%PDF-1.5 1 0 obj <> endobj 3 0 obj <> endobj 4 0 obj <> stream 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 35.5 751.5 m 575.5 751.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 35.5 747.5 m 575.5 747.5 l s BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 158.20 728.80 Td (UNITED ST) Tj ET Q q 0 0 0 rg BT 211.09 728.80 Td (A) Tj ET Q q 0 0 0 rg BT 217.57 728.80 Td (TES SECURITIES ) Tj ET Q q 0 0 0 rg BT 301.50 728.80 Td (AND EXCHANGE COMMISSION) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 254.45 716.80 Td (W) Tj ET Q q 0 0 0 rg BT 263.90 716.80 Td (ashington,D.C. 20549) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255.5 702.3 m 355.5 702.3 l s BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 282.25 683.60 Td (Form10-K) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 55.00 664.50 Td (\(Mark One\)) Tj ET Q /GS0 gs q 8.02 0 0 8.78 74.45 648.82 cm /I1 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 108.00 651.50 Td (ANNUAL REPORT PURSUANT TO SECTION 13 OR 15\(d\) OF THE SECURITIES EXCHANGE ACT OF 1934) Tj ET Q BT /F1 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 239.25 635.80 Td (For) Tj ET Q q 0 