corporations, including REIT) Tj ET Q q 0 0 0 rg BT 237.24 730.25 Td (s and their stockholders, was signed into law on December 22, 2017 and the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 718.25 Td (precise application of all facets of the legislation is unclear) Tj ET Q q 0 0 0 rg BT 291.43 718.25 Td (. In addition, as a result of these changes, we may be limited in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (our ability to deduct interest expense, or be required to spread depreciation deductions over longer periods of time and we ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (may be limited in our ability to utilize losses incurred in earlier years to of) Tj ET Q q 0 0 0 rg BT 353.21 694.25 Td (fset income generated in subsequent years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 670.25 Td (The ) Tj ET Q q 0 0 0 rg BT 91.37 670.25 Td (T) Tj ET Q q 0 0 0 rg BT 96.78 670.25 Td (ax Cuts and Jobs ) Tj ET Q q 0 0 0 rg BT 166.22 670.25 Td (Act made significant changes to the U.S. federal income tax rules for taxation of individuals and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (corporations, including REIT) Tj ET Q q 0 0 0 rg BT 166.28 658.25 Td (s and their stockholders. In the case of individuals, the tax brackets were adjusted, the top federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (income rate was reduced to 37%, special rules reduce taxation of certain income earned through pass-through entities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (reduce the top ef) Tj ET Q q 0 0 0 rg BT 116.23 634.25 Td (fective rate applicable to ordinary dividends from REIT) Tj ET Q q 0 0 0 rg BT 338.50 634.25 Td (s to 29.6% \(through a 20% deduction for ordinary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (REIT) Tj ET Q q 0 0 0 rg BT 71.54 622.25 Td ( dividends received that are not capital gain dividends or qualified dividend income, subject to complex limitations\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (and various deductions were eliminated or limited, including limiting the deduction for state and local taxes to $10,000 per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (year) Tj ET Q q 0 0 0 rg BT 66.16 598.25 Td (. Most of the changes applicable to individuals are temporary and apply only to taxable years beginning after December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (2017 and before January 1, 2026. ) Tj ET Q q 0 0 0 rg BT 187.89 586.25 Td (The top corporate income tax rate was reduced to 21%. ) Tj ET Q q 0 0 0 rg BT 413.73 586.25 Td (There are only minor changes to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (tax rules applicable to REIT) Tj ET Q q 0 0 0 rg BT 161.54 574.25 Td (s \(other than the 20% deduction applicable to individuals for ordinary REIT) Tj ET Q q 0 0 0 rg BT 464.89 574.25 Td ( dividends received\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (The ) Tj ET Q q 0 0 0 rg BT 67.37 562.25 Td (T) Tj ET Q q 0 0 0 rg BT 72.78 562.25 Td (ax Cuts and Jobs ) Tj ET Q q 0 0 0 rg BT 142.22 562.25 Td (Act makes numerous other lar) Tj ET Q q 0 0 0 rg BT 262.56 562.25 Td (ge and small changes to the tax rules that do not af) Tj ET Q q 0 0 0 rg BT 464.82 562.25 Td (fect REIT) Tj ET Q q 0 0 0 rg BT 503.83 562.25 Td (s directly but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (may af) Tj ET Q q 0 0 0 rg BT 76.80 550.25 Td (fect our stockholders and may indirectly af) Tj ET Q q 0 0 0 rg BT 248.23 550.25 Td (fect us. For example, the ) Tj ET Q q 0 0 0 rg BT 351.91 550.25 Td (T) Tj ET Q q 0 0 0 rg BT 357.32 550.25 Td (ax Cuts and Jobs ) Tj ET Q q 0 0 0 rg BT 426.77 550.25 Td (Act amended the rules for accrual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (of income so that income is taken into account no later than when it is taken into account on applicable financial statements, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (even if financial statements take such income into account before it would accrue under the original issue discount rules, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (market discount rules or other rules in the Code. Such rule may cause us to recognize income before receiving any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (corresponding receipt of cash, which may make it more likely that we could be required to borrow funds or take other action to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (satisfy the REIT) Tj ET Q q 0 0 0 rg BT 114.86 490.25 Td ( distribution requirements for the taxable year in which such income is recognized, although the precise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (application of this rule is unclear at this time. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 454.25 Td (In addition, per the ) Tj ET Q q 0 0 0 rg BT 151.91 454.25 Td (T) Tj ET Q q 0 0 0 rg BT 157.32 454.25 Td (ax Cuts and Jobs ) Tj ET Q q 0 0 0 rg BT 226.77 454.25 Td (Act, the amount of business interest expense that we may deduct may be limited to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (the sum of 30% of our adjusted taxable income for the tax year and our business interest income for the tax year) Tj ET Q q 0 0 0 rg BT 497.42 442.25 Td (. Business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (interest expense generally is interest paid or accrued with respect to indebtedness allocable to a trade or business. It does not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (include investment interest. ) Tj ET Q q 0 0 0 rg BT 161.70 418.25 Td (Adjusted taxable income generally means taxable income from trade or business activities before ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (any deductions for interest, net operating losses, or the new deduction for pass-through business income provided for in the ) Tj ET Q q 0 0 0 rg BT 545.04 406.25 Td (T) Tj ET Q q 0 0 0 rg BT 550.45 406.25 Td (ax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (Cuts and Jobs ) Tj ET Q q 0 0 0 rg BT 107.01 394.25 Td (Act. In taxable years beginning before January 1, 2022, adjusted taxable income is also computed before ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (deducting depreciation and amortization expense. Interest expense that is disallowed may be carried forward indefinitely) Tj ET Q q 0 0 0 rg BT 531.73 382.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (Businesses with average annual gross receipts of $25 million or less \(determined by taking into account businesses operated by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (certain af) Tj ET Q q 0 0 0 rg BT 86.79 358.25 Td (filiated entities\) are exempt from this limitation. ) Tj ET Q q 0 0 0 rg BT 281.18 358.25 Td (A) Tj ET Q q 0 0 0 rg BT 287.85 358.25 Td ( real property trade or business may elect to not be subject to this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (limit. ) Tj ET Q q 0 0 0 rg BT 72.84 346.25 Td (A) Tj ET Q q 0 0 0 rg BT 79.51 346.25 Td ( real property trade or business is any real property development, redevelopment, construction, reconstruction, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (acquisition, conversion, rental, operation, management, leasing, or brokerage trade or business. ) Tj ET Q q 0 0 0 rg BT 432.16 334.25 Td (An electing real property trade ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (or business must use longer alternative depreciation system periods prospectively for all real estate, including real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (acquired prior to the election. ) Tj ET Q q 0 0 0 rg BT 169.83 310.25 Td (W) Tj ET Q q 0 0 0 rg BT 178.46 310.25 Td (e have not yet determined whether the new limitation will af) Tj ET Q q 0 0 0 rg BT 419.87 310.25 Td (fect us or any of our subsidiaries, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (or whether we and our subsidiaries are eligible to make and will make this election. Once made, this election is irrevocable. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (Further) Tj ET Q q 0 0 0 rg BT 78.54 286.25 Td (, under the ) Tj ET Q q 0 0 0 rg BT 123.34 286.25 Td (T) Tj ET Q q 0 0 0 rg BT 128.75 286.25 Td (ax Cuts and Jobs ) Tj ET Q q 0 0 0 rg BT 198.20 286.25 Td (Act, for taxable years beginning after December 31, 2017, a company) Tj ET Q q 0 0 0 rg BT 480.04 286.25 Td (s ability to deduct ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (net operating losses is generally limited to 80% of taxable income \(prior to the application of the dividends paid deduction\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (which may limit our ability or the ability of our subsidiaries to derive tax benefits in a later year from losses incurred and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (carried forward from a prior year) Tj ET Q q 0 0 0 rg BT 181.38 250.25 Td (. ) Tj ET Q q 0 0 0 rg BT 185.82 250.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 235.73 250.25 Td (, the ) Tj ET Q q 0 0 0 rg BT 255.26 250.25 Td (T) Tj ET Q q 0 0 0 rg BT 260.67 250.25 Td (ax Cuts and Jobs ) Tj ET Q q 0 0 0 rg BT 330.12 250.25 Td (Act reduced individual taxpayers) Tj ET Q q 0 0 0 rg BT 465.16 250.25 Td ( ability to deduct state ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (and local taxes, including property taxes further limited their ability to deduct mortgage interest expense, such that interest is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (only deductible with respect to up to a total of $750,000 of mortgages and the legislation does not permit deduction of interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (on home equity loans \(after grandfathering all existing mortgages\). ) Tj ET Q q 0 0 0 rg BT 322.29 214.25 Td (These changes may potentially \(and negatively\) af) Tj ET Q q 0 0 0 rg BT 523.70 214.25 Td (fect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (markets in which we may invest. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 178.25 Td (Stockholders are ur) Tj ET Q q 0 0 0 rg BT 151.07 178.25 Td (ged to consult with their tax advisors with respect to the ) Tj ET Q q 0 0 0 rg BT 377.24 178.25 Td (T) Tj ET Q q 0 0 0 rg BT 382.65 178.25 Td (ax Cuts and Jobs ) Tj ET Q q 0 0 0 rg BT 452.09 178.25 Td (Act and any other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (regulatory or administrative developments and proposals, including their potential impact on stockholders) Tj ET Q q 0 0 0 rg BT 475.88 166.25 Td ( investment in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (common shares.) Tj ET Q endstream endobj 93 0 obj <> endobj 94 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (44) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (Risks Related to ERISA) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 718.25 Td (If our assets are deemed to be plan assets under ERISA, we, our ) Tj ET Q q 0 0 0 rg BT 333.54 718.25 Td (Advisor and the fiduciaries of investing ERISA) Tj ET Q q 0 0 0 rg BT 526.91 718.25 Td ( plans ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (may be exposed to liabilities under T) Tj ET Q q 0 0 0 rg BT 199.67 706.25 Td (itle I of ERISA) Tj ET Q q 0 0 0 rg BT 261.08 706.25 Td ( and the Internal Revenue Code.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 682.25 Td (In some circumstances where an ERISA) Tj ET Q q 0 0 0 rg BT 234.29 682.25 Td ( plan holds an interest in an entity) Tj ET Q q 0 0 0 rg BT 368.89 682.25 Td (, an undivided interest in the assets of the entity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (attributable to that interest are deemed to be ERISA) Tj ET Q q 0 0 0 rg BT 256.10 670.25 Td ( plan assets unless an exception applies. ) Tj ET Q q 0 0 0 rg BT 420.60 670.25 Td (This is known as the look-through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (rule. Under those circumstances, the obligations and other responsibilities of plan sponsors, plan fiduciaries and plan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (administrators, and of parties in interest and disqualified persons, under ) Tj ET Q q 0 0 0 rg BT 338.14 646.25 Td (T) Tj ET Q q 0 0 0 rg BT 343.89 646.25 Td (itle I of ERISA) Tj ET Q q 0 0 0 rg BT 404.17 646.25 Td ( and Section4975 of the Code, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (applicable, may be applicable, and there may be liability under these and other provisions of ERISA) Tj ET Q q 0 0 0 rg BT 449.66 634.25 Td ( and the Code. ) Tj ET Q q 0 0 0 rg BT 512.24 634.25 Td (W) Tj ET Q q 0 0 0 rg BT 520.88 634.25 Td (e believe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (that our assets should not be treated as plan assets because the shares should qualify as publicly-of) Tj ET Q q 0 0 0 rg BT 446.99 622.25 Td (fered securities that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (exempt from the look-through rules under applicable regulations of the U.S. Department of the ) Tj ET Q q 0 0 0 rg BT 431.43 610.25 Td (T) Tj ET Q q 0 0 0 rg BT 437.19 610.25 Td (reasury) Tj ET Q q 0 0 0 rg BT 465.97 610.25 Td (, because we have 100 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (stockholders that are independent of us and one another) Tj ET Q q 0 0 0 rg BT 271.65 598.25 Td (. ) Tj ET Q q 0 0 0 rg BT 278.97 598.25 Td (W) Tj ET Q q 0 0 0 rg BT 287.61 598.25 Td (e note, however) Tj ET Q q 0 0 0 rg BT 350.79 598.25 Td (, that because certain limitations are imposed upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (the transferability of shares so that we may qualify as a REIT) Tj ET Q q 0 0 0 rg BT 293.96 586.25 Td (, and perhaps for other reasons, it is possible that this exemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (may not apply) Tj ET Q q 0 0 0 rg BT 106.06 574.25 Td (. If that is the case, and if our ) Tj ET Q q 0 0 0 rg BT 227.14 574.25 Td (Advisor or we are exposed to liability under ERISA) Tj ET Q q 0 0 0 rg BT 434.32 574.25 Td ( or the Code, our performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (and results of operations could be adversely af) Tj ET Q q 0 0 0 rg BT 235.09 562.25 Td (fected. In addition, if that were the case, an investment in our common shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (might constitute an inef) Tj ET Q q 0 0 0 rg BT 144.02 550.25 Td (fective delegation of fiduciary responsibility to our ) Tj ET Q q 0 0 0 rg BT 349.80 550.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 381.62 550.25 Td (, and expose the fiduciary of the benefit plan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (to co-fiduciary liability under ERISA) Tj ET Q q 0 0 0 rg BT 198.36 538.25 Td ( for any breach by our ) Tj ET Q q 0 0 0 rg BT 288.88 538.25 Td (Advisor of the fiduciary duties mandated under ERISA. If our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (Advisor or we are exposed to liability under ERISA) Tj ET Q q 0 0 0 rg BT 256.68 526.25 Td ( or the Code, our performance and results of operations could be adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 514.25 Td (fected. Prior to making an investment in us, potential investors should consult with their legal and other advisors concerning ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (the impact of ERISA) Tj ET Q q 0 0 0 rg BT 133.10 502.25 Td ( and the Code on such investors) Tj ET Q q 0 0 0 rg BT 262.89 502.25 Td ( investment and our performance.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 478.25 Td (There are special considerations that apply to pension or profit sharing trusts or individual retirement accounts, or ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (IRAs, investing in our common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 442.25 Td (If a stockholder is investing the assets of an IRA, pension, profit sharing, 401\(k\), Keogh or other qualified retirement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (plan, they should satisfy themselves that:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 406.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 406.25 Td (their investment is consistent with their fiduciary obligations under ERISA) Tj ET Q q 0 0 0 rg BT 384.22 406.25 Td ( and the Code;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 394.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 394.25 Td (their investment is made in accordance with the documents and instruments governing their plan or IRA, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 382.25 Td (their plan) Tj ET Q q 0 0 0 rg BT 125.92 382.25 Td (s investment policy;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 370.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 370.25 Td (their investment satisfies the prudence and diversification requirements of Sections 404\(a\)\(1\)\(B\) and 404\(a\)\(1\)\(C\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 358.25 Td (ERISA;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 346.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 346.25 Td (their investment will not impair the liquidity of the plan or IRA;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 334.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 334.25 Td (their investment will not produce unrelated business taxable income for the plan or IRA;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 322.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 322.25 Td (they will be able to value the assets of the plan annually in accordance with ERISA) Tj ET Q q 0 0 0 rg BT 417.50 322.25 Td ( requirements; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 310.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 310.25 Td (their investment will not constitute a prohibited transaction under Section406 of ERISA) Tj ET Q q 0 0 0 rg BT 438.37 310.25 Td ( or Section4975 of the Code.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (Item1B.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 86.66 286.25 Td (Unresolved Staf) Tj ET Q q 0 0 0 rg BT 157.31 286.25 Td (f Comments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 262.25 Td (Not applicable.) Tj ET Q endstream endobj 95 0 obj <> endobj 96 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (45) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 740.25 Td (Item2.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 79.49 740.25 Td (Properties) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 716.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.94 716.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.53 716.25 Td (, we owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.85 716.25 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.84 716.25 Td ( real estate investments. ) Tj ET Q q 0 0 0 rg BT 339.18 716.25 Td (The following table provides additional information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (regarding each of these properties, and is presented as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.58 704.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.16 704.25 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 656.75 127.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 656.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 656.75 91.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 656.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 656.75 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 656.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 656.75 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 656.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 656.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 656.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 656.75 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.00 656.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.00 656.75 38.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 630.75 127.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 630.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 630.75 91.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 630.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 630.75 50.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 630.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 630.75 75.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 630.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 630.75 59.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 630.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 630.75 49.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.00 630.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.00 630.75 38.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 596.75 127.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 596.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 596.75 91.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 596.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 596.75 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 596.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 596.75 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 596.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 596.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 596.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 596.75 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.00 596.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.00 596.75 38.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 570.75 127.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 570.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 570.75 91.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 570.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 570.75 50.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 570.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 570.75 75.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 570.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 570.75 59.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 570.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 570.75 49.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.00 570.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.00 570.75 38.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 528.75 222.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 528.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 528.75 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 528.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 528.75 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 528.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 528.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 528.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 528.75 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.00 528.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.00 528.75 38.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 656.75 m 177 656.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181 656.75 m 272 656.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276 656.75 m 326 656.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 656.75 m 405 656.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 656.75 m 468 656.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 656.75 m 521 656.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 525 656.75 m 563 656.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 528.75 m 521 528.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 525 528.75 m 563 528.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 516.75 m 521 516.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 514.75 m 521 514.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 525 516.75 m 563 516.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 525 514.75 m 563 514.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 660.98 Td (Pr) Tj ET Q q 0 0 0 rg BT 60.79 660.98 Td (operty ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 85.01 660.98 Td ( ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 87.01 664.61 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 183.50 660.98 Td (Location) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 281.35 668.98 Td (Investment) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 292.10 660.98 Td (T) Tj ET Q q 0 0 0 rg BT 297.14 660.98 Td (ype) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 334.15 676.98 Td (Date ) Tj ET Q q 0 0 0 rg BT 351.70 676.98 Td (Acquir) Tj ET Q q 0 0 0 rg BT 375.56 676.98 Td (ed/ Net ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.70 668.98 Td (Pur) Tj ET Q q 0 0 0 rg BT 348.44 668.98 Td (chase Price \(in ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.05 660.98 Td (millions\) ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 379.83 664.61 Td (\(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.65 684.98 Td (Estimated ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.85 676.98 Td (Going-in ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 413.75 668.98 Td (Capitalization ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.95 660.98 Td (Rate ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 443.94 664.61 Td (\(3\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.85 668.98 Td (Leasable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.50 660.98 Td (Squar) Tj ET Q q 0 0 0 rg BT 496.33 660.98 Td (e Feet) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.45 668.98 Td (Per) Tj ET Q q 0 0 0 rg BT 542.29 668.98 Td (cent) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 531.50 660.98 Td (Leased) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 648.00 Td (2819 Loker ) Tj ET Q q 0 0 0 rg BT 91.38 648.00 Td (A) Tj ET Q q 0 0 0 rg BT 96.64 648.00 Td (venue East) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.50 648.00 Td (Carlsbad, California) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.15 648.00 Td (Industrial) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.75 648.00 Td (12/2014; $25.4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.65 648.00 Td (6.5%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.75 648.00 Td (166,310) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.80 648.00 Td (100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 648.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 635.00 Td (Bishop) Tj ET Q q 0 0 0 rg BT 77.62 635.00 Td (s Square) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.50 635.00 Td (Dublin, Ireland) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 290.35 635.00 Td (Of) Tj ET Q q 0 0 0 rg BT 298.72 635.00 Td (fice) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.75 635.00 Td (3/2015; $103.2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.65 635.00 Td (6.1%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.75 635.00 Td (153,387) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 635.00 Td (89) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 635.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 614.00 Td (Domain ) Tj ET Q q 0 0 0 rg BT 79.83 614.00 Td (Apartments ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 119.16 617.63 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.50 614.00 Td (Las ) Tj ET Q q 0 0 0 rg BT 196.98 614.00 Td (V) Tj ET Q q 0 0 0 rg BT 202.24 614.00 Td (egas, Nevada) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 281.35 622.00 Td (Residential/) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.80 614.00 Td (Living) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 344.75 614.00 Td (1/2016; $58.1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.65 614.00 Td (5.5%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.75 614.00 Td (331,038) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 614.00 Td (92) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 614.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 601.00 Td (Cottonwood Corporate Center) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.50 601.00 Td (Salt Lake City) Tj ET Q q 0 0 0 rg BT 229.46 601.00 Td (, Utah) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 290.35 601.00 Td (Of) Tj ET Q q 0 0 0 rg BT 298.72 601.00 Td (fice) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.75 601.00 Td (7/2016; $139.2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.65 601.00 Td (6.9%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.75 601.00 Td (490,030) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 601.00 Td (94) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 601.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 588.00 Td (Goodyear Crossing II) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.50 588.00 Td (Phoenix, ) Tj ET Q q 0 0 0 rg BT 213.50 588.00 Td (Arizona) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.15 588.00 Td (Industrial) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 344.75 588.00 Td (8/2016; $56.2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.65 588.00 Td (8.5%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.75 588.00 Td (820,384) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.80 588.00 Td (100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 588.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 575.00 Td (Rookwood) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.50 575.00 Td (Cincinnati, Ohio) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 290.90 575.00 Td (Retail) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.75 575.00 Td (1/2017; $193.7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.65 575.00 Td (6.0%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.75 575.00 Td (590,501) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 575.00 Td (97) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 575.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 554.00 Td (Montrose Student Residences ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 149.60 557.63 Td (\(5\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.50 554.00 Td (Dublin, Ireland) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 281.35 562.00 Td (Residential/) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.80 554.00 Td (Living) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 344.75 554.00 Td (3/2017; $40.6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.65 554.00 Td (5.5%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.75 554.00 Td (53,827) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.80 554.00 Td (100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 554.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 533.00 Td (Queen) Tj ET Q q 0 0 0 rg BT 75.60 533.00 Td (s Court Student Residences ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 165.37 536.63 Td (\(6\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.50 533.00 Td (Reading, United Kingdom) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 281.35 541.00 Td (Residential/) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.80 533.00 Td (Living) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.75 533.00 Td (10/2017; $65.3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.65 533.00 Td (6.2%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.75 533.00 Td (79,1) Tj ET Q q 0 0 0 rg BT 509.75 533.00 Td (15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.80 533.00 Td (100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 533.00 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 519.98 Td (T) Tj ET Q q 0 0 0 rg BT 57.10 519.98 Td (otal for) Tj ET Q q 0 0 0 rg BT 82.06 519.98 Td ( ) Tj ET Q q 0 0 0 rg BT 83.62 519.98 Td (All Investments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.50 520.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.75 520.00 Td (2,684,592) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 520.00 Td (97) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 520.00 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 492.25 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 492.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.22 492.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.81 492.25 Td (, we ef) Tj ET Q q 0 0 0 rg BT 187.55 492.25 Td (fectively owned a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.13 492.25 Td (99.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.96 492.25 Td ( interest in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.39 492.25 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.39 492.25 Td ( properties acquired prior to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.51 492.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.10 492.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 480.25 Td (through our ownership interest in the Operating Partnership as its sole general partner) Tj ET Q q 0 0 0 rg BT 409.63 480.25 Td (. Hines Global REIT) Tj ET Q q 0 0 0 rg BT 494.72 480.25 Td ( II ) Tj ET Q q 0 0 0 rg BT 505.83 480.25 Td (Associates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 468.25 Td (Limited Partnership \(HALP) Tj ET Q q 0 0 0 rg BT 183.22 468.25 Td ( II\), an af) Tj ET Q q 0 0 0 rg BT 224.67 468.25 Td (filiate of Hines, owned the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.57 468.25 Td (0.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.40 468.25 Td ( interest in the Operating Partnership.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 444.25 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 444.25 Td (The acquisitions of Bishop) Tj ET Q q 0 0 0 rg BT 177.77 444.25 Td (s Square, the Montrose Student Residences and the Queen) Tj ET Q q 0 0 0 rg BT 413.55 444.25 Td (s Court Student Residences were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 432.25 Td (denominated in foreign currencies, and amounts have been translated to U.S. dollars at a rate based on the exchange rate in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 420.25 Td (ef) Tj ET Q q 0 0 0 rg BT 75.09 420.25 Td (fect on the acquisition date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.25 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 396.25 Td (The estimated going-in capitalization rate is determined as of the date of acquisition by dividing the projected property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 384.25 Td (revenues in excess of expenses for the first fiscal year by the net purchase price \(excluding closing costs and taxes\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 372.25 Td (Property revenues in excess of expenses includes all projected operating revenues \(rental income, tenant reimbursements, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 360.25 Td (parking and any other property-related income\) less all projected operating expenses \(property operating and maintenance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 348.25 Td (expenses, property taxes, insurance and property management fees\). ) Tj ET Q q 0 0 0 rg BT 344.99 348.25 Td (The projected property revenues in excess of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 336.25 Td (expenses includes assumptions which may not be indicative of the actual future performance of the property) Tj ET Q q 0 0 0 rg BT 499.77 336.25 Td (, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 324.25 Td (assumption that the tenants will perform under their lease agreements during the 12months following our acquisition of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 312.25 Td (properties and assumptions concerning estimates of timing and rental rates related to re-leasing vacant space.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.25 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 288.25 Td (The Domain ) Tj ET Q q 0 0 0 rg BT 119.71 288.25 Td (Apartments consist of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.98 288.25 Td (308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.98 288.25 Td ( units with an average ef) Tj ET Q q 0 0 0 rg BT 322.81 288.25 Td (fective monthly rental rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.93 288.25 Td ($1,152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.43 288.25 Td ( per unit as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 276.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.08 276.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 252.25 Td (\(5\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 252.25 Td (The Montrose Student Residences consists of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.92 252.25 Td (210) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.92 252.25 Td ( beds with an average ef) Tj ET Q q 0 0 0 rg BT 363.64 252.25 Td (fective weekly rental rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.30 252.25 Td (228) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.30 252.25 Td ( \(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 240.25 Td ($274) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 240.25 Td ( assuming a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.53 240.25 Td ($1.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.03 240.25 Td ( per EUR as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.96 240.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.54 240.25 Td (\) per bed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.25 Td (\(6\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 216.25 Td (The Queen) Tj ET Q q 0 0 0 rg BT 114.42 216.25 Td (s Court Student Residences consists of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.64 216.25 Td (395) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.64 216.25 Td ( beds with an average ef) Tj ET Q q 0 0 0 rg BT 383.35 216.25 Td (fective weekly rental rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.01 216.25 Td (188) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.01 216.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 204.25 Td (\(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.09 204.25 Td ($254) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.09 204.25 Td ( assuming a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.12 204.25 Td ($1.35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.62 204.25 Td ( per GBP) Tj ET Q q 0 0 0 rg BT 288.47 204.25 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.63 204.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.22 204.25 Td (\) per bed.) Tj ET Q endstream endobj 97 0 obj <> endobj 98 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (46) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 740.25 Td (Investment T) Tj ET Q q 0 0 0 rg BT 103.29 740.25 Td (ype) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 716.25 Td (Our portfolio is comprised of investments in a variety of real estate asset classes, including retail, of) Tj ET Q q 0 0 0 rg BT 467.21 716.25 Td (fice, industrial, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (residential/living which includes multi-family and student housing properties. ) Tj ET Q q 0 0 0 rg BT 365.37 704.25 Td (The following chart depicts the percentage of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.25 Td (our portfolio) Tj ET Q q 0 0 0 rg BT 103.10 692.25 Td (s investment types based on the estimated value of each real estate investment. Estimated values were determined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.25 Td (using the ) Tj ET Q q 0 0 0 rg BT 87.83 680.25 Td (August 2017 appraised values and the purchase price for Queen) Tj ET Q q 0 0 0 rg BT 345.80 680.25 Td (s Court Student Residences.) Tj ET Q /GS0 gs q 474.00 0 0 174.00 69.00 489.25 cm /I20 Do Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (Lease Expirations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 446.25 Td (The following table lists the scheduled lease expirations and related expiring base rents of our commercial properties for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (each of the years ending December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.76 434.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.76 434.25 Td ( through December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.45 434.25 Td (2027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.45 434.25 Td ( and the period thereafter for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.33 434.25 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.33 434.25 Td ( commercial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (properties in which we owned an interest as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.05 422.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.64 422.25 Td (. It does not include the ef) Tj ET Q q 0 0 0 rg BT 423.09 422.25 Td (fect of our residential/living ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (properties. ) Tj ET Q q 0 0 0 rg BT 96.80 410.25 Td (The table also shows the approximate leasable square feet represented by the applicable lease expirations.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 344.75 105.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 155.00 344.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 159.00 344.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 344.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 344.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 344.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 344.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 344.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 344.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 344.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 344.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 316.75 105.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 155.00 316.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 159.00 316.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 316.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 316.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 316.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 316.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 316.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 316.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 316.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 316.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 288.75 105.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 155.00 288.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 159.00 288.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 288.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 288.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 288.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 288.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 288.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 288.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 288.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 288.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 260.75 105.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 155.00 260.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 159.00 260.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 260.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 260.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 260.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 260.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 260.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 260.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 260.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 260.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 232.75 105.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 155.00 232.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 159.00 232.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 232.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 232.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 232.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 232.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 232.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 232.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 232.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 232.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 204.75 105.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 155.00 204.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 159.00 204.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 204.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 204.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 204.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 204.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 204.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 204.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 204.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 204.75 82.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223 385.75 m 305 385.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 385.75 m 309 385.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309 385.75 m 391 385.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 344.75 m 155 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 159 344.75 m 219 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223 344.75 m 305 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309 344.75 m 391 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395 344.75 m 477 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 344.75 m 563 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 344.75 m 155 344.75 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 390.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 161.50 390.21 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 279.20 390.20 Td (Leasable ) Tj ET Q q 0 0 0 rg BT 315.20 390.20 Td (Ar) Tj ET Q q 0 0 0 rg BT 325.37 390.20 Td (ea) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 390.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.50 390.21 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 93.05 349.20 Td (Y) Tj ET Q q 0 0 0 rg BT 99.05 349.20 Td (ear) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 167.70 358.20 Td (Number) Tj ET Q q 0 0 0 rg BT 199.62 358.20 Td ( of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 175.75 349.20 Td (Leases) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 238.05 358.20 Td (Appr) Tj ET Q q 0 0 0 rg BT 258.47 358.20 Td (oximate) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 240.45 349.20 Td (Squar) Tj ET Q q 0 0 0 rg BT 263.88 349.20 Td (e Feet) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 319.05 358.20 Td (Per) Tj ET Q q 0 0 0 rg BT 332.46 358.20 Td (cent of ) Tj ET Q q 0 0 0 rg BT 360.28 358.20 Td (T) Tj ET Q q 0 0 0 rg BT 365.79 358.20 Td (otal) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 322.20 349.20 Td (Leasable ) Tj ET Q q 0 0 0 rg BT 358.20 349.20 Td (Ar) Tj ET Q q 0 0 0 rg BT 368.37 349.20 Td (ea) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 411.10 376.20 Td (Annual Base ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 402.50 367.20 Td (Rental Income of ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 404.60 358.20 Td (Expiring Leases) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 408.10 349.20 Td (\(in thousands\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 491.05 367.20 Td (Per) Tj ET Q q 0 0 0 rg BT 504.37 367.20 Td (cent of ) Tj ET Q q 0 0 0 rg BT 532.20 367.20 Td (T) Tj ET Q q 0 0 0 rg BT 537.38 367.20 Td (otal) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 497.10 358.20 Td (Annual Base) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 493.35 349.20 Td (Rental Income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 335.21 Td (V) Tj ET Q q 0 0 0 rg BT 58.50 335.21 Td (acant) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.50 335.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.75 335.21 Td (63,759) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.75 335.21 Td (2.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 335.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 335.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.50 335.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 335.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 335.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 321.21 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.50 321.21 Td (19) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 272.25 321.21 Td (125,317) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.75 321.21 Td (5.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 321.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 321.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.25 321.21 Td (3,890) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.75 321.21 Td (9.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 321.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 307.21 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.50 307.21 Td (13) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 272.25 307.21 Td (936,091) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.25 307.21 Td (42.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 307.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 307.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.25 307.21 Td (7,316) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 307.21 Td (18.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 307.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 293.21 Td (2020) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.50 293.21 Td (16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 272.25 293.21 Td (181,546) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.75 293.21 Td (8.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 293.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 293.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.25 293.21 Td (4,569) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 293.21 Td (1) Tj ET Q q 0 0 0 rg BT 543.75 293.21 Td (1.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 293.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 279.21 Td (2021) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.50 279.21 Td (14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 272.25 279.21 Td (279,010) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.25 279.21 Td (12.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 279.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 279.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.25 279.21 Td (7,571) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 279.21 Td (18.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 279.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 265.21 Td (2022) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.50 265.21 Td (1) Tj ET Q q 0 0 0 rg BT 211.00 265.21 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.75 265.21 Td (73,910) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.75 265.21 Td (3.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 265.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 265.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.25 265.21 Td (2,453) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.75 265.21 Td (6.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 265.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 251.21 Td (2023) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.00 251.21 Td (9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 272.25 251.21 Td (1) Tj ET Q q 0 0 0 rg BT 276.75 251.21 Td (18,565) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.75 251.21 Td (5.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 251.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 251.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.25 251.21 Td (2,357) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.75 251.21 Td (5.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 251.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 237.21 Td (2024) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.00 237.21 Td (8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.75 237.21 Td (86,248) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.75 237.21 Td (3.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 237.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 237.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.25 237.21 Td (2,663) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.75 237.21 Td (6.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 237.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 223.21 Td (2025) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.00 223.21 Td (5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.75 223.21 Td (14,898) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.75 223.21 Td (0.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 223.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 223.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.00 223.21 Td (448) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.75 223.21 Td (1.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 223.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 209.21 Td (2026) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.00 209.21 Td (4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.75 209.21 Td (13,903) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.75 209.21 Td (0.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 209.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 209.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.00 209.21 Td (454) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.75 209.21 Td (1.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 209.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 195.21 Td (2027) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.00 195.21 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.25 195.21 Td (2,270) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.75 195.21 Td (0.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 195.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 195.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.50 195.21 Td (78) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.75 195.21 Td (0.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 195.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 181.21 Td (Thereafter) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.50 181.21 Td (10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 272.25 181.21 Td (328,847) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.25 181.21 Td (14.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 181.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 181.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.25 181.21 Td (8,166) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 181.21 Td (20.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 181.21 Td (%) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 99 0 obj <> endobj 100 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (47) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 740.25 Td (Market Concentration) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 716.25 Td (The following charts depict the location of our real estate investments as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.02 716.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.60 716.25 Td (. ) Tj ET Q q 0 0 0 rg BT 456.55 716.25 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.59 716.25 Td (65%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.92 716.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (our portfolio is located throughout the United States and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.77 704.25 Td (35%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.10 704.25 Td ( is located internationally \(based on our pro rata ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.25 Td (share of the estimated value of each of the real estate investments\). Estimated values were determined using the ) Tj ET Q q 0 0 0 rg BT 500.45 692.25 Td (August 2017 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.25 Td (appraised values and the purchase price for Queen) Tj ET Q q 0 0 0 rg BT 253.58 680.25 Td (s Court Student Residences.) Tj ET Q /GS0 gs q 474.00 0 0 174.00 69.00 477.25 cm /I21 Do Q BT /F1 10.00 Tf ET /GS0 gs q 512.90 0 0 201.60 49.50 251.64 cm /I22 Do Q BT /F1 10.00 Tf ET endstream endobj 101 0 obj <> endobj 102 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (48) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 728.25 Td (Industry Concentration) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 704.25 Td (The following table provides a summary of the industry concentration of the tenants in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.69 704.25 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.68 704.25 Td ( commercial properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.25 Td (based on their leased square footage as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.32 692.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.91 692.25 Td (:) Tj ET Q /GS0 gs q 474.00 0 0 174.00 69.00 501.25 cm /I23 Do Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 494.25 Td (* ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 494.25 Td (Other is made up of industries which individually comprise less than 3% of our portfolio and includes: ) Tj ET Q q 0 0 0 rg BT 497.93 494.25 Td (Administrative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 482.25 Td (and Support Services, Construction, Health Care, Oil and Gas, Other Professional Services, Other Services, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 470.25 Td (Wholesale ) Tj ET Q q 0 0 0 rg BT 130.02 470.25 Td (T) Tj ET Q q 0 0 0 rg BT 135.78 470.25 Td (rade.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 446.25 Td (Item3.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 79.99 446.25 Td (Legal Proceedings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 422.25 Td (From time to time in the ordinary course of business, we or our subsidiaries may become subject to legal proceedings, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.25 Td (claims or disputes. ) Tj ET Q q 0 0 0 rg BT 129.16 410.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.60 410.25 Td (March29, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.20 410.25 Td (, neither we nor any of our subsidiaries were a party to any material pending legal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.25 Td (proceedings.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 374.25 Td (Item4.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 79.99 374.25 Td (Mine Safety Disclosures) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 350.25 Td (Not applicable.) Tj ET Q endstream endobj 103 0 obj <> endobj 104 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (49) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.85 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 293.22 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 307.31 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 313.80 742.25 Td (II) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 718.25 Td (Item5.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 79.49 718.25 Td (Market for Registrant) Tj ET Q q 0 0 0 rg BT 177.09 718.25 Td (s Common Equity) Tj ET Q q 0 0 0 rg BT 250.62 718.25 Td (, Related Stockholder Matters and Issuer Purchases of Equity Securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (Market Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 670.25 Td (The table below discloses each class of shares of our common stock outstanding as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.69 670.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.27 670.25 Td (, which were in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (the aggregate held by a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.84 658.25 Td (8,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.34 658.25 Td ( stockholders \(in thousands\). ) Tj ET Q q 0 0 0 rg BT 318.14 658.25 Td (The number of stockholders is based on the records of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (registrar and transfer agent. ) Tj ET Q q 0 0 0 rg BT 164.27 646.25 Td (There is no established public trading market for our common stock. ) Tj ET Q q 0 0 0 rg BT 443.18 646.25 Td (Therefore, there is a risk that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (a stockholder may not be able to sell our stock at a time or price acceptable to the stockholder) Tj ET Q q 0 0 0 rg BT 423.82 634.25 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 609.75 112.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 162.00 609.75 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.00 609.75 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.00 609.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 609.75 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 609.75 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 609.75 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 609.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 609.75 50.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 162 609.75 m 210 609.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210 609.75 m 257 609.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 609.75 m 308 609.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308 609.75 m 356 609.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 609.75 m 409 609.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 609.75 m 462 609.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 609.75 m 513 609.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 609.75 m 563 609.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 162 609.75 m 210 609.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210 609.75 m 257 609.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 609.75 m 308 609.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308 609.75 m 356 609.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 609.75 m 409 609.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 609.75 m 462 609.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 609.75 m 513 609.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 609.75 m 563 609.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 169.70 614.43 Td (Class ) Tj ET Q q 0 0 0 rg BT 194.89 614.43 Td (T) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.55 614.43 Td (Class S) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.70 614.43 Td (Class D) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 316.90 614.43 Td (Class I) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.40 614.43 Td (Class ) Tj ET Q q 0 0 0 rg BT 387.41 614.43 Td (AX) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.50 614.43 Td (Class ) Tj ET Q q 0 0 0 rg BT 440.69 614.43 Td (TX) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.80 614.43 Td (Class IX) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 518.70 614.43 Td (Class JX) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 599.42 Td (Shares outstanding) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.50 599.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.00 599.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.00 599.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 599.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.25 599.42 Td (19,206) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.25 599.42 Td (19,958) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.00 599.42 Td (92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.50 599.42 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 571.25 Td (T) Tj ET Q q 0 0 0 rg BT 72.91 571.25 Td (o assist the Financial Industry Regulatory ) Tj ET Q q 0 0 0 rg BT 241.22 571.25 Td (Authority \(FINRA\) members and their associated persons that participate in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.25 Td (our public of) Tj ET Q q 0 0 0 rg BT 100.97 559.25 Td (ferings in their ef) Tj ET Q q 0 0 0 rg BT 169.93 559.25 Td (fort to comply with National ) Tj ET Q q 0 0 0 rg BT 286.31 559.25 Td (Association of Securities Dealers \(NASD\) Rule 2340, we disclose ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.25 Td (in each ) Tj ET Q q 0 0 0 rg BT 80.04 547.25 Td (Annual Report on Form 10-K a per share estimated value of the shares, the method by which it was developed and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.25 Td (date of the data used to develop the estimated value. In addition, we prepare annual statements of estimated share values to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.25 Td (assist fiduciaries of retirement plans subject to the annual reporting requirements of ERISA) Tj ET Q q 0 0 0 rg BT 414.40 523.25 Td ( in the preparation of their reports ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.25 Td (relating to an investment in our shares and such statements should not be used for any other purpose. Based on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 499.25 Td (recommendation from the valuation committee of our board of directors, on September 26, 2017, our board of directors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 487.25 Td (determined a new net asset value \(NA) Tj ET Q q 0 0 0 rg BT 204.81 487.25 Td (V\) per share of our common stock of $9.69 as of ) Tj ET Q q 0 0 0 rg BT 405.87 487.25 Td (August 31, 2017. ) Tj ET Q q 0 0 0 rg BT 477.08 487.25 Td (The NA) Tj ET Q q 0 0 0 rg BT 508.28 487.25 Td (V) Tj ET Q q 0 0 0 rg BT 515.33 487.25 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.25 Td (August 31, 2017 represented a 0.4% increase over the previously determined NA) Tj ET Q q 0 0 0 rg BT 372.83 475.25 Td (V) Tj ET Q q 0 0 0 rg BT 379.88 475.25 Td ( per share of $9.65 as of December 31, 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.25 Td (The new NA) Tj ET Q q 0 0 0 rg BT 99.86 463.25 Td (V) Tj ET Q q 0 0 0 rg BT 106.90 463.25 Td ( per share was determined in accordance with our valuation policy in ef) Tj ET Q q 0 0 0 rg BT 392.72 463.25 Td (fect prior to the Restructuring and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.25 Td (utilizing guidelines established by the Investment Program ) Tj ET Q q 0 0 0 rg BT 286.40 451.25 Td (Association Practice Guideline 2013-01 V) Tj ET Q q 0 0 0 rg BT 471.64 451.25 Td (aluation of Publicly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.25 Td (Registered, Non-Listed REIT) Tj ET Q q 0 0 0 rg BT 166.83 439.25 Td (s issued on ) Tj ET Q q 0 0 0 rg BT 217.11 439.25 Td (April 29, 2013. For additional information regarding the valuation methodologies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.25 Td (and assumptions used to determine our NA) Tj ET Q q 0 0 0 rg BT 220.96 427.25 Td (V) Tj ET Q q 0 0 0 rg BT 228.00 427.25 Td ( as of ) Tj ET Q q 0 0 0 rg BT 251.61 427.25 Td (August 31, 2017, please refer to our Current Report on Form 8-K filed on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.25 Td (October 3, 2017 with the SEC. ) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 177.45 422.18 384.22 -9.09 re f /GS0 gs q 0 0 0 rg BT 177.36 415.25 Td (W) Tj ET Q q 0 0 0 rg BT 186.00 415.25 Td (e cannot assure you that this NA) Tj ET Q q 0 0 0 rg BT 314.68 415.25 Td (V) Tj ET Q q 0 0 0 rg BT 321.72 415.25 Td ( per share, or the method used to establish it, complies with ) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 49.50 410.18 129.15 -9.09 re f /GS0 gs q 0 0 0 rg BT 49.50 403.25 Td (the ERISA) Tj ET Q q 0 0 0 rg BT 92.56 403.25 Td ( or IRS requirements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 379.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 379.25 Td (e are of) Tj ET Q q 0 0 0 rg BT 105.93 379.25 Td (fering the shares related to our Follow-On Of) Tj ET Q q 0 0 0 rg BT 287.09 379.25 Td (fering \(Follow-On Of) Tj ET Q q 0 0 0 rg BT 378.00 379.25 Td (fering Shares\) at the transaction price, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.25 Td (plus applicable upfront selling commissions and dealer manager fees. ) Tj ET Q q 0 0 0 rg BT 329.79 367.25 Td (The transaction price generally will be equal to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.25 Td (most recently determined NA) Tj ET Q q 0 0 0 rg BT 166.79 355.25 Td (V) Tj ET Q q 0 0 0 rg BT 173.83 355.25 Td ( per share as of the end of the prior month. ) Tj ET Q q 0 0 0 rg BT 348.87 355.25 Td (W) Tj ET Q q 0 0 0 rg BT 357.51 355.25 Td (e began determining an NA) Tj ET Q q 0 0 0 rg BT 466.74 355.25 Td (V) Tj ET Q q 0 0 0 rg BT 473.78 355.25 Td ( per share on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.25 Td (monthly basis as of the end of January 2018. However) Tj ET Q q 0 0 0 rg BT 266.83 343.25 Td (, we may of) Tj ET Q q 0 0 0 rg BT 313.86 343.25 Td (fer shares at a price that we believe reflects the NA) Tj ET Q q 0 0 0 rg BT 516.91 343.25 Td (V) Tj ET Q q 0 0 0 rg BT 523.95 343.25 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 331.25 Td (share of such stock more appropriately than the prior month) Tj ET Q q 0 0 0 rg BT 291.93 331.25 Td (s NA) Tj ET Q q 0 0 0 rg BT 311.48 331.25 Td (V) Tj ET Q q 0 0 0 rg BT 318.52 331.25 Td ( per share, including by updating a previously disclosed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.25 Td (transaction price, in cases where we believe there has been a material change \(positive or negative\) to our NA) Tj ET Q q 0 0 0 rg BT 487.19 319.25 Td (V) Tj ET Q q 0 0 0 rg BT 494.23 319.25 Td ( per share since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 307.25 Td (the end of the prior month. Subsequent to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.58 307.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.17 307.25 Td (, with the authorization of our board of directors, we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 295.25 Td (determined NA) Tj ET Q q 0 0 0 rg BT 110.13 295.25 Td (Vs per share as of January 31, 2018 and February 28, 2018 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.24 295.25 Td ($9.78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.74 295.25 Td ( per share and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.05 295.25 Td ($9.78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.55 295.25 Td ( per share, respectively) Tj ET Q q 0 0 0 rg BT 554.08 295.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.25 Td (These NA) Tj ET Q q 0 0 0 rg BT 89.03 283.25 Td (Vs per share as of January 31, 2018 and February 28, 2018 were determined in accordance with our valuation policy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.25 Td (adopted in connection with the Restructuring and utilizing guidelines established by the Investment Program ) Tj ET Q q 0 0 0 rg BT 486.08 271.25 Td (Association ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 259.25 Td (Practice Guideline 2013-01 V) Tj ET Q q 0 0 0 rg BT 185.02 259.25 Td (aluation of Publicly Registered, Non-Listed REIT) Tj ET Q q 0 0 0 rg BT 383.72 259.25 Td (s issued on ) Tj ET Q q 0 0 0 rg BT 434.00 259.25 Td (April 29, 2013. For additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.25 Td (information regarding the valuation methodologies and assumptions used to determine our NA) Tj ET Q q 0 0 0 rg BT 427.30 247.25 Td (V) Tj ET Q q 0 0 0 rg BT 434.34 247.25 Td ( as of January 31, 2018 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.25 Td (February 28, 2018, please refer to the Supplements to our Prospectus dated December 6, 2017, on February 13, 2018 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.25 Td (March 15, 2018, respectively) Tj ET Q q 0 0 0 rg BT 165.76 223.25 Td (, with the SEC. ) Tj ET Q q 0 0 0 rg BT 231.41 223.25 Td (The below information describes the valuation methodologies, assumptions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.25 Td (limitations used in determining our most recent NA) Tj ET Q q 0 0 0 rg BT 254.56 211.25 Td (V) Tj ET Q q 0 0 0 rg BT 261.60 211.25 Td ( as of February 28, 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 187.25 Td (Our board of directors has appointed a valuation committee comprised of independent directors, which we refer to herein ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.25 Td (as the valuation committee, to be responsible for the oversight of the valuation process. ) Tj ET Q q 0 0 0 rg BT 403.39 175.25 Td (The valuation committee has adopted a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.25 Td (valuation policy) Tj ET Q q 0 0 0 rg BT 113.56 163.25 Td (, as approved by our board of directors, and as amended from time to time, that contains a comprehensive set of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.25 Td (methodologies to be used in connection with the calculation of our NA) Tj ET Q q 0 0 0 rg BT 331.76 151.25 Td (V) Tj ET Q q 0 0 0 rg BT 337.69 151.25 Td (. Our most recent NA) Tj ET Q q 0 0 0 rg BT 422.77 151.25 Td (V) Tj ET Q q 0 0 0 rg BT 429.81 151.25 Td ( per share for each share class, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.25 Td (which is updated as of the last calendar day of each month, is posted on our website at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 396.90 139.25 Td (www) Tj ET Q q 0 0 0 rg BT 416.17 139.25 Td (.hinessecurities.com/hgit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.60 139.25 Td ( and is also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.25 Td (available on our toll-free information line at \(888\) 220-6121. Please see V) Tj ET Q q 0 0 0 rg BT 349.40 127.25 Td (aluation Policy and Procedures in our Prospectus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.25 Td (dated December 6, 2017 for a more detailed description of our valuation procedures, including important disclosure regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 103.25 Td (interim real property valuations provided by our ) Tj ET Q q 0 0 0 rg BT 244.17 103.25 Td (Advisor and reviewed by ) Tj ET Q q 0 0 0 rg BT 346.93 103.25 Td (Altus Group U.S., Inc., or ) Tj ET Q q 0 0 0 rg BT 452.48 103.25 Td (Altus, the independent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 91.25 Td (valuation firm we have engaged to assist in the determination of our NA) Tj ET Q q 0 0 0 rg BT 337.58 91.25 Td (V) Tj ET Q q 0 0 0 rg BT 344.62 91.25 Td ( per share and to provide us with a conclusion with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 79.25 Td (respect to the reasonableness of our NA) Tj ET Q q 0 0 0 rg BT 207.60 79.25 Td (V) Tj ET Q q 0 0 0 rg BT 214.64 79.25 Td ( per share for each class of shares of our common stock. ) Tj ET Q q 0 0 0 rg BT 440.96 79.25 Td (All parties engaged by us in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 67.25 Td (the calculation of our NA) Tj ET Q q 0 0 0 rg BT 150.40 67.25 Td (V) Tj ET Q q 0 0 0 rg BT 156.33 67.25 Td (, including the ) Tj ET Q q 0 0 0 rg BT 215.77 67.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 247.59 67.25 Td (, are subject to the oversight of our valuation committee. Generally) Tj ET Q q 0 0 0 rg BT 515.19 67.25 Td (, all of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 55.25 Td (real properties are appraised once each calendar year by third party appraisal firms in accordance with our valuation guidelines ) Tj ET Q endstream endobj 105 0 obj <> endobj 106 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (and such appraisals are reviewed by ) Tj ET Q q 0 0 0 rg BT 195.55 742.10 Td (Altus. ) Tj ET Q q 0 0 0 rg BT 224.17 742.10 Td (Altus concluded that the new NA) Tj ET Q q 0 0 0 rg BT 356.46 742.10 Td (V) Tj ET Q q 0 0 0 rg BT 363.50 742.10 Td ( per share of our common stock as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (February28, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.10 730.10 Td ( set forth below is reasonable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 706.10 Td (The ) Tj ET Q q 0 0 0 rg BT 84.96 706.10 Td (table ) Tj ET Q q 0 0 0 rg BT 106.30 706.10 Td (below ) Tj ET Q q 0 0 0 rg BT 132.65 706.10 Td (sets ) Tj ET Q q 0 0 0 rg BT 149.56 706.10 Td (forth ) Tj ET Q q 0 0 0 rg BT 170.90 706.10 Td (the ) Tj ET Q q 0 0 0 rg BT 185.03 706.10 Td (calculation ) Tj ET Q q 0 0 0 rg BT 230.81 706.10 Td (of ) Tj ET Q q 0 0 0 rg BT 241.04 706.10 Td (our ) Tj ET Q q 0 0 0 rg BT 256.28 706.10 Td (NA) Tj ET Q q 0 0 0 rg BT 269.44 706.10 Td (V) Tj ET Q q 0 0 0 rg BT 276.48 706.10 Td ( ) Tj ET Q q 0 0 0 rg BT 278.39 706.10 Td (per ) Tj ET Q q 0 0 0 rg BT 293.07 706.10 Td (share ) Tj ET Q q 0 0 0 rg BT 316.07 706.10 Td (of ) Tj ET Q q 0 0 0 rg BT 326.31 706.10 Td (each ) Tj ET Q q 0 0 0 rg BT 346.54 706.10 Td (class ) Tj ET Q q 0 0 0 rg BT 367.89 706.10 Td (of ) Tj ET Q q 0 0 0 rg BT 378.13 706.10 Td (shares ) Tj ET Q q 0 0 0 rg BT 405.02 706.10 Td (of ) Tj ET Q q 0 0 0 rg BT 415.26 706.10 Td (our ) Tj ET Q q 0 0 0 rg BT 430.50 706.10 Td (common ) Tj ET Q q 0 0 0 rg BT 467.41 706.10 Td (stock ) Tj ET Q q 0 0 0 rg BT 490.42 706.10 Td (as ) Tj ET Q q 0 0 0 rg BT 500.66 706.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.90 706.10 Td (February28, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 694.10 Td ( ) Tj ET Q q 0 0 0 rg BT 72.00 694.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 694.10 Td (January31, ) Tj ET Q q 0 0 0 rg BT 137.54 694.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.54 694.10 Td ( ) Tj ET Q q 0 0 0 rg BT 160.04 694.10 Td (\(the ) Tj ET Q q 0 0 0 rg BT 178.08 694.10 Td (NA) Tj ET Q q 0 0 0 rg BT 191.24 694.10 Td (V) Tj ET Q q 0 0 0 rg BT 198.28 694.10 Td ( ) Tj ET Q q 0 0 0 rg BT 200.78 694.10 Td (per ) Tj ET Q q 0 0 0 rg BT 216.05 694.10 Td (share ) Tj ET Q q 0 0 0 rg BT 239.65 694.10 Td (is ) Tj ET Q q 0 0 0 rg BT 248.82 694.10 Td (the ) Tj ET Q q 0 0 0 rg BT 263.53 694.10 Td (same ) Tj ET Q q 0 0 0 rg BT 286.58 694.10 Td (for ) Tj ET Q q 0 0 0 rg BT 300.74 694.10 Td (each ) Tj ET Q q 0 0 0 rg BT 321.56 694.10 Td (class ) Tj ET Q q 0 0 0 rg BT 343.49 694.10 Td (of ) Tj ET Q q 0 0 0 rg BT 354.32 694.10 Td (shares ) Tj ET Q q 0 0 0 rg BT 381.81 694.10 Td (of ) Tj ET Q q 0 0 0 rg BT 392.64 694.10 Td (our ) Tj ET Q q 0 0 0 rg BT 408.47 694.10 Td (common ) Tj ET Q q 0 0 0 rg BT 445.97 694.10 Td (stock\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 48.75 642.60 227.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.75 642.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.75 642.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.75 642.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.75 642.60 6.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.75 642.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.75 642.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.75 642.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.75 616.60 227.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.75 616.60 68.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.75 616.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.75 616.60 68.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.75 616.60 6.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.75 616.60 68.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.75 616.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.75 616.60 68.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.75 578.60 227.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.75 578.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.75 578.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.75 578.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.75 578.60 6.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.75 578.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.75 578.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.75 578.60 68.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.75 670.6 m 343.75 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.75 670.6 m 347.75 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.75 670.6 m 415.75 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.75 670.6 m 489.75 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.75 670.6 m 493.75 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.75 670.6 m 561.75 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.75 642.6 m 343.75 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.75 642.6 m 415.75 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.75 642.6 m 489.75 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.75 642.6 m 561.75 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.75 642.6 m 343.75 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.75 642.6 m 415.75 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.75 642.6 m 489.75 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.75 642.6 m 561.75 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.75 591.6 m 343.75 591.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.75 591.6 m 415.75 591.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.75 591.6 m 489.75 591.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.75 591.6 m 561.75 591.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 306.20 674.33 Td (February 28, 2018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.70 674.33 Td (January 31, 2018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.35 661.28 Td (Gr) Tj ET Q q 0 0 0 rg BT 290.48 661.28 Td (oss) Tj ET Q q 0 0 0 rg BT 305.39 661.28 Td (Amount) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 360.15 647.28 Td (Per) Tj ET Q q 0 0 0 rg BT 375.05 647.28 Td ( Shar) Tj ET Q q 0 0 0 rg BT 397.93 647.28 Td (e) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.35 661.28 Td (Gr) Tj ET Q q 0 0 0 rg BT 436.48 661.28 Td (oss) Tj ET Q q 0 0 0 rg BT 451.39 661.28 Td (Amount) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.15 647.28 Td (Per) Tj ET Q q 0 0 0 rg BT 521.05 647.28 Td ( Shar) Tj ET Q q 0 0 0 rg BT 543.93 647.28 Td (e) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.80 647.28 Td (\(in thousands\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.80 647.28 Td (\(in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 634.17 Td (Real estate investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.25 633.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.40 633.17 Td (758,781) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.25 633.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.40 633.17 Td (19.26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.25 633.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.40 633.17 Td (756,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.25 633.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.40 633.17 Td (19.22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 621.17 Td (Other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.40 620.17 Td (26,309) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.40 620.17 Td (0.67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.40 620.17 Td (29,570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.40 620.17 Td (0.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 607.17 Td (Debt obligations, other liabilities and noncontrolling) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 597.17 Td (interests) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.05 596.32 Td (\(399,824) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.90 596.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.05 596.32 Td (\(10.15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.90 596.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.05 596.32 Td (\(401,012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.90 596.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.05 596.32 Td (\(10.19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.90 596.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 583.17 Td (NA) Tj ET Q q 0 0 0 rg BT 68.05 583.17 Td (V) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.25 582.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.40 582.17 Td (385,266) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.25 582.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.40 582.17 Td (9.78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.25 582.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.40 582.17 Td (385,016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.25 582.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.40 582.17 Td (9.78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 570.17 Td (Shares outstanding) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.40 569.17 Td (39,402) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.40 569.17 Td (39,360) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 539.10 Td (The valuations of our real properties as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.44 539.10 Td (February28, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.04 539.10 Td (were reviewed by ) Tj ET Q q 0 0 0 rg BT 391.56 539.10 Td (Altus in accordance with our valuation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (procedures. Certain key assumptions that were used in the discounted cash flow analysis, which were determined by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (Advisor and reviewed by ) Tj ET Q q 0 0 0 rg BT 152.25 515.10 Td (Altus, are set forth in the following table based on weighted-averages by property type. ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 47.50 468.60 197.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 244.50 468.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.50 468.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 468.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 468.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 468.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 468.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 468.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.50 468.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 468.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 468.60 84.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 47.50 440.60 197.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 244.50 440.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.50 440.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 440.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 440.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 440.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 440.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 440.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.50 440.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 440.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 440.60 84.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248.5 468.6 m 301.5 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 468.6 m 358.5 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 468.6 m 415.5 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419.5 468.6 m 472.5 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 468.6 m 560.5 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248.5 468.6 m 301.5 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 468.6 m 358.5 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 468.6 m 415.5 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419.5 468.6 m 472.5 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 468.6 m 560.5 468.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 261.95 473.28 Td (Office) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.60 473.28 Td (Industrial) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.20 473.28 Td (Retail) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.35 483.28 Td (Multi-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 473.28 Td (Family) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 496.55 483.28 Td (W) Tj ET Q q 0 0 0 rg BT 506.00 483.28 Td (eighted-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 488.70 473.28 Td (A) Tj ET Q q 0 0 0 rg BT 495.18 473.28 Td (verageBasis) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 459.27 Td (Exit capitalization rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.55 459.72 Td (6.49%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.55 459.72 Td (6.22%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.55 459.72 Td (6.50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.05 459.72 Td (6.18%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.05 459.72 Td (6.38%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 445.27 Td (Discount rate / internal rate of return \(IRR\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.55 445.72 Td (7.09%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.55 445.72 Td (7.99%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.55 445.72 Td (7.39%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.05 445.72 Td (8.20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.05 445.72 Td (7.53%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 430.27 Td (A) Tj ET Q q 0 0 0 rg BT 58.48 430.27 Td (verage holding period \(years\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.75 430.72 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.75 430.72 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.75 430.72 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.25 431.22 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.25 430.72 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 399.70 Td (A) Tj ET Q q 0 0 0 rg BT 79.17 399.70 Td ( change in the rates used would impact the calculation of the value of our real properties. For example, assuming all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.70 Td (other factors remain constant, the changes listed below would result in the following ef) Tj ET Q q 0 0 0 rg BT 397.56 387.70 Td (fects on the value of our real properties:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 48.75 341.20 102.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 150.75 341.20 5.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 155.75 341.20 66.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 221.75 341.20 5.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.75 341.20 62.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.75 341.20 5.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.75 341.20 62.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.75 341.20 5.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.75 341.20 62.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.75 341.20 5.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.75 341.20 53.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.75 341.20 5.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.75 341.20 76.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.75 293.20 102.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 150.75 293.20 5.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 155.75 293.20 66.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 221.75 293.20 5.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.75 293.20 62.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.75 293.20 5.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.75 293.20 62.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.75 293.20 5.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.75 293.20 62.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.75 293.20 5.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.75 293.20 53.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.75 293.20 5.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.75 293.20 76.00 -24.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 48.75 341.20000000000005 m 150.75 341.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 155.75 341.20000000000005 m 221.75 341.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226.75 341.20000000000005 m 288.75 341.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.75 341.20000000000005 m 355.75 341.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.75 341.20000000000005 m 422.75 341.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.75 341.20000000000005 m 480.75 341.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.75 341.20000000000005 m 561.75 341.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226.75 341.20000000000005 m 288.75 341.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.75 341.20000000000005 m 355.75 341.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.75 341.20000000000005 m 422.75 341.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.75 341.20000000000005 m 480.75 341.20000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.75 341.20000000000005 m 561.75 341.20000000000005 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.25 345.88 Td (Input) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 161.25 355.88 Td (Hypothetical) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 172.35 345.88 Td (Change) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 244.70 345.88 Td (Office) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.35 345.88 Td (Industrial) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 378.95 345.88 Td (Retail) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.60 355.88 Td (Multi-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.25 345.88 Td (Family) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 501.80 355.88 Td (W) Tj ET Q q 0 0 0 rg BT 511.25 355.88 Td (eighted-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 491.20 345.88 Td (A) Tj ET Q q 0 0 0 rg BT 497.68 345.88 Td (verage) Tj ET Q q 0 0 0 rg BT 528.31 345.88 Td (V) Tj ET Q q 0 0 0 rg BT 534.62 345.88 Td (alues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.25 331.87 Td (Exit capitalization rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.25 321.87 Td (\(weighted-average\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.80 332.32 Td (0.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.50 322.32 Td (decrease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.30 327.32 Td (2.69%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.30 327.32 Td (2.98%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.30 327.32 Td (2.22%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.30 327.32 Td (3.1) Tj ET Q q 0 0 0 rg BT 453.80 327.32 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.30 327.32 Td (2.70%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.80 307.87 Td (0.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.35 297.87 Td (increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.00 303.32 Td (\(2.51\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.00 303.32 Td (\(2.74\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 303.32 Td (\(2.06\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 303.32 Td (\(2.98\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 303.32 Td (\(2.54\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.25 283.87 Td (Discount rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.25 273.87 Td (\(weighted-average\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.80 284.32 Td (0.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.50 274.32 Td (decrease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.30 279.32 Td (1.99%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.30 279.32 Td (1.61%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.30 279.32 Td (1.82%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.30 279.32 Td (1.81%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.30 279.32 Td (1.86%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.80 259.87 Td (0.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.35 249.87 Td (increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.00 255.32 Td (\(1.97\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.00 255.32 Td (\(1.57\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 255.32 Td (\(1.78\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 255.32 Td (\(1.79\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 255.32 Td (\(1.83\)%) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 67.50 221.70 Td (Limitations of NA) Tj ET Q q 0 0 0 rg BT 138.13 221.70 Td (V) Tj ET Q q 0 0 0 rg BT 144.05 221.70 Td ( Per Shar) Tj ET Q q 0 0 0 rg BT 182.01 221.70 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 197.70 Td (As with any valuation methodology) Tj ET Q q 0 0 0 rg BT 210.17 197.70 Td (, the methodology used to determine the NA) Tj ET Q q 0 0 0 rg BT 386.62 197.70 Td (V) Tj ET Q q 0 0 0 rg BT 393.66 197.70 Td ( per share was based upon a number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.70 Td (assumptions, estimates and judgments that may not be accurate or complete. Further) Tj ET Q q 0 0 0 rg BT 389.01 185.70 Td (, dif) Tj ET Q q 0 0 0 rg BT 404.94 185.70 Td (ferent parties using dif) Tj ET Q q 0 0 0 rg BT 495.01 185.70 Td (ferent property-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.70 Td (specific and general real estate and capital market assumptions, estimates, judgments and standards could derive an estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.70 Td (NA) Tj ET Q q 0 0 0 rg BT 62.65 161.70 Td (V) Tj ET Q q 0 0 0 rg BT 69.70 161.70 Td ( per share that could be significantly dif) Tj ET Q q 0 0 0 rg BT 228.63 161.70 Td (ferent from the NA) Tj ET Q q 0 0 0 rg BT 304.26 161.70 Td (V) Tj ET Q q 0 0 0 rg BT 311.30 161.70 Td ( per share. ) Tj ET Q q 0 0 0 rg BT 357.48 161.70 Td (The NA) Tj ET Q q 0 0 0 rg BT 388.68 161.70 Td (V) Tj ET Q q 0 0 0 rg BT 395.73 161.70 Td ( per share is not intended to represent the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.70 Td (fair value of our assets less liabilities in accordance with U.S. generally accepted accounting principles, and such estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.70 Td (NA) Tj ET Q q 0 0 0 rg BT 62.65 137.70 Td (V) Tj ET Q q 0 0 0 rg BT 69.70 137.70 Td ( per share is not a representation, warranty or guarantee that \(i\)a stockholder would be able to realize the NA) Tj ET Q q 0 0 0 rg BT 505.73 137.70 Td (V) Tj ET Q q 0 0 0 rg BT 512.77 137.70 Td ( per share if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.70 Td (such stockholder attempts to sell his or her shares; \(ii\) a stockholder would ultimately realize distributions per share equal to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.70 Td (NA) Tj ET Q q 0 0 0 rg BT 62.65 113.70 Td (V) Tj ET Q q 0 0 0 rg BT 69.70 113.70 Td ( per share upon our liquidation or sale; \(iii\) shares of our common stock would trade at the NA) Tj ET Q q 0 0 0 rg BT 447.20 113.70 Td (V) Tj ET Q q 0 0 0 rg BT 454.24 113.70 Td ( per share on a national ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.70 Td (securities exchange; \(iv\) a third party would of) Tj ET Q q 0 0 0 rg BT 236.76 101.70 Td (fer the NA) Tj ET Q q 0 0 0 rg BT 278.23 101.70 Td (V) Tj ET Q q 0 0 0 rg BT 285.27 101.70 Td ( per share in an arm) Tj ET Q q 0 0 0 rg BT 367.18 101.70 Td (s-length transaction to purchase all or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.70 Td (substantially all of our shares of common stock; or \(v\) the methodologies used to determine the NA) Tj ET Q q 0 0 0 rg BT 446.46 89.70 Td (V) Tj ET Q q 0 0 0 rg BT 453.50 89.70 Td ( per share would be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.70 Td (acceptable to FINRA. In addition, we can make no claim as to whether the NA) Tj ET Q q 0 0 0 rg BT 366.17 77.70 Td (V) Tj ET Q q 0 0 0 rg BT 373.21 77.70 Td ( per share will or will not satisfy the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.70 Td (annual valuation requirements under ERISA) Tj ET Q q 0 0 0 rg BT 226.68 65.70 Td ( and the Code with respect to employee benefit plans subject to ERISA) Tj ET Q q 0 0 0 rg BT 510.50 65.70 Td ( and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.70 Td (retirement plans or accounts subject to Section 4975 of the Code that are investing in shares of our common stock.) Tj ET Q endstream endobj 107 0 obj <> endobj 108 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 730.10 Td (Further) Tj ET Q q 0 0 0 rg BT 96.54 730.10 Td (, the NA) Tj ET Q q 0 0 0 rg BT 129.41 730.10 Td (V) Tj ET Q q 0 0 0 rg BT 136.45 730.10 Td ( per share was calculated as of a moment in time, and, although the value of shares of our common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (will fluctuate over time as a result of, among other things, developments related to individual assets, changes in the real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (and capital markets, acquisitions or dispositions of assets, the distribution of proceeds from the sale of real estate to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (stockholders and changes in corporate policies such as our distribution level relative to earnings, we do not expect to update the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (NA) Tj ET Q q 0 0 0 rg BT 62.65 682.10 Td (V) Tj ET Q q 0 0 0 rg BT 69.70 682.10 Td ( per share more regular than on a monthly basis. ) Tj ET Q q 0 0 0 rg BT 266.86 682.10 Td (As a result, stockholders should not rely on the NA) Tj ET Q q 0 0 0 rg BT 470.54 682.10 Td (V) Tj ET Q q 0 0 0 rg BT 477.59 682.10 Td ( per share as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (accurate measure of the then-current value of shares of our common stock in making a decision to buy or sell shares of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (common stock, including whether to invest in the of) Tj ET Q q 0 0 0 rg BT 257.89 658.10 Td (fering, whether to reinvest distributions by participating in our distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (reinvestment plan and whether to request redemption under our share redemption program.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 67.50 622.10 Td (Prior Engagement of Independent V) Tj ET Q q 0 0 0 rg BT 211.36 622.10 Td (aluation Firms) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 598.10 Td (Altus and/or certain other independent third-party appraisers have provided, and are expected to continue to provide, real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (estate appraisal, appraisal management and real estate valuation advisory services to us and our af) Tj ET Q q 0 0 0 rg BT 441.11 586.10 Td (filiates and have received, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (and are expected to continue to receive, fees in connection with such services. ) Tj ET Q q 0 0 0 rg BT 363.54 574.10 Td (Altus and certain of the independent third-party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (appraisers and their respective af) Tj ET Q q 0 0 0 rg BT 180.92 562.10 Td (filiates may from time to time in the future perform other commercial real estate and financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (advisory services for us and our af) Tj ET Q q 0 0 0 rg BT 187.05 550.10 Td (filiates, or in transactions related to the properties that are the subjects of the valuations being ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (performed for us, or otherwise, so long as such other services do not adversely af) Tj ET Q q 0 0 0 rg BT 373.67 538.10 Td (fect the independence of ) Tj ET Q q 0 0 0 rg BT 473.62 538.10 Td (Altus or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (applicable appraiser as certified in the applicable appraisal report.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (Distributions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 478.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.54 478.10 Td (ith the authorization of our board of directors, we declared distributions daily through December 31, 2017. Beginning in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (January 2018 we have and intend to continue to accrue and pay regular distributions on a monthly basis as of monthly record ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (dates. ) Tj ET Q q 0 0 0 rg BT 77.37 454.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.40 454.10 Td (ith the authorization of our board of directors, we declared monthly distributions from January 2018 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.10 442.10 Td ( at a gross distribution rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.80 442.10 Td ($0.05083) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.30 442.10 Td ( per month for each share class less any applicable distribution and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (stockholder servicing fees. Distributions will be made on all classes of shares of our common stock, including any outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (IPO Shares at the same time. ) Tj ET Q q 0 0 0 rg BT 169.48 418.10 Td (All distributions were or will be paid in cash or reinvested in shares of our common stock for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (those participating in our distribution reinvestment plan and have been or will be paid or issued, respectively) Tj ET Q q 0 0 0 rg BT 483.46 406.10 Td (, on the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (business day following the completion of the month to which they relate. Distributions reinvested pursuant to our distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (reinvestment plan were or will be reinvested in shares of the same class as the shares on which the distributions are being made. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (Some or all of the cash distributions may be paid from sources other than cash flows from operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 346.10 Td (The tables below outline the net cash distributions declared for each class of shares for the years ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (2017, 2016 and 2015. ) Tj ET Q q 0 0 0 rg BT 141.26 334.10 Td (The net cash distributions presented below are representative of the gross distribution rate declared by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (our board of directors less any applicable ongoing distribution and stockholder servicing fees, which is more fully described in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.44 310.10 Td ( Related Party ) Tj ET Q q 0 0 0 rg BT 147.91 310.10 Td (T) Tj ET Q q 0 0 0 rg BT 153.67 310.10 Td (ransactions.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 269.60 306.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 269.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 269.60 17.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 269.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 269.60 10.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 269.60 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 548.00 269.60 15.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 239.60 306.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 239.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 239.60 17.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 239.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 239.60 10.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 239.60 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 548.00 239.60 15.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 284.6 m 410 284.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 284.6 m 482 284.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 284.6 m 548 284.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 269.6 m 410 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 269.6 m 482 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 269.6 m 548 269.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 396.10 289.28 Td (Y) Tj ET Q q 0 0 0 rg BT 402.77 289.28 Td (ear) Tj ET Q q 0 0 0 rg BT 416.00 289.28 Td ( Ended December) Tj ET Q q 0 0 0 rg BT 491.92 289.28 Td ( 31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.50 274.28 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.00 274.28 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 509.50 274.28 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 259.27 Td (Cash distributions declared per Class ) Tj ET Q q 0 0 0 rg BT 203.03 259.27 Td (AX share, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.50 259.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.65 259.27 Td (0.60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.50 259.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 259.27 Td (0.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 259.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 259.27 Td (0.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 244.27 Td (Cash distributions declared per Class ) Tj ET Q q 0 0 0 rg BT 203.22 244.27 Td (TX share, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.50 244.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.65 244.27 Td (0.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.50 244.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 244.27 Td (0.49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 244.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 244.27 Td (0.17) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 550.50 249.43 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 229.27 Td (Cash distributions declared per Class IX share, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.50 229.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.65 229.27 Td (0.39) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 412.50 234.43 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.50 229.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 229.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 229.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 229.27 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 201.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 201.10 Td (For the period from ) Tj ET Q q 0 0 0 rg BT 148.04 201.10 Td (August 24, 2015 \(the date the first distribution related to Class ) Tj ET Q q 0 0 0 rg BT 400.04 201.10 Td (TX shares was declared\) through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 189.10 Td (December 31, 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 165.10 Td (For the period from May 1, 2017 \(the date the first distribution related to Class IX shares was declared\) through December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 153.10 Td (31, 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 129.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 129.10 Td (e have not generated and, we may continue to be unable to generate suf) Tj ET Q q 0 0 0 rg BT 361.40 129.10 Td (ficient cash flow from operations to fully fund ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.10 Td (distributions paid. ) Tj ET Q q 0 0 0 rg BT 126.54 117.10 Td (Therefore, our distributions have been paid and may continue to be paid, and during the of) Tj ET Q q 0 0 0 rg BT 488.20 117.10 Td (fering phase, are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.10 Td (likely to be paid at least partially from other sources, such as proceeds from our debt financings, proceeds from our public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 93.10 Td (ferings, cash advances by our ) Tj ET Q q 0 0 0 rg BT 177.61 93.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 209.43 93.10 Td (, cash resulting from a waiver or deferral of fees and/or proceeds from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.10 Td (assets. For example, we funded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.02 81.10 Td (56%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.35 81.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.35 81.10 Td (60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.68 81.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.12 81.10 Td (23%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.45 81.10 Td ( of total distributions for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.41 81.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 81.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 81.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.00 81.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 69.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 69.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.16 69.10 Td (, with cash flows from financing activities, which includes of) Tj ET Q q 0 0 0 rg BT 366.64 69.10 Td (fering proceeds.) Tj ET Q endstream endobj 109 0 obj <> endobj 110 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 742.10 Td (Commencing with the quarter ended December 31, 2014, our ) Tj ET Q q 0 0 0 rg BT 314.93 742.10 Td (Advisor agreed to waive the asset management fees for each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (quarter through December31, 2016, to the extent that our MFFO, for a particular quarter) Tj ET Q q 0 0 0 rg BT 404.82 730.10 Td (, as disclosed in our ) Tj ET Q q 0 0 0 rg BT 485.93 730.10 Td (Annual Report on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (Form 10-K or Quarterly Report on Form 10-Q, as applicable, amounted to less than 100% of the aggregate distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (declared to our stockholders for such quarter) Tj ET Q q 0 0 0 rg BT 227.77 706.10 Td (. Our ) Tj ET Q q 0 0 0 rg BT 252.77 706.10 Td (Advisor also agreed to waive the asset management fees otherwise payable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (to it for the quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.90 694.10 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.50 694.10 Td ( to the extent that our MFFO for such quarter) Tj ET Q q 0 0 0 rg BT 397.90 694.10 Td (, as reduced to reflect the distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (and stockholder servicing fees payable for such quarter) Tj ET Q q 0 0 0 rg BT 269.85 682.10 Td (, as disclosed in our Quarterly Report on Form 10-Q, amounted to less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (than 100% of the aggregate distributions declared to our stockholders for that quarter) Tj ET Q q 0 0 0 rg BT 389.40 670.10 Td (. ) Tj ET Q q 0 0 0 rg BT 396.35 670.10 Td (As a result of these fee waivers, cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (flows from operations that would have been paid to our ) Tj ET Q q 0 0 0 rg BT 273.34 658.10 Td (Advisor for asset management feesmay be available to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (distributions to stockholders. ) Tj ET Q q 0 0 0 rg BT 170.15 646.10 Td (These fee waivers are not deferrals and accordingly) Tj ET Q q 0 0 0 rg BT 375.78 646.10 Td (, any fees that were waived will not be paid to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (our ) Tj ET Q q 0 0 0 rg BT 64.78 634.10 Td (Advisor in cash at any time in the future. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 610.10 Td (The table below outlines, with respect to each of the years ended December 31, 2016 and 2015, the asset management fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (earned by our ) Tj ET Q q 0 0 0 rg BT 106.42 598.10 Td (Advisor without the waivers, the amounts waived pursuant to the asset management fee waivers described above, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (if any) Tj ET Q q 0 0 0 rg BT 71.90 586.10 Td (, and the asset management fees earned by our ) Tj ET Q q 0 0 0 rg BT 259.60 586.10 Td (Advisor after application of the waivers \(in thousands\). Our ) Tj ET Q q 0 0 0 rg BT 503.15 586.10 Td (Advisor did ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (not waive any asset management fees payable to it during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.56 574.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.14 574.10 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 527.60 203.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 527.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.00 527.60 101.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 527.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 527.60 105.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 527.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 527.60 92.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 497.60 203.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 497.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.00 497.60 101.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 497.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 497.60 105.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 497.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 497.60 92.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 527.6 m 253 527.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 527.6 m 358 527.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 527.6 m 467 527.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 527.6 m 563 527.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 532.28 Td (For) Tj ET Q q 0 0 0 rg BT 67.87 532.28 Td ( the ) Tj ET Q q 0 0 0 rg BT 85.83 532.28 Td (Y) Tj ET Q q 0 0 0 rg BT 91.94 532.28 Td (ears Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 266.30 542.28 Td (Asset Management) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.70 532.28 Td (Fee Pr) Tj ET Q q 0 0 0 rg BT 301.64 532.28 Td (e-W) Tj ET Q q 0 0 0 rg BT 319.04 532.28 Td (aiver) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 364.55 542.28 Td (Asset Management Fee) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.85 532.28 Td (W) Tj ET Q q 0 0 0 rg BT 407.57 532.28 Td (aived) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.80 542.28 Td (Asset Management) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 481.45 532.28 Td (Fee Post-W) Tj ET Q q 0 0 0 rg BT 530.04 532.28 Td (aiver) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 517.27 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.50 517.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 517.27 Td (4,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 517.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.15 517.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.50 517.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 517.27 Td (4,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 502.27 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.50 502.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 502.27 Td (2,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 502.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 502.27 Td (1,252) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.50 502.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 502.27 Td (948) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 487.27 Td (December 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.50 487.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.15 487.27 Td (888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 487.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 487.27 Td (583) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.50 487.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 487.27 Td (305) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 459.10 Td (The following table outlines our total cash distributions declared to stockholders for each of the quarters during the years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 447.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.46 447.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.90 447.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.90 447.10 Td (, including the breakout between the distributions declared in cash and those reinvested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.10 Td (pursuant to our distribution reinvestment plan \(in thousands\), as well as the sources used to fund the distributions.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 48.75 369.60 223.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.75 369.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.75 369.60 91.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.75 369.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.75 369.60 112.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.75 369.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.75 369.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.75 339.60 223.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.75 339.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.75 339.60 91.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.75 339.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.75 339.60 112.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.75 339.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.75 339.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.75 309.60 223.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.75 309.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.75 309.60 91.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.75 309.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.75 309.60 112.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.75 309.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.75 309.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.75 280.60 223.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.75 280.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.75 280.60 91.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.75 280.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.75 280.60 112.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.75 280.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.75 280.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.75 250.60 223.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.75 250.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.75 250.60 91.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.75 250.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.75 250.60 112.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.75 250.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.75 250.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.75 220.60 223.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.75 220.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.75 220.60 91.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.75 220.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.75 220.60 112.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.75 220.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.75 220.60 75.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.75 397.6 m 366.75 397.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.75 397.6 m 370.75 397.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.75 397.6 m 482.75 397.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.75 397.6 m 486.75 397.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.75 397.6 m 561.75 397.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 48.75 383.6 m 271.75 383.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.75 383.6 m 366.75 383.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.75 383.6 m 482.75 383.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.75 383.6 m 561.75 383.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 48.75 383.6 m 271.75 383.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 48.75 369.6 m 271.75 369.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.75 309.6 m 366.75 309.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.75 295.6 m 366.75 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.75 293.6 m 366.75 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.75 309.6 m 482.75 309.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.75 295.6 m 482.75 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.75 293.6 m 482.75 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.75 309.6 m 561.75 309.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.75 295.6 m 561.75 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.75 293.6 m 561.75 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 48.75 280.6 m 271.75 280.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.75 220.60000000000002 m 366.75 220.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.75 206.60000000000002 m 366.75 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.75 204.60000000000002 m 366.75 204.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.75 220.60000000000002 m 482.75 220.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.75 206.60000000000002 m 482.75 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.75 204.60000000000002 m 482.75 204.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.75 220.60000000000002 m 561.75 220.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.75 206.60000000000002 m 561.75 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.75 204.60000000000002 m 561.75 204.60000000000002 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.25 402.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.45 402.28 Td (Stockholders) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.25 388.28 Td (Distributions for) Tj ET Q q 0 0 0 rg BT 122.55 388.28 Td ( the thr) Tj ET Q q 0 0 0 rg BT 154.03 388.28 Td (ee months ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 280.60 388.28 Td (Cash Distributions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 373.60 388.28 Td (Distributions Reinvested) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.50 388.28 Td (T) Tj ET Q q 0 0 0 rg BT 498.25 388.28 Td (otal Declar) Tj ET Q q 0 0 0 rg BT 545.00 388.28 Td (ed) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.25 374.28 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.25 359.27 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.25 359.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.40 359.27 Td (2,636) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.25 359.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.40 359.27 Td (3,005) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.25 359.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.40 359.27 Td (5,641) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.25 344.27 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.40 344.27 Td (2,532) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.40 344.27 Td (2,901) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.40 344.27 Td (5,433) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.25 329.27 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.40 329.27 Td (2,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.40 329.27 Td (2,565) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.40 329.27 Td (4,790) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.25 314.27 Td (March 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.40 314.27 Td (1,833) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.40 314.27 Td (2,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.40 314.27 Td (3,909) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.25 299.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.40 299.27 Td (9,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.25 299.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.40 299.27 Td (10,547) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.25 299.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.40 299.27 Td (19,773) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.25 285.28 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.25 270.27 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.25 270.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.40 270.27 Td (1,608) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.25 270.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.40 270.27 Td (1,744) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.25 270.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.40 270.27 Td (3,352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.25 255.27 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.40 255.27 Td (1,340) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.40 255.27 Td (1,427) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.40 255.27 Td (2,767) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.25 240.27 Td (June 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.40 240.27 Td (1,107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.40 240.27 Td (1,128) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.40 240.27 Td (2,235) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.25 225.27 Td (March 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.90 225.27 Td (871) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.90 225.27 Td (887) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.40 225.27 Td (1,758) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.25 210.27 Td (T) Tj ET Q q 0 0 0 rg BT 56.66 210.27 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.25 210.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.40 210.27 Td (4,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.25 210.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.40 210.27 Td (5,186) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.25 210.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.40 210.27 Td (10,1) Tj ET Q q 0 0 0 rg BT 547.90 210.27 Td (12) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 182.10 Td (Generally) Tj ET Q q 0 0 0 rg BT 106.27 182.10 Td (, distributions to stockholders are characterized for federal income tax purposes as ordinary income, capital gains, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (non-taxable return of capital or a combination of the three. Distributions that exceed our current and accumulated earnings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (profits \(calculated for tax purposes\) constitute a return of capital for tax purposes rather than a distribution and reduce the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (stockholders) Tj ET Q q 0 0 0 rg BT 102.63 146.10 Td ( basis in our common shares. ) Tj ET Q q 0 0 0 rg BT 223.55 146.10 Td (T) Tj ET Q q 0 0 0 rg BT 228.96 146.10 Td (o the extent that a distribution exceeds both current and accumulated earnings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (profits and the stockholders) Tj ET Q q 0 0 0 rg BT 162.90 134.10 Td ( basis in the common shares, it will generally be treated as a capital gain. ) Tj ET Q q 0 0 0 rg BT 459.29 134.10 Td (W) Tj ET Q q 0 0 0 rg BT 467.93 134.10 Td (e annually notify ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (stockholders of the taxability of distributions paid during the preceding year) Tj ET Q q 0 0 0 rg BT 353.32 122.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 98.10 Td (For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.58 98.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.17 98.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.61 98.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.61 98.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 319.27 98.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.53 98.10 Td (59%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.86 98.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.29 98.10 Td (67%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.63 98.10 Td ( of the distributions paid were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (taxable as ordinary income and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.21 86.10 Td (41%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.54 86.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.98 86.10 Td (33%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.31 86.10 Td ( were treated as a return of capital for federal income tax purposes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (The amount of distributions paid and taxable portion are not indicative or predictive of amounts anticipated in future periods.) Tj ET Q endstream endobj 111 0 obj <> endobj 112 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (53) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (Recent Sales of Unr) Tj ET Q q 0 0 0 rg BT 133.47 742.25 Td (egister) Tj ET Q q 0 0 0 rg BT 161.60 742.25 Td (ed Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 718.25 Td (On September 13, 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.49 718.25 Td (518.135) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.99 718.25 Td ( restricted common shares were granted to each of our independent directors, Messrs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (Humberto Burt Cabaas, Dougal ) Tj ET Q q 0 0 0 rg BT 191.97 706.25 Td (A. Cameron, and John O. Niemann, Jr) Tj ET Q q 0 0 0 rg BT 344.72 706.25 Td (. Such restricted shares were granted pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (Restricted Share ) Tj ET Q q 0 0 0 rg BT 117.26 694.25 Td (A) Tj ET Q q 0 0 0 rg BT 123.56 694.25 Td (ward ) Tj ET Q q 0 0 0 rg BT 145.50 694.25 Td (Agreements between us and each of our independent directors, as part of the independent directors) Tj ET Q q 0 0 0 rg BT 542.66 694.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (annual compensation for service on our board of directors and without registration under the Securities ) Tj ET Q q 0 0 0 rg BT 462.99 682.25 Td (Act, in reliance upon the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (exemption from registration contained in Section 4\(a\)\(2\) of the Securities ) Tj ET Q q 0 0 0 rg BT 345.53 670.25 Td (Act.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (Use of Pr) Tj ET Q q 0 0 0 rg BT 88.75 646.25 Td (oceeds fr) Tj ET Q q 0 0 0 rg BT 126.60 646.25 Td (om Register) Tj ET Q q 0 0 0 rg BT 177.79 646.25 Td (ed Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 622.25 Td (The Initial Of) Tj ET Q q 0 0 0 rg BT 122.30 622.25 Td (fering commenced on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.44 622.25 Td (August20, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.83 622.25 Td (, we suspended sales pursuant to the Initial Of) Tj ET Q q 0 0 0 rg BT 461.77 622.25 Td (fering ef) Tj ET Q q 0 0 0 rg BT 495.74 622.25 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (September 30, 2017 and we terminated the Initial Of) Tj ET Q q 0 0 0 rg BT 260.09 610.25 Td (fering on December 26, 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 586.25 Td (Through December26, 2017, the Company received gross of) Tj ET Q q 0 0 0 rg BT 312.25 586.25 Td (fering proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.75 586.25 Td ($405.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.65 586.25 Td ( including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (shares issued under its distribution reinvestment plans, comprised of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.82 574.25 Td ($203.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.71 574.25 Td (through the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.42 574.25 Td (20.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 562.25 Td ( Class ) Tj ET Q q 0 0 0 rg BT 104.51 562.25 Td (AX shares, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.44 562.25 Td ($201.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.33 562.25 Td ( through the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.04 562.25 Td (20.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.93 562.25 Td ( Class ) Tj ET Q q 0 0 0 rg BT 365.42 562.25 Td (TX shares and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.68 562.25 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.57 562.25 Td ( through the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (92,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 550.25 Td ( Class IX shares to the public in connection with the Initial Of) Tj ET Q q 0 0 0 rg BT 325.10 550.25 Td (fering. ) Tj ET Q q 0 0 0 rg BT 356.30 550.25 Td (W) Tj ET Q q 0 0 0 rg BT 364.93 550.25 Td (e used proceeds from the Initial Of) Tj ET Q q 0 0 0 rg BT 504.15 550.25 Td (fering to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td ($24.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 538.25 Td ( of selling commissions and dealer manager fees, as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.88 538.25 Td ($10.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.77 538.25 Td ( of or) Tj ET Q q 0 0 0 rg BT 419.25 538.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 488.48 538.25 Td (fering costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (deemed issuer costs related to the Initial Of) Tj ET Q q 0 0 0 rg BT 222.87 526.25 Td (fering. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.19 526.25 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.13 526.25 Td ( Related Party ) Tj ET Q q 0 0 0 rg BT 369.60 526.25 Td (T) Tj ET Q q 0 0 0 rg BT 375.35 526.25 Td (ransactions for additional information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (regarding the amendment to our ) Tj ET Q q 0 0 0 rg BT 179.74 514.25 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 218.91 514.25 Td (Agreement executed in ) Tj ET Q q 0 0 0 rg BT 313.59 514.25 Td (April 2016 and ef) Tj ET Q q 0 0 0 rg BT 384.23 514.25 Td (fective February 29, 2016, which reduced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (the amount of or) Tj ET Q q 0 0 0 rg BT 115.69 502.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 184.93 502.25 Td (fering costs payable to our ) Tj ET Q q 0 0 0 rg BT 292.96 502.25 Td (Advisor as a percentage of gross of) Tj ET Q q 0 0 0 rg BT 433.84 502.25 Td (fering proceeds. ) Tj ET Q q 0 0 0 rg BT 502.70 502.25 Td (As a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (the amendment to our ) Tj ET Q q 0 0 0 rg BT 138.92 490.25 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 178.09 490.25 Td (Agreement, our ) Tj ET Q q 0 0 0 rg BT 242.80 490.25 Td (Advisor reimbursed us for $4.0 million in or) Tj ET Q q 0 0 0 rg BT 420.37 490.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 489.61 490.25 Td (fering costs that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (we had previously reimbursed to our ) Tj ET Q q 0 0 0 rg BT 198.36 478.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 230.03 478.25 Td (. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.47 478.25 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.40 478.25 Td ( Related Party ) Tj ET Q q 0 0 0 rg BT 352.87 478.25 Td (T) Tj ET Q q 0 0 0 rg BT 358.63 478.25 Td (ransactions for additional information regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (the Dealer Manager ) Tj ET Q q 0 0 0 rg BT 130.85 466.25 Td (Agreement for the Initial Of) Tj ET Q q 0 0 0 rg BT 243.40 466.25 Td (fering, pursuant to which our ) Tj ET Q q 0 0 0 rg BT 361.71 466.25 Td (Advisor paid a portion of the dealer manager fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (payable to the dealer manager) Tj ET Q q 0 0 0 rg BT 169.04 454.25 Td (, without reimbursement from us. ) Tj ET Q q 0 0 0 rg BT 307.72 454.25 Td (The selling commissions and dealer manager fees were not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (paid with respect to the shares sold through our distribution reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 368.70 442.25 Td (The selling commissions and dealer manager ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (fees were paid to our dealer manager) Tj ET Q q 0 0 0 rg BT 196.80 430.25 Td (, which is an af) Tj ET Q q 0 0 0 rg BT 257.43 430.25 Td (filiate of Hines and is wholly-owned, indirectly) Tj ET Q q 0 0 0 rg BT 446.46 430.25 Td (, by) Tj ET Q q 0 0 0 rg BT 460.81 430.25 Td (, or for the benefit of, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (our Chairman, Jef) Tj ET Q q 0 0 0 rg BT 121.24 418.25 Td (frey C. Hines and his father) Tj ET Q q 0 0 0 rg BT 231.37 418.25 Td (, Gerald D. Hines.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 394.25 Td (Net proceeds available for investment after the payment of the costs described above were approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.50 394.25 Td ($355.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.39 394.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 382.25 Td ( portion of these proceeds, along with proceeds from debt financing, were used to make approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.37 382.25 Td ($355.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.26 382.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (investments in real estate, including the purchase price of our real estate investments acquisition fees and expenses, and costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (leveraging each real estate investment. ) Tj ET Q q 0 0 0 rg BT 208.97 358.25 Td (W) Tj ET Q q 0 0 0 rg BT 217.61 358.25 Td (e had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.48 358.25 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.48 358.25 Td ( uninvested of) Tj ET Q q 0 0 0 rg BT 307.96 358.25 Td (fering proceeds as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.03 358.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.62 358.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 334.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 117.40 334.25 Td (, we may not generate suf) Tj ET Q q 0 0 0 rg BT 219.96 334.25 Td (ficient cash flow from operations to fully fund distributions paid. From inception ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.11 322.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.69 322.25 Td (, a portion of our distributions have been funded with cash flows from financing activities, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (includes of) Tj ET Q q 0 0 0 rg BT 93.47 310.25 Td (fering proceeds. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.27 310.25 Td (Item 7.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.59 310.25 Td ( Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 338.26 310.25 Td (Analysis of Financial Condition and Results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (Operations Financial Condition, Liquidity and Capital Resources Distributions.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (Shar) Tj ET Q q 0 0 0 rg BT 69.88 274.25 Td (e RedemptionPr) Tj ET Q q 0 0 0 rg BT 141.91 274.25 Td (ogram) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 250.25 Td (In connection with the Follow-On Of) Tj ET Q q 0 0 0 rg BT 216.46 250.25 Td (fering, our board of directors \(i\) approved the termination of our share redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (program applicable to Class ) Tj ET Q q 0 0 0 rg BT 163.36 238.25 Td (AX shares and Class ) Tj ET Q q 0 0 0 rg BT 248.72 238.25 Td (TX shares and \(ii\) approved the amendment and restatement of our share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (redemption program applicable to Class IX shares and Class JX shares, in order to make it applicable to all classes of shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (the Company) Tj ET Q q 0 0 0 rg BT 105.88 214.25 Td (s common stock \(the Amended SRP\). ) Tj ET Q q 0 0 0 rg BT 267.62 214.25 Td (The ) Tj ET Q q 0 0 0 rg BT 285.12 214.25 Td (Amended SRP) Tj ET Q q 0 0 0 rg BT 343.91 214.25 Td ( replaced the Company) Tj ET Q q 0 0 0 rg BT 439.16 214.25 Td (s share redemption programs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 202.25 Td (fective as of December 4, 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 178.25 Td (The ) Tj ET Q q 0 0 0 rg BT 85.00 178.25 Td (Amended SRP) Tj ET Q q 0 0 0 rg BT 143.79 178.25 Td ( may allow stockholders who have purchased shares from us or received their shares through a non-cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (transaction, not in the secondary market, to have their shares redeemed subject to certain limitations and restrictions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (Redemptions under the ) Tj ET Q q 0 0 0 rg BT 144.21 154.25 Td (Amended SRP) Tj ET Q q 0 0 0 rg BT 203.01 154.25 Td ( will be made on a monthly basis. Subject to the limitations of and restrictions on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (Amended SRP) Tj ET Q q 0 0 0 rg BT 107.56 142.25 Td (, and subject to funds being available as described below) Tj ET Q q 0 0 0 rg BT 334.07 142.25 Td (, shares redeemed under the ) Tj ET Q q 0 0 0 rg BT 447.35 142.25 Td (Amended SRP) Tj ET Q q 0 0 0 rg BT 506.15 142.25 Td ( will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (redeemed at the transaction price in ef) Tj ET Q q 0 0 0 rg BT 202.02 130.25 Td (fect on the date of redemption, which generally will be a price equal to the NA) Tj ET Q q 0 0 0 rg BT 515.61 130.25 Td (V) Tj ET Q q 0 0 0 rg BT 522.65 130.25 Td ( per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (applicable to the class of shares being redeemed and most recently disclosed by the Company in a public filing with the SEC. ) Tj ET Q endstream endobj 113 0 obj <> endobj 114 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 742.10 Td (Under the ) Tj ET Q q 0 0 0 rg BT 109.16 742.10 Td (Amended SRP) Tj ET Q q 0 0 0 rg BT 167.22 742.10 Td (, the Company may repurchase during any calendar month shares \(including IPO Shares\) whose ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (aggregate value \(based on the redemption price per share in ef) Tj ET Q q 0 0 0 rg BT 298.09 730.10 Td (fect when the redemption is ef) Tj ET Q q 0 0 0 rg BT 419.26 730.10 Td (fected\) is 2% of the Company) Tj ET Q q 0 0 0 rg BT 541.72 730.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (aggregate NA) Tj ET Q q 0 0 0 rg BT 104.02 718.10 Td (V) Tj ET Q q 0 0 0 rg BT 111.06 718.10 Td ( as of the last calendar day of the previous month \(the 2% Monthly Limitation\) and during any calendar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (quarter whose aggregate value \(based on the redemption price per share in ef) Tj ET Q q 0 0 0 rg BT 356.96 706.10 Td (fect when the redemption is ef) Tj ET Q q 0 0 0 rg BT 478.12 706.10 Td (fected\) is up to 5% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (of the Company) Tj ET Q q 0 0 0 rg BT 116.71 694.10 Td (s aggregate NA) Tj ET Q q 0 0 0 rg BT 177.62 694.10 Td (V) Tj ET Q q 0 0 0 rg BT 184.66 694.10 Td ( as of the last calendar day of the prior calendar quarter \(the 5% Quarterly Limitation\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (During a given quarter) Tj ET Q q 0 0 0 rg BT 139.90 682.10 Td (, if in each of the first two months of such quarter the 2% Monthly Limitation is reached and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (stockholders) Tj ET Q q 0 0 0 rg BT 102.63 670.10 Td ( redemptions are reduced pro rata for such months, then in the third and final month of that quarter) Tj ET Q q 0 0 0 rg BT 496.83 670.10 Td (, the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (limit for such month will likely be less than 2% of the Company) Tj ET Q q 0 0 0 rg BT 309.47 658.10 Td (s aggregate NA) Tj ET Q q 0 0 0 rg BT 370.37 658.10 Td (V) Tj ET Q q 0 0 0 rg BT 377.42 658.10 Td ( as of the last calendar day of the previous ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (month because the redemptions for that month, combined with the redemptions in the previous two months, cannot exceed the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (5% Quarterly Limitation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 610.10 Td (There is no minimum holding period for shares under the ) Tj ET Q q 0 0 0 rg BT 298.56 610.10 Td (Amended SRP) Tj ET Q q 0 0 0 rg BT 357.36 610.10 Td ( and stockholders may request that the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (redeem their shares at any time. However) Tj ET Q q 0 0 0 rg BT 215.42 598.10 Td (, shares that have not been outstanding for at least one year will be redeemed at 95% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (of the redemption price that would otherwise apply to the class of shares being redeemed; provided, that, the period that a Class ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.43 574.10 Td ( share, Class S share and/or Class D share was held prior to being converted into a Class I share will count toward the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (hold period for a Class I share, the period that a Class ) Tj ET Q q 0 0 0 rg BT 266.21 562.10 Td (TX share was held prior to being converted into a Class ) Tj ET Q q 0 0 0 rg BT 490.88 562.10 Td (AX share will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (count toward the total hold period for a Class ) Tj ET Q q 0 0 0 rg BT 232.52 550.10 Td (AX share and the period that a Class IX share was held prior to being converted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (into a Class JX share will count toward the total hold period for a Class JX share. ) Tj ET Q q 0 0 0 rg BT 377.03 538.10 Td (The 5% holding discount also will be waived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (with respect to shares issued pursuant to the distribution reinvestment plan and any shares issued as stock dividends. Upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (request, the Company intends to waive the 5% holding discount in the case of the death or disability of a stockholder) Tj ET Q q 0 0 0 rg BT 516.34 514.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 490.10 Td (Unless our board of directors determines otherwise, the Company intends to fund redemptions pursuant to the ) Tj ET Q q 0 0 0 rg BT 508.80 490.10 Td (Amended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (SRP) Tj ET Q q 0 0 0 rg BT 66.92 478.10 Td ( from any available cash sources at its disposal, including available cash, cash flow from operations, the sale of real estate-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (related securities and other assets, borrowings or of) Tj ET Q q 0 0 0 rg BT 254.81 466.10 Td (fering proceeds, without any limitation on the amounts the Company may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (pay from such sources. Our board of directors will have complete discretion to determine whether all of such funds will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (applied to redemptions pursuant to the ) Tj ET Q q 0 0 0 rg BT 205.03 442.10 Td (Amended SRP) Tj ET Q q 0 0 0 rg BT 263.09 442.10 Td (, whether such funds are needed for other purposes or whether additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (funds from other sources may be used for redemptions pursuant to the ) Tj ET Q q 0 0 0 rg BT 331.66 430.10 Td (Amended SRP) Tj ET Q q 0 0 0 rg BT 389.72 430.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 406.10 Td (Our board of directors may terminate, suspend or amend the ) Tj ET Q q 0 0 0 rg BT 310.48 406.10 Td (Amended SRP) Tj ET Q q 0 0 0 rg BT 369.28 406.10 Td ( at any time without stockholder approval if the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (directors believe such action is in the best interests of our stockholders, or if they determine the funds otherwise available to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (fund redemptions are needed for other purposes. In addition, our board of directors may determine to suspend the ) Tj ET Q q 0 0 0 rg BT 504.92 382.10 Td (Amended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (SRP) Tj ET Q q 0 0 0 rg BT 66.92 370.10 Td ( due to regulatory changes, changes in law or if our board of directors becomes aware of undisclosed material information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (that it believes should be publicly disclosed before shares are redeemed. Material modifications, including any reduction to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (monthly or quarterly limitations on redemptions, and suspensions of the program will be disclosed promptly to stockholders in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (a prospectus supplement \(or post-ef) Tj ET Q q 0 0 0 rg BT 192.06 334.10 Td (fective amendment if required by the Securities ) Tj ET Q q 0 0 0 rg BT 383.93 334.10 Td (Act\) or current report on Form 8-K filed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (with the SEC. ) Tj ET Q q 0 0 0 rg BT 109.78 322.10 Td (Any material modifications will also be disclosed on the Company) Tj ET Q q 0 0 0 rg BT 379.46 322.10 Td (s website.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (Issuer) Tj ET Q q 0 0 0 rg BT 75.43 298.10 Td ( Redemptions of Equity Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 274.10 Td (Prior to the commencement of our Follow-On Of) Tj ET Q q 0 0 0 rg BT 264.22 274.10 Td (fering and Restructuring, on October 3, 2017 we commenced a self-tender ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 262.10 Td (fer to purchase for cash up to $200.0 million of our outstanding common stock in any combination of IPO Shares at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td ($9.69 per share, which was the NA) Tj ET Q q 0 0 0 rg BT 188.73 250.10 Td (V) Tj ET Q q 0 0 0 rg BT 195.77 250.10 Td ( per share of our common stock as of ) Tj ET Q q 0 0 0 rg BT 346.01 250.10 Td (August 31, 2017. ) Tj ET Q q 0 0 0 rg BT 419.35 250.10 Td (As a result of this self-tender of) Tj ET Q q 0 0 0 rg BT 545.80 250.10 Td (fer) Tj ET Q q 0 0 0 rg BT 556.50 250.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (we redeemed a total of 1.9 million IPO Shares, or 4.7% of the Company) Tj ET Q q 0 0 0 rg BT 341.10 238.10 Td (s issued and outstanding IPO Shares, for an aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (cost of $18.7 million in November 2017.) Tj ET Q endstream endobj 115 0 obj <> endobj 116 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 730.25 Td (All eligible requests for redemptions, other than redemptions made in connection with our self-tender of) Tj ET Q q 0 0 0 rg BT 484.15 730.25 Td (fer) Tj ET Q q 0 0 0 rg BT 494.84 730.25 Td (, were redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.25 Td (using proceeds from our distribution reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 276.78 718.25 Td (The following table lists shares we redeemed under our share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (redemption programs in ef) Tj ET Q q 0 0 0 rg BT 155.68 706.25 Td (fect prior to December 4, 2017 during the quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.98 706.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.56 706.25 Td (, including the average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (price paid per share.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 617.75 185.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 617.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 617.75 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.00 617.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.00 617.75 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 617.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 617.75 99.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 617.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 617.75 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 547.00 617.75 16.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 587.75 185.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 587.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 587.75 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.00 587.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.00 587.75 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 587.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 587.75 99.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 587.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 587.75 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 547.00 587.75 16.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 617.75 m 235 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 617.75 m 298 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302 617.75 m 350 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 617.75 m 453 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 617.75 m 547 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 547 617.75 m 563 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 572.75 m 298 572.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 572.75 m 453 572.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 572.75 m 298 572.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 572.75 m 453 572.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 622.43 Td (Period) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.05 652.43 Td (T) Tj ET Q q 0 0 0 rg BT 263.26 652.43 Td (otal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 244.85 642.43 Td (Number) Tj ET Q q 0 0 0 rg BT 280.31 642.43 Td ( of) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 253.60 632.43 Td (Shar) Tj ET Q q 0 0 0 rg BT 274.07 632.43 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 245.75 622.43 Td (Redeemed) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.10 652.43 Td (A) Tj ET Q q 0 0 0 rg BT 314.95 652.43 Td (verage) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 314.35 642.43 Td (Price) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 307.10 632.43 Td (Paid Per) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 313.05 622.43 Td (Shar) Tj ET Q q 0 0 0 rg BT 333.52 622.43 Td (e) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 367.70 662.43 Td (T) Tj ET Q q 0 0 0 rg BT 373.91 662.43 Td (otal Number) Tj ET Q q 0 0 0 rg BT 427.52 662.43 Td ( of) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.25 652.43 Td (Shar) Tj ET Q q 0 0 0 rg BT 379.72 652.43 Td (es Pur) Tj ET Q q 0 0 0 rg BT 406.48 652.43 Td (chased as) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.35 642.43 Td (Part of Publicly) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 360.20 632.43 Td (Announced Plans of) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.95 622.43 Td (Pr) Tj ET Q q 0 0 0 rg BT 392.41 622.43 Td (ograms) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.30 662.43 Td (Maximum Number) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.85 652.43 Td (of Shar) Tj ET Q q 0 0 0 rg BT 492.06 652.43 Td (es that May) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.80 642.43 Td (Y) Tj ET Q q 0 0 0 rg BT 470.91 642.43 Td (et be Redeemed) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.25 632.43 Td (Under) Tj ET Q q 0 0 0 rg BT 488.29 632.43 Td ( the Plans or) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.45 622.43 Td (Pr) Tj ET Q q 0 0 0 rg BT 490.82 622.43 Td (ograms) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 607.42 Td (October 1, 2017 to October 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.15 607.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.50 607.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.15 607.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 607.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 607.42 Td (N/A) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 549.50 612.58 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 592.42 Td (November 1, 2017 to November 30, 2017 ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 222.19 596.95 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.10 592.42 Td (1,927,780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.50 592.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.65 592.42 Td (9.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 592.42 Td (1,927,780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 592.42 Td (N/A) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 549.50 597.58 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 577.42 Td (December 1, 2017 to December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.15 577.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.50 577.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.15 577.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 577.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.65 577.42 Td (788,575) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 549.50 582.58 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 562.42 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 562.42 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.10 562.42 Td (1,927,780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.50 562.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 562.42 Td (1,927,780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.50 562.42 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.25 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 534.25 Td (In connection with our self-tender of) Tj ET Q q 0 0 0 rg BT 214.21 534.25 Td (fer) Tj ET Q q 0 0 0 rg BT 224.91 534.25 Td (, ef) Tj ET Q q 0 0 0 rg BT 237.50 534.25 Td (fective ) Tj ET Q q 0 0 0 rg BT 266.65 534.25 Td (August 18, 2017, we suspended our share redemption programs, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 522.25 Td (required by Rule 14e-5 promulgated under the Exchange ) Tj ET Q q 0 0 0 rg BT 296.87 522.25 Td (Act. ) Tj ET Q q 0 0 0 rg BT 316.13 522.25 Td (W) Tj ET Q q 0 0 0 rg BT 324.77 522.25 Td (e lifted the suspension and amended our share redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 510.25 Td (programs \(as described more fully above\) following the termination of our self-tender of) Tj ET Q q 0 0 0 rg BT 421.65 510.25 Td (fer) Tj ET Q q 0 0 0 rg BT 432.20 510.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.25 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 486.25 Td (Amount redeemed pursuant to the Company) Tj ET Q q 0 0 0 rg BT 247.74 486.25 Td (s $200.0 million self-tender of) Tj ET Q q 0 0 0 rg BT 368.93 486.25 Td (fer as announced on October 3, 2017 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 474.25 Td (expired on November 15, 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.25 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 450.25 Td (See the description of the ) Tj ET Q q 0 0 0 rg BT 171.08 450.25 Td (Amended SRP) Tj ET Q q 0 0 0 rg BT 229.88 450.25 Td ( above for a description of the limitations on the number of shares that may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 438.25 Td (redeemed. ) Tj ET Q q 0 0 0 rg BT 113.31 438.25 Td (Amount provided represents the 2% Monthly Limitation which can be further limited by the 5% Quarterly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 426.25 Td (Limitation.) Tj ET Q endstream endobj 117 0 obj <> endobj 118 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (56) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Item6.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 79.99 742.25 Td (Selected Financial Data) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.25 Td (The following selected consolidated financial data is qualified by reference to and should be read in conjunction with our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.25 Td (consolidated financial statements and Notes thereto and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.64 706.25 Td (Item7.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.97 706.25 Td ( Management) Tj ET Q q 0 0 0 rg BT 365.45 706.25 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 434.62 706.25 Td (Analysis of Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (Condition and Results of Operations below) Tj ET Q q 0 0 0 rg BT 226.83 694.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 670.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 670.25 Td (e owned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.74 670.25 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.73 670.25 Td (properties that were) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.14 670.25 Td (97%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.47 670.25 Td (leased as of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.12 670.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.70 670.25 Td (compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.40 670.25 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.95 670.25 Td ( properties that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.36 670.25 Td (97%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.69 670.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (leased as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.15 658.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.73 658.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.17 658.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.17 658.25 Td (properties that were) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.58 658.25 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.91 658.25 Td (leased as of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.55 658.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.14 658.25 Td (. Because we are currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (in the acquisition phase of our life cycle, changes in our results of operations related to our properties are primarily due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (acquisition of properties. ) Tj ET Q q 0 0 0 rg BT 152.02 634.25 Td (W) Tj ET Q q 0 0 0 rg BT 160.65 634.25 Td (e did not have any results of operations for the period ended July 31, 2013 \(date of inception\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (through December 31, 2013.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 554.75 210.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 554.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 554.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 554.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 554.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 554.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 554.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 554.75 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 554.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 554.75 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 524.75 210.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 524.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 524.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 524.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 524.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 524.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 524.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 524.75 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 524.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 524.75 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 494.75 210.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 494.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 494.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 494.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 494.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 494.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 494.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 494.75 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 494.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 494.75 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 464.75 210.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 464.75 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 464.75 14.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 464.75 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 464.75 14.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 464.75 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 464.75 14.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 464.75 44.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 464.75 14.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 464.75 46.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 414.75 210.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 414.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 414.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 414.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 414.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 414.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 414.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 414.75 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 414.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 414.75 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 374.75 210.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 374.75 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 374.75 14.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 374.75 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 374.75 14.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 374.75 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 374.75 14.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 374.75 44.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 374.75 14.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 374.75 46.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 330.75 210.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 330.75 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 330.75 14.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 330.75 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 330.75 14.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 330.75 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 330.75 14.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 330.75 44.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 330.75 14.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 330.75 46.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 277.75 210.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 277.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 277.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 277.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 277.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 277.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 277.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 277.75 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 277.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 277.75 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 247.75 210.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 247.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 247.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 247.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 247.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 247.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 247.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 247.75 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 247.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.50 247.75 46.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 260.5 584.75 m 312.5 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 584.75 m 378.5 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 584.75 m 444.5 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 584.75 m 502.5 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 584.75 m 562.5 584.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 589.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.00 589.43 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.00 589.43 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.00 589.43 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.00 589.43 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 523.95 589.43 Td (2013 ) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 546.45 593.96 Td (\(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.65 575.48 Td (\(in thousands, except per) Tj ET Q q 0 0 0 rg BT 430.14 575.48 Td ( shar) Tj ET Q q 0 0 0 rg BT 451.36 575.48 Td (e amounts\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 559.43 Td (Operating Data:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 559.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 544.42 Td (Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 544.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.15 544.42 Td (59,724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 544.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.15 544.42 Td (24,349) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 544.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 544.42 Td (9,410) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 544.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 544.42 Td (94) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 544.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 544.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 529.42 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 529.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.15 529.42 Td (29,687) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 529.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.15 529.42 Td (15,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 529.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 529.42 Td (4,207) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 529.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 529.42 Td (49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 529.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 529.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 514.42 Td (Asset management and acquisition fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 514.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.15 514.42 Td (1) Tj ET Q q 0 0 0 rg BT 286.15 514.42 Td (1,681) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 514.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.15 514.42 Td (6,645) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 514.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 514.42 Td (2,640) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 514.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 514.42 Td (570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 514.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 514.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 499.42 Td (General and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 499.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.15 499.42 Td (2,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 499.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.15 499.42 Td (2,044) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 499.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 499.42 Td (1,546) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 499.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 499.42 Td (556) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 499.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 499.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 484.42 Td (Performance participation allocation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 484.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.65 484.42 Td (251) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 484.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.65 484.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 484.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 484.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 484.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 484.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 484.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 484.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 469.42 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 469.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.80 469.47 Td (\(17,186) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 469.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 469.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.80 469.47 Td (\(1) Tj ET Q q 0 0 0 rg BT 352.13 469.47 Td (1,341) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 469.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 469.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.80 469.47 Td (\(5,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 469.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 469.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.80 469.47 Td (\(1,328) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 469.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 469.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 469.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 454.42 Td (Net \(income\) loss attributable to noncontrolling) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 444.42 Td (interests) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 444.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.30 444.47 Td (\(12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 444.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 444.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.30 444.47 Td (\(12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 444.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 444.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.30 444.47 Td (\(12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 444.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 444.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 444.42 Td (187) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 444.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 444.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 429.42 Td (Net income \(loss\) attributable to common) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 419.42 Td (stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 419.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.80 419.47 Td (\(17,198) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 419.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 419.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.80 419.47 Td (\(1) Tj ET Q q 0 0 0 rg BT 352.13 419.47 Td (1,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 419.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 419.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.80 419.47 Td (\(5,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 419.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 419.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.80 419.47 Td (\(1,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 419.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 419.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 419.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 404.42 Td (Basic and diluted income \(loss\) per common share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 404.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.80 404.47 Td (\(0.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 404.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 404.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.80 404.47 Td (\(0.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 404.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 404.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.80 404.47 Td (\(1.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 404.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 404.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.80 404.47 Td (\(14.63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 404.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 404.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 404.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 389.42 Td (Cash distributions declared per Class ) Tj ET Q q 0 0 0 rg BT 203.53 389.42 Td (AX share,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 379.42 Td (net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 379.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.15 379.42 Td (0.60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 379.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 379.42 Td (0.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 379.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.15 379.42 Td (0.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 379.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 379.42 Td (0.15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 379.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 379.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 364.42 Td (Cash distributions declared per Class ) Tj ET Q q 0 0 0 rg BT 203.72 364.42 Td (TX share,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 354.42 Td (net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 354.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.15 354.42 Td (0.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 354.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 354.42 Td (0.49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 354.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.15 354.42 Td (0.17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 354.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 354.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 354.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 354.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 335.42 Td (Cash distributions declared per Class IX share, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 335.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.15 335.42 Td (0.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 335.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.65 335.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 335.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 335.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 335.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 335.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 335.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 335.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 320.42 Td (W) Tj ET Q q 0 0 0 rg BT 62.04 320.42 Td (eighted average common shares outstanding -) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 310.42 Td (basic and diluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.15 310.42 Td (35,808) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.15 310.42 Td (18,191) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 310.42 Td (5,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 310.42 Td (78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 310.42 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 282.43 Td (Balance Sheet Data:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 267.42 Td (T) Tj ET Q q 0 0 0 rg BT 58.76 267.42 Td (otal investment property) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 267.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.10 267.42 Td (572,833) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 267.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.10 267.42 Td (283,875) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 267.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 267.42 Td (72,426) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 267.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.10 267.42 Td (21,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 267.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 267.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 252.42 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 252.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.15 252.42 Td (18,170) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 252.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.15 252.42 Td (98,137) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 252.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 252.42 Td (17,224) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 252.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.15 252.42 Td (2,727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 252.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 252.42 Td (200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 237.42 Td (T) Tj ET Q q 0 0 0 rg BT 58.76 237.42 Td (otal assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 237.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.10 237.42 Td (709,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 237.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.10 237.42 Td (470,345) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 237.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.10 237.42 Td (149,054) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 237.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.10 237.42 Td (28,551) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 237.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 237.42 Td (200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 222.42 Td (Long-term obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 222.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.10 222.42 Td (379,629) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 315.00 227.58 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 222.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.10 222.42 Td (258,451) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 381.00 227.58 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 222.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 222.42 Td (59,700) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 447.00 227.58 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 222.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.10 222.42 Td (24,200) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 505.00 227.58 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.00 222.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 222.42 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.25 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 194.25 Td (For the period from July 31, 2013 \(date of inception\) through December 31, 2013 for operating data and as of December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 182.25 Td (31, 2013 for balance sheet data.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.25 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 158.25 Td (Includes notes payable, or) Tj ET Q q 0 0 0 rg BT 172.23 158.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 241.47 158.25 Td (fering costs reimbursable to our ) Tj ET Q q 0 0 0 rg BT 370.60 158.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 402.42 158.25 Td (, and the distribution and stockholder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 146.25 Td (servicing fees payable to our Dealer Manager with respect to certain share classes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.25 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 122.25 Td (Includes notes payable, inclusive of the related party obligation for repayment of the Hines Credit Facility) Tj ET Q q 0 0 0 rg BT 491.67 122.25 Td (, and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 110.25 Td (distribution and stockholder servicing fees payable to our Dealer Manager with respect to certain share classes.) Tj ET Q endstream endobj 119 0 obj <> endobj 120 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (57) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Item7.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 79.99 742.25 Td (Management) Tj ET Q q 0 0 0 rg BT 142.03 742.25 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 213.62 742.25 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 718.25 Td (Y) Tj ET Q q 0 0 0 rg BT 72.64 718.25 Td (ou should r) Tj ET Q q 0 0 0 rg BT 117.83 718.25 Td (ead the following discussion and analysis together with our consolidated financial statements and notes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 706.25 Td (ther) Tj ET Q q 0 0 0 rg BT 65.74 706.25 Td (eto included in this ) Tj ET Q q 0 0 0 rg BT 144.43 706.25 Td (Annual Report on Form10-K. The following information contains forwar) Tj ET Q q 0 0 0 rg BT 441.02 706.25 Td (d-looking statements, which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (ar) Tj ET Q q 0 0 0 rg BT 58.52 694.25 Td (e subject to risks and uncertainties. Should one or mor) Tj ET Q q 0 0 0 rg BT 279.52 694.25 Td (e of these risks or uncertainties materialize, actual r) Tj ET Q q 0 0 0 rg BT 488.29 694.25 Td (esults may differ ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (materially fr) Tj ET Q q 0 0 0 rg BT 99.90 682.25 Td (om those expr) Tj ET Q q 0 0 0 rg BT 155.63 682.25 Td (essed or implied by the forwar) Tj ET Q q 0 0 0 rg BT 277.19 682.25 Td (d-looking statements. Please see Special Note Regar) Tj ET Q q 0 0 0 rg BT 495.11 682.25 Td (ding Forwar) Tj ET Q q 0 0 0 rg BT 545.58 682.25 Td (d-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (Looking Statements above for a description of these risks and uncertainties.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (Executive Summary) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 622.25 Td (Hines Global Income ) Tj ET Q q 0 0 0 rg BT 155.85 622.25 Td (T) Tj ET Q q 0 0 0 rg BT 161.61 622.25 Td (rust, Inc. \(Hines Global\), formerly known as Hines Global REIT) Tj ET Q q 0 0 0 rg BT 428.58 622.25 Td ( II, Inc., was formed as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (Maryland corporation on July31, 2013, for the purpose of investing in a diversified portfolio of quality commercial real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (properties and other real estate investments located throughout the United States and internationally) Tj ET Q q 0 0 0 rg BT 448.68 598.25 Td (. Hines Global is sponsored ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (by Hines Interests Limited Partnership \(Hines\), a fully integrated global real estate investment and management firm that has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (acquired, developed, owned, operated and sold real estate for over 60 years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 550.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 550.25 Td (e raise capital for our investments through public of) Tj ET Q q 0 0 0 rg BT 283.62 550.25 Td (ferings of our common stock. ) Tj ET Q q 0 0 0 rg BT 403.97 550.25 Td (W) Tj ET Q q 0 0 0 rg BT 412.61 550.25 Td (e commenced our initial public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 538.25 Td (fering of up to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.13 538.25 Td ($2.5 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.25 538.25 Td ( in shares of our common stock \(the Initial Of) Tj ET Q q 0 0 0 rg BT 351.52 538.25 Td (fering\) in) Tj ET Q q 0 0 0 rg BT 395.39 538.25 Td (August 2014. On September 30, 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (we suspended the sale of shares in the primary portion of the Initial Of) Tj ET Q q 0 0 0 rg BT 332.24 526.25 Td (fering, while continuing to of) Tj ET Q q 0 0 0 rg BT 449.54 526.25 Td (fer up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.91 526.25 Td ($150.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.80 526.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (common stock pursuant to our distribution reinvestment plan. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 490.25 Td (On September 26, 2017, our board of directors determined an NA) Tj ET Q q 0 0 0 rg BT 329.97 490.25 Td (V) Tj ET Q q 0 0 0 rg BT 337.01 490.25 Td ( per share of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.21 490.25 Td ($9.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.71 490.25 Td ( as of ) Tj ET Q q 0 0 0 rg BT 435.32 490.25 Td (August 31, 2017, as compared ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (to our previously determined NA) Tj ET Q q 0 0 0 rg BT 181.46 478.25 Td (V) Tj ET Q q 0 0 0 rg BT 188.50 478.25 Td ( per share of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.70 478.25 Td ($9.65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.20 478.25 Td ( as of December 31, 2016. ) Tj ET Q q 0 0 0 rg BT 373.26 478.25 Td (The NA) Tj ET Q q 0 0 0 rg BT 404.46 478.25 Td (V) Tj ET Q q 0 0 0 rg BT 411.50 478.25 Td ( as of ) Tj ET Q q 0 0 0 rg BT 435.11 478.25 Td (August 31, 2017 reflected a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (9.8% increase in the aggregate appraised value of our real estate investments when compared to the purchase price of our real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td (estate investments, excluding closing costs, transaction fees and additional capital investments since acquisition. ) Tj ET Q q 0 0 0 rg BT 504.43 454.25 Td (This 9.8% net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (increase resulted from a 7.8% appreciation in the aggregate appraised values of our real estate investments since their purchase, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (which includes a 2.0% appreciation resulting from the increased strength of the Euro against the U.S. dollar) Tj ET Q q 0 0 0 rg BT 480.16 430.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 406.25 Td (Prior to the commencement of our Follow-On Of) Tj ET Q q 0 0 0 rg BT 264.72 406.25 Td (fering and Restructuring \(as defined below\), on October 3, 2017 we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (commenced a self-tender of) Tj ET Q q 0 0 0 rg BT 161.15 394.25 Td (fer to purchase for cash up to $200.0 million of our outstanding common stock in any combination ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (of IPO Shares at a price of $9.69 per share, which was the NA) Tj ET Q q 0 0 0 rg BT 297.80 382.25 Td (V) Tj ET Q q 0 0 0 rg BT 304.84 382.25 Td ( per share of our common stock as of ) Tj ET Q q 0 0 0 rg BT 455.08 382.25 Td (August 31, 2017. ) Tj ET Q q 0 0 0 rg BT 528.42 382.25 Td (As a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (result of this self-tender of) Tj ET Q q 0 0 0 rg BT 155.90 370.25 Td (fer) Tj ET Q q 0 0 0 rg BT 166.60 370.25 Td (, we redeemed a total of 1.9 million shares related to our Initial Of) Tj ET Q q 0 0 0 rg BT 431.61 370.25 Td (fering \(IPO Shares\), or 4.7% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (of the Company) Tj ET Q q 0 0 0 rg BT 117.21 358.25 Td (s issued and outstanding IPO Shares, for an aggregate cost of $18.7 million in November 2017. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.13 358.25 Td (Item 5.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.46 358.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (Market for Registrant) Tj ET Q q 0 0 0 rg BT 139.42 346.25 Td (s Common Equity) Tj ET Q q 0 0 0 rg BT 211.55 346.25 Td (, Related Stockholder Matters and Issuer Purchases of Equity Securities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 322.25 Td (As a result of the changing landscape in the non-traded REIT) Tj ET Q q 0 0 0 rg BT 312.74 322.25 Td ( industry) Tj ET Q q 0 0 0 rg BT 347.37 322.25 Td (, on December 6, 2017 we commenced a second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (public of) Tj ET Q q 0 0 0 rg BT 85.64 310.25 Td (fering of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.63 310.25 Td ($2.5 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.74 310.25 Td ( in shares of common stock including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.22 310.25 Td ($500,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.22 310.25 Td ( of shares of) Tj ET Q q 0 0 0 rg BT 448.19 310.25 Td (fered under ourdistribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (reinvestment plan \(the Follow-on Of) Tj ET Q q 0 0 0 rg BT 200.89 298.25 Td (fering\) and changed our name from Hines Global REIT) Tj ET Q q 0 0 0 rg BT 427.30 298.25 Td ( II, Inc. to Hines Global Income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.76 286.25 Td (rust, Inc. Our Follow-on Of) Tj ET Q q 0 0 0 rg BT 168.62 286.25 Td (fering reflects a restructuring \(the Restructuring\) that our board of directors believes is in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 Td (best interests of our stockholders. Pursuant to the Restructuring, among other things:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 250.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 250.25 Td (we began operating as a non-exchange traded REIT) Tj ET Q q 0 0 0 rg BT 292.67 250.25 Td ( with no tar) Tj ET Q q 0 0 0 rg BT 338.32 250.25 Td (geted liquidity window;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 235.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 235.25 Td (we reduced broker dealer fees payable to the dealer manager and expenses in connection with our public of) Tj ET Q q 0 0 0 rg BT 514.80 235.25 Td (ferings;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 220.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 220.25 Td (we restructured the fees we pay to the ) Tj ET Q q 0 0 0 rg BT 239.27 220.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 271.09 220.25 Td (, including the elimination of acquisition fees and disposition fees;) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 68.00 204.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 204.05 Td (a cap was placed on the monthly asset management fee payable to our ) Tj ET Q q 0 0 0 rg BT 368.40 204.05 Td (Advisor equal to 1/12th of 1.25% of NA) Tj ET Q q 0 0 0 rg BT 528.75 204.05 Td (V) Tj ET Q q 0 0 0 rg BT 535.79 204.05 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 192.05 Td (the end of each month;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 177.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 177.05 Td (we implemented a performance participation allocation payable to our ) Tj ET Q q 0 0 0 rg BT 368.94 177.05 Td (Advisor to better align our ) Tj ET Q q 0 0 0 rg BT 476.98 177.05 Td (Advisor) Tj ET Q q 0 0 0 rg BT 509.57 177.05 Td () Tj ET Q q 0 0 0 rg BT 512.35 177.05 Td (s interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 165.05 Td (with our overall financial performance \(see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.47 165.05 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.41 165.05 Td ( Related Party ) Tj ET Q q 0 0 0 rg BT 359.88 165.05 Td (T) Tj ET Q q 0 0 0 rg BT 365.64 165.05 Td (ransactions for a description of this performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 153.05 Td (based allocation\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 138.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 138.05 Td (we changed the frequency with which we calculate the NA) Tj ET Q q 0 0 0 rg BT 320.44 138.05 Td (V) Tj ET Q q 0 0 0 rg BT 327.48 138.05 Td ( per share from quarterly to monthly; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 123.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 123.05 Td (we amended our share redemption program applicable to Class IX shares and Class JX shares in order to make it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 111.05 Td (applicable to all classes of shares, which enhances liquidity for current Class ) Tj ET Q q 0 0 0 rg BT 394.52 111.05 Td (AX and Class ) Tj ET Q q 0 0 0 rg BT 452.39 111.05 Td (TX stockholders and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 99.05 Td (creates a lar) Tj ET Q q 0 0 0 rg BT 133.56 99.05 Td (ger liquidity pool which is equivalent to 20% of the Company) Tj ET Q q 0 0 0 rg BT 384.08 99.05 Td (s aggregate NA) Tj ET Q q 0 0 0 rg BT 444.98 99.05 Td (V) Tj ET Q q 0 0 0 rg BT 452.03 99.05 Td ( \(subject to additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 87.05 Td (limitations described in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.37 87.05 Td (Item 5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.20 87.05 Td (\) to benefit all stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 63.05 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 63.05 Td (March16, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.04 63.05 Td (, we had received gross of) Tj ET Q q 0 0 0 rg BT 260.27 63.05 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.51 63.05 Td ($408.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.40 63.05 Td ( from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.43 63.05 Td (41.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.33 63.05 Td ( shares, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 51.05 Td (including shares issued pursuant to our distribution reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 335.61 51.05 Td (W) Tj ET Q q 0 0 0 rg BT 344.25 51.05 Td (e issue shares, including IPO Shares, pursuant to our ) Tj ET Q endstream endobj 121 0 obj <> endobj 122 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (distribution reinvestment plan at a price equal to the transaction price applicable to the class of shares being acquired at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (time the distribution is reinvested. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 706.10 Td (In connection with the Follow-On Of) Tj ET Q q 0 0 0 rg BT 216.96 706.10 Td (fering and Restructuring, certain agreements between us, Hines and certain of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.59 694.10 Td (filiates were amended and restated. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.29 694.10 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.23 694.10 Td ( Related Party ) Tj ET Q q 0 0 0 rg BT 318.70 694.10 Td (T) Tj ET Q q 0 0 0 rg BT 324.46 694.10 Td (ransactions for a description of the amended and restated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (agreements entered into with Hines and certain of its af) Tj ET Q q 0 0 0 rg BT 271.13 682.10 Td (filiates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 658.10 Td (Subsequent to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.89 658.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.47 658.10 Td (, we determined a new NA) Tj ET Q q 0 0 0 rg BT 311.36 658.10 Td (V) Tj ET Q q 0 0 0 rg BT 318.41 658.10 Td ( per share as of January 31, 2018 and February 28, 2018 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td ($9.78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 646.10 Td ( per share and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.81 646.10 Td ($9.78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.31 646.10 Td ( per share, respectively) Tj ET Q q 0 0 0 rg BT 244.83 646.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 622.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 622.10 Td (e intend to meet our primary investment objectives by investing in a portfolio of quality commercial real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (properties and other real estate investments that relate to properties that are generally diversified by geographic area, lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (expirations and tenant industries. ) Tj ET Q q 0 0 0 rg BT 186.64 598.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.08 598.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.67 598.10 Td (, we owned interests in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.09 598.10 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.09 598.10 Td ( real estate investments which contain, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (in the aggregate, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.86 586.10 Td (2.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.75 586.10 Td ( square feet of leasable space. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.45 586.10 Td (Item 2) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 331.27 586.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.77 586.10 Td ( Properties for additional information regarding our real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (estate investments. ) Tj ET Q q 0 0 0 rg BT 130.36 574.10 Td (T) Tj ET Q q 0 0 0 rg BT 135.77 574.10 Td (o a lesser extent, we also plan to invest in real estate-related securities to provide a source of liquidity for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (our share redemption program, cash management and other purposes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (Critical ) Tj ET Q q 0 0 0 rg BT 84.71 538.10 Td (Accounting ) Tj ET Q q 0 0 0 rg BT 136.10 538.10 Td (Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 514.10 Td (Our discussion and analysis of financial condition and results of operations is based on our consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (statements, which have been prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 308.52 502.10 Td (. ) Tj ET Q q 0 0 0 rg BT 315.83 502.10 Td (The preparation of the consolidated financial statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (requires us to make estimates and judgments that af) Tj ET Q q 0 0 0 rg BT 256.43 490.10 Td (fect the reported amounts of assets, liabilities and contingencies as of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. ) Tj ET Q q 0 0 0 rg BT 504.39 478.10 Td (W) Tj ET Q q 0 0 0 rg BT 513.03 478.10 Td (e evaluate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (our assumptions and estimates on an ongoing basis. ) Tj ET Q q 0 0 0 rg BT 261.46 466.10 Td (W) Tj ET Q q 0 0 0 rg BT 270.10 466.10 Td (e base our estimates on historical experience and on various other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (assumptions that we believe to be reasonable under the circumstances. ) Tj ET Q q 0 0 0 rg BT 336.02 454.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 385.92 454.10 Td (, application of our accounting policies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (involves exercising judgments regarding assumptions as to future uncertainties. ) Tj ET Q q 0 0 0 rg BT 372.43 442.10 Td (Actual results may dif) Tj ET Q q 0 0 0 rg BT 460.84 442.10 Td (fer from these estimates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (under dif) Tj ET Q q 0 0 0 rg BT 86.20 430.10 Td (ferent assumptions or conditions. ) Tj ET Q q 0 0 0 rg BT 223.77 430.10 Td (The following is a discussion of our critical accounting policies. For a discussion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (all of our significant accounting policies, see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.61 418.10 Td (Note 2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.55 418.10 Td ( Summary of Significant ) Tj ET Q q 0 0 0 rg BT 371.60 418.10 Td (Accounting Policies, to the accompanying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (consolidated financial statements.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 59.00 382.10 Td (Basis of Presentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 358.10 Td (Our consolidated financial statements included in this ) Tj ET Q q 0 0 0 rg BT 284.89 358.10 Td (Annual Report include the accounts of Hines Global and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (Operating Partnership \(over which we exercise financial and operating control\). ) Tj ET Q q 0 0 0 rg BT 373.77 346.10 Td (All intercompany balances and transactions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (have been eliminated in consolidation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 310.10 Td (e may enter into various joint venture agreements with unrelated third parties to hold or develop real estate assets. ) Tj ET Q q 0 0 0 rg BT 536.59 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 545.23 310.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (will evaluate the need to consolidate joint ventures and will consolidate those that are determined to be variable interest entities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (for which we are the primary beneficiary) Tj ET Q q 0 0 0 rg BT 213.16 286.10 Td (. ) Tj ET Q q 0 0 0 rg BT 220.48 286.10 Td (W) Tj ET Q q 0 0 0 rg BT 229.12 286.10 Td (e will also consolidate joint ventures that are not determined to be variable interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (entities, but for which we exercise control over major operating decisions through substantive participation rights, such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (approval of budgets, selection of property managers, asset management, investment activity and changes in financing. ) Tj ET Q q 0 0 0 rg BT 526.89 262.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (analysis required to identify ) Tj ET Q q 0 0 0 rg BT 164.23 250.10 Td (VIEs and primary beneficiaries is complex and requires substantial judgment. ) Tj ET Q q 0 0 0 rg BT 479.70 250.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 529.04 250.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (believe the decisions made to choose an appropriate accounting framework are critical. ) Tj ET Q q 0 0 0 rg BT 403.00 238.10 Td (T) Tj ET Q q 0 0 0 rg BT 408.41 238.10 Td (o date, we have not entered into any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (such joint ventures.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 59.00 202.10 Td (Investment Property and Lease Intangibles) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 178.10 Td (When we acquire a property) Tj ET Q q 0 0 0 rg BT 180.63 178.10 Td (, we allocate the purchase price of the acquisition based upon our assessment of the fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (of various components, including to land and building, land, building and improvements, and intangible lease assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (liabilities. Fair value determinations are based on estimated cash flow projections that utilize discount and/or capitalization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (rates, as well as certain available market information. ) Tj ET Q q 0 0 0 rg BT 268.34 142.10 Td (The fair value of land, building and improvements considers the value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (the property as if it were vacant. ) Tj ET Q q 0 0 0 rg BT 183.93 130.10 Td (The fair value of intangible lease assets is based on our evaluation of the specific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (characteristics of each lease. Factors considered include estimates of carrying costs during hypothetical expected lease-up ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (periods, current market conditions and market rates, the customer) Tj ET Q q 0 0 0 rg BT 312.50 106.10 Td () Tj ET Q q 0 0 0 rg BT 315.28 106.10 Td (s credit quality and costs to execute similar leases. ) Tj ET Q q 0 0 0 rg BT 521.43 106.10 Td (The fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (value of out-of-market leases is calculated as the present value \(using a discount rate that reflects the risks associated with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (leases\) of the dif) Tj ET Q q 0 0 0 rg BT 116.18 82.10 Td (ference between the contractual amounts to be paid pursuant to each in-place lease and our estimate of fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (market lease rates for each corresponding in-place lease. In estimating carrying costs, we include estimates of lost rentals at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar ) Tj ET Q endstream endobj 123 0 obj <> endobj 124 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (leases, we consider customer improvements, leasing commissions and legal and other related expenses. Initial valuations are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (subject to change until such information is finalized, which will occur no later than 12months after the acquisition date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 706.10 Td (Real estate assets are reviewed for impairment each reporting period if events or changes in circumstances indicate that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (carrying amount of the individual property may not be recoverable. In such an event, a comparison will be made of the current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (and projected operating cash flows and expected proceeds from the eventual disposition of each property on an undiscounted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (basis to the carrying amount of such property) Tj ET Q q 0 0 0 rg BT 230.69 670.10 Td (. If the carrying amount exceeds the undiscounted cash flows, it would be written ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (down to theestimated fair value to reflect impairment in the value of the asset. ) Tj ET Q q 0 0 0 rg BT 369.43 658.10 Td (The determination of whether investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (property is impaired requires a significant amount of judgment by management and is based on the best information available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (to management at the time of the evaluation. No impairment char) Tj ET Q q 0 0 0 rg BT 313.62 634.10 Td (ges were recorded during the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 634.10 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 622.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 622.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 622.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.94 622.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.94 622.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 59.00 598.10 Td (Deferred Leasing Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 574.10 Td (e consider a number of dif) Tj ET Q q 0 0 0 rg BT 181.70 574.10 Td (ferent factors to evaluate whether we or the lesseeis the owner of the tenant improvements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (accounting purposes. ) Tj ET Q q 0 0 0 rg BT 139.24 562.10 Td (These factors include: \(i\)whether the lease stipulates how and on what a tenant improvement allowance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (may be spent; \(ii\)whether the tenant or landlord retains legal title to the improvements; \(iii\)the uniqueness of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (improvements; \(iv\)the expected economic life of the tenant improvements relative to the term of the lease; and \(v\)who ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (constructs or directs the construction of the improvements. ) Tj ET Q q 0 0 0 rg BT 289.76 526.10 Td (The determination of who owns the tenant improvements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (accounting purposes is subject to significant judgment. In making that determination, we consider all of the above factors. No ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (one factor) Tj ET Q q 0 0 0 rg BT 89.85 502.10 Td (, however) Tj ET Q q 0 0 0 rg BT 128.88 502.10 Td (, necessarily establishes any determination.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 59.00 478.10 Td (Revenue Recognition and V) Tj ET Q q 0 0 0 rg BT 173.17 478.10 Td (aluation of Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 454.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 454.10 Td (e are required to recognize minimum rent revenues on a straight-line basis over the terms of tenant leases, including rent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (holidays and bar) Tj ET Q q 0 0 0 rg BT 115.91 442.10 Td (gain renewal options, if any) Tj ET Q q 0 0 0 rg BT 226.62 442.10 Td (. Revenues associated with tenant reimbursements are recognized in the period in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (which the expenses are incurred based upon the tenant) Tj ET Q q 0 0 0 rg BT 270.47 430.10 Td (s lease provision. Leases are not uniform in dealing with such cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (reimbursements and there are many variations in the computation. ) Tj ET Q q 0 0 0 rg BT 319.46 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 328.10 418.10 Td (e make quarterly accrual adjustments, positive or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (negative, to tenant reimbursement revenue to adjust the recorded amounts to our best estimate of the final amounts to be billed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (and collected with respect to the cost reimbursements. Revenues relating to lease termination fees are recognized on a straight-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (line basis amortized from the time that a tenant) Tj ET Q q 0 0 0 rg BT 241.05 382.10 Td (s right to occupy the leased space is modified through the end of the revised ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (lease term and are included in other revenue in the accompanying consolidated statements of operations. ) Tj ET Q q 0 0 0 rg BT 472.72 370.10 Td (T) Tj ET Q q 0 0 0 rg BT 478.13 370.10 Td (o the extent our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (leases provide for rental increases at specified intervals, we will record a receivable for rent not yet due under the lease terms. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 99.34 346.10 Td (, our management must determine, in its judgment, to what extent the unbilled rent receivable applicable to each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (specific tenant is collectible. ) Tj ET Q q 0 0 0 rg BT 168.66 334.10 Td (W) Tj ET Q q 0 0 0 rg BT 177.30 334.10 Td (e review unbilled rent receivables on a quarterly basis and take into consideration the tenant) Tj ET Q q 0 0 0 rg BT 547.72 334.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (payment history) Tj ET Q q 0 0 0 rg BT 114.06 322.10 Td (, the financial condition of the tenant, business conditions in the industry in which the tenant operates and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (economic conditions in the area in which the property is located. In the event that the collectability of unbilled rent with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (respect to any given tenant is in doubt, we would be required to record an increase in our allowance for doubtful accounts or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (record a direct write-of) Tj ET Q q 0 0 0 rg BT 142.27 286.10 Td (f of the specific rent receivable, which would have an adverse ef) Tj ET Q q 0 0 0 rg BT 399.74 286.10 Td (fect on our net income for the year in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (which the reserve is increased or the direct write-of) Tj ET Q q 0 0 0 rg BT 255.28 274.10 Td (f is recorded and would decrease our total assets and stockholders) Tj ET Q q 0 0 0 rg BT 521.12 274.10 Td ( equity) Tj ET Q q 0 0 0 rg BT 547.96 274.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 59.00 250.10 Td (Recent ) Tj ET Q q 0 0 0 rg BT 89.45 250.10 Td (Accounting Pronouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 226.10 Td (See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.94 226.10 Td (Note 2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.88 226.10 Td ( Summary of Significant ) Tj ET Q q 0 0 0 rg BT 224.92 226.10 Td (Accounting Policies for a discussion regarding recent accounting pronouncements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (and the potential impact, if any) Tj ET Q q 0 0 0 rg BT 173.75 214.10 Td (, on our financial statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (FinancialCondition, ) Tj ET Q q 0 0 0 rg BT 140.30 190.10 Td (Liquidityand ) Tj ET Q q 0 0 0 rg BT 201.44 190.10 Td (Capital ) Tj ET Q q 0 0 0 rg BT 235.61 190.10 Td (Resour) Tj ET Q q 0 0 0 rg BT 265.98 190.10 Td (ces) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 166.10 Td (Our principal demands for funds are to make real estate investments, for the payment of operating expenses and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (distributions, and for the payment of principal and interest on any indebtedness we incur) Tj ET Q q 0 0 0 rg BT 403.25 154.10 Td (. Generally) Tj ET Q q 0 0 0 rg BT 449.52 154.10 Td (, we expect to meet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (operating cash needs from our cash flows from operating activities, and we expect to fund our investments using proceeds from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (our public of) Tj ET Q q 0 0 0 rg BT 101.47 130.10 Td (ferings and from debt proceeds.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 106.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 106.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 106.10 Td (, our portfolio was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.66 106.10 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.99 106.10 Td ( leveraged \(based on the valuations of our real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (investments using the ) Tj ET Q q 0 0 0 rg BT 138.61 94.10 Td (August 2017 appraised values and the purchase price of Queen) Tj ET Q q 0 0 0 rg BT 393.25 94.10 Td (s Court Student Residences\) with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (weighted average interest rate of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.99 82.10 Td (2.63%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.82 82.10 Td (. ) Tj ET Q q 0 0 0 rg BT 216.14 82.10 Td (W) Tj ET Q q 0 0 0 rg BT 224.78 82.10 Td (e expect that once we have fully invested the proceeds of our public of) Tj ET Q q 0 0 0 rg BT 506.99 82.10 Td (ferings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (other potential subsequent of) Tj ET Q q 0 0 0 rg BT 165.63 70.10 Td (ferings, our debt financing, including our pro rata share of the debt financing of entities in which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (we invest, will be in the range of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.83 58.10 Td (40%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.16 58.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.94 58.10 Td (60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.27 58.10 Td ( of the aggregate value of our real estate investments and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (assets. Financing for acquisitions and investments may be obtained at the time an asset is acquired or an investment is made or ) Tj ET Q endstream endobj 125 0 obj <> endobj 126 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (at such later time as determined to be appropriate. In addition, debt financing may be used from time to time for property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (improvements, lease inducements, tenant improvements, purchase of real estate-related securities and other working capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (needs, including the payment of distributions and redemptions. Our real estate-related securities portfolio may have embedded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (leverage, including through the use of reverse repurchase agreements and derivatives, including, but not limited to, total return ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (swaps, securities lending arrangements and credit default swaps. ) Tj ET Q q 0 0 0 rg BT 312.42 694.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 362.32 694.10 Td (, the amount of debt placed on an individual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (property or related to a particular investment, including our pro rata share of the amount of debt incurred by an individual entity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (in which we invest, may be less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.14 670.10 Td (40%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.47 670.10 Td ( or more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.56 670.10 Td (60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.89 670.10 Td ( of the value of such property/investment or the value of the assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (owned by such entity) Tj ET Q q 0 0 0 rg BT 134.61 658.10 Td (, depending on market conditions and other factors. Our aggregate borrowings, secured and unsecured, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (must be reasonable in relation to our net assets and must be reviewed by our board of directors at least quarterly) Tj ET Q q 0 0 0 rg BT 496.99 646.10 Td (. Further) Tj ET Q q 0 0 0 rg BT 533.53 646.10 Td (, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (charter limits our borrowing to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.81 634.10 Td (300%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.14 634.10 Td ( of our net assets \(which approximates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.48 634.10 Td (75%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.81 634.10 Td ( of the cost of our assets\) unless any excess ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (borrowing is approved by a majority of our independent directors and is disclosed to our stockholders in our next quarterly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (report along with justification for the excess. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 586.10 Td (Notwithstanding the above, depending on market conditions and other factors, we may choose not to place debt on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (portfolio or our assets and may choose not to borrow to finance our operations or to acquire properties. ) Tj ET Q q 0 0 0 rg BT 466.00 574.10 Td (Any indebtedness we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (do incur will likely be subject to continuing covenants, and we will likely be required to make continuing representations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (warranties about our company in connection with such debt. Moreover) Tj ET Q q 0 0 0 rg BT 335.35 550.10 Td (, some or all of our debt may be secured by some or all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (of our assets. If we default in the payment of interest or principal on any such debt, breach any representation or warranty in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (connection with any borrowing or violate any covenant in any loan document, our lender may accelerate the maturity of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (debt requiring us to immediately repay all outstanding principal. If we are unable to make such payment, our lender could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (foreclose on our assets that are pledged as collateral to such lender) Tj ET Q q 0 0 0 rg BT 315.73 502.10 Td (. ) Tj ET Q q 0 0 0 rg BT 323.05 502.10 Td (The lender could also sue us or force us into bankruptcy) Tj ET Q q 0 0 0 rg BT 546.78 502.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (Any such event would have a material adverse ef) Tj ET Q q 0 0 0 rg BT 246.41 490.10 Td (fect on the value of an investment in our common shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 466.10 Td (The discussions below provide additional details regarding our cash flows.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 59.00 442.10 Td (Cash Flows from Operating ) Tj ET Q q 0 0 0 rg BT 176.43 442.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 418.10 Td (Our real estate properties generate cash flow in the form of rental revenues, which are used to pay direct leasing costs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (property-level operating expenses and interest payments. Property-level operating expenses consist primarily of salaries and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (wages of property management personnel, utilities, cleaning, insurance, security and building maintenance costs, property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (management and leasing fees, and property taxes. ) Tj ET Q q 0 0 0 rg BT 253.26 382.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 303.16 382.10 Td (, we incur fund-level costs such as general and administrative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (expenses, acquisition-related expenses, asset management fees, the performance participation allocation and, for periods prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (to the Restructuring, acquisition fees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 334.10 Td (Net cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.21 334.10 Td (provided by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.25 334.10 Td ( operating activities for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.47 334.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.05 334.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.49 334.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.49 334.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.04 334.10 Td ($6.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.93 334.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.37 334.10 Td ($4.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 322.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 131.55 322.10 Td (. Net cash provided by operating activities increased as a result of our three acquisitions during the year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.38 310.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.96 310.10 Td ( and the operations of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.93 310.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.93 310.10 Td ( acquisitions for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.58 310.10 Td (year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.17 310.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.67 310.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.25 310.10 Td (. ) Tj ET Q q 0 0 0 rg BT 493.57 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 502.21 310.10 Td (e paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (acquisition fees and acquisition-related expenses totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.48 298.10 Td ($1) Tj ET Q q 0 0 0 rg BT 290.11 298.10 Td (1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.00 298.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.44 298.10 Td ($6.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.33 298.10 Td ( for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.69 298.10 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 286.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.44 286.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.44 286.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 162.10 286.10 Td (. Under) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 194.59 286.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.09 286.10 Td (U.S. generally accepted) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 292.05 286.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.55 286.10 Td (accounting principles \(GAAP\), acquisition fees and acquisition-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (related expenses are expensed and therefore reduce cash flows from operating activities. However) Tj ET Q q 0 0 0 rg BT 444.42 274.10 Td (, we fund these expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (with proceeds from our of) Tj ET Q q 0 0 0 rg BT 154.23 262.10 Td (ferings and/or acquisition-related indebtedness.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 238.10 Td (Net cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.21 238.10 Td (provided by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.25 238.10 Td ( operating activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.67 238.10 Td ($4.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.56 238.10 Td ( for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.02 238.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.60 238.10 Td ( compared to net cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (used in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.61 226.10 Td ( operating activities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.80 226.10 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.69 226.10 Td ( for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.15 226.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.74 226.10 Td (. Net cash provided by operating activities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (increased as a result of the acquisition of the Domain ) Tj ET Q q 0 0 0 rg BT 264.38 214.10 Td (Apartments, Cottonwood Corporate Center and Goodyear Crossing II ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.41 202.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.99 202.10 Td ( and the operation of Bishop) Tj ET Q q 0 0 0 rg BT 334.36 202.10 Td (s Square \(acquired March 2015\) for the entire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.84 202.10 Td (year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.88 190.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.38 190.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.96 190.10 Td (. ) Tj ET Q q 0 0 0 rg BT 162.28 190.10 Td (W) Tj ET Q q 0 0 0 rg BT 170.92 190.10 Td (e paid acquisition fees and acquisition-related expenses totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.06 190.10 Td ($6.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.95 190.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.39 190.10 Td ($5.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.28 190.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.69 178.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.28 178.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.71 178.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.71 178.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 285.38 178.10 Td (. Under GAAP) Tj ET Q q 0 0 0 rg BT 343.98 178.10 Td (, acquisition fees and acquisition-related expenses are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (expensed and therefore reduce cash flows from operating activities. However) Tj ET Q q 0 0 0 rg BT 361.42 166.10 Td (, we fund these expenses with proceeds from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 154.10 Td (ferings and/or acquisition-related indebtedness.) Tj ET Q endstream endobj 127 0 obj <> endobj 128 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (61) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 59.00 742.25 Td (Cash Flows from Investing ) Tj ET Q q 0 0 0 rg BT 173.10 742.25 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.25 Td (Net cash used in investing activities for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.93 718.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.52 718.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.52 718.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.52 718.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.95 718.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.95 718.25 Td ( were primarily due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.25 Td (following:) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 680.9169921875 m 70 680.9169921875 l s q 0 0 0 rg BT 50.00 682.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 682.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 670.25 Td (Payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.33 670.25 Td ($192.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.22 670.25 Td ( related to the acquisition of Rookwood, the Montrose Student Residences and the Queen) Tj ET Q q 0 0 0 rg BT 535.14 670.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 658.25 Td (Court Student Residences.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 643.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 643.25 Td (Capital expenditures of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.06 643.25 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.96 643.25 Td ( primarily related to development work at Bishop) Tj ET Q q 0 0 0 rg BT 473.19 643.25 Td (s Square and various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 631.25 Td (capital improvements at our properties. ) Tj ET Q q 0 0 0 rg BT 229.71 631.25 Td (W) Tj ET Q q 0 0 0 rg BT 238.75 631.25 Td (ith respect to the development works at Bishop) Tj ET Q q 0 0 0 rg BT 429.55 631.25 Td (s Square, we expect the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 619.25 Td (construction costs to approximate 14.8 million \(approximately $17.7 million assuming a rate of $1.20 per EUR as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 607.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.58 607.25 Td (\) and for the development works to be complete in the fourth quarter of 2018.) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 581.9169921875 m 70 581.9169921875 l s q 0 0 0 rg BT 50.00 583.25 Td (2016) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 70.00 583.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 568.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 568.25 Td (Payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.33 568.25 Td ($244.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.22 568.25 Td ( related to the acquisition of the Domain ) Tj ET Q q 0 0 0 rg BT 338.51 568.25 Td (Apartments, Cottonwood Corporate Center and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 556.25 Td (Goodyear Crossing II and their related lease intangibles.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 541.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 541.25 Td (Payment of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.26 541.25 Td ($5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.16 541.25 Td ( earnest money deposit in connection with the acquisition of Rookwood, which we acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 529.25 Td (January 2017.) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 503.9169921875 m 70 503.9169921875 l s q 0 0 0 rg BT 50.00 505.25 Td (2015) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 70.00 505.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 490.25 Td (Payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.33 490.25 Td ($102.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.22 490.25 Td ( related to the acquisition of Bishop) Tj ET Q q 0 0 0 rg BT 320.74 490.25 Td (s Square and its related lease intangibles in March 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 475.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 475.25 Td (Payment of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.26 475.25 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.16 475.25 Td ( earnest money deposit in connection with the acquisition of the Domain ) Tj ET Q q 0 0 0 rg BT 464.31 475.25 Td (Apartments.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 59.00 451.25 Td (Cash Flows from Financing ) Tj ET Q q 0 0 0 rg BT 178.11 451.25 Td (Activities) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 427.25 Td (Public Offerings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 403.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 403.25 Td (e commenced the Initial Of) Tj ET Q q 0 0 0 rg BT 185.86 403.25 Td (fering in ) Tj ET Q q 0 0 0 rg BT 221.96 403.25 Td (August 2014 and terminated our of) Tj ET Q q 0 0 0 rg BT 362.03 403.25 Td (fering in December 2017, except for shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 391.25 Td (issued pursuant to our distribution reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 267.85 391.25 Td (W) Tj ET Q q 0 0 0 rg BT 276.48 391.25 Td (e received gross proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.27 391.25 Td ($138.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.16 391.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.16 391.25 Td ($146.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.05 391.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.49 391.25 Td ($101.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 379.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 379.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 131.55 379.25 Td (, during the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.85 379.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.44 379.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.44 379.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.44 379.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.88 379.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.88 379.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 425.54 379.25 Td (, excluding proceeds from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 367.25 Td (distribution reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 177.30 367.25 Td (W) Tj ET Q q 0 0 0 rg BT 185.94 367.25 Td (e commenced our Follow-on Of) Tj ET Q q 0 0 0 rg BT 314.06 367.25 Td (fering in December 2017, but did not raise any proceeds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 355.25 Td (related to the Follow-On Of) Tj ET Q q 0 0 0 rg BT 161.46 355.25 Td (fering in 2017. Please see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.93 355.25 Td (Note 1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.87 355.25 Td ( Or) Tj ET Q q 0 0 0 rg BT 321.24 355.25 Td (ganization for additional information regarding our public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 343.25 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 343.25 Td (ferings. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 319.25 Td (Prior to the commencement of our Follow-on Of) Tj ET Q q 0 0 0 rg BT 262.50 319.25 Td (fering, in October 2017, we commenced a self-tender of) Tj ET Q q 0 0 0 rg BT 486.68 319.25 Td (fer for up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 307.25 Td ($200.0 million in IPO Shares at a price of $9.69 per share. ) Tj ET Q q 0 0 0 rg BT 288.10 307.25 Td (W) Tj ET Q q 0 0 0 rg BT 296.74 307.25 Td (e redeemed a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.08 307.25 Td (1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.97 307.25 Td ( IPO Shares for an aggregate cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 295.25 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.83 295.25 Td ($18.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.72 295.25 Td ( in November 2017 in connection with our self-tender of) Tj ET Q q 0 0 0 rg BT 340.87 295.25 Td (fer) Tj ET Q q 0 0 0 rg BT 351.42 295.25 Td (. In addition, during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.93 295.25 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 283.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 283.25 Td (, we redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.52 283.25 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.41 283.25 Td ( in shares of common stock pursuant to our share redemption programs in ef) Tj ET Q q 0 0 0 rg BT 484.44 283.25 Td (fect prior to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 271.25 Td (Restructuring, which were suspended between ) Tj ET Q q 0 0 0 rg BT 237.72 271.25 Td (August 31, 2017 and December 3, 2017, in compliance with SEC rules ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 259.25 Td (applicable to our self-tender of) Tj ET Q q 0 0 0 rg BT 173.10 259.25 Td (fer) Tj ET Q q 0 0 0 rg BT 183.65 259.25 Td (. Shares of our common stock redeemed pursuant to our share redemption program were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 247.25 Td (insignificant in prior years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 223.25 Td (In addition to the investing activities described previously) Tj ET Q q 0 0 0 rg BT 299.25 223.25 Td (, we use proceeds from our public of) Tj ET Q q 0 0 0 rg BT 445.69 223.25 Td (ferings to make certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 211.25 Td (payments to our ) Tj ET Q q 0 0 0 rg BT 116.38 211.25 Td (Advisor and our Dealer Manager during the various phases of our or) Tj ET Q q 0 0 0 rg BT 390.29 211.25 Td (ganization and operation. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 199.25 Td (or) Tj ET Q q 0 0 0 rg BT 58.15 199.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 127.39 199.25 Td (fering stage, these include, without limitation, payments to our Dealer Manager for selling commissions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 187.25 Td (dealer manager fees and distribution and stockholder servicing fees. During the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.87 187.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.45 187.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.45 187.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.45 187.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 175.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 175.25 Td (, we made payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.97 175.25 Td ($7.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.86 175.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.86 175.25 Td ($8.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.75 175.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.19 175.25 Td ($9.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.08 175.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 388.75 175.25 Td (, for selling commissions, dealer manager ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 163.25 Td (fees and distribution and stockholder servicing fees. Selling commissions, dealer manager fees and distribution and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 151.25 Td (stockholder servicing fees vary for each share class as described more fully in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.05 151.25 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.99 151.25 Td ( Related Party ) Tj ET Q q 0 0 0 rg BT 462.46 151.25 Td (T) Tj ET Q q 0 0 0 rg BT 468.21 151.25 Td (ransactions. ) Tj ET Q q 0 0 0 rg BT 518.02 151.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 139.25 Td (decrease in the payment of these fees for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.28 139.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.86 139.25 Td ( as compared to the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.20 139.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.78 139.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 127.25 Td (is primarily a result of a reduction in gross of) Tj ET Q q 0 0 0 rg BT 230.61 127.25 Td (fering proceeds raised. ) Tj ET Q q 0 0 0 rg BT 326.22 127.25 Td (The decrease in the payment of these fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 115.25 Td (commissions during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.14 115.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.72 115.25 Td ( as compared to the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.05 115.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.64 115.25 Td ( is primarily due to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 103.25 Td (higher proportion of Class ) Tj ET Q q 0 0 0 rg BT 157.58 103.25 Td (TX shares and Class IX shares being sold during the year ended December 31, 2016, which had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 91.25 Td (lower selling commissions and dealer manager fees than Class ) Tj ET Q q 0 0 0 rg BT 301.88 91.25 Td (AX shares. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 67.25 Td (Through December 5, 2017, we also used proceeds from the Initial Of) Tj ET Q q 0 0 0 rg BT 348.57 67.25 Td (fering to make payments to our ) Tj ET Q q 0 0 0 rg BT 475.76 67.25 Td (Advisor for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 55.25 Td (reimbursement of or) Tj ET Q q 0 0 0 rg BT 131.46 55.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 200.70 55.25 Td (fering costs that were deemed issuer costs. During the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.45 55.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.03 55.25 Td (, ) Tj ET Q endstream endobj 129 0 obj <> endobj 130 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 742.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.44 742.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.44 742.10 Td (, we made payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.41 742.10 Td ($3.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.30 742.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.30 742.10 Td ($5.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.19 742.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.63 742.10 Td ($5.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.52 742.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 428.18 742.10 Td (, for these or) Tj ET Q q 0 0 0 rg BT 478.54 742.10 Td (ganization and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 730.10 Td (fering costs. Our ) Tj ET Q q 0 0 0 rg BT 129.53 730.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 168.70 730.10 Td (Agreement was amended, ef) Tj ET Q q 0 0 0 rg BT 282.35 730.10 Td (fective February 29, 2016, to cap the amount which we will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (reimburse our ) Tj ET Q q 0 0 0 rg BT 107.76 718.10 Td (Advisor for the cumulative or) Tj ET Q q 0 0 0 rg BT 226.44 718.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 295.68 718.10 Td (fering costs incurred in connection with our or) Tj ET Q q 0 0 0 rg BT 481.28 718.10 Td (ganization and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (public of) Tj ET Q q 0 0 0 rg BT 85.64 706.10 Td (ferings at 2.5% of gross proceeds raised through our public of) Tj ET Q q 0 0 0 rg BT 332.90 706.10 Td (ferings. ) Tj ET Q q 0 0 0 rg BT 367.62 706.10 Td (As a result of the cap on reimbursement as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (percentage of gross of) Tj ET Q q 0 0 0 rg BT 138.39 694.10 Td (fering proceeds, during the year ended December 31, 2016, our ) Tj ET Q q 0 0 0 rg BT 393.58 694.10 Td (Advisor reimbursed us for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.34 694.10 Td ($4.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.23 694.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (or) Tj ET Q q 0 0 0 rg BT 58.15 682.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 127.39 682.10 Td (fering costs that we had previously reimbursed in excess of this 2.5% cap. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 658.10 Td (Ef) Tj ET Q q 0 0 0 rg BT 77.26 658.10 Td (fective December 6, 2017, the ) Tj ET Q q 0 0 0 rg BT 199.71 658.10 Td (Advisor agreed to advance all of our or) Tj ET Q q 0 0 0 rg BT 356.41 658.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 425.65 658.10 Td (fering costs, consisting of issuer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (costs and certain underwriting costs \(but excluding selling commissions, dealer manager fees and distribution and stockholder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (servicing fees\) related to our public of) Tj ET Q q 0 0 0 rg BT 202.54 634.10 Td (ferings, through December 31, 2018. ) Tj ET Q q 0 0 0 rg BT 354.82 634.10 Td (W) Tj ET Q q 0 0 0 rg BT 363.46 634.10 Td (e will reimburse the ) Tj ET Q q 0 0 0 rg BT 445.10 634.10 Td (Advisor for all such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (advanced expenses, as well as any or) Tj ET Q q 0 0 0 rg BT 197.82 622.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 267.06 622.10 Td (fering costs incurred in prior periods related to our Initial Of) Tj ET Q q 0 0 0 rg BT 508.47 622.10 Td (fering, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (ratably through December 31, 2023, to the extent cumulative or) Tj ET Q q 0 0 0 rg BT 304.46 610.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 373.70 610.10 Td (fering costs do not exceed an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (2.5% of gross of) Tj ET Q q 0 0 0 rg BT 115.92 598.10 Td (fering proceeds from our public of) Tj ET Q q 0 0 0 rg BT 253.75 598.10 Td (ferings. ) Tj ET Q q 0 0 0 rg BT 288.84 598.10 Td (The total reimbursement related to or) Tj ET Q q 0 0 0 rg BT 437.77 598.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 507.01 598.10 Td (fering costs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (selling commissions, dealer manager fees and distribution and stockholder servicing fees may not exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.49 586.10 Td (15.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.32 586.10 Td ( of gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (proceeds from our public of) Tj ET Q q 0 0 0 rg BT 161.45 574.10 Td (ferings.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 550.10 Td (Distributions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 526.10 Td (W) Tj ET Q q 0 0 0 rg BT 77.04 526.10 Td (ith the authorization of our board of directors, we declared distributions as of daily record dates and paid them on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (monthly basis through December 31, 2017. Beginning in January 2018, we have and intend to continue to declare distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (as of monthly record dates and pay them on a monthly basis. ) Tj ET Q q 0 0 0 rg BT 297.54 502.10 Td (W) Tj ET Q q 0 0 0 rg BT 306.58 502.10 Td (ith the authorization of our board of directors, we declared ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (monthly distributions from January 2018 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.99 490.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.58 490.10 Td ( at a gross distribution rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.28 490.10 Td ($0.05083) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.78 490.10 Td ( per month for each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (share class less any applicable distribution and stockholder servicing fees. Distributions will be made on all classes of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (common stock at the same time, including any outstanding IPO Shares. ) Tj ET Q q 0 0 0 rg BT 339.96 466.10 Td (All distributions were or will be paid in cash or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (reinvested in shares of our common stock for those participating in our distribution reinvestment plan and have been or will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (paid or issued, respectively) Tj ET Q q 0 0 0 rg BT 158.21 442.10 Td (, on the first business day following the completion of the month to which they relate. Distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (reinvested pursuant to our distribution reinvestment plan were or will be reinvested in shares of the same class as the shares on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (which the distributions are being made. Some or all of the cash distributions may be paid from sources other than cash flows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (from operations, as described below) Tj ET Q q 0 0 0 rg BT 194.03 406.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 382.10 Td (The tables below outline the net cash distributions declared for each class of shares for the years ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (2017, 2016 and 2015. ) Tj ET Q q 0 0 0 rg BT 141.76 370.10 Td (The net cash distributions presented below are representative of the gross distribution rate declared by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (our board of directors less any applicable ongoing distribution and stockholder servicing fees, which is more fully described in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.94 346.10 Td ( Related Party ) Tj ET Q q 0 0 0 rg BT 148.41 346.10 Td (T) Tj ET Q q 0 0 0 rg BT 154.17 346.10 Td (ransactions.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 305.60 306.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 305.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.50 305.60 17.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 305.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 305.60 10.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 305.60 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 548.50 305.60 15.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 275.60 306.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 275.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.50 275.60 17.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 275.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 275.60 10.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 275.60 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 548.50 275.60 15.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 320.6 m 410.5 320.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 320.6 m 482.5 320.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 320.6 m 548.5 320.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 305.6 m 410.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 305.6 m 482.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 305.6 m 548.5 305.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 396.60 325.28 Td (Y) Tj ET Q q 0 0 0 rg BT 403.27 325.28 Td (ear) Tj ET Q q 0 0 0 rg BT 416.50 325.28 Td ( Ended December) Tj ET Q q 0 0 0 rg BT 492.42 325.28 Td ( 31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 373.00 310.28 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.50 310.28 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.00 310.28 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 295.27 Td (Cash distributions declared per Class ) Tj ET Q q 0 0 0 rg BT 203.53 295.27 Td (AX share, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.00 295.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.15 295.27 Td (0.60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 295.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 295.27 Td (0.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.00 295.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 295.27 Td (0.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 280.27 Td (Cash distributions declared per Class ) Tj ET Q q 0 0 0 rg BT 203.72 280.27 Td (TX share, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.00 280.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.15 280.27 Td (0.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 280.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 280.27 Td (0.49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.00 280.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 280.27 Td (0.17) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 551.00 285.43 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 265.27 Td (Cash distributions declared per Class IX share, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.00 265.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.15 265.27 Td (0.39) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 413.00 270.43 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 265.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 265.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.00 265.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.65 265.27 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 237.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 237.10 Td (For the period from ) Tj ET Q q 0 0 0 rg BT 148.54 237.10 Td (August 24, 2015 \(the date the first distribution related to Class ) Tj ET Q q 0 0 0 rg BT 400.54 237.10 Td (TX shares was declared\) through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 225.10 Td (December 31, 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 201.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 201.10 Td (For the period from May 1, 2017 \(the date the first distribution related to Class IX shares was declared\) through December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 189.10 Td (31, 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 165.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 165.10 Td (e have not generated and we may continue to be unable to generate suf) Tj ET Q q 0 0 0 rg BT 359.40 165.10 Td (ficient cash flow from operations to fully fund ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 153.10 Td (distributions paid. ) Tj ET Q q 0 0 0 rg BT 127.04 153.10 Td (Therefore, our distributions have been paid and may continue to be paid, and during the of) Tj ET Q q 0 0 0 rg BT 488.70 153.10 Td (fering phase, are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 141.10 Td (likely to be paid at least partially from other sources, such as proceeds from our debt financings, proceeds from our public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 129.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 129.10 Td (ferings, cash advances by our ) Tj ET Q q 0 0 0 rg BT 178.11 129.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 209.93 129.10 Td (, cash resulting from a waiver or deferral of fees and/or proceeds from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 117.10 Td (assets. For example, we funded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.52 117.10 Td (56%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.85 117.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.85 117.10 Td (60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.18 117.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.62 117.10 Td (23%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.95 117.10 Td ( of total distributions for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.91 117.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.50 117.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.50 117.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.50 117.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 105.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 105.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.66 105.10 Td (, with cash flows from financing activities, which includes of) Tj ET Q q 0 0 0 rg BT 367.14 105.10 Td (fering proceeds.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 81.10 Td (Commencing with the quarter ended December 31, 2014, our ) Tj ET Q q 0 0 0 rg BT 315.43 81.10 Td (Advisor agreed to waive the asset management fees for each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 69.10 Td (quarter through December31, 2016, to the extent that our MFFO, for a particular quarter) Tj ET Q q 0 0 0 rg BT 405.32 69.10 Td (, as disclosed in our ) Tj ET Q q 0 0 0 rg BT 486.43 69.10 Td (Annual Report on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 57.10 Td (Form 10-K or Quarterly Report on Form 10-Q, as applicable, amounted to less than 100% of the aggregate distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 45.10 Td (declared to our stockholders for such quarter) Tj ET Q q 0 0 0 rg BT 228.27 45.10 Td (. Our ) Tj ET Q q 0 0 0 rg BT 253.27 45.10 Td (Advisor also agreed to waive the asset management fees otherwise payable ) Tj ET Q endstream endobj 131 0 obj <> endobj 132 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (to it for the quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.40 742.10 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.00 742.10 Td ( to the extent that our MFFO for such quarter) Tj ET Q q 0 0 0 rg BT 398.40 742.10 Td (, as reduced to reflect the distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (and stockholder servicing fees payable for such quarter) Tj ET Q q 0 0 0 rg BT 270.35 730.10 Td (, as disclosed in our Quarterly Report on Form 10-Q, amounted to less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (than 100% of the aggregate distributions declared to our stockholders for that quarter) Tj ET Q q 0 0 0 rg BT 389.90 718.10 Td (. ) Tj ET Q q 0 0 0 rg BT 396.85 718.10 Td (As a result of these fee waivers, cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (flows from operations that would have been paid to our ) Tj ET Q q 0 0 0 rg BT 273.84 706.10 Td (Advisor for asset management feesmay be available to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (distributions to stockholders. ) Tj ET Q q 0 0 0 rg BT 170.65 694.10 Td (These fee waivers are not deferrals and accordingly) Tj ET Q q 0 0 0 rg BT 376.28 694.10 Td (, any fees that were waived will not be paid to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (our ) Tj ET Q q 0 0 0 rg BT 65.28 682.10 Td (Advisor in cash at any time in the future. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 658.10 Td (The table below outlines, with respect to each of the years ended December 31, 2016 and 2015, the asset management fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (earned by our ) Tj ET Q q 0 0 0 rg BT 106.92 646.10 Td (Advisor without the waivers, the amounts waived pursuant to the asset management fee waivers described above, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (if any) Tj ET Q q 0 0 0 rg BT 72.40 634.10 Td (, and the asset management fees earned by our ) Tj ET Q q 0 0 0 rg BT 260.10 634.10 Td (Advisor after application of the waivers \(in thousands\). Our ) Tj ET Q q 0 0 0 rg BT 503.65 634.10 Td (Advisor did ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (not waive any asset management fees payable to it during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.06 622.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.64 622.10 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 576.60 203.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 576.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 576.60 101.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 576.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.00 576.60 105.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.00 576.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 576.60 92.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 548.60 203.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 548.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 548.60 101.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 548.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.00 548.60 105.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.00 548.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 548.60 92.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 576.6 m 252 576.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 576.6 m 357 576.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361 576.6 m 466 576.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 576.6 m 562 576.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 581.28 Td (For) Tj ET Q q 0 0 0 rg BT 66.87 581.28 Td ( the ) Tj ET Q q 0 0 0 rg BT 84.83 581.28 Td (Y) Tj ET Q q 0 0 0 rg BT 90.94 581.28 Td (ears Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.30 590.33 Td (Asset Management ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.70 580.33 Td (Fee Pr) Tj ET Q q 0 0 0 rg BT 300.55 580.33 Td (e-W) Tj ET Q q 0 0 0 rg BT 317.77 580.33 Td (aiver) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.55 590.33 Td (Asset Management Fee ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 396.85 580.33 Td (W) Tj ET Q q 0 0 0 rg BT 406.30 580.33 Td (aived) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.80 590.33 Td (Asset Management ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.45 580.33 Td (Fee Post-W) Tj ET Q q 0 0 0 rg BT 529.04 580.33 Td (aiver) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 567.17 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.50 567.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 567.17 Td (4,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.50 567.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 567.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.50 567.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 567.17 Td (4,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 553.17 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.50 553.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 553.17 Td (2,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.50 553.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.65 553.17 Td (1,252) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.50 553.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 553.17 Td (948) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 539.17 Td (December 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.50 539.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.15 539.17 Td (888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.50 539.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 539.17 Td (583) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.50 539.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 539.17 Td (305) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 511.10 Td (The following table outlines our total distributions declared to stockholders for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.68 511.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.26 511.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.26 511.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.26 511.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 499.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.94 499.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.94 499.10 Td (, including the breakout between the distributions declared in cash and those reinvested pursuant to our distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 487.10 Td (reinvestment plan \(in thousands\).) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 427.60 150.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.50 427.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 427.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.50 427.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 427.60 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.50 427.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 427.60 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 427.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 427.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 427.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 427.60 33.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 427.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 427.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.50 427.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 529.50 427.60 33.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 399.60 150.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.50 399.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 204.50 399.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.50 399.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 399.60 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.50 399.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 399.60 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 399.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 399.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 399.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 399.60 33.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 399.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 399.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.50 399.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 529.50 399.60 33.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 450.6 m 264.5 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 450.6 m 268.5 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 450.6 m 331.5 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331.5 450.6 m 335.5 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 450.6 m 384.5 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 450.6 m 436.5 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 450.6 m 440.5 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440.5 450.6 m 473.5 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 450.6 m 477.5 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 450.6 m 525.5 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 525.5 450.6 m 529.5 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 529.5 450.6 m 562.5 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 427.6 m 200.5 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 450.6 m 264.5 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 427.6 m 264.5 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 450.6 m 331.5 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 427.6 m 331.5 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 427.6 m 384.5 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 427.6 m 436.5 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 427.6 m 440.5 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440.5 427.6 m 473.5 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 427.6 m 525.5 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 525.5 427.6 m 529.5 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 529.5 427.6 m 562.5 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 427.6 m 200.5 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 427.6 m 264.5 427.6 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 455.06 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 268.95 455.05 Td (Stockholders) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 455.90 455.05 Td (Sour) Tj ET Q q 0 0 0 rg BT 474.24 455.05 Td (ces) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 485.73 459.13 Td ( \(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 432.05 Td (Distributions for) Tj ET Q q 0 0 0 rg BT 117.09 432.05 Td ( the ) Tj ET Q q 0 0 0 rg BT 133.25 432.05 Td (Y) Tj ET Q q 0 0 0 rg BT 138.75 432.05 Td (ears Ended) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 224.20 441.05 Td (Cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 208.70 432.05 Td (Distributions) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.20 441.05 Td (Distributions) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 278.50 432.05 Td (Reinvested) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 349.65 441.05 Td (T) Tj ET Q q 0 0 0 rg BT 355.24 441.05 Td (otal) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 342.30 432.05 Td (Declar) Tj ET Q q 0 0 0 rg BT 367.70 432.05 Td (ed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 396.55 441.05 Td (Cash Flows Fr) Tj ET Q q 0 0 0 rg BT 452.47 441.05 Td (om) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 391.85 432.05 Td (Operating ) Tj ET Q q 0 0 0 rg BT 433.35 432.05 Td (Activities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 485.55 441.05 Td (Cash Flows Fr) Tj ET Q q 0 0 0 rg BT 541.39 441.05 Td (om) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 481.35 432.05 Td (Financing ) Tj ET Q q 0 0 0 rg BT 521.61 432.05 Td (Activities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 418.06 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 207.00 418.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 240.75 418.06 Td (9,226) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 271.00 418.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 303.25 418.06 Td (10,547) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.00 418.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.25 418.06 Td (19,773) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 418.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.75 418.06 Td (8,662) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.50 418.06 Td (44) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 418.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.00 418.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 497.25 418.06 Td (1) Tj ET Q q 0 0 0 rg BT 501.75 418.06 Td (1,123) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 418.06 Td (56) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 418.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 404.06 Td (December 31, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 207.00 404.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 240.75 404.06 Td (4,926) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 271.00 404.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.75 404.06 Td (5,186) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.00 404.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.25 404.06 Td (10,1) Tj ET Q q 0 0 0 rg BT 372.00 404.06 Td (12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 404.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.75 404.06 Td (4,066) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.50 404.06 Td (40) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 404.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.00 404.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.75 404.06 Td (6,058) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 404.06 Td (60) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 404.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 390.06 Td (December 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 207.00 390.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 240.75 390.06 Td (1,432) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 271.00 390.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.75 390.06 Td (1,492) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.00 390.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 360.75 390.06 Td (2,924) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 390.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.75 390.06 Td (2,276) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.50 390.06 Td (77) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 390.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.00 390.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 508.50 390.06 Td (660) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 390.06 Td (23) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 390.06 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 362.10 Td (Includes sources used to fund distributions paid to noncontrolling interests which were equal to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.07 362.10 Td ($12,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.57 362.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 350.10 Td (each of the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.34 350.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.92 350.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.92 350.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.92 350.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.36 350.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.36 350.10 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 326.10 Td (Debt Financings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 302.10 Td (As mentioned previously) Tj ET Q q 0 0 0 rg BT 167.89 302.10 Td (, our portfolio was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.27 302.10 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.60 302.10 Td ( leveraged as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.12 302.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.71 302.10 Td ( \(based on the valuations of our real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 290.10 Td (estate investments using the ) Tj ET Q q 0 0 0 rg BT 163.87 290.10 Td (August 2017 appraised values and the purchase price of Queen) Tj ET Q q 0 0 0 rg BT 418.51 290.10 Td (s Court Student Residences\) with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (weighted average interest rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.99 278.10 Td (2.63%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.82 278.10 Td (. Below is additional information regarding our loan activity for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 266.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.58 266.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.58 266.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.02 266.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.02 266.10 Td (. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.46 266.10 Td (Note 5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.40 266.10 Td ( Debt Financing for additional information regarding our outstanding debt.) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 240.76699218750002 m 70 240.76699218750002 l s q 0 0 0 rg BT 50.00 242.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 242.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 227.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 227.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 227.10 Td (e assumed $96.0 million in mortgage loans related to the acquisition of Rookwood which was recorded as a non-cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 215.10 Td (event on the statement of cash flows.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 200.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 200.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 200.10 Td (e entered into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.56 200.10 Td ($24.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.45 200.10 Td ( of permanent mortgage financing related to the acquisition of the Montrose Student ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 188.10 Td (Residences and paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.14 188.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.03 188.10 Td ( to purchase an interest rate cap to ef) Tj ET Q q 0 0 0 rg BT 347.45 188.10 Td (fectively cap the Euribor interest rate at 1.25% with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 176.10 Td (notional amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.60 176.10 Td (17.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.49 176.10 Td ( \(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.58 176.10 Td ($18.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.47 176.10 Td ( assuming a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.50 176.10 Td ($1.08) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 176.10 Td ( per EUR as of the date of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 164.10 Td (agreement\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 149.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 149.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 149.10 Td (e entered into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.56 149.10 Td ($39.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.45 149.10 Td ( of permanent mortgage financing related to the acquisition of the Queen) Tj ET Q q 0 0 0 rg BT 481.51 149.10 Td (s Court Student ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 137.10 Td (Residences and paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.14 137.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.03 137.10 Td ( to purchase an interest rate cap to ef) Tj ET Q q 0 0 0 rg BT 347.45 137.10 Td (fectively cap the Libor interest rate at 2.00% with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 125.10 Td (notional amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.60 125.10 Td (22.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.49 125.10 Td ( \(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.58 125.10 Td ($29.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.47 125.10 Td ( assuming a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.50 125.10 Td ($1.34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 125.10 Td ( per GBP) Tj ET Q q 0 0 0 rg BT 457.85 125.10 Td ( as of the date of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 113.10 Td (agreement\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 98.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 98.10 Td (e made payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.39 98.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.28 98.10 Td ( in financing costs related to the mortgage loans at Rookwood, the Montrose Student ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 86.10 Td (Residences and the Queen) Tj ET Q q 0 0 0 rg BT 176.02 86.10 Td (s Court Student Residences.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 71.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 71.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 71.10 Td (e borrowed an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.53 71.10 Td ($58.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.42 71.10 Td ( under the Hines Credit Facility and the Restated Hines Credit Facility and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 59.10 Td (made payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.81 59.10 Td ($103.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.70 59.10 Td ( on these facilities. ) Tj ET Q q 0 0 0 rg BT 282.50 59.10 Td (W) Tj ET Q q 0 0 0 rg BT 291.13 59.10 Td (e had an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.95 59.10 Td ($1) Tj ET Q q 0 0 0 rg BT 336.58 59.10 Td (1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.47 59.10 Td ( outstanding balance under the Restated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 47.10 Td (Hines Credit Facility as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.04 47.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.62 47.10 Td (. ) Tj ET Q endstream endobj 133 0 obj <> endobj 134 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (64) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 725.7669921875 m 70 725.7669921875 l s q 0 0 0 rg BT 50.00 727.10 Td (2016) Tj ET Q BT /F3 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 712.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 712.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 712.10 Td (e entered into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.56 712.10 Td ($141.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.45 712.10 Td ( of permanent mortgage financing related to the acquisition of the Domain ) Tj ET Q q 0 0 0 rg BT 491.80 712.10 Td (Apartments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 700.10 Td (Cottonwood Corporate Center and Goodyear Crossing II and made payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.43 700.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.32 700.10 Td ( for financing costs related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 688.10 Td (such loans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 673.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 673.10 Td (e borrowed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.40 673.10 Td ($81.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.29 673.10 Td ( under the Hines Credit Facility and made payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.90 673.10 Td ($25.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.79 673.10 Td ( on this facility) Tj ET Q q 0 0 0 rg BT 513.41 673.10 Td (, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 661.10 Td (resulted in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.37 661.10 Td ($56.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.26 661.10 Td ( outstanding balance under this facility as of December31, 2016.) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 632.7669921875 m 70 632.7669921875 l s q 0 0 0 rg BT 50.00 634.10 Td (2015) Tj ET Q BT /F3 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 619.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 619.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 619.10 Td (e entered into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.56 619.10 Td ($61.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.45 619.10 Td ( of permanent mortgage financing and borrowed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.77 619.10 Td ($50.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.66 619.10 Td ( under our Hines Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 607.10 Td (Facility related to the acquisition of Bishop) Tj ET Q q 0 0 0 rg BT 244.08 607.10 Td (s Square.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 592.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 592.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 592.10 Td (e made payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.39 592.10 Td ($74.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.28 592.10 Td ( on our Hines Credit Facility which reduced our balance on this facility to zero as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 580.10 Td (December 31, 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 565.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 565.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 565.10 Td (e made payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.39 565.10 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.28 565.10 Td ( for financing costs related to our loans.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 541.10 Td (Results of Operations) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 58.50 517.10 Td (Y) Tj ET Q q 0 0 0 rg BT 63.50 517.10 Td (ear ended ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 106.27 517.10 Td (December31, 2017) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 185.41 517.10 Td ( compared to the year ended ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 303.72 517.10 Td (December31, 2016) Tj ET Q BT /F4 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 493.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 493.10 Td (e owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.24 493.10 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.23 493.10 Td ( properties that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.64 493.10 Td (97%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.97 493.10 Td ( leased as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.62 493.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.20 493.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.90 493.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.45 493.10 Td ( properties that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.86 493.10 Td (97%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.19 493.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (leased as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.65 481.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.23 481.10 Td (. ) Tj ET Q q 0 0 0 rg BT 184.18 481.10 Td (As we are currently in the acquisition phase of our life cycle, changes in our results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (operations related to our properties are primarily due to the acquisition of properties. ) Tj ET Q q 0 0 0 rg BT 392.45 469.10 Td (Amounts recorded in our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.10 Td (statements of operations for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.05 457.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.63 457.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.07 457.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.07 457.10 Td ( are due to the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 433.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 433.10 Td (T) Tj ET Q q 0 0 0 rg BT 81.91 433.10 Td (otal revenues, property operating expenses, real property taxes, property management fees, depreciation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 421.10 Td (amortization, and interest expense relate to the operation of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.24 421.10 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.23 421.10 Td ( properties, the first of which was acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 409.10 Td (December 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 385.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 385.10 Td (Acquisition-related expenses represent costs related to the acquisition of our real estate investments, including those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 373.10 Td (properties which we may acquire in future periods. ) Tj ET Q q 0 0 0 rg BT 285.14 373.10 Td (These costs vary significantly from one acquisition to the next and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 361.10 Td (generally tend to be higher for our international acquisitions. During 2017, we incurred $2.6 million in acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 349.10 Td (expenses related to our international acquisitions which included a $0.8 million Stamp Duty tax related to the acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 337.10 Td (of Montrose Student Residences.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 313.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 313.10 Td (During 2017 and 2016, we paid our ) Tj ET Q q 0 0 0 rg BT 220.92 313.10 Td (Advisor acquisition fees equal to 2.25% of the purchase price of our real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 301.10 Td (investments. ) Tj ET Q q 0 0 0 rg BT 131.22 301.10 Td (Acquisition fees for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.86 301.10 Td (year ended December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.53 301.10 Td ( were higher than those for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.21 301.10 Td (year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 289.10 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.08 289.10 Td ( due to an increase in the aggregate net purchase price of our acquisitions during 2017 as compared ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 277.10 Td (to those completed in 2016. ) Tj ET Q q 0 0 0 rg BT 192.13 277.10 Td (W) Tj ET Q q 0 0 0 rg BT 200.77 277.10 Td (e acquired three properties for an aggregate net purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.14 277.10 Td ($299.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.03 277.10 Td ( during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 265.10 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.22 265.10 Td (year ended December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.88 265.10 Td ( as compared to three properties for an aggregate net purchase price of $253.5 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 253.10 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.83 253.10 Td (year ended December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.49 253.10 Td (. ) Tj ET Q q 0 0 0 rg BT 251.44 253.10 Td (As of the ef) Tj ET Q q 0 0 0 rg BT 298.19 253.10 Td (fective date of the Restructuring, we will no longer pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 241.10 Td (acquisition fees to our ) Tj ET Q q 0 0 0 rg BT 167.04 241.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 198.71 241.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 217.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 217.10 Td (During 2017 and 2016, we paid monthly asset management fees to our ) Tj ET Q q 0 0 0 rg BT 361.16 217.10 Td (Advisor based on an annual fee equal to 0.75% of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 205.10 Td (\(i\) the cost of our real estate investments or \(ii\) with respect to our real estate investments included in our board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 193.10 Td (directors) Tj ET Q q 0 0 0 rg BT 114.07 193.10 Td ( most recent determination of an estimated per share NA) Tj ET Q q 0 0 0 rg BT 339.09 193.10 Td (V) Tj ET Q q 0 0 0 rg BT 345.03 193.10 Td (, the most recently determined value of such real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 181.10 Td (estate investments. ) Tj ET Q q 0 0 0 rg BT 156.49 181.10 Td (As described previously) Tj ET Q q 0 0 0 rg BT 252.48 181.10 Td (, our ) Tj ET Q q 0 0 0 rg BT 272.76 181.10 Td (Advisor agreed to waive asset management fees for each quarter in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 169.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.50 169.10 Td ( and the first quarter in 2017, to the extent that our MFFO, for a particular quarter as reduced to reflect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 157.10 Td (distribution and stockholder servicing fees payable for such quarter) Tj ET Q q 0 0 0 rg BT 345.46 157.10 Td (, as disclosed in our ) Tj ET Q q 0 0 0 rg BT 426.56 157.10 Td (Annual Report on Form 10-K or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 145.10 Td (our Quarterly Report on Form 10-Q amounted to less than 100% of the aggregate distributions declared to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 133.10 Td (stockholders for such quarter) Tj ET Q q 0 0 0 rg BT 192.30 133.10 Td (. Our ) Tj ET Q q 0 0 0 rg BT 217.30 133.10 Td (Advisor did ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.30 133.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.30 133.10 Td (t waive any asset management fees payable to it during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.27 133.10 Td (year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 121.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.08 121.10 Td (. Further) Tj ET Q q 0 0 0 rg BT 191.62 121.10 Td (, our ) Tj ET Q q 0 0 0 rg BT 211.90 121.10 Td (Advisor waived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.00 121.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.89 121.10 Td ( of the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.21 121.10 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.10 121.10 Td ( in asset management fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 109.10 Td (payable to it during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.75 109.10 Td (year ended December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.42 109.10 Td (. ) Tj ET Q q 0 0 0 rg BT 303.37 109.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 353.27 109.10 Td (, as of the ef) Tj ET Q q 0 0 0 rg BT 402.24 109.10 Td (fective date of the Restructuring, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 97.10 Td (monthly asset management fee payable to our ) Tj ET Q q 0 0 0 rg BT 261.72 97.10 Td (Advisor is equal to 0.0625% per month of the value of our real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 85.10 Td (investments at the end of each month and in no event will the asset management fee exceed and amount equal to 1/12th ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 73.10 Td (of 1.25% of the Company) Tj ET Q q 0 0 0 rg BT 182.87 73.10 Td (s NA) Tj ET Q q 0 0 0 rg BT 202.42 73.10 Td (V) Tj ET Q q 0 0 0 rg BT 209.46 73.10 Td ( at the end of each applicable month.) Tj ET Q endstream endobj 135 0 obj <> endobj 136 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 742.10 Td (In connection with the Restructuring, we accrued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.88 742.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.77 742.10 Td ( related to the performance participation allocation as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 730.10 Td (result of the total return being greater than the 5% hurdle amount during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.52 730.10 Td (year ended December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.18 730.10 Td (. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.62 730.10 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.56 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 718.10 Td ( Related Party ) Tj ET Q q 0 0 0 rg BT 145.47 718.10 Td (T) Tj ET Q q 0 0 0 rg BT 151.23 718.10 Td (ransactions for a description of how the performance participation allocation is calculated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 694.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 694.10 Td (General and administrative expenses for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.74 694.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.33 694.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.76 694.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.76 694.10 Td ( primarily consist of legal and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 682.10 Td (accounting fees, costs and expenses associated with our board of directors, transfer agent and other stockholder) Tj ET Q q 0 0 0 rg BT 521.43 682.10 Td (-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 670.10 Td (costs and insurance costs. Certain of these costs are variable and will increase in the future as we continue to raise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 658.10 Td (capital and make additional real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 634.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 634.10 Td (Foreign currency gains \(losses\) primarily reflects the ef) Tj ET Q q 0 0 0 rg BT 298.18 634.10 Td (fect of changes in foreign currency exchange rateson ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 622.10 Td (transactions that were denominated in currencies other than our functional currencies. During the years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 610.10 Td (ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.88 610.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.46 610.10 Td (and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.90 610.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.90 610.10 Td (, these gains and losses were primarily related to the ef) Tj ET Q q 0 0 0 rg BT 439.81 610.10 Td (fect of remeasuring cash held ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 598.10 Td (in foreign currencies into U.S. dollars and the changes in exchange rates. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 574.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 574.10 Td (e have entered into interest rate contracts as economic hedges against the fluctuation of future interest rates on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 562.10 Td (variable interest rate borrowings, and we have also entered into foreign currency forward contracts as economic hedges ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 550.10 Td (against the variability of future exchange rates on our international investments. ) Tj ET Q q 0 0 0 rg BT 398.44 550.10 Td (W) Tj ET Q q 0 0 0 rg BT 407.08 550.10 Td (e have not designated any of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 538.10 Td (contracts as cash flow hedges for accounting purposes. ) Tj ET Q q 0 0 0 rg BT 298.19 538.10 Td (These derivatives have been recorded at their estimated fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 526.10 Td (values in the accompanying consolidated balance sheets. Changes in the fair value of these derivatives result in gains or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 514.10 Td (losses recorded in our consolidated statements of operations and comprehensive income \(loss\). See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.28 514.10 Td (Note 6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.22 514.10 Td ( Derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 502.10 Td (Instruments for additional information regarding gains and losses resulting from our derivatives.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 58.50 478.10 Td (Y) Tj ET Q q 0 0 0 rg BT 63.50 478.10 Td (ear ended ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 106.27 478.10 Td (December31, 2016) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 185.41 478.10 Td ( compared to the year ended ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 303.72 478.10 Td (December31, 2015) Tj ET Q BT /F4 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 454.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 454.10 Td (e owned five properties that were 97% leased as of December31, 2016 compared to two properties that were 100% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (leased as of December31, 2015. ) Tj ET Q q 0 0 0 rg BT 184.18 442.10 Td (As we are currently in the acquisition phase of our life cycle, changes in our results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (operations related to our properties are primarily due to the acquisition of properties. ) Tj ET Q q 0 0 0 rg BT 392.45 430.10 Td (Amounts recorded in our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (statements of operations for the years ended December31, 2016 and 2015 are due to the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 394.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 394.10 Td (T) Tj ET Q q 0 0 0 rg BT 81.91 394.10 Td (otal revenues, property operating expenses, real property taxes, property management fees, depreciation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 382.10 Td (amortization, and interest expense relate to the operation of our five properties, the first of which was acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 370.10 Td (December 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 346.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 346.10 Td (Acquisition-related expenses represent costs related to the acquisition of our real estate investments, including those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 334.10 Td (properties which we may acquire in future periods. ) Tj ET Q q 0 0 0 rg BT 285.14 334.10 Td (These costs vary significantly from one acquisition to the next. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 322.10 Td (example, during the year ended December 31, 2015, we incurred a $2.0 million Stamp Duty tax related to the acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 310.10 Td (of Bishop) Tj ET Q q 0 0 0 rg BT 118.45 310.10 Td (s Square. No similar acquisition expenses were incurred in relation to any of our acquisitions during the years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 298.10 Td (ended December 31, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 274.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 274.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 274.10 Td (e paid our ) Tj ET Q q 0 0 0 rg BT 127.07 274.10 Td (Advisor acquisition fees equal to 2.25% of the purchase price of our real estate investments. ) Tj ET Q q 0 0 0 rg BT 499.74 274.10 Td (Acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 262.10 Td (fees for the year ended December 31, 2016 were higher than those for the year ended December 31, 2015 due to an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 250.10 Td (increase in our acquisition activity) Tj ET Q q 0 0 0 rg BT 213.58 250.10 Td (. ) Tj ET Q q 0 0 0 rg BT 220.90 250.10 Td (W) Tj ET Q q 0 0 0 rg BT 229.54 250.10 Td (e acquired three properties for an aggregate purchase price of $253.5 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 238.10 Td (during the year ended December 31, 2016 as compared to one property for $103.2 million during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 226.10 Td (December 31, 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 202.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 202.10 Td (e paid monthly asset management fees to our ) Tj ET Q q 0 0 0 rg BT 267.31 202.10 Td (Advisor based on an annual fee equal to 0.75% of \(i\) the cost of our real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 190.10 Td (estate investments or \(ii\) with respect to our real estate investments included in our board of directors) Tj ET Q q 0 0 0 rg BT 484.52 190.10 Td ( most recent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 178.10 Td (determination of an estimated per share NA) Tj ET Q q 0 0 0 rg BT 250.15 178.10 Td (V) Tj ET Q q 0 0 0 rg BT 256.08 178.10 Td (, the most recently determined value of such real estate investments. ) Tj ET Q q 0 0 0 rg BT 533.21 178.10 Td (As ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 166.10 Td (described previously) Tj ET Q q 0 0 0 rg BT 158.88 166.10 Td (, our ) Tj ET Q q 0 0 0 rg BT 179.16 166.10 Td (Advisor agreed to waive asset management fees for each quarter in 2016 and 2015, to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 154.10 Td (extent that our MFFO, for a particular quarter) Tj ET Q q 0 0 0 rg BT 258.82 154.10 Td (, is less than our distributions declared for such quarter) Tj ET Q q 0 0 0 rg BT 477.66 154.10 Td (. ) Tj ET Q q 0 0 0 rg BT 484.61 154.10 Td (As a result of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 142.10 Td (waivers, our ) Tj ET Q q 0 0 0 rg BT 127.88 142.10 Td (Advisor waived $1.3 million in asset management fees payable to it during the year ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 130.10 Td (2016. Further) Tj ET Q q 0 0 0 rg BT 133.04 130.10 Td (, our ) Tj ET Q q 0 0 0 rg BT 153.32 130.10 Td (Advisor waived $0.6 million of the total $0.9 million in asset management fees payable to it during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 118.10 Td (the year ended December 31, 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 94.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 94.10 Td (General and administrative expenses for the years ended December31, 2016 and 2015 primarily consist of legal and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 82.10 Td (accounting fees, costs and expenses associated with our board of directors, transfer agent costs and insurance costs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 70.10 Td (Certain of these costs are variable and will increase in the future as we continue to raise capital and make additional real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 58.10 Td (estate investments.) Tj ET Q endstream endobj 137 0 obj <> endobj 138 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (66) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 58.50 742.25 Td (Funds from Operations and Modified Funds from Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 713.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 713.25 Td (e believe funds from operations \(FFO\) is a meaningful supplemental non-GAAP) Tj ET Q q 0 0 0 rg BT 406.80 713.25 Td ( operating metric. FFO is a non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 701.25 Td (GAAP) Tj ET Q q 0 0 0 rg BT 76.36 701.25 Td ( financial performance measure defined by the National ) Tj ET Q q 0 0 0 rg BT 301.26 701.25 Td (Association of Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 456.32 701.25 Td (T) Tj ET Q q 0 0 0 rg BT 462.07 701.25 Td (rusts \(NAREIT\) and is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 689.25 Td (widely recognized by investors and analysts as one measure of operating performance of a real estate company) Tj ET Q q 0 0 0 rg BT 492.57 689.25 Td (. FFO excludes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (items such as real estate depreciation and amortization. Depreciation and amortization, as applied in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 548.48 677.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (implicitly assumes that the value of real estate assets diminishes predictably over time and also assumes that such assets are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (adequately maintained and renovated as required in order to maintain their value. Since real estate values have historically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td (risen or fallen with market conditions such as occupancy rates, rental rates, inflation, interest rates, the business cycle, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (unemployment and consumer spending, it is management) Tj ET Q q 0 0 0 rg BT 282.51 629.25 Td (s view) Tj ET Q q 0 0 0 rg BT 307.69 629.25 Td (, and we believe the view of many industry investors and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.25 Td (analysts, that the presentation of operating results for real estate companies using historical cost accounting alone is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (insuf) Tj ET Q q 0 0 0 rg BT 69.32 605.25 Td (ficient. In addition, FFO excludes gains and losses from the sale of real estate and impairment char) Tj ET Q q 0 0 0 rg BT 467.08 605.25 Td (ges related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.25 Td (depreciable real estate assets and in-substance real estate equity investments, which we believe provides management and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.25 Td (investors with a helpful additional measure of the historical performance of our real estate portfolio, as it allows for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.25 Td (comparisons, year to year) Tj ET Q q 0 0 0 rg BT 151.84 569.25 Td (, that reflect the impact on operations from trends in items such as occupancy rates, rental rates, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.25 Td (operating costs, general and administrative expenses and interest costs. ) Tj ET Q q 0 0 0 rg BT 337.75 557.25 Td (A) Tj ET Q q 0 0 0 rg BT 344.42 557.25 Td ( property will be evaluated for impairment if events or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.25 Td (circumstances indicate that the carrying amount may not be recoverable \(i.e. the carrying amount exceeds the total estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.25 Td (undiscounted future cash flows from the property\). Undiscounted future cash flows are based on anticipated operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.25 Td (performance, including estimated future net rental and lease revenues, net proceeds on the sale of the property) Tj ET Q q 0 0 0 rg BT 489.23 521.25 Td (, and certain other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.25 Td (ancillary cash flows. ) Tj ET Q q 0 0 0 rg BT 136.79 509.25 Td (While impairment char) Tj ET Q q 0 0 0 rg BT 229.35 509.25 Td (ges are excluded from the calculation of FFO as described above, stockholders are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.25 Td (cautioned that we may not recover any impairment char) Tj ET Q q 0 0 0 rg BT 272.56 497.25 Td (ges.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 468.25 Td (In addition to FFO, management uses MFFO, as defined by the Investment Program ) Tj ET Q q 0 0 0 rg BT 406.63 468.25 Td (Association, \(the IP) Tj ET Q q 0 0 0 rg BT 489.30 468.25 Td (A\), as a non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 456.25 Td (GAAP) Tj ET Q q 0 0 0 rg BT 76.36 456.25 Td ( supplemental financial performance measure to evaluate our operating performance. ) Tj ET Q q 0 0 0 rg BT 421.02 456.25 Td (The IP) Tj ET Q q 0 0 0 rg BT 447.04 456.25 Td (A) Tj ET Q q 0 0 0 rg BT 453.71 456.25 Td ( has recommended the use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 444.25 Td (of MFFO as a supplemental measure for publicly registered, non-listed REIT) Tj ET Q q 0 0 0 rg BT 357.34 444.25 Td (s to enhance the assessment of the operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 432.25 Td (performance of a non-listed REIT) Tj ET Q q 0 0 0 rg BT 184.26 432.25 Td (. MFFO is not equivalent to our net income or loss as determined under GAAP) Tj ET Q q 0 0 0 rg BT 501.44 432.25 Td (. MFFO may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 420.25 Td (not be useful as a measure of the long-term operating performance of our investments and our calculation of MFFO may not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 408.25 Td (comparable to those of other publicly registered, non-listed REIT) Tj ET Q q 0 0 0 rg BT 310.12 408.25 Td (s that operate with a limited life and tar) Tj ET Q q 0 0 0 rg BT 467.10 408.25 Td (geted exit strategy) Tj ET Q q 0 0 0 rg BT 539.76 408.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.25 Td (MFFO includes funds generated by the operations of our real estate investments and funds used in our corporate-level ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 384.25 Td (operations. MFFO is based on FFO, but includes certain additional adjustments which we believe are appropriate. Such items ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 372.25 Td (include reversing the ef) Tj ET Q q 0 0 0 rg BT 143.45 372.25 Td (fects of straight-line rent revenue recognition, fair value adjustments to derivative instruments that do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 360.25 Td (not qualify for hedge accounting treatment and certain other items as described below) Tj ET Q q 0 0 0 rg BT 392.06 360.25 Td (. Some of these adjustments are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 348.25 Td (necessary to address changes in the accounting and reporting rules under GAAP) Tj ET Q q 0 0 0 rg BT 369.87 348.25 Td ( such as the accounting for acquisition-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 336.25 Td (expenses from a capitalization/depreciation model to an expensed-as-incurred model that were put into ef) Tj ET Q q 0 0 0 rg BT 471.10 336.25 Td (fect in 2009 and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.25 Td (changes to GAAP) Tj ET Q q 0 0 0 rg BT 121.34 324.25 Td ( rules for real estate subsequent to the establishment of NAREIT) Tj ET Q q 0 0 0 rg BT 382.38 324.25 Td (s definition of FFO. ) Tj ET Q q 0 0 0 rg BT 466.65 324.25 Td (These changes in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.25 Td (accounting and reporting rules under GAAP) Tj ET Q q 0 0 0 rg BT 226.03 312.25 Td ( af) Tj ET Q q 0 0 0 rg BT 236.12 312.25 Td (fected all industries, and as a result of these changes, acquisition fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.25 Td (expenses are typically accounted for as operating expenses under GAAP) Tj ET Q q 0 0 0 rg BT 338.57 300.25 Td (. Management believes these fees and expenses do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 288.25 Td (fect our overall long-term operating performance. ) Tj ET Q q 0 0 0 rg BT 260.71 288.25 Td (These changes also have prompted a significant increase in the magnitude ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 276.25 Td (of non-cash and non-operating items included in FFO, as defined. Such items include amortization of out-of-market lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 264.25 Td (intangible assets and liabilities and certain tenant incentives.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 240.25 Td (The purchase of properties, and the corresponding expenses associated with that process, including any acquisition fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.25 Td (and expenses, is a key operational feature of our business plan to generate operational income and cash flows in order to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.25 Td (distributions to our stockholders. MFFO excludes any acquisition fees payable to our ) Tj ET Q q 0 0 0 rg BT 394.45 216.25 Td (Advisor and acquisition expenses. Under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.25 Td (GAAP) Tj ET Q q 0 0 0 rg BT 75.62 204.25 Td (, acquisition fees and expenses are characterized as operating expenses in determining operating net income. ) Tj ET Q q 0 0 0 rg BT 514.15 204.25 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 192.25 Td (expenses are paid in cash by us, and therefore such funds will not be available to distribute to our stockholders. ) Tj ET Q q 0 0 0 rg BT 498.55 192.25 Td (All paid and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.25 Td (accrued acquisition fees and expenses with respect to the acquisition of a property negatively impact our operating performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.25 Td (during the period in which the property is acquired and will have negative ef) Tj ET Q q 0 0 0 rg BT 355.61 168.25 Td (fects on returns to our stockholders, the potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.25 Td (for future distributions, and future cash flows, unless earnings from operations or net sales proceeds from the disposition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.25 Td (other properties are generated to cover the purchase price of the property) Tj ET Q q 0 0 0 rg BT 340.10 144.25 Td (, the related acquisition fees and expenses and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.25 Td (costs related to such property) Tj ET Q q 0 0 0 rg BT 166.04 132.25 Td (. In addition, if we acquire a property after all of) Tj ET Q q 0 0 0 rg BT 361.61 132.25 Td (fering proceeds from our public of) Tj ET Q q 0 0 0 rg BT 499.44 132.25 Td (ferings have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.25 Td (been invested, there will not be any of) Tj ET Q q 0 0 0 rg BT 202.05 120.25 Td (fering proceeds to pay the corresponding acquisition-related costs. ) Tj ET Q q 0 0 0 rg BT 471.97 120.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 521.30 120.25 Td (, unless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.25 Td (our ) Tj ET Q q 0 0 0 rg BT 64.78 108.25 Td (Advisor determines to waive the payment of any then-outstanding acquisition-related costs otherwise payable to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 81.32 96.25 Td (, such costs will be paid from additional debt, operational earnings or cash flow) Tj ET Q q 0 0 0 rg BT 398.65 96.25 Td (, net proceeds from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.25 Td (properties, or ancillary cash flows. ) Tj ET Q q 0 0 0 rg BT 192.61 84.25 Td (Therefore, MFFO may not be an accurate indicator of our operating performance, especially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 72.25 Td (during periods in which properties are being acquired. Since MFFO excludes any acquisition fees and expenses, MFFO would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 60.25 Td (only be comparable to the operations of non-listed REIT) Tj ET Q q 0 0 0 rg BT 274.85 60.25 Td (s that have completed their acquisition activity and have other similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 48.25 Td (operating characteristics.) Tj ET Q endstream endobj 139 0 obj <> endobj 140 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 730.10 Td (Management uses MFFO to evaluate the financial performance of our investment portfolio, including the impact of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (potential future investments. In addition, management uses MFFO to evaluate and establish our distribution policy and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (sustainability thereof. Further) Tj ET Q q 0 0 0 rg BT 170.18 706.10 Td (, we believe MFFO is one of several measures that may be useful to investors in evaluating the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (potential performance of our portfolio following the conclusion of the acquisition phase, as it excludes acquisition fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (expenses, as described herein.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 658.10 Td (MFFO has limitations as a performance measure. MFFO is useful in assisting management and investors in assessing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (sustainability \(that is, the capacity to continue to be maintained\) of operating performance in future operating periods, and in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (particular) Tj ET Q q 0 0 0 rg BT 87.41 634.10 Td (, after the of) Tj ET Q q 0 0 0 rg BT 136.09 634.10 Td (fering and acquisition stages are complete.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 610.10 Td (FFO and MFFO should not be construed to be more relevant or accurate than the current GAAP) Tj ET Q q 0 0 0 rg BT 451.48 610.10 Td ( methodology in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (calculating net income or in its applicability in evaluating our operating performance. In addition, FFO and MFFO should not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (be considered as alternatives to net income \(loss\) or income \(loss\) from continuing operations as an indication of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (performance or as alternatives to cash flows from operating activities as an indication of our liquidity) Tj ET Q q 0 0 0 rg BT 454.00 574.10 Td (, but rather should be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (reviewed in conjunction with these and other GAAP) Tj ET Q q 0 0 0 rg BT 258.80 562.10 Td ( measurements. Further) Tj ET Q q 0 0 0 rg BT 355.04 562.10 Td (, FFO and MFFO are not intended to be used as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (liquidity measures indicative of cash flow available to fund our cash needs, including our ability to make distributions to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (stockholders. Please see the limitations listed below associated with the use of MFFO:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 514.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 514.10 Td (As we are currently in the acquisition phase of our life cycle, acquisition costs and other adjustments that are increases to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 502.10 Td (MFFO are, and may continue to be, a significant use of cash and dilutive to the value of an investment in our shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 478.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 478.10 Td (MFFO excludes any acquisition fees payable to our ) Tj ET Q q 0 0 0 rg BT 284.79 478.10 Td (Advisor and acquisition expenses. ) Tj ET Q q 0 0 0 rg BT 425.88 478.10 Td (Although these amounts reduce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 466.10 Td (net income, we generally fund such costs with proceeds from our public of) Tj ET Q q 0 0 0 rg BT 375.40 466.10 Td (ferings and/or acquisition-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 454.10 Td (indebtedness and do not consider these fees and expenses in the evaluation of our operating performance and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 442.10 Td (determining MFFO.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 418.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 418.10 Td (e use interest rate caps as economic hedges against the variability of interest rates on our variable interest rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 406.10 Td (borrowings. ) Tj ET Q q 0 0 0 rg BT 129.00 406.10 Td (Although we generally expect to hold these instruments to maturity) Tj ET Q q 0 0 0 rg BT 398.01 406.10 Td (, if we were to settle these instruments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 394.10 Td (currently) Tj ET Q q 0 0 0 rg BT 111.94 394.10 Td (, it would have an impact on our operating performance. ) Tj ET Q q 0 0 0 rg BT 341.59 394.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 391.50 394.10 Td (, these derivative instruments are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 382.10 Td (measured at fair value on a quarterly basis in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 352.23 382.10 Td (. MFFO excludes gains \(losses\) related to changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 370.10 Td (in the estimated values of our derivative instruments because such adjustments may not be reflective of ongoing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 358.10 Td (operations and may reflect unrealized impacts on our operating performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 334.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 334.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 334.10 Td (e utilize the definition of FFO as set forth by NAREIT) Tj ET Q q 0 0 0 rg BT 302.70 334.10 Td ( and the definition of MFFO as set forth by the IP) Tj ET Q q 0 0 0 rg BT 500.37 334.10 Td (A. Our FFO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 322.10 Td (and MFFO as presented may not be comparable to amounts calculated by other REIT) Tj ET Q q 0 0 0 rg BT 417.65 322.10 Td (s, if they use dif) Tj ET Q q 0 0 0 rg BT 481.63 322.10 Td (ferent approaches.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 298.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 298.10 Td (Our business is subject to volatility in the real estate markets and general economic conditions, and adverse changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 286.10 Td (those conditions could have a material adverse impact on our business, results of operations and MFFO. ) Tj ET Q q 0 0 0 rg BT 497.25 286.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 546.59 286.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 274.10 Td (the predictive nature of MFFO is uncertain and past performance may not be indicative of future results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 250.10 Td (Neither the SEC, NAREIT) Tj ET Q q 0 0 0 rg BT 174.52 250.10 Td ( nor any regulatory body has passed judgment on the acceptability of the adjustments that we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (use to calculate FFO or MFFO. In the future, the SEC, NAREIT) Tj ET Q q 0 0 0 rg BT 309.01 238.10 Td ( or a regulatory body may decide to standardize the allowable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (adjustments across the non-listed REIT) Tj ET Q q 0 0 0 rg BT 206.51 226.10 Td ( industry and we would have to adjust our calculation and characterization of FFO or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (MFFO.) Tj ET Q endstream endobj 141 0 obj <> endobj 142 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 742.10 Td (The following section presents our calculation of FFO and MFFO attributable to common stockholders and provides ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (additional information related to our operations for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.52 730.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.10 730.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.10 730.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.10 730.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.54 730.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.54 730.10 Td ( and the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (inception through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.82 718.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.40 718.10 Td ( \(in thousands, except per share amounts\). ) Tj ET Q q 0 0 0 rg BT 374.14 718.10 Td (As we are in the capital raising and acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (phase of our operations, FFO and MFFO are not useful in comparing operations for the periods presented below) Tj ET Q q 0 0 0 rg BT 497.64 706.10 Td (. ) Tj ET Q q 0 0 0 rg BT 504.96 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 513.60 706.10 Td (e expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (revenues and expenses to increase in future periods as we raise additional of) Tj ET Q q 0 0 0 rg BT 354.21 694.10 Td (fering proceeds and use them to make additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (real estate investments.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 637.60 218.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 637.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 637.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 637.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 637.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 637.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 637.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 637.60 124.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 607.60 218.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 607.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 607.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 607.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 607.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 607.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 607.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 607.60 124.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 567.60 218.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 567.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 567.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 567.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 567.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 567.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 567.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 567.60 124.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 537.60 218.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 537.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 537.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 537.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 537.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 537.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 537.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 537.60 124.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 507.60 218.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 507.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 507.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 507.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 507.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 507.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 507.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 507.60 124.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 467.60 218.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 467.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 467.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 467.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 467.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 467.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 467.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 467.60 124.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 427.60 218.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 427.60 53.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 427.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 427.60 53.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 427.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 427.60 53.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 427.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 427.60 124.00 -25.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 654.6 m 321 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 654.6 m 325 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 654.6 m 378 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 654.6 m 382 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 654.6 m 435 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 637.6 m 321 637.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 637.6 m 378 637.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 654.6 m 435 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 637.6 m 435 637.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 637.6 m 563 637.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 592.6 m 321 592.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 592.6 m 378 592.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 592.6 m 435 592.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 592.6 m 563 592.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 592.6 m 435 592.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 492.6 m 321 492.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 492.6 m 378 492.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 492.6 m 435 492.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 492.6 m 563 492.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 468.6 m 321 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 466.6 m 321 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 468.6 m 378 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 466.6 m 378 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 492.6 m 435 492.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 468.6 m 435 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 466.6 m 435 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 468.6 m 563 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 466.6 m 563 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 466.6 m 321 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 468.6 m 321 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 466.6 m 378 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 468.6 m 378 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 466.6 m 435 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 468.6 m 435 468.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 659.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.70 659.28 Td (Y) Tj ET Q q 0 0 0 rg BT 301.37 659.28 Td (ears ended December) Tj ET Q q 0 0 0 rg BT 392.36 659.28 Td ( 31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.45 662.28 Td (Period fr) Tj ET Q q 0 0 0 rg BT 483.95 662.28 Td (om July 31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.20 652.28 Td (\(date of inception\) thr) Tj ET Q q 0 0 0 rg BT 536.71 652.28 Td (ough) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.15 642.28 Td (December) Tj ET Q q 0 0 0 rg BT 503.37 642.28 Td ( 31, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.00 642.28 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.00 642.28 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.00 642.28 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 627.27 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 627.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.30 627.32 Td (\(17,186) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 627.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.50 627.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.30 627.32 Td (\(1) Tj ET Q q 0 0 0 rg BT 351.63 627.32 Td (1,341) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 627.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.50 627.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.30 627.32 Td (\(5,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 627.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 627.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 627.32 Td (\(35,493) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 627.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 612.27 Td (Depreciation and amortization ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 197.12 616.80 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 612.27 Td (29,687) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 612.27 Td (15,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 612.27 Td (4,207) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 612.27 Td (49,315) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 597.27 Td () Tj ET Q q 0 0 0 rg BT 72.45 597.27 Td (Adjustments for noncontrolling interests) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 234.37 601.80 Td ( \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.80 597.32 Td (\(30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 597.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.80 597.32 Td (\(23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 597.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 597.27 Td (36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 597.27 Td (168) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 582.27 Td (Funds From Operations attributable to common) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 572.27 Td (stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 572.27 Td (12,471) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 572.27 Td (4,008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.30 572.32 Td (\(1,395) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 572.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 572.27 Td (13,990) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 557.27 Td (Loss \(gain\) on derivative instruments) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 219.91 561.80 Td ( \(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 557.27 Td (372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.15 557.27 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 557.27 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 557.27 Td (419) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 542.27 Td (Loss \(gain\) on foreign currency) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 197.12 546.80 Td (\(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.80 542.32 Td (\(401) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 542.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.80 542.32 Td (\(1) Tj ET Q q 0 0 0 rg BT 369.13 542.32 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 542.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 542.27 Td (1) Tj ET Q q 0 0 0 rg BT 426.15 542.27 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 542.32 Td (\(401) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 542.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 527.27 Td (Other components of revenues and expenses) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 248.50 531.80 Td ( \(5\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.30 527.32 Td (\(2,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 527.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.30 527.32 Td (\(2,030) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 527.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.80 527.32 Td (\(938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 527.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 527.32 Td (\(5,1) Tj ET Q q 0 0 0 rg BT 549.13 527.32 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 527.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 512.27 Td (Acquisition fees and expenses ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 193.80 516.80 Td (\(6\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.65 512.27 Td (9,951) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 512.27 Td (7,452) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 512.27 Td (5,246) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 512.27 Td (23,348) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 497.27 Td (Adjustments for noncontrolling interests ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 234.92 501.80 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.80 497.32 Td (\(5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 497.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.80 497.32 Td (\(6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 497.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.80 497.32 Td (\(40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 497.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 497.32 Td (\(84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 497.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 482.27 Td (Modified Funds From Operations attributable to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 472.27 Td (common stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 472.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 472.27 Td (20,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.50 472.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 472.27 Td (9,419) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.50 472.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 472.27 Td (2,925) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 472.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 472.27 Td (32,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 457.27 Td (Basic and diluted income \(loss\) per common share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 457.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.30 457.32 Td (\(0.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 457.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.50 457.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.30 457.32 Td (\(0.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 457.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.50 457.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.30 457.32 Td (\(1.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 457.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 457.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.30 457.32 Td (\(2.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 457.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 442.27 Td (Funds From Operations attributable to common) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 432.27 Td (stockholders per common share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 432.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 432.27 Td (0.35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.50 432.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 432.27 Td (0.22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.50 432.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.30 432.32 Td (\(0.26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 432.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 432.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 432.27 Td (1.02) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 417.27 Td (Modified Funds From Operations attributable to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 407.27 Td (common stockholders per common share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 407.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 407.27 Td (0.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.50 407.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 407.27 Td (0.52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.50 407.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 407.27 Td (0.55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 407.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 407.27 Td (2.34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 392.27 Td (W) Tj ET Q q 0 0 0 rg BT 61.14 392.27 Td (eighted average shares outstanding) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 392.27 Td (35,808) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 392.27 Td (18,191) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 392.27 Td (5,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 392.27 Td (13,715) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.10 Td (Notes to the table:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 340.10 Td (Represents the depreciation and amortization of real estate assets. Historical cost accounting for real estate assets in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 328.10 Td (accordance with GAAP) Tj ET Q q 0 0 0 rg BT 162.09 328.10 Td ( implicitly assumes that the value of real estate assets diminishes predictably over time. Since real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 316.10 Td (estate values have historically risen or fallen with market conditions, we believe that such depreciation and amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 304.10 Td (may be of limited relevance in evaluating current operating performance and, as such, these items are excluded from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 292.10 Td (determination of FFO.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 268.10 Td (Includes income attributable to noncontrolling interests and all adjustments to eliminate the noncontrolling interests) Tj ET Q q 0 0 0 rg BT 533.04 268.10 Td ( share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 256.10 Td (of the adjustments to convert our net loss to FFO and MFFO.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.10 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 232.10 Td (Represents components of net income \(loss\) related to the estimated changes in the values of our interest rate caps. ) Tj ET Q q 0 0 0 rg BT 531.34 232.10 Td (W) Tj ET Q q 0 0 0 rg BT 539.98 232.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 220.10 Td (have excluded this change in value from our evaluation of our operating performance and MFFO because such adjustments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 208.10 Td (may not be reflective of our ongoing performance and may reflect unrealized impacts on our operating performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.10 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 184.10 Td (Represents components of net income \(loss\) primarily resulting from transactions that are denominated in currencies other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 172.10 Td (than our functional currencies. ) Tj ET Q q 0 0 0 rg BT 194.49 172.10 Td (W) Tj ET Q q 0 0 0 rg BT 203.13 172.10 Td (e have excluded these changes in value from our evaluation of our operating performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 160.10 Td (and MFFO because such adjustments may not be reflective of our ongoing performance and may reflect unrealized impacts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 148.10 Td (on our operating performance.) Tj ET Q endstream endobj 143 0 obj <> endobj 144 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (\(5\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 742.10 Td (Includes the following components of revenues and expenses that we do not consider in evaluating our operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 730.10 Td (performance and determining MFFO for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.87 730.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.45 730.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.45 730.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.45 730.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.89 730.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.89 730.10 Td ( and the period from inception ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 718.10 Td (through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.11 718.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.69 718.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 661.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 661.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 661.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.00 661.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 661.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 661.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 661.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 661.60 127.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 631.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 631.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 631.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.00 631.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 631.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 631.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 631.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 631.60 127.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 601.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 601.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 601.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.00 601.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 601.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 601.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 601.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 601.60 127.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250 678.6 m 308 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308 678.6 m 312 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 678.6 m 370 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 678.6 m 374 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 678.6 m 432 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250 661.6 m 308 661.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 661.6 m 370 661.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 678.6 m 432 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 661.6 m 432 661.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 661.6 m 563 661.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250 601.6 m 308 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250 587.6 m 308 587.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250 585.6 m 308 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 601.6 m 370 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 587.6 m 370 587.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 585.6 m 370 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 601.6 m 432 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 587.6 m 432 587.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 585.6 m 432 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 601.6 m 563 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 587.6 m 563 587.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 585.6 m 563 585.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 683.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.20 683.28 Td (Y) Tj ET Q q 0 0 0 rg BT 290.31 683.28 Td (ears ended December) Tj ET Q q 0 0 0 rg BT 381.77 683.28 Td ( 31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.95 686.28 Td (Period fr) Tj ET Q q 0 0 0 rg BT 482.36 686.28 Td (om July 31, 2013 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 441.70 676.28 Td (\(date of inception\) thr) Tj ET Q q 0 0 0 rg BT 535.12 676.28 Td (ough ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.65 666.28 Td (December) Tj ET Q q 0 0 0 rg BT 501.77 666.28 Td ( 31, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 268.50 666.28 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.50 666.28 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.50 666.28 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 652.17 Td (Straight-line rent adjustment ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 169.42 656.70 Td (\(a\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.50 651.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.30 651.27 Td (\(1,368) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 651.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.50 651.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.30 651.32 Td (\(1,897) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 651.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.50 651.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.80 651.32 Td (\(627) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 651.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.50 651.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 651.32 Td (\(3,897) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 651.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 637.17 Td (Amortization of lease incentives ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 184.68 641.70 Td (\(b\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.15 636.27 Td (96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 636.27 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.15 636.27 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 636.27 Td (102) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 622.17 Td (Amortization of out-of-market leases) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 201.06 626.70 Td ( \(b\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.30 621.27 Td (\(1,078) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 621.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.80 621.32 Td (\(138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 621.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.80 621.32 Td (\(312) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 621.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 621.32 Td (\(1,529) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 621.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 607.17 Td (Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.15 606.27 Td (212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 606.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 606.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 606.27 Td (212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 591.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.50 591.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.30 591.27 Td (\(2,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 591.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.50 591.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.30 591.32 Td (\(2,030) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 591.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.50 591.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.80 591.32 Td (\(938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 591.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.50 591.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 591.32 Td (\(5,1) Tj ET Q q 0 0 0 rg BT 549.13 591.32 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 591.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 567.90 Td (\(a\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 567.90 Td (Represents the adjustments to rental revenue as required by GAAP) Tj ET Q q 0 0 0 rg BT 343.56 567.90 Td ( to recognize minimum lease payments on a straight-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 555.90 Td (line basis over the respective lease terms. ) Tj ET Q q 0 0 0 rg BT 246.53 555.90 Td (W) Tj ET Q q 0 0 0 rg BT 255.17 555.90 Td (e have excluded these adjustments from our evaluation of our operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 543.90 Td (performance and in determining MFFO because we believe that the rent that is billable during the current period is a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 531.90 Td (more relevant measure of our operating performance for such period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 507.90 Td (\(b\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 507.90 Td (Represents the amortization of lease incentives and out-of-market leases.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.90 Td (\(6\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 483.90 Td (Represents acquisition-related expenses and acquisition fees paid to our ) Tj ET Q q 0 0 0 rg BT 356.58 483.90 Td (Advisor which are expensed in our condensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 471.90 Td (consolidated statements of operations. ) Tj ET Q q 0 0 0 rg BT 225.06 471.90 Td (W) Tj ET Q q 0 0 0 rg BT 233.70 471.90 Td (e fund such costs with proceeds from our public of) Tj ET Q q 0 0 0 rg BT 436.52 471.90 Td (ferings and/or acquisition-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 459.90 Td (related indebtedness, and therefore do not consider these expenses in evaluating our operating performance and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 447.90 Td (determining MFFO.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 423.90 Td (Set forth below is additional information relating to certain items excluded from the analysis above which may be helpful ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.90 Td (in assessing our operating results:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 387.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 387.90 Td (For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.58 387.90 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.17 387.90 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.17 387.90 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.17 387.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.61 387.90 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.61 387.90 Td (, we incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.58 387.90 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.47 387.90 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.47 387.90 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.37 387.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.80 387.90 Td ($7,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.30 387.90 Td (, respectively) Tj ET Q q 0 0 0 rg BT 557.96 387.90 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 375.90 Td (in distribution and stockholder servicing fees. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 351.90 Td (As noted previously) Tj ET Q q 0 0 0 rg BT 147.40 351.90 Td (, our cash flows from operations have been and may continue to be insuf) Tj ET Q q 0 0 0 rg BT 437.69 351.90 Td (ficient to fund distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.90 Td (payable to stockholders. ) Tj ET Q q 0 0 0 rg BT 151.24 339.90 Td (W) Tj ET Q q 0 0 0 rg BT 159.88 339.90 Td (e may continue to choose to use proceeds from our debt financings, proceeds from our public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.90 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 327.90 Td (ferings, cash advances from our ) Tj ET Q q 0 0 0 rg BT 187.05 327.90 Td (Advisor) Tj ET Q q 0 0 0 rg BT 218.87 327.90 Td (, cash resulting from a waiver or deferral of fees and/or proceeds from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.90 Td (assets to fund distributions to our stockholders. For example, we funded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.29 315.90 Td (56%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.62 315.90 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.62 315.90 Td (60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.95 315.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.39 315.90 Td (23%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.72 315.90 Td ( of total distributions for the years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.90 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 303.90 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.46 303.90 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.46 303.90 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.46 303.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.90 303.90 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.90 303.90 Td (, respectively) Tj ET Q q 0 0 0 rg BT 271.56 303.90 Td (, with cash flows from financing activities, which includes of) Tj ET Q q 0 0 0 rg BT 516.04 303.90 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 291.90 Td (proceeds. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 267.90 Td (In addition, commencing with the quarter ended December 31, 2014, our ) Tj ET Q q 0 0 0 rg BT 361.30 267.90 Td (Advisor agreed to waive the asset management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.90 Td (fees for each quarter through December31, 2016, to the extent that our MFFO, for a particular quarter) Tj ET Q q 0 0 0 rg BT 458.40 255.90 Td (, as disclosed in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.90 Td (Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as applicable, amounted to less than 100% of the aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 231.90 Td (distributions declared to our stockholders for such quarter) Tj ET Q q 0 0 0 rg BT 280.28 231.90 Td (. Our ) Tj ET Q q 0 0 0 rg BT 305.28 231.90 Td (Advisor also agreed to waive the asset management fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 219.90 Td (otherwise payable to it for the quarter ended March31, 2017 to the extent that our MFFO for such quarter) Tj ET Q q 0 0 0 rg BT 472.87 219.90 Td (, as reduced to reflect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.90 Td (the distribution and stockholder servicing fees payable for such quarter) Tj ET Q q 0 0 0 rg BT 333.18 207.90 Td (, as disclosed in our Quarterly Report on Form 10-Q, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.90 Td (amounted to less than 100% of the aggregate distributions declared to our stockholders for that quarter) Tj ET Q q 0 0 0 rg BT 459.11 195.90 Td (. ) Tj ET Q q 0 0 0 rg BT 466.06 195.90 Td (As a result of these fee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.90 Td (waivers, cash flows from operations that would have been paid to our ) Tj ET Q q 0 0 0 rg BT 329.71 183.90 Td (Advisor for asset management feesmay be available to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.90 Td (pay distributions to stockholders. ) Tj ET Q q 0 0 0 rg BT 187.09 171.90 Td (These fee waivers were not deferrals and accordingly) Tj ET Q q 0 0 0 rg BT 399.94 171.90 Td (, any fees that were waived will not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.90 Td (paid to our ) Tj ET Q q 0 0 0 rg BT 94.77 159.90 Td (Advisor in cash at any time in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 135.90 Td (From inception through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.99 135.90 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.57 135.90 Td (, we declared ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.10 135.90 Td ($32.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.99 135.90 Td ( of cash distributions to our stockholders \(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 123.90 Td (those reinvested in shares pursuant to our distribution reinvestment plan\), compared to our total aggregate FFO of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.17 123.90 Td ($14.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.06 123.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 111.90 Td (and our total aggregate net loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.51 111.90 Td ($35.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.40 111.90 Td ( for that period. During our of) Tj ET Q q 0 0 0 rg BT 363.42 111.90 Td (fering and investment stages, we incur ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.90 Td (acquisition fees and expenses in connection with our real estate investments, which are recorded as reductions to net income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.90 Td (\(loss\) and FFO. From inception through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.50 87.90 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.08 87.90 Td (, we incurred acquisition fees and expenses totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.62 87.90 Td ($23.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.52 87.90 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.90 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.61 75.90 Td (year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.19 75.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.69 75.90 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.28 75.90 Td (, we declared ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.80 75.90 Td ($19.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.69 75.90 Td ( of cash distributions to our stockholders \(including those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 63.90 Td (reinvested in shares pursuant to our distribution reinvestment plan\), compared to our total aggregate FFO of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.56 63.90 Td ($12.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.45 63.90 Td (. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 51.90 Td (the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.19 51.90 Td (December 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.78 51.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.21 51.90 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.21 51.90 Td (, we declared cash distributions to our stockholders \(including those reinvested in ) Tj ET Q endstream endobj 145 0 obj <> endobj 146 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (shares pursuant to our distribution reinvestment plan\) totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.90 742.10 Td ($10.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.79 742.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.23 742.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.12 742.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 473.78 742.10 Td (, compared to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (total aggregate FFO of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.81 730.10 Td ($4.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.70 730.10 Td ( and our total aggregate FFO loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.34 730.10 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.23 730.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 439.90 730.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Related Party ) Tj ET Q q 0 0 0 rg BT 111.46 706.10 Td (T) Tj ET Q q 0 0 0 rg BT 117.39 706.10 Td (ransactions and ) Tj ET Q q 0 0 0 rg BT 186.86 706.10 Td (Agr) Tj ET Q q 0 0 0 rg BT 203.33 706.10 Td (eements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 682.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 682.10 Td (e have entered into agreements with our ) Tj ET Q q 0 0 0 rg BT 238.52 682.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 270.34 682.10 Td (, Dealer Manager and Hines and its af) Tj ET Q q 0 0 0 rg BT 421.77 682.10 Td (filiates, whereby we pay certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (fees and reimbursements to these entities during the various phases of our or) Tj ET Q q 0 0 0 rg BT 355.85 670.10 Td (ganization and operation. During the or) Tj ET Q q 0 0 0 rg BT 515.90 670.10 Td (ganization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (and of) Tj ET Q q 0 0 0 rg BT 75.09 658.10 Td (fering stage, these include payments to our Dealer Manager for selling commissions, the dealer manager fee, distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (and stockholder servicing fees, and payments to our ) Tj ET Q q 0 0 0 rg BT 259.67 646.10 Td (Advisor for reimbursement of or) Tj ET Q q 0 0 0 rg BT 390.01 646.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 459.25 646.10 Td (fering costs. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (acquisition and operational stages, these include payments for certain services related to the management and performance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (our investments and operations provided to us by our ) Tj ET Q q 0 0 0 rg BT 264.69 622.10 Td (Advisor and Hines and its af) Tj ET Q q 0 0 0 rg BT 378.66 622.10 Td (filiates pursuant to various agreements we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (have entered into with these entities. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.00 610.10 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.94 610.10 Td ( Related Party ) Tj ET Q q 0 0 0 rg BT 316.41 610.10 Td (T) Tj ET Q q 0 0 0 rg BT 322.17 610.10 Td (ransactions in the Notes to the consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (statements contained elsewhere in this ) Tj ET Q q 0 0 0 rg BT 205.23 598.10 Td (Annual Report on Form 10-K for additional information concerning our related party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (transactions and agreements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (Off-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 129.43 562.10 Td (Arrangements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 538.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 538.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 538.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.47 538.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.47 538.10 Td (, we had no of) Tj ET Q q 0 0 0 rg BT 267.21 538.10 Td (f-balance sheet arrangements that have or are reasonably likely to have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (current or future ef) Tj ET Q q 0 0 0 rg BT 125.61 526.10 Td (fect on our financial condition, changes in financial condition, revenues or expenses, results of operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (liquidity) Tj ET Q q 0 0 0 rg BT 83.24 514.10 Td (, capital expenditures or capital resources.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (Contractual Obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 466.10 Td (The following table lists our known contractual obligations as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.06 466.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.64 466.10 Td (. ) Tj ET Q q 0 0 0 rg BT 414.96 466.10 Td (The table below excludes $15.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (million in outstanding construction obligations related to our development work at Bishop) Tj ET Q q 0 0 0 rg BT 413.56 454.10 Td (s Square which is currently expected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (to be due within one year) Tj ET Q q 0 0 0 rg BT 150.81 442.10 Td (. ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 380.60 163.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.50 380.60 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 380.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.50 380.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.50 380.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.50 380.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 380.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 380.60 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 380.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 380.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 350.60 163.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.50 350.60 71.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 350.60 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.50 350.60 61.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.50 350.60 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.50 350.60 61.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 350.60 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 350.60 76.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 350.60 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 350.60 64.00 -16.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213.5 404.6 m 284.5 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 404.6 m 288.5 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 404.6 m 349.5 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 404.6 m 353.5 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 404.6 m 414.5 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 404.6 m 418.5 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 404.6 m 494.5 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 404.6 m 498.5 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 404.6 m 562.5 404.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213.5 380.6 m 284.5 380.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 380.6 m 349.5 380.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 380.6 m 414.5 380.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 380.6 m 494.5 380.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 380.6 m 562.5 380.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 334.6 m 562.5 334.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213.5 334.6 m 284.5 334.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213.5 320.6 m 284.5 320.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213.5 318.6 m 284.5 318.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 334.6 m 349.5 334.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 320.6 m 349.5 320.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 318.6 m 349.5 318.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 334.6 m 414.5 334.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 320.6 m 414.5 320.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 318.6 m 414.5 318.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 334.6 m 494.5 334.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 320.6 m 494.5 320.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 318.6 m 494.5 318.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 334.6 m 562.5 334.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 320.6 m 562.5 320.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 318.6 m 562.5 318.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 409.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 335.65 409.28 Td (Payments due by Period) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 385.28 Td (Contractual Obligations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 222.70 395.28 Td (Less ) Tj ET Q q 0 0 0 rg BT 244.00 395.28 Td (Than 1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 238.55 385.28 Td (Y) Tj ET Q q 0 0 0 rg BT 245.22 385.28 Td (ear) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.80 385.28 Td (1-3 ) Tj ET Q q 0 0 0 rg BT 314.44 385.28 Td (Y) Tj ET Q q 0 0 0 rg BT 320.93 385.28 Td (ears) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.80 385.28 Td (3-5 ) Tj ET Q q 0 0 0 rg BT 379.44 385.28 Td (Y) Tj ET Q q 0 0 0 rg BT 385.93 385.28 Td (ears) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.10 395.28 Td (Mor) Tj ET Q q 0 0 0 rg BT 446.80 395.28 Td (e ) Tj ET Q q 0 0 0 rg BT 453.55 395.28 Td (Than 5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.05 385.28 Td (Y) Tj ET Q q 0 0 0 rg BT 450.16 385.28 Td (ears) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 514.00 385.28 Td (T) Tj ET Q q 0 0 0 rg BT 519.75 385.28 Td (otal ) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 538.36 389.81 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 370.27 Td (Notes payable ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 112.42 374.80 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.00 370.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.15 370.27 Td (1) Tj ET Q q 0 0 0 rg BT 258.15 370.27 Td (1,209) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.00 370.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.15 370.27 Td (151,018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 370.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 370.27 Td (174,868) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 370.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 370.27 Td (68,096) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.00 370.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 370.27 Td (405,191) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 355.27 Td (Restated Hines Credit Facility) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 173.81 359.80 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.00 355.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.15 355.27 Td (1) Tj ET Q q 0 0 0 rg BT 258.15 355.27 Td (1,549) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.00 355.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.65 355.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 355.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 355.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 355.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 355.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.00 355.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 355.27 Td (1) Tj ET Q q 0 0 0 rg BT 536.15 355.27 Td (1,549) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 339.27 Td (Or) Tj ET Q q 0 0 0 rg BT 63.37 339.27 Td (ganization and Of) Tj ET Q q 0 0 0 rg BT 134.83 339.27 Td (fering Costs) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 183.44 343.80 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.00 339.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.65 339.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.00 339.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.15 339.27 Td (3,437) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 339.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 339.27 Td (2,291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 339.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 339.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.00 339.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 339.27 Td (5,728) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 324.27 Td (T) Tj ET Q q 0 0 0 rg BT 58.41 324.27 Td (otal contractual obligations) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 167.27 328.80 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.00 324.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.15 324.27 Td (22,758) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.00 324.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.15 324.27 Td (154,455) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 324.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 324.27 Td (177,159) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 324.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 324.27 Td (68,096) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.00 324.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 324.27 Td (422,468) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 300.90 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 300.90 Td (Includes all future principal and interest payments on mortgage loans outstanding as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.19 300.90 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.77 300.90 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 276.90 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 276.90 Td (See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.94 276.90 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.88 276.90 Td ( Related Party ) Tj ET Q q 0 0 0 rg BT 185.85 276.90 Td (T) Tj ET Q q 0 0 0 rg BT 191.60 276.90 Td (ransactions for additional information regarding the reimbursement of or) Tj ET Q q 0 0 0 rg BT 482.44 276.90 Td (ganization and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 264.90 Td (of) Tj ET Q q 0 0 0 rg BT 76.15 264.90 Td (fering costs to our ) Tj ET Q q 0 0 0 rg BT 150.58 264.90 Td (Advisor) Tj ET Q q 0 0 0 rg BT 182.25 264.90 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 240.90 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 240.90 Td (Excluded from the table above is the settlement of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.26 240.90 Td ($8.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.15 240.90 Td ( distribution and stockholder servicing fee liability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 228.90 Td (payable to our Dealer Manager with respect to Class ) Tj ET Q q 0 0 0 rg BT 280.25 228.90 Td (TX shares and Class IX shares as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.88 228.90 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.46 228.90 Td (. ) Tj ET Q q 0 0 0 rg BT 512.78 228.90 Td (W) Tj ET Q q 0 0 0 rg BT 521.42 228.90 Td (e cannot ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 216.90 Td (predict the length of time over which this fee will be paid due to potential changes in the NA) Tj ET Q q 0 0 0 rg BT 437.72 216.90 Td (V) Tj ET Q q 0 0 0 rg BT 444.76 216.90 Td ( per share of the Company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 204.90 Td (Class ) Tj ET Q q 0 0 0 rg BT 91.99 204.90 Td (TX shares and Class IX shares and future redemptions related to Class ) Tj ET Q q 0 0 0 rg BT 376.18 204.90 Td (TX shares and Class IX shares. If we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 192.90 Td (assumed a constant NA) Tj ET Q q 0 0 0 rg BT 160.86 192.90 Td (V) Tj ET Q q 0 0 0 rg BT 167.90 192.90 Td ( per share, the distribution and stockholder servicing fee with respect to Class ) Tj ET Q q 0 0 0 rg BT 480.41 192.90 Td (TX shares and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 180.90 Td (Class IX shares would be paid over 5.25 years and 6 years, respectively) Tj ET Q q 0 0 0 rg BT 353.93 180.90 Td (, from the date of purchase. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.55 180.90 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.49 180.90 Td ( Related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 168.90 Td (Party ) Tj ET Q q 0 0 0 rg BT 91.43 168.90 Td (T) Tj ET Q q 0 0 0 rg BT 97.18 168.90 Td (ransactions for additional information regarding the distribution and stockholder servicing fees.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 144.90 Td (Recent Developments and Subsequent Events) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 120.90 Td (2819 Loker ) Tj ET Q q 0 0 0 rg BT 97.65 120.90 Td (A) Tj ET Q q 0 0 0 rg BT 103.21 120.90 Td (venue East) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.90 Td (In March 2018, we entered into a contract to sell 2819 Loker ) Tj ET Q q 0 0 0 rg BT 294.70 96.90 Td (A) Tj ET Q q 0 0 0 rg BT 301.18 96.90 Td (venue East, a Class ) Tj ET Q q 0 0 0 rg BT 380.33 96.90 Td (A) Tj ET Q q 0 0 0 rg BT 387.00 96.90 Td ( industrial property located in Carlsbad, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.90 Td (California. ) Tj ET Q q 0 0 0 rg BT 94.86 84.90 Td (The contract sales price for 2819 Loker ) Tj ET Q q 0 0 0 rg BT 254.52 84.90 Td (A) Tj ET Q q 0 0 0 rg BT 261.00 84.90 Td (venue East is) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.26 84.90 Td ($38.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.15 84.90 Td (. ) Tj ET Q q 0 0 0 rg BT 374.97 84.90 Td (W) Tj ET Q q 0 0 0 rg BT 383.61 84.90 Td (e acquired 2819 Loker ) Tj ET Q q 0 0 0 rg BT 475.80 84.90 Td (A) Tj ET Q q 0 0 0 rg BT 482.28 84.90 Td (venue East in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 72.90 Td (December 2014 for a purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.04 72.90 Td ($25.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.93 72.90 Td (. ) Tj ET Q q 0 0 0 rg BT 266.38 72.90 Td (Although we expect the closing of this sale to occur no later than ) Tj ET Q q 0 0 0 rg BT 528.25 72.90 Td (April ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 60.90 Td (2018, there can be no assurances as to if or when this sale will be completed.) Tj ET Q endstream endobj 147 0 obj <> endobj 148 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (71) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Item7A.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 87.21 742.25 Td (Quantitative and Qualitative Disclosures ) Tj ET Q q 0 0 0 rg BT 261.85 742.25 Td (About Market Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.25 Td (Market risk includes risks that arise from changes in interest rates, foreign currency exchange rates, commodity prices, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.25 Td (equity prices and other market changes that af) Tj ET Q q 0 0 0 rg BT 233.91 706.25 Td (fect market-sensitive instruments. In pursuing our business plan, we believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (interest rate risk and currency risk are the primary market risks to which we are exposed. ) Tj ET Q q 0 0 0 rg BT 409.87 694.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.31 694.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 694.25 Td (, we were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (exposed to the market risks listed below) Tj ET Q q 0 0 0 rg BT 209.87 682.25 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 658.25 Td (Inter) Tj ET Q q 0 0 0 rg BT 87.07 658.25 Td (est ) Tj ET Q q 0 0 0 rg BT 100.68 658.25 Td (Rate ) Tj ET Q q 0 0 0 rg BT 121.50 658.25 Td (Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 634.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 634.25 Td (e are exposed to the ef) Tj ET Q q 0 0 0 rg BT 166.13 634.25 Td (fects of interest rate changes primarily as a result of debt used to maintain liquidity and fund ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (expansion of our real estate investment portfolio and operations. ) Tj ET Q q 0 0 0 rg BT 311.88 622.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.32 622.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.90 622.25 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 622.25 Td ($207.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.89 622.25 Td ( of variable-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (rate debt outstanding. If interest rates were to increase by 1%, we would incur an additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.26 610.25 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.16 610.25 Td ( in interest expense. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.90 598.25 Td (, we entered into interest rate caps to limit our exposure to rising interest rates related to our mortgage loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (secured by Bishop) Tj ET Q q 0 0 0 rg BT 126.66 586.25 Td (s Square, the Montrose Student Residences and the Queen) Tj ET Q q 0 0 0 rg BT 362.44 586.25 Td (s Court Student Residences. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.59 586.25 Td (Note 5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.53 586.25 Td ( Debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (Financing in the Notes to the consolidated financial statements for more information concerning our outstanding debt.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 550.25 Td (For) Tj ET Q q 0 0 0 rg BT 82.63 550.25 Td (eign ) Tj ET Q q 0 0 0 rg BT 102.35 550.25 Td (Curr) Tj ET Q q 0 0 0 rg BT 121.43 550.25 Td (ency ) Tj ET Q q 0 0 0 rg BT 142.24 550.25 Td (Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 526.25 Td (Our investments in Bishop) Tj ET Q q 0 0 0 rg BT 177.72 526.25 Td (s Square, the Montrose Student Residences and the Queen) Tj ET Q q 0 0 0 rg BT 413.50 526.25 Td (s Court Student Residences are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (subject to the ef) Tj ET Q q 0 0 0 rg BT 113.41 514.25 Td (fects of exchange rate movements among the Euro, the British Pound and the U.S. dollar) Tj ET Q q 0 0 0 rg BT 468.20 514.25 Td (, which may af) Tj ET Q q 0 0 0 rg BT 527.44 514.25 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (future costs and cash flows as well as amounts translated into U.S. dollars for inclusion in our consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (statements. ) Tj ET Q q 0 0 0 rg BT 99.53 490.25 Td (W) Tj ET Q q 0 0 0 rg BT 108.17 490.25 Td (e have entered into mortgage loans denominated in Euros and British Pounds for these investments, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (provide a natural hedge with regard to changes in exchange rates among the Euro, the British Pound and U.S. dollar and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (reduces our exposure to exchange rate dif) Tj ET Q q 0 0 0 rg BT 216.41 466.25 Td (ferences. ) Tj ET Q q 0 0 0 rg BT 256.67 466.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 306.57 466.25 Td (, we are typically a net receiver of Euros and British Pounds, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td (and, as a result, our foreign operations benefit from a weaker U.S. dollar and are adversely af) Tj ET Q q 0 0 0 rg BT 422.45 454.25 Td (fected by a stronger U.S. dollar) Tj ET Q q 0 0 0 rg BT 547.14 454.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (Based upon our analysis, a 10% immediate, unfavorable change in the exchange rate between the Euro and U.S. dollar would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (have decreased the net book value of our investments in Bishop) Tj ET Q q 0 0 0 rg BT 307.71 430.25 Td (s Square and the Montrose Student Residences by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.26 418.25 Td ($4.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.15 418.25 Td ( and would have reduced the year) Tj ET Q q 0 0 0 rg BT 293.33 418.25 Td (-to-date net income \(loss\) of Bishop) Tj ET Q q 0 0 0 rg BT 440.25 418.25 Td (s Square and the Montrose ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (Student Residences by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.04 406.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.93 406.25 Td (. Similarly) Tj ET Q q 0 0 0 rg BT 236.01 406.25 Td (, a 10% immediate, unfavorable change in the exchange rate between the British ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (Pound and U.S. dollar would have decreased the net book value of our investment in the Queen) Tj ET Q q 0 0 0 rg BT 434.90 394.25 Td (s Court Student Residences by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.26 382.25 Td ($2.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.15 382.25 Td ( and would have reduced the year) Tj ET Q q 0 0 0 rg BT 293.33 382.25 Td (-to-date net income \(loss\) of the Queen) Tj ET Q q 0 0 0 rg BT 452.72 382.25 Td (s Court Student ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (Residences by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.99 370.25 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.88 370.25 Td (. ) Tj ET Q endstream endobj 149 0 obj <> endobj 150 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (72) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Item8.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 79.99 742.25 Td (Financial Statements and Supplementary Data) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (REPOR) Tj ET Q q 0 0 0 rg BT 84.65 718.25 Td (T) Tj ET Q q 0 0 0 rg BT 91.14 718.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 107.15 718.25 Td ( INDEPENDENT) Tj ET Q q 0 0 0 rg BT 182.26 718.25 Td ( REGISTERED PUBLIC ) Tj ET Q q 0 0 0 rg BT 292.57 718.25 Td (ACCOUNTING FIRM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 694.25 Td (o the Stockholders and Board of Directors of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 325.44 694.25 Td (T) Tj ET Q q 0 0 0 rg BT 331.20 694.25 Td (rust, Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (Opinion on the Financial Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 646.25 Td (e have audited the accompanying consolidated balance sheets of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 406.11 646.25 Td (T) Tj ET Q q 0 0 0 rg BT 411.87 646.25 Td (rust, Inc. \(formerly Hines Global ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (REIT) Tj ET Q q 0 0 0 rg BT 72.04 634.25 Td ( II, Inc.\) and subsidiaries \(the Company\) as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.25 634.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.83 634.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.27 634.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.27 634.25 Td (, the related consolidated statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (operations and comprehensive income \(loss\), equity \(deficit\), and cash flows, for each of the three years in the period ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 610.25 Td (, and the related notes and the schedules listed in the Index at Item 15 \(collectively referred to as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (financial statements\). In our opinion, the financial statements present fairly) Tj ET Q q 0 0 0 rg BT 358.41 598.25 Td (, in all material respects, the financial position of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (the Company as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.76 586.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.35 586.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.79 586.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.79 586.25 Td (, and the results of its operations and its cash flows for each of the three years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (in the period ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.42 574.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.00 574.25 Td (, in conformity with accounting principles generally accepted in the United States of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (America. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (Basis for) Tj ET Q q 0 0 0 rg BT 87.32 538.25 Td ( Opinion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (These financial statements are the responsibility of the Company) Tj ET Q q 0 0 0 rg BT 312.15 514.25 Td (s management. Our responsibility is to express an opinion on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (the Company) Tj ET Q q 0 0 0 rg BT 106.38 502.25 Td (s financial statements based on our audits. ) Tj ET Q q 0 0 0 rg BT 277.27 502.25 Td (W) Tj ET Q q 0 0 0 rg BT 285.91 502.25 Td (e are a public accounting firm registered with the Public Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (Accounting Oversight Board \(United States\) \(PCAOB\) and are required to be independent with respect to the Company in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (Commission and the PCAOB. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 442.25 Td (e conducted our audits in accordance with the standards of the PCAOB. ) Tj ET Q q 0 0 0 rg BT 348.10 442.25 Td (Those standards require that we plan and perform the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (error or fraud. ) Tj ET Q q 0 0 0 rg BT 108.68 418.25 Td (The Company is not required to have, nor were we engaged to perform, an audit of its internal control over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (financial reporting. ) Tj ET Q q 0 0 0 rg BT 128.58 406.25 Td (As part of our audits, we are required to obtain an understanding of internal control over financial reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (but not for the purpose of expressing an opinion on the ef) Tj ET Q q 0 0 0 rg BT 279.49 394.25 Td (fectiveness of the Company) Tj ET Q q 0 0 0 rg BT 393.63 394.25 Td (s internal control over financial reporting. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 99.34 382.25 Td (, we express no such opinion. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (statements. ) Tj ET Q q 0 0 0 rg BT 97.03 310.25 Td (W) Tj ET Q q 0 0 0 rg BT 105.67 310.25 Td (e believe that our audits provide a reasonable basis for our opinion. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (/s/ Deloitte& ) Tj ET Q q 0 0 0 rg BT 106.76 286.25 Td (T) Tj ET Q q 0 0 0 rg BT 112.17 286.25 Td (ouche LLP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.25 Td (Houston, ) Tj ET Q q 0 0 0 rg BT 88.71 262.25 Td (T) Tj ET Q q 0 0 0 rg BT 94.12 262.25 Td (exas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.25 Td (March29, 2018) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 226.25 Td (e have served as the Company) Tj ET Q q 0 0 0 rg BT 182.76 226.25 Td (s auditor since 2013. ) Tj ET Q endstream endobj 151 0 obj <> endobj 152 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (73) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 215.30 742.25 Td (HINES GLOBAL) Tj ET Q q 0 0 0 rg BT 291.16 742.25 Td ( INCOME ) Tj ET Q q 0 0 0 rg BT 338.20 742.25 Td (TRUST) Tj ET Q q 0 0 0 rg BT 370.80 742.25 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 219.40 730.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 279.22 730.25 Td (TED BALANCE SHEETS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 232.90 718.25 Td (As of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.34 718.25 Td (December) Tj ET Q q 0 0 0 rg BT 300.47 718.25 Td (31, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.97 718.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.09 718.25 Td (2016) Tj ET Q BT /F2 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 654.75 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 654.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 654.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 654.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 624.75 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 624.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 624.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 624.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 594.75 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 594.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 594.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 594.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 564.75 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 564.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 564.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 564.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 534.75 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 534.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 534.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 534.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 505.75 342.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 505.75 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 505.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 505.75 83.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 476.75 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 476.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 476.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 476.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 446.75 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 446.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 446.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 446.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 416.75 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 416.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 416.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 416.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 386.75 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 386.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 386.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 386.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 358.75 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 358.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 358.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 358.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 330.75 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 330.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 330.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 330.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 300.75 342.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 300.75 83.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 300.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 300.75 83.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 260.75 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 260.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 260.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 260.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 230.75 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 230.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 230.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 230.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 200.75 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 200.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 200.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 200.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 170.75 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 170.75 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 170.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 170.75 83.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 692.75 m 474.5 692.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 692.75 m 561.5 692.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 534.75 m 474.5 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 520.75 m 474.5 520.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 518.75 m 474.5 518.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 534.75 m 561.5 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 520.75 m 561.5 520.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 518.75 m 561.5 518.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 386.75 m 474.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 386.75 m 561.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 372.75 m 474.5 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 370.75 m 474.5 370.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 372.75 m 561.5 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 370.75 m 561.5 370.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 215.75 m 474.5 215.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 215.75 m 561.5 215.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 200.75 m 474.5 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 200.75 m 561.5 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 185.75 m 474.5 185.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 185.75 m 561.5 185.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 170.75 m 474.5 170.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 170.75 m 561.5 170.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 156.75 m 474.5 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 154.75 m 474.5 154.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 156.75 m 561.5 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 154.75 m 561.5 154.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 697.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 697.43 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 509.50 697.43 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.90 683.43 Td (\(in thousands, except per) Tj ET Q q 0 0 0 rg BT 516.48 683.43 Td ( shar) Tj ET Q q 0 0 0 rg BT 537.70 683.43 Td (e) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.95 673.43 Td (amounts\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.35 659.43 Td (ASSETS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.50 659.43 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.50 659.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 644.42 Td (Investment property) Tj ET Q q 0 0 0 rg BT 132.49 644.42 Td (, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.00 644.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 644.42 Td (572,833) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 644.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 644.42 Td (283,875) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 629.42 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.15 629.42 Td (18,170) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 629.42 Td (98,137) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 614.42 Td (Restricted cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 614.42 Td (6,383) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 614.42 Td (1,576) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 599.42 Td (Derivative instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.65 599.42 Td (1) Tj ET Q q 0 0 0 rg BT 460.65 599.42 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 599.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 584.42 Td (T) Tj ET Q q 0 0 0 rg BT 57.76 584.42 Td (enant and other receivables, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 584.42 Td (8,402) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 584.42 Td (4,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 569.42 Td (Intangible lease assets, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.15 569.42 Td (95,137) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 569.42 Td (76,070) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 554.42 Td (Deferred leasing costs, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 554.42 Td (4,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 554.42 Td (314) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 539.42 Td (Other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 539.42 Td (3,367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 539.42 Td (5,570) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 524.43 Td (T) Tj ET Q q 0 0 0 rg BT 58.21 524.43 Td (otal assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.00 524.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 524.42 Td (709,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 524.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 524.42 Td (470,345) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 156.55 510.43 Td (LIABILITIES ) Tj ET Q q 0 0 0 rg BT 220.20 510.43 Td (AND EQUITY) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 496.43 Td (Liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 481.42 Td (Accounts payable and accrued expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.00 481.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.15 481.42 Td (15,570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 481.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 481.42 Td (7,549) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 466.42 Td (Due to af) Tj ET Q q 0 0 0 rg BT 89.12 466.42 Td (filiates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.15 466.42 Td (16,642) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 466.42 Td (12,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 451.42 Td (Intangible lease liabilities, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.15 451.42 Td (15,939) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 451.42 Td (2,421) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 436.42 Td (Other liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 436.42 Td (8,601) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 436.42 Td (3,041) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 421.42 Td (Distributions payable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 421.42 Td (1,868) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 421.42 Td (1,195) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 406.42 Td (Note payable to af) Tj ET Q q 0 0 0 rg BT 125.49 406.42 Td (filiate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.15 406.42 Td (1) Tj ET Q q 0 0 0 rg BT 448.15 406.42 Td (1,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 406.42 Td (56,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 391.42 Td (Notes payable, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 391.42 Td (365,652) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 391.42 Td (197,815) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 376.43 Td (T) Tj ET Q q 0 0 0 rg BT 58.21 376.43 Td (otal liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.00 376.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 376.42 Td (435,472) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 376.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 376.42 Td (280,162) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 348.42 Td (Commitments and contingencies \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.92 348.42 Td (Note 12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.86 348.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 348.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 348.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 320.43 Td (Equity:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.00 320.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 320.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 305.42 Td (Stockholders) Tj ET Q q 0 0 0 rg BT 107.18 305.42 Td ( equity:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.00 305.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 305.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 290.42 Td (Preferred shares, $0.001 par value per share; 500,000 preferred shares authorized,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 280.42 Td (none issued or outstanding as of December 31, 2017 and December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 280.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 280.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 265.42 Td (Common shares \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.55 265.42 Td (Note 7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.49 265.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 265.42 Td (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 265.42 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 250.42 Td (Additional paid-in capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 250.42 Td (336,761) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 250.42 Td (224,134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 235.42 Td (Accumulated distributions in excess of earnings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.80 235.47 Td (\(68,193) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.65 235.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 235.47 Td (\(31,222) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 235.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 220.42 Td (Accumulated other comprehensive income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 220.42 Td (4,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 220.47 Td (\(2,755) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 220.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 205.42 Td (T) Tj ET Q q 0 0 0 rg BT 57.76 205.42 Td (otal stockholders) Tj ET Q q 0 0 0 rg BT 128.41 205.42 Td ( equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 205.42 Td (273,545) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 205.42 Td (190,183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 190.42 Td (Noncontrolling interests) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 190.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 190.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 175.42 Td (T) Tj ET Q q 0 0 0 rg BT 57.41 175.42 Td (otal equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 175.42 Td (273,545) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 175.42 Td (190,183) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 160.43 Td (T) Tj ET Q q 0 0 0 rg BT 57.75 160.43 Td (otal liabilities and equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.00 160.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 160.42 Td (709,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 160.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 160.42 Td (470,345) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.60 132.25 Td (See notes to the consolidated financial statements.) Tj ET Q endstream endobj 153 0 obj <> endobj 154 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (74) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 215.30 742.25 Td (HINES GLOBAL) Tj ET Q q 0 0 0 rg BT 291.16 742.25 Td ( INCOME ) Tj ET Q q 0 0 0 rg BT 338.20 742.25 Td (TRUST) Tj ET Q q 0 0 0 rg BT 370.80 742.25 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 91.65 730.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 151.47 730.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 186.03 730.25 Td (A) Tj ET Q q 0 0 0 rg BT 192.50 730.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 257.42 730.25 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 294.18 730.25 Td (TIONS ) Tj ET Q q 0 0 0 rg BT 327.25 730.25 Td (AND COMPREHENSIVE INCOME \(LOSS\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.60 718.25 Td (For) Tj ET Q q 0 0 0 rg BT 202.97 718.25 Td ( the ) Tj ET Q q 0 0 0 rg BT 220.93 718.25 Td (Y) Tj ET Q q 0 0 0 rg BT 227.04 718.25 Td (ears Ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 277.60 718.25 Td (December) Tj ET Q q 0 0 0 rg BT 320.73 718.25 Td (31, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.23 718.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.23 718.25 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 383.23 718.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.35 718.25 Td (2015) Tj ET Q BT /F2 10.00 Tf ET 0.8 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/GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 623.75 m 429.5 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 623.75 m 495.5 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 623.75 m 561.5 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 623.75 m 561.5 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 474.75 m 429.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 459.75 m 429.5 459.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 474.75 m 495.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 459.75 m 495.5 459.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 474.75 m 561.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 459.75 m 561.5 459.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 459.75 m 429.5 459.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 459.75 m 495.5 459.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 459.75 m 561.5 459.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 370.75 m 429.5 370.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 370.75 m 495.5 370.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 370.75 m 561.5 370.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 370.75 m 495.5 370.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 340.75 m 429.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 340.75 m 495.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 340.75 m 561.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 310.75 m 429.5 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 310.75 m 495.5 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 310.75 m 561.5 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 310.75 m 429.5 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 296.75 m 429.5 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 294.75 m 429.5 294.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 310.75 m 495.5 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 296.75 m 495.5 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 294.75 m 495.5 294.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 310.75 m 561.5 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 296.75 m 561.5 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 294.75 m 561.5 294.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 294.75 m 429.5 294.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 296.75 m 429.5 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 294.75 m 495.5 294.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 296.75 m 495.5 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 281.75 m 495.5 281.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 279.75 m 495.5 279.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 294.75 m 561.5 294.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 296.75 m 561.5 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 281.75 m 561.5 281.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 279.75 m 561.5 279.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 279.75 m 429.5 279.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 281.75 m 429.5 281.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 266.75 m 429.5 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 264.75 m 429.5 264.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 279.75 m 495.5 279.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 281.75 m 495.5 281.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 266.75 m 495.5 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 264.75 m 495.5 264.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 279.75 m 561.5 279.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 281.75 m 561.5 281.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 266.75 m 561.5 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 264.75 m 561.5 264.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 264.75 m 429.5 264.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 266.75 m 429.5 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 251.75 m 429.5 251.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 249.75 m 429.5 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 264.75 m 495.5 264.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 266.75 m 495.5 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 251.75 m 495.5 251.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 249.75 m 495.5 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 264.75 m 561.5 264.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 266.75 m 561.5 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 251.75 m 561.5 251.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 249.75 m 561.5 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 249.75 m 429.5 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 251.75 m 429.5 251.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 236.75 m 429.5 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 234.75 m 429.5 234.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 249.75 m 495.5 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 251.75 m 495.5 251.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 236.75 m 495.5 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 234.75 m 495.5 234.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 249.75 m 561.5 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 251.75 m 561.5 251.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 236.75 m 561.5 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 234.75 m 561.5 234.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 234.75 m 429.5 234.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 236.75 m 429.5 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 221.75 m 429.5 221.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 219.75 m 429.5 219.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 234.75 m 495.5 234.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 236.75 m 495.5 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 221.75 m 495.5 221.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 219.75 m 495.5 219.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 234.75 m 561.5 234.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 236.75 m 561.5 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 221.75 m 561.5 221.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 219.75 m 561.5 219.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 147.75 m 429.5 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 147.75 m 495.5 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 147.75 m 561.5 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 147.75 m 561.5 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 117.75 m 429.5 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 117.75 m 495.5 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 117.75 m 561.5 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 117.75 m 429.5 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 103.75 m 429.5 103.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 101.75 m 429.5 101.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 117.75 m 495.5 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 103.75 m 495.5 103.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 101.75 m 495.5 101.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 117.75 m 561.5 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 103.75 m 561.5 103.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 101.75 m 561.5 101.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.00 686.43 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.00 686.43 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.00 686.43 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.65 672.43 Td (\(in thousands, except per) Tj ET Q q 0 0 0 rg BT 483.14 672.43 Td ( shar) Tj ET Q q 0 0 0 rg BT 504.36 672.43 Td (e amounts\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 658.43 Td (Revenues:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 643.42 Td (Rental revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.00 643.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 643.42 Td (58,824) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.00 643.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 643.42 Td (23,667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 643.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 643.42 Td (9,278) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 628.42 Td (Other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 628.42 Td (900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 628.42 Td (682) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 628.42 Td (132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 613.42 Td (T) Tj ET Q q 0 0 0 rg BT 57.76 613.42 Td (otal revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 613.42 Td (59,724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 613.42 Td (24,349) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 613.42 Td (9,410) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 599.43 Td (Expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 584.42 Td (Property operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 584.42 Td (9,663) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 584.42 Td (4,593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 584.42 Td (1,871) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 569.42 Td (Real property taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 569.42 Td (9,387) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 569.42 Td (1,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 569.42 Td (298) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 554.42 Td (Property management fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 554.42 Td (1,061) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 554.42 Td (438) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 554.42 Td (129) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 539.42 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 539.42 Td (29,687) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 539.42 Td (15,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 539.42 Td (4,207) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 524.42 Td (Acquisition related expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 524.42 Td (3,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 524.42 Td (1,855) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 524.42 Td (2,963) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 509.42 Td (Asset management and acquisition fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 509.42 Td (1) Tj ET Q q 0 0 0 rg BT 403.15 509.42 Td (1,681) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 509.42 Td (6,645) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 509.42 Td (2,640) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 494.42 Td (Performance participation allocation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 494.42 Td (251) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 494.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 494.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 479.42 Td (General and administrative expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 479.42 Td (2,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 479.42 Td (2,044) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 479.42 Td (1,546) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 464.42 Td (T) Tj ET Q q 0 0 0 rg BT 57.76 464.42 Td (otal expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 464.42 Td (67,745) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 464.42 Td (32,595) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 464.42 Td (13,654) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 449.43 Td (Income \(loss\) befor) Tj ET Q q 0 0 0 rg BT 133.56 449.43 Td (e other) Tj ET Q q 0 0 0 rg BT 163.09 449.43 Td ( income \(expenses\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.80 449.47 Td (\(8,021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 449.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.80 449.47 Td (\(8,246) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 449.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 449.47 Td (\(4,244) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 449.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 435.43 Td (Other) Tj ET Q q 0 0 0 rg BT 77.46 435.43 Td ( income \(expenses\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 420.42 Td (Gain \(loss\) on derivative instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.30 420.47 Td (\(372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 420.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.30 420.47 Td (\(6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 420.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 420.47 Td (\(41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 420.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 405.42 Td (Foreign currency gains \(losses\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 405.42 Td (494) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.30 405.47 Td (\(4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 405.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 405.47 Td (\(12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 405.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 390.42 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.80 390.47 Td (\(9,453) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 390.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.80 390.47 Td (\(3,154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 390.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 390.47 Td (\(1,345) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 390.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 375.42 Td (Interest income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 375.42 Td (83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 375.42 Td (69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 375.42 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 360.43 Td (Income \(loss\) befor) Tj ET Q q 0 0 0 rg BT 133.56 360.43 Td (e benefit \(pr) Tj ET Q q 0 0 0 rg BT 185.59 360.43 Td (ovision\) for) Tj ET Q q 0 0 0 rg BT 234.01 360.43 Td ( income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.80 360.47 Td (\(17,269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 360.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 360.47 Td (\(1) Tj ET Q q 0 0 0 rg BT 469.13 360.47 Td (1,341) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 360.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 360.47 Td (\(5,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 360.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 345.42 Td (Benefit \(provision\) for income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 345.42 Td (83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 345.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 345.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 330.43 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.80 330.47 Td (\(17,186) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 330.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 330.47 Td (\(1) Tj ET Q q 0 0 0 rg BT 469.13 330.47 Td (1,341) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 330.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 330.47 Td (\(5,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 330.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 315.42 Td (Net \(income\) loss attributable to noncontrolling interests) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.30 315.47 Td (\(12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 315.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.30 315.47 Td (\(12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 315.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 315.47 Td (\(12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 315.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 300.43 Td (Net income \(loss\) attributable to common stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.00 300.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.80 300.47 Td (\(17,198) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 300.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.00 300.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 300.47 Td (\(1) Tj ET Q q 0 0 0 rg BT 469.13 300.47 Td (1,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 300.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 300.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 300.47 Td (\(5,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 300.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 285.43 Td (Basic and diluted income \(loss\) per) Tj ET Q q 0 0 0 rg BT 200.53 285.43 Td ( common shar) Tj ET Q q 0 0 0 rg BT 260.90 285.43 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.00 285.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.80 285.47 Td (\(0.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 285.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.00 285.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.80 285.47 Td (\(0.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 285.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 285.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.80 285.47 Td (\(1.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 285.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 270.42 Td (W) Tj ET Q q 0 0 0 rg BT 61.04 270.42 Td (eighted average number of common shares outstanding) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 270.42 Td (35,808) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 270.42 Td (18,191) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 270.42 Td (5,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 255.42 Td (Cash distributions declared per Class ) Tj ET Q q 0 0 0 rg BT 202.53 255.42 Td (AX share, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.00 255.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 255.42 Td (0.60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.00 255.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 255.42 Td (0.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 255.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 255.42 Td (0.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 240.42 Td (Cash distributions declared per Class ) Tj ET Q q 0 0 0 rg BT 202.72 240.42 Td (TX share, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.00 240.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 240.42 Td (0.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.00 240.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 240.42 Td (0.49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 240.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 240.42 Td (0.17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 225.42 Td (Cash distributions declared per Class IX share, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.00 225.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 225.42 Td (0.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.00 225.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 225.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 225.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 225.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 197.43 Td (Compr) Tj ET Q q 0 0 0 rg BT 82.46 197.43 Td (ehensive income \(loss\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 182.42 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.00 182.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.80 182.47 Td (\(17,186) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 182.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.00 182.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 182.47 Td (\(1) Tj ET Q q 0 0 0 rg BT 469.13 182.47 Td (1,341) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 182.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 182.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 182.47 Td (\(5,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 182.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 167.42 Td (Other comprehensive income \(loss\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 152.42 Td (Foreign currency translation adjustment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 152.42 Td (7,693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.80 152.47 Td (\(1,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 152.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 152.47 Td (\(1,392) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 152.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 137.43 Td (Compr) Tj ET Q q 0 0 0 rg BT 82.46 137.43 Td (ehensive income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.00 137.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.80 137.47 Td (\(9,493) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 137.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.00 137.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 137.47 Td (\(12,704) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 137.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 137.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 137.47 Td (\(7,030) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 137.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 122.42 Td (Comprehensive \(income\) loss attributable to noncontrolling interests) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.30 122.47 Td (\(12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 122.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.30 122.47 Td (\(12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 122.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 122.47 Td (\(12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 122.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 107.43 Td (Compr) Tj ET Q q 0 0 0 rg BT 82.37 107.43 Td (ehensive income \(loss\) attributable to common stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.00 107.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.80 107.47 Td (\(9,505) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 107.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.00 107.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 107.47 Td (\(12,716) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 107.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 107.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 107.47 Td (\(7,042) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 107.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.60 79.25 Td (See notes to the consolidated financial statements.) Tj ET Q endstream endobj 155 0 obj <> endobj 156 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (75) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 215.30 740.25 Td (HINES GLOBAL) Tj ET Q q 0 0 0 rg BT 291.16 740.25 Td ( INCOME ) Tj ET Q q 0 0 0 rg BT 338.20 740.25 Td (TRUST) Tj ET Q q 0 0 0 rg BT 370.80 740.25 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 202.30 728.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 262.12 728.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 296.68 728.25 Td (A) Tj ET Q q 0 0 0 rg BT 303.15 728.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 368.07 728.25 Td ( EQUITY) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.60 716.25 Td (For) Tj ET Q q 0 0 0 rg BT 202.97 716.25 Td ( the ) Tj ET Q q 0 0 0 rg BT 220.93 716.25 Td (Y) Tj ET Q q 0 0 0 rg BT 227.04 716.25 Td (ears Ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 277.60 716.25 Td (December) Tj ET Q q 0 0 0 rg BT 320.73 716.25 Td (31, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.23 716.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.23 716.25 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 383.23 716.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.35 716.25 Td (2015) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.55 704.25 Td (\(in thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 22.00 630.75 143.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 165.00 630.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 630.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 630.75 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 630.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 630.75 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 630.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 630.75 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 630.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 630.75 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.00 630.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 630.75 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.00 630.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 531.00 630.75 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 22.00 604.75 143.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 165.00 604.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 604.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 604.75 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 604.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 604.75 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 604.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 604.75 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 604.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 604.75 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.00 604.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 604.75 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.00 604.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 531.00 604.75 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 22.00 578.75 143.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 165.00 578.75 55.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 578.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 578.75 56.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 578.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 578.75 57.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 578.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 578.75 57.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 578.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 578.75 60.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.00 578.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 578.75 57.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.00 578.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 531.00 578.75 58.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 22.00 536.75 143.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 165.00 536.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 536.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 536.75 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 536.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 536.75 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 536.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 536.75 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 536.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 536.75 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.00 536.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 536.75 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.00 536.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 531.00 536.75 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 22.00 510.75 143.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 165.00 510.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 510.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 510.75 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 510.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 510.75 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 510.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 510.75 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 510.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 510.75 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.00 510.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 510.75 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.00 510.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 531.00 510.75 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 22.00 433.75 143.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 165.00 433.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 433.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 433.75 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 433.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 433.75 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 433.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 433.75 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 433.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 433.75 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301.75 m 280 301.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 299.75 m 280 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284 313.75 m 341 313.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284 301.75 m 341 301.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284 299.75 m 341 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 313.75 m 402 313.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 301.75 m 402 301.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 299.75 m 402 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 313.75 m 466 313.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 301.75 m 466 301.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 299.75 m 466 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 313.75 m 527 313.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 301.75 m 527 301.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 299.75 m 527 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 531 313.75 m 589 313.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 531 301.75 m 589 301.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 531 299.75 m 589 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 165 274.75 m 220 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 165 255.75 m 220 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220 274.75 m 224 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220 255.75 m 224 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 274.75 m 280 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 255.75 m 280 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 274.75 m 284 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284 274.75 m 341 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341 274.75 m 345 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 274.75 m 402 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 274.75 m 406 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 274.75 m 466 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466 274.75 m 470 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 274.75 m 527 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 165 236.75 m 220 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 236.75 m 280 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284 236.75 m 341 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 236.75 m 402 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 236.75 m 466 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 236.75 m 527 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 531 236.75 m 589 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 165 236.75 m 220 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 236.75 m 527 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 165 116.75 m 220 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 165 104.75 m 220 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 165 102.75 m 220 102.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 116.75 m 280 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 104.75 m 280 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 102.75 m 280 102.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284 116.75 m 341 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284 104.75 m 341 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284 102.75 m 341 102.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 116.75 m 402 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 104.75 m 402 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 102.75 m 402 102.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 116.75 m 466 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 104.75 m 466 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 102.75 m 466 102.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 116.75 m 527 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 104.75 m 527 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 102.75 m 527 102.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 531 116.75 m 589 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 531 104.75 m 589 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 531 102.75 m 589 102.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 227.00 672.98 Td (Hines Global Income ) Tj ET Q q 0 0 0 rg BT 300.93 672.98 Td (T) Tj ET Q q 0 0 0 rg BT 305.90 672.98 Td (rust, Inc. Stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 654.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 193.70 653.98 Td (Common Shar) Tj ET Q q 0 0 0 rg BT 243.63 653.98 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.75 650.98 Td (Additional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 299.55 642.98 Td (Paid-in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 299.30 634.98 Td (Capital) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.30 658.98 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.55 650.98 Td (Distributions) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.00 642.98 Td (in Excess of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 357.40 634.98 Td (Earnings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.80 658.98 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.35 650.98 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.90 642.98 Td (Compr) Tj ET Q q 0 0 0 rg BT 433.27 642.98 Td (ehensive) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 411.35 634.98 Td (Income \(Loss\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 489.25 650.98 Td (T) Tj ET Q q 0 0 0 rg BT 494.22 650.98 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.70 642.98 Td (Stockholders) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 486.40 634.98 Td (Equity) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.75 642.98 Td (Noncontr) Tj ET Q q 0 0 0 rg BT 566.12 642.98 Td (olling) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 544.65 634.98 Td (Inter) Tj ET Q q 0 0 0 rg BT 561.91 634.98 Td (ests) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 180.50 634.98 Td (Shar) Tj ET Q q 0 0 0 rg BT 196.88 634.98 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 237.45 634.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 24.50 621.98 Td (Balance as of January 1, 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 204.80 622.00 Td (421) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.50 622.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 622.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 286.50 622.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.80 622.00 Td (42) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 622.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.10 622.00 Td (\(1,183) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.80 622.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.50 622.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 622.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.50 622.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.10 622.00 Td (\(1,141) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 622.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.50 622.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 622.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 609.00 Td (Issuance of common shares) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 194.80 609.00 Td (10,642) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 609.00 Td (1) Tj ET Q q 0 0 0 rg BT 272.80 609.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.75 609.00 Td (105,479) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.80 609.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 609.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.75 609.00 Td (105,490) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 609.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 596.00 Td (Distributions declared) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.80 596.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 596.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.80 596.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.10 596.00 Td (\(2,924) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.80 596.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 596.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.10 596.00 Td (\(2,924) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 596.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 575.10 596.05 Td (\(12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 585.80 596.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 583.00 Td (Redemption of common shares) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 210.10 583.00 Td (\(1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 216.80 583.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 583.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 327.10 583.00 Td (\(12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.80 583.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.80 583.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 583.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 513.10 583.00 Td (\(12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 583.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 583.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 570.00 Td (Selling commissions, dealer manager fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 562.00 Td (and distribution and stockholder servicing) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 554.00 Td (fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.80 554.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 554.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 317.10 554.00 Td (\(9,750) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.80 554.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.80 554.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 554.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.10 554.00 Td (\(9,750) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 554.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 554.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 541.00 Td (Of) Tj ET Q q 0 0 0 rg BT 32.87 541.00 Td (fering costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.80 541.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 541.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 317.10 541.00 Td (\(4,183) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.80 541.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.80 541.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 541.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.10 541.00 Td (\(4,183) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 541.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 541.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 528.00 Td (Net income \(loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.80 528.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 528.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.80 528.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.10 528.00 Td (\(5,650) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.80 528.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 528.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.10 528.00 Td (\(5,650) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 528.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 528.00 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 515.00 Td (Foreign currency translation adjustment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.80 515.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 515.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.80 515.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.80 515.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 442.10 515.00 Td (\(1,392) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.80 515.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.10 515.00 Td (\(1,392) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 515.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 515.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 24.50 501.98 Td (Balance as of December) Tj ET Q q 0 0 0 rg BT 105.89 501.98 Td ( 31, 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 194.80 502.00 Td (1) Tj ET Q q 0 0 0 rg BT 198.80 502.00 Td (1,062) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.50 502.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 502.00 Td (1) Tj ET Q q 0 0 0 rg BT 272.80 502.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 286.50 502.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 315.80 502.00 Td (91,576) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 502.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.10 502.00 Td (\(9,757) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.80 502.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.50 502.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 442.10 502.00 Td (\(1,392) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.80 502.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.50 502.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 501.80 502.00 Td (80,438) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.50 502.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 502.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 227.00 475.98 Td (Hines Global Income ) Tj ET Q q 0 0 0 rg BT 300.93 475.98 Td (T) Tj ET Q q 0 0 0 rg BT 305.90 475.98 Td (rust, Inc. Stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 457.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 193.70 456.98 Td (Common Shar) Tj ET Q q 0 0 0 rg BT 243.63 456.98 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.75 453.98 Td (Additional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 299.55 445.98 Td (Paid-in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 299.30 437.98 Td (Capital) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.30 461.98 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.55 453.98 Td (Distributions) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.00 445.98 Td (in Excess of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 357.40 437.98 Td (Earnings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.80 461.98 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.35 453.98 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.90 445.98 Td (Compr) Tj ET Q q 0 0 0 rg BT 433.27 445.98 Td (ehensive) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 411.35 437.98 Td (Income \(Loss\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 489.25 453.98 Td (T) Tj ET Q q 0 0 0 rg BT 494.22 453.98 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.70 445.98 Td (Stockholders) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 486.40 437.98 Td (Equity) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.75 445.98 Td (Noncontr) Tj ET Q q 0 0 0 rg BT 566.12 445.98 Td (olling) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 544.65 437.98 Td (Inter) Tj ET Q q 0 0 0 rg BT 561.91 437.98 Td (ests) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 180.50 437.98 Td (Shar) Tj ET Q q 0 0 0 rg BT 196.88 437.98 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 237.45 437.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 24.50 430.40 101.34 -7.14 re f /GS0 gs q 0 0 0 rg BT 24.50 424.98 Td (Balance as of January 1, 2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 194.80 425.00 Td (1) Tj ET Q q 0 0 0 rg BT 198.80 425.00 Td (1,062) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.50 425.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 425.00 Td (1) Tj ET Q q 0 0 0 rg BT 272.80 425.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 286.50 425.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 315.80 425.00 Td (91,576) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 425.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.10 425.00 Td (\(9,757) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.80 425.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.50 425.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 442.10 425.00 Td (\(1,392) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.80 425.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.50 425.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 501.80 425.00 Td (80,438) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.50 425.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 425.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 412.00 Td (Issuance of common shares) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 194.80 412.00 Td (15,557) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 412.00 Td (15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.75 412.00 Td (149,738) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.80 412.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 412.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.75 412.00 Td (149,753) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 412.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 399.00 Td (Distributions declared) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.80 399.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 399.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.80 399.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.10 399.00 Td (\(10,1) Tj ET Q q 0 0 0 rg BT 390.76 399.00 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.80 399.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 399.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.10 399.00 Td (\(10,1) Tj ET Q q 0 0 0 rg BT 515.76 399.00 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 399.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 575.10 399.05 Td (\(12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 585.80 399.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 386.00 Td (Redemption of common shares) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 206.10 386.00 Td (\(76) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 216.80 386.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 386.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.10 386.00 Td (\(859) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.80 386.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.80 386.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 386.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 509.10 386.00 Td (\(859) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 386.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 386.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 373.00 Td (Selling commissions, dealer manager fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 365.00 Td (and distribution and stockholder servicing) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 357.00 Td (fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.80 357.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 357.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.10 357.00 Td (\(13,214) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.80 357.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.80 357.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 357.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.10 357.00 Td (\(13,214) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 357.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 357.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 344.00 Td (Of) Tj ET Q q 0 0 0 rg BT 32.87 344.00 Td (fering costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.80 344.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 344.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 317.10 344.00 Td (\(3,107) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.80 344.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.80 344.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 344.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.10 344.00 Td (\(3,107) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 344.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 344.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 331.00 Td (Net income \(loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.80 331.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 331.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.80 331.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.10 331.00 Td (\(1) Tj ET Q q 0 0 0 rg BT 380.76 331.00 Td (1,353) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.80 331.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 331.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.10 331.00 Td (\(1) Tj ET Q q 0 0 0 rg BT 505.76 331.00 Td (1,353) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 331.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 331.00 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 318.00 Td (Foreign currency translation adjustment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.80 318.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 318.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.80 318.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.80 318.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 442.10 318.00 Td (\(1,363) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.80 318.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.10 318.00 Td (\(1,363) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 318.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 318.00 Td () Tj ET Q BT /F2 8.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 24.50 310.40 111.39 -7.14 re f /GS0 gs q 0 0 0 rg BT 24.50 304.98 Td (Balance as of December) Tj ET Q q 0 0 0 rg BT 105.89 304.98 Td ( 31, 2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 194.80 305.00 Td (26,543) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.50 305.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 305.00 Td (26) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 286.50 305.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.75 305.00 Td (224,134) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 305.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.10 305.00 Td (\(31,222) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.80 305.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.50 305.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 442.10 305.00 Td (\(2,755) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.80 305.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.50 305.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.75 305.00 Td (190,183) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.50 305.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 305.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 227.00 278.98 Td (Hines Global Income ) Tj ET Q q 0 0 0 rg BT 300.93 278.98 Td (T) Tj ET Q q 0 0 0 rg BT 305.90 278.98 Td (rust, Inc. Stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 260.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 193.70 259.98 Td (Common Shar) Tj ET Q q 0 0 0 rg BT 243.63 259.98 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.75 256.98 Td (Additional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 299.55 248.98 Td (Paid-in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 299.30 240.98 Td (Capital) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.30 264.98 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.55 256.98 Td (Distributions) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.00 248.98 Td (in Excess of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 357.40 240.98 Td (Earnings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.80 264.98 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.35 256.98 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.90 248.98 Td (Compr) Tj ET Q q 0 0 0 rg BT 433.27 248.98 Td (ehensive) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 411.35 240.98 Td (Income \(Loss\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 489.25 256.98 Td (T) Tj ET Q q 0 0 0 rg BT 494.22 256.98 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.70 248.98 Td (Stockholders) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 486.40 240.98 Td (Equity) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 533.75 248.98 Td (Noncontr) Tj ET Q q 0 0 0 rg BT 566.12 248.98 Td (olling) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 544.65 240.98 Td (Inter) Tj ET Q q 0 0 0 rg BT 561.91 240.98 Td (ests) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 180.50 240.98 Td (Shar) Tj ET Q q 0 0 0 rg BT 196.88 240.98 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 237.45 240.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 24.50 227.98 Td (Balance as of January 1, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 194.80 228.00 Td (26,543) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.50 228.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 228.00 Td (26) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 286.50 228.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.75 228.00 Td (224,134) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 228.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.10 228.00 Td (\(31,222) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.80 228.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.50 228.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 442.10 228.00 Td (\(2,755) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.80 228.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.50 228.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.75 228.00 Td (190,183) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.50 228.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 228.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 215.00 Td (Issuance of common shares) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 194.80 215.00 Td (14,807) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 215.00 Td (15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.75 215.00 Td (146,710) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.80 215.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 215.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.75 215.00 Td (146,725) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 215.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 202.00 Td (Distributions declared) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.80 202.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 202.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.80 202.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.10 202.00 Td (\(19,773) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.80 202.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 202.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.10 202.00 Td (\(19,773) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 202.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 575.10 202.05 Td (\(12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 585.80 202.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 189.00 Td (Redemption of common shares) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 196.10 189.00 Td (\(2,094) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 216.80 189.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.10 189.00 Td (\(2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 276.80 189.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.10 189.00 Td (\(20,143) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.80 189.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.80 189.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 189.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.10 189.00 Td (\(20,145) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 189.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 189.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 176.00 Td (Selling commissions, dealer manager fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 168.00 Td (and distribution and stockholder servicing) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 160.00 Td (fees) Tj ET Q BT /F1 8.00 Tf ET q 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454.80 147.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.10 147.00 Td (\(3,228) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 147.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 147.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 134.00 Td (Net income \(loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.80 134.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 134.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.80 134.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.10 134.00 Td (\(17,198) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.80 134.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 134.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.10 134.00 Td (\(17,198) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.80 134.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 134.00 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 24.50 121.00 Td (Foreign currency translation adjustment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.80 121.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 121.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.80 121.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.80 121.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 444.80 121.00 Td (7,693) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.80 121.00 Td (7,693) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 121.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 24.50 107.98 Td (Balance as of December) Tj ET Q q 0 0 0 rg BT 105.89 107.98 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 194.80 108.00 Td (39,256) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.50 108.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 108.00 Td (39) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 286.50 108.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.75 108.00 Td (336,761) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 108.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.10 108.00 Td (\(68,193) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.80 108.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.50 108.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 444.80 108.00 Td (4,938) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.50 108.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.75 108.00 Td (273,545) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.50 108.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 577.80 108.00 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.60 81.45 Td (See notes to the consolidated financial statements.) 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Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.65 730.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 248.47 730.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 283.02 730.25 Td (A) Tj ET Q q 0 0 0 rg BT 289.50 730.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 354.42 730.25 Td ( CASH FLOWS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.60 718.25 Td (For) Tj ET Q q 0 0 0 rg BT 202.97 718.25 Td ( the ) Tj ET Q q 0 0 0 rg BT 220.93 718.25 Td (Y) Tj ET Q q 0 0 0 rg BT 227.04 718.25 Td (ears Ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 277.60 718.25 Td (December) Tj ET Q q 0 0 0 rg BT 320.73 718.25 Td (31, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.23 718.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.23 718.25 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 383.23 718.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.35 718.25 Td (2015) Tj ET Q BT /F2 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 51.50 664.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 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/GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 474.75 m 493.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 459.75 m 493.5 459.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 474.75 m 559.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 459.75 m 559.5 459.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 399.75 m 426.5 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 384.75 m 426.5 384.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 399.75 m 493.5 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 384.75 m 493.5 384.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 399.75 m 559.5 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 384.75 m 559.5 384.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 164.75 m 426.5 164.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 164.75 m 426.5 164.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 149.75 m 426.5 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 164.75 m 493.5 164.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 149.75 m 493.5 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 164.75 m 559.5 164.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 149.75 m 559.5 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 125.75 m 426.5 125.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 125.75 m 493.5 125.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 125.75 m 559.5 125.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 95.75 m 426.5 95.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 81.75 m 426.5 81.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 79.75 m 426.5 79.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 95.75 m 493.5 95.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 81.75 m 493.5 81.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 79.75 m 493.5 79.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 95.75 m 559.5 95.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 81.75 m 559.5 81.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 79.75 m 559.5 79.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 697.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.50 697.43 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.50 697.43 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 518.00 697.43 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.55 683.43 Td (\(in thousands\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.00 669.43 Td (CASH FLOWS FROM OPERA) Tj ET Q q 0 0 0 rg BT 190.58 669.43 Td (TING ) Tj ET Q q 0 0 0 rg BT 217.99 669.43 Td (ACTIVITIES:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 654.42 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.00 654.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.80 654.47 Td (\(17,186) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 654.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.00 654.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 654.47 Td (\(1) Tj ET Q q 0 0 0 rg BT 467.13 654.47 Td (1,341) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 654.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 654.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.80 654.47 Td (\(5,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 654.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 639.42 Td (Adjustments to reconcile net income \(loss\) to net cash from \(used in\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 629.42 Td (operating activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 614.42 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.15 614.42 Td (29,220) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 614.42 Td (15,422) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.15 614.42 Td (3,982) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 599.42 Td (Foreign currency \(gains\) losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.30 599.47 Td (\(494) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 599.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 599.42 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.65 599.42 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 584.42 Td (\(Gain\) loss on derivative instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 584.42 Td (372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 584.42 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.65 584.42 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 569.42 Td (Changes in assets and liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 554.42 Td (Change in other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.80 554.47 Td (\(1,190) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 554.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 554.47 Td (\(275) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 554.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.30 554.47 Td (\(131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 554.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 539.42 Td (Change in tenant and other receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.80 539.47 Td (\(4,479) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 539.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 539.47 Td (\(2,288) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 539.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.30 539.47 Td (\(928) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 539.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 524.42 Td (Change in deferred leasing costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.80 524.47 Td (\(4,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 524.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 524.47 Td (\(261) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 524.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.30 524.47 Td (\(62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 524.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 509.42 Td (Change in accounts payable and accrued expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.15 509.42 Td (4,964) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 509.42 Td (270) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 509.42 Td (640) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 494.42 Td (Change in other liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.30 494.47 Td (\(9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 494.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 494.42 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.15 494.42 Td (1,401) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 479.42 Td (Change in due to af) Tj ET Q q 0 0 0 rg BT 138.13 479.42 Td (filiates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.30 479.47 Td (\(92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 479.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 479.42 Td (2,565) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.30 479.47 Td (\(942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 479.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 464.42 Td (Net cash from \(used in\) operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.15 464.42 Td (6,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 464.42 Td (4,125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.80 464.47 Td (\(1,625) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 464.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.00 449.43 Td (CASH FLOWS FROM INVESTING ) Tj ET Q q 0 0 0 rg BT 214.30 449.43 Td (ACTIVITIES:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.00 449.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.00 449.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 434.42 Td (Investments in acquired properties and lease intangibles) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.80 434.47 Td (\(192,867) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 434.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.80 434.47 Td (\(244,817) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 434.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.80 434.47 Td (\(102,689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 434.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 419.42 Td (Capital expenditures at operating properties) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.80 419.47 Td (\(4,204) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 419.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 419.47 Td (\(350) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 419.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.30 419.47 Td (\(333) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 419.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 404.42 Td (Deposits on investment property) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.65 404.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 404.47 Td (\(5,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 404.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.80 404.47 Td (\(1,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 404.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 389.42 Td (Net cash used in investing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.80 389.47 Td (\(197,071) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 389.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.80 389.47 Td (\(250,167) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 389.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.80 389.47 Td (\(104,522) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 389.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.00 374.43 Td (CASH FLOWS FROM FINANCING ) Tj ET Q q 0 0 0 rg BT 215.95 374.43 Td (ACTIVITIES:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.00 374.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.00 374.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 359.42 Td (Proceeds from issuance of common stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 359.42 Td (138,192) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 359.42 Td (146,265) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.15 359.42 Td (101,354) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 344.42 Td (Redemption of common shares) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.80 344.47 Td (\(20,270) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 344.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 344.47 Td (\(714) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 344.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.30 344.47 Td (\(12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 344.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 329.42 Td (Payment of of) Tj ET Q q 0 0 0 rg BT 110.56 329.42 Td (fering costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.80 329.47 Td (\(3,810) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 329.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 329.47 Td (\(5,073) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 329.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.80 329.47 Td (\(5,270) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 329.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 314.42 Td (Reimbursement of of) Tj ET Q q 0 0 0 rg BT 138.89 314.42 Td (fering costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.65 314.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 314.42 Td (4,049) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.65 314.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 299.42 Td (Payment of selling commissions, dealer manager fees and distribution and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 289.42 Td (stockholder servicing fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.80 289.47 Td (\(7,154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 289.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 289.47 Td (\(8,897) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 289.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.80 289.47 Td (\(9,385) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 289.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 274.42 Td (Distributions paid to stockholders and noncontrolling interests) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.80 274.47 Td (\(8,951) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 274.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 274.47 Td (\(4,601) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 274.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.80 274.47 Td (\(1,227) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 274.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 259.42 Td (Proceeds from notes payable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.15 259.42 Td (63,572) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 259.42 Td (141,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.15 259.42 Td (61,769) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 244.42 Td (Payments on notes payable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.80 244.47 Td (\(1,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 244.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 244.47 Td (\(539) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 244.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.65 244.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 229.42 Td (Proceeds from related party note payable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.15 229.42 Td (58,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 229.42 Td (81,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.15 229.42 Td (50,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 214.42 Td (Payments on related party note payable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.80 214.47 Td (\(103,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 214.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 214.47 Td (\(25,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 214.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.80 214.47 Td (\(74,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 214.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 199.42 Td (Change in security deposit liability) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.30 199.47 Td (\(63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 199.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 199.42 Td (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.65 199.42 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 184.42 Td (Deferred financing costs paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.80 184.47 Td (\(1,028) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 184.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 184.47 Td (\(666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 184.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.30 184.47 Td (\(626) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 184.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 169.42 Td (Payments related to interest rate contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.30 169.47 Td (\(233) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 169.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 169.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.30 169.47 Td (\(48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 169.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 154.42 Td (Net cash from financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 154.42 Td (1) Tj ET Q q 0 0 0 rg BT 395.15 154.42 Td (13,805) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 154.42 Td (327,164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.15 154.42 Td (122,377) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.00 140.43 Td (Effect of exchange rate changes on cash, r) Tj ET Q q 0 0 0 rg BT 232.21 140.43 Td (estricted cash and cash) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.00 130.43 Td (equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.15 130.42 Td (1,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 130.47 Td (\(198) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.65 130.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.30 130.47 Td (\(168) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 130.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.00 115.43 Td (Net change in cash, r) Tj ET Q q 0 0 0 rg BT 143.07 115.43 Td (estricted cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.80 115.47 Td (\(75,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 115.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 115.42 Td (80,924) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.15 115.42 Td (16,062) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.00 100.43 Td (Cash, r) Tj ET Q q 0 0 0 rg BT 85.02 100.43 Td (estricted cash and cash equivalents, beginning of year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.15 100.42 Td (99,713) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 100.42 Td (18,789) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.15 100.42 Td (2,727) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.00 85.43 Td (Cash, r) Tj ET Q q 0 0 0 rg BT 84.93 85.43 Td (estricted cash and cash equivalents, end of year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.00 85.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.15 85.42 Td (24,553) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.00 85.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 85.42 Td (99,713) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 85.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.15 85.42 Td (18,789) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.60 57.25 Td (See notes to the consolidated financial statements.) Tj ET Q endstream endobj 159 0 obj <> endobj 160 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (77) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 215.30 742.25 Td (HINES GLOBAL) Tj ET Q q 0 0 0 rg BT 291.16 742.25 Td ( INCOME ) Tj ET Q q 0 0 0 rg BT 338.20 742.25 Td (TRUST) Tj ET Q q 0 0 0 rg BT 370.80 742.25 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 163.60 718.25 Td (NOTES) Tj ET Q q 0 0 0 rg BT 199.82 718.25 Td (T) Tj ET Q q 0 0 0 rg BT 206.31 718.25 Td (O ) Tj ET Q q 0 0 0 rg BT 216.41 718.25 Td (THE CONSOLIDA) Tj ET Q q 0 0 0 rg BT 299.85 718.25 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 379.03 718.25 Td ( ST) Tj ET Q q 0 0 0 rg BT 393.02 718.25 Td (A) Tj ET Q q 0 0 0 rg BT 399.50 718.25 Td (TEMENTS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (1.ORGANIZA) Tj ET Q q 0 0 0 rg BT 116.26 694.25 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 670.25 Td (Hines Global Income ) Tj ET Q q 0 0 0 rg BT 155.35 670.25 Td (T) Tj ET Q q 0 0 0 rg BT 161.11 670.25 Td (rust, Inc. \(the Company or Hines Global\), formerly known as Hines Global REIT) Tj ET Q q 0 0 0 rg BT 503.89 670.25 Td ( II, Inc., was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (incorporated in Maryland on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.69 658.25 Td (July31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.86 658.25 Td (, to invest in a diversified portfolio of quality commercial real estate properties and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (other real estate investments throughout the United States and internationally) Tj ET Q q 0 0 0 rg BT 357.38 646.25 Td (, and to a lesser extent, invest in real-estate related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (securities. ) Tj ET Q q 0 0 0 rg BT 92.08 634.25 Td (The Company is sponsored by Hines Interests Limited Partnership \(Hines\), a fully integrated global real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (investment and management firm that has acquired, developed, owned, operated and sold real estate for 60 years. ) Tj ET Q q 0 0 0 rg BT 504.99 622.25 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (is managed by Hines Global REIT) Tj ET Q q 0 0 0 rg BT 187.35 610.25 Td ( II ) Tj ET Q q 0 0 0 rg BT 198.46 610.25 Td (Advisors LP) Tj ET Q q 0 0 0 rg BT 248.37 610.25 Td ( \(the Advisor\), an af) Tj ET Q q 0 0 0 rg BT 337.87 610.25 Td (filiate of Hines. ) Tj ET Q q 0 0 0 rg BT 402.67 610.25 Td (The Company intends to conduct ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (substantially all of its operations through Hines Global REIT) Tj ET Q q 0 0 0 rg BT 293.17 598.25 Td ( II Properties, LP) Tj ET Q q 0 0 0 rg BT 361.68 598.25 Td ( \(the Operating Partnership\). ) Tj ET Q q 0 0 0 rg BT 489.41 598.25 Td (An af) Tj ET Q q 0 0 0 rg BT 511.72 598.25 Td (filiate of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 81.32 586.25 Td (, Hines Global REIT) Tj ET Q q 0 0 0 rg BT 163.90 586.25 Td ( II ) Tj ET Q q 0 0 0 rg BT 175.01 586.25 Td (Associates LP) Tj ET Q q 0 0 0 rg BT 230.84 586.25 Td (, owns less than a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.61 586.25 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.94 586.25 Td ( limited partner interest in the Operating Partnership as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 574.25 Td ( and the ) Tj ET Q q 0 0 0 rg BT 161.69 574.25 Td (Advisor also owns the special limited partnership interest in the Operating Partnership. ) Tj ET Q q 0 0 0 rg BT 514.21 574.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (Company has elected to be taxed as a real estate investment trust, or REIT) Tj ET Q q 0 0 0 rg BT 345.88 562.25 Td (, for U.S. federal income tax purposes beginning with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (its taxable year ended December 31, 2015. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 526.25 Td ( ) Tj ET Q q 0 0 0 rg BT 69.82 526.25 Td (The Company raises capital for its investments through public of) Tj ET Q q 0 0 0 rg BT 329.31 526.25 Td (ferings of its common stock. On ) Tj ET Q q 0 0 0 rg BT 462.63 526.25 Td (August20, 2014, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (Company commenced its initial public of) Tj ET Q q 0 0 0 rg BT 215.12 514.25 Td (fering of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.11 514.25 Td ($2.5 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.22 514.25 Td ( of its common stock \(the Initial Of) Tj ET Q q 0 0 0 rg BT 466.84 514.25 Td (fering\). On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (September 30, 2017, the Company suspended the sale of shares in the primary portion of the Initial Of) Tj ET Q q 0 0 0 rg BT 458.95 502.25 Td (fering, while continuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (to of) Tj ET Q q 0 0 0 rg BT 67.93 490.25 Td (fer up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.30 490.25 Td ($150.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.20 490.25 Td ( of its common stock pursuant to its distribution reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 436.04 490.25 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.98 490.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.57 490.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (the Company received gross of) Tj ET Q q 0 0 0 rg BT 173.73 478.25 Td (fering proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.23 478.25 Td ($405.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.12 478.25 Td ( including shares issued under its distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (reinvestment plans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 442.25 Td (On December 6, 2017 the Company commenced a second public of) Tj ET Q q 0 0 0 rg BT 338.07 442.25 Td (fering of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.06 442.25 Td ($2.5 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.17 442.25 Td ( in shares of common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.77 430.25 Td ($500.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.67 430.25 Td ( of shares of) Tj ET Q q 0 0 0 rg BT 197.63 430.25 Td (fered under ourdistribution reinvestment plan \(the Follow-on Of) Tj ET Q q 0 0 0 rg BT 461.28 430.25 Td (fering\). ) Tj ET Q q 0 0 0 rg BT 499.87 430.25 Td (As a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (the changing landscape in the non-traded REIT) Tj ET Q q 0 0 0 rg BT 238.14 418.25 Td ( industry) Tj ET Q q 0 0 0 rg BT 272.77 418.25 Td (, the Follow-on Of) Tj ET Q q 0 0 0 rg BT 347.03 418.25 Td (fering reflects a restructuring \(the Restructuring\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (For additional information regarding the Restructuring, please see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.81 406.25 Td (Item 7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.64 406.25 Td ( Management) Tj ET Q q 0 0 0 rg BT 414.12 406.25 Td (s Discussion & ) Tj ET Q q 0 0 0 rg BT 476.63 406.25 Td (Analysis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (Executive Summary) Tj ET Q q 0 0 0 rg BT 130.22 394.25 Td (, and for additional information regarding changes to the fees payable to the Dealer Manager) Tj ET Q q 0 0 0 rg BT 500.51 394.25 Td (, the ) Tj ET Q q 0 0 0 rg BT 519.67 394.25 Td (Advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (and other af) Tj ET Q q 0 0 0 rg BT 97.07 382.25 Td (filiates of Hines, please see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.70 382.25 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.64 382.25 Td ( Related Party ) Tj ET Q q 0 0 0 rg BT 307.11 382.25 Td (T) Tj ET Q q 0 0 0 rg BT 312.86 382.25 Td (ransactions. ) Tj ET Q q 0 0 0 rg BT 364.80 382.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.24 382.25 Td (March16, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.84 382.25 Td (, the Company received ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (gross of) Tj ET Q q 0 0 0 rg BT 81.26 370.25 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.51 370.25 Td ($408.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.40 370.25 Td ( from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.43 370.25 Td (41.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.32 370.25 Td ( shares. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 346.25 Td ( ) Tj ET Q q 0 0 0 rg BT 69.45 346.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.89 346.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.48 346.25 Td (, the Company owned direct investments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.55 346.25 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.55 346.25 Td ( real estate properties totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.34 346.25 Td (2.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.23 346.25 Td ( square ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (feet that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.41 334.25 Td (97%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.74 334.25 Td ( leased. See the table in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.53 334.25 Td (Item 2.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.86 334.25 Td ( Properties for additional information regarding each of the properties in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (which the Company owned an interest as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.23 322.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.82 322.25 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (2.SUMMAR) Tj ET Q q 0 0 0 rg BT 108.25 298.25 Td (Y) Tj ET Q q 0 0 0 rg BT 115.10 298.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 131.12 298.25 Td ( SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 200.12 298.25 Td ( ) Tj ET Q q 0 0 0 rg BT 202.07 298.25 Td (ACCOUNTING POLICIES) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 274.25 Td (Use of Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 250.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 127.71 250.25 Td (s consolidated financial statements have been prepared in accordance with accounting principles generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 Td (accepted in the United States of ) Tj ET Q q 0 0 0 rg BT 178.85 238.25 Td (America \(GAAP\). ) Tj ET Q q 0 0 0 rg BT 265.85 238.25 Td (The preparation of the consolidated financial statements requires the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.25 Td (Company to make estimates and judgments that af) Tj ET Q q 0 0 0 rg BT 251.72 226.25 Td (fect the reported amounts of assets, liabilities and contingencies as of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. ) Tj ET Q q 0 0 0 rg BT 504.39 214.25 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 Td (evaluates its assumptions and estimates on an ongoing basis. ) Tj ET Q q 0 0 0 rg BT 297.29 202.25 Td (The Company bases its estimates on historical experience and on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 Td (various other assumptions that the Company believes to be reasonable under the circumstances. ) Tj ET Q q 0 0 0 rg BT 436.84 190.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 486.74 190.25 Td (, application of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 178.25 Td (s accounting policies involves exercising judgments regarding assumptions as to future uncertainties. ) Tj ET Q q 0 0 0 rg BT 500.46 178.25 Td (Actual results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.25 Td (may dif) Tj ET Q q 0 0 0 rg BT 80.64 166.25 Td (fer from these estimates under dif) Tj ET Q q 0 0 0 rg BT 215.14 166.25 Td (ferent assumptions or conditions.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 142.25 Td (Basis ) Tj ET Q q 0 0 0 rg BT 92.17 142.25 Td (of ) Tj ET Q q 0 0 0 rg BT 102.45 142.25 Td (Pr) Tj ET Q q 0 0 0 rg BT 112.08 142.25 Td (esentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 118.25 Td (The consolidated financial statements of the Company include the accounts of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 471.03 118.25 Td (T) Tj ET Q q 0 0 0 rg BT 476.79 118.25 Td (rust, Inc. and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (Operating Partnership \(over which the Company exercises financial and operating control\). ) Tj ET Q q 0 0 0 rg BT 419.60 106.25 Td (All intercompany balances and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (transactions have been eliminated in consolidation. ) Tj ET Q q 0 0 0 rg BT 259.20 94.25 Td (The Company has determined that the Operating Partnership is considered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (a variable interest entity \(VIE\). However) Tj ET Q q 0 0 0 rg BT 224.79 82.25 Td (, the Company meets the disclosure exemption criteria, as the Company is the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.25 Td (primary beneficiary of the ) Tj ET Q q 0 0 0 rg BT 156.99 70.25 Td (VIE and the Company) Tj ET Q q 0 0 0 rg BT 249.47 70.25 Td (s partnership interest is considered a majority voting interest.) Tj ET Q endstream endobj 161 0 obj <> endobj 162 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (78) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (Investment Pr) Tj ET Q q 0 0 0 rg BT 123.44 742.10 Td (operty and Lease Intangibles) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (Real estate assets acquired by the Company are stated at fair value at the date of acquisition less accumulated depreciation. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Depreciation is computed using the straight-line method. ) Tj ET Q q 0 0 0 rg BT 282.27 706.10 Td (The estimated useful lives for computing depreciation are generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 694.10 Td ( years for furniture and fixtures, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.23 694.10 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.23 694.10 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.56 694.10 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.56 694.10 Td (years for electrical and mechanical installations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.69 694.10 Td (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.69 694.10 Td ( years for buildings. Major ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (replacements that extend the useful life of the assets are capitalized and maintenance and repair costs are expensed as incurred.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 658.10 Td (Acquisitions of properties are accounted for utilizing the acquisition method and, accordingly) Tj ET Q q 0 0 0 rg BT 441.69 658.10 Td (, are recorded at the estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (fair values of the assets acquired and liabilities assumed. ) Tj ET Q q 0 0 0 rg BT 281.14 646.10 Td (The results of operations of acquired properties are included in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 634.10 Td (s results of operations from their respective dates of acquisition. Estimates of fair values are based upon estimates of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (future cash flows and other valuation techniques that the Company believes are similar to those used by market participants and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (are used to record the purchase of identifiable assets acquired, such as land, buildings and improvements, equipment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (identifiable intangible assets related to in-place leases and liabilities assumed, such as amounts related to acquired out-of-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (market leases, asset retirement obligations, and mortgage notes payable. ) Tj ET Q q 0 0 0 rg BT 343.33 586.10 Td (V) Tj ET Q q 0 0 0 rg BT 349.45 586.10 Td (alues of buildings and improvements are determined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (on an as-if-vacant basis. Initial valuations are subject to change until such information is finalized, which will occur no later ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (than 12months after the acquisition date. ) Tj ET Q q 0 0 0 rg BT 219.68 562.10 Td (Acquisition-related costs such as transaction costs and acquisition fees paid to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (Advisor are expensed as incurred. Refer to Recent ) Tj ET Q q 0 0 0 rg BT 272.42 550.10 Td (Accounting Pronouncements for additional information on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (adoption of ) Tj ET Q q 0 0 0 rg BT 97.77 538.10 Td (ASU 2017-01 beginning January 1, 2018, in which the Company) Tj ET Q q 0 0 0 rg BT 360.80 538.10 Td (s real estate acquisitions will qualify as asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (acquisitions and acquisition-related costs will be capitalized beginning in January 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 502.10 Td (The estimated fair value of acquired in-place leases are the costs the Company would have incurred to lease the properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (to the occupancy level of the properties at the date of acquisition. Such estimates include the fair value of leasing commissions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (legal costs and other direct costs that would be incurred to lease the properties to such occupancy levels. ) Tj ET Q q 0 0 0 rg BT 471.53 478.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 521.44 478.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (Company evaluates the time period over which such occupancy levels would be achieved. Such evaluation will include an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (estimate of the net market-based rental revenues and net operating costs \(primarily consisting of real estate taxes, insurance and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (utilities\) that would be incurred during the lease-up period. ) Tj ET Q q 0 0 0 rg BT 290.21 442.10 Td (Acquired in-place leases as of the date of acquisition are amortized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (over the remaining lease terms. Should a tenant terminate its lease, the unamortized portion of the in-place lease value is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (char) Tj ET Q q 0 0 0 rg BT 67.03 418.10 Td (ged to amortization expense.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 394.10 Td (Acquired out-of-market lease values \(including ground leases\) arerecorded based on the present value \(using a discount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (rate that reflects the risks associated with the lease acquired\) of the dif) Tj ET Q q 0 0 0 rg BT 330.82 382.10 Td (ference between the contractual amounts paid pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (the in-place leases and management) Tj ET Q q 0 0 0 rg BT 196.60 370.10 Td (s estimate of fair market value lease rates for the corresponding in-place leases. ) Tj ET Q q 0 0 0 rg BT 518.78 370.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (capitalized out-of-market lease values are amortized as adjustments to rental revenue \(or ground lease expense, as applicable\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (over the remaining terms of the respective leases, which include periods covered by bar) Tj ET Q q 0 0 0 rg BT 400.24 346.10 Td (gain renewal options. Should a tenant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (terminate its lease, the unamortized portion of the out-of-market lease value is char) Tj ET Q q 0 0 0 rg BT 382.19 334.10 Td (ged to rental revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 310.10 Td (Management estimates the fair value of assumed mortgage notes payable based upon indications of then-current market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (pricing for similar types of debt with similar maturities. ) Tj ET Q q 0 0 0 rg BT 276.90 298.10 Td (Assumed mortgage notes payable are initially recorded at their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (estimated fair value as of the assumption date, and the dif) Tj ET Q q 0 0 0 rg BT 280.02 286.10 Td (ference between such estimated fair value and the outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (principal balance of the note will be amortized over the life of the mortgage note payable.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 250.10 Td (Impairment of Investment Pr) Tj ET Q q 0 0 0 rg BT 182.88 250.10 Td (operty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 226.10 Td (Real estate assets are reviewed for impairment each reporting period if events or changes in circumstances indicate that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (carrying amount of the individual property may not be recoverable. In such an event, a comparison will be made of the current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (and projected operating cash flows and expected proceeds from the eventual disposition of each property on an undiscounted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (basis to the carrying amount of such property) Tj ET Q q 0 0 0 rg BT 230.69 190.10 Td (. If the carrying amount exceeds the undiscounted cash flows, it would be written ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (down to theestimated fair value to reflect impairment in the value of the asset. ) Tj ET Q q 0 0 0 rg BT 369.43 178.10 Td (The determination of whether investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (property is impaired requires a significant amount of judgment by management and is based on the best information available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (to management at the time of the evaluation. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.27 154.10 Td (No) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.49 154.10 Td ( impairment char) Tj ET Q q 0 0 0 rg BT 313.62 154.10 Td (ges were recorded during the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 154.10 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 142.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 142.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 142.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.94 142.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.94 142.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 118.10 Td (Cash ) Tj ET Q q 0 0 0 rg BT 91.06 118.10 Td (and ) Tj ET Q q 0 0 0 rg BT 108.56 118.10 Td (Cash ) Tj ET Q q 0 0 0 rg BT 131.62 118.10 Td (Equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 94.10 Td (The Company considers all short-term, highly liquid investments that are readily convertible to cash with a maturity of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (three months or less at the time of purchase to be cash equivalents.) Tj ET Q endstream endobj 163 0 obj <> endobj 164 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (79) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (Concentration of Cr) Tj ET Q q 0 0 0 rg BT 148.74 742.10 Td (edit Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 718.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 718.10 Td (, the Company had cash and cash equivalents deposited in certain financial institutions in excess ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (of federally insured levels. Management regularly monitors the financial stability of these financial institutions in an ef) Tj ET Q q 0 0 0 rg BT 528.01 706.10 Td (fort to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (manage the Company) Tj ET Q q 0 0 0 rg BT 139.98 694.10 Td (s exposure to any significant credit risk in cash and cash equivalents.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 670.10 Td (In addition, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.26 670.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.85 670.10 Td (, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.89 670.10 Td ($9.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.78 670.10 Td ( of cash and cash equivalents deposited in certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (financial institutions located in the United Kingdom and Ireland. Management regularly monitors the financial stability of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (financial institutions in an ef) Tj ET Q q 0 0 0 rg BT 164.24 646.10 Td (fort to manage its exposure to any significant credit risk in cash and cash equivalents.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 622.10 Td (International Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 598.10 Td (The Euro \(EUR\) is the functional currency for the Company) Tj ET Q q 0 0 0 rg BT 320.97 598.10 Td (s subsidiaries operating in Ireland and the British pound ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (\(GBP\) is the functional currency for the Company) Tj ET Q q 0 0 0 rg BT 262.44 586.10 Td (s subsidiaries operating in the United Kingdom. ) Tj ET Q q 0 0 0 rg BT 458.62 586.10 Td (These subsidiaries have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (translated their financial statements into U.S. dollars for reporting purposes. ) Tj ET Q q 0 0 0 rg BT 358.26 574.10 Td (Assets and liabilities are translated at the exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (rate in ef) Tj ET Q q 0 0 0 rg BT 85.35 562.10 Td (fect as of the balance sheet date. Income statement accounts are generally translated using the average exchange rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (for the period and significant nonrecurring transactions using the rate on the transaction date. Gains or losses resulting from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (translation are included in accumulated other comprehensive income \(loss\) within stockholders) Tj ET Q q 0 0 0 rg BT 433.58 538.10 Td ( equity) Tj ET Q q 0 0 0 rg BT 460.43 538.10 Td (. Upon disposal of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (subsidiary) Tj ET Q q 0 0 0 rg BT 90.46 526.10 Td (, the Company will remove the accumulated translation adjustment from stockholders) Tj ET Q q 0 0 0 rg BT 436.02 526.10 Td ( equity and include it in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (gain or loss on disposal in its consolidated statement of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 490.10 Td (The Company and its subsidiaries may have transactions denominated in currencies other than their functional currencies. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (In these instances, assets and liabilities are remeasured into the functional currency at the exchange rate in ef) Tj ET Q q 0 0 0 rg BT 484.64 478.10 Td (fect at the end of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (the period and income statement accounts are remeasured at the average exchange rate for the period. ) Tj ET Q q 0 0 0 rg BT 460.73 466.10 Td (These gains or losses are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (included in the Company) Tj ET Q q 0 0 0 rg BT 153.59 454.10 Td (s consolidated statement of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 430.10 Td (The Company and its subsidiaries also record gains or losses in the income statement when a transaction with a third party) Tj ET Q q 0 0 0 rg BT 557.23 430.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (denominated in a currency other than the functional currency) Tj ET Q q 0 0 0 rg BT 293.69 418.10 Td (, is settled and the functional currency cash flows realized are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (more or less than expected based upon the exchange rate in ef) Tj ET Q q 0 0 0 rg BT 297.22 406.10 Td (fect when the transaction was initiated.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 382.10 Td (Restricted Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 358.10 Td (The Company has restricted cash primarily related to certain escrow accounts required by several of the Company) Tj ET Q q 0 0 0 rg BT 527.28 358.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (mortgage agreements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 322.10 Td (T) Tj ET Q q 0 0 0 rg BT 72.64 322.10 Td (enant and Other Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 298.10 Td (T) Tj ET Q q 0 0 0 rg BT 73.41 298.10 Td (enant and other receivables balances consist primarily of base rents, tenant reimbursements and receivables attributable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (straight-line rent. Straight-line rent receivables were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.80 286.10 Td ($4.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.70 286.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.13 286.10 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.03 286.10 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.19 286.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.77 286.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.21 286.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.21 286.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 274.10 Td (. Straight-line rent receivables consist of the dif) Tj ET Q q 0 0 0 rg BT 289.92 274.10 Td (ference between the tenants) Tj ET Q q 0 0 0 rg BT 403.28 274.10 Td ( rents calculated on a straight-line basis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (from the date of acquisition or lease commencement over the remaining terms of the related leases and the tenants) Tj ET Q q 0 0 0 rg BT 509.08 262.10 Td ( actual rents ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (due under the lease agreements and is included in tenant and other receivables in the accompanying consolidated balance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (sheets. ) Tj ET Q q 0 0 0 rg BT 81.39 238.10 Td (An allowance for the uncollectible portion of tenant and other receivables is determined based upon an analysis of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (tenant) Tj ET Q q 0 0 0 rg BT 77.21 226.10 Td (s payment history) Tj ET Q q 0 0 0 rg BT 147.67 226.10 Td (, the financial condition of the tenant, business conditions in the industry in which the tenant operates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (and economic conditions in the area in which the property is located. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 190.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 190.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 190.10 Td (, tenant and other receivables included a) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.29 190.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.18 190.10 Td (receivable from a third-party related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (working capital reserves and transactions costs related to the acquisition of the Queen) Tj ET Q q 0 0 0 rg BT 395.44 178.10 Td (s Court Student Residences. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.90 166.10 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.56 166.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.15 166.10 Td (, tenant and other receivables included a receivable from the Company) Tj ET Q q 0 0 0 rg BT 490.31 166.10 Td (s transfer agent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.83 154.10 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.72 154.10 Td ( related to of) Tj ET Q q 0 0 0 rg BT 160.35 154.10 Td (fering proceeds not yet received, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.90 154.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.90 154.10 Td ( such receivable balance outstanding as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.67 154.10 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (2017) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 70.00 142.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 118.10 Td (Deferr) Tj ET Q q 0 0 0 rg BT 94.29 118.10 Td (ed Leasing Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 94.10 Td (Direct leasing costs, primarily consisting of third-party leasing commissions, tenant inducements and legal costs are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (capitalized and amortized over the life of the related lease. ) Tj ET Q q 0 0 0 rg BT 288.59 82.10 Td (T) Tj ET Q q 0 0 0 rg BT 294.00 82.10 Td (enant inducement amortization is recorded as an of) Tj ET Q q 0 0 0 rg BT 497.91 82.10 Td (fset to rental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (revenue and the amortization of other direct leasing costs is recorded in amortization expense.) Tj ET Q endstream endobj 165 0 obj <> endobj 166 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (80) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (Other ) Tj ET Q q 0 0 0 rg BT 93.65 742.10 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (Other assets included the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 692.60 320.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 692.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 692.60 92.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 692.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.50 692.60 92.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 662.60 320.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 662.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 662.60 92.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 662.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.50 662.60 92.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 632.60 320.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 632.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 632.60 92.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 632.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.50 632.60 92.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 603.60 320.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 603.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 603.60 92.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 603.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.50 603.60 92.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 692.6 m 465.5 692.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 692.6 m 561.5 692.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 603.6 m 465.5 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 603.6 m 561.5 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 589.6 m 465.5 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 587.6 m 465.5 587.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 589.6 m 561.5 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 587.6 m 561.5 587.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 697.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 378.65 697.28 Td (December) Tj ET Q q 0 0 0 rg BT 421.87 697.28 Td ( 31, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 697.28 Td (December) Tj ET Q q 0 0 0 rg BT 517.77 697.28 Td ( 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 683.17 Td (Deposits on investment property ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 184.76 687.70 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 682.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 682.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.00 682.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 682.27 Td (5,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 667.27 Td (Deferred of) Tj ET Q q 0 0 0 rg BT 98.18 667.27 Td (fering costs ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 147.05 671.80 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 667.27 Td (1,525) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 667.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 652.27 Td (Prepaid insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 652.27 Td (97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 652.27 Td (219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 637.27 Td (Prepaid property taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 637.27 Td (76) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 637.27 Td (74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 623.17 Td (Deferred tax assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 623.17 Td (944) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 623.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 608.27 Td (Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 608.27 Td (725) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 608.27 Td (277) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 593.27 Td (Other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 593.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 593.27 Td (3,367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.00 593.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 593.27 Td (5,570) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 569.90 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 569.90 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 569.90 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 569.90 Td (, this amount consisted of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.96 569.90 Td ($5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.85 569.90 Td ( earnest money deposit in connection with the acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 557.90 Td (of Rookwood, which was completed in January 2017. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 533.90 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 533.90 Td (Represents of) Tj ET Q q 0 0 0 rg BT 122.53 533.90 Td (fering costs incurred by the Company) Tj ET Q q 0 0 0 rg BT 276.10 533.90 Td (s ) Tj ET Q q 0 0 0 rg BT 281.94 533.90 Td (Advisor which will be released into equity as gross proceeds from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 521.90 Td (Follow-On Of) Tj ET Q q 0 0 0 rg BT 124.76 521.90 Td (fering are raised. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.66 521.90 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.60 521.90 Td ( Related Party ) Tj ET Q q 0 0 0 rg BT 315.07 521.90 Td (T) Tj ET Q q 0 0 0 rg BT 320.83 521.90 Td (ransactions for additional information regarding of) Tj ET Q q 0 0 0 rg BT 523.64 521.90 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 509.90 Td (costs payable to the Company) Tj ET Q q 0 0 0 rg BT 190.75 509.90 Td (s ) Tj ET Q q 0 0 0 rg BT 196.59 509.90 Td (Advisor) Tj ET Q q 0 0 0 rg BT 228.26 509.90 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 485.90 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 461.90 Td (The Company recognizes rental revenue on a straight-line basis over the life of the lease including rent holidays, if any) Tj ET Q q 0 0 0 rg BT 543.30 461.90 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 449.90 Td (Revenues associated with operating expense recoveries are recognized in the period in which the expenses are incurred based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 437.90 Td (upon the tenant lease provisions. Revenues relating to lease termination fees are recognized on a straight-line basis amortized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 425.90 Td (from the time that a tenant) Tj ET Q q 0 0 0 rg BT 158.57 425.90 Td (s right to occupy the leased space is modified through the end of the revised lease term.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 401.90 Td (Other revenues consist primarily of parking revenue, administrative fees, and tenant reimbursements related to utilities, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 389.90 Td (insurance, and other operating expenses. Parking revenue represents amounts generated from contractual and transient parking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 377.90 Td (and is recognized in accordance with contractual terms or as services are rendered. Other revenues relating to tenant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 365.90 Td (reimbursements are recognized in the period that the expense is incurred.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 341.90 Td (Income T) Tj ET Q q 0 0 0 rg BT 104.57 341.90 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 317.90 Td (The Company has elected to be treated as a REIT) Tj ET Q q 0 0 0 rg BT 265.80 317.90 Td ( under Sections 856 through 860 of the Internal Revenue Code of 1986, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 305.90 Td (as amended \(the Code\), beginning with its taxable year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.96 305.90 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.55 305.90 Td (. ) Tj ET Q q 0 0 0 rg BT 393.87 305.90 Td (The Company) Tj ET Q q 0 0 0 rg BT 453.58 305.90 Td (s management believes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 293.90 Td (that it operates in such a manner as to qualify for treatment as a REIT) Tj ET Q q 0 0 0 rg BT 328.06 293.90 Td ( and intends to operate in the foreseeable future in such a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 281.90 Td (manner so that it will remain qualified as a REIT) Tj ET Q q 0 0 0 rg BT 245.60 281.90 Td ( for federal income tax purposes. ) Tj ET Q q 0 0 0 rg BT 381.66 281.90 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 431.00 281.90 Td (, no provision has been made for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 269.90 Td (U.S. federal income taxes for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.37 269.90 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.95 269.90 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.95 269.90 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.95 269.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.39 269.90 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.39 269.90 Td ( in the accompanying consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 257.90 Td (statements. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.04 257.90 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.04 257.90 Td (, income tax expense/benefit recorded by the Company was primarily comprised of foreign income taxes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 245.90 Td (related to the operation of its international properties. ) Tj ET Q q 0 0 0 rg BT 265.58 245.90 Td (The Company does not believe it has any uncertain tax positions or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 233.90 Td (unrecognized tax benefits requiring disclosure. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 209.90 Td (On December 22, 2017, the U.S. government enacted the ) Tj ET Q q 0 0 0 rg BT 299.14 209.90 Td (T) Tj ET Q q 0 0 0 rg BT 304.55 209.90 Td (ax Cuts and Jobs ) Tj ET Q q 0 0 0 rg BT 374.00 209.90 Td (Act. ) Tj ET Q q 0 0 0 rg BT 393.25 209.90 Td (The ) Tj ET Q q 0 0 0 rg BT 411.12 209.90 Td (T) Tj ET Q q 0 0 0 rg BT 416.53 209.90 Td (ax Cuts and Jobs ) Tj ET Q q 0 0 0 rg BT 485.98 209.90 Td (Act makes broad ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 197.90 Td (and complex changes to the Internal Revenue Code including, but not limited to, \(1\) reducing the top U.S. federal corporate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 185.90 Td (income tax rate from35%to21%, \(2\) establishing a20% deduction for ordinary REIT) Tj ET Q q 0 0 0 rg BT 397.22 185.90 Td ( dividends \(other than any portion that is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 173.90 Td (a capital gain dividend or qualified dividend income subject to complex limitations\), \(3\) limiting the deductibility of business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 161.90 Td (interest expense, \(4\) allowing full expensing of certain qualifying property) Tj ET Q q 0 0 0 rg BT 347.59 161.90 Td (, \(5\) eliminating the corporate ) Tj ET Q q 0 0 0 rg BT 469.22 161.90 Td (Alternative Minimum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 149.90 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 149.90 Td (ax \(AMT\) and changing how existing ) Tj ET Q q 0 0 0 rg BT 217.04 149.90 Td (AMT) Tj ET Q q 0 0 0 rg BT 239.08 149.90 Td ( credits can be realized, \(6\) limiting current net operating loss deductions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 137.90 Td (providing an indefinite carryforward and \(7\) limiting the deductibility of certain executive compensation. ) Tj ET Q q 0 0 0 rg BT 473.57 137.90 Td (The Company) Tj ET Q q 0 0 0 rg BT 533.28 137.90 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 125.90 Td (evaluation of deferred taxes and the associated valuation allowance includes an estimate of the impact of the ) Tj ET Q q 0 0 0 rg BT 486.04 125.90 Td (T) Tj ET Q q 0 0 0 rg BT 491.45 125.90 Td (ax Cuts and Jobs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 113.90 Td (Act and was based on the best information available to the Company at the time.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 89.90 Td (Distribution and Stockholder Servicing Fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 65.90 Td (The Company records distribution and stockholder servicing fees as a reduction to additional paid-in capital and the related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 53.90 Td (liability in an amount equal to the maximum fees payable in relation to the applicable class of shares on the date the shares are ) Tj ET Q endstream endobj 167 0 obj <> endobj 168 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (issued. ) Tj ET Q q 0 0 0 rg BT 82.32 742.10 Td (The liability will be relieved over time, as the fees are paid to the Dealer Manager) Tj ET Q q 0 0 0 rg BT 409.56 742.10 Td (, or it will be adjusted if the fees are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (no longer payable. ) Tj ET Q q 0 0 0 rg BT 128.59 730.10 Td (As a result of the Company) Tj ET Q q 0 0 0 rg BT 241.07 730.10 Td (s self-tender of) Tj ET Q q 0 0 0 rg BT 300.86 730.10 Td (fer which is more fully described in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.10 730.10 Td (Note 7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.04 730.10 Td ( Stockholders) Tj ET Q q 0 0 0 rg BT 545.34 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (Equity) Tj ET Q q 0 0 0 rg BT 76.02 718.10 Td (, the Company reduced its distribution and stockholder servicing fee liability by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.89 718.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.78 718.10 Td (, which was recorded as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 706.10 Td (fset to additional paid-in capital since those redeemed shares were no longer subject to the ongoing distribution and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (stockholder servicing fees. For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.99 694.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.58 694.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.02 694.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.02 694.10 Td (, the Company recorded a liability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.97 694.10 Td ($8.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.86 694.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.94 682.10 Td ($4.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.83 682.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 168.49 682.10 Td (. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.93 682.10 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.87 682.10 Td ( Related Party ) Tj ET Q q 0 0 0 rg BT 291.34 682.10 Td (T) Tj ET Q q 0 0 0 rg BT 297.09 682.10 Td (ransactions for additional information regarding the Company) Tj ET Q q 0 0 0 rg BT 548.14 682.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (distribution and stockholder servicing fees.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 646.10 Td (Per Shar) Tj ET Q q 0 0 0 rg BT 103.46 646.10 Td (e Data) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 622.10 Td (Net income \(loss\) per common share is calculated by dividing the net income \(loss\) attributable to common stockholders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (for each period by the weighted average number of common shares outstanding during such period. Net income \(loss\) per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (common share on a basic and diluted basis is the same because the Company has no potentially dilutive common shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (outstanding.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 562.10 Td (Recent ) Tj ET Q q 0 0 0 rg BT 97.52 562.10 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 155.19 562.10 Td (onouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 538.10 Td (In May 2014, the F) Tj ET Q q 0 0 0 rg BT 144.20 538.10 Td (ASB, issued ) Tj ET Q q 0 0 0 rg BT 195.60 538.10 Td (ASU 2014-09 to provide guidance on recognizing revenue from contracts with customers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (\(ASC 606\). ) Tj ET Q q 0 0 0 rg BT 107.31 526.10 Td (This ) Tj ET Q q 0 0 0 rg BT 127.04 526.10 Td (ASU) Tj ET Q q 0 0 0 rg BT 149.82 526.10 Td (s core objective is for an entity to recognize revenue based on the consideration it expects to receive in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (exchange for goods or services. ) Tj ET Q q 0 0 0 rg BT 178.66 514.10 Td (The amendments also replace prior guidance regarding the recognition of revenue from sales of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (real estate, except for revenue from sales that are part of a sale-leaseback transaction. Subsequent to ) Tj ET Q q 0 0 0 rg BT 453.99 502.10 Td (ASU 2014-09, the F) Tj ET Q q 0 0 0 rg BT 534.36 502.10 Td (ASB ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (has issued multiple ) Tj ET Q q 0 0 0 rg BT 128.61 490.10 Td (ASUs clarifying multiple aspects of the new revenue recognition standard, which include the deferral of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 478.10 Td (fective date by one year) Tj ET Q q 0 0 0 rg BT 152.69 478.10 Td (, and additional guidance for partial sales of non-financial assets. ) Tj ET Q q 0 0 0 rg BT 414.64 478.10 Td (These amendments are ef) Tj ET Q q 0 0 0 rg BT 516.36 478.10 Td (fective for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (fiscal years, and interim periods within those years, beginning after December 15, 2017, with retrospective or modified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (retrospective adoption. ) Tj ET Q q 0 0 0 rg BT 146.46 454.10 Td (The Company has not had any sales or partial sales of real estate since its inception. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 430.10 Td (Expanded quantitative and qualitative disclosures regarding revenue recognition will be required for contracts that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (subject to this pronouncement. Rental income from leasing arrangements is specifically excluded from ) Tj ET Q q 0 0 0 rg BT 462.66 418.10 Td (ASU 2014-09, and will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (be evaluated by the Company in its adoption of the lease accounting standard, ) Tj ET Q q 0 0 0 rg BT 363.80 406.10 Td (ASU 2016-02 \(described below\). ) Tj ET Q q 0 0 0 rg BT 498.87 406.10 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (has adopted ) Tj ET Q q 0 0 0 rg BT 99.43 394.10 Td (ASC 606 using the modified retrospective approach ef) Tj ET Q q 0 0 0 rg BT 317.25 394.10 Td (fective January 1, 2018. ) Tj ET Q q 0 0 0 rg BT 417.87 394.10 Td (The Company has identified its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (revenue streams and finalized its evaluation of the impact on our consolidated financial statements and internal accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (processes. ) Tj ET Q q 0 0 0 rg BT 95.64 370.10 Td (The Company has determined that the adoption of ) Tj ET Q q 0 0 0 rg BT 298.37 370.10 Td (ASC 606 will not require any material adjustments to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (consolidated financial statements. In addition, we evaluated controls around the implementation of this ) Tj ET Q q 0 0 0 rg BT 466.00 358.10 Td (ASU and have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (concluded there will be no significant impact on our control structure. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 322.10 Td (In February 2016, the F) Tj ET Q q 0 0 0 rg BT 161.96 322.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 210.87 322.10 Td (ASU 2016-02 which will require companies that lease assets to recognize on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (balance sheet the right-of-use assets and related lease liabilities. ) Tj ET Q q 0 0 0 rg BT 307.50 310.10 Td (The accounting by companies that own the assets leased by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (lessee \(the lessor\) will remain lar) Tj ET Q q 0 0 0 rg BT 182.27 298.10 Td (gely unchanged from current GAAP) Tj ET Q q 0 0 0 rg BT 326.67 298.10 Td (. ) Tj ET Q q 0 0 0 rg BT 331.49 298.10 Td (The new standard requires a modified retrospective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (transition approach for all leases existing at, or entered into after) Tj ET Q q 0 0 0 rg BT 307.56 286.10 Td (, the date of initial application, with an option to use certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (transition relief. ) Tj ET Q q 0 0 0 rg BT 116.19 274.10 Td (The guidance is ef) Tj ET Q q 0 0 0 rg BT 189.58 274.10 Td (fective for public entities for fiscal years beginning after December 15, 2018 and interim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (periods within those fiscal years. Early adoption is permitted. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 238.10 Td (In January 2018, the F) Tj ET Q q 0 0 0 rg BT 156.96 238.10 Td (ASB issued an exposure draft \(2018 Exposure Draft\) which, if adopted as written, would allow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (lessors a practical expedient by class of underlying assets to account for lease and non-lease components as a single lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (component if certain criteria are met. ) Tj ET Q q 0 0 0 rg BT 202.71 214.10 Td (Also, the 2018 Exposure Draft indicates that companies may be permitted to recognize a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (cumulative-ef) Tj ET Q q 0 0 0 rg BT 105.35 202.10 Td (fect adjustment to the opening balance of retained earnings in the period of adoption in lieu of the modified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (retrospective approach and provides other optional practical expedients. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 166.10 Td (The Company is in the process of evaluating the impact that the adoption of ) Tj ET Q q 0 0 0 rg BT 373.48 166.10 Td (ASU 2016-02 will have on the Company) Tj ET Q q 0 0 0 rg BT 540.13 166.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (consolidated financial statements relating to its lessor leases and other lessee leases, if any) Tj ET Q q 0 0 0 rg BT 410.35 154.10 Td (. ) Tj ET Q q 0 0 0 rg BT 415.17 154.10 Td (W) Tj ET Q q 0 0 0 rg BT 424.20 154.10 Td (ithin our lessor leases, we are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (entitled to receive tenant reimbursements for operating expenses such as real estate taxes, insurance and common area ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (maintenance. Currently upon adoption of this ) Tj ET Q q 0 0 0 rg BT 236.07 130.10 Td (ASU, common area maintenance \(CAM\) reimbursement revenue will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (accounted for in accordance with ) Tj ET Q q 0 0 0 rg BT 185.03 118.10 Td (T) Tj ET Q q 0 0 0 rg BT 190.44 118.10 Td (opic 606. ) Tj ET Q q 0 0 0 rg BT 232.48 118.10 Td (The Company has currently identified certain areas the Company believes may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (impacted by the adoption of ) Tj ET Q q 0 0 0 rg BT 164.14 106.10 Td (ASU 2016-02, which include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 82.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 82.10 Td (The bifurcation of lease arrangements in which contractual amounts due are on a gross basis and the amount under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 70.10 Td (contract is not allocated between rental and expense reimbursements, such as real estate taxes and insurance. ) Tj ET Q q 0 0 0 rg BT 522.87 70.10 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 58.10 Td (process would be based on the underlying fair values of these items.) Tj ET Q endstream endobj 169 0 obj <> endobj 170 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (82) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 742.10 Td (The Company has a ground lease agreement in which the Company is the lessee for land underneath Bishop) Tj ET Q q 0 0 0 rg BT 521.16 742.10 Td (s Square ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 730.10 Td (that the Company currently accounts for as an operating lease. Upon adoption of ) Tj ET Q q 0 0 0 rg BT 410.35 730.10 Td (ASU 2016-02, the Company will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 718.10 Td (record any rights and obligations under this lease as an asset and liability at fair value in the Company) Tj ET Q q 0 0 0 rg BT 497.00 718.10 Td (s consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 706.10 Td (balance sheets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 682.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 682.10 Td (Determination of costs to be capitalized associated with leases. ) Tj ET Q q 0 0 0 rg BT 339.81 682.10 Td (ASU 2016-02 will limit the capitalization associated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 670.10 Td (with certain costs to costs that are a direct result of obtaining a lease. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.10 Td (In October 2016, the F) Tj ET Q q 0 0 0 rg BT 158.07 646.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 206.97 646.10 Td (ASU 2016-16 which removes the prohibition in ) Tj ET Q q 0 0 0 rg BT 400.01 646.10 Td (ASC 740 against the immediate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (recognition of the current and deferred income tax ef) Tj ET Q q 0 0 0 rg BT 261.39 634.10 Td (fects of intra-entity transfers of assets other than inventory) Tj ET Q q 0 0 0 rg BT 494.55 634.10 Td (. ) Tj ET Q q 0 0 0 rg BT 501.87 634.10 Td (The ) Tj ET Q q 0 0 0 rg BT 519.37 634.10 Td (ASU is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (intended to reduce the complexity of ) Tj ET Q q 0 0 0 rg BT 198.84 622.10 Td (ASC 740 and the diversity in practice related to the tax consequences of certain types of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (intra-entity asset transfers. ) Tj ET Q q 0 0 0 rg BT 160.24 610.10 Td (ASU 2016-16 will be ef) Tj ET Q q 0 0 0 rg BT 256.16 610.10 Td (fective for annual periods beginning after December 31, 2017. ) Tj ET Q q 0 0 0 rg BT 510.33 610.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (Company adopted ) Tj ET Q q 0 0 0 rg BT 124.99 598.10 Td (ASU 2016-16 beginning January 1, 2018 and has recorded deferred tax assets and related valuation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (allowances related to its subsidiaries in Ireland.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 562.10 Td (In January 2017, the F) Tj ET Q q 0 0 0 rg BT 156.96 562.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 205.87 562.10 Td (ASU 2017-01 to clarify the definition of a business with the objective of adding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions \(or disposals\) of assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (or businesses. ) Tj ET Q q 0 0 0 rg BT 110.37 538.10 Td (The Company expects that most of its real estate transactions completed after the Company) Tj ET Q q 0 0 0 rg BT 478.87 538.10 Td (s adoption of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (guidance will be accounted for using the asset acquisition guidance and, accordingly) Tj ET Q q 0 0 0 rg BT 387.57 526.10 Td (, acquisition fees and expenses related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (those acquisitions will be capitalized. ) Tj ET Q q 0 0 0 rg BT 204.50 514.10 Td (The amendments to the Codification will be ef) Tj ET Q q 0 0 0 rg BT 390.66 514.10 Td (fective for public entities for annual and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (interim periods in fiscal years beginning after December 15, 2017 and early adoption is permitted with prospective application. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (The Company adopted ) Tj ET Q q 0 0 0 rg BT 143.04 490.10 Td (ASU 2017-01 January 1, 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 461.10 Td (In February 2017, the F) Tj ET Q q 0 0 0 rg BT 161.96 461.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 210.87 461.10 Td (ASU No. 2017-05 to clarify that a financial asset is within the scope of Subtopic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 449.10 Td (610-20 if it meets the definition, as amended, of an in substance nonfinancial asset. If substantially all of the fair value of assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 437.10 Td (that are promised to a counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 425.10 Td (to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20, including a parent transferring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 413.10 Td (control of a nonfinancial asset through a transfer of ownership interests of a consolidated subsidiary) Tj ET Q q 0 0 0 rg BT 448.68 413.10 Td (. ) Tj ET Q q 0 0 0 rg BT 453.50 413.10 Td (The provisions of ) Tj ET Q q 0 0 0 rg BT 526.00 413.10 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 401.10 Td (No. 2017-05 are ef) Tj ET Q q 0 0 0 rg BT 125.35 401.10 Td (fective for the Company as of January 1, 2018. ) Tj ET Q q 0 0 0 rg BT 317.89 401.10 Td (T) Tj ET Q q 0 0 0 rg BT 323.30 401.10 Td (o date, the Company has not had any sales of in-substance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 389.10 Td (nonfinancial assets. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 360.10 Td (3. INVESTMENT) Tj ET Q q 0 0 0 rg BT 129.56 360.10 Td ( PROPER) Tj ET Q q 0 0 0 rg BT 172.81 360.10 Td (TY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 336.10 Td (Investment property consisted of the following amounts as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.01 336.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.59 336.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.03 336.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.61 336.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 298.60 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 298.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 298.60 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 298.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 268.60 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 268.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 268.60 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 268.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 238.60 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 238.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 238.60 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 238.60 90.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 298.6 m 458.5 298.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 298.6 m 562.5 298.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 298.6 m 562.5 298.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 268.6 m 458.5 268.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 268.6 m 562.5 268.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 238.60000000000002 m 458.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 238.60000000000002 m 562.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 224.60000000000002 m 458.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 222.60000000000002 m 458.5 222.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 224.60000000000002 m 562.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 222.60000000000002 m 562.5 222.60000000000002 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 303.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.65 303.28 Td (December) Tj ET Q q 0 0 0 rg BT 415.87 303.28 Td ( 31, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 476.65 303.28 Td (December) Tj ET Q q 0 0 0 rg BT 519.77 303.28 Td ( 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 288.27 Td (Buildings and improvements ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 171.05 292.80 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.00 288.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.15 288.27 Td (491,289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.00 288.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 288.27 Td (256,452) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 273.27 Td (Less: accumulated depreciation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.80 273.32 Td (\(18,172) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.65 273.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 273.32 Td (\(6,337) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 273.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 258.27 Td (Buildings and improvements, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.15 258.27 Td (473,1) Tj ET Q q 0 0 0 rg BT 444.65 258.27 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 258.27 Td (250,1) Tj ET Q q 0 0 0 rg BT 548.65 258.27 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 243.27 Td (Land) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.15 243.27 Td (99,716) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 243.27 Td (33,760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 228.27 Td (Investment property) Tj ET Q q 0 0 0 rg BT 133.16 228.27 Td (, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.00 228.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.15 228.27 Td (572,833) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.00 228.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 228.27 Td (283,875) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 204.90 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 204.90 Td (Included in buildings and improvements is approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.57 204.90 Td ($4.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.46 204.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.90 204.90 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.79 204.90 Td ( of construction-in-progress related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 192.90 Td (to the expansion at Bishop's Square as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.22 192.90 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.80 192.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.24 192.90 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.83 192.90 Td (, respectively) Tj ET Q q 0 0 0 rg BT 463.49 192.90 Td (. During the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 180.90 Td (quarter of 2017, the Company commenced construction at Bishop) Tj ET Q q 0 0 0 rg BT 334.33 180.90 Td (s Square to add an additional floor and make various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 168.90 Td (upgrades and improvements to the property) Tj ET Q q 0 0 0 rg BT 241.47 168.90 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 144.90 Td (See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.94 144.90 Td (Item 2.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.26 144.90 Td ( Properties and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.75 144.90 Td (Note 4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.69 144.90 Td ( Recent ) Tj ET Q q 0 0 0 rg BT 247.40 144.90 Td (Acquisitions of Real Estate for additional information regarding the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 132.90 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 132.90 Td (s real estate portfolio. ) Tj ET Q endstream endobj 171 0 obj <> endobj 172 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 742.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 742.10 Td (, the cost basis and accumulated amortization related to lease intangibles were as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 662.60 262.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 662.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 662.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 662.60 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 662.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 662.60 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 632.60 262.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 632.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 632.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 632.60 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 632.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 632.60 76.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 692.6 m 402.5 692.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 692.6 m 406.5 692.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 692.6 m 482.5 692.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 692.6 m 486.5 692.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 692.6 m 562.5 692.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 662.6 m 402.5 662.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 662.6 m 482.5 662.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 662.6 m 562.5 662.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 632.6 m 402.5 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 632.6 m 482.5 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 632.6 m 562.5 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 618.6 m 402.5 618.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 616.6 m 402.5 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 618.6 m 482.5 618.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 616.6 m 482.5 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 618.6 m 562.5 618.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 616.6 m 562.5 616.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 697.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.60 697.28 Td (Lease Intangibles) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 682.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.80 667.28 Td (In-Place Leases) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.05 677.28 Td (Out-of-Market) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.45 667.28 Td (Lease ) Tj ET Q q 0 0 0 rg BT 443.84 667.28 Td (Assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.05 677.28 Td (Out-of-Market) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.10 667.28 Td (Lease Liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 667.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 652.27 Td (Cost) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 652.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 652.27 Td (1) Tj ET Q q 0 0 0 rg BT 371.15 652.27 Td (16,222) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 652.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 652.27 Td (4,716) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 652.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 652.32 Td (\(18,490) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 652.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 637.27 Td (Less: accumulated amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.80 637.32 Td (\(24,430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 637.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.80 637.32 Td (\(1,371) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 637.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 637.27 Td (2,551) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 622.27 Td (Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 622.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.15 622.27 Td (91,792) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 622.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 622.27 Td (3,345) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 622.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 622.32 Td (\(15,939) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 622.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 594.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 594.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 594.10 Td (, the cost basis and accumulated amortization related to lease intangibles were as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 514.60 262.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 514.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 514.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 514.60 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 514.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 514.60 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 484.60 262.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 484.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 484.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 484.60 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 484.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 484.60 76.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 544.6 m 402.5 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 544.6 m 406.5 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 544.6 m 482.5 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 544.6 m 486.5 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 544.6 m 562.5 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 514.6 m 402.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 514.6 m 482.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 514.6 m 562.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 484.6 m 402.5 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 484.6 m 482.5 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 484.6 m 562.5 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 470.6 m 402.5 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 468.6 m 402.5 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 470.6 m 482.5 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 468.6 m 482.5 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 470.6 m 562.5 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 468.6 m 562.5 468.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 549.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.60 549.28 Td (Lease Intangibles) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 534.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.80 519.28 Td (In-Place Leases) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.05 529.28 Td (Out-of-Market) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.45 519.28 Td (Lease ) Tj ET Q q 0 0 0 rg BT 443.84 519.28 Td (Assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.05 529.28 Td (Out-of-Market) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.10 519.28 Td (Lease Liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 519.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 504.27 Td (Cost) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 504.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.15 504.27 Td (84,473) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 504.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 504.27 Td (3,230) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 504.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 504.32 Td (\(3,224) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 504.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 489.27 Td (Less: accumulated amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.80 489.32 Td (\(1) Tj ET Q q 0 0 0 rg BT 376.13 489.32 Td (1,238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 489.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.30 489.32 Td (\(395) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 489.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 489.27 Td (803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 474.27 Td (Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 474.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.15 474.27 Td (73,235) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 474.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 474.27 Td (2,835) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 474.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 474.32 Td (\(2,421) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 474.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 446.10 Td (Amortization expense of in-place leases was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.49 446.10 Td ($18.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.38 446.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.38 446.10 Td ($10.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.27 446.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.71 446.10 Td ($2.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.60 446.10 Td ( for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 434.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.58 434.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.58 434.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.02 434.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.02 434.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 245.68 434.10 Td (. Net amortization of out-of-market leases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.40 434.10 Td (resulted in an increase to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.80 434.10 Td ( rental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.10 Td (revenue of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.98 422.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.87 422.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.87 422.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.76 422.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.20 422.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.09 422.10 Td ( for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.44 422.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.03 422.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.03 422.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.03 422.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.46 422.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.46 422.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 543.13 422.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 398.10 Td (Anticipated amortization of the Company) Tj ET Q q 0 0 0 rg BT 237.40 398.10 Td (s in-place leases for each of the years ending December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.29 398.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.29 398.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.58 386.10 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 386.10 Td ( are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 339.60 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 339.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 339.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 339.60 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 309.60 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 309.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 309.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 309.60 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 279.60 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 279.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 279.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 279.60 76.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 339.6 m 482.5 339.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 339.6 m 562.5 339.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.75 344.28 Td (In-Place Lease) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.05 354.28 Td (Out-of-Market) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.80 344.28 Td (Leases, Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 329.27 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 329.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 329.27 Td (14,412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 329.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 329.32 Td (\(914) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 329.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 314.27 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 314.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 314.27 Td (10,724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 314.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 314.32 Td (\(953) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 314.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 299.27 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 299.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 299.27 Td (8,003) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 299.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 299.32 Td (\(1,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 299.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 284.27 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 284.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 284.27 Td (5,744) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 284.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 284.32 Td (\(1,065) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 284.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 269.27 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 269.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 269.27 Td (3,751) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 269.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 269.32 Td (\(1,131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 269.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 173 0 obj <> endobj 174 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (84) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (Leases) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (The Company has entered into non-cancelable lease agreements with tenants for space. ) Tj ET Q q 0 0 0 rg BT 421.20 718.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.64 718.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.23 718.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (approximate fixed future minimum rentals for each of the years ending December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.87 706.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.87 706.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.98 706.10 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.98 706.10 Td ( and thereafter for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 694.10 Td (s commercial properties are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 647.60 422.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 647.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 617.60 422.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 617.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 587.60 422.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 587.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 557.60 422.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 557.60 90.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 647.6 m 562.5 647.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 557.6 m 562.5 557.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 543.6 m 562.5 543.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 541.6 m 562.5 541.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 652.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.15 662.28 Td (Fixed Futur) Tj ET Q q 0 0 0 rg BT 540.36 662.28 Td (e) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.25 652.28 Td (Minimum Rentals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 637.27 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.00 637.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 637.27 Td (38,365) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 622.27 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 622.27 Td (35,671) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 607.27 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 607.27 Td (29,781) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 592.27 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 592.27 Td (25,381) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 577.27 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 577.27 Td (20,316) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 562.27 Td (Thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 562.27 Td (93,935) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 547.27 Td (T) Tj ET Q q 0 0 0 rg BT 58.41 547.27 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.00 547.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 547.27 Td (243,449) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 519.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.55 519.10 Td (year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.13 519.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.63 519.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.21 519.10 Td (, the Company did not earn more than 10% of its revenue from any individual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 507.10 Td (tenants.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 483.10 Td (Of the Company) Tj ET Q q 0 0 0 rg BT 137.43 483.10 Td (s total rental revenue for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.47 483.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.05 483.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.31 483.10 Td (21%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.64 483.10 Td ( was earned from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 471.10 Td (Commissioner of Public ) Tj ET Q q 0 0 0 rg BT 149.54 471.10 Td (W) Tj ET Q q 0 0 0 rg BT 158.18 471.10 Td (orks in Ireland, a state agency of Ireland, whose lease expires in 2028, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.41 471.10 Td (1) Tj ET Q q 0 0 0 rg BT 446.04 471.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.37 471.10 Td ( was earned from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 459.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 459.10 Td (estern Digital, a tenant in the information industry) Tj ET Q q 0 0 0 rg BT 258.50 459.10 Td (, whose lease expires in 2021, and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.89 459.10 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.22 459.10 Td ( was earned from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 447.10 Td (Acushnet, a tenant in the manufacturing industry) Tj ET Q q 0 0 0 rg BT 244.58 447.10 Td (, whose lease expires in 2028.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 423.10 Td (Of the Company) Tj ET Q q 0 0 0 rg BT 137.43 423.10 Td (s total rental revenue for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.47 423.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.05 423.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.31 423.10 Td (44%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.64 423.10 Td ( was earned from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 411.10 Td (Commissioner of Public ) Tj ET Q q 0 0 0 rg BT 149.54 411.10 Td (W) Tj ET Q q 0 0 0 rg BT 158.18 411.10 Td (orks in Ireland, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.49 411.10 Td (26%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.82 411.10 Td ( was earned from ) Tj ET Q q 0 0 0 rg BT 310.91 411.10 Td (Acushnet, and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.87 411.10 Td (15%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.20 411.10 Td ( was earned from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 399.10 Td (International Financial Data Services, an investor record-keeping and transfer agency provider) Tj ET Q q 0 0 0 rg BT 427.50 399.10 Td (, whose lease expires in 2024.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 375.10 Td (4. RECENT) Tj ET Q q 0 0 0 rg BT 103.99 375.10 Td ( ) Tj ET Q q 0 0 0 rg BT 105.94 375.10 Td (ACQUISITIONS OF) Tj ET Q q 0 0 0 rg BT 195.87 375.10 Td ( REAL) Tj ET Q q 0 0 0 rg BT 225.60 375.10 Td ( EST) Tj ET Q q 0 0 0 rg BT 246.26 375.10 Td (A) Tj ET Q q 0 0 0 rg BT 252.74 375.10 Td (TE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 351.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.11 351.10 Td (year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.32 351.10 Td (s ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.08 351.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.67 351.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.11 351.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.11 351.10 Td (, the Company acquired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.13 351.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.12 351.10 Td ( properties for a total net purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 339.10 Td ($299.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.89 339.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.33 339.10 Td ($253.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.22 339.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 239.88 339.10 Td (. ) Tj ET Q q 0 0 0 rg BT 246.83 339.10 Td (Also, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.60 339.10 Td (year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.81 339.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.68 339.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.27 339.10 Td (, the Company acquired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.29 339.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.73 339.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 327.10 Td (property for a total net purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.82 327.10 Td ($103.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.71 327.10 Td (. ) Tj ET Q q 0 0 0 rg BT 280.03 327.10 Td (The amounts recognized for major assets acquired as of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 315.10 Td (acquisition date were determined by allocating the purchase price of each property acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.84 315.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.84 315.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.84 315.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.84 315.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.28 315.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.28 315.10 Td ( as follows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 303.10 Td (\(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 221.60 84.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 133.50 221.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 137.50 221.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.50 221.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.50 221.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 221.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 221.60 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 221.60 13.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.50 221.60 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 221.60 13.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 221.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 221.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 221.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 221.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 221.60 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 184.60 84.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 133.50 184.60 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 137.50 184.60 48.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.50 184.60 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.50 184.60 70.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 184.60 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 184.60 44.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 184.60 13.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.50 184.60 56.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 184.60 13.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 184.60 50.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 184.60 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 184.60 68.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 184.60 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 184.60 46.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 133.60 84.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 133.50 133.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 137.50 133.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.50 133.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.50 133.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 133.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 133.60 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 133.60 13.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.50 133.60 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 133.60 13.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 133.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 133.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 133.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 133.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 133.60 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 96.60 84.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 133.50 96.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 137.50 96.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.50 96.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.50 96.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 96.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 96.60 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 96.60 13.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.50 96.60 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 96.60 13.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 96.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 96.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 96.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 96.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 96.60 46.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 235.60000000000002 m 133.5 235.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 137.5 235.60000000000002 m 185.5 235.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 189.5 235.60000000000002 m 259.5 235.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 235.60000000000002 m 307.5 235.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320.5 235.60000000000002 m 376.5 235.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 235.60000000000002 m 439.5 235.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 235.60000000000002 m 511.5 235.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 235.60000000000002 m 561.5 235.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 221.60000000000002 m 133.5 221.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 133.60000000000002 m 133.5 133.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 133.60000000000002 m 133.5 133.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 68.10000000000002 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 68.10000000000002 m BT /F2 8.50 Tf ET q 0 0 0 rg BT 63.10 239.94 Td (Pr) Tj ET Q q 0 0 0 rg BT 71.99 239.94 Td (operty Name) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 140.20 248.44 Td (Acquisition) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 152.50 239.94 Td (Date) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 200.45 248.44 Td (Building and) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 193.35 239.94 Td (Impr) Tj ET Q q 0 0 0 rg BT 212.09 239.94 Td (ovements ) Tj ET Q BT /F2 8.50 Tf ET 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0 d 0 J 0 j 3 M 263.5 702.5 m 307.5 702.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320.5 702.5 m 376.5 702.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 702.5 m 439.5 702.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 702.5 m 511.5 702.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 702.5 m 561.5 702.5 l s BT /F2 8.50 Tf ET q 0 0 0 rg BT 63.10 706.84 Td (Pr) Tj ET Q q 0 0 0 rg BT 71.99 706.84 Td (operty Name) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 140.20 715.34 Td (Acquisition) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 152.50 706.84 Td (Date) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 200.45 715.34 Td (Building and) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 193.35 706.84 Td (Impr) Tj ET Q q 0 0 0 rg BT 212.09 706.84 Td (ovements ) Tj ET Q BT /F2 8.50 Tf ET BT /F2 5.52 Tf ET q 0 0 0 rg BT 248.20 710.69 Td (\(1\)) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 271.00 706.84 Td (Land ) Tj ET Q BT /F2 8.50 Tf ET BT /F2 5.52 Tf ET q 0 0 0 rg BT 292.50 710.69 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q 0 0 0 rg BT 446.60 706.84 Td (mortgage loan ) Tj ET Q BT /F2 8.50 Tf ET BT /F2 5.52 Tf ET q 0 0 0 rg BT 500.90 710.69 Td (\(1\)) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 524.40 706.84 Td (T) Tj ET Q q 0 0 0 rg BT 529.29 706.84 Td (otal ) Tj ET Q BT /F2 8.50 Tf ET BT /F2 5.52 Tf ET q 0 0 0 rg BT 545.11 710.69 Td (\(1\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 688.50 84.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 133.50 688.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 137.50 688.50 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.50 688.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.50 688.50 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 688.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 688.50 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 688.50 13.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.50 688.50 56.00 -14.00 re 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q 0 0 0 rg BT 388.23 655.80 Td (s Court Student Residences were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 643.80 Td (denominated in foreign currencies and have been translated at an exchange rate based on the rate in ef) Tj ET Q q 0 0 0 rg BT 475.69 643.80 Td (fect on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 631.80 Td (acquisition date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 607.80 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 607.80 Td (Includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.38 607.80 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.27 607.80 Td ( related to the retail areas of the Montrose Student Residences that have average lease terms between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 595.80 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 595.80 Td ( years and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.04 595.80 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.04 595.80 Td ( years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 571.80 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 571.80 Td (The land at Bishop) Tj ET Q q 0 0 0 rg BT 146.60 571.80 Td (s Square is subject to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.47 571.80 Td (999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.47 571.80 Td (-year ground lease with the local municipality in Ireland. Since the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 559.80 Td (Company does not have title to the land, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.39 559.80 Td ($33.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.29 559.80 Td ( has been recorded to in-place lease intangibles and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 547.80 Td (will be amortized over the remaining term of the ground lease.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 523.80 Td (The weighted average amortization period for the intangible assets and liabilities acquired in connection with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.29 523.80 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.29 523.80 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 511.80 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 511.80 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.44 511.80 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.44 511.80 Td ( acquisitions, as of the date of the respective acquisition, was as follows \(in years\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 463.30 139.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.50 463.30 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 463.30 111.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 463.30 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 463.30 122.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 463.30 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 463.30 122.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 433.30 139.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.50 433.30 6.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 433.30 111.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 433.30 6.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 433.30 122.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 433.30 6.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 433.30 122.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 380.30 139.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.50 380.30 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 380.30 111.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 380.30 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 380.30 122.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 380.30 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 380.30 122.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 350.30 139.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.50 350.30 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 350.30 111.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 350.30 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 350.30 122.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 350.30 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 350.30 122.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 307.30 139.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.50 307.30 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 307.30 111.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 307.30 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 307.30 122.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 307.30 6.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 307.30 122.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194.5 477.3 m 305.5 477.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 477.3 m 433.5 477.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 477.3 m 561.5 477.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 477.3 m 188.5 477.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 463.3 m 188.5 463.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 463.3 m 188.5 463.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 380.3 m 188.5 380.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 307.3 m 188.5 307.3 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.30 481.98 Td (In-Place Leases) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.15 491.98 Td (Above-Market Lease) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.65 481.98 Td (Assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.70 491.98 Td (Below-Market Lease) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.60 481.98 Td (Liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 467.98 Td (2017 ) Tj ET Q q 0 0 0 rg BT 74.22 467.98 Td (Acquisitions:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 452.97 Td (Rookwood) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.25 452.97 Td (8.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.25 452.97 Td (15.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.25 452.97 Td (13.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 437.97 Td (Montrose Student Residences) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.25 437.97 Td (6.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.00 437.97 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.25 437.97 Td (18.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 422.97 Td (Queen) Tj ET Q q 0 0 0 rg BT 80.88 422.97 Td (s Court Student ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 412.97 Td (Residences) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 96.99 417.50 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.25 412.97 Td (0.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.00 412.97 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.00 412.97 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 384.98 Td (2016 ) Tj ET Q q 0 0 0 rg BT 74.22 384.98 Td (Acquisitions:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 369.97 Td (Domain ) Tj ET Q q 0 0 0 rg BT 86.44 369.97 Td (Apartments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.25 369.97 Td (0.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.00 369.97 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.00 369.97 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 354.97 Td (Cottonwood Corporate Center) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.25 354.97 Td (4.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.75 354.97 Td (8.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.75 354.97 Td (4.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 339.97 Td (Goodyear Crossing II) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.25 339.97 Td (3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.75 339.97 Td (3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.00 339.97 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 311.98 Td (2015 ) Tj ET Q q 0 0 0 rg BT 73.95 311.98 Td (Acquisition:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 297.87 Td (Bishop) Tj ET Q q 0 0 0 rg BT 83.12 297.87 Td (s Square ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 119.78 302.40 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.75 296.97 Td (10.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.75 296.97 Td (7.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.75 296.97 Td (8.3) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 273.60 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 273.60 Td (Excludes the ef) Tj ET Q q 0 0 0 rg BT 129.46 273.60 Td (fect of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.71 273.60 Td (999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.71 273.60 Td (-year leases, which significantly increases the weighted average useful life for these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 261.60 Td (intangibles.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 237.60 Td (The table below includes the amounts of revenue and net income \(loss\) of the acquisitions completed during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.43 237.60 Td (year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 225.60 Td (ended December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.96 225.60 Td (, which are included in the Company) Tj ET Q q 0 0 0 rg BT 305.20 225.60 Td (s consolidated statements of operations and comprehensive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 213.60 Td (income \(loss\) for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.53 213.60 Td (year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.12 213.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.62 213.60 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.20 213.60 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 162.10 230.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 162.10 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 162.10 160.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 162.10 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 162.10 114.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 132.10 230.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 132.10 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 132.10 160.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 132.10 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 132.10 114.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 102.10 230.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 102.10 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 102.10 160.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 102.10 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 102.10 114.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 162.10000000000002 m 280.5 162.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 162.10000000000002 m 562.5 162.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 162.10000000000002 m 280.5 162.10000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.25 181.78 Td (For) Tj ET Q q 0 0 0 rg BT 478.71 181.78 Td ( the ) Tj ET Q q 0 0 0 rg BT 496.76 181.78 Td (Y) Tj ET Q q 0 0 0 rg BT 503.24 181.78 Td (ear) Tj ET Q q 0 0 0 rg BT 516.48 181.78 Td ( Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 166.78 Td (2017 ) Tj ET Q q 0 0 0 rg BT 74.95 166.78 Td (Acquisitions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 166.77 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.65 166.78 Td (December) Tj ET Q q 0 0 0 rg BT 507.77 166.78 Td ( 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 151.77 Td (Rookwood) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 151.77 Td (Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 151.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 151.77 Td (19,507) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 136.78 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 136.77 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 136.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 136.82 Td (\(7,041) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 136.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 121.77 Td (Montrose Student Residences) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 121.77 Td (Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 121.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 121.77 Td (2,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 106.77 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 106.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 106.82 Td (\(3,049) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 106.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 91.77 Td (Queen) Tj ET Q q 0 0 0 rg BT 82.15 91.77 Td (s Court Student Residences) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 91.77 Td (Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 91.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 91.77 Td (1,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 76.77 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 76.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 76.82 Td (\(1,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 76.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 177 0 obj <> endobj 178 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (86) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (The following unaudited consolidated information is presented to give ef) Tj ET Q q 0 0 0 rg BT 359.69 730.10 Td (fect to the acquisitions completed during the year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.38 718.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.96 718.10 Td ( as if the acquisitions had occurred on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.80 718.10 Td (January1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.40 718.10 Td (. ) Tj ET Q q 0 0 0 rg BT 379.72 718.10 Td (The pro forma net loss was adjusted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (exclude acquisition-related fees and expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.47 706.10 Td ($10.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.37 706.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.74 706.10 Td (year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.33 706.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.83 706.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.41 706.10 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.02 706.10 Td (year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 694.10 Td (, the pro forma net loss was adjusted to include acquisition fees and expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.72 694.10 Td ($10.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.61 694.10 Td (, relating to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.72 682.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.72 682.10 Td ( acquisitions, as if these fees and expenses had been incurred as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.40 682.10 Td (January1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.00 682.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 658.10 Td (The information below is not necessarily indicative of what the actual results of operations would have been had the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (Company completed these acquisitions on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.36 646.10 Td (January1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.96 646.10 Td (, nor does it purport to represent the Company) Tj ET Q q 0 0 0 rg BT 472.42 646.10 Td (s future operations \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 568.60 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 568.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 568.60 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 568.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 568.60 79.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 568.6 m 479.5 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 568.6 m 562.5 568.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.25 602.28 Td (For) Tj ET Q q 0 0 0 rg BT 452.71 602.28 Td ( the ) Tj ET Q q 0 0 0 rg BT 470.76 602.28 Td (Y) Tj ET Q q 0 0 0 rg BT 477.24 602.28 Td (ears Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.90 588.28 Td (December) Tj ET Q q 0 0 0 rg BT 495.12 588.28 Td ( 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 573.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.85 573.28 Td (Pr) Tj ET Q q 0 0 0 rg BT 415.31 573.28 Td (o Forma 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.85 573.28 Td (Pr) Tj ET Q q 0 0 0 rg BT 498.22 573.28 Td (o Forma 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 558.27 Td (Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 558.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 558.27 Td (64,883) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 558.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 558.27 Td (52,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 543.27 Td (Net income \(loss\) attributable to common stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 543.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.80 543.32 Td (\(10,237) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 543.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 543.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 543.32 Td (\(16,833) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 543.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 515.10 Td (The table below includes the amounts of revenue and net income \(loss\) of the acquisitions completed during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.43 515.10 Td (year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 503.10 Td (ended December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.96 503.10 Td (, which are included in the Company) Tj ET Q q 0 0 0 rg BT 305.20 503.10 Td (s consolidated statements of operations and comprehensive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 491.10 Td (income \(loss\) for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.53 491.10 Td (year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.12 491.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.62 491.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.20 491.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 439.60 230.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 439.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 439.60 160.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 439.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 439.60 114.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 409.60 230.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 409.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 409.60 160.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 409.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 409.60 114.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 379.60 230.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 379.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 379.60 160.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 379.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 379.60 114.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 439.6 m 280.5 439.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 439.6 m 562.5 439.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 439.6 m 562.5 439.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.25 459.28 Td (For) Tj ET Q q 0 0 0 rg BT 478.71 459.28 Td ( the ) Tj ET Q q 0 0 0 rg BT 496.76 459.28 Td (Y) Tj ET Q q 0 0 0 rg BT 503.24 459.28 Td (ear) Tj ET Q q 0 0 0 rg BT 516.48 459.28 Td ( Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 444.28 Td (2016 ) Tj ET Q q 0 0 0 rg BT 74.95 444.28 Td (Acquisitions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 444.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.65 444.28 Td (December) Tj ET Q q 0 0 0 rg BT 507.77 444.28 Td ( 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 429.27 Td (Domain ) Tj ET Q q 0 0 0 rg BT 87.44 429.27 Td (Apartments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 429.27 Td (Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 429.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 429.27 Td (4,318) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 414.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 414.27 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 414.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 414.32 Td (\(1,524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 414.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 399.27 Td (Cottonwood Corporate Center) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 399.27 Td (Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 399.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 399.27 Td (7,420) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 384.27 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 384.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 384.32 Td (\(3,339) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 384.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 369.27 Td (Goodyear Crossing II) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 369.27 Td (Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 369.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 369.27 Td (1,918) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 354.27 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 354.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 354.32 Td (\(164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 354.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 326.10 Td (The following unaudited consolidated information is presented to give ef) Tj ET Q q 0 0 0 rg BT 359.69 326.10 Td (fect to the acquisitions completed during the year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.38 314.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.96 314.10 Td ( as if the acquisitions had occurred on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.80 314.10 Td (January1, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.40 314.10 Td (. ) Tj ET Q q 0 0 0 rg BT 379.72 314.10 Td (The pro forma net loss was adjusted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.10 Td (exclude acquisition-related fees and expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.47 302.10 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.37 302.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.74 302.10 Td (year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.33 302.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.83 302.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.41 302.10 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.02 302.10 Td (year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 290.10 Td (December 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 290.10 Td (, the pro forma net loss was adjusted to include acquisition fees and expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.72 290.10 Td ($7.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.61 290.10 Td (, relating to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 278.10 Td ( acquisitions, as if these fees and expenses had been incurred as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.69 278.10 Td (January1, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.28 278.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 254.10 Td (The information below is not necessarily indicative of what the actual results of operations would have been had the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (Company completed this acquisition on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.37 242.10 Td (January1, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.97 242.10 Td (, nor does it purport to represent the Company) Tj ET Q q 0 0 0 rg BT 462.43 242.10 Td (s future operations \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 164.60 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 164.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 164.60 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 164.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 164.60 79.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 164.60000000000002 m 479.5 164.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 164.60000000000002 m 562.5 164.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.25 198.28 Td (For) Tj ET Q q 0 0 0 rg BT 452.71 198.28 Td ( the ) Tj ET Q q 0 0 0 rg BT 470.76 198.28 Td (Y) Tj ET Q q 0 0 0 rg BT 477.24 198.28 Td (ears Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.90 184.28 Td (December) Tj ET Q q 0 0 0 rg BT 495.12 184.28 Td ( 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 169.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.85 169.28 Td (Pr) Tj ET Q q 0 0 0 rg BT 415.31 169.28 Td (o Forma 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.85 169.28 Td (Pr) Tj ET Q q 0 0 0 rg BT 498.22 169.28 Td (o Forma 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 154.27 Td (Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 154.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 154.27 Td (35,616) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 154.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 154.27 Td (34,333) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 139.27 Td (Net income \(loss\) attributable to common stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 139.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.80 139.32 Td (\(8,536) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 139.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 139.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 139.32 Td (\(21,958) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 139.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 179 0 obj <> endobj 180 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (87) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (The table below includes the amounts of revenue and net income \(loss\) of the acquisition completed during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.54 742.10 Td (year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (December 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 730.10 Td (, which are included in the Company) Tj ET Q q 0 0 0 rg BT 278.82 730.10 Td (s consolidated statements of operations and comprehensive income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (\(loss\) for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.60 718.10 Td (year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.18 718.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.68 718.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.27 718.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 656.60 230.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 656.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 656.60 160.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 656.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 656.60 114.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 656.6 m 280.5 656.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 656.6 m 562.5 656.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 656.6 m 562.5 656.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.25 676.28 Td (For) Tj ET Q q 0 0 0 rg BT 478.71 676.28 Td ( the ) Tj ET Q q 0 0 0 rg BT 496.76 676.28 Td (Y) Tj ET Q q 0 0 0 rg BT 503.24 676.28 Td (ear) Tj ET Q q 0 0 0 rg BT 516.48 676.28 Td ( Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 661.28 Td (2015 ) Tj ET Q q 0 0 0 rg BT 74.95 661.28 Td (Acquisition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 661.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.65 661.28 Td (December) Tj ET Q q 0 0 0 rg BT 507.77 661.28 Td ( 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 646.27 Td (Bishop) Tj ET Q q 0 0 0 rg BT 84.39 646.27 Td (s Square) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 646.27 Td (Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 646.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 646.27 Td (6,999) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 631.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 631.27 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 631.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 631.32 Td (\(1,626) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 631.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 603.10 Td (The following unaudited consolidated information is presented to give ef) Tj ET Q q 0 0 0 rg BT 359.69 603.10 Td (fect to the acquisition completed during the year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 591.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.38 591.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.96 591.10 Td ( as if the acquisition had occurred on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.91 591.10 Td (January1, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.51 591.10 Td (. ) Tj ET Q q 0 0 0 rg BT 375.83 591.10 Td (The pro forma net loss was adjusted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 579.10 Td (exclude acquisition-related fees and expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.47 579.10 Td ($5.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.37 579.10 Td ( for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.83 579.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.41 579.10 Td (. For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 567.10 Td (December 31, 2014, the pro forma net loss was adjusted to include acquisition fees and expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.72 567.10 Td ($4.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.61 567.10 Td ( relating to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 555.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 555.10 Td ( acquisition, as if these fees and expenses had been incurred as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.79 555.10 Td (January1, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.39 555.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 531.10 Td (The information below is not necessarily indicative of what the actual results of operations would have been had the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 519.10 Td (Company completed this acquisition on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.37 519.10 Td (January1, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.97 519.10 Td (, nor does it purport to represent the Company) Tj ET Q q 0 0 0 rg BT 462.43 519.10 Td (s future operations \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 507.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 439.60 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 439.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 439.60 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 439.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 439.60 79.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 439.6 m 479.5 439.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 439.6 m 562.5 439.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 439.6 m 479.5 439.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 439.6 m 562.5 439.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.25 474.28 Td (For) Tj ET Q q 0 0 0 rg BT 452.71 474.28 Td ( the ) Tj ET Q q 0 0 0 rg BT 470.76 474.28 Td (Y) Tj ET Q q 0 0 0 rg BT 477.24 474.28 Td (ears Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.90 459.28 Td (December) Tj ET Q q 0 0 0 rg BT 495.12 459.28 Td ( 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 444.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.85 444.28 Td (Pr) Tj ET Q q 0 0 0 rg BT 415.31 444.28 Td (o Forma 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.85 444.28 Td (Pr) Tj ET Q q 0 0 0 rg BT 498.22 444.28 Td (o Forma 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 429.27 Td (Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 429.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 429.27 Td (10,815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 429.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 429.27 Td (8,497) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 414.27 Td (Net income \(loss\) attributable to common stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 414.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.30 414.32 Td (\(939) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 414.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 414.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 414.32 Td (\(4,991) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 414.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (5. DEBT) Tj ET Q q 0 0 0 rg BT 89.55 386.10 Td ( FINANCING) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 362.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 362.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 362.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.47 362.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.47 362.10 Td (, the Company had approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.77 362.10 Td ($379.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.66 362.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.10 362.10 Td ($254.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.99 362.10 Td ( of debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (outstanding, with a weighted average years to maturity of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.71 350.10 Td (3.8 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.81 350.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.25 350.10 Td (4.3 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.35 350.10 Td (, and a weighted average interest rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (2.63%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.83 338.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.27 338.10 Td (2.37%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.10 338.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 173.76 338.10 Td (. ) Tj ET Q q 0 0 0 rg BT 181.08 338.10 Td (The following table describes the Company) Tj ET Q q 0 0 0 rg BT 358.54 338.10 Td (s debt outstanding at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.53 338.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.11 338.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.55 338.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.55 338.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (\(in thousands, except interest rates\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 253.60 92.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 142.50 253.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 146.50 253.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 253.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 201.50 253.60 43.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 244.50 253.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.50 253.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 253.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 253.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 253.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 253.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 253.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 253.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 253.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 253.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 227.60 92.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 142.50 227.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 146.50 227.60 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 227.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 201.50 227.60 43.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 244.50 227.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.50 227.60 48.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 227.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 227.60 68.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 227.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 227.60 61.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 227.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 227.60 58.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 227.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 227.60 63.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 193.60 92.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 142.50 193.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 146.50 193.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 193.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 201.50 193.60 43.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 244.50 193.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.50 193.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 193.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 193.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 193.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 193.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 193.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 193.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 193.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 193.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 167.60 92.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 142.50 167.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 146.50 167.60 51.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 167.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 201.50 167.60 43.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 244.50 167.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.50 167.60 48.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 167.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 167.60 68.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 167.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 167.60 61.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 167.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 167.60 58.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 167.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 167.60 63.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 125.60 147.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 125.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 201.50 125.60 43.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 244.50 125.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.50 125.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 125.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 125.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 125.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 125.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 125.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 125.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 125.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 125.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 99.60 92.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 142.50 99.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 146.50 99.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 99.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 201.50 99.60 43.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 244.50 99.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.50 99.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 99.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 99.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 99.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 99.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 99.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 99.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 99.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 99.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 65.60 147.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 65.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 201.50 65.60 43.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 244.50 65.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.50 65.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 65.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 65.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 65.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 65.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 65.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 65.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 65.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 65.60 63.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 266.6 m 142.5 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146.5 266.6 m 197.5 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 201.5 266.6 m 244.5 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248.5 266.6 m 296.5 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 266.6 m 368.5 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 266.6 m 433.5 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 266.6 m 495.5 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 266.6 m 562.5 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 125.60000000000002 m 495.5 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 112.60000000000002 m 495.5 112.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 125.60000000000002 m 562.5 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 112.60000000000002 m 562.5 112.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 65.60000000000002 m 495.5 65.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 65.60000000000002 m 562.5 65.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 65.60000000000002 m 495.5 65.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 52.60000000000002 m 495.5 52.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 65.60000000000002 m 562.5 65.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 52.60000000000002 m 562.5 52.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 52.60000000000002 m 562.5 52.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 270.83 Td (Description) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 151.45 294.83 Td (Origination) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 167.75 286.83 Td (or) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 151.00 278.83 Td (Assumption) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 163.50 270.83 Td (Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 206.90 278.83 Td (Maturity) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 214.50 270.83 Td (Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 254.20 294.83 Td (Maximum) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 252.30 286.83 Td (Capacity in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.55 278.83 Td (Functional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 255.60 270.83 Td (Curr) Tj ET Q q 0 0 0 rg BT 272.86 270.83 Td (ency) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 311.70 278.83 Td (Inter) Tj ET Q q 0 0 0 rg BT 328.96 278.83 Td (est Rate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 314.20 270.83 Td (Description) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.65 286.83 Td (Inter) Tj ET Q q 0 0 0 rg BT 392.91 286.83 Td (est Rate as) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 380.90 278.83 Td (of December) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.50 270.83 Td (31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.00 270.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.20 294.83 Td (Principal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.30 286.83 Td (Outstanding at) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.75 278.83 Td (December) Tj ET Q q 0 0 0 rg BT 477.32 278.83 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.00 270.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.70 294.83 Td (Principal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.80 286.83 Td (Outstanding at) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.25 278.83 Td (December) Tj ET Q q 0 0 0 rg BT 541.75 278.83 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.50 270.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 257.83 Td (Secur) Tj ET Q q 0 0 0 rg BT 72.41 257.83 Td (ed Mortgage Debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 194.00 257.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 204.00 257.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.00 257.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.00 257.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 440.00 257.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 257.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 244.85 Td (Bishop's Square) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 157.25 244.85 Td (3/3/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.25 244.85 Td (3/2/2022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.00 244.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 271.25 244.85 Td (55,200) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.15 244.85 Td (Euribor + 1.30% ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 358.76 248.48 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.15 244.85 Td (1.30%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 440.00 244.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 244.85 Td (66,124) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 244.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 244.85 Td (58,048) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 231.85 Td (Domain ) Tj ET Q q 0 0 0 rg BT 80.55 231.85 Td (Apartments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 155.25 231.85 Td (1/29/2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 206.25 231.85 Td (1/29/2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.00 231.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 271.25 231.85 Td (34,300) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.50 231.85 Td (Libor + 1.60%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.15 231.85 Td (3.16%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 231.85 Td (34,300) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 231.85 Td (34,300) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 218.85 Td (Cottonwood Corporate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 210.85 Td (Center) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 157.25 210.85 Td (7/5/2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.25 210.85 Td (8/1/2023) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.00 210.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 271.25 210.85 Td (78,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 324.85 210.85 Td (Fixed) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.15 210.85 Td (2.98%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 210.85 Td (75,81) Tj ET Q q 0 0 0 rg BT 488.30 210.85 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 210.85 Td (77,461) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 197.85 Td (Goodyear Crossing II) Tj ET Q BT 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BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 184.85 Td (67,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 184.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 171.85 Td (Rookwood Pavilion) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 157.25 171.85 Td (1/6/2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.25 171.85 Td (7/1/2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.00 171.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 271.25 171.85 Td (29,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 324.85 171.85 Td (Fixed) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.15 171.85 Td (2.87%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 171.85 Td (29,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 171.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 158.85 Td (Montrose Student) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 150.85 Td (Residences) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 155.25 150.85 Td (3/24/2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 206.25 150.85 Td (3/23/2022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.00 150.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 271.25 150.85 Td (22,605) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.15 150.85 Td (Euribor + 1.85% ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 358.76 154.48 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.15 150.85 Td (1.85%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 150.85 Td (27,079) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 150.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 137.85 Td (Queen's Court Student) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 129.85 Td (Residences) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 153.25 129.85 Td (12/18/2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 204.25 129.85 Td (12/18/2022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.00 129.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 271.25 129.85 Td (29,500) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 307.45 129.85 Td (Libor + 2.00%) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 354.40 133.48 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.15 129.85 Td (2.54%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 129.85 Td (39,798) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 129.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 59.00 116.83 Td (Notes Payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 222.50 116.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.50 116.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 440.00 116.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.25 116.85 Td (368,1) Tj ET Q q 0 0 0 rg BT 484.25 116.85 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 116.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 116.85 Td (198,809) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 103.83 Td (Affiliate Note Payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 90.85 Td (Credit Facility with Hines) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 153.25 90.85 Td (12/15/2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 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244.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248.5 710.5 m 296.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 710.5 m 368.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 710.5 m 433.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 710.5 m 495.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 710.5 m 562.5 710.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 714.73 Td (Description) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 151.45 738.73 Td (Origination) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 167.75 730.73 Td (or) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 151.00 722.73 Td (Assumption) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 163.50 714.73 Td (Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 206.90 722.73 Td (Maturity) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 214.50 714.73 Td (Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 254.20 738.73 Td (Maximum) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 252.30 730.73 Td (Capacity in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.55 722.73 Td (Functional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 255.60 714.73 Td (Curr) Tj ET Q q 0 0 0 rg BT 272.86 714.73 Td (ency) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 311.70 722.73 Td (Inter) Tj ET Q q 0 0 0 rg BT 328.96 722.73 Td (est Rate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 314.20 714.73 Td (Description) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.65 730.73 Td (Inter) Tj ET Q q 0 0 0 rg BT 392.91 730.73 Td (est Rate as) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 380.90 722.73 Td (of December) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.50 714.73 Td (31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.00 714.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.20 738.73 Td (Principal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.30 730.73 Td (Outstanding at) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.75 722.73 Td (December) Tj ET Q q 0 0 0 rg BT 477.32 722.73 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.00 714.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.70 738.73 Td (Principal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.80 730.73 Td (Outstanding at) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.25 722.73 Td (December) Tj ET Q q 0 0 0 rg BT 541.75 722.73 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.50 714.73 Td (2016) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 697.50 147.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 697.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 201.50 697.50 43.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 244.50 697.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.50 697.50 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 697.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 697.50 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 697.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 697.50 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 697.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 697.50 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 697.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 697.50 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 671.50 147.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 671.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 201.50 671.50 43.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 244.50 671.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.50 671.50 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 671.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 671.50 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 671.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 671.50 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 671.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 671.50 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 671.50 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 671.50 63.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 711 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 710.5 m 495.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 711 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 710.5 m 562.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 710.5 m 562.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 671.5 m 495.5 671.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 659.5 m 495.5 659.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 657.5 m 495.5 657.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 671.5 m 562.5 671.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 659.5 m 562.5 659.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 657.5 m 562.5 657.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 59.00 701.73 Td (T) Tj ET Q q 0 0 0 rg BT 63.97 701.73 Td (otal Principal Outstanding) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 440.00 701.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.25 701.75 Td (379,312) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 701.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 701.75 Td (254,809) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 688.75 Td (Unamortized discount ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 125.87 692.38 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.60 688.75 Td (\(528) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 688.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 688.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 675.75 Td (Unamortized financing fees ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 143.85 679.38 Td (\(5\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.60 675.75 Td (\(1,932) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 675.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.60 675.75 Td (\(994) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 675.75 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 59.00 662.73 Td (T) Tj ET Q q 0 0 0 rg BT 63.60 662.73 Td (otal) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 440.00 662.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.25 662.75 Td (376,852) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 662.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 662.75 Td (253,815) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 641.00 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 641.00 Td (On the loan origination date, the Company entered into a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.21 641.00 Td (2.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.04 641.00 Td ( Euribor interest rate cap agreement for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.69 641.00 Td (55.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.58 641.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 629.00 Td (\(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.59 629.00 Td ($66.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.48 629.00 Td ( assuming a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.51 629.00 Td ($1.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.01 629.00 Td ( per EUR as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.94 629.00 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.53 629.00 Td (\) as an economic hedge against ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 617.00 Td (the variability of future interest rates on this borrowing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 593.00 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 593.00 Td (On the loan origination date, the Company entered into a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.21 593.00 Td (1.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.04 593.00 Td ( Euribor interest rate cap agreement for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.69 593.00 Td (17.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.58 593.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 581.00 Td (\(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.59 581.00 Td ($20.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.48 581.00 Td ( assuming a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.51 581.00 Td ($1.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.01 581.00 Td ( per EUR as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.94 581.00 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.53 581.00 Td (\) as an economic hedge against ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 569.00 Td (the variability of future interest rates on this borrowing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 545.00 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 545.00 Td (On the loan origination date, the Company entered into a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.21 545.00 Td (2.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.04 545.00 Td ( Libor interest rate cap agreement for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.36 545.00 Td (22.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.25 545.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 533.00 Td (\(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.59 533.00 Td ($29.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.48 533.00 Td ( assuming a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.51 533.00 Td ($1.35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.01 533.00 Td ( per GBP) Tj ET Q q 0 0 0 rg BT 322.86 533.00 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.02 533.00 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.61 533.00 Td (\) as an economic hedge against ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 521.00 Td (the variability of future interest rates on this borrowing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 497.00 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 497.00 Td (The Company assumed notes payable in connection with its acquisition of Rookwood, which were recorded at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 485.00 Td (estimated fair value as of the date of acquisition. ) Tj ET Q q 0 0 0 rg BT 266.92 485.00 Td (The dif) Tj ET Q q 0 0 0 rg BT 295.89 485.00 Td (ference between the fair value at acquisition and the principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 473.00 Td (outstanding is amortized over the term of the related notes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 449.00 Td (\(5\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 449.00 Td (Deferred financing costs consist of direct costs incurred in obtaining debt financing. ) Tj ET Q q 0 0 0 rg BT 408.83 449.00 Td (These costs are presented as a direct ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 437.00 Td (reduction from the related debt liability for permanent mortgages and presented as an asset for revolving credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 425.00 Td (arrangements. In total, deferred financing costs had a carrying value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.21 425.00 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.10 425.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.54 425.00 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.43 425.00 Td ( for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 413.00 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.58 413.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.02 413.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.02 413.00 Td (. ) Tj ET Q q 0 0 0 rg BT 193.34 413.00 Td (These costs are amortized into interest expense on a straight-line basis, which approximates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 401.00 Td (the ef) Tj ET Q q 0 0 0 rg BT 90.30 401.00 Td (fective interest method, over the terms of the obligations. For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.71 401.00 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.30 401.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.30 401.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.30 401.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.73 401.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.73 401.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 389.00 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.89 389.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.89 389.00 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.78 389.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.22 389.00 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.11 389.00 Td ( of deferred financing costs were amortized into interest expense in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 377.00 Td (accompanying consolidated statement of operations, respectively) Tj ET Q q 0 0 0 rg BT 327.82 377.00 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 353.00 Td (Bishop) Tj ET Q q 0 0 0 rg BT 97.82 353.00 Td (s Squar) Tj ET Q q 0 0 0 rg BT 127.73 353.00 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 329.00 Td (In connection with the acquisition of Bishop) Tj ET Q q 0 0 0 rg BT 248.53 329.00 Td (s Square, a wholly-owned subsidiary of the Company entered into a secured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 317.00 Td (facility agreement \(the Bishop) Tj ET Q q 0 0 0 rg BT 178.56 317.00 Td (s Square Facility\) with DekaBank Deutsche Girozentrale totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.26 317.00 Td (55.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 317.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 305.00 Td (\(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.59 305.00 Td ($62.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.48 305.00 Td ( assuming a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.51 305.00 Td ($1.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.01 305.00 Td ( per EUR as of the transaction date\). ) Tj ET Q q 0 0 0 rg BT 418.33 305.00 Td (The Bishop) Tj ET Q q 0 0 0 rg BT 467.50 305.00 Td (s Square Facility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 293.00 Td (requires quarterly interest payments, which commenced in July 2015, and repayment of principal upon the maturity of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 281.00 Td (Bishop) Tj ET Q q 0 0 0 rg BT 81.12 281.00 Td (s Square Facility on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.33 281.00 Td (March2, 2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.93 281.00 Td (. ) Tj ET Q q 0 0 0 rg BT 226.75 281.00 Td (The Bishop's Square Facility has a floating interest rate of Euribor plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.49 281.00 Td (1.30%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.32 281.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 269.00 Td (is subject to an interest rate cap with a strike rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.26 269.00 Td (2.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.09 269.00 Td (. ) Tj ET Q q 0 0 0 rg BT 286.41 269.00 Td (The Bishop) Tj ET Q q 0 0 0 rg BT 335.57 269.00 Td (s Square Facility may be repaid in full prior to maturity) Tj ET Q q 0 0 0 rg BT 556.54 269.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 257.00 Td (subject to a prepayment premium if it is repaid in the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.27 257.00 Td (3 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.87 257.00 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 233.00 Td (Domain ) Tj ET Q q 0 0 0 rg BT 102.54 233.00 Td (Apartments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 209.00 Td (In connection with the acquisition of the Domain ) Tj ET Q q 0 0 0 rg BT 266.29 209.00 Td (Apartments, the Company entered into a loan agreement with ) Tj ET Q q 0 0 0 rg BT 514.92 209.00 Td (W) Tj ET Q q 0 0 0 rg BT 523.56 209.00 Td (ells ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 197.00 Td (Far) Tj ET Q q 0 0 0 rg BT 63.15 197.00 Td (go Bank, National ) Tj ET Q q 0 0 0 rg BT 138.14 197.00 Td (Association \(W) Tj ET Q q 0 0 0 rg BT 204.26 197.00 Td (ells Far) Tj ET Q q 0 0 0 rg BT 233.80 197.00 Td (go\) for a principal sum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.21 197.00 Td ($34.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.10 197.00 Td (. Interest accrued on the loan is due and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 185.00 Td (payable on the first business day of each month from February 2016 through the term of the loan. ) Tj ET Q q 0 0 0 rg BT 444.72 185.00 Td (The loan has a floating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 173.00 Td (interest rate of Libor + ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.11 173.00 Td (1.60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.94 173.00 Td (. Repayment of principal is due upon the maturity of the loan on January29, 2020. ) Tj ET Q q 0 0 0 rg BT 506.74 173.00 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 161.00 Td (Company has the option to extend the term for an additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.55 161.00 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.99 161.00 Td (-year period, subject to the satisfaction of certain conditions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 149.00 Td (The loan may be prepaid at any time on or after July29, 2017, subject to certain conditions, including but not limited to, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 137.00 Td (providing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.39 137.00 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.39 137.00 Td ( days) Tj ET Q q 0 0 0 rg BT 124.80 137.00 Td ( advance notice to ) Tj ET Q q 0 0 0 rg BT 199.59 137.00 Td (W) Tj ET Q q 0 0 0 rg BT 208.23 137.00 Td (ells Far) Tj ET Q q 0 0 0 rg BT 237.76 137.00 Td (go.) Tj ET Q endstream endobj 183 0 obj <> endobj 184 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (89) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (Cottonwood Corporate Center) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (In connection with the acquisition of Cottonwood Corporate Center) Tj ET Q q 0 0 0 rg BT 338.10 718.10 Td (, the Company entered into a loan agreement with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Principal Life Insurance Company \(Principal Life\) for a principal sum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.95 706.10 Td ($78.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.84 706.10 Td (. Principal and interest accrued on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (loan are due and payable on the first day of each month commencing in September 2016. ) Tj ET Q q 0 0 0 rg BT 411.37 694.10 Td (The loan has a fixed interest rate per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (annum equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.15 682.10 Td (2.98%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.98 682.10 Td ( and matures on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.52 682.10 Td (August1, 2023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.91 682.10 Td (. ) Tj ET Q q 0 0 0 rg BT 274.23 682.10 Td (The loan may be prepaid at any time on or after ) Tj ET Q q 0 0 0 rg BT 466.66 682.10 Td (April1, 2023 without ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (penalty) Tj ET Q q 0 0 0 rg BT 78.78 670.10 Td (, subject to certain conditions, including but not limited to providing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.58 670.10 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.58 670.10 Td ( days) Tj ET Q q 0 0 0 rg BT 388.00 670.10 Td ( advance written notice to Principal Life, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (and in the event of prepayment of the loan prior to ) Tj ET Q q 0 0 0 rg BT 253.55 658.10 Td (April1, 2023, the payment of a prepayment penalty) Tj ET Q q 0 0 0 rg BT 460.06 658.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 634.10 Td (Goodyear Cr) Tj ET Q q 0 0 0 rg BT 120.68 634.10 Td (ossing II) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 610.10 Td (In connection with the acquisition of Goodyear Crossing II, the Company entered into a loan agreement with SunT) Tj ET Q q 0 0 0 rg BT 527.54 610.10 Td (rust ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (Bank \(SunT) Tj ET Q q 0 0 0 rg BT 102.70 598.10 Td (rust\) for a principal sum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.10 598.10 Td ($29.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.00 598.10 Td (. Interest accrued on the loan is due and payable on the fifth of each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (month commencing in October 2016. ) Tj ET Q q 0 0 0 rg BT 204.51 586.10 Td (The loan has a floating interest rate of Libor + ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.75 586.10 Td (2.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.58 586.10 Td (. Repayment of principal is due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (upon the maturity of the loan on the earlier of \(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.33 574.10 Td (August18, 2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.72 574.10 Td (, or \(ii\) the date on which the principal amount of the loan has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (been declared or automatically has become due and payable. ) Tj ET Q q 0 0 0 rg BT 297.21 562.10 Td (The loan may be prepaid at any time, in whole or in part, without ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (premium or penalty) Tj ET Q q 0 0 0 rg BT 128.22 550.10 Td (, subject to certain conditions, including but not limited to providing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.01 550.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.00 550.10 Td ( days) Tj ET Q q 0 0 0 rg BT 447.42 550.10 Td ( advance written notice to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (SunT) Tj ET Q q 0 0 0 rg BT 71.32 538.10 Td (rust.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 514.10 Td (Rookwood) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 490.10 Td (In connection with the acquisition of Rookwood, the Company entered into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.38 490.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.38 490.10 Td ( loanassumption and modification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (agreements, with Nationwide Life Insurance Company \(Nationwide\), and with CLP-SPF Rookwood Commons, LLC and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (CLP-SPF Rookwood Pavilion, LLC. Pursuant to the loans, the Company assumed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.61 466.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.61 466.10 Td ( secured mortgage facilities with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (combined original principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.90 454.10 Td ($96.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.80 454.10 Td (. Interest accrued on the unpaid principal balance of the Rookwood ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (Commons and Rookwood Pavilion secured mortgage facilities is due and payable on the first day of each month commencing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (in February 2017. ) Tj ET Q q 0 0 0 rg BT 126.20 430.10 Td (The Rookwood Commons and Rookwood Pavilion secured mortgage facilities have fixedinterest rates of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (3.13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.83 418.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.27 418.10 Td (2.87%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.10 418.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 173.76 418.10 Td (, and mature on July1, 2020. Each secured mortgage facility may be prepaid in full, subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (certain conditions, including but not limited to providing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.69 406.10 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.69 406.10 Td ( days) Tj ET Q q 0 0 0 rg BT 313.11 406.10 Td ( advance written notice to Nationwide.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 382.10 Td (Montr) Tj ET Q q 0 0 0 rg BT 92.63 382.10 Td (ose Student Residences) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 358.10 Td (In connection with the acquisition of the Montrose Student Residences, the Company entered into a secured facility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (agreement \(the Montrose Facility\) with ) Tj ET Q q 0 0 0 rg BT 218.37 346.10 Td (W) Tj ET Q q 0 0 0 rg BT 227.01 346.10 Td (ells Far) Tj ET Q q 0 0 0 rg BT 256.55 346.10 Td (go Bank, National ) Tj ET Q q 0 0 0 rg BT 331.54 346.10 Td (Association London Branch, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.90 346.10 Td (22.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.79 346.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (\(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.59 334.10 Td ($24.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.48 334.10 Td ( assuming a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.51 334.10 Td ($1.08) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.01 334.10 Td ( per EUR as of the date of the agreement\). Commencing on May1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (2017, interest payments are due and payable each quarter and repayment of principal is due upon the maturity of the Montrose ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (Facility on March23, 2022. ) Tj ET Q q 0 0 0 rg BT 166.47 310.10 Td (The Montrose Facility has a floating interest rate of Euribor plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.24 310.10 Td (1.85%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.07 310.10 Td ( through September 2019. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (Commencing in October 2019, the Montrose Facility will have a floating interest rate of Euribor plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.41 298.10 Td (1.85%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.24 298.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.57 298.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.90 298.10 Td (, depending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (upon certain debt yield metrics. ) Tj ET Q q 0 0 0 rg BT 181.17 286.10 Td (The Montrose Facility may be prepaid in full, or in part, subject to a prepayment fee if it is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (prepaid during the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.42 274.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.42 274.10 Td ( years. In addition, pursuant to the terms of the Montrose Facility) Tj ET Q q 0 0 0 rg BT 422.05 274.10 Td (, the Company entered into a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (17.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.89 262.10 Td ( \(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.98 262.10 Td ($20.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.87 262.10 Td ( assuming a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.90 262.10 Td ($1.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.40 262.10 Td ( per EUR as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.33 262.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.92 262.10 Td (\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.75 262.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.29 262.10 Td (-year interest rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (cap agreement, which ef) Tj ET Q q 0 0 0 rg BT 147.54 250.10 Td (fectively caps the Euribor interest rate on the Montrose Facility to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.85 250.10 Td (1.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.68 250.10 Td (, to limit exposure to interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (rate fluctuations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 214.10 Td (Queen) Tj ET Q q 0 0 0 rg BT 96.14 214.10 Td (s Court Student Residences) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 190.10 Td (In connection with the acquisition of the Queen) Tj ET Q q 0 0 0 rg BT 261.00 190.10 Td (s Court Student Residences, the Company entered into a secured facility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (agreement \(the Queen) Tj ET Q q 0 0 0 rg BT 145.50 178.10 Td (s Court Facility\) with ) Tj ET Q q 0 0 0 rg BT 238.09 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 246.73 178.10 Td (ells Far) Tj ET Q q 0 0 0 rg BT 276.26 178.10 Td (go Bank, National ) Tj ET Q q 0 0 0 rg BT 351.25 178.10 Td (Association London Branch, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.62 178.10 Td (29.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.51 178.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (\(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.59 166.10 Td ($39.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.48 166.10 Td ( assuming a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.51 166.10 Td ($1.34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.01 166.10 Td ( per GBP) Tj ET Q q 0 0 0 rg BT 304.86 166.10 Td ( as of the date of the agreement\). Commencing on May1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (2018, interest payments are due and payable each quarter and repayment of principal is due upon the maturity of the Queen) Tj ET Q q 0 0 0 rg BT 546.21 154.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (Court Facility on December18, 2022. ) Tj ET Q q 0 0 0 rg BT 206.73 142.10 Td (The Queen) Tj ET Q q 0 0 0 rg BT 253.66 142.10 Td (s Court Facility has a floating interest rate of Libor plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.89 142.10 Td (2.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.72 142.10 Td (. ) Tj ET Q q 0 0 0 rg BT 512.04 142.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (Queen) Tj ET Q q 0 0 0 rg BT 78.88 130.10 Td (s Court Facility may be prepaid in full, or in part, subject to a prepayment fee if it is prepaid during the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.26 130.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.26 130.10 Td ( years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (In addition, pursuant to the terms of the Queen) Tj ET Q q 0 0 0 rg BT 239.68 118.10 Td (s Court Facility) Tj ET Q q 0 0 0 rg BT 301.25 118.10 Td (, the Company entered into a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.27 118.10 Td (22.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.16 118.10 Td ( \(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.25 118.10 Td ($29.8 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 106.10 Td ( assuming a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.92 106.10 Td ($1.35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.42 106.10 Td ( per GBP) Tj ET Q q 0 0 0 rg BT 216.27 106.10 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.43 106.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.02 106.10 Td (\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.85 106.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.83 106.10 Td (-year interest rate cap agreement, which ef) Tj ET Q q 0 0 0 rg BT 514.83 106.10 Td (fectively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (caps the Libor interest rate on the Queen) Tj ET Q q 0 0 0 rg BT 215.21 94.10 Td (s Court Facility to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.21 94.10 Td (2.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.04 94.10 Td (, to limit exposure to interest rate fluctuations.) Tj ET Q endstream endobj 185 0 obj <> endobj 186 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (90) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (Hines Cr) Tj ET Q q 0 0 0 rg BT 104.02 742.10 Td (edit Facility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.72 718.10 Td (December15, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.31 718.10 Td (, the Company entered into a credit facility with Hines \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.01 718.10 Td (Hines Credit Facility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.88 718.10 Td (\) with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (maximum principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.42 706.10 Td ($75.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.31 706.10 Td ( with interest and payment terms similar to the Restated Hines Credit Facility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (described below) Tj ET Q q 0 0 0 rg BT 114.60 694.10 Td (. ) Tj ET Q q 0 0 0 rg BT 121.92 694.10 Td (The Hines Credit Facility had a maturity date of December 15, 2017. ) Tj ET Q q 0 0 0 rg BT 402.50 694.10 Td (The Company terminated the Hines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (Credit Facility on October 2, 2017 and subsequently the Operating Partnership entered into the Restated Hines Credit Facility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (with Hines on October 2, 2017 which is described below) Tj ET Q q 0 0 0 rg BT 276.53 670.10 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 646.10 Td (Restated Hines Cr) Tj ET Q q 0 0 0 rg BT 140.95 646.10 Td (edit Facility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 622.10 Td (On October 2, 2017, the Operating Partnership entered into an uncommitted loan agreement with Hines for a maximum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.37 610.10 Td ($240.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.26 610.10 Td ( which was subsequently amended on November 30, 2017 to reduce the maximum principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (amount to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.77 598.10 Td ($75.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.67 598.10 Td ( \(the Restated Hines Credit Facility\). Interest on each advance under the Restated Hines Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (Facility is char) Tj ET Q q 0 0 0 rg BT 109.25 586.10 Td (ged monthly at a variable rate, which is \(i\) Hines) Tj ET Q q 0 0 0 rg BT 307.33 586.10 Td ( then-current borrowing rate under its revolving credit facility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (or \(ii\) if the Operating Partnership enters into a revolving credit facility \(the OP) Tj ET Q q 0 0 0 rg BT 372.58 574.10 Td ( Facility\), the rate under such facility) Tj ET Q q 0 0 0 rg BT 524.38 574.10 Td (. Each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (advance under the Restated Hines Credit Facility must be repaid within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.98 562.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.65 562.10 Td ( months, subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.70 562.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.14 562.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.64 562.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.31 562.10 Td (-month extension at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (option of the Operating Partnership and subject to the satisfaction of certain conditions. ) Tj ET Q q 0 0 0 rg BT 401.95 550.10 Td (The Restated Hines Credit Facility will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (terminate on the earlier of \(a\) the termination of the availability period as determined by Hines at its discretion \(which will not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (impact the maturity date of any outstanding or previously approved advance under the loan agreement\); \(b\) December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (2018; and \(c\) the date Hines accelerates the repayment of the loan agreement pursuant to any event of default. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 490.10 Td (Notwithstanding that each advance under the Restated Hines Credit Facility matures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.18 490.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.85 490.10 Td ( months after it is made, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (Operating Partnership is required to repay each advance with any capital raised, unless the Operating Partnership enters into a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (revolving credit facility) Tj ET Q q 0 0 0 rg BT 143.76 466.10 Td (, at which point the Operating Partnership may use such proceeds from its public of) Tj ET Q q 0 0 0 rg BT 477.67 466.10 Td (fering to repay the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (OP) Tj ET Q q 0 0 0 rg BT 62.41 454.10 Td ( Facility) Tj ET Q q 0 0 0 rg BT 94.81 454.10 Td (, if any) Tj ET Q q 0 0 0 rg BT 122.21 454.10 Td (, prior to repaying any advances under the Restated Hines Credit Facility) Tj ET Q q 0 0 0 rg BT 413.14 454.10 Td (. ) Tj ET Q q 0 0 0 rg BT 417.96 454.10 Td (The Restated Hines Credit Facility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (also permits voluntary prepayment of principal and accrued interest.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 418.10 Td (The Restated Hines Credit Facility requires the maintenance of certain financial covenants beginning the earlier of \(a\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (September 30, 2018 or \(b\) the ef) Tj ET Q q 0 0 0 rg BT 180.06 406.10 Td (fective date of the OP) Tj ET Q q 0 0 0 rg BT 266.88 406.10 Td ( Facility) Tj ET Q q 0 0 0 rg BT 299.28 406.10 Td (, if any) Tj ET Q q 0 0 0 rg BT 326.67 406.10 Td (, which includes covenants concerning indebtedness to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (total asset value. In addition, the Restated Hines Credit Facility contains customary af) Tj ET Q q 0 0 0 rg BT 393.07 394.10 Td (firmative and negative covenants, which, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (among other things, prohibit the Company and the Operating Partnership from: \(i\) mer) Tj ET Q q 0 0 0 rg BT 396.69 382.10 Td (ging with other companies or changing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (ownership interest; \(ii\) selling all or substantially all of the Company) Tj ET Q q 0 0 0 rg BT 328.84 370.10 Td (s assets or properties; and \(iii\) if in default under the loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (agreement, paying distributions to the Company) Tj ET Q q 0 0 0 rg BT 245.52 358.10 Td (s stockholders other than as required to maintain the Company) Tj ET Q q 0 0 0 rg BT 498.52 358.10 Td (s status as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (real estate investment trust. ) Tj ET Q q 0 0 0 rg BT 161.73 346.10 Td (The Restated Hines Credit Facility also requires the Company to deliver to Hines certain quarterly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (and annual financial information.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 310.10 Td (For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.19 310.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.78 310.10 Td (, the Company borrowed an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.83 310.10 Td ($58.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.72 310.10 Td ( under the Hines Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (Facility and Restated Hines Credit Facility and made payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.05 298.10 Td ($103.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.94 298.10 Td ( on these facilities, resulting in an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.13 298.10 Td ($1) Tj ET Q q 0 0 0 rg BT 521.76 298.10 Td (1.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 286.10 Td ( outstanding balance under the Restated Hines Credit Facility as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.54 286.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.13 286.10 Td (. From ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 286.10 Td (January 1, 2018 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (March 27, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.60 274.10 Td (, the Company made ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.86 274.10 Td ($15.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.75 274.10 Td ( in additional draws and made ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.49 274.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.49 274.10 Td ( additional payments under the Restated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (Hines Credit Facility) Tj ET Q q 0 0 0 rg BT 133.23 262.10 Td (, which resulted in the Company having a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.36 262.10 Td ($26.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.25 262.10 Td ( outstanding balance under the Restated Hines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (Credit Facility as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.21 250.10 Td (March29, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.81 250.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 226.10 Td (Financial Covenants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 202.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 127.71 202.10 Td (s mortgage and other loan documents for the debt described in the table above contain customary events of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (default, with corresponding grace periods, including payment defaults, bankruptcy-related defaults, and customary covenants, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (including limitations on liens and indebtedness and maintenance of certain financial ratios. ) Tj ET Q q 0 0 0 rg BT 418.05 178.10 Td (The Company is not aware of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (instances of noncompliance with financial covenants as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.48 166.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.06 166.10 Td (.) Tj ET Q endstream endobj 187 0 obj <> endobj 188 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (91) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (Principal Payments on Debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (The Companyis requiredto make the following principal payments on its outstanding notes payable for each of the years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (ending December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.30 706.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.30 706.10 Td ( through December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.99 706.10 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.99 706.10 Td ( and for the period thereafter \(in thousands\).) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 654.60 164.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 214.50 654.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 654.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 654.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 654.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 654.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 654.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 654.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 654.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 654.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 654.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 654.60 62.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214.5 668.6 m 266.5 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266.5 668.6 m 270.5 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 668.6 m 322.5 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 668.6 m 326.5 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 668.6 m 378.5 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378.5 668.6 m 382.5 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 668.6 m 434.5 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 668.6 m 438.5 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 668.6 m 496.5 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 668.6 m 500.5 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 668.6 m 562.5 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214.5 654.6 m 266.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 654.6 m 322.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 654.6 m 378.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 654.6 m 434.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 654.6 m 496.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 654.6 m 562.5 654.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 673.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.80 673.28 Td (Payments Due by ) Tj ET Q q 0 0 0 rg BT 416.56 673.28 Td (Y) Tj ET Q q 0 0 0 rg BT 423.04 673.28 Td (ear) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 659.28 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.00 659.28 Td (2018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 286.00 659.28 Td (2019) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.00 659.28 Td (2020) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.00 659.28 Td (2021) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.00 659.28 Td (2022) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 508.10 659.28 Td (Ther) Tj ET Q q 0 0 0 rg BT 529.03 659.28 Td (eafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 644.27 Td (Principal payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 644.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.15 644.27 Td (12,900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.00 644.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.15 644.27 Td (1,751) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 644.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.10 644.27 Td (132,104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.00 644.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 644.27 Td (30,859) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.00 644.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 644.27 Td (134,916) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 644.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 644.27 Td (66,782) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 616.10 Td (6. DERIV) Tj ET Q q 0 0 0 rg BT 92.94 616.10 Td (A) Tj ET Q q 0 0 0 rg BT 99.42 616.10 Td (TIVE INSTRUMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 592.10 Td (The Company entered into several interest rate cap contracts in connection with certain of its secured mortgage loans in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 580.10 Td (order to limit its exposure against the variability of future interest rates on one of its variable interest rate borrowings.) Tj ET Q q 0 0 0 rg BT 524.18 580.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 568.10 Td (s interest rate cap agreements have economically limited the interest rate on the loan to which they relate.) Tj ET Q q 0 0 0 rg BT 517.48 568.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 556.10 Td (Company has not designated this derivative as a hedge for accounting purposes. ) Tj ET Q q 0 0 0 rg BT 374.24 556.10 Td (The Company has not entered into a master ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.10 Td (netting arrangement with its third-party counterparty and does not of) Tj ET Q q 0 0 0 rg BT 323.96 544.10 Td (fset on its consolidated balance sheets the fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.10 Td (amount recorded for its derivative instrument. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 508.10 Td (The Company has also entered into foreign currency forward contracts as economic hedges against the variability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.10 Td (foreign exchange rates related to our international investments. ) Tj ET Q q 0 0 0 rg BT 303.95 496.10 Td (These forward contracts economically fixed the currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.10 Td (exchange rates on each of the investments to which they related. ) Tj ET Q q 0 0 0 rg BT 309.22 484.10 Td (The Company did not designate any of these contracts as fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 472.10 Td (value or cash flow hedges for accounting purposes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 448.10 Td (The table below provides additional information regarding the Company) Tj ET Q q 0 0 0 rg BT 360.76 448.10 Td (s interest rate contracts \(in thousands, except ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 436.10 Td (percentages\).) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 374.60 88.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 138.00 374.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 142.00 374.60 103.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.00 374.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.00 374.60 103.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.00 374.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 374.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 374.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 374.60 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 374.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 374.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 344.60 88.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 138.00 344.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 142.00 344.60 103.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.00 344.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.00 344.60 103.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.00 344.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 344.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 344.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 344.60 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 344.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 344.60 58.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 398.6 m 138 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 138 398.6 m 142 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 142 398.6 m 245 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 374.6 m 138 374.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 142 374.6 m 245 374.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 374.6 m 352 374.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 374.6 m 414 374.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 374.6 m 501 374.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 374.6 m 563 374.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 403.28 Td (Inter) Tj ET Q q 0 0 0 rg BT 74.07 403.28 Td (est Rate Contracts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 251.50 403.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.50 403.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.50 403.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 403.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 379.28 Td (T) Tj ET Q q 0 0 0 rg BT 58.43 379.28 Td (ype) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 162.85 379.28 Td (Effective Date) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 379.28 Td (Expiration Date) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.15 389.28 Td (Notional ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.95 379.28 Td (Amount ) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 399.45 383.81 Td (\(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 389.28 Td (Inter) Tj ET Q q 0 0 0 rg BT 452.72 389.28 Td (est Rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.80 379.28 Td (Received) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 511.55 389.28 Td (Pay Rate /) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 509.20 379.28 Td (Strike Rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 364.27 Td (Interest rate cap) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.70 364.27 Td (March 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.65 364.27 Td (April 25, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.50 364.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 364.27 Td (66,124) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.70 364.27 Td (Euribor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 364.27 Td (2.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 364.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 349.27 Td (Interest rate cap) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.20 349.27 Td (March 24, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.20 349.27 Td (March 23, 2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.50 349.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 349.27 Td (20,309) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.70 349.27 Td (Euribor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 349.27 Td (1.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 349.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 334.27 Td (Interest rate cap) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.70 334.27 Td (December 20, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.70 334.27 Td (December 20, 2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.50 334.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 334.27 Td (29,849) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.85 334.27 Td (Libor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 334.27 Td (2.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 334.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.90 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 310.90 Td (For notional amounts denominated in a foreign currency) Tj ET Q q 0 0 0 rg BT 292.62 310.90 Td (, amounts have been translated at a rate based on the rate in ef) Tj ET Q q 0 0 0 rg BT 540.11 310.90 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 298.90 Td (on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.00 298.90 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.58 298.90 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 274.90 Td (The table below presents the ef) Tj ET Q q 0 0 0 rg BT 191.99 274.90 Td (fects of the changes in fair value of the Company) Tj ET Q q 0 0 0 rg BT 391.65 274.90 Td (s derivative instrument in the Company) Tj ET Q q 0 0 0 rg BT 552.45 274.90 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.90 Td (consolidated statements of operations and comprehensive income \(loss\) for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.72 262.90 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.30 262.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.74 262.90 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.74 262.90 Td ( \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.90 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 171.40 289.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 171.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 171.40 108.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 171.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 171.40 108.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 142.40 289.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 142.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 142.40 108.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 142.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 142.40 108.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 214.39999999999998 m 451 214.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451 214.39999999999998 m 455 214.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 214.39999999999998 m 563 214.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 200.39999999999998 m 451 200.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451 200.39999999999998 m 455 200.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 200.39999999999998 m 563 200.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 186.39999999999998 m 451 186.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 186.39999999999998 m 563 186.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 142.39999999999998 m 451 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 128.39999999999998 m 451 128.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 126.39999999999998 m 451 126.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 142.39999999999998 m 563 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 128.39999999999998 m 563 128.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 126.39999999999998 m 563 126.39999999999998 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.45 219.08 Td (Gain \(Loss\) Recorded on Derivative Instruments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 427.40 205.08 Td (Y) Tj ET Q q 0 0 0 rg BT 434.07 205.08 Td (ear) Tj ET Q q 0 0 0 rg BT 447.30 205.08 Td ( Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 52.50 189.12 Td () Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 341.50 189.12 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 356.15 191.08 Td (December) Tj ET Q q 0 0 0 rg BT 399.37 191.08 Td ( 31, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.50 191.08 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.15 191.08 Td (December) Tj ET Q q 0 0 0 rg BT 511.27 191.08 Td ( 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 176.07 Td (Derivatives not designated as hedging instruments:) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 341.50 174.16 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 453.50 174.16 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 161.07 Td ( Interest rate caps) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 161.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.80 161.12 Td (\(134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 161.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.50 161.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 161.12 Td (\(6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 161.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 146.97 Td ( Foreign currency forward contracts) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 341.50 145.16 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.80 147.02 Td (\(238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 146.97 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 146.97 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 132.07 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 132.07 Td (otal gain \(loss\) on derivatives) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 341.50 130.16 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 132.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.80 132.12 Td (\(372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 132.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.50 132.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 132.12 Td (\(6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 132.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 103.90 Td (7.ST) Tj ET Q q 0 0 0 rg BT 74.55 103.90 Td (OCKHOLDERS) Tj ET Q q 0 0 0 rg BT 148.82 103.90 Td ( ) Tj ET Q q 0 0 0 rg BT 151.32 103.90 Td (EQUITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 79.90 Td (As described more fully in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.14 79.90 Td (Item 1.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.47 79.90 Td ( Business, the Company raises capital for its investments through public of) Tj ET Q q 0 0 0 rg BT 504.68 79.90 Td (ferings of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 67.90 Td (common stock. In connection with the Restructuring and the Follow-On Of) Tj ET Q q 0 0 0 rg BT 353.65 67.90 Td (fering, on November 30, 2017, the Company \(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 55.90 Td (redesignated its issued and outstanding Class ) Tj ET Q q 0 0 0 rg BT 232.20 55.90 Td (A) Tj ET Q q 0 0 0 rg BT 238.87 55.90 Td ( shares of common stock, Class ) Tj ET Q q 0 0 0 rg BT 367.29 55.90 Td (T) Tj ET Q q 0 0 0 rg BT 373.21 55.90 Td ( shares of common stock, Class I shares of ) Tj ET Q endstream endobj 189 0 obj <> endobj 190 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (common stock and Class J shares of common stock as Class ) Tj ET Q q 0 0 0 rg BT 296.91 742.10 Td (AX shares, Class ) Tj ET Q q 0 0 0 rg BT 376.71 742.10 Td (TX shares, Class IX shares and Class JX ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (shares, \(collectively) Tj ET Q q 0 0 0 rg BT 133.75 730.10 Td (, the IPO Shares\) respectively) Tj ET Q q 0 0 0 rg BT 261.11 730.10 Td (, and \(ii\) reclassified the authorized but unissued portion of its common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (stock into four additional classes of shares of common stock: Class ) Tj ET Q q 0 0 0 rg BT 325.04 718.10 Td (T) Tj ET Q q 0 0 0 rg BT 330.97 718.10 Td ( shares, Class S shares, Class D shares, and Class I ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (shares. ) Tj ET Q q 0 0 0 rg BT 86.75 706.10 Td (The Company is of) Tj ET Q q 0 0 0 rg BT 163.50 706.10 Td (fering its shares of common stock in the Follow-on Of) Tj ET Q q 0 0 0 rg BT 380.79 706.10 Td (fering in any combination of Class ) Tj ET Q q 0 0 0 rg BT 521.69 706.10 Td (T) Tj ET Q q 0 0 0 rg BT 527.62 706.10 Td ( shares, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (Class S shares, Class D shares and Class I shares \(collectively) Tj ET Q q 0 0 0 rg BT 297.36 694.10 Td (, the Follow-on Of) Tj ET Q q 0 0 0 rg BT 376.05 694.10 Td (fering Shares\). ) Tj ET Q q 0 0 0 rg BT 443.81 694.10 Td (All shares of the Company) Tj ET Q q 0 0 0 rg BT 553.79 694.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (common stock have the same voting rights and rights upon liquidation, although distributions received by the Company) Tj ET Q q 0 0 0 rg BT 531.87 682.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (stockholders are expected to dif) Tj ET Q q 0 0 0 rg BT 176.99 670.10 Td (fer due to the distribution and stockholder servicing fees payable with respect to the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (share classes, which reduce distributions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 634.10 Td (The Company complies with the Financial ) Tj ET Q q 0 0 0 rg BT 240.19 634.10 Td (Accounting Standards Board \(F) Tj ET Q q 0 0 0 rg BT 370.81 634.10 Td (ASB\) ) Tj ET Q q 0 0 0 rg BT 399.98 634.10 Td (Accounting Standards Codification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (\(ASC or the Codification\) 480 Distinguishing Liabilities from Equity which requires, among other things, that financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (instruments that represent a mandatory obligation of the Company to repurchase shares be classified as liabilities and reported ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (at settlement value. ) Tj ET Q q 0 0 0 rg BT 132.29 598.10 Td (When shares are tendered for redemption and approved by the board of directors, the Company will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (reclassify such obligations from equity to an accrued liability based upon their respective settlement values and redeem those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (shares in the subsequent month pursuant to the Company) Tj ET Q q 0 0 0 rg BT 281.08 574.10 Td (s current share redemption program.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 550.10 Td (Common Stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.44 526.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.03 526.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.47 526.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.47 526.10 Td (, the Company had the following classes of shares of common stock authorized, issued and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (outstanding \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 468.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 468.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 468.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 468.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 468.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 468.60 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 468.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 468.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.50 468.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 468.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 468.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 468.60 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 442.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 442.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 442.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 442.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 442.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 442.60 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 442.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 442.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.50 442.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 442.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 442.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 442.60 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 416.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 416.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 416.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 416.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 416.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 416.60 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 416.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 416.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.50 416.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 416.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 416.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 416.60 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 390.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.50 390.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 390.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 390.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.50 390.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 390.60 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 390.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 390.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.50 390.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 390.60 48.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 390.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 390.60 52.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246.5 490.6 m 294.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 490.6 m 298.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 490.6 m 346.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 490.6 m 350.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 490.6 m 402.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 490.6 m 454.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 490.6 m 458.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 490.6 m 506.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 490.6 m 510.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 490.6 m 562.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 490.6 m 454.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 490.6 m 458.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 490.6 m 506.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 490.6 m 510.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 490.6 m 562.5 490.6 l s BT /F2 8.50 Tf ET q 0 0 0 rg BT 289.70 494.94 Td (December) Tj ET Q q 0 0 0 rg BT 326.43 494.94 Td ( 31, 2017) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 449.70 494.94 Td (December) Tj ET Q q 0 0 0 rg BT 486.43 494.94 Td ( 31, 2016) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 257.75 481.44 Td (Shar) Tj ET Q q 0 0 0 rg BT 275.15 481.44 Td (es) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 249.45 472.94 Td (Authorized) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 309.75 481.44 Td (Shar) Tj ET Q q 0 0 0 rg BT 327.15 481.44 Td (es) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 310.40 472.94 Td (Issued) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 363.75 481.44 Td (Shar) Tj ET Q q 0 0 0 rg BT 381.15 481.44 Td (es) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 353.30 472.94 Td (Outstanding) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 417.75 481.44 Td (Shar) Tj ET Q q 0 0 0 rg BT 435.15 481.44 Td (es) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 409.45 472.94 Td (Authorized) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 469.75 481.44 Td (Shar) Tj ET Q q 0 0 0 rg BT 487.15 481.44 Td (es) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 470.40 472.94 Td (Issued) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 523.75 481.44 Td (Shar) Tj ET Q q 0 0 0 rg BT 541.07 481.44 Td (es) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 513.30 472.94 Td (Outstanding) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 53.00 459.96 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.31 459.96 Td (AX common stock, $0.001 par value per share) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 258.30 459.96 Td (40,000) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 310.30 459.96 Td (19,206) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 364.30 459.96 Td (19,206) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 416.15 459.96 Td (600,000) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 470.30 459.96 Td (16,469) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 524.30 459.96 Td (16,469) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 53.00 446.96 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.47 446.96 Td (TX common stock, $0.001 par value per share) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 258.30 446.96 Td (40,000) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 310.30 446.96 Td (19,958) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 364.30 446.96 Td (19,958) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 416.15 446.96 Td (900,000) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 470.30 446.96 Td (10,074) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 524.30 446.96 Td (10,074) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 53.00 433.96 Td (Class IX common stock, $0.001 par value per share) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 258.30 433.96 Td (10,000) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 317.75 433.96 Td (92) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.75 433.96 Td (92) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 425.75 433.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 477.75 433.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 531.75 433.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 53.00 420.96 Td (Class JX common stock, $0.001 par value per share) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 258.30 420.96 Td (10,000) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 317.75 420.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.75 420.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 425.75 420.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 477.75 420.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 531.75 420.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 53.00 407.96 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.47 407.96 Td (T) Tj ET Q q 0 0 0 rg BT 78.51 407.96 Td ( common stock, $0.001 par value per share) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 256.15 407.96 Td (350,000) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 317.75 407.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.75 407.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 425.75 407.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 477.75 407.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 531.75 407.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 53.00 394.96 Td (Class S common stock, $0.001 par value per share) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 256.15 394.96 Td (350,000) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 317.75 394.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.75 394.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 425.75 394.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 477.75 394.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 531.75 394.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 53.00 381.96 Td (Class D common stock, $0.001 par value per share) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 256.15 381.96 Td (350,000) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 317.75 381.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.75 381.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 425.75 381.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 477.75 381.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 531.75 381.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 53.00 368.96 Td (Class I common stock, $0.001 par value per share) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 256.15 368.96 Td (350,000) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 317.75 368.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 371.75 368.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 425.75 368.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 477.75 368.96 Td () Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 531.75 368.96 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 341.10 Td (The tables below provide information regarding the issuances and redemptions of each class of shares of the Company) Tj ET Q q 0 0 0 rg BT 545.36 341.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 329.10 Td (common stock during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.43 329.10 Td (year ended December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.10 329.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.10 329.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.10 329.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.54 329.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.54 329.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 292.60 136.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 186.50 292.60 33.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.50 292.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.50 292.60 35.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 292.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 292.60 33.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.50 292.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.50 292.60 35.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 292.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 292.60 33.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 292.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 292.60 35.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.50 292.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 292.60 33.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 292.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 292.60 35.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 292.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 292.60 33.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 292.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 292.60 35.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 266.60 136.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 186.50 266.60 33.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.50 266.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.50 266.60 35.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 266.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.50 266.60 33.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.50 266.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.50 266.60 35.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 266.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 266.60 33.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 266.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 266.60 35.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.50 266.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 266.60 33.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 266.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 266.60 35.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 266.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 266.60 33.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.50 266.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.50 266.60 35.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 305.6 m 219.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219.5 305.6 m 223.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223.5 305.6 m 258.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 305.6 m 295.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295.5 305.6 m 299.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299.5 305.6 m 334.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 305.6 m 371.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 305.6 m 375.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 305.6 m 410.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 305.6 m 447.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 305.6 m 451.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 305.6 m 486.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 305.6 m 523.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 523.5 305.6 m 527.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 527.5 305.6 m 562.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 292.6 m 219.5 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223.5 292.6 m 258.5 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 292.6 m 295.5 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299.5 292.6 m 334.5 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 292.6 m 371.5 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 292.6 m 410.5 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 292.6 m 447.5 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 292.6 m 486.5 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 292.6 m 523.5 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 527.5 292.6 m 562.5 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 292.6 m 219.5 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 253.60000000000002 m 219.5 253.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 241.60000000000002 m 219.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 239.60000000000002 m 219.5 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223.5 253.60000000000002 m 258.5 253.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223.5 241.60000000000002 m 258.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223.5 239.60000000000002 m 258.5 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 253.60000000000002 m 295.5 253.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 241.60000000000002 m 295.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262.5 239.60000000000002 m 295.5 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299.5 253.60000000000002 m 334.5 253.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299.5 241.60000000000002 m 334.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299.5 239.60000000000002 m 334.5 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 253.60000000000002 m 371.5 253.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 241.60000000000002 m 371.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 239.60000000000002 m 371.5 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 253.60000000000002 m 410.5 253.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 241.60000000000002 m 410.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 239.60000000000002 m 410.5 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 253.60000000000002 m 447.5 253.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 241.60000000000002 m 447.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 239.60000000000002 m 447.5 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 253.60000000000002 m 486.5 253.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 241.60000000000002 m 486.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 239.60000000000002 m 486.5 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 253.60000000000002 m 523.5 253.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 241.60000000000002 m 523.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 239.60000000000002 m 523.5 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 527.5 253.60000000000002 m 562.5 253.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 527.5 241.60000000000002 m 562.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 527.5 239.60000000000002 m 562.5 239.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 206.30 309.83 Td (Class ) Tj ET Q q 0 0 0 rg BT 226.31 309.83 Td (AX) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.40 309.83 Td (Class ) Tj ET Q q 0 0 0 rg BT 302.55 309.83 Td (TX) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.40 309.83 Td (Class IX) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.95 309.83 Td (Class JX) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.25 309.83 Td (T) Tj ET Q q 0 0 0 rg BT 522.22 309.83 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 191.00 296.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 207.38 296.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 226.45 296.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 267.00 296.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 283.38 296.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 302.45 296.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.00 296.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 359.38 296.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.45 296.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.00 296.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 435.38 296.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.45 296.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.00 296.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 511.38 296.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.45 296.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 283.83 Td (Balance as of January 1, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 194.30 283.85 Td (16,469) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.00 283.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 247.30 283.85 Td (16) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.30 283.85 Td (10,074) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.00 283.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.30 283.85 Td (10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.30 283.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.00 283.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.30 283.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.30 283.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.00 283.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.30 283.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.30 283.85 Td (26,543) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 530.00 283.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 283.85 Td (26) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 270.85 Td (Issuance of common shares) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 198.30 270.85 Td (3,874) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.30 270.85 Td (4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.30 270.85 Td (10,841) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.30 270.85 Td (1) Tj ET Q q 0 0 0 rg BT 327.30 270.85 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.30 270.85 Td (92) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.30 270.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.30 270.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.30 270.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.30 270.85 Td (14,807) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 270.85 Td (15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 257.85 Td (Redemption of common shares ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 154.76 261.48 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 195.60 257.85 Td (\(1,137) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 216.30 257.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.60 257.85 Td (\(1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.30 257.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 277.60 257.85 Td (\(957) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 292.30 257.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 324.60 257.85 Td (\(1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.30 257.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.30 257.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.30 257.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.30 257.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.30 257.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.60 257.85 Td (\(2,094) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 520.30 257.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.60 257.85 Td (\(2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 257.85 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 244.83 Td (Balance as of December) Tj ET Q q 0 0 0 rg BT 134.39 244.83 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 194.30 244.85 Td (19,206) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.00 244.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 247.30 244.85 Td (19) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.30 244.85 Td (19,958) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.00 244.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.30 244.85 Td (20) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.30 244.85 Td (92) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.00 244.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.30 244.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.30 244.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.00 244.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.30 244.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.30 244.85 Td (39,256) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 530.00 244.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 244.85 Td (39) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 217.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 217.10 Td (Prior to the commencement of our Follow-on Of) Tj ET Q q 0 0 0 rg BT 262.50 217.10 Td (fering, in October 2017, the Company commenced a self-tender of) Tj ET Q q 0 0 0 rg BT 528.62 217.10 Td (fer for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 205.10 Td (up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.78 205.10 Td ($200.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.67 205.10 Td ( in IPO Shares at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.19 205.10 Td ($9.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.69 205.10 Td ( per share. ) Tj ET Q q 0 0 0 rg BT 328.88 205.10 Td (The Company redeemed a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.72 205.10 Td (1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.61 205.10 Td ( IPO Shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 193.10 Td (for an aggregate cost of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.90 193.10 Td ($18.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.79 193.10 Td ( in November 2017 in connection with the Company) Tj ET Q q 0 0 0 rg BT 432.09 193.10 Td (s self-tender of) Tj ET Q q 0 0 0 rg BT 491.88 193.10 Td (fer) Tj ET Q q 0 0 0 rg BT 502.43 193.10 Td (. ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 144.60 126.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.50 144.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 144.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 240.50 144.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 144.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 144.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 144.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 144.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 144.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 144.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 144.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 144.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 118.60 126.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.50 118.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 118.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 240.50 118.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 118.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 118.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 118.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 118.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 118.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 118.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 118.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 118.60 61.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175.5 157.60000000000002 m 236.5 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 157.60000000000002 m 240.5 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 157.60000000000002 m 301.5 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 157.60000000000002 m 366.5 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 157.60000000000002 m 370.5 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 157.60000000000002 m 431.5 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 157.60000000000002 m 496.5 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 157.60000000000002 m 500.5 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 157.60000000000002 m 561.5 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175.5 144.60000000000002 m 236.5 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 144.60000000000002 m 301.5 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 144.60000000000002 m 366.5 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 144.60000000000002 m 431.5 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 157.60000000000002 m 496.5 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 144.60000000000002 m 496.5 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175.5 144.60000000000002 m 236.5 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 144.60000000000002 m 301.5 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 144.60000000000002 m 366.5 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 144.60000000000002 m 431.5 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 144.60000000000002 m 561.5 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175.5 105.60000000000002 m 236.5 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175.5 93.60000000000002 m 236.5 93.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175.5 91.60000000000002 m 236.5 91.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 105.60000000000002 m 301.5 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 93.60000000000002 m 301.5 93.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 91.60000000000002 m 301.5 91.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 105.60000000000002 m 366.5 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 93.60000000000002 m 366.5 93.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 91.60000000000002 m 366.5 91.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 105.60000000000002 m 431.5 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 93.60000000000002 m 431.5 93.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 91.60000000000002 m 431.5 91.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 105.60000000000002 m 496.5 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 93.60000000000002 m 496.5 93.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 91.60000000000002 m 496.5 91.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 105.60000000000002 m 561.5 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 93.60000000000002 m 561.5 93.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 91.60000000000002 m 561.5 91.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 222.30 161.83 Td (Class ) Tj ET Q q 0 0 0 rg BT 242.31 161.83 Td (AX) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.40 161.83 Td (Class ) Tj ET Q q 0 0 0 rg BT 372.55 161.83 Td (TX) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 489.25 161.83 Td (T) Tj ET Q q 0 0 0 rg BT 494.22 161.83 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 194.00 148.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 210.38 148.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 256.45 148.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 324.00 148.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 340.38 148.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.45 148.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.00 148.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 470.38 148.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.45 148.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 135.83 Td (Balance as of January 1, 2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 211.30 135.85 Td (10,275) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 243.00 135.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 290.30 135.85 Td (10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.30 135.85 Td (787) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.00 135.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 424.30 135.85 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.30 135.85 Td (1) Tj ET Q q 0 0 0 rg BT 475.30 135.85 Td (1,062) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.00 135.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 135.85 Td (1) Tj ET Q q 0 0 0 rg BT 554.30 135.85 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 122.85 Td (Issuance of common shares) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 215.30 122.85 Td (6,270) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 294.30 122.85 Td (6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 345.30 122.85 Td (9,287) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 424.30 122.85 Td (9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.30 122.85 Td (15,557) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 122.85 Td (15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 109.85 Td (Redemption of common shares) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 222.60 109.85 Td (\(76) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.30 109.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 290.30 109.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.30 109.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.30 109.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.60 109.85 Td (\(76) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.30 109.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 109.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 96.83 Td (Balance as of December) Tj ET Q q 0 0 0 rg BT 133.39 96.83 Td ( 31, 2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 211.30 96.85 Td (16,469) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 243.00 96.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 290.30 96.85 Td (16) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 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Beginning in January 2018, the Company has and intends to continue to accrue and pay regular distributions on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 599.00 Td (monthly basis, as of monthly record dates. ) Tj ET Q q 0 0 0 rg BT 224.23 599.00 Td (W) Tj ET Q q 0 0 0 rg BT 233.27 599.00 Td (ith the authorization of the Company) Tj ET Q q 0 0 0 rg BT 383.52 599.00 Td (s board of directors, the Company declared ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 587.00 Td (distributions monthly from January 2018 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.99 587.00 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.58 587.00 Td ( at a gross distribution rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.28 587.00 Td ($0.05083) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.78 587.00 Td ( per month for each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 575.00 Td (share class less any applicable distribution and stockholder servicing fees. 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Distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 527.00 Td (reinvested pursuant to the Company) Tj ET Q q 0 0 0 rg BT 197.19 527.00 Td (s distribution reinvestment plan were or will be reinvested in shares of the same class as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 515.00 Td (the shares on which the distributions are being made. Some or all of the cash distributions may be paid from sources other than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 503.00 Td (cash flows from operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 479.00 Td (The following table outlines the Company) Tj ET Q q 0 0 0 rg BT 239.91 479.00 Td (s total cash distributions declared to stockholders for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 467.00 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 467.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.58 467.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.58 467.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.02 467.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.02 467.00 Td (, including the breakout between the distributions declared in cash and those reinvested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 455.00 Td (pursuant to the Company) Tj ET Q q 0 0 0 rg BT 153.60 455.00 Td (s distribution reinvestment plan \(in thousands\).) 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Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 558.42 Td (5,728) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 558.42 Td (4,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 543.42 Td (Acquisition Fees- the ) Tj ET Q q 0 0 0 rg BT 139.77 543.42 Td (Advisor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.15 543.42 Td (6,741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.15 543.42 Td (5,704) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 543.42 Td (2,328) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 543.42 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 543.42 Td (1,265) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 529.32 Td (Asset Management Fees- the ) Tj ET Q q 0 0 0 rg BT 169.75 529.32 Td (Advisor ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 204.47 533.85 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.15 518.42 Td (4,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 518.42 Td (948) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 518.42 Td (305) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 518.42 Td (1,561) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 518.42 Td (941) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 504.32 Td (Other) Tj ET Q q 0 0 0 rg BT 74.57 504.32 Td (- the ) Tj ET Q q 0 0 0 rg BT 94.56 504.32 Td (Advisor ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 129.29 508.85 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.15 503.42 Td (1,827) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.15 503.42 Td (1,183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 503.42 Td (1,1) Tj ET Q q 0 0 0 rg BT 409.65 503.42 Td (1) Tj ET Q q 0 0 0 rg BT 414.65 503.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 503.42 Td (464) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 503.42 Td (295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 489.32 Td (Performance Participation ) Tj ET Q q 0 0 0 rg BT 158.63 489.32 Td (Allocation- the ) Tj ET Q q 0 0 0 rg BT 220.84 489.32 Td (Advisor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 488.42 Td (251) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 488.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 488.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 488.42 Td (251) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 488.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 474.32 Td (Interest Expense- Hines ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 150.02 478.85 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 473.42 Td (676) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 473.42 Td (64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 473.42 Td (570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 473.42 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 473.42 Td (37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 458.42 Td (Property Management Fees- Hines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 458.42 Td (858) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 458.42 Td (265) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 458.42 Td (46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 458.42 Td (37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 458.47 Td (\(19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 458.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 443.42 Td (Construction Management Fees- Hines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 443.42 Td (236) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 443.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 443.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 443.42 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 443.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 428.42 Td (Leasing Fees- Hines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 428.42 Td (263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 428.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 428.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 428.42 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 428.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 413.42 Td (Expense Reimbursements- the ) Tj ET Q q 0 0 0 rg BT 175.58 413.42 Td (Advisor) Tj ET Q q 0 0 0 rg BT 207.41 413.42 Td (, Hines and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 403.42 Td (af) Tj ET Q q 0 0 0 rg BT 59.59 403.42 Td (filiates of Hines \(with respect to management and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 393.42 Td (operations of the Company's properties\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.15 393.42 Td (1,599) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 393.42 Td (675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 393.42 Td (334) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 393.42 Td (304) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 393.42 Td (145) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 378.43 Td (T) Tj ET Q q 0 0 0 rg BT 57.75 378.43 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.00 378.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.15 378.42 Td (32,856) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.00 378.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.15 378.42 Td (25,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.00 378.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.15 378.42 Td (18,269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 378.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 378.42 Td (16,642) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 378.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 378.42 Td (12,141) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 356.25 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 356.25 Td (The ) Tj ET Q q 0 0 0 rg BT 85.50 356.25 Td (Advisor did ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.50 356.25 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.50 356.25 Td (t waive any asset management fees payable to it during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.55 356.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.14 356.25 Td ( and waived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 344.25 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.89 344.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.33 344.25 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.22 344.25 Td ( in asset management fees payable to it during the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.36 344.25 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.94 344.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.38 344.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.38 344.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 332.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 115.66 332.25 Td (. See Advisory ) Tj ET Q q 0 0 0 rg BT 191.21 332.25 Td (Agreement below for a discussion of the asset management fee waiver) Tj ET Q q 0 0 0 rg BT 477.21 332.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.25 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 314.25 Td (Includes amounts the ) Tj ET Q q 0 0 0 rg BT 154.93 314.25 Td (Advisor paid on behalf of the Company such as general and administrative expenses and acquisition-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 302.25 Td (related expenses. ) Tj ET Q q 0 0 0 rg BT 141.12 302.25 Td (These amounts are generally reimbursed to the ) Tj ET Q q 0 0 0 rg BT 330.22 302.25 Td (Advisor during the month following the period in which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 290.25 Td (they are incurred.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 272.25 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 272.25 Td (Includes amounts paid related to the Hines Credit Facility and the Restated Hines Credit Facility) Tj ET Q q 0 0 0 rg BT 453.37 272.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 248.25 Td (As described more fully in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.14 248.25 Td (Note 1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.08 248.25 Td ( Or) Tj ET Q q 0 0 0 rg BT 229.45 248.25 Td (ganization, the Company commenced its Initial Of) Tj ET Q q 0 0 0 rg BT 431.72 248.25 Td (fering in) Tj ET Q q 0 0 0 rg BT 467.82 248.25 Td (August 2014 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 236.25 Td (commenced the Follow-on Of) Tj ET Q q 0 0 0 rg BT 170.07 236.25 Td (fering in December 2017. Described below are the fees payable to Hines and its af) Tj ET Q q 0 0 0 rg BT 501.98 236.25 Td (filiates in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 224.25 Td (connection with the Initial Of) Tj ET Q q 0 0 0 rg BT 168.12 224.25 Td (fering the Follow-on Of) Tj ET Q q 0 0 0 rg BT 263.75 224.25 Td (fering.) Tj ET Q endstream endobj 195 0 obj <> endobj 196 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (95) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 68.00 742.25 Td (Dealer Manager ) Tj ET Q q 0 0 0 rg BT 138.18 742.25 Td (Agreement) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 718.25 Td (Initial Offering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.25 Td (The table below summarizes the fees paid to the Dealer Manager with respect to the sale of IPO Shares in the Initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (Of) Tj ET Q q 0 0 0 rg BT 60.37 682.25 Td (fering. ) Tj ET Q q 0 0 0 rg BT 89.07 682.25 Td (The upfront selling commissions and dealer manager fees were a percentage of the gross of) Tj ET Q q 0 0 0 rg BT 454.31 682.25 Td (fering proceeds of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (shares sold in the primary of) Tj ET Q q 0 0 0 rg BT 163.96 670.25 Td (fering. No upfront selling commissions or dealer manager fees were paid with respect to shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (issued under the Company) Tj ET Q q 0 0 0 rg BT 159.15 658.25 Td (s distribution reinvestment plan. ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 611.75 344.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 611.75 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 611.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 611.75 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 611.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 611.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 581.75 344.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 581.75 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 581.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.50 581.75 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 581.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 581.75 54.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 394.5 611.75 m 447.5 611.75 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 451.5 611.75 m 504.5 611.75 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 508.5 611.75 m 562.5 611.75 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 394.5 611.75 m 447.5 611.75 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 451.5 611.75 m 504.5 611.75 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 508.5 611.75 m 562.5 611.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.90 626.43 Td (Class ) Tj ET Q q 0 0 0 rg BT 425.91 626.43 Td (AX) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 406.10 616.43 Td (Shar) Tj ET Q q 0 0 0 rg BT 426.57 616.43 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.00 626.43 Td (Class ) Tj ET Q q 0 0 0 rg BT 483.19 626.43 Td (TX) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.10 616.43 Td (Shar) Tj ET Q q 0 0 0 rg BT 483.57 616.43 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 516.80 626.43 Td (Class IX) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.60 616.43 Td (Shar) Tj ET Q q 0 0 0 rg BT 540.98 616.43 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 601.42 Td (Selling Commissions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.55 601.42 Td (7.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.55 601.42 Td (2.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.15 601.42 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 586.42 Td (Dealer Manager Fee Paid by the Company from Of) Tj ET Q q 0 0 0 rg BT 263.31 586.42 Td (fering Proceeds) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.55 586.42 Td (1.50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.55 586.42 Td (1.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.15 586.42 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 571.42 Td ( ) Tj ET Q q 0 0 0 rg BT 57.45 571.42 Td (Advisor Payment of a Portion of the Dealer Manager Fee) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 286.55 575.95 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.55 571.42 Td (1.50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.55 571.42 Td (1.50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.05 571.42 Td (1.50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 556.42 Td (Annual Distribution and Stockholder Servicing Fee) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 263.80 560.95 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 556.42 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.55 556.42 Td (1.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.05 556.42 Td (0.25%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 525.25 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 525.25 Td (Pursuant to the Dealer Manager ) Tj ET Q q 0 0 0 rg BT 197.13 525.25 Td (Agreement for the Initial Of) Tj ET Q q 0 0 0 rg BT 309.68 525.25 Td (fering, the ) Tj ET Q q 0 0 0 rg BT 352.72 525.25 Td (Advisor paid a portion of the dealer manager fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 513.25 Td (payable to the Dealer Manager in an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.92 513.25 Td (1.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.75 513.25 Td ( of the gross of) Tj ET Q q 0 0 0 rg BT 363.56 513.25 Td (fering proceeds with respect to Class ) Tj ET Q q 0 0 0 rg BT 512.96 513.25 Td (AX shares, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 501.25 Td (Class ) Tj ET Q q 0 0 0 rg BT 91.99 501.25 Td (TX shares, and Class IX shares sold in the primary portion of the Initial Of) Tj ET Q q 0 0 0 rg BT 391.47 501.25 Td (fering on and after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.55 501.25 Td (August2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.94 501.25 Td (. ) Tj ET Q q 0 0 0 rg BT 536.26 501.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 489.25 Td (Advisor was not reimbursed by the Company in any way for the payment of such dealer manager fees. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 465.25 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 465.25 Td (In addition, the Dealer Manager received annual distribution and stockholder servicing fees of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.31 465.25 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.14 465.25 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.47 465.25 Td (0.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.30 465.25 Td ( of the gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 453.25 Td (of) Tj ET Q q 0 0 0 rg BT 76.15 453.25 Td (fering price per share through October 2, 2017 and now) Tj ET Q q 0 0 0 rg BT 298.21 453.25 Td (, since we are no longer of) Tj ET Q q 0 0 0 rg BT 403.82 453.25 Td (fering IPO shares, continues to receive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 441.25 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.83 441.25 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.16 441.25 Td (0.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.99 441.25 Td ( of the most recently determined NA) Tj ET Q q 0 0 0 rg BT 273.32 441.25 Td (V) Tj ET Q q 0 0 0 rg BT 280.36 441.25 Td ( per share for the Class ) Tj ET Q q 0 0 0 rg BT 374.60 441.25 Td (TX shares and Class IX shares purchased and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 429.25 Td (outstanding. ) Tj ET Q q 0 0 0 rg BT 121.98 429.25 Td (The Company will cease paying the distribution and stockholder servicing fees with respect to any particular ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 417.25 Td (Class ) Tj ET Q q 0 0 0 rg BT 91.99 417.25 Td (TX share or Class IX share and that Class ) Tj ET Q q 0 0 0 rg BT 261.49 417.25 Td (TX share or Class IX share will convert into a number of Class) Tj ET Q q 0 0 0 rg BT 515.60 417.25 Td (AX shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 405.25 Td (or Class JX shares, respectively) Tj ET Q q 0 0 0 rg BT 194.26 405.25 Td (, on the occurrence of earlier of: \(i\) a listing of the Class ) Tj ET Q q 0 0 0 rg BT 420.85 405.25 Td (A) Tj ET Q q 0 0 0 rg BT 427.52 405.25 Td ( shares on a national securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 393.25 Td (exchange; \(ii\) a mer) Tj ET Q q 0 0 0 rg BT 148.05 393.25 Td (ger or consolidation of the Company with or into another entity) Tj ET Q q 0 0 0 rg BT 401.24 393.25 Td (, or the sale or other disposition of all or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 381.25 Td (substantially all of the Company) Tj ET Q q 0 0 0 rg BT 200.76 381.25 Td (s assets; \(iii\) the end of the month in which the Dealer Manager determines that total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 369.25 Td (underwriting compensation paid in the Initial Of) Tj ET Q q 0 0 0 rg BT 261.66 369.25 Td (fering including the distribution and stockholder servicing fees paid on all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 357.25 Td (IPO Shares sold in the Initial Of) Tj ET Q q 0 0 0 rg BT 196.69 357.25 Td (fering is equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.67 357.25 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.50 357.25 Td ( of the gross proceeds of the Of) Tj ET Q q 0 0 0 rg BT 418.12 357.25 Td (fering from the sale of the IPO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 345.25 Td (Shares; \(iv\)the end of the month in which the transfer agent, on behalf of the Company) Tj ET Q q 0 0 0 rg BT 417.53 345.25 Td (, determines that underwriting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 333.25 Td (compensation paid in the primary of) Tj ET Q q 0 0 0 rg BT 213.06 333.25 Td (fering including the distribution and stockholder servicing fee paid with respect to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 321.25 Td (Class ) Tj ET Q q 0 0 0 rg BT 91.99 321.25 Td (TX shares or Class IX shares held by a stockholder within his or her particular account equals ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.94 321.25 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.77 321.25 Td ( of the gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 309.25 Td (of) Tj ET Q q 0 0 0 rg BT 76.15 309.25 Td (fering price at the time of investment of the Class ) Tj ET Q q 0 0 0 rg BT 276.47 309.25 Td (TX shares or Class IX shares held in such account; and \(v\) on any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 297.25 Td (Class ) Tj ET Q q 0 0 0 rg BT 91.99 297.25 Td (TX share or Class IX share that is redeemed or repurchased. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 270.25 Td (Follow-On Offering) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 246.25 Td (The table below summarizes the fees payable to the Dealer Manager ef) Tj ET Q q 0 0 0 rg BT 351.86 246.25 Td (fective as of December 6, 2017, the ef) Tj ET Q q 0 0 0 rg BT 504.11 246.25 Td (fective date of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 234.25 Td (the Restructuring with respect to the sale of Follow-On Of) Tj ET Q q 0 0 0 rg BT 283.38 234.25 Td (fering Shares. ) Tj ET Q q 0 0 0 rg BT 341.24 234.25 Td (The upfront selling commissions and dealer manager ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 222.25 Td (fees are based on a percentage of the gross of) Tj ET Q q 0 0 0 rg BT 231.12 222.25 Td (fering proceeds of the shares sold in the primary of) Tj ET Q q 0 0 0 rg BT 435.04 222.25 Td (fering. No upfront selling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 210.25 Td (commissions or dealer manager fees are payable with respect to shares issued under the Company) Tj ET Q q 0 0 0 rg BT 444.32 210.25 Td (s distribution reinvestment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 198.25 Td (plan. ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 151.75 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 151.75 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 151.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 151.75 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 151.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 151.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 151.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 151.75 54.00 -15.00 re f /GS0 gs 1 1 1 rg /GS0 gs 49.50 136.75 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 121.75 286.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 121.75 53.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 121.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 121.75 53.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 121.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 121.75 54.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 121.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 121.75 54.00 -25.00 re f /GS0 gs 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 335.5 151.75 m 388.5 151.75 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 392.5 151.75 m 445.5 151.75 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 449.5 151.75 m 503.5 151.75 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 507.5 151.75 m 561.5 151.75 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 335.5 151.75 m 388.5 151.75 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 392.5 151.75 m 445.5 151.75 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 449.5 151.75 m 503.5 151.75 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 507.5 151.75 m 561.5 151.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 345.70 166.43 Td (Class ) Tj ET Q q 0 0 0 rg BT 370.89 166.43 Td (T) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.95 156.43 Td (shar) Tj ET Q q 0 0 0 rg BT 366.75 156.43 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.05 166.43 Td (Class S) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.95 156.43 Td (shar) Tj ET Q q 0 0 0 rg BT 423.75 156.43 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 459.70 166.43 Td (Class D) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.45 156.43 Td (shar) Tj ET Q q 0 0 0 rg BT 481.25 156.43 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.40 166.43 Td (Class I) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.45 156.43 Td (shar) Tj ET Q q 0 0 0 rg BT 539.16 156.43 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 141.42 Td (Selling Commission) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.05 141.42 Td (3.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.05 141.42 Td (3.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 141.42 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.15 141.42 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 126.42 Td (Dealer Manager Fee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.05 126.42 Td (0.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 126.42 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 126.42 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.15 126.42 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 111.42 Td (Ongoing Distribution and Stockholder Servicing Fee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 101.42 Td (\(as a percentage of NA) Tj ET Q q 0 0 0 rg BT 147.88 101.42 Td (V\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 158.44 105.95 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.05 101.42 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.05 101.42 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.05 101.42 Td (0.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.15 101.42 Td (None) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 73.25 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 73.25 Td (The Company records distribution and stockholder servicing fees as a reduction to additional paid-in capital and the related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 61.25 Td (liability in an amount equal to the maximum fees payable on the date the shares are issued. ) Tj ET Q q 0 0 0 rg BT 436.32 61.25 Td (The liability will be relieved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 49.25 Td (over time, as the fees are paid to the Dealer Manager) Tj ET Q q 0 0 0 rg BT 278.89 49.25 Td (, or it will be adjusted if the fees are no longer payable. For the years ) Tj ET Q endstream endobj 197 0 obj <> endobj 198 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.38 742.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.96 742.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.40 742.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.40 742.10 Td (, the Company has recorded a liability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.19 742.10 Td ($8.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.08 742.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.52 742.10 Td ($4.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.41 742.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 548.07 742.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (related to these fees, which is included in due to af) Tj ET Q q 0 0 0 rg BT 270.25 730.10 Td (filiates on the consolidated balance sheets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 709.10 Td (The Company will cease paying distribution and stockholder servicing fees with respect to any Class ) Tj ET Q q 0 0 0 rg BT 474.11 709.10 Td (T) Tj ET Q q 0 0 0 rg BT 480.04 709.10 Td ( share, Class S share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 697.10 Td (or Class D share at the end of the month in which the transfer agent, on the Company) Tj ET Q q 0 0 0 rg BT 393.80 697.10 Td (s behalf, determines that the total upfront ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 685.10 Td (selling commissions, dealer manager fees and distribution and stockholder servicing fees paid with respect to such Class ) Tj ET Q q 0 0 0 rg BT 534.15 685.10 Td (T) Tj ET Q q 0 0 0 rg BT 540.07 685.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 673.10 Td (shares, Class S shares or Class D shares, as applicable, held by a stockholder within his or her particular account equals ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.43 673.10 Td (8.75%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.26 673.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 661.10 Td (\(or) Tj ET Q q 0 0 0 rg BT 61.26 661.10 Td (, in the case of shares sold through certain participating broker dealers, a lower limit as set forth in any applicable agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 649.10 Td (between our Dealer Manager and a participating broker dealer\)of the gross proceeds from the sale of such Class ) Tj ET Q q 0 0 0 rg BT 502.14 649.10 Td (T) Tj ET Q q 0 0 0 rg BT 508.07 649.10 Td ( shares, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 637.10 Td (Class S shares or Class D shares \(including the gross proceeds of any shares issued under the Company) Tj ET Q q 0 0 0 rg BT 466.31 637.10 Td (s distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 625.10 Td (reinvestment plan with respect thereto\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 604.10 Td (In addition, the Company will cease paying distribution and stockholder servicing fees with respect to Class ) Tj ET Q q 0 0 0 rg BT 502.45 604.10 Td (T) Tj ET Q q 0 0 0 rg BT 508.38 604.10 Td ( shares, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 592.10 Td (Class S shares and Class D shares on the earlier to occur of the following: \(i\) a listing of the Company) Tj ET Q q 0 0 0 rg BT 464.08 592.10 Td (s common shares, \(ii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 580.10 Td (the Company) Tj ET Q q 0 0 0 rg BT 106.38 580.10 Td (s mer) Tj ET Q q 0 0 0 rg BT 128.14 580.10 Td (ger or consolidation with or into another entity) Tj ET Q q 0 0 0 rg BT 314.39 580.10 Td (, or the sale or other disposition of all or substantially all of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (our assets or \(iii\) the date following the completion of the primary portion of the Follow-On Of) Tj ET Q q 0 0 0 rg BT 430.85 568.10 Td (fering on which, in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 556.10 Td (aggregate, underwriting compensation from all sources in connection with the Follow-On Of) Tj ET Q q 0 0 0 rg BT 421.39 556.10 Td (fering, including upfront selling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 544.10 Td (commissions, dealer manager fees, distribution and stockholder servicing fees and other underwriting compensation, is equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 532.10 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.33 532.10 Td ( of the gross proceeds from our Follow-On Of) Tj ET Q q 0 0 0 rg BT 252.56 532.10 Td (fering.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 68.00 508.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 106.24 508.10 Td (Agreement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 484.10 Td (Pursuant to the ) Tj ET Q q 0 0 0 rg BT 129.94 484.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 169.11 484.10 Td (Agreement and the Operating Partnership ) Tj ET Q q 0 0 0 rg BT 337.67 484.10 Td (Agreement \(as also amended and restated on December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 472.10 Td (6, 2017\), the Company is required to pay the following fees and expense reimbursements:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 448.10 Td (Acquisition Fee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 424.10 Td (Prior to December 6, 2017, the ef) Tj ET Q q 0 0 0 rg BT 201.67 424.10 Td (fective date of the Restructuring, the ) Tj ET Q q 0 0 0 rg BT 349.67 424.10 Td (Advisor received acquisition fees of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.56 424.10 Td (2.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.39 424.10 Td ( of \(i\) the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 412.10 Td (purchase price of real estate investments acquired, including any debt attributable to such investments, or the total principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 400.10 Td (amounts borrowed under any loans made or acquired directly by the Company) Tj ET Q q 0 0 0 rg BT 363.43 400.10 Td (, or \(ii\) when the Company made an investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 388.10 Td (or made or acquired a loan indirectly through another entity) Tj ET Q q 0 0 0 rg BT 288.43 388.10 Td (, such investment) Tj ET Q q 0 0 0 rg BT 360.92 388.10 Td (s pro rata share of the gross asset value of real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 376.10 Td (estate investments held by that entity) Tj ET Q q 0 0 0 rg BT 197.37 376.10 Td (, including any debt attributable to such investments, or the total principal amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 364.10 Td (borrowed under any loans made or acquired by that entity) Tj ET Q q 0 0 0 rg BT 280.66 364.10 Td (. ) Tj ET Q q 0 0 0 rg BT 287.61 364.10 Td (As of the ef) Tj ET Q q 0 0 0 rg BT 334.36 364.10 Td (fective date of the Restructuring, we will no longer pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 352.10 Td (acquisition fees to the ) Tj ET Q q 0 0 0 rg BT 139.42 352.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 171.09 352.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 328.10 Td (Asset Management Fee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 304.10 Td (The ) Tj ET Q q 0 0 0 rg BT 85.50 304.10 Td (Advisor also receives asset management fees of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.04 304.10 Td (0.0625%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.87 304.10 Td ( per month of the cost of the Company) Tj ET Q q 0 0 0 rg BT 472.06 304.10 Td (s real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 292.10 Td (investments at the end of each month; provided that, with respect to real estate investments included in the Company) Tj ET Q q 0 0 0 rg BT 520.16 292.10 Td (s board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 280.10 Td (director) Tj ET Q q 0 0 0 rg BT 81.46 280.10 Td () Tj ET Q q 0 0 0 rg BT 84.24 280.10 Td (s most recent determination of the Company) Tj ET Q q 0 0 0 rg BT 264.76 280.10 Td (s NA) Tj ET Q q 0 0 0 rg BT 284.30 280.10 Td (V) Tj ET Q q 0 0 0 rg BT 291.34 280.10 Td ( per share, the asset management fees will be equal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.20 280.10 Td (0.0625%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.03 280.10 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 268.10 Td (month of the most recently determined value of such real estate investments at the end of each month. ) Tj ET Q q 0 0 0 rg BT 462.09 268.10 Td (As of the ef) Tj ET Q q 0 0 0 rg BT 508.84 268.10 Td (fective date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 256.10 Td (of the Restructuring, the asset management fee cannot exceed an amount equal to 1/12th of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.09 256.10 Td (1.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.92 256.10 Td ( of the Company) Tj ET Q q 0 0 0 rg BT 512.64 256.10 Td (s NA) Tj ET Q q 0 0 0 rg BT 532.18 256.10 Td (V) Tj ET Q q 0 0 0 rg BT 539.22 256.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 244.10 Td (the end of each applicable month. ) Tj ET Q q 0 0 0 rg BT 189.39 244.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 239.30 244.10 Td (, as of the ef) Tj ET Q q 0 0 0 rg BT 288.26 244.10 Td (fective date of the Restructuring, the asset management fee can be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 232.10 Td (paid, at the ) Tj ET Q q 0 0 0 rg BT 96.10 232.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 128.69 232.10 Td () Tj ET Q q 0 0 0 rg BT 131.47 232.10 Td (s election, in cash, Class I shares or Class I OP) Tj ET Q q 0 0 0 rg BT 318.29 232.10 Td ( units of the Operating Partnership.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 208.10 Td (In addition, commencing with the quarter ended December 31, 2014, the ) Tj ET Q q 0 0 0 rg BT 360.69 208.10 Td (Advisor agreed to waive the asset management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.10 Td (fees for each quarter through December31, 2016, to the extent that the Company) Tj ET Q q 0 0 0 rg BT 377.39 196.10 Td (s MFFO, for a particular quarter) Tj ET Q q 0 0 0 rg BT 505.84 196.10 Td (, as disclosed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.10 Td (in the Company) Tj ET Q q 0 0 0 rg BT 116.66 184.10 Td (s ) Tj ET Q q 0 0 0 rg BT 122.50 184.10 Td (Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as applicable, amounted to less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.81 184.10 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.14 184.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.10 Td (of the aggregate distributions declared to the Company) Tj ET Q q 0 0 0 rg BT 272.44 172.10 Td (s stockholders for such quarter) Tj ET Q q 0 0 0 rg BT 394.63 172.10 Td (. ) Tj ET Q q 0 0 0 rg BT 399.08 172.10 Td (As a result of these fee waivers, cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.10 Td (flows from operations that would have been paid to the ) Tj ET Q q 0 0 0 rg BT 272.72 160.10 Td (Advisor for asset management feeswere available to pay distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.10 Td (to stockholders. ) Tj ET Q q 0 0 0 rg BT 118.14 148.10 Td (These fee waivers were not deferrals and accordingly) Tj ET Q q 0 0 0 rg BT 331.00 148.10 Td (, any fees that were waived will not be paid to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 136.10 Td (Advisor in cash at any time in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 112.10 Td (The ) Tj ET Q q 0 0 0 rg BT 85.50 112.10 Td (Advisor also agreed to waive the asset management fees otherwise payable to it for the quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.84 112.10 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.44 112.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 100.10 Td (to the extent that the Company) Tj ET Q q 0 0 0 rg BT 175.81 100.10 Td (s MFFO for such quarter) Tj ET Q q 0 0 0 rg BT 274.84 100.10 Td (, as reduced to reflect the distribution and stockholder servicing fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 88.10 Td (payable for such quarter) Tj ET Q q 0 0 0 rg BT 146.50 88.10 Td (, as disclosed in the Company) Tj ET Q q 0 0 0 rg BT 268.71 88.10 Td (s Quarterly Report on Form 10-Q, amounted to less than 100% of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 76.10 Td (aggregate distributions declared to its stockholders for that quarter) Tj ET Q q 0 0 0 rg BT 314.92 76.10 Td (. ) Tj ET Q q 0 0 0 rg BT 322.24 76.10 Td (The ) Tj ET Q q 0 0 0 rg BT 339.74 76.10 Td (Advisor did not waive any asset management fees for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 64.10 Td (the year ended December 31, 2017. ) Tj ET Q endstream endobj 199 0 obj <> endobj 200 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (The table below outlines, with respect to each of the years ended December31, 2017, 2016, and 2015, the asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (management fees earned by the ) Tj ET Q q 0 0 0 rg BT 178.00 718.10 Td (Advisor before application of the waivers, if any) Tj ET Q q 0 0 0 rg BT 371.73 718.10 Td (, the amounts waived pursuant to the asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (management fee waivers described above, and the asset management fees that were earned by the ) Tj ET Q q 0 0 0 rg BT 442.60 706.10 Td (Advisor after application of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (the waivers, if any \(in thousands\).) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 659.60 203.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 659.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 659.60 101.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 659.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.00 659.60 105.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.00 659.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 659.60 92.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 629.60 203.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 629.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 629.60 101.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 629.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.00 629.60 105.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.00 629.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 629.60 92.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 659.6 m 252 659.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 659.6 m 357 659.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361 659.6 m 466 659.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 659.6 m 562 659.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 664.28 Td (For) Tj ET Q q 0 0 0 rg BT 66.87 664.28 Td ( the ) Tj ET Q q 0 0 0 rg BT 84.83 664.28 Td (Y) Tj ET Q q 0 0 0 rg BT 90.94 664.28 Td (ears Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.30 674.28 Td (Asset Management ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.70 664.28 Td (Fee Pr) Tj ET Q q 0 0 0 rg BT 300.55 664.28 Td (e-W) Tj ET Q q 0 0 0 rg BT 317.77 664.28 Td (aiver) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.55 674.28 Td (Asset Management Fee ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 396.85 664.28 Td (W) Tj ET Q q 0 0 0 rg BT 406.30 664.28 Td (aived) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.80 674.28 Td (Asset Management ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 480.45 664.28 Td (Fee Post-W) Tj ET Q q 0 0 0 rg BT 529.04 664.28 Td (aiver) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 649.27 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.50 649.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 649.27 Td (4,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.50 649.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 649.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.50 649.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 649.27 Td (4,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 634.27 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.50 634.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 634.27 Td (2,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.50 634.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.65 634.27 Td (1,252) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.50 634.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 634.27 Td (948) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 619.27 Td (December 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.50 619.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.15 619.27 Td (888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.50 619.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 619.27 Td (583) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.50 619.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 619.27 Td (305) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 591.10 Td (Performance Participation ) Tj ET Q q 0 0 0 rg BT 178.36 591.10 Td (Allocation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 567.10 Td (As of the ef) Tj ET Q q 0 0 0 rg BT 114.75 567.10 Td (fective date of the Restructuring, the ) Tj ET Q q 0 0 0 rg BT 262.75 567.10 Td (Advisor is also entitled to an annual performance participation allocation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 555.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.83 555.10 Td (12.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.66 555.10 Td ( of the total return earned on an investment in the Company) Tj ET Q q 0 0 0 rg BT 327.98 555.10 Td (s shares each year) Tj ET Q q 0 0 0 rg BT 399.34 555.10 Td (. ) Tj ET Q q 0 0 0 rg BT 404.16 555.10 Td (This performance participation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 543.10 Td (allocation is subject to investors earning a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.23 543.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.56 543.10 Td ( annual return, after considering the ef) Tj ET Q q 0 0 0 rg BT 386.37 543.10 Td (fect of any losses carried forward from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 531.10 Td (prior year \(as defined in the Operating Partnership agreement\). ) Tj ET Q q 0 0 0 rg BT 303.61 531.10 Td (The performance participation allocation accrues monthly and is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 519.10 Td (payable after the completion of each calendar year) Tj ET Q q 0 0 0 rg BT 251.28 519.10 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 495.10 Td (Expense Reimbursements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 471.10 Td (The Company reimburses the ) Tj ET Q q 0 0 0 rg BT 187.98 471.10 Td (Advisor for all expenses paid or incurred by the ) Tj ET Q q 0 0 0 rg BT 380.98 471.10 Td (Advisor in connection with the services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 459.10 Td (provided to the Company) Tj ET Q q 0 0 0 rg BT 151.28 459.10 Td (, subject to the limitation that the Company will not reimburse the ) Tj ET Q q 0 0 0 rg BT 417.07 459.10 Td (Advisor for any amount by which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 447.10 Td (its operating expenses \(including the asset management fee and the performance participation allocation\) at the end of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.26 447.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.92 447.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 435.10 Td (preceding fiscal quarters exceeds the greater of: \(A\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.89 435.10 Td (2.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.72 435.10 Td ( of its average invested assets, or \(B\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.40 435.10 Td (25.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.23 435.10 Td ( of its net income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 423.10 Td (determined without reduction for any additions to reserves for depreciation, bad debts or other similar non-cash reserves and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 411.10 Td (excluding any gain from the sale of the Company) Tj ET Q q 0 0 0 rg BT 250.50 411.10 Td (s assets for that period \(the 2%/25% Limitation\). Notwithstanding the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 399.10 Td (above, the Company may reimburse the ) Tj ET Q q 0 0 0 rg BT 211.35 399.10 Td (Advisor for expenses in excess of this limitation if a majority of the independent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 387.10 Td (directors determines that such excess expenses are justified based on unusual and non-recurring factors. For the four fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 375.10 Td (quarters ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.08 375.10 Td (September30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.35 375.10 Td (, the Company) Tj ET Q q 0 0 0 rg BT 252.73 375.10 Td (s total operating expenses exceeded the 2%/25% Limitation. Based upon a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 363.10 Td (review of unusual and non-recurring factors, including but not limited to the Company being in the early stages of raising and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 351.10 Td (deploying capital, the limited number of assets acquired to date and the timing of those acquisitions, a majority of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 339.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 339.10 Td (s independent directors determined that the excess expenses were justified and thus reimbursable to the ) Tj ET Q q 0 0 0 rg BT 506.26 339.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 537.93 339.10 Td (. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 327.10 Td (the four fiscal quarters ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.12 327.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.70 327.10 Td (, the Company) Tj ET Q q 0 0 0 rg BT 309.08 327.10 Td (s total operating expenses did not exceed the 2%/25% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 315.10 Td (Limitation.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 291.10 Td (Or) Tj ET Q q 0 0 0 rg BT 78.74 291.10 Td (ganization and Offering Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 267.10 Td (Or) Tj ET Q q 0 0 0 rg BT 78.37 267.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 147.61 267.10 Td (fering costs consist of, among other costs, expenses of the Company) Tj ET Q q 0 0 0 rg BT 423.67 267.10 Td (s or) Tj ET Q q 0 0 0 rg BT 438.21 267.10 Td (ganization, actual legal, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 255.10 Td (accounting, bona fide out-of-pocket itemized and detailed due diligence costs, printing, filing fees, transfer agent costs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 243.10 Td (postage, escrow fees, data processing fees, advertising and sales literature and other of) Tj ET Q q 0 0 0 rg BT 395.52 243.10 Td (fering-related costs. Or) Tj ET Q q 0 0 0 rg BT 490.30 243.10 Td (ganization and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 231.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 231.10 Td (fering costs include expenses that are deemed issuer costs and certain expenses that are deemed underwriting compensation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 219.10 Td (but exclude selling commissions, dealer manager fees and distribution and stockholder servicing fees. Or) Tj ET Q q 0 0 0 rg BT 472.48 219.10 Td (ganizational costs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 207.10 Td (such as expenses associated with the formation of the Company and its board of directors, are expensed as incurred, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 195.10 Td (andof) Tj ET Q q 0 0 0 rg BT 75.09 195.10 Td (fering-related costs are recorded as an of) Tj ET Q q 0 0 0 rg BT 237.60 195.10 Td (fset to additional paid-in capital. Prior to the Restructuring, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 183.10 Td (reimbursed the ) Tj ET Q q 0 0 0 rg BT 111.65 183.10 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 182.85 183.10 Td (filiates for any or) Tj ET Q q 0 0 0 rg BT 251.81 183.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 321.04 183.10 Td (fering costs deemed issuer costs related to the Initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 171.10 Td (Of) Tj ET Q q 0 0 0 rg BT 60.37 171.10 Td (fering that it paid on the Company) Tj ET Q q 0 0 0 rg BT 200.90 171.10 Td (s behalf. Further) Tj ET Q q 0 0 0 rg BT 268.81 171.10 Td (, the ) Tj ET Q q 0 0 0 rg BT 287.98 171.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 327.15 171.10 Td (Agreement was amended, ef) Tj ET Q q 0 0 0 rg BT 440.81 171.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.51 171.10 Td (February29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.11 171.10 Td (, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 159.10 Td (reflect that the Company would not reimburse the ) Tj ET Q q 0 0 0 rg BT 251.06 159.10 Td (Advisor for the cumulative or) Tj ET Q q 0 0 0 rg BT 369.74 159.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 438.97 159.10 Td (fering costs incurred in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 147.10 Td (connection with the Company) Tj ET Q q 0 0 0 rg BT 173.03 147.10 Td (s or) Tj ET Q q 0 0 0 rg BT 187.57 147.10 Td (ganization and public of) Tj ET Q q 0 0 0 rg BT 284.31 147.10 Td (ferings, in excess of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.78 147.10 Td (2.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.61 147.10 Td ( of gross of) Tj ET Q q 0 0 0 rg BT 432.71 147.10 Td (fering proceeds from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 135.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 135.10 Td (s public of) Tj ET Q q 0 0 0 rg BT 133.70 135.10 Td (ferings. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.14 135.10 Td (April14, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.75 135.10 Td (, the ) Tj ET Q q 0 0 0 rg BT 260.91 135.10 Td (Advisor reimbursed the Company for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.38 135.10 Td ($4.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.28 135.10 Td ( in or) Tj ET Q q 0 0 0 rg BT 483.20 135.10 Td (ganization and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 123.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 123.10 Td (fering costs that the Company had previously reimbursed to the ) Tj ET Q q 0 0 0 rg BT 314.21 123.10 Td (Advisor in excess of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.59 123.10 Td (2.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.42 123.10 Td ( cap.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 99.10 Td (Ef) Tj ET Q q 0 0 0 rg BT 77.26 99.10 Td (fective as of December 6, 2017, the ) Tj ET Q q 0 0 0 rg BT 221.37 99.10 Td (Advisor agreed to advance all of the Company) Tj ET Q q 0 0 0 rg BT 410.48 99.10 Td (s or) Tj ET Q q 0 0 0 rg BT 425.02 99.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 494.25 99.10 Td (fering costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 87.10 Td (related to the Follow-On Of) Tj ET Q q 0 0 0 rg BT 161.46 87.10 Td (fering through December 31, 2018. ) Tj ET Q q 0 0 0 rg BT 307.35 87.10 Td (The Company will reimburse the ) Tj ET Q q 0 0 0 rg BT 441.49 87.10 Td (Advisor for all such advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 75.10 Td (expenses as well as any or) Tj ET Q q 0 0 0 rg BT 155.06 75.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 224.30 75.10 Td (fering costs incurred by the ) Tj ET Q q 0 0 0 rg BT 335.66 75.10 Td (Advisor related to the Initial Of) Tj ET Q q 0 0 0 rg BT 461.83 75.10 Td (fering ratably from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 63.10 Td (January 1, 2019 through December 31, 2023 to the extent cumulative or) Tj ET Q q 0 0 0 rg BT 337.80 63.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 407.04 63.10 Td (fering costs do not exceed an amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 51.10 Td (equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.43 51.10 Td (2.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.26 51.10 Td ( of gross of) Tj ET Q q 0 0 0 rg BT 150.36 51.10 Td (fering proceeds from the Company) Tj ET Q q 0 0 0 rg BT 293.09 51.10 Td (s public of) Tj ET Q q 0 0 0 rg BT 335.13 51.10 Td (ferings. Following December 31, 2023, the Company ) Tj ET Q endstream endobj 201 0 obj <> endobj 202 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (98) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (will reimburse the ) Tj ET Q q 0 0 0 rg BT 124.71 742.10 Td (Advisor for any or) Tj ET Q q 0 0 0 rg BT 198.68 742.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 267.92 742.10 Td (fering costs that it incurs on its behalf, as and when incurred, to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (extent that aggregate reimbursements to the ) Tj ET Q q 0 0 0 rg BT 226.61 730.10 Td (Advisor for cumulative or) Tj ET Q q 0 0 0 rg BT 330.57 730.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 399.80 730.10 Td (fering costs do not exceed an amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (equal to 2.5% of the gross of) Tj ET Q q 0 0 0 rg BT 165.07 718.10 Td (fering proceeds from the Company) Tj ET Q q 0 0 0 rg BT 307.81 718.10 Td (s public of) Tj ET Q q 0 0 0 rg BT 349.84 718.10 Td (ferings. ) Tj ET Q q 0 0 0 rg BT 384.93 718.10 Td (The total reimbursement related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (or) Tj ET Q q 0 0 0 rg BT 58.15 706.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 127.39 706.10 Td (fering costs, selling commissions, dealer manager fees and the distribution and stockholder servicing fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (may not exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.25 694.10 Td (15.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.08 694.10 Td ( of gross proceeds from the Of) Tj ET Q q 0 0 0 rg BT 263.09 694.10 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 670.10 Td (From inception to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.16 670.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.74 670.10 Td (, or) Tj ET Q q 0 0 0 rg BT 233.89 670.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 303.13 670.10 Td (fering costs incurred by the ) Tj ET Q q 0 0 0 rg BT 414.49 670.10 Td (Advisor on the Company) Tj ET Q q 0 0 0 rg BT 518.09 670.10 Td (s behalf ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.71 658.10 Td ($15.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.60 658.10 Td (. ) Tj ET Q q 0 0 0 rg BT 140.92 658.10 Td (The Company has recorded a liability equal to all unreimbursed or) Tj ET Q q 0 0 0 rg BT 406.77 658.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 476.01 658.10 Td (fering costs that have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (been incurred to date to reflect its expectation that all of these amounts will be reimbursed to the ) Tj ET Q q 0 0 0 rg BT 437.65 646.10 Td (Advisor in the future.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 68.00 622.10 Td (Property Management and Leasing ) Tj ET Q q 0 0 0 rg BT 215.96 622.10 Td (Agreements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 598.10 Td (The Company pays Hines fees for the management and leasing of the Company) Tj ET Q q 0 0 0 rg BT 390.13 598.10 Td (s properties. Property management fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (will be paid in an amount equal to a market-based percentage of the gross revenues of the properties managed by Hines. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (addition, if Hines provides leasing services with respect to a property) Tj ET Q q 0 0 0 rg BT 326.22 574.10 Td (, the Company will pay Hines leasing fees in an amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (equal to the leasing fees char) Tj ET Q q 0 0 0 rg BT 165.60 562.10 Td (ged by unaf) Tj ET Q q 0 0 0 rg BT 212.63 562.10 Td (filiated persons rendering comparable services in the same geographic area of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (applicable property) Tj ET Q q 0 0 0 rg BT 126.82 550.10 Td (. ) Tj ET Q q 0 0 0 rg BT 134.14 550.10 Td (The Company generally will be required to reimburse Hines for certain operating costs incurred in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (providing property management and leasing services pursuant to the property management and leasing agreements. Included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (this reimbursement of operating costs will be the cost of personnel and overhead expenses related to such personnel located at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (the property as well as of) Tj ET Q q 0 0 0 rg BT 150.62 514.10 Td (f-site personnel located in Hines) Tj ET Q q 0 0 0 rg BT 282.61 514.10 Td ( headquarters and regional of) Tj ET Q q 0 0 0 rg BT 399.05 514.10 Td (fices, to the extent the same relate to or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (support the performance of Hines) Tj ET Q q 0 0 0 rg BT 186.99 502.10 Td ( duties under the agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 478.10 Td (Hines may perform construction management services for the Company for both re-development activities and tenant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (construction. ) Tj ET Q q 0 0 0 rg BT 106.75 466.10 Td (These fees are considered incremental to the construction ef) Tj ET Q q 0 0 0 rg BT 346.46 466.10 Td (fort and will be capitalized to the associated real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (estate project as incurred. Costs related to tenant construction will be depreciated over the estimated useful life. Costs related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (to redevelopment activities will be depreciated over the estimated useful life of the associated project. Leasing activities will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (generally be performed by Hines on the Company) Tj ET Q q 0 0 0 rg BT 253.00 430.10 Td (s behalf. Leasing fees will be capitalized and amortized over the life of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (related lease.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (9.F) Tj ET Q q 0 0 0 rg BT 67.87 394.10 Td (AIR ) Tj ET Q q 0 0 0 rg BT 88.52 394.10 Td (V) Tj ET Q q 0 0 0 rg BT 94.45 394.10 Td (ALUE MEASUREMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 370.10 Td (Fair values determined by Level 1 inputs utilize quoted prices \(unadjusted\)in active markets for identical assets or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (liabilities the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (prices included in Level 1 that are observable for the asset or liability) Tj ET Q q 0 0 0 rg BT 326.47 346.10 Td (, either directly or indirectly) Tj ET Q q 0 0 0 rg BT 438.28 346.10 Td (. Level 2 inputs include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices observable for the asset or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (liability) Tj ET Q q 0 0 0 rg BT 80.46 322.10 Td (, such as interest rates and yield curves observable at commonly quoted intervals. Level 3 inputs are unobservable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (inputs for the asset or liability) Tj ET Q q 0 0 0 rg BT 169.05 310.10 Td (, and include situations where there is little, if any) Tj ET Q q 0 0 0 rg BT 368.07 310.10 Td (, market activity for the asset or liability) Tj ET Q q 0 0 0 rg BT 527.93 310.10 Td (. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (instances in which the inputs used to measure fair value may fall into dif) Tj ET Q q 0 0 0 rg BT 340.02 298.10 Td (ferent levels of the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 494.84 298.10 Td (, the level in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (fair value hierarchy within which the fair value measurement in its entirety has been determined is based on the lowest level ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (input significant to the fair value measurement in its entirety) Tj ET Q q 0 0 0 rg BT 291.23 274.10 Td (. ) Tj ET Q q 0 0 0 rg BT 298.54 274.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 358.26 274.10 Td (s assessment of the significance of a particular ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability) Tj ET Q q 0 0 0 rg BT 535.87 262.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 238.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 238.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 238.10 Td (, the Company estimated that the fair value of its notes payable, excluding deferred financing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (costs, which had a book value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.30 226.10 Td ($379.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.19 226.10 Td (, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.24 226.10 Td ($376.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.14 226.10 Td (. ) Tj ET Q q 0 0 0 rg BT 328.58 226.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.03 226.10 Td (December31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.61 226.10 Td (, the Company estimated that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (the fair value of its notes payable, excluding deferred financing costs, which had a book value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.03 214.10 Td ($254.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.92 214.10 Td (, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.98 214.10 Td ($251.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 202.10 Td (. Management has utilized available market information such as interest rate and spread assumptions of notes payable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (with similar terms and remaining maturities, to estimate the amounts required to be disclosed. ) Tj ET Q q 0 0 0 rg BT 429.64 190.10 Td (Although the Company has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (determined that the majority of the inputs used to value its notes payable fall within Level 2 of the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 522.81 178.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (credit quality adjustments associated with its fair value of notes payable utilize Level 3 inputs. However) Tj ET Q q 0 0 0 rg BT 468.65 166.10 Td (, the Company has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (assessed the significance of the impact of the credit quality adjustments on the overall valuations of the fair market value of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (notes payable and has determined they are not significant. Other financial instruments not measured at fair value on a recurring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (basis include cash and cash equivalents, restricted cash, tenant and other receivables, accounts payable and accrued expenses, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (other liabilities, due to af) Tj ET Q q 0 0 0 rg BT 150.07 118.10 Td (filiates and distributions payable. ) Tj ET Q q 0 0 0 rg BT 287.64 118.10 Td (The carrying value of these items reasonably approximates their fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (value based on their highly-liquid nature and/or short-term maturities. Due to the short-term nature of these instruments, Level ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (1 inputs are utilized to estimate the fair value of the cash and cash equivalents and restricted cash and Level 2 inputs are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (utilized to estimate the fair value of the remaining financial instruments.) Tj ET Q endstream endobj 203 0 obj <> endobj 204 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (99) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (10. REPOR) Tj ET Q q 0 0 0 rg BT 101.65 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 107.58 742.25 Td (ABLE SEGMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 718.25 Td (As described previously) Tj ET Q q 0 0 0 rg BT 163.50 718.25 Td (, the Company intends to invest the net proceeds from its public of) Tj ET Q q 0 0 0 rg BT 429.65 718.25 Td (ferings in a diversified portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (of quality commercial real estate properties and other real estate investments throughout the United States and internationally) Tj ET Q q 0 0 0 rg BT 550.35 706.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 109.21 694.25 Td (s current business consists of owning, operating, acquiring, developing, investing in, and disposing of real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (assets. ) Tj ET Q q 0 0 0 rg BT 79.78 682.25 Td (All of the Company) Tj ET Q q 0 0 0 rg BT 162.27 682.25 Td (s consolidated revenues and property operating expenses as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.58 682.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.16 682.25 Td ( are from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 670.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.56 670.25 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 670.25 Td ( consolidated real estate properties owned as of that date. ) Tj ET Q q 0 0 0 rg BT 350.25 670.25 Td (As a result, the Company) Tj ET Q q 0 0 0 rg BT 454.40 670.25 Td (s operating segments have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (been aggregated into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.30 658.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.97 658.25 Td ( reportable segments: domestic of) Tj ET Q q 0 0 0 rg BT 281.75 658.25 Td (fice investments, domestic residential/living investments, domestic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (retail investments, domestic other investments, international of) Tj ET Q q 0 0 0 rg BT 300.93 646.25 Td (fice investments and international residential/living investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 622.25 Td (The tables below provide additional information related to each of the Company) Tj ET Q q 0 0 0 rg BT 391.57 622.25 Td (s segments \(in thousands\) and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (reconciliation to the Company) Tj ET Q q 0 0 0 rg BT 173.64 610.25 Td (s net income \(loss\), as applicable. Corporate-Level ) Tj ET Q q 0 0 0 rg BT 385.78 610.25 Td (Accounts includes amounts incurred by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (the corporate-level entities which are not allocated to any of the reportable segments.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 530.75 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 530.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 530.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 530.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 530.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 530.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 500.75 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 500.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 500.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 500.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 500.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 500.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 470.75 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 470.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 470.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 470.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 470.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 470.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 440.75 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 440.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 440.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 440.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 440.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 440.75 80.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 560.75 m 395 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395 560.75 m 399 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 545.75 m 395 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 560.75 m 479 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 545.75 m 479 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 560.75 m 483 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 560.75 m 563 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 545.75 m 563 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 530.75 m 315 530.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 440.75 m 395 440.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 426.75 m 395 426.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 424.75 m 395 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 440.75 m 479 440.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 426.75 m 479 426.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 424.75 m 479 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 440.75 m 563 440.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 426.75 m 563 426.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 424.75 m 563 424.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 565.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.10 565.43 Td (Y) Tj ET Q q 0 0 0 rg BT 387.77 565.43 Td (ears Ended December) Tj ET Q q 0 0 0 rg BT 480.99 565.43 Td ( 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 550.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.50 550.43 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.50 550.43 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 512.50 550.43 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 535.43 Td (T) Tj ET Q q 0 0 0 rg BT 58.71 535.43 Td (otal Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.50 535.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 535.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 520.42 Td (Domestic of) Tj ET Q q 0 0 0 rg BT 101.56 520.42 Td (fice investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.50 520.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 520.42 Td (15,437) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 520.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 520.42 Td (7,420) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.50 520.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 520.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 505.42 Td (Domestic residential/living investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 505.42 Td (4,671) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 505.42 Td (4,318) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 505.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 490.42 Td (Domestic retail investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 490.42 Td (19,507) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 490.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 490.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 475.42 Td (Domestic other investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 475.42 Td (7,619) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 475.42 Td (4,335) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 475.42 Td (2,41) Tj ET Q q 0 0 0 rg BT 554.15 475.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 460.42 Td (International of) Tj ET Q q 0 0 0 rg BT 114.33 460.42 Td (fice investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 460.42 Td (8,71) Tj ET Q q 0 0 0 rg BT 386.15 460.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 460.42 Td (8,276) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 460.42 Td (6,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 445.42 Td (International residential/living investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 445.42 Td (3,779) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 445.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 445.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 430.43 Td (T) Tj ET Q q 0 0 0 rg BT 58.25 430.43 Td (otal Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.50 430.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 430.42 Td (59,724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 430.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 430.42 Td (24,349) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.50 430.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 430.42 Td (9,410) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 402.25 Td (For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.58 402.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.17 402.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.17 402.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.17 402.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.61 402.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.61 402.25 Td (, the Company) Tj ET Q q 0 0 0 rg BT 352.99 402.25 Td (s total revenue was attributable to the following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.25 Td (countries:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 325.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.00 325.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 325.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 325.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 325.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 325.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 295.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.00 295.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 295.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 295.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 295.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 295.75 62.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 353.75 m 430 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 353.75 m 434 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 353.75 m 500 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 353.75 m 562 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 353.75 m 430 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 339.75 m 430 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 353.75 m 434 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 353.75 m 496 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 339.75 m 496 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 353.75 m 500 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 353.75 m 562 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 339.75 m 562 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 325.75 m 368 325.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.10 358.43 Td (Y) Tj ET Q q 0 0 0 rg BT 413.77 358.43 Td (ears Ended December) Tj ET Q q 0 0 0 rg BT 506.99 358.43 Td ( 31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.50 344.43 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.50 344.43 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.50 344.43 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 330.43 Td (T) Tj ET Q q 0 0 0 rg BT 57.25 330.43 Td (otal Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 315.42 Td (United States) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.15 315.42 Td (79) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 315.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 315.42 Td (66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 315.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 315.42 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 315.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 300.42 Td (Ireland) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.15 300.42 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 300.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 300.42 Td (34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 300.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 300.42 Td (74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 300.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 285.42 Td (United Kingdom) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.15 285.42 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 285.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 285.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 285.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 285.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 285.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 257.25 Td (For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.58 257.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.17 257.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.17 257.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.17 257.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.61 257.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.61 257.25 Td (, the Company) Tj ET Q q 0 0 0 rg BT 352.99 257.25 Td (s property revenues in excess of expenses by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.25 Td (segment were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 177.75 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.00 177.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 177.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.00 177.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 177.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 177.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 147.75 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.00 147.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 147.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.00 147.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 147.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 147.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 117.75 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.00 117.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 117.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.00 117.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 117.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 117.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 87.75 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.00 87.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 87.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.00 87.75 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 87.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 87.75 80.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 207.75 m 394 207.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 207.75 m 398 207.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 207.75 m 478 207.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 207.75 m 482 207.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 207.75 m 562 207.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 192.75 m 394 192.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 192.75 m 478 192.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 207.75 m 562 207.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 192.75 m 562 192.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 177.75 m 314 177.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 87.75 m 394 87.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 73.75 m 394 73.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 71.75 m 394 71.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 87.75 m 478 87.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 73.75 m 478 73.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 71.75 m 478 71.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 87.75 m 562 87.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 73.75 m 562 73.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 71.75 m 562 71.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 212.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.10 212.43 Td (Y) Tj ET Q q 0 0 0 rg BT 386.77 212.43 Td (ears Ended December) Tj ET Q q 0 0 0 rg BT 479.99 212.43 Td ( 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 197.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 343.50 197.43 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 427.50 197.43 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 511.50 197.43 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 182.43 Td (Pr) Tj ET Q q 0 0 0 rg BT 61.87 182.43 Td (operty r) Tj ET Q q 0 0 0 rg BT 96.39 182.43 Td (evenues in excess of expenses) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 219.71 186.96 Td ( \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.50 182.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 167.42 Td (Domestic of) Tj ET Q q 0 0 0 rg BT 100.56 167.42 Td (fice investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.50 167.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.65 167.42 Td (10,497) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.50 167.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 167.42 Td (4,910) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.50 167.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 167.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 152.42 Td (Domestic residential/living investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.65 152.42 Td (2,977) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 152.42 Td (2,830) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 152.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 137.42 Td (Domestic retail investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.65 137.42 Td (10,889) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 137.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 137.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 122.42 Td (Domestic other investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.65 122.42 Td (5,862) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 122.42 Td (3,248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 122.42 Td (1,746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 107.42 Td (International of) Tj ET Q q 0 0 0 rg BT 113.33 107.42 Td (fice investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.65 107.42 Td (6,922) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 107.42 Td (6,682) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 107.42 Td (5,366) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 92.42 Td (International residential/living investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.65 92.42 Td (2,466) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 92.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 92.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 77.43 Td (Pr) Tj ET Q q 0 0 0 rg BT 61.87 77.43 Td (operty r) Tj ET Q q 0 0 0 rg BT 96.39 77.43 Td (evenues in excess of expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.50 77.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.65 77.42 Td (39,613) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.50 77.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 77.42 Td (17,670) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.50 77.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 77.42 Td (7,1) Tj ET Q q 0 0 0 rg BT 548.15 77.42 Td (12) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 54.05 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 54.05 Td (Revenues less property operating expenses, real property taxes and property management fees.) Tj ET Q endstream endobj 205 0 obj <> endobj 206 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 31.60 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 730.10 Td (For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.58 730.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.17 730.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.61 730.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.61 730.10 Td (, the Company) Tj ET Q q 0 0 0 rg BT 327.99 730.10 Td (s total assets by segment were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 677.60 328.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 677.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 677.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 677.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 647.60 328.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 647.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 647.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 647.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 617.60 328.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 617.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 617.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 617.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 587.60 328.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 587.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 587.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 587.60 90.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 692.6 m 467.5 692.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 692.6 m 561.5 692.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 677.6 m 377.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 572.6 m 467.5 572.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 558.6 m 467.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 556.6 m 467.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 572.6 m 561.5 572.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 558.6 m 561.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 556.6 m 561.5 556.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 697.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.65 697.28 Td (December) Tj ET Q q 0 0 0 rg BT 424.87 697.28 Td ( 31, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.65 697.28 Td (December) Tj ET Q q 0 0 0 rg BT 518.77 697.28 Td ( 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 682.28 Td (T) Tj ET Q q 0 0 0 rg BT 58.21 682.28 Td (otal ) Tj ET Q q 0 0 0 rg BT 76.08 682.28 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.00 682.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.00 682.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 667.27 Td (Domestic of) Tj ET Q q 0 0 0 rg BT 101.06 667.27 Td (fice investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.00 667.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 667.27 Td (130,901) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.00 667.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 667.27 Td (137,407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 652.27 Td (Domestic residential/living investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 652.27 Td (53,344) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 652.27 Td (55,201) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 637.27 Td (Domestic retail investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 637.27 Td (202,093) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 637.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 622.27 Td (Domestic other investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 622.27 Td (76,745) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 622.27 Td (78,182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 607.27 Td (International of) Tj ET Q q 0 0 0 rg BT 113.83 607.27 Td (fice investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 607.27 Td (1) Tj ET Q q 0 0 0 rg BT 436.15 607.27 Td (16,494) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 607.27 Td (99,002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 592.27 Td (International residential/living investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 592.27 Td (121,919) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 592.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 577.27 Td (Corporate-level accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 577.27 Td (7,521) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 577.27 Td (100,553) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 562.28 Td (T) Tj ET Q q 0 0 0 rg BT 57.75 562.28 Td (otal ) Tj ET Q q 0 0 0 rg BT 75.81 562.28 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.00 562.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 562.27 Td (709,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.00 562.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 562.27 Td (470,345) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 534.10 Td (For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.58 534.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.17 534.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.61 534.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.61 534.10 Td (, the Company) Tj ET Q q 0 0 0 rg BT 327.99 534.10 Td (s total assets were attributable to the following countries:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 483.60 328.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 483.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 483.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 483.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 453.60 328.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 453.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 453.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 453.60 90.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 497.6 m 467.5 497.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 497.6 m 561.5 497.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 483.6 m 377.5 483.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.65 502.28 Td (December) Tj ET Q q 0 0 0 rg BT 424.87 502.28 Td ( 31, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.65 502.28 Td (December) Tj ET Q q 0 0 0 rg BT 518.77 502.28 Td ( 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 488.28 Td (T) Tj ET Q q 0 0 0 rg BT 57.75 488.28 Td (otal ) Tj ET Q q 0 0 0 rg BT 75.81 488.28 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 473.27 Td (United States) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 473.27 Td (67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 473.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 473.27 Td (79) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 473.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 458.27 Td (Ireland) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 458.27 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 458.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 458.27 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 458.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 443.27 Td (United Kingdom) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 443.27 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 443.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 443.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 443.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 415.10 Td (For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.58 415.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.17 415.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.17 415.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.17 415.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.61 415.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.61 415.10 Td (, the Company) Tj ET Q q 0 0 0 rg BT 352.99 415.10 Td (s reconciliation to the Company) Tj ET Q q 0 0 0 rg BT 483.52 415.10 Td (s property revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.10 Td (in excess of expenses is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 335.60 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 335.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 335.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 335.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 335.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 335.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 305.60 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 305.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 305.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 305.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 305.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 305.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 275.60 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 275.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 275.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 275.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 275.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 275.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 245.60 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 245.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 245.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 245.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 245.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 245.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 215.60 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 215.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 215.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 215.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 215.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 215.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 185.60 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 185.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 185.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 185.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 185.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 185.60 80.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 365.6 m 395 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 350.6 m 395 350.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395 365.6 m 399 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 365.6 m 479 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 350.6 m 479 350.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 365.6 m 483 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 365.6 m 563 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 350.6 m 563 350.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 335.6 m 315 335.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 170.60000000000002 m 395 170.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 156.60000000000002 m 395 156.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 154.60000000000002 m 395 154.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 170.60000000000002 m 479 170.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 156.60000000000002 m 479 156.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 154.60000000000002 m 479 154.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 170.60000000000002 m 563 170.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 156.60000000000002 m 563 156.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 154.60000000000002 m 563 154.60000000000002 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 370.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.10 370.28 Td (Y) Tj ET Q q 0 0 0 rg BT 387.77 370.28 Td (ears Ended December) Tj ET Q q 0 0 0 rg BT 480.99 370.28 Td ( 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 355.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.50 355.28 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.50 355.28 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 512.50 355.28 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 340.28 Td (Reconciliation to pr) Tj ET Q q 0 0 0 rg BT 136.75 340.28 Td (operty r) Tj ET Q q 0 0 0 rg BT 171.28 340.28 Td (evenue in excess of expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.50 340.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 340.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 325.27 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.50 325.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.30 325.32 Td (\(17,186) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 325.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 325.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.30 325.32 Td (\(1) Tj ET Q q 0 0 0 rg BT 452.63 325.32 Td (1,341) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 325.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.50 325.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 325.32 Td (\(5,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 325.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 310.27 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 310.27 Td (29,687) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 310.27 Td (15,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 310.27 Td (4,207) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 295.27 Td (Acquisition related expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 295.27 Td (3,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 295.27 Td (1,855) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 295.27 Td (2,963) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 280.27 Td (Asset management and acquisition fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 280.27 Td (1) Tj ET Q q 0 0 0 rg BT 368.65 280.27 Td (1,681) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 280.27 Td (6,645) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 280.27 Td (2,640) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 265.27 Td (Performance participation allocation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 265.27 Td (251) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 265.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 265.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 250.27 Td (General and administrative expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 250.27 Td (2,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 250.27 Td (2,044) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 250.27 Td (1,546) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 235.27 Td (\(Gain\) loss on derivative instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 235.27 Td (372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 235.27 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 235.27 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 220.27 Td (Foreign currency \(gains\) losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.80 220.32 Td (\(494) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 220.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 220.27 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 220.27 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 205.27 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 205.27 Td (9,453) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 205.27 Td (3,154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 205.27 Td (1,345) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 190.27 Td (Interest income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.80 190.32 Td (\(83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 190.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.80 190.32 Td (\(69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 190.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 190.32 Td (\(4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 190.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 175.27 Td (\(Benefit\) provision for income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.80 175.32 Td (\(83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 175.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 175.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 175.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 160.27 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 160.27 Td (otal property revenues in excess of expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.50 160.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 160.27 Td (39,613) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 160.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 160.27 Td (17,670) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.50 160.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 160.27 Td (7,1) Tj ET Q q 0 0 0 rg BT 549.15 160.27 Td (12) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 207 0 obj <> endobj 208 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 31.60 Td (101) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (1) Tj ET Q q 0 0 0 rg BT 53.95 742.25 Td (1. SUPPLEMENT) Tj ET Q q 0 0 0 rg BT 134.05 742.25 Td (AL) Tj ET Q q 0 0 0 rg BT 147.39 742.25 Td ( CASH FLOW) Tj ET Q q 0 0 0 rg BT 210.54 742.25 Td ( DISCLOSURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 718.25 Td (Supplemental cash flow disclosures for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.88 718.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.46 718.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.46 718.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.46 718.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.90 718.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.90 718.25 Td ( are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 667.75 334.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 667.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 667.75 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 667.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 667.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 667.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 667.75 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 638.75 334.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 638.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 638.75 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 638.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 638.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 638.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 638.75 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 608.75 334.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 608.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 608.75 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 608.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 608.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 608.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 608.75 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 578.75 334.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 578.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 578.75 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 578.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 578.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 578.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 578.75 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 548.75 334.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 548.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 548.75 56.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 548.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 548.75 55.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 548.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 548.75 56.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 508.75 334.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 508.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 508.75 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 508.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 508.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 508.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 508.75 56.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387 681.75 m 443 681.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 681.75 m 502 681.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 681.75 m 562 681.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.50 686.43 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.00 686.43 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 523.50 686.43 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 672.43 Td (Supplemental Disclosur) Tj ET Q q 0 0 0 rg BT 152.81 672.43 Td (e of Cash Flow Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 657.42 Td (Cash paid for interest) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.50 657.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 657.42 Td (8,577) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 657.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 657.42 Td (2,679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.50 657.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 657.42 Td (1,080) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 643.43 Td (Supplemental Schedule of Non-Cash Investing and Financing ) Tj ET Q q 0 0 0 rg BT 315.17 643.43 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 628.42 Td (Distributions declared and unpaid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.50 628.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 628.42 Td (1,868) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 628.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 628.42 Td (1,195) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.50 628.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 628.42 Td (480) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 613.42 Td (Distributions reinvested) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.50 613.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 613.42 Td (10,162) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 613.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 613.42 Td (4,808) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.50 613.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 613.42 Td (1,248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 598.42 Td (Other receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.50 598.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 598.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 598.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 598.42 Td (1,630) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.50 598.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 598.42 Td (2,950) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 583.42 Td (Non-cash net liabilities assumed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.50 583.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 583.42 Td (5,946) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 583.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 583.42 Td (7,201) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.50 583.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 583.42 Td (470) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 568.42 Td (Assumption of mortgage upon acquisition of property) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.50 568.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 568.42 Td (95,260) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 568.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.15 568.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.50 568.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 568.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 553.42 Td (Of) Tj ET Q q 0 0 0 rg BT 61.96 553.42 Td (fering costs payable to the ) Tj ET Q q 0 0 0 rg BT 169.06 553.42 Td (Advisor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.50 553.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 553.42 Td (943) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 553.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 553.42 Td (735) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.50 553.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 553.42 Td (2,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 538.42 Td (Selling commissions, dealer manager fees and distribution and stockholder) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 528.42 Td (servicing fees payable to the Dealer Manager) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.50 528.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 528.42 Td (3,614) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 528.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 528.42 Td (4,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.50 528.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 528.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 513.42 Td (Equipment acquired under capital lease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.50 513.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 513.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 513.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 513.42 Td (142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.50 513.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 513.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 498.42 Td (Accrued capital additions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.50 498.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 498.42 Td (2,015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 498.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.15 498.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.50 498.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 498.42 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 470.25 Td (12. COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 149.45 470.25 Td (AND CONTINGENCIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 446.25 Td (The Company may be subject to various legal proceedings and claims that arise in the ordinary course of business. ) Tj ET Q q 0 0 0 rg BT 531.31 446.25 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.25 Td (matters are generally covered by insurance. ) Tj ET Q q 0 0 0 rg BT 228.62 434.25 Td (While the resolution of these matters cannot be predicted with certainty) Tj ET Q q 0 0 0 rg BT 513.98 434.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.25 Td (management believes the final outcome of such matters will not have a material adverse ef) Tj ET Q q 0 0 0 rg BT 412.46 422.25 Td (fect on the Company) Tj ET Q q 0 0 0 rg BT 498.82 422.25 Td (s consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.25 Td (financial statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 386.25 Td (13. QUAR) Tj ET Q q 0 0 0 rg BT 96.59 386.25 Td (TERL) Tj ET Q q 0 0 0 rg BT 122.91 386.25 Td (Y) Tj ET Q q 0 0 0 rg BT 129.76 386.25 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 188.37 386.25 Td ( DA) Tj ET Q q 0 0 0 rg BT 204.58 386.25 Td (T) Tj ET Q q 0 0 0 rg BT 210.50 386.25 Td (A) Tj ET Q q 0 0 0 rg BT 217.17 386.25 Td ( \(UNAUDITED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 362.25 Td (The following table presents selected unaudited quarterly financial data for each quarter during the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 350.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.02 350.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.02 350.25 Td ( \(in thousands, except per share information\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 297.75 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.50 297.75 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 297.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 297.75 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 297.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 297.75 93.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.50 297.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 297.75 93.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 267.75 162.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.50 267.75 76.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 267.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 267.75 76.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 267.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 267.75 93.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.50 267.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 267.75 93.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 187.75 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.50 187.75 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 187.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 187.75 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 187.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 187.75 93.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.50 187.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 187.75 93.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 157.75 162.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.50 157.75 76.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.50 157.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 157.75 76.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 157.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 157.75 93.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.50 157.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 157.75 93.00 -25.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 312.75 m 287.5 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 312.75 m 291.5 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 312.75 m 367.5 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 312.75 m 371.5 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 312.75 m 464.5 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 312.75 m 468.5 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 312.75 m 561.5 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 297.75 m 287.5 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 297.75 m 367.5 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 297.75 m 464.5 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 297.75 m 561.5 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 202.75 m 287.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 202.75 m 291.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 202.75 m 367.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 202.75 m 371.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 202.75 m 464.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 202.75 m 468.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 202.75 m 561.5 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 187.75 m 287.5 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 187.75 m 367.5 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 187.75 m 464.5 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 187.75 m 561.5 187.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 317.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.40 317.43 Td (Quarters Ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 302.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 215.90 302.43 Td (Mar) Tj ET Q q 0 0 0 rg BT 234.69 302.43 Td (ch 31, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.95 302.43 Td (June 30, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.75 302.43 Td (September) Tj ET Q q 0 0 0 rg BT 421.76 302.43 Td ( 30, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.15 302.43 Td (December) Tj ET Q q 0 0 0 rg BT 517.37 302.43 Td ( 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 288.32 Td (Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.00 287.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.15 287.42 Td (13,786) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.00 287.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.15 287.42 Td (14,744) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 287.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.15 287.42 Td (15,105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.00 287.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 287.42 Td (16,089) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 272.42 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.00 272.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.80 272.42 Td (\(9,246) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.65 272.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.00 272.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.80 272.47 Td (\(2,108) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 272.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 272.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.80 272.47 Td (\(1,543) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 272.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.00 272.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 272.47 Td (\(4,289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 272.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 258.32 Td (Net income \(loss\) attributable to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 248.32 Td (common stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.00 247.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.80 247.42 Td (\(9,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.65 247.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.00 247.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.80 247.47 Td (\(2,1) Tj ET Q q 0 0 0 rg BT 353.63 247.47 Td (1) Tj ET Q q 0 0 0 rg BT 358.63 247.47 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 247.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 247.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.80 247.47 Td (\(1,546) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 247.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.00 247.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 247.47 Td (\(4,292) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 247.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 233.32 Td (Income \(loss\) per common share,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 223.32 Td (basic and diluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.00 222.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.80 222.42 Td (\(0.32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.65 222.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.00 222.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.80 222.47 Td (\(0.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 222.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 222.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.80 222.47 Td (\(0.04) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 222.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.00 222.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.80 222.47 Td (\(0.1) Tj ET Q q 0 0 0 rg BT 552.63 222.47 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 222.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 207.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.40 207.43 Td (Quarters Ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 192.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 215.90 192.43 Td (Mar) Tj ET Q q 0 0 0 rg BT 234.69 192.43 Td (ch 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.95 192.43 Td (June 30, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.75 192.43 Td (September) Tj ET Q q 0 0 0 rg BT 421.76 192.43 Td ( 30, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.15 192.43 Td (December) Tj ET Q q 0 0 0 rg BT 517.27 192.43 Td ( 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 178.32 Td (Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.00 177.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.15 177.42 Td (3,419) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.00 177.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 177.42 Td (3,865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 177.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 177.42 Td (8,1) Tj ET Q q 0 0 0 rg BT 450.65 177.42 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.00 177.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 177.42 Td (8,952) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 162.42 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.00 162.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.80 162.42 Td (\(1,412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.65 162.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.00 162.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.30 162.47 Td (\(780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 162.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 162.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.80 162.47 Td (\(7,165) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 162.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.00 162.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 162.47 Td (\(1,984) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 162.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 148.32 Td (Net income \(loss\) attributable to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 138.32 Td (common stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.00 137.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.80 137.42 Td (\(1,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.65 137.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.00 137.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.30 137.47 Td (\(783) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 137.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 137.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.80 137.47 Td (\(7,168) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 137.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.00 137.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 137.47 Td (\(1,987) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 137.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 122.42 Td (Income \(loss\) per common share,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 112.42 Td (basic and diluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.00 112.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.80 112.42 Td (\(0.1) Tj ET Q q 0 0 0 rg BT 278.63 112.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.65 112.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.00 112.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.80 112.47 Td (\(0.05) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 112.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 112.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.80 112.47 Td (\(0.36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 112.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.00 112.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.80 112.47 Td (\(0.08) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 112.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 209 0 obj <> endobj 210 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 31.60 Td (102) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (14. SUBSEQUENT) Tj ET Q q 0 0 0 rg BT 134.07 742.25 Td ( EVENTS) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 718.25 Td (2819 Loker ) Tj ET Q q 0 0 0 rg BT 97.65 718.25 Td (A) Tj ET Q q 0 0 0 rg BT 103.21 718.25 Td (venue East) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 694.25 Td (In March 2018, the Company entered into a contract to sell 2819 Loker ) Tj ET Q q 0 0 0 rg BT 354.64 694.25 Td (A) Tj ET Q q 0 0 0 rg BT 361.12 694.25 Td (venue East, a Class ) Tj ET Q q 0 0 0 rg BT 440.27 694.25 Td (A) Tj ET Q q 0 0 0 rg BT 446.94 694.25 Td ( industrial property located ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (in Carlsbad, California. ) Tj ET Q q 0 0 0 rg BT 145.69 682.25 Td (The contract sales price for 2819 Loker ) Tj ET Q q 0 0 0 rg BT 305.34 682.25 Td (A) Tj ET Q q 0 0 0 rg BT 311.82 682.25 Td (venue East is) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.09 682.25 Td ($38.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.98 682.25 Td (. ) Tj ET Q q 0 0 0 rg BT 425.80 682.25 Td (The Company acquired 2819 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (Loker ) Tj ET Q q 0 0 0 rg BT 75.33 670.25 Td (A) Tj ET Q q 0 0 0 rg BT 81.80 670.25 Td (venue East in December 2014 for a purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.71 670.25 Td ($25.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.60 670.25 Td (. ) Tj ET Q q 0 0 0 rg BT 355.05 670.25 Td (Although the Company expects the closing of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (sale to no later than ) Tj ET Q q 0 0 0 rg BT 129.75 658.25 Td (April 2018, there can be no assurances as to if or when this sale will be completed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.50 622.25 Td (*****) Tj ET Q endstream endobj 211 0 obj <> endobj 212 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 31.60 Td (103) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Item9.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 79.99 742.25 Td (Changes in and Disagreements ) Tj ET Q q 0 0 0 rg BT 215.94 742.25 Td (W) Tj ET Q q 0 0 0 rg BT 224.46 742.25 Td (ith ) Tj ET Q q 0 0 0 rg BT 237.71 742.25 Td (Accountants on ) Tj ET Q q 0 0 0 rg BT 304.58 742.25 Td (Accounting and Financial Disclosure) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.25 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (Item9A.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 87.21 694.25 Td (Controls and Procedures) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (Disclosur) Tj ET Q q 0 0 0 rg BT 89.82 670.25 Td (e Contr) Tj ET Q q 0 0 0 rg BT 122.13 670.25 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 165.29 670.25 Td (ocedur) Tj ET Q q 0 0 0 rg BT 194.55 670.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.25 Td (In accordance with Exchange ) Tj ET Q q 0 0 0 rg BT 187.94 646.25 Td (Act Rules13a-15 and 15d-15, we carried out an evaluation, under the supervision and with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (the participation of management, including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 318.34 634.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 430.90 634.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 448.81 634.25 Td (, of the ef) Tj ET Q q 0 0 0 rg BT 486.95 634.25 Td (fectiveness of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, our Chief ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (Executive Of) Tj ET Q q 0 0 0 rg BT 102.85 610.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 215.41 610.25 Td (ficer concluded that our disclosure controls and procedures were ef) Tj ET Q q 0 0 0 rg BT 483.73 610.25 Td (fective as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 598.25 Td (, to provide reasonable assurance that information required to be disclosed in our reports filed or submitted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (under the Exchange ) Tj ET Q q 0 0 0 rg BT 131.36 586.25 Td (Act is \(i\)recorded, processed, summarized and reported within the time periods specified in the Securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (and Exchange Commission) Tj ET Q q 0 0 0 rg BT 162.21 574.25 Td (s rules and forms, and \(ii\)accumulated and communicated to our management, including our Chief ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (Executive Of) Tj ET Q q 0 0 0 rg BT 102.85 562.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 215.41 562.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 233.32 562.25 Td (, as appropriate to allow timely decisions regarding required disclosure.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (Management) Tj ET Q q 0 0 0 rg BT 109.06 538.25 Td (s Report on Internal Contr) Tj ET Q q 0 0 0 rg BT 223.87 538.25 Td (ol Over) Tj ET Q q 0 0 0 rg BT 255.63 538.25 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 514.25 Td (Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (system of internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 454.25 Td (\(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 454.25 Td (pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 442.25 Td (dispositions of our assets;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 418.25 Td (\(ii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 418.25 Td (provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 406.25 Td (statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 394.25 Td (being made only in accordance with authorizations of our management and directors;and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 370.25 Td (\(iii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 370.25 Td (provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 358.25 Td (disposition of our assets that could have a material ef) Tj ET Q q 0 0 0 rg BT 316.26 358.25 Td (fect on the financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 334.25 Td (Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. ) Tj ET Q q 0 0 0 rg BT 538.70 334.25 Td (Also, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (projections of any evaluation of ef) Tj ET Q q 0 0 0 rg BT 187.27 322.25 Td (fectiveness to future periods are subject to the risk that controls may become inadequate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 286.25 Td (Our management) Tj ET Q q 0 0 0 rg BT 139.92 286.25 Td (s assessment of the ef) Tj ET Q q 0 0 0 rg BT 226.38 286.25 Td (fectiveness of our internal control system as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.77 286.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.36 286.25 Td ( was based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 Td (the framework for ef) Tj ET Q q 0 0 0 rg BT 132.83 274.25 Td (fective internal control over financial reporting described in the 2013 Internal Control Integrated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.25 Td (Framework issued by the Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 269.52 262.25 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 342.92 262.25 Td (T) Tj ET Q q 0 0 0 rg BT 348.68 262.25 Td (readway Commission \(COSO\). Based on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.25 Td (assessment, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.10 250.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.68 250.25 Td (, our system of internal control over financial reporting was ef) Tj ET Q q 0 0 0 rg BT 448.03 250.25 Td (fective at the reasonable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 Td (assurance level.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 214.25 Td (This annual report does not include an attestation report of our independent registered public accounting firm regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 Td (control over financial reporting. Management) Tj ET Q q 0 0 0 rg BT 237.71 202.25 Td (s report was not subject to attestation by our independent registered public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 Td (accounting firm pursuant to Item 308\(b\) of Regulation S-K, which only requires such an attestation when the filer is an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (accelerated filer or a lar) Tj ET Q q 0 0 0 rg BT 144.75 178.25 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 220.24 178.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.25 Td (March29, 2018) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 213 0 obj <> endobj 214 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 31.60 Td (104) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Change in Internal Contr) Tj ET Q q 0 0 0 rg BT 158.99 742.25 Td (ols) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.25 Td (No changes have occurred in our internal controls over financial reporting \(asdefined in Rule13a-15\(f\) of the Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.25 Td (Act\) during the three months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.40 706.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.99 706.25 Td ( that have materially af) Tj ET Q q 0 0 0 rg BT 364.99 706.25 Td (fected, or are reasonably likely to materially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.59 694.25 Td (fect, our internal controls over financial reporting.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (Item9B.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 86.66 670.25 Td (Other Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.25 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 285.90 622.25 Td (P) Tj ET Q q 0 0 0 rg BT 291.27 622.25 Td (AR) Tj ET Q q 0 0 0 rg BT 305.36 622.25 Td (T) Tj ET Q q 0 0 0 rg BT 311.85 622.25 Td ( III) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (Item10.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 89.99 598.25 Td (Directors, Executive Of) Tj ET Q q 0 0 0 rg BT 186.73 598.25 Td (ficers and Corporate Governance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 574.25 Td (As of the date of this report, our directors, their ages, their year first elected, their business experience and principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (occupation, their directorships in public corporations and investment companies are as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 505.75 m 144.5 505.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 154.5 505.75 m 178.5 505.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188.5 505.75 m 226.5 505.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 505.75 m 561.5 505.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 510.43 Td (Name) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 157.65 510.43 Td (Age) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 197.05 530.43 Td (Y) Tj ET Q q 0 0 0 rg BT 203.72 530.43 Td (ear) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.70 520.43 Td (First) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 191.15 510.43 Td (Elected) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 246.75 520.43 Td (Business Experience and Principal Occupation; Dir) Tj ET Q q 0 0 0 rg BT 466.30 520.43 Td (ectorships in Public) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.25 510.43 Td (Corporations and Investment Companies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 496.48 Td (Jeffr) Tj ET Q q 0 0 0 rg BT 72.36 496.48 Td (ey C. Hines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.00 496.32 Td (62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.00 496.32 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 496.32 Td (Mr) Tj ET Q q 0 0 0 rg BT 250.67 496.32 Td (. Hines joined Hines in 1982. Mr) Tj ET Q q 0 0 0 rg BT 381.77 496.32 Td (. Hines has served as Chairman of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 486.32 Td (board of directors and Chairman of the managers of the general partner of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 476.32 Td (Advisor since July 2013. Mr) Tj ET Q q 0 0 0 rg BT 352.61 476.32 Td (. Hines also has served as the Chairman of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 466.32 Td (board of directors of Hines Global REIT) Tj ET Q q 0 0 0 rg BT 401.00 466.32 Td ( and Chairman of the managers of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 456.32 Td (general partner of Hines Global REIT) Tj ET Q q 0 0 0 rg BT 390.15 456.32 Td ( ) Tj ET Q q 0 0 0 rg BT 392.10 456.32 Td (Advisors LP) Tj ET Q q 0 0 0 rg BT 441.28 456.32 Td (, the advisor to Hines Global ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 446.32 Td (REIT) Tj ET Q q 0 0 0 rg BT 261.04 446.32 Td ( since December 2008. Mr) Tj ET Q q 0 0 0 rg BT 366.84 446.32 Td (. Hines also has been the Chairman of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 436.32 Td (board of directors of Hines Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 443.76 436.32 Td (T) Tj ET Q q 0 0 0 rg BT 449.51 436.32 Td (rust, Inc. \(Hines REIT\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 426.32 Td (Chairman of the managers of the general partner of HALP) Tj ET Q q 0 0 0 rg BT 472.15 426.32 Td ( ) Tj ET Q q 0 0 0 rg BT 474.10 426.32 Td (Associates Limited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 416.32 Td (Partnership, the advisor to Hines REIT) Tj ET Q q 0 0 0 rg BT 394.35 416.32 Td ( and a member of the management board ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 406.32 Td (of the Hines US Core Of) Tj ET Q q 0 0 0 rg BT 337.97 406.32 Td (fice Fund LP) Tj ET Q q 0 0 0 rg BT 389.82 406.32 Td ( \(Core Fund\), since ) Tj ET Q q 0 0 0 rg BT 477.85 406.32 Td (August 2003. He is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 396.32 Td (also the co-owner and President and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 463.75 396.32 Td (ficer of the general ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 386.32 Td (partner of Hines and is a member of Hines) Tj ET Q q 0 0 0 rg BT 411.53 386.32 Td ( Executive Committee. Mr) Tj ET Q q 0 0 0 rg BT 517.62 386.32 Td (. Hines is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 376.32 Td (responsible for overseeing all firm policies and procedures as well as day-to-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 366.32 Td (day operations of Hines. He became President of the general partner of Hines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 356.32 Td (in 1990 and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 366.29 356.32 Td (ficer of the general partner of Hines in January ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 346.32 Td (2008 and has overseen a major expansion of the firm) Tj ET Q q 0 0 0 rg BT 453.66 346.32 Td (s personnel, financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 336.32 Td (resources, domestic and foreign market penetration, products and services. He ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 326.32 Td (has been a major participant in the development of the Hines domestic and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 316.32 Td (international acquisition program and currently oversees a portfolio of $96.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 306.32 Td (billion in assets under management. Mr) Tj ET Q q 0 0 0 rg BT 396.75 306.32 Td (. Hines graduated from ) Tj ET Q q 0 0 0 rg BT 491.26 306.32 Td (W) Tj ET Q q 0 0 0 rg BT 500.30 306.32 Td (illiams ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 296.32 Td (College with a B.A. in Economics and received his M.B.A. from the Harvard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 286.32 Td (Business School.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 266.32 Td (W) Tj ET Q q 0 0 0 rg BT 247.64 266.32 Td (e believe that Mr) Tj ET Q q 0 0 0 rg BT 315.11 266.32 Td (. Hines) Tj ET Q q 0 0 0 rg BT 346.03 266.32 Td ( career) Tj ET Q q 0 0 0 rg BT 372.54 266.32 Td (, spanning more than 35 years in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 256.32 Td (commercial real estate industry) Tj ET Q q 0 0 0 rg BT 363.58 256.32 Td (, and the depth of his knowledge of Hines and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 246.32 Td (its af) Tj ET Q q 0 0 0 rg BT 258.54 246.32 Td (filiates qualify him to serve as Chairman of our board of directors.) Tj ET Q endstream endobj 215 0 obj <> endobj 216 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 31.60 Td (105) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 714.5 m 144.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 154.5 714.5 m 178.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188.5 714.5 m 226.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 714.5 m 561.5 714.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 719.18 Td (Name) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 157.65 719.18 Td (Age) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 197.05 739.18 Td (Y) Tj ET Q q 0 0 0 rg BT 203.72 739.18 Td (ear) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.70 729.18 Td (First) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 191.15 719.18 Td (Elected) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 246.75 729.18 Td (Business Experience and Principal Occupation; Dir) Tj ET Q q 0 0 0 rg BT 466.30 729.18 Td (ectorships in Public) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.25 719.18 Td (Corporations and Investment Companies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 705.23 Td (Charles M. Baughn) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.00 705.07 Td (63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.00 705.07 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 705.07 Td (Mr) Tj ET Q q 0 0 0 rg BT 250.67 705.07 Td (. Baughn joined Hines in 1984. Mr) Tj ET Q q 0 0 0 rg BT 389.55 705.07 Td (. Baughn has served as a member of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 695.07 Td (board of directors and as a manager of the general partner of our ) Tj ET Q q 0 0 0 rg BT 498.61 695.07 Td (Advisor since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 685.07 Td (July 2013. Mr) Tj ET Q q 0 0 0 rg BT 297.34 685.07 Td (. Baughn also has served as a member of the board of directors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 675.07 Td (of Hines Global REIT) Tj ET Q q 0 0 0 rg BT 327.41 675.07 Td ( and as a member of the general partner of its advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 665.07 Td (since December 2008. Mr) Tj ET Q q 0 0 0 rg BT 344.80 665.07 Td (. Baughn also has been a member of the board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 655.07 Td (directors of Hines REIT) Tj ET Q q 0 0 0 rg BT 335.18 655.07 Td ( since ) Tj ET Q q 0 0 0 rg BT 360.18 655.07 Td (April 2008 and a manager of the general partner ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 645.07 Td (of its advisor since ) Tj ET Q q 0 0 0 rg BT 316.21 645.07 Td (August 2003. Mr) Tj ET Q q 0 0 0 rg BT 386.77 645.07 Td (. Baughn also served as Chief Executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 635.07 Td (Of) Tj ET Q q 0 0 0 rg BT 249.37 635.07 Td (ficer of Hines REIT) Tj ET Q q 0 0 0 rg BT 328.88 635.07 Td ( from ) Tj ET Q q 0 0 0 rg BT 352.77 635.07 Td (August 2003 through ) Tj ET Q q 0 0 0 rg BT 439.72 635.07 Td (April 1, 2008. He has served ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 625.07 Td (as the Senior Managing Director and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 463.76 625.07 Td (ficer of the general ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 615.07 Td (partner of Hines since 2012. In this role, he is responsible for overseeing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 605.07 Td (Hines) Tj ET Q q 0 0 0 rg BT 264.92 605.07 Td ( operating business including central services, balance sheet-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 595.07 Td (activities and bank and other debt financing. Previously) Tj ET Q q 0 0 0 rg BT 463.57 595.07 Td (, he also has served as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 585.07 Td (an Executive ) Tj ET Q q 0 0 0 rg BT 293.24 585.07 Td (V) Tj ET Q q 0 0 0 rg BT 299.86 585.07 Td (ice President and CEO-Capital Markets Group of the general ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 575.07 Td (partner of Hines from ) Tj ET Q q 0 0 0 rg BT 327.86 575.07 Td (April 2001 through 2012 and, as such, was responsible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 565.07 Td (for overseeing Hines) Tj ET Q q 0 0 0 rg BT 324.89 565.07 Td ( capital markets group, which raises, places and manages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 555.07 Td (equity and debt for Hines projects in the U.S. and internationally) Tj ET Q q 0 0 0 rg BT 497.18 555.07 Td (, Mr) Tj ET Q q 0 0 0 rg BT 513.85 555.07 Td (. Baughn ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 545.07 Td (is also a member of Hines) Tj ET Q q 0 0 0 rg BT 345.73 545.07 Td ( Executive Committee and a director of our Dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 535.07 Td (Manager) Tj ET Q q 0 0 0 rg BT 273.99 535.07 Td (. Until May 2015, Mr) Tj ET Q q 0 0 0 rg BT 362.04 535.07 Td (. Baughn also served as the Chief Executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 525.07 Td (Of) Tj ET Q q 0 0 0 rg BT 249.37 525.07 Td (ficer of our Dealer Manager) Tj ET Q q 0 0 0 rg BT 360.98 525.07 Td (. Mr) Tj ET Q q 0 0 0 rg BT 377.65 525.07 Td (. Baughn has also been a member of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 515.07 Td (management board of the Core Fund since 2003. During his tenure at Hines, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 505.07 Td (he also has contributed to the development or redevelopment of over 9 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 495.07 Td (square feet of of) Tj ET Q q 0 0 0 rg BT 304.06 495.07 Td (fice and special use facilities in the southwestern United States. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 485.07 Td (He graduated from the New ) Tj ET Q q 0 0 0 rg BT 352.75 485.07 Td (Y) Tj ET Q q 0 0 0 rg BT 358.97 485.07 Td (ork State College of Ceramics at ) Tj ET Q q 0 0 0 rg BT 491.16 485.07 Td (Alfred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 475.07 Td (University with a B.A. and received his M.B.A. from the University of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 465.07 Td (Colorado. Mr) Tj ET Q q 0 0 0 rg BT 292.89 465.07 Td (. Baughn holds Series 7, 24 and 63 securities licenses.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 445.07 Td (W) Tj ET Q q 0 0 0 rg BT 247.64 445.07 Td (e believe that Mr) Tj ET Q q 0 0 0 rg BT 315.11 445.07 Td (. Baughn) Tj ET Q q 0 0 0 rg BT 354.00 445.07 Td (s experience in the commercial real estate industry ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 435.07 Td (acquired during his more than 33-year career with Hines, including his ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 425.07 Td (familiarity with Hines) Tj ET Q q 0 0 0 rg BT 329.90 425.07 Td ( financial and investment policies, qualifies him to serve ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 415.07 Td (on our board of directors.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 385.23 Td (Humberto Burt) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 375.23 Td (Cabaas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.00 385.07 Td (70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.00 385.07 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 385.07 Td (Mr) Tj ET Q q 0 0 0 rg BT 250.67 385.07 Td (. Cabaas has served as one of our independent directors since July 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 375.07 Td (Mr) Tj ET Q q 0 0 0 rg BT 250.67 375.07 Td (. Cabaas is the Founder and Chairman of Benchmark Hospitality ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 365.07 Td (International, where he oversees Benchmark) Tj ET Q q 0 0 0 rg BT 419.76 365.07 Td (s diverse portfolio, a position he ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 355.07 Td (has held since 1987. He also served as Chief Executive Of) Tj ET Q q 0 0 0 rg BT 474.86 355.07 Td (ficer at Benchmark ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 345.07 Td (from 1987 to 2013. Prior to his current position, he served as a Senior ) Tj ET Q q 0 0 0 rg BT 522.94 345.07 Td (V) Tj ET Q q 0 0 0 rg BT 529.56 345.07 Td (ice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 335.07 Td (President and in various other positions at ) Tj ET Q q 0 0 0 rg BT 409.07 335.07 Td (The ) Tj ET Q q 0 0 0 rg BT 426.94 335.07 Td (W) Tj ET Q q 0 0 0 rg BT 435.58 335.07 Td (oodlands Corporation, where ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 325.07 Td (he oversaw all hospitality operations. He presently serves as director on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 315.07 Td (Foundation Board of Florida International University and previously served as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 305.07 Td (Chairman of the Industry ) Tj ET Q q 0 0 0 rg BT 341.76 305.07 Td (Advisory Board for the Chaplin School of Hospitality ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 295.07 Td (& ) Tj ET Q q 0 0 0 rg BT 249.10 295.07 Td (T) Tj ET Q q 0 0 0 rg BT 254.51 295.07 Td (ourism Management at Florida International University) Tj ET Q q 0 0 0 rg BT 475.75 295.07 Td (. Mr) Tj ET Q q 0 0 0 rg BT 494.92 295.07 Td (. Cabaas is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 285.07 Td (also a founding board member and was the president of the International ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 275.07 Td (Association of Conference Centers \(IACC\). He is a graduate of Florida ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 265.07 Td (International University with a Bachelor) Tj ET Q q 0 0 0 rg BT 400.99 265.07 Td () Tj ET Q q 0 0 0 rg BT 403.77 265.07 Td (s degree in Hotel and Restaurant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 255.07 Td (Management.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 235.07 Td (W) Tj ET Q q 0 0 0 rg BT 247.64 235.07 Td (e believe Mr) Tj ET Q q 0 0 0 rg BT 297.62 235.07 Td (. Cabaas) Tj ET Q q 0 0 0 rg BT 339.08 235.07 Td ( significant and deep experience in the hotel and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 225.07 Td (hospitality industry and the real estate aspects of that industry makes him well-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 215.07 Td (qualified to serve as one of our directors.) Tj ET Q endstream endobj 217 0 obj <> endobj 218 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 31.60 Td (106) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 713.5 m 144.5 713.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 154.5 713.5 m 178.5 713.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188.5 713.5 m 226.5 713.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236.5 713.5 m 561.5 713.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 718.18 Td (Name) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 157.65 718.18 Td (Age) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 197.05 738.18 Td (Y) Tj ET Q q 0 0 0 rg BT 203.72 738.18 Td (ear) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.70 728.18 Td (First) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 191.15 718.18 Td (Elected) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 246.75 728.18 Td (Business Experience and Principal Occupation; Dir) Tj ET Q q 0 0 0 rg BT 466.30 728.18 Td (ectorships in Public) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.25 718.18 Td (Corporations and Investment Companies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 704.23 Td (Dougal ) Tj ET Q q 0 0 0 rg BT 84.51 704.23 Td (A. Camer) Tj ET Q q 0 0 0 rg BT 125.98 704.23 Td (on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.00 704.07 Td (59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.00 704.07 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 704.07 Td (Mr) Tj ET Q q 0 0 0 rg BT 250.67 704.07 Td (. Cameron has served as one of our independent directors since July 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 694.07 Td (Mr) Tj ET Q q 0 0 0 rg BT 250.67 694.07 Td (. Cameron is President and Owner of Cameron Management, a position he ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 684.07 Td (has held since his founding of the firm in 1995. Cameron Management is a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 674.07 Td (firm that owns, finances, leases, and manages all of its of) Tj ET Q q 0 0 0 rg BT 467.36 674.07 Td (fice buildings in an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 664.07 Td (integrated fashion. From 1991-1994, Mr) Tj ET Q q 0 0 0 rg BT 402.59 664.07 Td (. Cameron was an owner and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 654.07 Td (investment manager of ) Tj ET Q q 0 0 0 rg BT 332.96 654.07 Td (VNSM Inc., an investment management firm with over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 644.07 Td ($1 billion in assets under management. Prior to this time, he was an accountant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 634.07 Td (with ) Tj ET Q q 0 0 0 rg BT 258.73 634.07 Td (Arthur ) Tj ET Q q 0 0 0 rg BT 287.52 634.07 Td (Y) Tj ET Q q 0 0 0 rg BT 293.74 634.07 Td (oung & Company \(now Ernst & ) Tj ET Q q 0 0 0 rg BT 424.47 634.07 Td (Y) Tj ET Q q 0 0 0 rg BT 430.69 634.07 Td (oung\), and he worked as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 624.07 Td (asset and project manager for Hines from 1985 to 1991. ) Tj ET Q q 0 0 0 rg BT 466.72 624.07 Td (Additionally) Tj ET Q q 0 0 0 rg BT 516.62 624.07 Td (, he was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 614.07 Td (on the board of Mosher Inc., a private, closed-end mutual fund from 1992 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 604.07 Td (1997. Mr) Tj ET Q q 0 0 0 rg BT 278.17 604.07 Td (. Cameron holds a bachelor) Tj ET Q q 0 0 0 rg BT 388.23 604.07 Td () Tj ET Q q 0 0 0 rg BT 391.01 604.07 Td (s degree in ) Tj ET Q q 0 0 0 rg BT 436.27 604.07 Td (Accounting from ) Tj ET Q q 0 0 0 rg BT 507.18 604.07 Td (T) Tj ET Q q 0 0 0 rg BT 512.59 604.07 Td (exas ) Tj ET Q q 0 0 0 rg BT 532.68 604.07 Td (T) Tj ET Q q 0 0 0 rg BT 538.09 604.07 Td (ech ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 594.07 Td (University and an M.B.A. from Harvard Business School.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 574.07 Td (W) Tj ET Q q 0 0 0 rg BT 247.64 574.07 Td (e believe that Mr) Tj ET Q q 0 0 0 rg BT 315.11 574.07 Td (. Cameron is well-qualified to serve as one of our directors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 564.07 Td (due to his background in running a real estate firm since 1995 and his extensive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 554.07 Td (experience in owning, leasing and managing of) Tj ET Q q 0 0 0 rg BT 427.93 554.07 Td (fice buildings as the company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 544.07 Td (intends to make investments in of) Tj ET Q q 0 0 0 rg BT 373.52 544.07 Td (fice buildings along with other real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 534.07 Td (product types.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 504.23 Td (John O. Niemann, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 494.23 Td (Jr) Tj ET Q q 0 0 0 rg BT 60.52 494.23 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.00 504.07 Td (61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.00 504.07 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 504.07 Td (Mr) Tj ET Q q 0 0 0 rg BT 250.67 504.07 Td (. Niemann has served as one of our independent directors since July 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 494.07 Td (In addition, he has served as an independent director of HMS, which is a non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 484.07 Td (listed public business development company that is co-sponsored by Hines, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 474.07 Td (since May 2012 and currently serves as the Chairman of the ) Tj ET Q q 0 0 0 rg BT 480.88 474.07 Td (Audit Committee. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 464.07 Td (He previously served as a director and Chairman of the ) Tj ET Q q 0 0 0 rg BT 461.71 464.07 Td (Audit Committee of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 454.07 Td (Gateway Ener) Tj ET Q q 0 0 0 rg BT 295.73 454.07 Td (gy Corporation from June 2010 until December 2013 \(when the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 444.07 Td (company went private\). Since June 2013, he has served as a Managing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 434.07 Td (Director of ) Tj ET Q q 0 0 0 rg BT 285.09 434.07 Td (Andersen ) Tj ET Q q 0 0 0 rg BT 325.73 434.07 Td (T) Tj ET Q q 0 0 0 rg BT 331.14 434.07 Td (ax LLC \(formerly known as ) Tj ET Q q 0 0 0 rg BT 445.66 434.07 Td (WT) Tj ET Q q 0 0 0 rg BT 460.40 434.07 Td (AS LLC\). He is also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 424.07 Td (the president and chief operating of) Tj ET Q q 0 0 0 rg BT 380.71 424.07 Td (ficer of ) Tj ET Q q 0 0 0 rg BT 411.80 424.07 Td (Arthur ) Tj ET Q q 0 0 0 rg BT 440.41 424.07 Td (Andersen LLP) Tj ET Q q 0 0 0 rg BT 497.90 424.07 Td (, and has been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 414.07 Td (since 2003. He previously served on the administrative board of ) Tj ET Q q 0 0 0 rg BT 499.49 414.07 Td (Arthur ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 404.07 Td (Andersen LLP) Tj ET Q q 0 0 0 rg BT 297.23 404.07 Td ( and on the board of partners of ) Tj ET Q q 0 0 0 rg BT 424.97 404.07 Td (Andersen ) Tj ET Q q 0 0 0 rg BT 465.61 404.07 Td (W) Tj ET Q q 0 0 0 rg BT 474.24 404.07 Td (orldwide. He began ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 394.07 Td (his career at ) Tj ET Q q 0 0 0 rg BT 289.25 394.07 Td (Arthur ) Tj ET Q q 0 0 0 rg BT 317.86 394.07 Td (Andersen LLP) Tj ET Q q 0 0 0 rg BT 376.08 394.07 Td ( in 1978 and has served in increasing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 384.07 Td (responsibilities in senior management positions, since 1992. Mr) Tj ET Q q 0 0 0 rg BT 496.19 384.07 Td (. Niemann has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 374.07 Td (served on the board of directors of many Houston area non-profit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 364.07 Td (or) Tj ET Q q 0 0 0 rg BT 247.15 364.07 Td (ganizations, including Strake Jesuit College Preparatory School \(past chair of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 354.07 Td (the board\), ) Tj ET Q q 0 0 0 rg BT 284.63 354.07 Td (The Regis School of the Sacred Heart \(past chair of the board\), ) Tj ET Q q 0 0 0 rg BT 539.09 354.07 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 344.07 Td (Houston Symphony) Tj ET Q q 0 0 0 rg BT 318.08 344.07 Td (, ) Tj ET Q q 0 0 0 rg BT 322.90 344.07 Td (The University of St. ) Tj ET Q q 0 0 0 rg BT 409.65 344.07 Td (Thomas, ) Tj ET Q q 0 0 0 rg BT 446.69 344.07 Td (The ) Tj ET Q q 0 0 0 rg BT 464.19 344.07 Td (Alley ) Tj ET Q q 0 0 0 rg BT 488.72 344.07 Td (Theatre and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 334.07 Td (T) Tj ET Q q 0 0 0 rg BT 244.41 334.07 Td (aping for the Blind, Inc. He graduated with a bachelor of arts in managerial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 324.07 Td (studies \(magna cum laude\) and a masters in accounting from Rice University) Tj ET Q q 0 0 0 rg BT 546.87 324.07 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 314.07 Td (received a juris doctor \(summa cum laude\) from the South ) Tj ET Q q 0 0 0 rg BT 474.86 314.07 Td (T) Tj ET Q q 0 0 0 rg BT 480.27 314.07 Td (exas College of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 304.07 Td (Law) Tj ET Q q 0 0 0 rg BT 256.12 304.07 Td (, and a master of law in taxation \(summa cum laude\) from the University ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 294.07 Td (of San Francisco School of Law) Tj ET Q q 0 0 0 rg BT 366.93 294.07 Td (. ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 274.07 Td (W) Tj ET Q q 0 0 0 rg BT 247.64 274.07 Td (e believe Mr) Tj ET Q q 0 0 0 rg BT 297.62 274.07 Td (. Niemann) Tj ET Q q 0 0 0 rg BT 342.05 274.07 Td (s significant experience in the public accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 264.07 Td (industry) Tj ET Q q 0 0 0 rg BT 271.13 264.07 Td (, including over 40 years in various capacities at ) Tj ET Q q 0 0 0 rg BT 466.07 264.07 Td (Arthur ) Tj ET Q q 0 0 0 rg BT 494.68 264.07 Td (Andersen LLP) Tj ET Q q 0 0 0 rg BT 552.91 264.07 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 254.07 Td (makes him well qualified to serve as one of our directors and as the audit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 244.07 Td (committee financial expert. Drawing on this experience, Mr) Tj ET Q q 0 0 0 rg BT 480.58 244.07 Td (. Niemann is able ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 234.07 Td (to provide valuable insights regarding our investment strategies, internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 224.07 Td (controls, and financial reporting. In addition, through his experience serving ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 214.07 Td (on the board of directors of other public companies, Mr) Tj ET Q q 0 0 0 rg BT 460.61 214.07 Td (. Niemann has previous ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 204.07 Td (experience in the requirements of serving on a public company board.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 219 0 obj <> endobj 220 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 31.60 Td (107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (As of the date of this report, our executive of) Tj ET Q q 0 0 0 rg BT 247.76 742.10 Td (ficers, their ages and their experiences are as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 717.6 m 201.5 717.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210.5 717.6 m 239.5 717.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 717.6 m 561.5 717.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 722.28 Td (Name and ) Tj ET Q q 0 0 0 rg BT 97.93 722.28 Td (T) Tj ET Q q 0 0 0 rg BT 104.42 722.28 Td (itle) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.15 722.28 Td (Age) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.10 722.28 Td (Experience) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 708.33 Td (Sherri ) Tj ET Q q 0 0 0 rg BT 81.54 708.33 Td (W) Tj ET Q q 0 0 0 rg BT 90.62 708.33 Td (. Schugart,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 697.33 Td (Pr) Tj ET Q q 0 0 0 rg BT 62.37 697.33 Td (esident and Chief Executive ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 687.33 Td (Officer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.50 708.17 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 708.17 Td (Ms. Schugart joined Hines in 1995. Ms. Schugart has served as President) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 698.17 Td (and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 346.51 698.17 Td (ficer for us and for the general partner of our) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 688.17 Td (Advisor since ) Tj ET Q q 0 0 0 rg BT 309.22 688.17 Td (August 2013. Ms. Schugart also has served as President and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 678.17 Td (Chief Executive Of) Tj ET Q q 0 0 0 rg BT 329.57 678.17 Td (ficer for Hines Global REIT) Tj ET Q q 0 0 0 rg BT 442.13 678.17 Td ( and for the general partner) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 668.17 Td (of its ) Tj ET Q q 0 0 0 rg BT 274.23 668.17 Td (Advisor since March 2013. ) Tj ET Q q 0 0 0 rg BT 387.54 668.17 Td (Additionally) Tj ET Q q 0 0 0 rg BT 437.44 668.17 Td (, since March 2013, Ms.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 658.17 Td (Schugart also has served as President and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 498.14 658.17 Td (ficer for Hines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 648.17 Td (REIT) Tj ET Q q 0 0 0 rg BT 273.47 648.17 Td (, the general partner of its ) Tj ET Q q 0 0 0 rg BT 378.16 648.17 Td (Advisor and the Core Fund. In February) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 638.17 Td (2016, Ms. Schugart was appointed a member of Hines) Tj ET Q q 0 0 0 rg BT 471.77 638.17 Td ( Executive) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 628.17 Td (Committee. In these roles, Ms. Schugart is responsible for the overall) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 618.17 Td (management of each funds) Tj ET Q q 0 0 0 rg BT 362.04 618.17 Td ( business strategy and operations in the U.S. and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 608.17 Td (internationally) Tj ET Q q 0 0 0 rg BT 309.67 608.17 Td (. ) Tj ET Q q 0 0 0 rg BT 316.61 608.17 Td (Also since March 2013, Ms. Schugart has served as the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 598.17 Td (President and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 386.22 598.17 Td (ficer of HMS and HMS ) Tj ET Q q 0 0 0 rg BT 482.61 598.17 Td (Adviser GP) Tj ET Q q 0 0 0 rg BT 529.18 598.17 Td ( LLC,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 588.17 Td (the general partner of the adviser to HMS. ) Tj ET Q q 0 0 0 rg BT 425.28 588.17 Td (Additionally) Tj ET Q q 0 0 0 rg BT 475.18 588.17 Td (, in February 2014,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 578.17 Td (Ms. Schugart was appointed as the Chairperson of the board of directors of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 568.17 Td (HMS. HMS is a public specialty finance company sponsored by Hines,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 558.17 Td (which was formed in 201) Tj ET Q q 0 0 0 rg BT 353.27 558.17 Td (1 and intends to make debt and equity investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 548.17 Td (in companies with revenues generally between $10 million and $3 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 538.17 Td (that operate in diverse industries. Prior to March 2013, Ms. Schugart had) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 528.17 Td (served as the Chief Operating Of) Tj ET Q q 0 0 0 rg BT 383.72 528.17 Td (ficer for Hines Global REIT) Tj ET Q q 0 0 0 rg BT 496.28 528.17 Td ( and the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 518.17 Td (general partner of its advisor and as the Chief Operating Of) Tj ET Q q 0 0 0 rg BT 489.51 518.17 Td (ficer of Hines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 508.17 Td (REIT) Tj ET Q q 0 0 0 rg BT 273.47 508.17 Td (, the general partner of its advisor and the Core Fund since November) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 498.17 Td (201) Tj ET Q q 0 0 0 rg BT 266.63 498.17 Td (1. In these roles, Ms. Schugart was responsible for the execution of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 488.17 Td (each entity) Tj ET Q q 0 0 0 rg BT 298.37 488.17 Td (s business plan and oversight of day-to-day business operations,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 478.17 Td (including issues related to portfolio strategy) Tj ET Q q 0 0 0 rg BT 427.15 478.17 Td (, asset management and all other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 468.17 Td (operational and financial matters of each entity) Tj ET Q q 0 0 0 rg BT 439.60 468.17 Td (. Ms. Schugart also served) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 458.17 Td (as Chief Financial Of) Tj ET Q q 0 0 0 rg BT 337.63 458.17 Td (ficer for Hines Global REIT) Tj ET Q q 0 0 0 rg BT 450.19 458.17 Td ( and the general partner of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 448.17 Td (its advisor from inception in December 2008 through October 201) Tj ET Q q 0 0 0 rg BT 516.84 448.17 Td (1. Ms.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 438.17 Td (Schugart also served as the Chief Financial Of) Tj ET Q q 0 0 0 rg BT 437.60 438.17 Td (ficer for Hines REIT) Tj ET Q q 0 0 0 rg BT 520.44 438.17 Td ( and the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 428.17 Td (general partner of its advisor from ) Tj ET Q q 0 0 0 rg BT 390.84 428.17 Td (August 2003 through October 201) Tj ET Q q 0 0 0 rg BT 527.68 428.17 Td (1 and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 418.17 Td (as the Chief Financial Of) Tj ET Q q 0 0 0 rg BT 352.35 418.17 Td (ficer of the Core Fund from July 2004 through) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 408.17 Td (October 201) Tj ET Q q 0 0 0 rg BT 301.34 408.17 Td (1. In these roles, her responsibilities included oversight of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 398.17 Td (financial and portfolio management, equity and debt financing activities,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 388.17 Td (investor relations, accounting, financial reporting, compliance and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 378.17 Td (administrative functions in the U.S. and internationally) Tj ET Q q 0 0 0 rg BT 471.31 378.17 Td (. She has also been a) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 368.17 Td (Senior Managing Director of the general partner of Hines since October) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 358.17 Td (2007 and has served as a director of the Dealer Manager since ) Tj ET Q q 0 0 0 rg BT 502.45 358.17 Td (August 2003.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 348.17 Td (Prior to holding these positions, she was a ) Tj ET Q q 0 0 0 rg BT 422.64 348.17 Td (V) Tj ET Q q 0 0 0 rg BT 429.26 348.17 Td (ice President in Hines Capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 338.17 Td (Markets Group raising equity and debt financing for various Hines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 328.17 Td (investment vehicles in the U.S. and internationally) Tj ET Q q 0 0 0 rg BT 453.53 328.17 Td (. Ms. Schugart has been) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 318.17 Td (responsible for arranging and managing more than $10 billion in equity and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 308.17 Td (debt for Hines) Tj ET Q q 0 0 0 rg BT 311.79 308.17 Td ( public and private investment funds. Prior to joining Hines,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 298.17 Td (Ms. Schugart spent eight years with ) Tj ET Q q 0 0 0 rg BT 397.26 298.17 Td (Arthur ) Tj ET Q q 0 0 0 rg BT 425.87 298.17 Td (Andersen LLP) Tj ET Q q 0 0 0 rg BT 483.36 298.17 Td (, where she served) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 288.17 Td (both public and private clients in the real estate, construction, finance and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 278.17 Td (banking industries. She holds a Bachelor of Business ) Tj ET Q q 0 0 0 rg BT 468.65 278.17 Td (Administration) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 268.17 Td (degree in ) Tj ET Q q 0 0 0 rg BT 290.87 268.17 Td (Accounting from Southwest ) Tj ET Q q 0 0 0 rg BT 405.96 268.17 Td (T) Tj ET Q q 0 0 0 rg BT 411.37 268.17 Td (exas State University) Tj ET Q q 0 0 0 rg BT 495.70 268.17 Td (.) Tj ET Q endstream endobj 221 0 obj <> endobj 222 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 31.60 Td (108) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 734.5 m 201.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210.5 734.5 m 239.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 734.5 m 561.5 734.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 739.18 Td (Name and ) Tj ET Q q 0 0 0 rg BT 97.93 739.18 Td (T) Tj ET Q q 0 0 0 rg BT 104.42 739.18 Td (itle) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.15 739.18 Td (Age) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.10 739.18 Td (Experience) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 725.23 Td (R) Tj ET Q q 0 0 0 rg BT 58.87 725.23 Td (yan ) Tj ET Q q 0 0 0 rg BT 76.75 725.23 Td (T) Tj ET Q q 0 0 0 rg BT 82.68 725.23 Td (. Sims,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 714.23 Td (Chief Financial Officer) Tj ET Q q 0 0 0 rg BT 150.69 714.23 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 704.23 Td (Secr) Tj ET Q q 0 0 0 rg BT 70.70 704.23 Td (etary) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.50 725.07 Td (46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 725.07 Td (Mr) Tj ET Q q 0 0 0 rg BT 263.95 725.07 Td (. Sims joined Hines in ) Tj ET Q q 0 0 0 rg BT 354.51 725.07 Td (August 2003. Mr) Tj ET Q q 0 0 0 rg BT 425.07 725.07 Td (. Sims has served as Chief) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 715.07 Td (Financial Of) Tj ET Q q 0 0 0 rg BT 302.17 715.07 Td (ficer and Secretary for us and the general partner of our) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 705.07 Td (Advisor since ) Tj ET Q q 0 0 0 rg BT 309.49 705.07 Td (August 2013. Since November 201) Tj ET Q q 0 0 0 rg BT 452.35 705.07 Td (1, Mr) Tj ET Q q 0 0 0 rg BT 474.11 705.07 Td (. Sims has served as) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 695.07 Td (Chief Financial Of) Tj ET Q q 0 0 0 rg BT 326.89 695.07 Td (ficer and Secretary for Hines Global REIT) Tj ET Q q 0 0 0 rg BT 496.64 695.07 Td ( and the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 685.07 Td (general partner of its ) Tj ET Q q 0 0 0 rg BT 337.24 685.07 Td (Advisor) Tj ET Q q 0 0 0 rg BT 368.91 685.07 Td (. Since November 201) Tj ET Q q 0 0 0 rg BT 460.37 685.07 Td (1, Mr) Tj ET Q q 0 0 0 rg BT 482.13 685.07 Td (. Sims also has) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 675.07 Td (served as Chief Financial Of) Tj ET Q q 0 0 0 rg BT 366.32 675.07 Td (ficer and Secretary of Hines REIT) Tj ET Q q 0 0 0 rg BT 502.74 675.07 Td (, the general) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 665.07 Td (partner of its ) Tj ET Q q 0 0 0 rg BT 305.32 665.07 Td (Advisor and the Core Fund. ) Tj ET Q q 0 0 0 rg BT 421.14 665.07 Td (Also since 201) Tj ET Q q 0 0 0 rg BT 480.12 665.07 Td (1, Mr) Tj ET Q q 0 0 0 rg BT 501.88 665.07 Td (. Sims has) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 655.07 Td (served as the Chief Financial Of) Tj ET Q q 0 0 0 rg BT 381.04 655.07 Td (ficer and Secretary of HMS and of the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 645.07 Td (general partner of the adviser to HMS. In these positions, Mr) Tj ET Q q 0 0 0 rg BT 498.06 645.07 Td (. Sims is) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 635.07 Td (responsible for the oversight of financial operations, equity and debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 625.07 Td (financing activities, investor relations, accounting, financial reporting, tax,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 615.07 Td (legal, compliance and administrative functions in the U.S. and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 605.07 Td (internationally) Tj ET Q q 0 0 0 rg BT 309.99 605.07 Td (. Prior to this time, Mr) Tj ET Q q 0 0 0 rg BT 401.61 605.07 Td (. Sims served as the Chief ) Tj ET Q q 0 0 0 rg BT 507.43 605.07 Td (Accounting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 595.07 Td (Of) Tj ET Q q 0 0 0 rg BT 262.46 595.07 Td (ficer for Hines Global REIT) Tj ET Q q 0 0 0 rg BT 375.02 595.07 Td ( and the general partner of its ) Tj ET Q q 0 0 0 rg BT 494.33 595.07 Td (Advisor since) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 585.07 Td (their inception in December 2008. Mr) Tj ET Q q 0 0 0 rg BT 405.85 585.07 Td (. Sims also served as the Chief) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 575.07 Td (Accounting Of) Tj ET Q q 0 0 0 rg BT 311.62 575.07 Td (ficer for Hines REIT) Tj ET Q q 0 0 0 rg BT 394.18 575.07 Td (, the general partner of its ) Tj ET Q q 0 0 0 rg BT 498.77 575.07 Td (Advisor and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 565.07 Td (the Core Fund since ) Tj ET Q q 0 0 0 rg BT 334.49 565.07 Td (April 2008. In these roles, he was responsible for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 555.07 Td (oversight of the accounting, financial reporting and SEC reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 545.07 Td (functions, as well as the Sarbanes-Oxley compliance program in the U.S.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 535.07 Td (and internationally) Tj ET Q q 0 0 0 rg BT 326.93 535.07 Td (. He was also responsible for establishing the companies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 525.07 Td (accounting policies and ensuring compliance with those policies in the U.S.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 515.07 Td (and internationally) Tj ET Q q 0 0 0 rg BT 326.93 515.07 Td (. He has also previously served as a Senior Controller for) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 505.07 Td (Hines REIT) Tj ET Q q 0 0 0 rg BT 299.96 505.07 Td ( and the general partner of its ) Tj ET Q q 0 0 0 rg BT 419.26 505.07 Td (Advisor from ) Tj ET Q q 0 0 0 rg BT 475.37 505.07 Td (August 2003 to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 495.07 Td (April 2008 and the Core Fund from July 2004 to ) Tj ET Q q 0 0 0 rg BT 448.37 495.07 Td (April 2008. Prior to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 485.07 Td (joining Hines, Mr) Tj ET Q q 0 0 0 rg BT 323.11 485.07 Td (. Sims was a manager in the audit practice of ) Tj ET Q q 0 0 0 rg BT 504.44 485.07 Td (Arthur) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 475.07 Td (Andersen LLP) Tj ET Q q 0 0 0 rg BT 310.41 475.07 Td ( and Deloitte & ) Tj ET Q q 0 0 0 rg BT 374.57 475.07 Td (T) Tj ET Q q 0 0 0 rg BT 380.23 475.07 Td (ouche LLP) Tj ET Q q 0 0 0 rg BT 423.49 475.07 Td (, serving clients primarily in the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 465.07 Td (real estate industry) Tj ET Q q 0 0 0 rg BT 327.20 465.07 Td (. He holds a Bachelor of Business ) Tj ET Q q 0 0 0 rg BT 466.86 465.07 Td (Administration degree) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 455.07 Td (in ) Tj ET Q q 0 0 0 rg BT 262.00 455.07 Td (Accounting from Baylor University and is a certified public accountant.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 425.23 Td (David L. Steinbach,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 415.23 Td (Chief Investment Officer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.50 425.07 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 425.07 Td (Mr) Tj ET Q q 0 0 0 rg BT 263.67 425.07 Td (. Steinbach joined Hines in 1999. Mr) Tj ET Q q 0 0 0 rg BT 413.38 425.07 Td (. Steinbach has served as the Chief) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 415.07 Td (Investment Of) Tj ET Q q 0 0 0 rg BT 309.30 415.07 Td (ficer for us and the general partner for our ) Tj ET Q q 0 0 0 rg BT 479.50 415.07 Td (Advisor since July) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 405.07 Td (2014. Mr) Tj ET Q q 0 0 0 rg BT 291.17 405.07 Td (. Steinbach also serves as the Chief Investment Of) Tj ET Q q 0 0 0 rg BT 491.77 405.07 Td (ficer for Hines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 395.07 Td (Global REIT) Tj ET Q q 0 0 0 rg BT 303.75 395.07 Td ( and the general partner of its advisor since July 2014. ) Tj ET Q q 0 0 0 rg BT 524.53 395.07 Td (Also,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 385.07 Td (beginning February 2017, Mr) Tj ET Q q 0 0 0 rg BT 369.76 385.07 Td (. Steinbach serves as the Chief Investment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 375.07 Td (Of) Tj ET Q q 0 0 0 rg BT 262.37 375.07 Td (ficer for the general partner of Hines. In these roles, he is responsible for) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 365.07 Td (management of the real estate acquisition program in the U.S. and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 355.07 Td (internationally) Tj ET Q q 0 0 0 rg BT 309.67 355.07 Td (. He also has served as a Managing Director of the general) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 345.07 Td (partner of Hines from February 201) Tj ET Q q 0 0 0 rg BT 394.64 345.07 Td (1 to February 2017. He has been) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 335.07 Td (responsible for the acquisition of over $4 billion in assets for various Hines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 325.07 Td (af) Tj ET Q q 0 0 0 rg BT 259.59 325.07 Td (filiates in the U.S. and internationally) Tj ET Q q 0 0 0 rg BT 409.18 325.07 Td (. Prior to this role, he served in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 315.07 Td (various roles in which he was responsible for acquisitions, asset) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 305.07 Td (management and property dispositions on behalf of Hines REIT) Tj ET Q q 0 0 0 rg BT 507.31 305.07 Td (, Hines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 295.07 Td (Global REIT) Tj ET Q q 0 0 0 rg BT 303.75 295.07 Td ( and the Core Fund, both in the U.S. and internationally) Tj ET Q q 0 0 0 rg BT 525.57 295.07 Td (. He) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 285.07 Td (graduated from ) Tj ET Q q 0 0 0 rg BT 315.68 285.07 Td (T) Tj ET Q q 0 0 0 rg BT 321.09 285.07 Td (exas ) Tj ET Q q 0 0 0 rg BT 340.81 285.07 Td (A&M University with a Bachelors and Masters in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 275.07 Td (Business ) Tj ET Q q 0 0 0 rg BT 289.51 275.07 Td (Administration.) Tj ET Q endstream endobj 223 0 obj <> endobj 224 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 31.60 Td (109) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 733.5 m 201.5 733.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210.5 733.5 m 239.5 733.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 733.5 m 561.5 733.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 738.18 Td (Name and ) Tj ET Q q 0 0 0 rg BT 97.93 738.18 Td (T) Tj ET Q q 0 0 0 rg BT 104.42 738.18 Td (itle) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.15 738.18 Td (Age) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.10 738.18 Td (Experience) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 724.23 Td (Kevin L. McMeans,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 713.23 Td (Asset Management Officer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.50 724.07 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 724.07 Td (Mr) Tj ET Q q 0 0 0 rg BT 263.95 724.07 Td (. McMeans joined Hines in 1992. Mr) Tj ET Q q 0 0 0 rg BT 414.21 724.07 Td (. McMeans has served as the ) Tj ET Q q 0 0 0 rg BT 531.12 724.07 Td (Asset) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 714.07 Td (Management Of) Tj ET Q q 0 0 0 rg BT 317.16 714.07 Td (ficer for us and the general partner of our ) Tj ET Q q 0 0 0 rg BT 484.22 714.07 Td (Advisor since) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 704.07 Td (August 2013. Mr) Tj ET Q q 0 0 0 rg BT 322.84 704.07 Td (. McMeans also has served as ) Tj ET Q q 0 0 0 rg BT 443.64 704.07 Td (Asset Management Of) Tj ET Q q 0 0 0 rg BT 533.25 704.07 Td (ficer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 694.07 Td (for Hines Global REIT) Tj ET Q q 0 0 0 rg BT 343.83 694.07 Td ( and the general partner of its advisor since) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 684.07 Td (December 2008. Mr) Tj ET Q q 0 0 0 rg BT 335.03 684.07 Td (. McMeans has also served as the ) Tj ET Q q 0 0 0 rg BT 470.55 684.07 Td (Asset Management) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 674.07 Td (Of) Tj ET Q q 0 0 0 rg BT 262.46 674.07 Td (ficer of Hines REIT) Tj ET Q q 0 0 0 rg BT 341.97 674.07 Td ( and the general partner of its advisor since ) Tj ET Q q 0 0 0 rg BT 516.27 674.07 Td (April) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 664.07 Td (2008. He also has served as the ) Tj ET Q q 0 0 0 rg BT 381.97 664.07 Td (Asset Management Of) Tj ET Q q 0 0 0 rg BT 471.58 664.07 Td (ficer of the Core) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 654.07 Td (Fund since January 2005. Since February 2015, he has served as the Senior) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 644.07 Td (Managing Director of Investment Management of the general partner of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 634.07 Td (Hines. Prior to February 2015, he also has served as a Managing Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 624.07 Td (of Investment Management of the general partner of Hines. In these roles,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 614.07 Td (he is responsible for overseeing the management of the various investment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 604.07 Td (properties owned by each of the funds in the U.S. and internationally) Tj ET Q q 0 0 0 rg BT 527.44 604.07 Td (. He) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 594.07 Td (previously served as the Chief Financial Of) Tj ET Q q 0 0 0 rg BT 425.75 594.07 Td (ficer of Hines Corporate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 584.07 Td (Properties, an investment venture established by Hines with a major U.S.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 574.07 Td (pension fund, from 2001 through June 2004. In this role, Mr) Tj ET Q q 0 0 0 rg BT 495.59 574.07 Td (. McMeans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 564.07 Td (was responsible for negotiating and closing debt financings, underwriting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 554.07 Td (and evaluating new investments, negotiating and closing sale transactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 544.07 Td (and overseeing the administrative and financial reporting requirements of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 534.07 Td (the venture and its investors. Before joining Hines, Mr) Tj ET Q q 0 0 0 rg BT 472.52 534.07 Td (. McMeans spent) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 524.07 Td (four and a half years at Deloitte & ) Tj ET Q q 0 0 0 rg BT 391.30 524.07 Td (T) Tj ET Q q 0 0 0 rg BT 396.97 524.07 Td (ouche LLP) Tj ET Q q 0 0 0 rg BT 440.59 524.07 Td ( in the audit department. He) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 514.07 Td (graduated from ) Tj ET Q q 0 0 0 rg BT 315.77 514.07 Td (T) Tj ET Q q 0 0 0 rg BT 321.44 514.07 Td (exas ) Tj ET Q q 0 0 0 rg BT 341.08 514.07 Td (A&M University with a B.S. in Computer Science.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 484.23 Td (J. Shea Morgenr) Tj ET Q q 0 0 0 rg BT 123.20 484.23 Td (oth,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 473.23 Td (Chief ) Tj ET Q q 0 0 0 rg BT 77.28 473.23 Td (Accounting Officer) Tj ET Q q 0 0 0 rg BT 159.02 473.23 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 463.23 Td (T) Tj ET Q q 0 0 0 rg BT 57.93 463.23 Td (r) Tj ET Q q 0 0 0 rg BT 62.19 463.23 Td (easur) Tj ET Q q 0 0 0 rg BT 85.33 463.23 Td (er) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.50 484.07 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 484.07 Td (Mr) Tj ET Q q 0 0 0 rg BT 263.67 484.07 Td (. Mor) Tj ET Q q 0 0 0 rg BT 285.71 484.07 Td (genroth joined Hines in October 2003. Mr) Tj ET Q q 0 0 0 rg BT 456.24 484.07 Td (. Mor) Tj ET Q q 0 0 0 rg BT 478.28 484.07 Td (genroth has served) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 474.07 Td (as Chief ) Tj ET Q q 0 0 0 rg BT 287.00 474.07 Td (Accounting Of) Tj ET Q q 0 0 0 rg BT 346.52 474.07 Td (ficer and ) Tj ET Q q 0 0 0 rg BT 384.09 474.07 Td (T) Tj ET Q q 0 0 0 rg BT 389.85 474.07 Td (reasurer for us and the general partner of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 464.07 Td (our ) Tj ET Q q 0 0 0 rg BT 267.28 464.07 Td (Advisor since July 2013. Since November 201) Tj ET Q q 0 0 0 rg BT 455.77 464.07 Td (1, Mr) Tj ET Q q 0 0 0 rg BT 477.44 464.07 Td (. Mor) Tj ET Q q 0 0 0 rg BT 499.48 464.07 Td (genroth has) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 454.07 Td (served as Chief ) Tj ET Q q 0 0 0 rg BT 315.59 454.07 Td (Accounting Of) Tj ET Q q 0 0 0 rg BT 375.12 454.07 Td (ficer and ) Tj ET Q q 0 0 0 rg BT 412.69 454.07 Td (T) Tj ET Q q 0 0 0 rg BT 418.45 454.07 Td (reasurer for Hines Global REIT) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 444.07 Td (and the general partner of its advisor) Tj ET Q q 0 0 0 rg BT 398.06 444.07 Td (. Since November 201) Tj ET Q q 0 0 0 rg BT 487.11 444.07 Td (1, Mr) Tj ET Q q 0 0 0 rg BT 508.78 444.07 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 434.07 Td (Mor) Tj ET Q q 0 0 0 rg BT 269.04 434.07 Td (genroth also has served as Chief ) Tj ET Q q 0 0 0 rg BT 400.12 434.07 Td (Accounting Of) Tj ET Q q 0 0 0 rg BT 459.65 434.07 Td (ficer and ) Tj ET Q q 0 0 0 rg BT 497.22 434.07 Td (T) Tj ET Q q 0 0 0 rg BT 502.98 434.07 Td (reasurer of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 424.07 Td (Hines REIT) Tj ET Q q 0 0 0 rg BT 299.87 424.07 Td ( and the general partner of its advisor) Tj ET Q q 0 0 0 rg BT 448.43 424.07 Td (. In these roles, Mr) Tj ET Q q 0 0 0 rg BT 525.91 424.07 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 414.07 Td (Mor) Tj ET Q q 0 0 0 rg BT 269.04 414.07 Td (genroth is responsible for the oversight of the treasury) Tj ET Q q 0 0 0 rg BT 485.00 414.07 Td (, accounting,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 404.07 Td (financial reporting and SEC reporting functions, as well as the Sarbanes-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 394.07 Td (Oxley compliance program in the U.S. and internationally) Tj ET Q q 0 0 0 rg BT 483.79 394.07 Td (. Prior to his) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 384.07 Td (appointment, Mr) Tj ET Q q 0 0 0 rg BT 318.66 384.07 Td (. Mor) Tj ET Q q 0 0 0 rg BT 340.70 384.07 Td (genroth served as a Senior Controller for Hines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 374.07 Td (Global REIT) Tj ET Q q 0 0 0 rg BT 303.75 374.07 Td ( and the general partner of its advisor since their inception in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 364.07 Td (December 2008 and for Hines REIT) Tj ET Q q 0 0 0 rg BT 397.05 364.07 Td ( and the general partner of its advisor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 354.07 Td (since January 2008 and as a Controller for Hines REIT) Tj ET Q q 0 0 0 rg BT 471.48 354.07 Td ( and its advisor from) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 344.07 Td (October 2003 to January 2008. In these roles, he was responsible for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 334.07 Td (management of the accounting, financial reporting and SEC reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 324.07 Td (functions. Prior to joining Hines, Mr) Tj ET Q q 0 0 0 rg BT 400.33 324.07 Td (. Mor) Tj ET Q q 0 0 0 rg BT 422.37 324.07 Td (genroth was a manager in the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 314.07 Td (audit practice of ) Tj ET Q q 0 0 0 rg BT 318.91 314.07 Td (Arthur ) Tj ET Q q 0 0 0 rg BT 347.52 314.07 Td (Andersen LLP) Tj ET Q q 0 0 0 rg BT 405.75 314.07 Td ( and Deloitte & ) Tj ET Q q 0 0 0 rg BT 470.00 314.07 Td (T) Tj ET Q q 0 0 0 rg BT 475.41 314.07 Td (ouche LLP) Tj ET Q q 0 0 0 rg BT 518.46 314.07 Td (, serving) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 304.07 Td (clients primarily in the real estate industry) Tj ET Q q 0 0 0 rg BT 420.19 304.07 Td (. He holds a Bachelor of Business) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 294.07 Td (Administration degree in ) Tj ET Q q 0 0 0 rg BT 353.92 294.07 Td (Accounting from ) Tj ET Q q 0 0 0 rg BT 424.84 294.07 Td (T) Tj ET Q q 0 0 0 rg BT 430.25 294.07 Td (exas ) Tj ET Q q 0 0 0 rg BT 449.96 294.07 Td (A&M University and is a) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 284.07 Td (certified public accountant.) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 255.00 Td (Audit Committee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 231.00 Td (Our board of directors has determined that each member of our ) Tj ET Q q 0 0 0 rg BT 322.63 231.00 Td (Audit Committee is independent within the meaning of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 219.00 Td (applicable requirements set forth in or promulgated under the Exchange ) Tj ET Q q 0 0 0 rg BT 339.35 219.00 Td (Act, as well as in the NYSE rules. In addition, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 207.00 Td (board of directors has determined that John O. Niemann, Jr) Tj ET Q q 0 0 0 rg BT 286.33 207.00 Td (. is an audit committee financial expert within the meaning of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 195.00 Td (applicable rules promulgated by the SEC. Unless otherwise determined by the board of directors, no member of the committee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 183.00 Td (may serve as a member of the ) Tj ET Q q 0 0 0 rg BT 171.34 183.00 Td (Audit Committee of more than two other public companies. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 159.00 Td (Code of Business Conduct and Ethics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 135.00 Td (Our board of directors has adopted a Code of Business Conduct and Ethics, which is applicable to our directors and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 123.00 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 123.00 Td (ficers, including our principal executive of) Tj ET Q q 0 0 0 rg BT 228.46 123.00 Td (ficer) Tj ET Q q 0 0 0 rg BT 246.38 123.00 Td (, principal financial of) Tj ET Q q 0 0 0 rg BT 335.05 123.00 Td (ficer) Tj ET Q q 0 0 0 rg BT 352.96 123.00 Td (, principal accounting of) Tj ET Q q 0 0 0 rg BT 450.53 123.00 Td (ficer or controller and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 111.00 Td (persons performing similar functions, whether acting in their capacities as our of) Tj ET Q q 0 0 0 rg BT 372.50 111.00 Td (ficers or in their capacities as of) Tj ET Q q 0 0 0 rg BT 500.04 111.00 Td (ficers of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 99.00 Td (Advisor or its general partner) Tj ET Q q 0 0 0 rg BT 167.19 99.00 Td (. ) Tj ET Q q 0 0 0 rg BT 174.51 99.00 Td (The Code of Business Conduct and Ethics covers topics including conflicts of interest, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 87.00 Td (confidentiality of information, full and fair disclosure, reporting of violations and compliance with laws and regulations. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 75.00 Td (Code of Business Conduct and Ethics is available, free of char) Tj ET Q q 0 0 0 rg BT 299.47 75.00 Td (ge, on the Corporate Governance section of our website,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 524.95 75.00 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.00 Td (www) Tj ET Q q 0 0 0 rg BT 69.27 63.00 Td (.hinessecurities.com/curr) Tj ET Q q 0 0 0 rg BT 169.99 63.00 Td (ent-offerings/hgit/corporate-governance/) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.40 63.00 Td (. ) Tj ET Q q 0 0 0 rg BT 341.53 63.00 Td (Y) Tj ET Q q 0 0 0 rg BT 347.75 63.00 Td (ou may also obtain a copy of this code by writing to: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 51.00 Td (Hines Global Income ) Tj ET Q q 0 0 0 rg BT 137.85 51.00 Td (T) Tj ET Q q 0 0 0 rg BT 143.61 51.00 Td (rust Investor Relations, 2800 Post Oak Boulevard, Suite 5000, Houston, ) Tj ET Q q 0 0 0 rg BT 433.96 51.00 Td (T) Tj ET Q q 0 0 0 rg BT 439.38 51.00 Td (exas 77056-61) Tj ET Q q 0 0 0 rg BT 497.60 51.00 Td (18. ) Tj ET Q q 0 0 0 rg BT 514.92 51.00 Td (W) Tj ET Q q 0 0 0 rg BT 523.56 51.00 Td (aivers ) Tj ET Q endstream endobj 225 0 obj <> endobj 226 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 31.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (from our Code of Business Conduct and Ethics are discouraged, but any waivers from the Code of Business Conduct and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (Ethics that relate to any executive of) Tj ET Q q 0 0 0 rg BT 195.87 730.10 Td (ficer or director must be approved by our Nominating and Corporate Governance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (Committee and will be posted on our website at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 243.57 718.10 Td (www) Tj ET Q q 0 0 0 rg BT 262.84 718.10 Td (.hinessecurities.com/curr) Tj ET Q q 0 0 0 rg BT 363.56 718.10 Td (ent-offerings/hgit/corporate-governance/) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.97 718.10 Td ( within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (four business days of any such waiver) Tj ET Q q 0 0 0 rg BT 201.64 706.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (Section 16\(a\) Beneficial Ownership Reporting Compliance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 658.10 Td (Section 16\(a\) of the Exchange ) Tj ET Q q 0 0 0 rg BT 191.01 658.10 Td (Act requires directors and executive of) Tj ET Q q 0 0 0 rg BT 346.04 658.10 Td (ficers of companies with a class of equity securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (registered pursuant to Section 12 of the Exchange ) Tj ET Q q 0 0 0 rg BT 251.05 646.10 Td (Act to file initial reports of ownership, reports of changes in ownership and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (annual reports of ownership with the SEC. ) Tj ET Q q 0 0 0 rg BT 225.07 634.10 Td (These persons are required by SEC regulations to furnish the issuer of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (securities with copies of all Section 16 forms that they file with the SEC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 598.10 Td (Based solely on our review of the copies of the forms received by us or written representations from certain reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (persons, we believe that in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.86 586.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.86 586.10 Td ( our directors and executive of) Tj ET Q q 0 0 0 rg BT 300.57 586.10 Td (ficers complied with all filing requirements under Section 16\(a\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (of the Exchange ) Tj ET Q q 0 0 0 rg BT 116.92 574.10 Td (Act.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (Item1) Tj ET Q q 0 0 0 rg BT 76.94 550.10 Td (1.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 89.44 550.10 Td (Executive Compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (Dir) Tj ET Q q 0 0 0 rg BT 64.26 526.10 Td (ector) Tj ET Q q 0 0 0 rg BT 85.72 526.10 Td ( Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 502.10 Td (Our Compensation Committee designs our director compensation with the goals of attracting and retaining highly qualified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (individuals to serve as independent directors and to fairly compensate them for their time and ef) Tj ET Q q 0 0 0 rg BT 433.86 490.10 Td (forts. Because of our unique ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (attributes as an externally-managed REIT) Tj ET Q q 0 0 0 rg BT 215.86 478.10 Td (, service as an independent director on our board requires a substantial time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (commitment. ) Tj ET Q q 0 0 0 rg BT 107.87 466.10 Td (The Compensation Committee balances these considerations with the principles that our independent director ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (compensation program should be transparent and, in part, should align directors) Tj ET Q q 0 0 0 rg BT 371.95 454.10 Td ( interests with those of our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 430.10 Td (The following table sets forth information regarding compensation of our directors during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.13 430.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.13 430.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 244.80 406.10 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 264.80 406.10 Td ( Dir) Tj ET Q q 0 0 0 rg BT 281.56 406.10 Td (ector) Tj ET Q q 0 0 0 rg BT 303.02 406.10 Td ( Compensation) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 341.60 102.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 151.50 341.60 46.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 341.60 53.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 341.60 41.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 341.60 62.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.50 341.60 81.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 341.60 62.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 341.60 65.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 301.60 102.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 151.50 301.60 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 301.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 301.60 41.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.50 301.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.50 301.60 81.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 301.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 301.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 341.6 m 151.5 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 151.5 341.6 m 197.5 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 341.6 m 250.5 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 341.6 m 291.5 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 341.6 m 353.5 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 341.6 m 434.5 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 341.6 m 496.5 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 341.6 m 561.5 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 341.6 m 151.5 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 151.5 341.6 m 197.5 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 341.6 m 250.5 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 341.6 m 291.5 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291.5 341.6 m 353.5 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 341.6 m 434.5 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 341.6 m 496.5 341.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 346.28 Td (Name) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 165.50 373.05 Td (Fees) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 154.45 364.05 Td (Earned or) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 160.35 355.05 Td (Paid in) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 164.20 346.05 Td (Cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 203.80 364.05 Td (Aggr) Tj ET Q q 0 0 0 rg BT 223.13 364.05 Td (egate ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 212.70 355.05 Td (Stock ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 202.00 346.05 Td (A) Tj ET Q q 0 0 0 rg BT 207.83 346.05 Td (wards) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 231.33 350.13 Td (\(1\)\(2\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 256.95 355.05 Td (Option) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 255.80 346.05 Td (A) Tj ET Q q 0 0 0 rg BT 261.97 346.05 Td (wards) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 299.45 364.05 Td (Non-Equity) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 294.35 355.05 Td (Incentive Plan) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 294.20 346.05 Td (Compensation) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 357.70 382.05 Td (Change in Pension) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 363.65 373.05 Td (V) Tj ET Q q 0 0 0 rg BT 369.74 373.05 Td (alue and Non-) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 357.20 364.05 Td (Qualified Deferr) Tj ET Q q 0 0 0 rg BT 420.85 364.05 Td (ed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 365.70 355.05 Td (Compensation) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 375.95 346.05 Td (Earnings) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 446.70 355.05 Td (All Other) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 437.20 346.05 Td (Compensation) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 518.65 355.05 Td (T) Tj ET Q q 0 0 0 rg BT 523.83 355.05 Td (otal) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 500.70 346.05 Td (Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 331.27 Td (Humberto Burt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 321.27 Td (Cabaas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.00 321.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.10 321.27 Td (89,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.00 321.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.15 321.27 Td (5,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.00 321.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.65 321.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.00 321.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.65 321.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 321.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 321.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 321.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 321.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 321.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 321.27 Td (94,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 306.27 Td (Dougal ) Tj ET Q q 0 0 0 rg BT 83.66 306.27 Td (A. Cameron) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.00 306.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.10 306.27 Td (88,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.00 306.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.15 306.27 Td (5,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.00 306.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.65 306.27 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 306.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 340.65 306.06 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 306.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 306.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 306.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 306.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 306.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 306.27 Td (93,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 291.27 Td (John O. Niemann, Jr) Tj ET Q q 0 0 0 rg BT 133.94 291.27 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.00 291.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.10 291.27 Td (88,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.00 291.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.15 291.27 Td (5,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.00 291.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.65 291.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.00 291.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.65 291.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 291.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 291.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 291.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 291.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 291.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 291.27 Td (93,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 276.27 Td (Jef) Tj ET Q q 0 0 0 rg BT 63.48 276.27 Td (fery C. Hines and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 266.27 Td (Charles M. Baughn ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 132.55 270.80 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.00 266.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.65 266.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.00 266.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.65 266.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.00 266.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.65 266.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.00 266.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.65 266.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 266.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 266.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 266.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 266.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 266.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 266.27 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 232.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 232.10 Td (Each of Messrs. Cabaas, Cameron and Niemann received 518.135 restricted common shares upon his re-election to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 220.10 Td (our board of directors following our 2017 annual meeting. ) Tj ET Q q 0 0 0 rg BT 323.82 220.10 Td (The shares were issued without registration under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 208.10 Td (Securities ) Tj ET Q q 0 0 0 rg BT 127.38 208.10 Td (Act of 1933, as amended \(the Securities ) Tj ET Q q 0 0 0 rg BT 293.44 208.10 Td (Act\), in reliance upon the exemption from registration contained ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 196.10 Td (in Section 4\(a\)\(2\) of the Securities ) Tj ET Q q 0 0 0 rg BT 225.96 196.10 Td (Act for transactions not involving any public of) Tj ET Q q 0 0 0 rg BT 416.02 196.10 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 178.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 178.10 Td (The value of the common stock awards was calculated based on the estimated net asset value, or NA) Tj ET Q q 0 0 0 rg BT 487.35 178.10 Td (V) Tj ET Q q 0 0 0 rg BT 493.29 178.10 Td (, of $9.65 per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 166.10 Td (share as of December 31, 2016 which was the estimated NA) Tj ET Q q 0 0 0 rg BT 326.02 166.10 Td (V) Tj ET Q q 0 0 0 rg BT 333.07 166.10 Td ( per share most recently determined by our board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 154.10 Td (directors prior to the September 13, 2017 grant date of the awards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 136.10 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 136.10 Td (Messrs. Hines and Baughn, who are employees of Hines, receive no compensation for serving as members of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 124.10 Td (board of directors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 100.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 100.10 Td (e paid our independent directors an annual fee of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.61 100.10 Td ($40,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.11 100.10 Td (, and a fee of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.53 100.10 Td ($2,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.03 100.10 Td ( for each meeting of the board \(or any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 88.10 Td (committee thereof\) attended in person. If a committee meeting was held on the same day as a meeting of our board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 76.10 Td (directors, each independent director received ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.13 76.10 Td ($1,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.63 76.10 Td ( for each committee meeting attended in person on such day) Tj ET Q q 0 0 0 rg BT 499.45 76.10 Td (. ) Tj ET Q q 0 0 0 rg BT 506.77 76.10 Td (W) Tj ET Q q 0 0 0 rg BT 515.41 76.10 Td (e also paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 64.10 Td (each of our independent directors a fee of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.81 64.10 Td ($750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.81 64.10 Td ( for each board or committee meeting attended via teleconference.) Tj ET Q endstream endobj 227 0 obj <> endobj 228 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.85 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.48 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 308.11 31.60 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 742.10 Td (e paid the following annual retainers \(prorated for a partial term\) to the Chairpersons of our board committees for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.87 742.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.87 742.10 Td (:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 718.10 Td ($7,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.50 718.10 Td ( to the Chairperson of the Conflicts Committee;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 694.10 Td ($10,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.50 694.10 Td ( to the Chairperson of the ) Tj ET Q q 0 0 0 rg BT 222.37 694.10 Td (Audit Committee;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 670.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 670.10 Td ($5,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.50 670.10 Td ( to the Chairperson of the Compensation Committee;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 646.10 Td ($5,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.50 646.10 Td ( to the Chairperson of the Nominating and Corporate Governance Committee; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 622.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 622.10 Td ($5,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.50 622.10 Td ( to the Chairperson of the ) Tj ET Q q 0 0 0 rg BT 217.74 622.10 Td (V) Tj ET Q q 0 0 0 rg BT 223.85 622.10 Td (aluation Committee.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 598.10 Td (All directors are reimbursed by us for reasonable out-of-pocket expenses incurred in connection with attendance at board ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (or committee meetings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 562.10 Td (Each independent director elected or reelected to the board \(whether through a stockholder meeting or by directors to fill a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (vacancy on the board\) will be granted $5,000 in restricted Class ) Tj ET Q q 0 0 0 rg BT 307.15 550.10 Td (AX shares on or about the date of election or reelection. ) Tj ET Q q 0 0 0 rg BT 533.55 550.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (restricted Class ) Tj ET Q q 0 0 0 rg BT 113.32 538.10 Td (AX shares will fully vest on the earlier to occur of: \(i\) the first anniversary of the applicable grant date, subject ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (to the independent director serving continuously as an independent director through and until the first anniversary of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (applicable grant date; \(ii\) the termination of service as an independent director due to the independent director) Tj ET Q q 0 0 0 rg BT 490.75 514.10 Td () Tj ET Q q 0 0 0 rg BT 493.53 514.10 Td (s death or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (disability; or \(iii\) a change in control of the Company) Tj ET Q q 0 0 0 rg BT 263.47 502.10 Td (, subject to the independent director serving continuously through and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (until the date of the change in control of the Company) Tj ET Q q 0 0 0 rg BT 265.96 490.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (Executive Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 442.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 442.10 Td (e have no employees. Our day-to-day management functions are performed by our ) Tj ET Q q 0 0 0 rg BT 411.52 442.10 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 482.72 442.10 Td (filiates. ) Tj ET Q q 0 0 0 rg BT 516.88 442.10 Td (All of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (executive of) Tj ET Q q 0 0 0 rg BT 98.96 430.10 Td (ficers are employed by and receive compensation from our ) Tj ET Q q 0 0 0 rg BT 336.37 430.10 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 401.46 430.10 Td (filiates, for all of their services to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (Hines or) Tj ET Q q 0 0 0 rg BT 83.98 418.10 Td (ganization, including their service as our executive of) Tj ET Q q 0 0 0 rg BT 298.16 418.10 Td (ficers. ) Tj ET Q q 0 0 0 rg BT 327.69 418.10 Td (The compensation received by our executive of) Tj ET Q q 0 0 0 rg BT 517.43 418.10 Td (ficers is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (not paid or determined by us, but rather by our ) Tj ET Q q 0 0 0 rg BT 238.57 406.10 Td (Advisor or af) Tj ET Q q 0 0 0 rg BT 291.71 406.10 Td (filiates of our ) Tj ET Q q 0 0 0 rg BT 347.53 406.10 Td (Advisor based on all the services provided by these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (individuals to the Hines or) Tj ET Q q 0 0 0 rg BT 155.92 394.10 Td (ganization, including us. ) Tj ET Q q 0 0 0 rg BT 258.68 394.10 Td (As a result, we do not have and our compensation committee has not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (considered, a compensation policy or program for our executive of) Tj ET Q q 0 0 0 rg BT 316.95 382.10 Td (ficers and have not included a Compensation Discussion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (and ) Tj ET Q q 0 0 0 rg BT 66.39 370.10 Td (Analysis, or Compensation Committee Report in this ) Tj ET Q q 0 0 0 rg BT 294.14 370.10 Td (Annual Report on Form 10-K. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.89 370.10 Td (Item 13.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.21 370.10 Td ( Certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (Relationships and Related ) Tj ET Q q 0 0 0 rg BT 156.74 358.10 Td (T) Tj ET Q q 0 0 0 rg BT 162.50 358.10 Td (ransactions, and Director Independence below for a discussion of fees and expenses payable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (our ) Tj ET Q q 0 0 0 rg BT 65.28 346.10 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 136.47 346.10 Td (filiates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (Compensation Committee Interlocks and Insider) Tj ET Q q 0 0 0 rg BT 258.71 322.10 Td ( Participation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 298.10 Td (During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.83 298.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.83 298.10 Td (, our Compensation Committee consisted of Messrs. Cabaas, Cameron and Niemann, our three independent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (directors. None of our executive of) Tj ET Q q 0 0 0 rg BT 192.27 286.10 Td (ficers served as a director or member of the compensation committee of an entity whose ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (executive of) Tj ET Q q 0 0 0 rg BT 98.96 274.10 Td (ficers included a member of our board of directors or Compensation Committee.) Tj ET Q endstream endobj 229 0 obj <> endobj 230 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 31.60 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Item12.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 84.99 742.25 Td (Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (Ownership) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.25 Td (The following table shows, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.03 694.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.62 694.25 Td (, the amount of our common stock beneficially owned \(unless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (otherwise indicated\) by \(1\) any person who is known by us to be the beneficial owner of more than 5% of our outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (common stock, \(2\) our directors, \(3\) our executive of) Tj ET Q q 0 0 0 rg BT 262.53 670.25 Td (ficers, and \(4\) all of our directors and executive of) Tj ET Q q 0 0 0 rg BT 463.37 670.25 Td (ficers as a group. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (Except as otherwise indicated, all shares are owned directly) Tj ET Q q 0 0 0 rg BT 287.87 658.25 Td (, and the owner of such shares has the sole voting and investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (power with respect thereto.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 581.75 161.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 581.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 214.50 581.75 166.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 581.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 581.75 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.50 581.75 20.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 581.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 551.75 161.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 551.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 214.50 551.75 166.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 551.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 551.75 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.50 551.75 20.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 551.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 521.75 161.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 521.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 214.50 521.75 166.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 521.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 521.75 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.50 521.75 20.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 521.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 491.75 161.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 491.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 214.50 491.75 166.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 491.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 491.75 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.50 491.75 20.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 491.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 461.75 161.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 461.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 214.50 461.75 166.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 461.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 461.75 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.50 461.75 20.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 461.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 431.75 331.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 431.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 431.75 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.50 431.75 20.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 431.75 75.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 621.75 m 466.5 621.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466.5 621.75 m 486.5 621.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 621.75 m 561.5 621.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 581.75 m 210.5 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214.5 581.75 m 380.5 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 581.75 m 466.5 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 581.75 m 561.5 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 581.75 m 210.5 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214.5 581.75 m 380.5 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 581.75 m 466.5 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 581.75 m 561.5 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 431.75 m 466.5 431.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 417.75 m 466.5 417.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 415.75 m 466.5 415.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 431.75 m 561.5 431.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 417.75 m 561.5 417.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 415.75 m 561.5 415.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 391.75 626.43 Td (Common Stock Beneficially Owned ) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 545.64 630.96 Td (\(2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 586.43 Td (Name of Beneficial Owner) Tj ET Q q 0 0 0 rg BT 164.29 586.43 Td ( ) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 166.79 590.96 Td (\(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.75 586.43 Td (Position) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.85 606.43 Td (Number) Tj ET Q q 0 0 0 rg BT 437.31 606.43 Td ( of) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.20 596.43 Td (Shar) Tj ET Q q 0 0 0 rg BT 425.67 596.43 Td (es of) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.05 586.43 Td (Common Stock) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 494.55 596.43 Td (Per) Tj ET Q q 0 0 0 rg BT 509.35 596.43 Td (centage of) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 512.10 586.43 Td (Class) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 571.42 Td (Jef) Tj ET Q q 0 0 0 rg BT 63.57 571.42 Td (frey C. Hines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 571.42 Td (Chairman of the Board) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 571.42 Td (225,008) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 469.00 575.85 Td (\(3\)\(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.05 571.42 Td (1.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 556.42 Td (Humberto Burt Cabaas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 556.42 Td (Independent Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 556.42 Td (1) Tj ET Q q 0 0 0 rg BT 440.15 556.42 Td (1,683) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.00 556.42 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 541.42 Td (Dougal ) Tj ET Q q 0 0 0 rg BT 83.66 541.42 Td (A. Cameron) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 541.42 Td (Independent Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 541.42 Td (518) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.00 541.42 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 526.42 Td (John O. Niemann, Jr) Tj ET Q q 0 0 0 rg BT 134.21 526.42 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 526.42 Td (Independent Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 526.42 Td (1) Tj ET Q q 0 0 0 rg BT 440.15 526.42 Td (1,709) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.00 526.42 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 511.42 Td (Charles M. Baughn) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 511.42 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 511.42 Td (13,485) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.00 511.42 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 496.42 Td (Sherri ) Tj ET Q q 0 0 0 rg BT 78.85 496.42 Td (W) Tj ET Q q 0 0 0 rg BT 87.74 496.42 Td (. Schugart) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 496.42 Td (President and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 351.31 496.42 Td (ficer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 496.42 Td (22,168) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.00 496.42 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 481.42 Td (R) Tj ET Q q 0 0 0 rg BT 58.47 481.42 Td (yan ) Tj ET Q q 0 0 0 rg BT 75.12 481.42 Td (T) Tj ET Q q 0 0 0 rg BT 80.76 481.42 Td (. Sims) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 481.42 Td (Chief Financial Of) Tj ET Q q 0 0 0 rg BT 291.89 481.42 Td (ficer and Secretary) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 481.42 Td (4,438) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.00 481.42 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 466.42 Td (David L. Steinbach) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 466.42 Td (Chief Investment Of) Tj ET Q q 0 0 0 rg BT 299.11 466.42 Td (ficer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 466.42 Td (5,536) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.00 466.42 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 451.42 Td (Kevin L. McMeans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 451.42 Td (Asset Management Of) Tj ET Q q 0 0 0 rg BT 306.89 451.42 Td (ficer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 451.42 Td (5,536) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.00 451.42 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 436.42 Td (J. Shea Mor) Tj ET Q q 0 0 0 rg BT 99.96 436.42 Td (genroth) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 436.42 Td (Chief ) Tj ET Q q 0 0 0 rg BT 241.44 436.42 Td (Accounting Of) Tj ET Q q 0 0 0 rg BT 300.78 436.42 Td (ficer and ) Tj ET Q q 0 0 0 rg BT 338.35 436.42 Td (T) Tj ET Q q 0 0 0 rg BT 344.20 436.42 Td (reasurer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 436.42 Td (4,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.00 436.42 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 421.42 Td (All directors and executive of) Tj ET Q q 0 0 0 rg BT 170.66 421.42 Td (ficers as a group) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 421.42 Td (304,523) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.05 421.42 Td (1.6%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 393.25 Td ( * ) Tj ET Q q 0 0 0 rg BT 86.00 393.25 Td (Amount represents less than 1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 369.25 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 369.25 Td (The address of each person listed is c/o Hines Global Income ) Tj ET Q q 0 0 0 rg BT 333.25 369.25 Td (T) Tj ET Q q 0 0 0 rg BT 339.00 369.25 Td (rust, Inc., 2800 Post Oak Boulevard, Suite 5000, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 357.25 Td (Houston, ) Tj ET Q q 0 0 0 rg BT 124.71 357.25 Td (T) Tj ET Q q 0 0 0 rg BT 130.12 357.25 Td (exas 77056-6618.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 333.25 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 333.25 Td (For purposes of this table, beneficial ownership is determined in accordance with Rule 13d-3 under the Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 321.25 Td (Act, pursuant to which a person is deemed to have beneficial ownership of shares of our stock that the person has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 309.25 Td (the right to acquire within 60 days. For purposes of computing the percentage of outstanding shares of the Company) Tj ET Q q 0 0 0 rg BT 556.45 309.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 297.25 Td (stock held by each person or group of persons named in the table, any shares that such person or persons have the right ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 285.25 Td (to acquire within 60 days of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.42 285.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.00 285.25 Td ( are deemed to be outstanding, but are not deemed to be outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 273.25 Td (for the purpose of computing the percentage ownership of any other persons.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 249.25 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 249.25 Td (Includes all common shares owned directly by Hines Global REIT) Tj ET Q q 0 0 0 rg BT 352.14 249.25 Td ( II Investor Limited Partnership. Mr) Tj ET Q q 0 0 0 rg BT 495.45 249.25 Td (.Hines is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 237.25 Td (deemed to be the beneficial owner of the shares owned by Hines Global REIT) Tj ET Q q 0 0 0 rg BT 398.22 237.25 Td ( II Investor Limited Partnership.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 213.25 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 213.25 Td (This amount does not include the \(i\)21,1) Tj ET Q q 0 0 0 rg BT 250.60 213.25 Td (1) Tj ET Q q 0 0 0 rg BT 255.23 213.25 Td (1 OP) Tj ET Q q 0 0 0 rg BT 275.14 213.25 Td ( Units in the Operating Partnership owned by Hines Global REIT) Tj ET Q q 0 0 0 rg BT 536.58 213.25 Td ( II ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 201.25 Td (Associates Limited Partnership and \(ii\)the Special OP) Tj ET Q q 0 0 0 rg BT 304.19 201.25 Td ( Units owned by Hines Global REIT) Tj ET Q q 0 0 0 rg BT 450.11 201.25 Td ( II ) Tj ET Q q 0 0 0 rg BT 461.21 201.25 Td (Advisors LP) Tj ET Q q 0 0 0 rg BT 510.39 201.25 Td (. Mr) Tj ET Q q 0 0 0 rg BT 529.56 201.25 Td (.Hines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 189.25 Td (and Gerald D. Hines indirectly own and/or control Hines Global REIT) Tj ET Q q 0 0 0 rg BT 367.69 189.25 Td ( II ) Tj ET Q q 0 0 0 rg BT 378.80 189.25 Td (Associates Limited Partnership and Hines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 177.25 Td (Global REIT) Tj ET Q q 0 0 0 rg BT 137.75 177.25 Td ( II ) Tj ET Q q 0 0 0 rg BT 148.86 177.25 Td (Advisors LP) Tj ET Q q 0 0 0 rg BT 198.04 177.25 Td (. Limited partners in the Operating Partnership may request repurchase of their OP) Tj ET Q q 0 0 0 rg BT 528.40 177.25 Td ( Units ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 165.25 Td (for cash or) Tj ET Q q 0 0 0 rg BT 128.36 165.25 Td (, at our option, shares of common stock. ) Tj ET Q q 0 0 0 rg BT 291.21 165.25 Td (The holder of the Special OP) Tj ET Q q 0 0 0 rg BT 407.19 165.25 Td ( Units is entitled to the performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 153.25 Td (participation allocation described in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.50 153.25 Td (Item 13.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.82 153.25 Td ( Certain Relationships and Related Party ) Tj ET Q q 0 0 0 rg BT 434.61 153.25 Td (T) Tj ET Q q 0 0 0 rg BT 440.37 153.25 Td (ransactions, and Director ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 141.25 Td (Independence.) Tj ET Q endstream endobj 231 0 obj <> endobj 232 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 31.60 Td (13) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Item13.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 84.99 742.25 Td (Certain Relationships and Related T) Tj ET Q q 0 0 0 rg BT 239.64 742.25 Td (ransactions, and Director Independence) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (Our) Tj ET Q q 0 0 0 rg BT 67.60 718.25 Td ( ) Tj ET Q q 0 0 0 rg BT 69.55 718.25 Td (Advisor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 694.25 Td (e do not have employees. Subject to the supervision of our board of directors, our day-to-day operations are conducted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (by our ) Tj ET Q q 0 0 0 rg BT 77.78 682.25 Td (Advisor in accordance with the ) Tj ET Q q 0 0 0 rg BT 204.68 682.25 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 243.85 682.25 Td (Agreement. Our ) Tj ET Q q 0 0 0 rg BT 313.28 682.25 Td (Advisor is an af) Tj ET Q q 0 0 0 rg BT 376.69 682.25 Td (filiate of Hines and is wholly-owned, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (indirectly) Tj ET Q q 0 0 0 rg BT 87.67 670.25 Td (, by) Tj ET Q q 0 0 0 rg BT 102.02 670.25 Td (, or for the benefit of, the Chairman of our board of directors, Jef) Tj ET Q q 0 0 0 rg BT 361.20 670.25 Td (frey C. Hines, and his father) Tj ET Q q 0 0 0 rg BT 473.82 670.25 Td (, Gerald D. Hines. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (All of our executive of) Tj ET Q q 0 0 0 rg BT 140.90 658.25 Td (ficers are employed by) Tj ET Q q 0 0 0 rg BT 231.60 658.25 Td (, and all of our executive of) Tj ET Q q 0 0 0 rg BT 341.65 658.25 Td (ficers actively participate in, the management of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 121.20 646.25 Td (filiates. Jef) Tj ET Q q 0 0 0 rg BT 167.39 646.25 Td (frey C. Hines serves as the Chairman of the Managers of the general partner of our ) Tj ET Q q 0 0 0 rg BT 500.33 646.25 Td (Advisor and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (Charles M. Baughn serves as a Manager of the general partner of our ) Tj ET Q q 0 0 0 rg BT 328.24 634.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 359.91 634.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 610.25 Td (Our executive of) Tj ET Q q 0 0 0 rg BT 135.01 610.25 Td (ficers have control and primary responsibility for the management decisions of our ) Tj ET Q q 0 0 0 rg BT 468.25 610.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 500.07 610.25 Td (, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (selection of investment properties to be recommended to our board of directors, the negotiations for these investments, and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (property management and leasing of properties we acquire directly) Tj ET Q q 0 0 0 rg BT 317.02 586.25 Td (. Our ) Tj ET Q q 0 0 0 rg BT 342.02 586.25 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 381.19 586.25 Td (Agreement was amended and restated as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (December6, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.58 574.25 Td ( and has a one year term that may be renewed for an unlimited number of successive periods \(up to one year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (at a time\) upon the mutual consent of the parties. Renewals of the agreement must be approved by the Conflicts Committee. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (The ) Tj ET Q q 0 0 0 rg BT 67.50 550.25 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 106.67 550.25 Td (Agreement may be terminated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 526.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 526.25 Td (immediately by us \(i\) in the event our ) Tj ET Q q 0 0 0 rg BT 238.74 526.25 Td (Advisor commits fraud, criminal conduct, willful misconduct or negligent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 514.25 Td (breach of fiduciary duty) Tj ET Q q 0 0 0 rg BT 181.70 514.25 Td (, \(ii\) upon the bankruptcy of our ) Tj ET Q q 0 0 0 rg BT 312.23 514.25 Td (Advisor or its involvement in similar insolvency proceedings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 502.25 Td (or \(iii\) in the event of a material breach of the ) Tj ET Q q 0 0 0 rg BT 270.64 502.25 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 309.81 502.25 Td (Agreement by our ) Tj ET Q q 0 0 0 rg BT 384.52 502.25 Td (Advisor that remains uncured after 10 days) Tj ET Q q 0 0 0 rg BT 559.83 502.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 490.25 Td (written notice;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 466.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 466.25 Td (without cause or penalty by us or by our ) Tj ET Q q 0 0 0 rg BT 249.03 466.25 Td (Advisor upon 60 days) Tj ET Q q 0 0 0 rg BT 339.67 466.25 Td ( written notice; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 442.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 442.25 Td (immediately by our ) Tj ET Q q 0 0 0 rg BT 166.26 442.25 Td (Advisor upon our bankruptcy or involvement in similar insolvency proceedings or any material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 430.25 Td (breach of the ) Tj ET Q q 0 0 0 rg BT 140.14 430.25 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 179.31 430.25 Td (Agreement by us that remains uncured after 10 days) Tj ET Q q 0 0 0 rg BT 390.72 430.25 Td ( written notice.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 406.25 Td (Our ) Tj ET Q q 0 0 0 rg BT 85.50 406.25 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 156.70 406.25 Td (filiates receive compensation and are reimbursed for certain expenses in connection with services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (provided to us. ) Tj ET Q q 0 0 0 rg BT 114.54 394.25 Td (These payments are summarized below) Tj ET Q q 0 0 0 rg BT 271.61 394.25 Td (. In the event the ) Tj ET Q q 0 0 0 rg BT 342.97 394.25 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 382.14 394.25 Td (Agreement is terminated, our ) Tj ET Q q 0 0 0 rg BT 501.27 394.25 Td (Advisor will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (be paid all earned, accrued and unpaid compensation and expense reimbursements within 30 days. Upon termination, we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (also be obligated to purchase certain ownership interests in the Operating Partnership owned by our ) Tj ET Q q 0 0 0 rg BT 450.73 370.25 Td (Advisor or other af) Tj ET Q q 0 0 0 rg BT 526.91 370.25 Td (filiates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (of Hines under certain circumstances.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 334.25 Td (As described more fully in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.14 334.25 Td (Note 1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.08 334.25 Td ( Or) Tj ET Q q 0 0 0 rg BT 229.45 334.25 Td (ganization, in connection with the Follow-On Of) Tj ET Q q 0 0 0 rg BT 424.51 334.25 Td (fering, on December 6, 2017, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (implemented a Restructuring, which eliminated or reduced certain fees payable to our ) Tj ET Q q 0 0 0 rg BT 395.15 322.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 426.82 322.25 Td (. ) Tj ET Q q 0 0 0 rg BT 434.14 322.25 Td (The following summarizes the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (fees paid to our ) Tj ET Q q 0 0 0 rg BT 113.87 310.25 Td (Advisor until the ef) Tj ET Q q 0 0 0 rg BT 191.73 310.25 Td (fective date of the Restructuring, as well as fees payable to our ) Tj ET Q q 0 0 0 rg BT 444.70 310.25 Td (Advisor as of the ef) Tj ET Q q 0 0 0 rg BT 523.38 310.25 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (date of the Restructuring:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 274.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 274.25 Td (Prior to the ef) Tj ET Q q 0 0 0 rg BT 141.08 274.25 Td (fective date of the Restructuring, we reimbursed our ) Tj ET Q q 0 0 0 rg BT 351.84 274.25 Td (Advisor for all or) Tj ET Q q 0 0 0 rg BT 421.37 274.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 490.61 274.25 Td (fering costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 262.25 Td (deemed issuer costs incurred by our ) Tj ET Q q 0 0 0 rg BT 231.52 262.25 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 296.61 262.25 Td (filiates in connection with our or) Tj ET Q q 0 0 0 rg BT 427.23 262.25 Td (ganization and the Initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 250.25 Td (Of) Tj ET Q q 0 0 0 rg BT 96.37 250.25 Td (fering up to 2.5% of gross of) Tj ET Q q 0 0 0 rg BT 211.45 250.25 Td (fering proceeds from our public of) Tj ET Q q 0 0 0 rg BT 349.28 250.25 Td (ferings. Ef) Tj ET Q q 0 0 0 rg BT 393.80 250.25 Td (fective as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.17 250.25 Td (December6, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.75 250.25 Td (, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 238.25 Td (Advisor agreed to advance all of our or) Tj ET Q q 0 0 0 rg BT 242.70 238.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 311.94 238.25 Td (fering costs related to the Follow-On Of) Tj ET Q q 0 0 0 rg BT 472.28 238.25 Td (fering through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 226.25 Td (December 31, 2018. ) Tj ET Q q 0 0 0 rg BT 171.90 226.25 Td (W) Tj ET Q q 0 0 0 rg BT 180.54 226.25 Td (e will reimburse our ) Tj ET Q q 0 0 0 rg BT 263.30 226.25 Td (Advisor for all such advanced expenses as well as any or) Tj ET Q q 0 0 0 rg BT 490.82 226.25 Td (ganization and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 214.25 Td (of) Tj ET Q q 0 0 0 rg BT 94.15 214.25 Td (fering costs incurred by our ) Tj ET Q q 0 0 0 rg BT 206.62 214.25 Td (Advisor related to our Initial Of) Tj ET Q q 0 0 0 rg BT 333.91 214.25 Td (fering ratably through December 31, 2023 to the extent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 202.25 Td (cumulative or) Tj ET Q q 0 0 0 rg BT 141.08 202.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 210.32 202.25 Td (fering costs do not exceed an amount equal to 2.5% of gross of) Tj ET Q q 0 0 0 rg BT 462.02 202.25 Td (fering proceeds from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 190.25 Td (public of) Tj ET Q q 0 0 0 rg BT 121.64 190.25 Td (ferings. Following December 31, 2023, we will reimburse our ) Tj ET Q q 0 0 0 rg BT 374.10 190.25 Td (Advisor for any or) Tj ET Q q 0 0 0 rg BT 448.07 190.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 517.30 190.25 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 178.25 Td (costs that it incurs on our behalf as and when incurred, to the extent that aggregate reimbursements to our ) Tj ET Q q 0 0 0 rg BT 509.76 178.25 Td (Advisor for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 166.25 Td (cumulative or) Tj ET Q q 0 0 0 rg BT 141.08 166.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 210.32 166.25 Td (fering costs do not exceed an amount equal to 2.5% of the gross of) Tj ET Q q 0 0 0 rg BT 476.73 166.25 Td (fering proceeds from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 154.25 Td (our public of) Tj ET Q q 0 0 0 rg BT 137.47 154.25 Td (ferings.) Tj ET Q q 0 0 0 rg BT 170.06 154.25 Td (The total reimbursement related to or) Tj ET Q q 0 0 0 rg BT 318.99 154.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 388.23 154.25 Td (fering costs, selling commissions, dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 142.25 Td (manager fees and the distribution and stockholder servicing fees related to a particular public of) Tj ET Q q 0 0 0 rg BT 469.01 142.25 Td (fering may not exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 130.25 Td (15.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.83 130.25 Td ( of gross proceeds from the of) Tj ET Q q 0 0 0 rg BT 231.62 130.25 Td (fering. For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.18 130.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.77 130.25 Td (, our ) Tj ET Q q 0 0 0 rg BT 439.05 130.25 Td (Advisor incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.58 130.25 Td ($4.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.48 130.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 118.25 Td (in or) Tj ET Q q 0 0 0 rg BT 104.43 118.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 173.67 118.25 Td (fering costs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 94.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 94.25 Td (Prior to the ef) Tj ET Q q 0 0 0 rg BT 141.08 94.25 Td (fective date of the Restructuring, our ) Tj ET Q q 0 0 0 rg BT 290.20 94.25 Td (Advisor received acquisition fees of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.09 94.25 Td (2.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.92 94.25 Td ( of \(i\) the purchase price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 82.25 Td (of real estate investments acquired, including any debt attributable to such investments, or the total principal amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 70.25 Td (borrowed under any loans made or acquired directly by us, or \(ii\) when we made an investment or made or acquired a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 58.25 Td (loan indirectly through another entity) Tj ET Q q 0 0 0 rg BT 234.75 58.25 Td (, such investment) Tj ET Q q 0 0 0 rg BT 307.25 58.25 Td (s pro rata share of the gross asset value of real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 46.25 Td (investments held by that entity) Tj ET Q q 0 0 0 rg BT 208.11 46.25 Td (, including any debt attributable to such investments, or the total principal amount ) Tj ET Q endstream endobj 233 0 obj <> endobj 234 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 31.60 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 742.10 Td (borrowed under any loans made or acquired by that entity) Tj ET Q q 0 0 0 rg BT 316.66 742.10 Td (. Under the ) Tj ET Q q 0 0 0 rg BT 363.32 742.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 402.49 742.10 Td (Agreement, we also reimburse our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 730.10 Td (Advisor for certain acquisition expenses incurred in connection with the purchase of real estate investments. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 718.10 Td (Advisor earned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.87 718.10 Td ($6.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.76 718.10 Td ( in acquisition fees during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.93 718.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.51 718.10 Td (, and we have reimbursed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 706.10 Td (our ) Tj ET Q q 0 0 0 rg BT 101.28 706.10 Td (Advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.00 706.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.89 706.10 Td ( related to acquisition expenses incurred in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.45 706.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.45 706.10 Td (. ) Tj ET Q q 0 0 0 rg BT 382.89 706.10 Td (As of the ef) Tj ET Q q 0 0 0 rg BT 429.64 706.10 Td (fective date of the Restructuring, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 694.10 Td (the Company no longer pays acquisition fees to our ) Tj ET Q q 0 0 0 rg BT 294.02 694.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 325.69 694.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 670.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 670.10 Td (Our ) Tj ET Q q 0 0 0 rg BT 103.50 670.10 Td (Advisor also receives asset management fees of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.04 670.10 Td (0.0625%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.87 670.10 Td ( per month of the cost of our real estate investments at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 658.10 Td (the end of each month; provided that, with respect to real estate investments included in the most recent determination ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 646.10 Td (of our NA) Tj ET Q q 0 0 0 rg BT 125.81 646.10 Td (V) Tj ET Q q 0 0 0 rg BT 132.86 646.10 Td ( per share, the asset management fees will be equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.99 646.10 Td (0.0625%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.82 646.10 Td ( per month of the most recently determined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 634.10 Td (value of such real estate investments at the end of each month. ) Tj ET Q q 0 0 0 rg BT 340.36 634.10 Td (As of the ef) Tj ET Q q 0 0 0 rg BT 387.11 634.10 Td (fective date of the Restructuring , the asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 622.10 Td (management fee cannot exceed an amount equal to 1/12th of 1.25% of our NA) Tj ET Q q 0 0 0 rg BT 399.60 622.10 Td (V) Tj ET Q q 0 0 0 rg BT 406.64 622.10 Td ( at the end of each applicable month. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 610.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 135.90 610.10 Td (, as of the ef) Tj ET Q q 0 0 0 rg BT 184.87 610.10 Td (fective date of the Restructuring, the asset management fee can be paid, at our ) Tj ET Q q 0 0 0 rg BT 499.18 610.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 531.78 610.10 Td () Tj ET Q q 0 0 0 rg BT 534.55 610.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 598.10 Td (election, in cash, Class I shares or Class I OP) Tj ET Q q 0 0 0 rg BT 266.43 598.10 Td ( Units in the Operating Partnership. Our ) Tj ET Q q 0 0 0 rg BT 431.13 598.10 Td (Advisor earned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.99 598.10 Td ($4.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.89 598.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 586.10 Td (asset management fees during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.54 586.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.12 586.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 562.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 562.10 Td (W) Tj ET Q q 0 0 0 rg BT 94.64 562.10 Td (e will reimburse our ) Tj ET Q q 0 0 0 rg BT 177.40 562.10 Td (Advisor for all expenses paid or incurred by our ) Tj ET Q q 0 0 0 rg BT 371.51 562.10 Td (Advisor in connection with the services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 550.10 Td (provided to us, subject to the limitation that we will not reimburse our ) Tj ET Q q 0 0 0 rg BT 368.18 550.10 Td (Advisor for any amount by which our operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 538.10 Td (expenses \(including the asset management fee and the performance participation allocation\) at the end of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.05 538.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.71 538.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 526.10 Td (preceding fiscal quarters exceeds the greater of: \(A\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.89 526.10 Td (2.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.72 526.10 Td ( of our average invested assets, or \(B\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.28 526.10 Td (25.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.11 526.10 Td ( of our net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 514.10 Td (income determined without reduction for any additions to reserves for depreciation, bad debts or other similar non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 502.10 Td (cash reserves and excluding any gain from the sale of our assets for that period \(the 2%/25% Limitation\). In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.69 502.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.69 502.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 490.10 Td (these limits were not exceeded. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.56 490.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.56 490.10 Td (, our ) Tj ET Q q 0 0 0 rg BT 264.84 490.10 Td (Advisor incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.38 490.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.27 490.10 Td ( in expenses, such as general and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 478.10 Td (administrative expenses, on our behalf, which were reimbursed by us. See Hines Property Management and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 466.10 Td (Leasing ) Tj ET Q q 0 0 0 rg BT 119.60 466.10 Td (Agreements below for additional information concerning expense reimbursements to Hines.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 442.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 442.10 Td (e also agreed to indemnify our ) Tj ET Q q 0 0 0 rg BT 200.49 442.10 Td (Advisor against losses it incurs in connection with its performance of its obligations under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (the ) Tj ET Q q 0 0 0 rg BT 64.17 430.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 103.33 430.10 Td (Agreement, subject to terms and conditions in the ) Tj ET Q q 0 0 0 rg BT 304.13 430.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 343.30 430.10 Td (Agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 406.10 Td (Through its ownership of the Special OP) Tj ET Q q 0 0 0 rg BT 230.94 406.10 Td ( Units of the Operating Partnership, our ) Tj ET Q q 0 0 0 rg BT 391.47 406.10 Td (Advisor also holds a performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (participation interest in the Operating Partnership that entitles it to receive an allocation of the Operating Partnership) Tj ET Q q 0 0 0 rg BT 519.30 394.10 Td (s total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (return to its capital account. ) Tj ET Q q 0 0 0 rg BT 166.17 382.10 Td (T) Tj ET Q q 0 0 0 rg BT 171.58 382.10 Td (otal return is defined as distributions paid or accrued plus the change in NA) Tj ET Q q 0 0 0 rg BT 472.71 382.10 Td (V) Tj ET Q q 0 0 0 rg BT 479.75 382.10 Td ( for the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (period. Under the limited partnership agreement of the Operating Partnership, the annual total return will be allocated solely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (to our ) Tj ET Q q 0 0 0 rg BT 75.56 358.10 Td (Advisor after the other unit holders have received a total return of 5% \(after recouping any loss carryforward amount\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (and such allocation will continue until the allocation between our ) Tj ET Q q 0 0 0 rg BT 313.26 346.10 Td (Advisor and all other unit holders is equal to 12.5% and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (87.5% respectively) Tj ET Q q 0 0 0 rg BT 125.99 334.10 Td (. ) Tj ET Q q 0 0 0 rg BT 133.31 334.10 Td (Thereafter) Tj ET Q q 0 0 0 rg BT 174.54 334.10 Td (, our ) Tj ET Q q 0 0 0 rg BT 194.82 334.10 Td (Advisor will receive an allocation of 12.5% of the annual total return. ) Tj ET Q q 0 0 0 rg BT 478.16 334.10 Td (The allocation of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (performance participation interest is ultimately determined at the end of each calendar year) Tj ET Q q 0 0 0 rg BT 413.88 322.10 Td (, so long as the ) Tj ET Q q 0 0 0 rg BT 475.54 322.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 514.71 322.10 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (has not been terminated, and will be paid in cash or Class I OP) Tj ET Q q 0 0 0 rg BT 300.68 310.10 Td ( Units of the Operating Partnership, at the election of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 81.67 298.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (The Dealer) Tj ET Q q 0 0 0 rg BT 97.30 274.10 Td ( Manager) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 250.10 Td (Initial Offering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 226.10 Td (The table below summarizes the fees paid to the Dealer Manager with respect to the sale of IPO Shares in the Initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (Of) Tj ET Q q 0 0 0 rg BT 60.37 214.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 89.07 214.10 Td (The upfront selling commissions and dealer manager fees were each a percentage of the gross of) Tj ET Q q 0 0 0 rg BT 475.12 214.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (the shares sold in the primary portion of the Initial Of) Tj ET Q q 0 0 0 rg BT 264.21 202.10 Td (fering. No upfront selling commissions or dealer manager fees were paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (with respect to any shares sold issued under our distribution reinvestment plan. ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 143.60 344.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 143.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 143.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 143.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 143.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 143.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 113.60 344.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 113.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 113.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 113.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 113.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 113.60 54.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 393.5 143.60000000000002 m 446.5 143.60000000000002 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 450.5 143.60000000000002 m 503.5 143.60000000000002 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 507.5 143.60000000000002 m 561.5 143.60000000000002 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 393.5 143.60000000000002 m 446.5 143.60000000000002 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 450.5 143.60000000000002 m 503.5 143.60000000000002 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 507.5 143.60000000000002 m 561.5 143.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.90 158.28 Td (Class ) Tj ET Q q 0 0 0 rg BT 424.91 158.28 Td (AX) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.10 148.28 Td (Shar) Tj ET Q q 0 0 0 rg BT 425.57 148.28 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.00 158.28 Td (Class ) Tj ET Q q 0 0 0 rg BT 482.19 158.28 Td (TX) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.10 148.28 Td (Shar) Tj ET Q q 0 0 0 rg BT 482.57 148.28 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 515.80 158.28 Td (Class IX) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.60 148.28 Td (Shar) Tj ET Q q 0 0 0 rg BT 539.98 148.28 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 133.27 Td (Selling Commissions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.55 133.27 Td (7.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.55 133.27 Td (2.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 133.27 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 118.27 Td (Dealer Manager Fee Paid by Us from Of) Tj ET Q q 0 0 0 rg BT 219.82 118.27 Td (fering Proceeds) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.55 118.27 Td (1.50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.55 118.27 Td (1.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 118.27 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 103.27 Td ( ) Tj ET Q q 0 0 0 rg BT 56.45 103.27 Td (Advisor Payment of a Portion of the Dealer Manager Fee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.55 103.27 Td (1.50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.55 103.27 Td (1.50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.05 103.27 Td (1.50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 88.27 Td (Annual Distribution and Stockholder Servicing Fees) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 266.69 92.80 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 88.27 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.55 88.27 Td (1.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.05 88.27 Td (0.25%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 57.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 57.10 Td (In addition, the Dealer Manager received annual distribution and stockholder servicing fees of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.31 57.10 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.14 57.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.47 57.10 Td (0.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.30 57.10 Td ( of the gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 45.10 Td (of) Tj ET Q q 0 0 0 rg BT 76.15 45.10 Td (fering price per Class ) Tj ET Q q 0 0 0 rg BT 164.27 45.10 Td (T) Tj ET Q q 0 0 0 rg BT 170.20 45.10 Td ( share and Class I share, respectively through October 2, 2017 and now) Tj ET Q q 0 0 0 rg BT 454.47 45.10 Td (, since we are no longer ) Tj ET Q endstream endobj 235 0 obj <> endobj 236 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 31.60 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (of) Tj ET Q q 0 0 0 rg BT 76.15 742.10 Td (fering IPO Shares, continues to receive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.27 742.10 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.10 742.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.43 742.10 Td (0.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.26 742.10 Td ( of the most recently determined NA) Tj ET Q q 0 0 0 rg BT 440.59 742.10 Td (V) Tj ET Q q 0 0 0 rg BT 447.63 742.10 Td ( per share for the Class ) Tj ET Q q 0 0 0 rg BT 541.86 742.10 Td (TX ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (shares and Class IX shares purchased and outstanding. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 706.10 Td (Follow-On Offering) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 682.10 Td (The table below summarizes the fees payable to the Dealer Manager) Tj ET Q q 0 0 0 rg BT 341.37 682.10 Td (, ef) Tj ET Q q 0 0 0 rg BT 353.96 682.10 Td (fective as of December 6, 2017, the ef) Tj ET Q q 0 0 0 rg BT 506.21 682.10 Td (fective date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (of the Restructuring, with respect to the sale of Follow-On Of) Tj ET Q q 0 0 0 rg BT 296.71 670.10 Td (fering Shares. ) Tj ET Q q 0 0 0 rg BT 354.57 670.10 Td (The upfront selling commissions and dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (manager fees are each a percentage of the gross of) Tj ET Q q 0 0 0 rg BT 251.09 658.10 Td (fering proceeds of the shares sold in the primary of) Tj ET Q q 0 0 0 rg BT 455.01 658.10 Td (fering. No upfront selling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (commissions or dealer manager fees are payable with respect to shares issued under our distribution reinvestment plan. ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 599.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 599.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 599.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 599.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 599.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 599.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 599.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 599.60 54.00 -15.00 re f /GS0 gs 1 1 1 rg /GS0 gs 49.50 584.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 569.60 286.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 569.60 53.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 569.60 4.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 569.60 53.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 569.60 4.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 569.60 54.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 569.60 4.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 569.60 54.00 -35.00 re f /GS0 gs 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 335.5 599.6 m 388.5 599.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 392.5 599.6 m 445.5 599.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 449.5 599.6 m 503.5 599.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 507.5 599.6 m 561.5 599.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 335.5 599.6 m 388.5 599.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 392.5 599.6 m 445.5 599.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 449.5 599.6 m 503.5 599.6 l s 0 0 0 RG /GS0 gs 0.50 w 0 i [] 0 d 0 J 0 j 3 M 507.5 599.6 m 561.5 599.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 345.70 614.28 Td (Class ) Tj ET Q q 0 0 0 rg BT 370.89 614.28 Td (T) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.10 604.28 Td (Shar) Tj ET Q q 0 0 0 rg BT 367.57 604.28 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.05 614.28 Td (Class S) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.10 604.28 Td (Shar) Tj ET Q q 0 0 0 rg BT 424.57 604.28 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 459.70 614.28 Td (Class D) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.60 604.28 Td (Shar) Tj ET Q q 0 0 0 rg BT 482.07 604.28 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.40 614.28 Td (Class I) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.60 604.28 Td (Shar) Tj ET Q q 0 0 0 rg BT 539.98 604.28 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 589.27 Td (Selling Commission) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.05 589.27 Td (3.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.05 589.27 Td (3.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 589.27 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.15 589.27 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 574.27 Td (Dealer Manager Fee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.05 574.27 Td (0.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 574.27 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 574.27 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.15 574.27 Td (None) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 559.27 Td (Ongoing Distribution and Stockholder Servicing Fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 549.27 Td (\(as a percentage of the aggregate NA) Tj ET Q q 0 0 0 rg BT 203.96 549.27 Td (V) Tj ET Q q 0 0 0 rg BT 211.00 549.27 Td ( of the outstanding shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.00 539.27 Td (each class of common stock\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.05 539.27 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.05 539.27 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.05 539.27 Td (0.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.15 539.27 Td (None) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 511.10 Td (During the year ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.21 511.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.21 511.10 Td (:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 487.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 487.10 Td (the Dealer Manager earned approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.30 487.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.20 487.10 Td ( in dealer manager fees, which excludes the amount paid to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 475.10 Td (Dealer Manager by our ) Tj ET Q q 0 0 0 rg BT 180.96 475.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 212.78 475.10 Td (, in connection with the Initial Of) Tj ET Q q 0 0 0 rg BT 346.18 475.10 Td (fering, a portion of which the Dealer Manager re-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 463.10 Td (allowed to participating broker dealers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 439.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 439.10 Td (the Dealer Manager earned approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.30 439.10 Td ($4.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.20 439.10 Td ( in selling commissions in connection with the Initial Of) Tj ET Q q 0 0 0 rg BT 531.26 439.10 Td (fering, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 427.10 Td (all of which the Dealer Manager re-allowed to participating broker dealers; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 403.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 403.10 Td (the Dealer Manager earned approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.30 403.10 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.20 403.10 Td ( in distribution and stockholder servicing fees in connection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 391.10 Td (with the Initial Of) Tj ET Q q 0 0 0 rg BT 157.75 391.10 Td (fering, all of which the Dealer Manager re-allowed to participating broker dealers.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 367.10 Td (Hines) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 68.00 343.10 Td (Property Management and Leasing ) Tj ET Q q 0 0 0 rg BT 215.96 343.10 Td (Agreements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 319.10 Td (Hines or its af) Tj ET Q q 0 0 0 rg BT 124.20 319.10 Td (filiates manage the properties in which we invest. ) Tj ET Q q 0 0 0 rg BT 327.29 319.10 Td (When we acquire properties directly) Tj ET Q q 0 0 0 rg BT 472.13 319.10 Td (, we expect that we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 307.10 Td (will pay Hines property management fees, leasing fees, tenant construction fees and other fees customarily paid to a property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 295.10 Td (manager) Tj ET Q q 0 0 0 rg BT 83.87 295.10 Td (. Hines is wholly-owned by Jef) Tj ET Q q 0 0 0 rg BT 210.62 295.10 Td (frey C. Hines and his father) Tj ET Q q 0 0 0 rg BT 320.74 295.10 Td (, Gerald D. Hines.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 271.10 Td (During the year ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.21 271.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.21 271.10 Td (, Hines earned the following approximate amounts pursuant to property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 259.10 Td (management agreements under which Hines manages some of our properties:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 235.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 235.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.89 235.10 Td ( in property management fees;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 211.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 211.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.89 211.10 Td ( in leasing commissions and construction management fees; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 187.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 187.10 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.89 187.10 Td ( for all costs Hines incurred in providing property management and leasing services pursuant to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 175.10 Td (property management and leasing agreements. Included in this reimbursement of operating costs are the cost of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 163.10 Td (personnel and overhead expenses related to such personnel located at the property as well as of) Tj ET Q q 0 0 0 rg BT 465.96 163.10 Td (f-site personnel located ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 151.10 Td (in Hines) Tj ET Q q 0 0 0 rg BT 122.20 151.10 Td ( headquarters and regional of) Tj ET Q q 0 0 0 rg BT 238.63 151.10 Td (fices, to the extent the same relate to or support the performance of Hines) Tj ET Q q 0 0 0 rg BT 535.00 151.10 Td ( duties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 139.10 Td (under the agreements.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 68.00 115.10 Td (Credit Facilities with Hines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 91.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.72 91.10 Td (December15, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.31 91.10 Td (, the Company entered into a credit facility with Hines \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.01 91.10 Td (Hines Credit Facility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.88 91.10 Td (\) with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 79.10 Td (maximum principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.42 79.10 Td ($75.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.31 79.10 Td ( with interest and payment terms similar to the Restated Hines Credit Facility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 67.10 Td (described below) Tj ET Q q 0 0 0 rg BT 114.60 67.10 Td (. ) Tj ET Q q 0 0 0 rg BT 121.92 67.10 Td (The Hines Credit Facility had a maturity date of December 15, 2017. ) Tj ET Q q 0 0 0 rg BT 402.50 67.10 Td (W) Tj ET Q q 0 0 0 rg BT 411.13 67.10 Td (e terminated the Hines Credit Facility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 55.10 Td (on October 2, 2017 and subsequently on October 2, 2017, the Operating Partnership entered into an uncommitted loan ) Tj ET Q endstream endobj 237 0 obj <> endobj 238 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 31.60 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (agreement with Hines for a maximum principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.77 742.10 Td ($240.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.66 742.10 Td ( \(the Restated Hines Credit Facility\). ) Tj ET Q q 0 0 0 rg BT 505.54 742.10 Td (The Restated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (Hines Credit Facility was subsequently amended on November 30, 2017 to reduce the maximum principal amount to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.45 730.10 Td ($75.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 718.10 Td (. Interest on each advance under the Restated Hines Credit Facility is char) Tj ET Q q 0 0 0 rg BT 374.44 718.10 Td (ged monthly at a variable rate, which is \(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Hines) Tj ET Q q 0 0 0 rg BT 75.92 706.10 Td ( then-current borrowing rate under its revolving credit facility or \(ii\) if the Operating Partnership enters into a revolving ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (credit facility \(the OP) Tj ET Q q 0 0 0 rg BT 140.98 694.10 Td ( Facility\), the rate under such facility) Tj ET Q q 0 0 0 rg BT 292.77 694.10 Td (. Each advance under the Restated Hines Credit Facility must be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (repaid within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.54 682.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.21 682.10 Td ( months, subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.26 682.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.70 682.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.20 682.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.87 682.10 Td (-month extension at the option of the Operating Partnership and subject to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (satisfaction of certain conditions. ) Tj ET Q q 0 0 0 rg BT 185.06 670.10 Td (The Restated Hines Credit Facility will terminate on the earlier of \(a\) the termination of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (availability period as determined by Hines at its discretion \(which will not impact the maturity date of any outstanding or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (previously approved advance under the loan agreement\); \(b\) December 31, 2018; and \(c\) the date Hines accelerates the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (repayment of the loan agreement pursuant to any event of default. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 610.10 Td (Notwithstanding that each advance under the Restated Hines Credit Facility matures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.18 610.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.85 610.10 Td ( months after it is made, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (Operating Partnership is required to repay each advance with any capital raised, unless the Operating Partnership enters into a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (revolving credit facility) Tj ET Q q 0 0 0 rg BT 143.76 586.10 Td (, at which point the Operating Partnership may use such proceeds from its public of) Tj ET Q q 0 0 0 rg BT 477.67 586.10 Td (fering to repay the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (OP) Tj ET Q q 0 0 0 rg BT 62.41 574.10 Td ( Facility) Tj ET Q q 0 0 0 rg BT 94.81 574.10 Td (, if any) Tj ET Q q 0 0 0 rg BT 122.21 574.10 Td (, prior to repaying any advances under the Restated Hines Credit Facility) Tj ET Q q 0 0 0 rg BT 413.14 574.10 Td (. ) Tj ET Q q 0 0 0 rg BT 417.96 574.10 Td (The Restated Hines Credit Facility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (also permits voluntary prepayment of principal and accrued interest.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 538.10 Td (The Restated Hines Credit Facility requires the maintenance of certain financial covenants beginning the earlier of \(a\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (September 30, 2018 or \(b\) the ef) Tj ET Q q 0 0 0 rg BT 180.06 526.10 Td (fective date of the OP) Tj ET Q q 0 0 0 rg BT 266.88 526.10 Td ( Facility) Tj ET Q q 0 0 0 rg BT 299.28 526.10 Td (, if any) Tj ET Q q 0 0 0 rg BT 326.67 526.10 Td (, which includes covenants concerning indebtedness to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (total asset value. In addition, the Restated Hines Credit Facility contains customary af) Tj ET Q q 0 0 0 rg BT 393.07 514.10 Td (firmative and negative covenants, which, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (among other things, prohibit us and the Operating Partnership from: \(i\) mer) Tj ET Q q 0 0 0 rg BT 351.98 502.10 Td (ging with other companies or changing ownership ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (interest; \(ii\) selling all or substantially all of our assets or properties; and \(iii\) if in default under the loan agreement, paying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (distributions to our stockholders other than as required to maintain our status as a real estate investment trust. ) Tj ET Q q 0 0 0 rg BT 489.44 478.10 Td (The Restated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (Hines Credit Facility also requires us to deliver to Hines certain quarterly and annual financial information.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 442.10 Td (For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.19 442.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.78 442.10 Td (, we borrowed an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.89 442.10 Td ($58.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.78 442.10 Td ( under the Hines Credit Facility and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (Restated Hines Credit Facility and made payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.06 430.10 Td ($103.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.95 430.10 Td ( on these facilities, resulting in an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.14 430.10 Td ($1) Tj ET Q q 0 0 0 rg BT 471.77 430.10 Td (1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.66 430.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (outstanding balance under the Restated Hines Credit Facility as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 418.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.74 418.10 Td (. ) Tj ET Q q 0 0 0 rg BT 402.69 418.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 452.59 418.10 Td (, we incurred an aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.83 406.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.72 406.10 Td ( in interest expense for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.10 406.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.69 406.10 Td ( under both of the credit facilities with Hines. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (Ownership Inter) Tj ET Q q 0 0 0 rg BT 121.21 382.10 Td (ests) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 68.00 358.10 Td (The Operating Partnership) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 334.10 Td (On July 31, 2013, we formed the Operating Partnership. Hines Global REIT) Tj ET Q q 0 0 0 rg BT 375.26 334.10 Td ( II ) Tj ET Q q 0 0 0 rg BT 386.37 334.10 Td (Associates Limited Partnership made an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (initial investment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.04 322.10 Td ($190,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.54 322.10 Td ( in limited partnership interests of the Operating Partnership and owned less than a 0.1% limited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (partnership interest in the Operating Partnership as of December 31, 2017. Our ) Tj ET Q q 0 0 0 rg BT 367.69 310.10 Td (Advisor owns the Special OP) Tj ET Q q 0 0 0 rg BT 485.09 310.10 Td ( Units in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (Operating Partnership, as described in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.96 298.10 Td (Item 13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.78 298.10 Td (. Certain Relationships and Related ) Tj ET Q q 0 0 0 rg BT 379.46 298.10 Td (T) Tj ET Q q 0 0 0 rg BT 385.21 298.10 Td (ransactions, and Director Independence. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (Policies and Pr) Tj ET Q q 0 0 0 rg BT 113.70 274.10 Td (ocedur) Tj ET Q q 0 0 0 rg BT 142.96 274.10 Td (es for) Tj ET Q q 0 0 0 rg BT 166.38 274.10 Td ( Review of Related Party ) Tj ET Q q 0 0 0 rg BT 274.77 274.10 Td (T) Tj ET Q q 0 0 0 rg BT 280.70 274.10 Td (ransactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 250.10 Td (Potential conflicts of interest exist among us, Hines, our ) Tj ET Q q 0 0 0 rg BT 294.35 250.10 Td (Advisor and other af) Tj ET Q q 0 0 0 rg BT 376.65 250.10 Td (filiates of Hines in relation to our existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (agreements and how we will operate. Currently) Tj ET Q q 0 0 0 rg BT 241.51 238.10 Td (, three of our five directors are independent directors, and each of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (independent directors, serve on the Conflicts Committee of our board of directors. ) Tj ET Q q 0 0 0 rg BT 383.34 226.10 Td (The Conflicts Committee reviews and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (approves all matters that our board of directors believes may involve conflicts of interest.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 190.10 Td (In order to reduce the ef) Tj ET Q q 0 0 0 rg BT 164.16 190.10 Td (fect of certain potential conflicts of interest, our Charter contains a number of restrictions relating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (to transactions we enter into with Hines, our ) Tj ET Q q 0 0 0 rg BT 229.13 178.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 260.95 178.10 Td (, any of our directors and their respective af) Tj ET Q q 0 0 0 rg BT 435.42 178.10 Td (filiates. ) Tj ET Q q 0 0 0 rg BT 469.95 178.10 Td (These restrictions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (include, among others, the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 142.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 142.10 Td (Except as otherwise permitted in our Charter) Tj ET Q q 0 0 0 rg BT 264.98 142.10 Td (, we will not engage in transactions with Hines, our ) Tj ET Q q 0 0 0 rg BT 472.72 142.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 504.54 142.10 Td (, any of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 130.10 Td (directors or their respective af) Tj ET Q q 0 0 0 rg BT 205.76 130.10 Td (filiates unless a majority of our directors, including a majority of our independent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 118.10 Td (directors, not otherwise interested in the transaction approve such transactions as fair and reasonable to us and on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 106.10 Td (terms and conditions not less favorable to us than those available from unaf) Tj ET Q q 0 0 0 rg BT 387.96 106.10 Td (filiated third parties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 82.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 82.10 Td (W) Tj ET Q q 0 0 0 rg BT 94.64 82.10 Td (e will not purchase a property from Hines, our ) Tj ET Q q 0 0 0 rg BT 281.81 82.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 313.63 82.10 Td (, any of our directors or their respective af) Tj ET Q q 0 0 0 rg BT 481.99 82.10 Td (filiates without a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 70.10 Td (determination by a majority of our directors, including a majority of our independent directors, not otherwise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 58.10 Td (interested in the transaction that the transaction is fair and reasonable to us and at a price no greater than the cost of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 46.10 Td (property to Hines, our ) Tj ET Q q 0 0 0 rg BT 176.26 46.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 208.08 46.10 Td (, any of our directors or their respective af) Tj ET Q q 0 0 0 rg BT 376.44 46.10 Td (filiates, unless there is substantial justification ) Tj ET Q endstream endobj 239 0 obj <> endobj 240 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 31.60 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 742.10 Td (for any amount that exceeds such cost and such excess amount is determined to be reasonable. In all cases where ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 730.10 Td (assets are acquired from Hines, our ) Tj ET Q q 0 0 0 rg BT 229.01 730.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 260.83 730.10 Td (, any of our directors or their respective af) Tj ET Q q 0 0 0 rg BT 429.19 730.10 Td (filiates, the fair market value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 718.10 Td (such assets will be determined by an independent expert selected by our independent directors. In no event will we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 706.10 Td (acquire any property from Hines, our ) Tj ET Q q 0 0 0 rg BT 236.79 706.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 268.61 706.10 Td (, any of our directors or their respective af) Tj ET Q q 0 0 0 rg BT 436.97 706.10 Td (filiates at a price that exceeds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 694.10 Td (the appraised value of the property; provided that in the case of a development, redevelopment or refurbishment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 682.10 Td (project that we agree to acquire prior to completion of the project, the appraised value will be based upon the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 670.10 Td (completed value of the project as determined at the time the agreement to purchase the property is entered into. ) Tj ET Q q 0 0 0 rg BT 535.37 670.10 Td (W) Tj ET Q q 0 0 0 rg BT 544.01 670.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 658.10 Td (will not sell or lease a property to Hines, our ) Tj ET Q q 0 0 0 rg BT 266.24 658.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 298.06 658.10 Td (, any of our directors or their respective af) Tj ET Q q 0 0 0 rg BT 466.42 658.10 Td (filiates unless a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 646.10 Td (majority of our directors, including a majority of the independent directors, not otherwise interested in the transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 634.10 Td (determine the transaction is fair and reasonable to us. Even following these procedures, Hines and its af) Tj ET Q q 0 0 0 rg BT 502.63 634.10 Td (filiates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 622.10 Td (\(including our of) Tj ET Q q 0 0 0 rg BT 153.58 622.10 Td (ficers and directors\) may make substantial profits in connection with the acquisition or sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 610.10 Td (properties from other investment vehicles sponsored by Hines, our ) Tj ET Q q 0 0 0 rg BT 354.28 610.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 386.10 610.10 Td (, any of our directors or their respective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 598.10 Td (af) Tj ET Q q 0 0 0 rg BT 93.59 598.10 Td (filiates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 574.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 94.64 574.10 Td (e will not enter into joint ventures with Hines, our ) Tj ET Q q 0 0 0 rg BT 296.55 574.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 328.37 574.10 Td (, any of our directors or their respective af) Tj ET Q q 0 0 0 rg BT 496.73 574.10 Td (filiates, unless a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 562.10 Td (majority of our directors, including a majority of our independent directors, not otherwise interested in the transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 550.10 Td (approves such transaction as being fair and reasonable to us and determines that our investment is on terms ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 538.10 Td (substantially similar to the terms of third parties making comparable investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 514.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 514.10 Td (W) Tj ET Q q 0 0 0 rg BT 94.64 514.10 Td (e will not make any loan to Hines, our ) Tj ET Q q 0 0 0 rg BT 249.61 514.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 281.43 514.10 Td (, any of our directors or their respective af) Tj ET Q q 0 0 0 rg BT 449.79 514.10 Td (filiates except in the case of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 502.10 Td (loans to our wholly owned subsidiaries and loans in which an independent expert has appraised the underlying asset. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 490.10 Td (Any loans to us by Hines, our ) Tj ET Q q 0 0 0 rg BT 207.11 490.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 238.93 490.10 Td (, any of our directors or their respective af) Tj ET Q q 0 0 0 rg BT 407.29 490.10 Td (filiates must be approved by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 478.10 Td (majority of our directors, including a majority of the independent directors, not otherwise interested in the transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 466.10 Td (as fair) Tj ET Q q 0 0 0 rg BT 110.31 466.10 Td (, competitive and commercially reasonable, and on terms no less favorable to us than loans between unaf) Tj ET Q q 0 0 0 rg BT 529.99 466.10 Td (filiated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 454.10 Td (parties under the same circumstances.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (Item14.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 84.99 430.10 Td (Principal ) Tj ET Q q 0 0 0 rg BT 130.45 430.10 Td (Accounting Fees and Services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 406.10 Td (Deloitte & ) Tj ET Q q 0 0 0 rg BT 112.81 406.10 Td (T) Tj ET Q q 0 0 0 rg BT 118.22 406.10 Td (ouche LLP) Tj ET Q q 0 0 0 rg BT 161.27 406.10 Td (, the member firms of Deloitte ) Tj ET Q q 0 0 0 rg BT 285.22 406.10 Td (T) Tj ET Q q 0 0 0 rg BT 290.63 406.10 Td (ouche ) Tj ET Q q 0 0 0 rg BT 316.82 406.10 Td (T) Tj ET Q q 0 0 0 rg BT 322.23 406.10 Td (ohmatsu, and their respective af) Tj ET Q q 0 0 0 rg BT 449.50 406.10 Td (filiates \(collectively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (Deloitte & ) Tj ET Q q 0 0 0 rg BT 99.25 394.10 Td (T) Tj ET Q q 0 0 0 rg BT 104.66 394.10 Td (ouche\) serve as our principal accounting firm. Deloitte & ) Tj ET Q q 0 0 0 rg BT 343.00 394.10 Td (T) Tj ET Q q 0 0 0 rg BT 348.41 394.10 Td (ouche audited our financial statements for the years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.96 382.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.96 382.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.40 382.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.40 382.10 Td (. Deloitte & ) Tj ET Q q 0 0 0 rg BT 246.71 382.10 Td (T) Tj ET Q q 0 0 0 rg BT 252.12 382.10 Td (ouche reports directly to our ) Tj ET Q q 0 0 0 rg BT 367.36 382.10 Td (Audit Committee.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (Fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 334.10 Td (Deloitte & ) Tj ET Q q 0 0 0 rg BT 112.81 334.10 Td (T) Tj ET Q q 0 0 0 rg BT 118.22 334.10 Td (ouche) Tj ET Q q 0 0 0 rg BT 144.88 334.10 Td (s aggregate fees billed to us for the fiscal years ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.76 334.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.76 334.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.20 334.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.20 334.10 Td ( are as follows:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 297.60 302.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.50 297.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 297.60 101.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.50 297.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 297.60 101.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 267.60 302.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.50 267.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 267.60 101.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.50 267.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 267.60 101.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 237.60 302.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.50 237.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 237.60 101.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.50 237.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 237.60 101.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 297.6 m 457.5 297.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 297.6 m 562.5 297.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 237.60000000000002 m 457.5 237.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 223.60000000000002 m 457.5 223.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 221.60000000000002 m 457.5 221.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 237.60000000000002 m 562.5 237.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 223.60000000000002 m 562.5 223.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 221.60000000000002 m 562.5 221.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 396.50 302.28 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 501.50 302.28 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 287.27 Td (Audit Fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.00 287.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 287.27 Td (640,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.00 287.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 287.27 Td (601,900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 272.27 Td (Audit-Related Fees ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 132.98 276.80 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.00 272.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 272.27 Td (105,850) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.00 272.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 272.27 Td (181,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 257.27 Td (T) Tj ET Q q 0 0 0 rg BT 58.76 257.27 Td (ax Fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.00 257.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 257.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.00 257.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 257.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 242.27 Td (All Other Fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.00 242.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 242.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.00 242.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 242.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 227.28 Td (T) Tj ET Q q 0 0 0 rg BT 58.75 227.28 Td (otal Fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.00 227.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 227.27 Td (745,850) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.00 227.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 227.27 Td (783,315) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 205.10 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 86.00 205.10 Td (These fees primarily relate to internal control attestation consultations, accounting consultations and other attestation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 193.10 Td (services.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 169.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 60.37 169.10 Td (e-appr) Tj ET Q q 0 0 0 rg BT 88.52 169.10 Td (oval Policies and Pr) Tj ET Q q 0 0 0 rg BT 172.50 169.10 Td (ocedur) Tj ET Q q 0 0 0 rg BT 201.75 169.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 145.10 Td (Our ) Tj ET Q q 0 0 0 rg BT 85.50 145.10 Td (Audit Committee has adopted a pre-approval policy requiring the ) Tj ET Q q 0 0 0 rg BT 349.04 145.10 Td (Audit Committee to pre-approve all audit and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 133.10 Td (permissible non-audit services to be performed by Deloitte & ) Tj ET Q q 0 0 0 rg BT 297.81 133.10 Td (T) Tj ET Q q 0 0 0 rg BT 303.22 133.10 Td (ouche. In determining whether or not to pre-approve services, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 121.10 Td (the ) Tj ET Q q 0 0 0 rg BT 64.17 121.10 Td (Audit Committee will consider whether the service is a permissible service under the rules and regulations promulgated by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 109.10 Td (the SEC, and, if permissible, the potential ef) Tj ET Q q 0 0 0 rg BT 227.00 109.10 Td (fect of such services on the independence of Deloitte & ) Tj ET Q q 0 0 0 rg BT 451.18 109.10 Td (T) Tj ET Q q 0 0 0 rg BT 456.59 109.10 Td (ouche. ) Tj ET Q q 0 0 0 rg BT 487.42 109.10 Td (All services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 97.10 Td (performed for us in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.98 97.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.98 97.10 Td ( were pre-approved or ratified by our ) Tj ET Q q 0 0 0 rg BT 300.19 97.10 Td (Audit Committee.) 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1 rg /GS0 gs 656.50 389.75 46.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 702.50 389.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 706.50 389.75 50.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 351.75 75.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 111.50 351.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 115.50 351.75 63.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 178.50 351.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 182.50 351.75 51.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.50 351.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 237.50 351.75 41.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 351.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 351.75 51.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.50 351.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.50 351.75 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 351.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 351.75 51.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 351.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 351.75 41.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 351.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 351.75 50.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 536.50 351.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 540.50 351.75 53.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 593.50 351.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 597.50 351.75 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 652.50 351.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 656.50 351.75 46.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 702.50 351.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 706.50 351.75 50.00 -12.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237.5 513.75 m 278.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 513.75 m 282.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 513.75 m 333.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 513.75 m 337.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 513.75 m 382.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 513.75 m 482.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 513.75 m 486.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 513.75 m 536.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 536.5 513.75 m 540.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 540.5 513.75 m 593.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 36.5 480.75 m 111.5 480.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 115.5 480.75 m 178.5 480.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182.5 480.75 m 233.5 480.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237.5 480.75 m 278.5 480.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 513.75 m 333.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 480.75 m 333.5 480.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 513.75 m 382.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 480.75 m 382.5 480.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 480.75 m 437.5 480.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 513.75 m 482.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 480.75 m 482.5 480.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 513.75 m 536.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 480.75 m 536.5 480.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 540.5 513.75 m 593.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 540.5 480.75 m 593.5 480.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 597.5 480.75 m 652.5 480.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 656.5 480.75 m 702.5 480.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 706.5 480.75 m 756.5 480.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 351.75 m 382.5 351.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 351.75 m 437.5 351.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 351.75 m 482.5 351.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 351.75 m 536.5 351.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 540.5 351.75 m 593.5 351.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182.5 351.75 m 233.5 351.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182.5 340.75 m 233.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182.5 338.75 m 233.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237.5 351.75 m 278.5 351.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237.5 340.75 m 278.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237.5 338.75 m 278.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 351.75 m 333.5 351.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 340.75 m 333.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 338.75 m 333.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 340.75 m 382.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 338.75 m 382.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 340.75 m 437.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 338.75 m 437.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 340.75 m 482.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 338.75 m 482.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 340.75 m 536.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 338.75 m 536.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 540.5 340.75 m 593.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 540.5 338.75 m 593.5 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 597.5 351.75 m 652.5 351.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 597.5 340.75 m 652.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 597.5 338.75 m 652.5 338.75 l s BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 517.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 118.00 517.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 185.00 517.80 Td () Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 289.00 517.81 Td (Initial Cost ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 324.39 520.98 Td (\(b\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 389.00 517.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 440.00 517.80 Td () Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 447.50 517.81 Td (Gr) Tj ET Q q 0 0 0 rg BT 455.99 517.81 Td (oss ) Tj ET Q q 0 0 0 rg BT 466.43 517.81 Td (Amount at ) Tj ET Q q 0 0 0 rg BT 500.01 517.81 Td (Which Carried at 12/31/2017) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 600.00 517.81 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 679.00 517.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 709.00 517.80 Td () Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 52.65 484.81 Td (Description ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 89.01 487.98 Td (\(a\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 133.25 484.81 Td (Location) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 185.10 484.81 Td (Encumbrances) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 249.50 484.81 Td (Land) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 286.75 491.81 Td (Buildings and) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 285.75 484.81 Td (Impr) Tj ET Q q 0 0 0 rg BT 301.24 484.81 Td (ovements) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 351.80 484.81 Td (T) Tj ET Q q 0 0 0 rg BT 356.15 484.81 Td (otal) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 403.30 505.81 Td (Costs ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 394.35 498.81 Td (Capitalized ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 390.35 491.81 Td (Subsequent to ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 390.95 484.81 Td (Acquisition ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 426.93 487.98 Td (\(c\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 440.00 484.81 Td () Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 453.50 484.81 Td (Land) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 490.25 491.81 Td (Buildings and) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 489.25 484.81 Td (Impr) Tj ET Q q 0 0 0 rg BT 504.74 484.81 Td (ovements) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 555.15 484.81 Td (T) Tj ET Q q 0 0 0 rg BT 559.18 484.81 Td (otal ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 572.20 487.98 Td (\(d\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 604.65 491.81 Td (Accumulated ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 601.90 484.81 Td (Depr) Tj ET Q q 0 0 0 rg BT 616.94 484.81 Td (eciation ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 642.01 487.98 Td (\(e\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 668.20 491.81 Td (Date of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 659.35 484.81 Td (Construction) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 709.35 484.81 Td (Date ) Tj ET Q q 0 0 0 rg BT 724.90 484.81 Td (Acquir) Tj ET Q q 0 0 0 rg BT 745.64 484.81 Td (ed) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 374.30 472.81 Td (\(In thousands\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 460.80 Td (2819 Loker ) Tj ET Q q 0 0 0 rg BT 73.02 460.80 Td (A) Tj ET Q q 0 0 0 rg BT 77.62 460.80 Td (venue East) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 118.00 460.80 Td (Carlsbad, California) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 185.00 460.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 223.65 460.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 240.00 460.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 259.90 460.80 Td (7,200) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 285.00 460.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 311.40 460.80 Td (14,170) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 340.00 460.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 360.40 460.80 Td (21,370) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 389.00 460.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 427.65 460.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 440.00 460.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 444.00 460.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 463.90 460.80 Td (7,200) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.00 460.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 514.40 460.80 Td (14,170) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.00 460.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 571.40 460.80 Td (21,370) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 600.00 460.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 631.55 460.80 Td (\(1,077) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 649.65 460.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 672.00 460.80 Td (1998) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 712.00 460.80 Td (December) Tj ET Q q 0 0 0 rg BT 740.69 460.80 Td (-14) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 448.80 Td (Bishop) Tj ET Q q 0 0 0 rg BT 60.98 448.80 Td (s Square) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 118.00 448.80 Td (Dublin, Ireland) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 211.40 448.80 Td (66,124) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 268.65 448.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 311.40 448.80 Td (53,643) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 360.40 448.80 Td (53,643) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 418.90 448.80 Td (8,359) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 472.65 448.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 514.40 448.80 Td (62,002) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 571.40 448.80 Td (62,002) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 631.55 448.80 Td (\(4,1) Tj ET Q q 0 0 0 rg BT 642.63 448.80 Td (18) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 649.65 448.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 672.00 448.80 Td (2001) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 717.15 448.80 Td (March-15) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 436.80 Td (Domain ) Tj ET Q q 0 0 0 rg BT 63.11 436.80 Td (Apartments) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 118.00 436.80 Td (Las ) Tj ET Q q 0 0 0 rg BT 129.79 436.80 Td (V) Tj ET Q q 0 0 0 rg BT 134.40 436.80 Td (egas, Nevada) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 211.40 436.80 Td (34,300) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 259.90 436.80 Td (5,690) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 311.40 436.80 Td (50,790) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 360.40 436.80 Td (56,480) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 424.15 436.80 Td (1) Tj ET Q q 0 0 0 rg BT 427.65 436.80 Td (10) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 463.90 436.80 Td (5,690) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 514.40 436.80 Td (50,900) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 571.40 436.80 Td (56,590) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 631.55 436.80 Td (\(3,529) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 649.65 436.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 672.00 436.80 Td (2014) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 715.40 436.80 Td (January-16) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 424.80 Td (Cottonwood Corporate) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 417.80 Td (Center) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 118.00 424.80 Td (Salt Lake City) Tj ET Q q 0 0 0 rg BT 158.21 424.80 Td (,) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 118.00 417.80 Td (Utah) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 211.40 417.80 Td (75,81) Tj ET Q q 0 0 0 rg BT 227.15 417.80 Td (1) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 256.40 417.80 Td (13,600) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 311.40 417.80 Td (98,758) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 356.90 417.80 Td (1) Tj ET Q q 0 0 0 rg BT 360.40 417.80 Td (12,358) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 418.90 417.80 Td (1,062) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 460.40 417.80 Td (13,600) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 514.40 417.80 Td (99,820) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 567.90 417.80 Td (1) Tj ET Q q 0 0 0 rg BT 571.40 417.80 Td (13,420) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 631.55 417.80 Td (\(3,698) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 649.65 417.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 663.25 417.80 Td (1997, 2000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 720.50 417.80 Td (July-16) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 405.80 Td (Goodyear Crossing II) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 118.00 405.80 Td (Phoenix, ) Tj ET Q q 0 0 0 rg BT 144.25 405.80 Td (Arizona) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 211.40 405.80 Td (29,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 259.90 405.80 Td (7,270) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 311.40 405.80 Td (41,620) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 360.40 405.80 Td (48,890) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 427.65 405.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 463.90 405.80 Td (7,270) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 514.40 405.80 Td (41,620) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 571.40 405.80 Td (48,890) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 631.55 405.80 Td (\(1,427) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 649.65 405.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 663.25 405.80 Td (2008, 2009) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 716.20 405.80 Td (August-16) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 393.80 Td (Rookwood) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 118.00 393.80 Td (Cincinnati, Ohio) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 211.40 393.80 Td (96,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 256.40 393.80 Td (45,320) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 307.90 393.80 Td (132,466) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 356.90 393.80 Td (177,786) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 424.15 393.80 Td (401) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 460.40 393.80 Td (45,320) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 510.90 393.80 Td (132,867) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 567.90 393.80 Td (178,187) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 631.55 393.80 Td (\(3,267) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 649.65 393.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 663.25 393.80 Td (1993, 2000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 715.40 393.80 Td (January-17) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 381.80 Td (Montrose Student) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 374.80 Td (Residences) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 118.00 374.80 Td (Dublin, Ireland) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 211.40 374.80 Td (27,079) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 259.90 374.80 Td (5,691) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 311.40 374.80 Td (33,705) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 360.40 374.80 Td (39,396) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 418.90 374.80 Td (5,1) Tj ET Q q 0 0 0 rg BT 427.65 374.80 Td (19) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 463.90 374.80 Td (6,322) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 514.40 374.80 Td (38,193) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 571.40 374.80 Td (44,515) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 636.80 374.80 Td (\(751) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 649.65 374.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 671.10 381.80 Td (1964,) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 663.80 374.80 Td (2013-2015) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 717.15 374.80 Td (March-17) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 362.80 Td (Queen's Court Student) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 355.80 Td (Residences) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 118.00 362.80 Td (Reading, United) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 118.00 355.80 Td (Kingdom) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 211.40 355.80 Td (39,798) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 256.40 355.80 Td (14,086) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 311.40 355.80 Td (50,894) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 360.40 355.80 Td (64,980) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 418.90 355.80 Td (1,051) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 460.40 355.80 Td (14,314) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 514.40 355.80 Td (51,717) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 571.40 355.80 Td (66,031) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 636.80 355.80 Td (\(305) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 649.65 355.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 672.00 355.80 Td (2016) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 715.10 355.80 Td (October) Tj ET Q q 0 0 0 rg BT 737.50 355.80 Td (-17) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 343.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 118.00 343.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 185.00 343.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 207.90 343.80 Td (368,1) Tj ET Q q 0 0 0 rg BT 223.65 343.80 Td (12) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 240.00 343.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 256.40 343.80 Td (98,857) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 285.00 343.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 307.90 343.80 Td (476,046) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 340.00 343.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 356.90 343.80 Td (574,903) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 389.00 343.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 415.40 343.80 Td (16,102) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 440.00 343.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 444.00 343.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 460.40 343.80 Td (99,716) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.00 343.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 510.90 343.80 Td (491,289) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.00 343.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 567.90 343.80 Td (591,005) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 600.00 343.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 628.05 343.80 Td (\(18,172) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 649.65 343.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 679.00 343.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 709.00 343.80 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 316.25 Td (\(a\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 316.25 Td (Assets consist of quality of) Tj ET Q q 0 0 0 rg BT 162.14 316.25 Td (fice, retail, industrial and residential/living properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 298.25 Td (\(b\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 298.25 Td (Components of initial cost for the property acquired using a foreign currency were converted using the currency exchange rate as of the date of acquisition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 280.25 Td (\(c\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 280.25 Td (Includes the ef) Tj ET Q q 0 0 0 rg BT 112.68 280.25 Td (fect of changes in the exchange rate between the date of acquisition and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.28 280.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.86 280.25 Td ( for the property that is denominated in a foreign currency) Tj ET Q q 0 0 0 rg BT 712.35 280.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 262.25 Td (\(d\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 262.25 Td (The aggregate cost for federal income tax purposes is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.30 262.25 Td ($614.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.20 262.25 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.36 262.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.94 262.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 244.25 Td (\(e\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 244.25 Td (Real estate assets are depreciated or amortized using the straight-line method over the useful lives of the assets by class. ) Tj ET Q q 0 0 0 rg BT 538.66 244.25 Td (The estimated useful lives for computing depreciation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 232.25 Td (are generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.41 232.25 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.41 232.25 Td ( years for furniture and fixtures, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.64 232.25 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.64 232.25 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.97 232.25 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.97 232.25 Td ( years for electrical and mechanical installations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.10 232.25 Td (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.10 232.25 Td ( years for buildings.) Tj ET Q endstream endobj 247 0 obj <> endobj 248 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.50 33.60 Td (121) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 36.00 548.25 Td (The changes in total r) Tj ET Q q 0 0 0 rg BT 128.60 548.25 Td (eal estate assets for) Tj ET Q q 0 0 0 rg BT 209.77 548.25 Td ( the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.43 548.25 Td (December) Tj ET Q q 0 0 0 rg BT 324.56 548.25 Td ( 31,) Tj ET Q BT /F2 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 35.50 508.75 479.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 508.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 598.50 508.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 602.50 508.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 686.50 508.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 690.50 508.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 35.50 478.75 479.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 478.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 598.50 478.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 602.50 478.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 686.50 478.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 690.50 478.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 35.50 448.75 479.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 448.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 598.50 448.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 602.50 448.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 686.50 448.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 690.50 448.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 35.50 418.75 479.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 418.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 598.50 418.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 602.50 418.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 686.50 418.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 690.50 418.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 35.50 388.75 479.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 388.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 598.50 388.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 602.50 388.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 686.50 388.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 690.50 388.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 35.50 358.75 479.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 358.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 598.50 358.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 602.50 358.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 686.50 358.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 690.50 358.75 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 523.75 m 598.5 523.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 602.5 523.75 m 686.5 523.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 690.5 523.75 m 755.5 523.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 433.75 m 598.5 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 419.75 m 598.5 419.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 417.75 m 598.5 417.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 602.5 433.75 m 686.5 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 602.5 419.75 m 686.5 419.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 602.5 417.75 m 686.5 417.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 690.5 433.75 m 755.5 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 690.5 419.75 m 755.5 419.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 690.5 417.75 m 755.5 417.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 358.75 m 598.5 358.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 344.75 m 598.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 342.75 m 598.5 342.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 602.5 358.75 m 686.5 358.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 602.5 344.75 m 686.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 602.5 342.75 m 686.5 342.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 690.5 358.75 m 755.5 358.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 690.5 344.75 m 755.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 690.5 342.75 m 755.5 342.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 546.00 528.43 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 634.00 528.43 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 712.50 528.43 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 38.00 513.43 Td (Gr) Tj ET Q q 0 0 0 rg BT 50.13 513.43 Td (oss r) Tj ET Q q 0 0 0 rg BT 69.67 513.43 Td (eal estate assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.00 513.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 38.00 498.42 Td (Balance, beginning of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.00 498.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 562.15 498.42 Td (290,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 605.00 498.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 655.15 498.42 Td (73,883) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 693.00 498.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 724.15 498.42 Td (21,370) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 44.00 483.42 Td (Additions during the period:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 595.00 483.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 468.42 Td (Acquisitions) Tj 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94.50 587.75 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 587.75 457.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 523.75 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 523.75 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 523.75 457.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 468.75 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 468.75 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 468.75 457.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 404.75 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 404.75 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 404.75 457.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 349.75 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 349.75 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 349.75 457.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 285.75 50.00 -50.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 285.75 15.00 -50.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 285.75 457.00 -50.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 212.75 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 212.75 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 212.75 457.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 148.75 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 148.75 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 148.75 457.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 75.75 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 75.75 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 75.75 457.00 -32.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 44.5 715.75 m 94.5 715.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 109.5 715.75 m 566.5 715.75 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 54.70 729.20 Td (Exhibit) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 62.35 720.20 Td (No.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 315.25 730.15 Td (Description) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.35 707.01 Td (3.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 707.01 Td (Articles of ) Tj ET Q q 0 0 0 rg BT 151.99 707.01 Td (Amendment and Restatement of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 349.52 707.01 Td (T) Tj ET Q q 0 0 0 rg BT 354.71 707.01 Td (rust, Inc. \(formerly known as Hines Global REIT) Tj ET Q q 0 0 0 rg BT 531.75 707.01 Td ( II, Inc.\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 698.01 Td (\(filed as Exhibit 3.1 to Pre-Ef) Tj ET Q q 0 0 0 rg BT 218.31 698.01 Td (fective ) Tj ET Q q 0 0 0 rg BT 244.55 698.01 Td (Amendment No. 5 to the Registrant) Tj ET Q q 0 0 0 rg BT 375.53 698.01 Td (s Registration Statement on Form S-1) Tj ET Q q 0 0 0 rg BT 510.94 698.01 Td (1, File No. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 689.01 Td (333-191) Tj ET Q q 0 0 0 rg BT 141.66 689.01 Td (106 \(the IPO Registration Statement\) on ) Tj ET Q q 0 0 0 rg BT 296.63 689.01 Td (August 15, 2014 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.35 675.01 Td (3.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 675.01 Td (Articles Supplementary of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 288.29 675.01 Td (T) Tj ET Q q 0 0 0 rg BT 293.47 675.01 Td (rust, Inc. \(formerly known as Hines Global REIT) Tj ET Q q 0 0 0 rg BT 470.52 675.01 Td ( II, Inc.\) \(filed as Exhibit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 666.01 Td (3.1 to Post-Ef) Tj ET Q q 0 0 0 rg BT 161.59 666.01 Td (fective ) Tj ET Q q 0 0 0 rg BT 187.82 666.01 Td (Amendment No. 1 to the IPO Registration Statement on December 12, 2014 and incorporated by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 657.01 Td (reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.35 643.01 Td (3.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 643.01 Td (Articles Supplementary of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 288.29 643.01 Td (T) Tj ET Q q 0 0 0 rg BT 293.47 643.01 Td (rust, Inc. \(formerly known as Hines Global REIT) Tj ET Q q 0 0 0 rg BT 470.52 643.01 Td ( II, Inc.\) \(filed as Exhibit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 634.01 Td (3.1 to Post-Ef) Tj ET Q q 0 0 0 rg BT 161.59 634.01 Td (fective ) Tj ET Q q 0 0 0 rg BT 187.82 634.01 Td (Amendment No. 6 to the IPO Registration Statement on ) Tj ET Q q 0 0 0 rg BT 391.30 634.01 Td (August 12, 2015 and incorporated by reference ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 625.01 Td (herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.35 611.01 Td (3.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 611.01 Td (Articles Supplementary of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 288.29 611.01 Td (T) Tj ET Q q 0 0 0 rg BT 293.47 611.01 Td (rust, Inc. \(formerly known as Hines Global REIT) Tj ET Q q 0 0 0 rg BT 470.52 611.01 Td ( II, Inc.\) \(filed as Exhibit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 602.01 Td (3.1 to Post-Ef) Tj ET Q q 0 0 0 rg BT 161.59 602.01 Td (fective ) Tj ET Q q 0 0 0 rg BT 187.82 602.01 Td (Amendment No. 12 to the Registration Statement on ) Tj ET Q q 0 0 0 rg BT 379.05 602.01 Td (April 28, 2017 and incorporated by reference ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 593.01 Td (herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.35 579.01 Td (3.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 579.01 Td (Articles of ) Tj ET Q q 0 0 0 rg BT 151.99 579.01 Td (Amendment to ) Tj ET Q q 0 0 0 rg BT 207.48 579.01 Td (Articles of ) Tj ET Q q 0 0 0 rg BT 247.47 579.01 Td (Amendment and Restatement of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 445.01 579.01 Td (T) Tj ET Q q 0 0 0 rg BT 450.19 579.01 Td (rust, Inc. \(formerly known as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 570.01 Td (Hines Global REIT) Tj ET Q q 0 0 0 rg BT 181.82 570.01 Td ( II, Inc.\) \(filed as Exhibit 3.1 to the Registrant) Tj ET Q q 0 0 0 rg BT 349.28 570.01 Td (s Current Report on Form 8-K on October 16, 2017 and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 561.01 Td (incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.35 547.01 Td (3.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 547.01 Td (Articles of ) Tj ET Q q 0 0 0 rg BT 151.99 547.01 Td (Amendment to ) Tj ET Q q 0 0 0 rg BT 207.48 547.01 Td (Articles of ) Tj ET Q q 0 0 0 rg BT 247.47 547.01 Td (Amendment and Restatement of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 445.01 547.01 Td (T) Tj ET Q q 0 0 0 rg BT 450.19 547.01 Td (rust, Inc. \(formerly known as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 538.01 Td (Hines Global REIT) Tj ET Q q 0 0 0 rg BT 181.82 538.01 Td ( II, Inc.\) \(filed as Exhibit 3.5 to Pre-Ef) Tj ET Q q 0 0 0 rg BT 319.87 538.01 Td (fective ) Tj ET Q q 0 0 0 rg BT 346.11 538.01 Td (Amendment No. 1 to the Registration Statement on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 529.01 Td (December 1, 2017 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.35 515.01 Td (3.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 515.01 Td (Articles Supplementary of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 288.29 515.01 Td (T) Tj ET Q q 0 0 0 rg BT 293.47 515.01 Td (rust, Inc. \(formerly known as Hines Global REIT) Tj ET Q q 0 0 0 rg BT 470.52 515.01 Td ( II, Inc.\) \(filed as Exhibit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 506.01 Td (3.6 to Pre-Ef) Tj ET Q q 0 0 0 rg BT 158.08 506.01 Td (fective ) Tj ET Q q 0 0 0 rg BT 184.31 506.01 Td (Amendment No. 1 to the Registration Statement on December 1, 2017 and incorporated by reference ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 497.01 Td (herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.35 483.01 Td (3.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 483.01 Td (Articles of ) Tj ET Q q 0 0 0 rg BT 151.99 483.01 Td (Amendment to ) Tj ET Q q 0 0 0 rg BT 207.48 483.01 Td (Articles of ) Tj ET Q q 0 0 0 rg BT 247.47 483.01 Td (Amendment and Restatement of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 445.01 483.01 Td (T) Tj ET Q q 0 0 0 rg BT 450.19 483.01 Td (rust, Inc. \(filed as Exhibit 3.7 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 474.01 Td (to Pre-Ef) Tj ET Q q 0 0 0 rg BT 144.58 474.01 Td (fective ) Tj ET Q q 0 0 0 rg BT 170.81 474.01 Td (Amendment No. 1 to the Registration Statement on December 1, 2017 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.35 460.01 Td (3.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 460.01 Td (Amended and Restated Bylaws of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 315.79 460.01 Td (T) Tj ET Q q 0 0 0 rg BT 320.97 460.01 Td (rust, Inc. \(formerly known as Hines Global REIT) Tj ET Q q 0 0 0 rg BT 498.02 460.01 Td ( II, Inc.\) \(filed as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 451.01 Td (Exhibit 3.2 to Pre-Ef) Tj ET Q q 0 0 0 rg BT 186.83 451.01 Td (fective ) Tj ET Q q 0 0 0 rg BT 213.06 451.01 Td (Amendment No. 5 to the IPO Registration Statement on ) Tj ET Q q 0 0 0 rg BT 416.54 451.01 Td (August 15, 2014 and incorporated by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 442.01 Td (reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.10 428.01 Td (3.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 428.01 Td (Amendment No. 1 to ) Tj ET Q q 0 0 0 rg BT 189.74 428.01 Td (Amended and Restated Bylaws of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 393.53 428.01 Td (T) Tj ET Q q 0 0 0 rg BT 398.71 428.01 Td (rust, Inc. \(formerly known as Hines Global ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 419.01 Td (REIT) Tj ET Q q 0 0 0 rg BT 131.83 419.01 Td ( II, Inc.\), dated September 23, 2015 \(filed as Exhibit 3.5 to Post-Ef) Tj ET Q q 0 0 0 rg BT 371.87 419.01 Td (fective ) Tj ET Q q 0 0 0 rg BT 398.10 419.01 Td (Amendment No. 7 to the IPO Registration ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 410.01 Td (Statement on November 17, 2015 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.10 396.01 Td (3.1) Tj ET Q q 0 0 0 rg BT 72.35 396.01 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 396.01 Td (Amendment No. 2 to ) Tj ET Q q 0 0 0 rg BT 189.74 396.01 Td (Amended and Restated Bylaws of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 393.53 396.01 Td (T) Tj ET Q q 0 0 0 rg BT 398.71 396.01 Td (rust, Inc. \(formerly known as Hines Global ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 387.01 Td (REIT) Tj ET Q q 0 0 0 rg BT 131.83 387.01 Td ( II, Inc.\) \(filed as Exhibit 3.1 to the Registrant) Tj ET Q q 0 0 0 rg BT 299.29 387.01 Td (s Current Report on Form 8-K on September 14, 2017 and incorporated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 378.01 Td (by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.35 364.01 Td (4.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 364.01 Td (Form of Subscription ) Tj ET Q q 0 0 0 rg BT 190.75 364.01 Td (Agreement \(filed as ) Tj ET Q q 0 0 0 rg BT 263.98 364.01 Td (Appendix ) Tj ET Q q 0 0 0 rg BT 301.22 364.01 Td (A-1 and ) Tj ET Q q 0 0 0 rg BT 332.22 364.01 Td (A-2 to the Prospectus Supplement filed on February 12, 2018 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 355.01 Td (and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.35 341.01 Td (4.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 341.01 Td (Sixth ) Tj ET Q q 0 0 0 rg BT 132.76 341.01 Td (Amended and Restated Distribution Reinvestment Plan, ef) Tj ET Q q 0 0 0 rg BT 343.31 341.01 Td (fective as of December 4, 2017 \(filed as ) Tj ET Q q 0 0 0 rg BT 489.00 341.01 Td (Appendix B to the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 332.01 Td (Prospectus contained in Pre-Ef) Tj ET Q q 0 0 0 rg BT 223.06 332.01 Td (fective ) Tj ET Q q 0 0 0 rg BT 249.29 332.01 Td (Amendment No. 1 to the Registration Statement filed on December 1, 2017 and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 323.01 Td (incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 308.32 Td (10.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 309.01 Td (Amended and Restated Escrow ) Tj ET Q q 0 0 0 rg BT 226.47 309.01 Td (Agreement, dated as of December 12, 2014, by and among Hines Securities Inc., Hines ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 300.01 Td (Global REIT) Tj ET Q q 0 0 0 rg BT 158.58 300.01 Td ( II, Inc. and UMB Bank, N.A. \(filed as Exhibit 10.3 to Post-Ef) Tj ET Q q 0 0 0 rg BT 382.88 300.01 Td (fective ) Tj ET Q q 0 0 0 rg BT 409.12 300.01 Td (Amendment No. 1 to the IPO Registration ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 291.01 Td (Statement on December 12, 2014 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 276.32 Td (10.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 277.01 Td (Form of Indemnification ) Tj ET Q q 0 0 0 rg BT 202.73 277.01 Td (Agreement entered into between Hines Global Income ) Tj ET Q q 0 0 0 rg BT 401.25 277.01 Td (T) Tj ET Q q 0 0 0 rg BT 406.43 277.01 Td (rust, Inc. \(formerly known as Hines Global ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 268.01 Td (REIT) Tj ET Q q 0 0 0 rg BT 131.83 268.01 Td ( II, Inc.\) and each of the following persons as of ) Tj ET Q q 0 0 0 rg BT 306.53 268.01 Td (August 15, 2014: Jef) Tj ET Q q 0 0 0 rg BT 381.36 268.01 Td (frey C. Hines, Charles M. Baughn, Humberto ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 259.01 Td (Cabaas, Dougal ) Tj ET Q q 0 0 0 rg BT 175.24 259.01 Td (A. Cameron, John O. Niemann, Jr) Tj ET Q q 0 0 0 rg BT 297.47 259.01 Td (., Sherri ) Tj ET Q q 0 0 0 rg BT 328.30 259.01 Td (W) Tj ET Q q 0 0 0 rg BT 335.97 259.01 Td (. Schugart, R) Tj ET Q q 0 0 0 rg BT 382.61 259.01 Td (yan ) Tj ET Q q 0 0 0 rg BT 397.69 259.01 Td (T) Tj ET Q q 0 0 0 rg BT 402.52 259.01 Td (. Sims, David L. Steinbach, Kevin L. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 250.01 Td (McMeans and J. Shea Mor) Tj ET Q q 0 0 0 rg BT 208.57 250.01 Td (genroth \(filed as Exhibit 10.4 to the IPO Registration Statement on September 1) Tj ET Q q 0 0 0 rg BT 496.43 250.01 Td (1, 2013 and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 241.01 Td (incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 226.32 Td (10.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 227.01 Td (W) Tj ET Q q 0 0 0 rg BT 119.77 227.01 Td (aiver to Hines Global REIT) Tj ET Q q 0 0 0 rg BT 219.09 227.01 Td ( II ) Tj ET Q q 0 0 0 rg BT 229.08 227.01 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 264.34 227.01 Td (Agreement \(filed as Exhibit 10.1 to the Registrant) Tj ET Q q 0 0 0 rg BT 446.79 227.01 Td (s Current Report on Form 8-K ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 218.01 Td (on September 24, 2014 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 203.32 Td (10.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 185.42 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 204.01 Td (Purchase and Sale ) Tj ET Q q 0 0 0 rg BT 179.23 204.01 Td (Agreement, dated as of November 12, 2014, by and between Hines Interests Limited Partnership and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 195.01 Td (Canoga-Rincon Loker Industrial, LLC \(filed as Exhibit 10.1 to the Registrant) Tj ET Q q 0 0 0 rg BT 392.94 195.01 Td (s Current Report on Form 8-K on November ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 186.01 Td (20, 2014 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 171.32 Td (10.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 153.42 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 172.01 Td (Assignment of Contract of Purchase and Sale, dated as of November 14, 2014, by and between Hines Interests Limited ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 163.01 Td (Partnership and HGREIT) Tj ET Q q 0 0 0 rg BT 203.32 163.01 Td ( II 2819 Loker LP) Tj ET Q q 0 0 0 rg BT 267.97 163.01 Td ( \(filed as Exhibit 10.2 to the Registrant) Tj ET Q q 0 0 0 rg BT 410.45 163.01 Td (s Current Report on Form 8-K filed ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 154.01 Td (November 20, 2014 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 139.32 Td (10.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 140.01 Td (Particulars and Conditions of Sale of Bishop) Tj ET Q q 0 0 0 rg BT 274.98 140.01 Td (s Square, Bishop) Tj ET Q q 0 0 0 rg BT 338.23 140.01 Td (s Street/Kevin Street Lower) Tj ET Q q 0 0 0 rg BT 438.10 140.01 Td (, Dublin 2, dated as of January 30, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 131.01 Td (2015, by and between Bishop Ireland GREIT) Tj ET Q q 0 0 0 rg BT 275.05 131.01 Td ( II Limited and ) Tj ET Q q 0 0 0 rg BT 331.37 131.01 Td (V) Tj ET Q q 0 0 0 rg BT 337.33 131.01 Td (iolet ) Tj ET Q q 0 0 0 rg BT 355.24 131.01 Td (Y) Tj ET Q q 0 0 0 rg BT 360.84 131.01 Td (arrow Real Estate \(Dublin\) Limited \(filed as Exhibit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 122.01 Td (10.1 to the Registrant) Tj ET Q q 0 0 0 rg BT 191.99 122.01 Td (s Current Report on Form 8-K on February 5, 2015 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 107.32 Td (10.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 108.01 Td (Facility ) Tj ET Q q 0 0 0 rg BT 141.25 108.01 Td (Agreement, dated as of March 3, 2015 by and between Deutsche Girozentrale as ) Tj ET Q q 0 0 0 rg BT 432.89 108.01 Td (Agent, Original Hedge ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 99.01 Td (Counterparty) Tj ET Q q 0 0 0 rg BT 158.90 99.01 Td (, ) Tj ET Q q 0 0 0 rg BT 162.91 99.01 Td (Arranger) Tj ET Q q 0 0 0 rg BT 195.03 99.01 Td (, Security ) Tj ET Q q 0 0 0 rg BT 231.61 99.01 Td (T) Tj ET Q q 0 0 0 rg BT 236.79 99.01 Td (rustee and Lender and Hines GREIT) Tj ET Q q 0 0 0 rg BT 368.33 99.01 Td ( II Ireland Fund PLC, acting for and on behalf of its ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 90.01 Td (sub-fund Hines GREIT) Tj ET Q q 0 0 0 rg BT 195.83 90.01 Td ( II Bishop Fund, as Borrower \(filed as Exhibit 10.2 to the Registrant) Tj ET Q q 0 0 0 rg BT 443.79 90.01 Td (s Current Report on Form 8-K ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 81.01 Td (on March 5, 2015 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 66.32 Td (10.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 67.01 Td (First ) Tj ET Q q 0 0 0 rg BT 130.26 67.01 Td (Amendment to Real Estate Purchase ) Tj ET Q q 0 0 0 rg BT 263.48 67.01 Td (Agreement, dated as of ) Tj ET Q q 0 0 0 rg BT 348.69 67.01 Td (August 7, 2015, by and between Hines Global REIT) Tj ET Q q 0 0 0 rg BT 537.00 67.01 Td ( II 891 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 58.01 Td (Coronado LLC and L) Tj ET Q q 0 0 0 rg BT 188.91 58.01 Td (V) Tj ET Q q 0 0 0 rg BT 195.25 58.01 Td ( Eastern, LLC \(filed as Exhibit 10.2 to the Registrant) Tj ET Q q 0 0 0 rg BT 388.46 58.01 Td (s Current Report on Form 8-K filed on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 49.01 Td (December 10, 2015 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET endstream endobj 253 0 obj <> endobj 254 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 15.60 Td (124) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 44.5 732.5 m 94.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 109.5 732.5 m 566.5 732.5 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 54.70 745.95 Td (Exhibit) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 62.35 736.95 Td (No.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 315.25 746.90 Td (Description) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 700.50 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 700.50 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 700.50 457.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 636.50 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 636.50 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 636.50 457.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 572.50 50.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 572.50 15.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 572.50 457.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 499.50 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 499.50 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 499.50 457.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 435.50 50.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 435.50 15.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 435.50 457.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 353.50 50.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 353.50 15.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 353.50 457.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 280.50 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 280.50 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 280.50 457.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 207.50 50.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 207.50 15.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 207.50 457.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 134.50 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 134.50 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 134.50 457.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 79.50 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 79.50 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 79.50 457.00 -32.00 re f /GS0 gs BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 723.07 Td (10.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 723.76 Td (Second ) Tj ET Q q 0 0 0 rg BT 140.25 723.76 Td (Amendment to Real Estate Purchase ) Tj ET Q q 0 0 0 rg BT 273.46 723.76 Td (Agreement, dated as of ) Tj ET Q q 0 0 0 rg BT 358.68 723.76 Td (August 21, 2015, by and between Hines Global REIT) Tj ET Q q 0 0 0 rg BT 551.49 723.76 Td ( II ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 714.76 Td (891 Coronado LLC and L) Tj ET Q q 0 0 0 rg BT 204.66 714.76 Td (V) Tj ET Q q 0 0 0 rg BT 211.00 714.76 Td ( Eastern, LLC \(filed as Exhibit 10.3 to the Registrant) Tj ET Q q 0 0 0 rg BT 404.21 714.76 Td (s Current Report on Form 8-K filed on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 705.76 Td (December 10, 2015 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.75 691.07 Td (10.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 691.76 Td (Third ) Tj ET Q q 0 0 0 rg BT 133.75 691.76 Td (Amendment to and Reinstatement of Real Estate Purchase ) Tj ET Q q 0 0 0 rg BT 345.69 691.76 Td (Agreement, dated as of December 4, 2015, by and between ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 682.76 Td (Hines Global REIT) Tj ET Q q 0 0 0 rg BT 181.82 682.76 Td ( II 891 Coronado LLC and L) Tj ET Q q 0 0 0 rg BT 284.98 682.76 Td (V) Tj ET Q q 0 0 0 rg BT 291.31 682.76 Td ( Eastern, LLC \(filed as Exhibit 10.4 to the Registrant) Tj ET Q q 0 0 0 rg BT 484.52 682.76 Td (s Current Report on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 673.76 Td (Form 8-K filed on December 10, 2015 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 659.76 Td (10.1) Tj ET Q q 0 0 0 rg BT 74.58 659.76 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 659.76 Td (Real Estate Purchase ) Tj ET Q q 0 0 0 rg BT 189.23 659.76 Td (Agreement, dated as of July 8, 2015, by and between Hines Global REIT) Tj ET Q q 0 0 0 rg BT 452.25 659.76 Td ( II 891 Coronado LLC and L) Tj ET Q q 0 0 0 rg BT 555.40 659.76 Td (V) Tj ET Q q 0 0 0 rg BT 561.74 659.76 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 650.76 Td (Eastern, LLC \(filed as Exhibit 10.1 to the Registrant) Tj ET Q q 0 0 0 rg BT 302.96 650.76 Td (s Current Report on Form 8-K on July 14, 2015 and incorporated by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 641.76 Td (reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 627.76 Td (10.12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 627.76 Td (Loan ) Tj ET Q q 0 0 0 rg BT 132.25 627.76 Td (Agreement, dated as of January 29, 2016 by and between ) Tj ET Q q 0 0 0 rg BT 340.52 627.76 Td (W) Tj ET Q q 0 0 0 rg BT 348.29 627.76 Td (ells Far) Tj ET Q q 0 0 0 rg BT 374.87 627.76 Td (go Bank, National ) Tj ET Q q 0 0 0 rg BT 442.36 627.76 Td (Association, as Lender and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 618.76 Td (Hines Global REIT) Tj ET Q q 0 0 0 rg BT 181.82 618.76 Td ( II 891 Coronado LLC, as Borrower \(filed as Exhibit 10.5 to the Registrant) Tj ET Q q 0 0 0 rg BT 454.02 618.76 Td (s Current Report on Form 8-) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 609.76 Td (K filed on February 4, 2016 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 595.76 Td (10.13) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 595.76 Td (Promissory Note, dated as of January 29, 2016 by and between Hines Global REIT) Tj ET Q q 0 0 0 rg BT 411.03 595.76 Td ( II 891 Coronado LLC, as borrower) Tj ET Q q 0 0 0 rg BT 538.88 595.76 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 586.76 Td (W) Tj ET Q q 0 0 0 rg BT 119.77 586.76 Td (ells Far) Tj ET Q q 0 0 0 rg BT 146.36 586.76 Td (go Bank, National ) Tj ET Q q 0 0 0 rg BT 213.85 586.76 Td (Association, as lender \(filed as Exhibit 10.6 to the Registrant) Tj ET Q q 0 0 0 rg BT 435.55 586.76 Td (s Current Report on Form 8-K ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 577.76 Td (filed on February 4, 2016 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 563.76 Td (10.14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 563.76 Td (Sale, Purchase and Escrow ) Tj ET Q q 0 0 0 rg BT 210.72 563.76 Td (Agreement, dated as of May 13, 2016, by and between NOP) Tj ET Q q 0 0 0 rg BT 427.58 563.76 Td ( Cottonwood Holdings, LLC, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 554.76 Td (HGREIT) Tj ET Q q 0 0 0 rg BT 144.83 554.76 Td ( II Cottonwood Center LLC, Commonwealth Land ) Tj ET Q q 0 0 0 rg BT 330.14 554.76 Td (T) Tj ET Q q 0 0 0 rg BT 335.32 554.76 Td (itle Insurance Company) Tj ET Q q 0 0 0 rg BT 420.71 554.76 Td (, Hines Global REIT) Tj ET Q q 0 0 0 rg BT 495.04 554.76 Td ( II Properties LP) Tj ET Q q 0 0 0 rg BT 554.44 554.76 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 545.76 Td (and National Of) Tj ET Q q 0 0 0 rg BT 169.82 545.76 Td (fice Partners LLC \(filed as Exhibit 10.1 to the Registrant) Tj ET Q q 0 0 0 rg BT 376.77 545.76 Td (s Current Report on Form 8-K on May 19, 2016 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 536.76 Td (and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 522.76 Td (10.15) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 522.76 Td (Agreement of Purchase and Sale, dated as of June 24, 2016, by and between R) Tj ET Q q 0 0 0 rg BT 394.13 522.76 Td (T) Tj ET Q q 0 0 0 rg BT 399.46 522.76 Td ( GOODYEAR, LLC and HGREIT) Tj ET Q q 0 0 0 rg BT 524.04 522.76 Td ( II ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 513.76 Td (Goodyear Crossing LLC \(filed as Exhibit 10.6 to the registrant) Tj ET Q q 0 0 0 rg BT 340.46 513.76 Td (s Quarterly Report on Form 10-Q on ) Tj ET Q q 0 0 0 rg BT 474.19 513.76 Td (August 12, 2016 and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 504.76 Td (incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 490.76 Td (10.16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 490.76 Td (Loan ) Tj ET Q q 0 0 0 rg BT 132.25 490.76 Td (Agreement, dated as of July 5, 2016 by and between Principal Life Insurance Company) Tj ET Q q 0 0 0 rg BT 446.82 490.76 Td (, as Lender and HGREIT) Tj ET Q q 0 0 0 rg BT 536.88 490.76 Td ( II ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 481.76 Td (Cottonwood Center LLC, as Borrower \(filed as Exhibit 10.26 to Post-Ef) Tj ET Q q 0 0 0 rg BT 371.80 481.76 Td (fective ) Tj ET Q q 0 0 0 rg BT 398.04 481.76 Td (Amendment No. 10 to the IPO Registration ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 472.76 Td (Statement on October 5, 2016 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 458.76 Td (10.17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 458.76 Td (T) Tj ET Q q 0 0 0 rg BT 116.87 458.76 Td (erm Loan ) Tj ET Q q 0 0 0 rg BT 153.36 458.76 Td (Agreement, dated as of ) Tj ET Q q 0 0 0 rg BT 238.58 458.76 Td (August 18, 2016 by and between SunT) Tj ET Q q 0 0 0 rg BT 378.49 458.76 Td (rust Bank, as Lender and HGREIT) Tj ET Q q 0 0 0 rg BT 503.30 458.76 Td ( II Goodyear ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 449.76 Td (Crossing LLC, as Borrower \(filed as Exhibit 10.27 to Post-Ef) Tj ET Q q 0 0 0 rg BT 333.06 449.76 Td (fective ) Tj ET Q q 0 0 0 rg BT 359.30 449.76 Td (Amendment No. 10 to the IPO Registration Statement ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 440.76 Td (on October 5, 2016 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 426.76 Td (10.18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 426.76 Td (Contract of Purchase and Sale, dated as of September 16, 2016, by and between CLP-SPF Rookwood Commons, LLC and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 417.76 Td (CLP-SPF Rookwood Pavilion, LLC and HGREIT) Tj ET Q q 0 0 0 rg BT 292.35 417.76 Td ( II Edmonson Road LLC and HGREIT) Tj ET Q q 0 0 0 rg BT 432.16 417.76 Td ( II Madison Road LLC \(filed as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 408.76 Td (Exhibit 10.28 to Post-Ef) Tj ET Q q 0 0 0 rg BT 199.34 408.76 Td (fective ) Tj ET Q q 0 0 0 rg BT 225.57 408.76 Td (Amendment No. 10 to the IPO Registration Statement on October 5, 2016 and incorporated ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 399.76 Td (by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 385.76 Td (10.19) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 385.76 Td (Form of Property Management and Leasing ) Tj ET Q q 0 0 0 rg BT 271.46 385.76 Td (Agreement between Subsidiary of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 475.49 385.76 Td (T) Tj ET Q q 0 0 0 rg BT 480.67 385.76 Td (rust, Inc. \(formerly ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 376.76 Td (known as Hines Global REIT) Tj ET Q q 0 0 0 rg BT 218.32 376.76 Td ( II, Inc.\) and Hines Interests Limited Partnership \(Domestic Of) Tj ET Q q 0 0 0 rg BT 444.35 376.76 Td (fice Properties\) \(filed as Exhibit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 367.76 Td (10.29 to Post-Ef) Tj ET Q q 0 0 0 rg BT 170.59 367.76 Td (fective ) Tj ET Q q 0 0 0 rg BT 196.82 367.76 Td (Amendment No. 10 to the Registration Statement on October 5, 2016 and incorporated by reference ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 358.76 Td (herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 344.76 Td (10.20) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 344.76 Td (Form of Property Management and Leasing ) Tj ET Q q 0 0 0 rg BT 271.46 344.76 Td (Agreement between Subsidiary of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 475.49 344.76 Td (T) Tj ET Q q 0 0 0 rg BT 480.67 344.76 Td (rust, Inc. \(formerly ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 335.76 Td (known as Hines Global REIT) Tj ET Q q 0 0 0 rg BT 218.32 335.76 Td ( II, Inc.\) and Hines Interests Limited Partnership \(Domestic Multi-family and Industrial ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 326.76 Td (Properties\) \(filed as Exhibit 10.30 to Post-Ef) Tj ET Q q 0 0 0 rg BT 272.56 326.76 Td (fective ) Tj ET Q q 0 0 0 rg BT 298.80 326.76 Td (Amendment No. 10 to the Registration Statement on October 5, 2016 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 317.76 Td (and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 303.76 Td (10.21) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 303.76 Td (Open End Mortgage and Security ) Tj ET Q q 0 0 0 rg BT 234.72 303.76 Td (Agreement dated as of ) Tj ET Q q 0 0 0 rg BT 317.69 303.76 Td (April 1, 2015 by and between Nationwide Life Insurance Company) Tj ET Q q 0 0 0 rg BT 560.04 303.76 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 294.76 Td (as Lender) Tj ET Q q 0 0 0 rg BT 146.87 294.76 Td (, and CLP-SPF Rookwood Commons, LLC, as Borrower \(filed as Exhibit 10.2 to the Registrant) Tj ET Q q 0 0 0 rg BT 494.85 294.76 Td (s Current Report ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 285.76 Td (on Form 8-K on January 6, 2017 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 271.76 Td (10.22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 271.76 Td (Open End Mortgage and Security ) Tj ET Q q 0 0 0 rg BT 234.72 271.76 Td (Agreement dated as of July 1, 2013 by and between Nationwide Life Insurance Company) Tj ET Q q 0 0 0 rg BT 556.54 271.76 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 262.76 Td (as Lender) Tj ET Q q 0 0 0 rg BT 146.87 262.76 Td (, and CLP-SPF Rookwood Pavilion, LLC, as Borrower \(filed as Exhibit 10.3 to the Registrant) Tj ET Q q 0 0 0 rg BT 487.85 262.76 Td (s Current Report on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 253.76 Td (Form 8-K on January 6, 2017 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 239.76 Td (10.23) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 239.76 Td (Assumption and Modification ) Tj ET Q q 0 0 0 rg BT 221.74 239.76 Td (Agreement dated as of January 6, 2017, by and between Nationwide Life Insurance Company) Tj ET Q q 0 0 0 rg BT 558.80 239.76 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 230.76 Td (as Lender) Tj ET Q q 0 0 0 rg BT 146.87 230.76 Td (, CLP-SPF Rookwood Pavilion LLC, as Original Borrower) Tj ET Q q 0 0 0 rg BT 359.76 230.76 Td (, and HGREIT) Tj ET Q q 0 0 0 rg BT 412.34 230.76 Td ( II Madison Road LLC, as Borrower ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 221.76 Td (\(filed as Exhibit 10.4 to the Registrant) Tj ET Q q 0 0 0 rg BT 252.23 221.76 Td (s Current Report on Form 8-K on January 6, 2017 and incorporated by reference ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 212.76 Td (herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 198.76 Td (10.24) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 198.76 Td (Assumption and Modification ) Tj ET Q q 0 0 0 rg BT 221.74 198.76 Td (Agreement dated as of January 6, 2017, by and between Nationwide Life Insurance Company) Tj ET Q q 0 0 0 rg BT 558.80 198.76 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 189.76 Td (as Lender) Tj ET Q q 0 0 0 rg BT 146.87 189.76 Td (, CLP-SPF Rookwood Commons LLC, as Original Borrower) Tj ET Q q 0 0 0 rg BT 366.76 189.76 Td (, and HGREIT) Tj ET Q q 0 0 0 rg BT 419.34 189.76 Td ( II Edmondson Road LLC, as Borrower ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 180.76 Td (\(filed as Exhibit 10.5 to the Registrant) Tj ET Q q 0 0 0 rg BT 252.23 180.76 Td (s Current Report on Form 8-K on January 6, 2017 and incorporated by reference ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 171.76 Td (herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 157.76 Td (10.25) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 157.76 Td (Uncommitted Loan ) Tj ET Q q 0 0 0 rg BT 183.99 157.76 Td (Agreement, dated as of October 2, 2017, by and between Hines Global REIT) Tj ET Q q 0 0 0 rg BT 460.99 157.76 Td ( II Properties, LP) Tj ET Q q 0 0 0 rg BT 521.98 157.76 Td (, as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 148.76 Td (borrower) Tj ET Q q 0 0 0 rg BT 144.63 148.76 Td (, and Hines Interests Limited Partnership, as lender \(filed as Exhibit 10.1 to the Registrant) Tj ET Q q 0 0 0 rg BT 471.30 148.76 Td (s Current Report on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 139.76 Td (Form 8-K on October 3, 2017 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 125.76 Td (10.26) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 125.76 Td (First ) Tj ET Q q 0 0 0 rg BT 130.26 125.76 Td (Amendment to Uncommitted Loan ) Tj ET Q q 0 0 0 rg BT 258.24 125.76 Td (Agreement, dated as of November 30, 2017, by and between Hines Global REIT) Tj ET Q q 0 0 0 rg BT 548.74 125.76 Td ( II ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 116.76 Td (Properties, LP) Tj ET Q q 0 0 0 rg BT 162.50 116.76 Td (, as borrower) Tj ET Q q 0 0 0 rg BT 209.37 116.76 Td (, and Hines Interests Limited Partnership, as lender \(filed as Exhibit 10.1 to the Registrant) Tj ET Q q 0 0 0 rg BT 536.05 116.76 Td (s ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 107.76 Td (Current Report on Form 8-K on December 6, 2017 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 93.76 Td (10.27) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 93.76 Td (Form of Restricted Share ) Tj ET Q q 0 0 0 rg BT 204.48 93.76 Td (A) Tj ET Q q 0 0 0 rg BT 210.16 93.76 Td (ward ) Tj ET Q q 0 0 0 rg BT 229.90 93.76 Td (Agreement \(filed as Exhibit 99\(a\)\(1\)\(G\) to the Registrant) Tj ET Q q 0 0 0 rg BT 438.58 93.76 Td (s tender of) Tj ET Q q 0 0 0 rg BT 476.41 93.76 Td (fer statement on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 84.76 Td (Schedule ) Tj ET Q q 0 0 0 rg BT 147.08 84.76 Td (T) Tj ET Q q 0 0 0 rg BT 152.41 84.76 Td (O on October 3, 2017 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 70.76 Td (10.28) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 70.76 Td (Amended and Restated ) Tj ET Q q 0 0 0 rg BT 197.23 70.76 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 232.48 70.76 Td (Agreement, dated as of December 6, 2017, by and among Hines Global REIT) Tj ET Q q 0 0 0 rg BT 511.99 70.76 Td ( II ) Tj ET Q q 0 0 0 rg BT 521.98 70.76 Td (Advisors ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 61.76 Td (LP) Tj ET Q q 0 0 0 rg BT 121.51 61.76 Td (, Hines Global REIT) Tj ET Q q 0 0 0 rg BT 195.83 61.76 Td ( II Properties LP) Tj ET Q q 0 0 0 rg BT 254.57 61.76 Td (, and Hines Global Income ) Tj ET Q q 0 0 0 rg BT 353.38 61.76 Td (T) Tj ET Q q 0 0 0 rg BT 358.56 61.76 Td (rust, Inc. \(filed as Exhibit 10.2 to Post-Ef) Tj ET Q q 0 0 0 rg BT 506.88 61.76 Td (fective ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 52.76 Td (Amendment No. 1 to the Registrant) Tj ET Q q 0 0 0 rg BT 242.98 52.76 Td (s Registration Statement on December 6, 2017 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET endstream endobj 255 0 obj <> endobj 256 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 15.60 Td (125) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 44.5 731.5 m 94.5 731.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 109.5 731.5 m 566.5 731.5 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 54.70 744.95 Td (Exhibit) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 62.35 735.95 Td (No.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 315.25 745.90 Td (Description) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 699.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 699.50 15.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 699.50 457.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 671.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 671.50 15.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 671.50 457.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 643.50 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 643.50 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 643.50 457.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 588.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 588.50 15.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 588.50 457.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 533.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.50 533.50 15.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 109.50 533.50 457.00 -14.00 re f /GS0 gs BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 722.76 Td (10.29) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 722.76 Td (Fifth ) Tj ET Q q 0 0 0 rg BT 131.26 722.76 Td (Amended and Restated ) Tj ET Q q 0 0 0 rg BT 216.48 722.76 Td (Agreement of Limited Partnership of Hines Global REIT) Tj ET Q q 0 0 0 rg BT 422.02 722.76 Td ( II Properties LP) Tj ET Q q 0 0 0 rg BT 480.76 722.76 Td (, dated as of March 6, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 713.76 Td (2018 \(filed as Exhibit 10.1 to the Registrant) Tj ET Q q 0 0 0 rg BT 272.48 713.76 Td (s Current Report on Form 8-K on March 12, 2018 and incorporated by reference ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 704.76 Td (herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 690.76 Td (21.1*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 690.76 Td (List of Subsidiaries of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 273.06 690.76 Td (T) Tj ET Q q 0 0 0 rg BT 278.24 690.76 Td (rust, Inc.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 676.76 Td (23.1*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 676.76 Td (Consent of Deloitte and ) Tj ET Q q 0 0 0 rg BT 199.82 676.76 Td (T) Tj ET Q q 0 0 0 rg BT 204.69 676.76 Td (ouche LLP) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 662.76 Td (31.1*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 662.76 Td (Certification) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 648.76 Td (31.2*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 648.76 Td (Certification) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 634.76 Td (32.1*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 634.76 Td (Certification of Chief Executive Of) Tj ET Q q 0 0 0 rg BT 239.29 634.76 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 340.59 634.76 Td (ficer pursuant to 18U.S.C., Section 1350, as adopted ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 625.76 Td (pursuant to Section 906 of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 281.72 625.76 Td (Act of 2002. Pursuant to SEC Release 34-47551 this Exhibit is furnished to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 616.76 Td (the SEC herewith and shall not be deemed to be filed.) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.10 602.76 Td (99.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 602.76 Td (Hines Global Income ) Tj ET Q q 0 0 0 rg BT 191.07 602.76 Td (T) Tj ET Q q 0 0 0 rg BT 196.25 602.76 Td (rust, Inc. Share Redemption Program, ef) Tj ET Q q 0 0 0 rg BT 341.55 602.76 Td (fective as of December 4, 2017 \(filed as Exhibit 99.4 to Pre-) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 593.76 Td (Ef) Tj ET Q q 0 0 0 rg BT 120.33 593.76 Td (fective ) Tj ET Q q 0 0 0 rg BT 146.57 593.76 Td (Amendment No. 1 to the Registration Statement on December 1, 2017 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.85 579.76 Td (99.2*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 579.76 Td (Consent of ) Tj ET Q q 0 0 0 rg BT 153.00 579.76 Td (Altus Group U.S., Inc. ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 565.76 Td (101*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 565.76 Td (The following materials from Hines Global Income ) Tj ET Q q 0 0 0 rg BT 299.62 565.76 Td (T) Tj ET Q q 0 0 0 rg BT 304.88 565.76 Td (rust, Inc.) Tj ET Q q 0 0 0 rg BT 339.21 565.76 Td (s ) Tj ET Q q 0 0 0 rg BT 344.46 565.76 Td (Annual Report on Form 10-K for the year ended December) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 556.76 Td (31, 2017, filed on March 29, 2018, formatted in XBRL) Tj ET Q q 0 0 0 rg BT 310.05 556.76 Td ( \(eXtensible Business Reporting Language\): \(i\) Consolidated Balance) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 547.76 Td (Sheets, \(ii\) Consolidated Statements of Operations, \(iii\) Consolidated Statements of Equity \(Deficit\), \(iv\) Consolidated) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 538.76 Td (Statements of Cash Flows, and \(v\) Notes to the Consolidated Financial Statements.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 66.75 524.76 Td (*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 112.00 524.76 Td (Filed herewith) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 496.00 Td () Tj ET Q endstream endobj 257 0 obj <> endobj 258 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.30 742.25 Td (Exhibit 21.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 250.10 718.25 Td (LIST) Tj ET Q q 0 0 0 rg BT 272.71 718.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 288.73 718.25 Td ( SUBSIDIARIES) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 671.75 360.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 671.75 38.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 671.75 114.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 641.75 360.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 641.75 38.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 641.75 114.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 611.75 360.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 611.75 38.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 611.75 114.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 581.75 360.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 581.75 38.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 581.75 114.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 551.75 360.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 551.75 38.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 551.75 114.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 521.75 360.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 521.75 38.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 521.75 114.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 491.75 360.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 491.75 38.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 491.75 114.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 461.75 360.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 461.75 38.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 461.75 114.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 431.75 360.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 431.75 38.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 431.75 114.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 401.75 360.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 401.75 38.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 401.75 114.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 371.75 360.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 371.75 38.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.80 376.42 Td (Delaware) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 361.42 Td (HGR II International Investment Manager LLC) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.80 361.42 Td (Delaware) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 259 0 obj <> endobj 260 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.30 742.25 Td (Exhibit 23.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 131.85 710.85 Td (CONSENT) Tj ET Q q 0 0 0 rg BT 180.01 710.85 Td ( OF) Tj ET Q q 0 0 0 rg BT 196.03 710.85 Td ( INDEPENDENT) Tj ET Q q 0 0 0 rg BT 271.14 710.85 Td ( REGISTERED PUBLIC ) Tj ET Q q 0 0 0 rg BT 381.44 710.85 Td (ACCOUNTING FIRM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.00 686.40 Td (W) Tj ET Q q 0 0 0 rg BT 63.64 686.40 Td (e ) Tj ET Q q 0 0 0 rg BT 71.63 686.40 Td (consent ) Tj ET Q q 0 0 0 rg BT 105.72 686.40 Td (to ) Tj ET Q q 0 0 0 rg BT 117.05 686.40 Td (the ) Tj ET Q q 0 0 0 rg BT 132.81 686.40 Td (incorporation ) Tj ET Q q 0 0 0 rg BT 190.23 686.40 Td (by ) Tj ET Q q 0 0 0 rg BT 203.78 686.40 Td (reference ) Tj ET Q q 0 0 0 rg BT 244.51 686.40 Td (in ) Tj ET Q q 0 0 0 rg BT 255.84 686.40 Td (Registration ) Tj ET Q q 0 0 0 rg BT 308.27 686.40 Td (Statement ) Tj ET Q q 0 0 0 rg BT 351.81 686.40 Td (No. ) Tj ET Q q 0 0 0 rg BT 370.08 686.40 Td (333-221894 ) Tj ET Q q 0 0 0 rg BT 421.96 686.40 Td (on ) Tj ET Q q 0 0 0 rg BT 435.51 686.40 Td (Form ) Tj ET Q q 0 0 0 rg BT 460.73 686.40 Td (S-3 ) Tj ET Q q 0 0 0 rg BT 478.17 686.40 Td (of ) Tj ET Q q 0 0 0 rg BT 490.05 686.40 Td (our ) Tj ET Q q 0 0 0 rg BT 506.93 686.40 Td (report ) Tj ET Q q 0 0 0 rg BT 534.35 686.40 Td (dated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.00 674.40 Td (March29, ) Tj ET Q q 0 0 0 rg BT 99.01 674.40 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.01 674.40 Td (, ) Tj ET Q q 0 0 0 rg BT 124.42 674.40 Td (relating ) Tj ET Q q 0 0 0 rg BT 157.87 674.40 Td (to ) Tj ET Q q 0 0 0 rg BT 168.56 674.40 Td (the ) Tj ET Q q 0 0 0 rg BT 183.69 674.40 Td (consolidated ) Tj ET Q q 0 0 0 rg BT 237.14 674.40 Td (financial ) Tj ET Q q 0 0 0 rg BT 275.03 674.40 Td (statements ) Tj ET Q q 0 0 0 rg BT 320.15 674.40 Td (and ) Tj ET Q q 0 0 0 rg BT 337.50 674.40 Td (financial ) Tj ET Q q 0 0 0 rg BT 375.39 674.40 Td (statement ) Tj ET Q q 0 0 0 rg BT 416.62 674.40 Td (schedules ) Tj ET Q q 0 0 0 rg BT 458.41 674.40 Td (of ) Tj ET Q q 0 0 0 rg BT 469.65 674.40 Td (Hines ) Tj ET Q q 0 0 0 rg BT 495.89 674.40 Td (Global ) Tj ET Q q 0 0 0 rg BT 526.02 674.40 Td (Income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.00 662.40 Td (T) Tj ET Q q 0 0 0 rg BT 60.76 662.40 Td (rust, ) Tj ET Q q 0 0 0 rg BT 80.54 662.40 Td (Inc. ) Tj ET Q q 0 0 0 rg BT 98.10 662.40 Td (\(formerly ) Tj ET Q q 0 0 0 rg BT 138.70 662.40 Td (known ) Tj ET Q q 0 0 0 rg BT 168.21 662.40 Td (as ) Tj ET Q q 0 0 0 rg BT 178.83 662.40 Td (Hines ) Tj ET Q q 0 0 0 rg BT 204.45 662.40 Td (Global ) Tj ET Q q 0 0 0 rg BT 233.95 662.40 Td (REIT) Tj ET Q q 0 0 0 rg BT 255.99 662.40 Td ( ) Tj ET Q q 0 0 0 rg BT 258.28 662.40 Td (II, ) Tj ET Q q 0 0 0 rg BT 269.72 662.40 Td (Inc.\) ) Tj ET Q q 0 0 0 rg BT 290.61 662.40 Td (and ) Tj ET Q q 0 0 0 rg BT 307.34 662.40 Td (subsidiaries, ) Tj ET Q q 0 0 0 rg BT 359.34 662.40 Td (appearing ) Tj ET Q q 0 0 0 rg BT 401.05 662.40 Td (in ) Tj ET Q q 0 0 0 rg BT 411.12 662.40 Td (this ) Tj ET Q q 0 0 0 rg BT 427.35 662.40 Td (Annual ) Tj ET Q q 0 0 0 rg BT 459.08 662.40 Td (Report ) Tj ET Q q 0 0 0 rg BT 488.58 662.40 Td (on ) Tj ET Q q 0 0 0 rg BT 500.87 662.40 Td (Form ) Tj ET Q q 0 0 0 rg BT 524.82 662.40 Td (10-K ) Tj ET Q q 0 0 0 rg BT 547.66 662.40 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.00 650.40 Td (Hines ) Tj ET Q q 0 0 0 rg BT 80.83 650.40 Td (Global ) Tj ET Q q 0 0 0 rg BT 110.55 650.40 Td (Income ) Tj ET Q q 0 0 0 rg BT 142.85 650.40 Td (T) Tj ET Q q 0 0 0 rg BT 148.61 650.40 Td (rust, ) Tj ET Q q 0 0 0 rg BT 168.61 650.40 Td (Inc. ) Tj ET Q q 0 0 0 rg BT 186.38 650.40 Td (for ) Tj ET Q q 0 0 0 rg BT 200.54 650.40 Td (the ) Tj ET Q q 0 0 0 rg BT 215.25 650.40 Td (year ) Tj ET Q q 0 0 0 rg BT 234.96 650.40 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.34 650.40 Td (December31, ) Tj ET Q q 0 0 0 rg BT 319.92 650.40 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.92 650.40 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.00 626.40 Td (/s/ Deloitte & ) Tj ET Q q 0 0 0 rg BT 111.76 626.40 Td (T) Tj ET Q q 0 0 0 rg BT 117.17 626.40 Td (ouche LLP) Tj ET Q q 0 0 0 rg BT 160.95 626.40 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.00 602.40 Td (Houston, ) Tj ET Q q 0 0 0 rg BT 93.71 602.40 Td (T) Tj ET Q q 0 0 0 rg BT 99.12 602.40 Td (exas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.00 590.40 Td (March29, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.60 590.40 Td ( ) Tj ET Q endstream endobj 261 0 obj <> endobj 262 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.30 742.25 Td (Exhibit 99.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.70 710.85 Td (CONSENT) Tj ET Q q 0 0 0 rg BT 262.86 710.85 Td ( OF) Tj ET Q q 0 0 0 rg BT 278.88 710.85 Td ( INDEPENDENT) Tj ET Q q 0 0 0 rg BT 353.99 710.85 Td ( ) Tj ET Q q 0 0 0 rg BT 356.31 710.85 Td (V) Tj ET Q q 0 0 0 rg BT 362.24 710.85 Td (ALUER) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.00 683.15 Td (W) Tj ET 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(Form ) Tj ET Q q 0 0 0 rg BT 506.24 647.15 Td (10-K ) Tj ET Q q 0 0 0 rg BT 529.46 647.15 Td (for ) Tj ET Q q 0 0 0 rg BT 543.80 647.15 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.00 635.15 Td (year ) Tj ET Q q 0 0 0 rg BT 74.11 635.15 Td (ended ) Tj ET Q q 0 0 0 rg BT 99.89 635.15 Td (December ) Tj ET Q q 0 0 0 rg BT 142.88 635.15 Td (31, ) Tj ET Q q 0 0 0 rg BT 157.28 635.15 Td (2017 ) Tj ET Q q 0 0 0 rg BT 179.18 635.15 Td (of ) Tj ET Q q 0 0 0 rg BT 189.42 635.15 Td (Hines ) Tj ET Q q 0 0 0 rg BT 214.65 635.15 Td (Global ) Tj ET Q q 0 0 0 rg BT 243.77 635.15 Td (Income ) Tj ET Q q 0 0 0 rg BT 275.52 635.15 Td (T) Tj ET Q q 0 0 0 rg BT 281.28 635.15 Td (rust, ) Tj ET Q q 0 0 0 rg BT 300.68 635.15 Td (Inc. ) Tj ET Q q 0 0 0 rg BT 317.85 635.15 Td ( ) Tj ET Q q 0 0 0 rg BT 319.76 635.15 Td (being ) Tj ET Q q 0 0 0 rg BT 343.88 635.15 Td (included ) Tj ET Q q 0 0 0 rg BT 380.21 635.15 Td (or ) Tj ET Q q 0 0 0 rg BT 390.45 635.15 Td (incorporated ) Tj ET Q q 0 0 0 rg BT 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Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378.5 539.45 m 561.5 539.45 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 544.02 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.00 544.02 Td (/s/ ) Tj ET Q q 0 0 0 rg BT 392.67 544.02 Td (Altus Group U.S., Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 530.02 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.00 530.02 Td (Altus Group U.S., Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 516.02 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.00 516.02 Td (March 29, 2018) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 263 0 obj <> endobj 264 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.35 742.25 Td (EXHIBIT) Tj ET Q q 0 0 0 rg BT 541.96 742.25 Td (31.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.70 718.25 Td (CER) Tj ET Q q 0 0 0 rg BT 286.46 718.25 Td (TIFICA) Tj ET Q q 0 0 0 rg BT 320.72 718.25 Td (TION) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.05 706.25 Td (PURSUANT) Tj ET Q q 0 0 0 rg BT 284.32 706.25 Td ( ) Tj ET Q q 0 0 0 rg BT 286.64 706.25 Td (T) Tj ET Q q 0 0 0 rg BT 293.13 706.25 Td (O SECTION302 OF) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.55 694.25 Td (THE SARBANES-OXLEY) Tj ET Q q 0 0 0 rg BT 333.04 694.25 Td ( ) Tj ET Q q 0 0 0 rg BT 334.99 694.25 Td (ACT) Tj ET Q q 0 0 0 rg BT 355.92 694.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 371.93 694.25 Td ( 2002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (I, Sherri ) Tj ET Q q 0 0 0 rg BT 85.09 670.25 Td (W) Tj ET Q q 0 0 0 rg BT 93.61 670.25 Td (. 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and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 154.25 Td (b. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 154.25 Td (any fraud, whether or not material, that involves management or other employees who have a significant role ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 142.25 Td (in the registrant) Tj ET Q q 0 0 0 rg BT 187.54 142.25 Td (s internal control over financial reporting.) 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Schugart) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.00 94.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 79.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.00 79.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.00 79.87 Td (President and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 372.22 79.87 Td (ficer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.00 79.87 Td () Tj ET Q BT /F1 10.00 Tf ET endstream endobj 265 0 obj <> endobj 266 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.35 742.25 Td (EXHIBIT) Tj ET Q q 0 0 0 rg BT 541.96 742.25 Td (31.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.70 718.25 Td (CER) Tj ET Q q 0 0 0 rg BT 286.46 718.25 Td (TIFICA) Tj ET Q q 0 0 0 rg BT 320.72 718.25 Td (TION) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.05 706.25 Td (PURSUANT) Tj ET Q q 0 0 0 rg BT 284.32 706.25 Td ( ) Tj ET Q q 0 0 0 rg BT 286.64 706.25 Td (T) Tj ET Q q 0 0 0 rg BT 293.13 706.25 Td (O SECTION302 OF) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.55 694.25 Td (THE SARBANES-OXLEY) Tj ET Q q 0 0 0 rg BT 333.04 694.25 Td ( ) Tj ET Q q 0 0 0 rg BT 334.99 694.25 Td (ACT) Tj ET Q q 0 0 0 rg BT 355.92 694.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 371.93 694.25 Td ( 2002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (I, R) Tj ET Q q 0 0 0 rg BT 64.60 670.25 Td (yan ) Tj ET Q q 0 0 0 rg BT 81.36 670.25 Td (T) Tj ET Q q 0 0 0 rg BT 86.72 670.25 Td (. Sims, certify that:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.25 Td (1. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 646.25 Td (I have reviewed this ) Tj ET Q q 0 0 0 rg BT 168.75 646.25 Td (Annual Report on Form 10-K of Hines Global Income ) Tj ET Q q 0 0 0 rg BT 388.81 646.25 Td (T) Tj ET Q q 0 0 0 rg BT 394.56 646.25 Td (rust, Inc.;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 622.25 Td (2. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 622.25 Td (Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 610.25 Td (fact necessary to make the statements made, in light of the circumstances under which such statements were made, not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 598.25 Td (misleading with respect to the period covered by this report;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 574.25 Td (3. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 574.25 Td (Based on my knowledge, the financial statements, and other financial information included in this report, fairly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 562.25 Td (present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 550.25 Td (for) Tj ET Q q 0 0 0 rg BT 97.26 550.25 Td (, the periods presented in this report;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 526.25 Td (4. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 526.25 Td (The registrant) Tj ET Q q 0 0 0 rg BT 144.59 526.25 Td (s other certifying of) Tj ET Q q 0 0 0 rg BT 223.55 526.25 Td (ficer\(s\) and I are responsible for establishing and maintaining disclosure controls ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 514.25 Td (and procedures \(as defined in Exchange ) Tj ET Q q 0 0 0 rg BT 247.60 514.25 Td (Act Rules 13a-15\(e\) and 15d-15\(e\)\) and internal control over financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 502.25 Td (reporting \(as defined in Exchange ) Tj ET Q q 0 0 0 rg BT 223.45 502.25 Td (Act Rules 13a-15\(f\) and 15d-15\(f\)\) for the registrant and have:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 478.25 Td (a. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 478.25 Td (designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 466.25 Td (designed under our supervision, to ensure that material information relating to the registrant, including its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 454.25 Td (consolidated subsidiaries, is made known to us by others within those entities, particularly during the period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 442.25 Td (in which this report is being prepared;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 418.25 Td (b. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 418.25 Td (designed such internal control over financial reporting, or caused such internal control over financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 406.25 Td (reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 394.25 Td (financial reporting and the preparation of financial statements for external purposes in accordance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 382.25 Td (generally accepted accounting principles;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 358.25 Td (c. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 358.25 Td (evaluated the ef) Tj ET Q q 0 0 0 rg BT 185.12 358.25 Td (fectiveness of the registrant) Tj ET Q q 0 0 0 rg BT 298.13 358.25 Td (s disclosure controls and procedures and presented in this report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 346.25 Td (our conclusions about the ef) Tj ET Q q 0 0 0 rg BT 234.57 346.25 Td (fectiveness of the disclosure controls and procedures, as of the end of the period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 334.25 Td (covered by this report based on such evaluation; 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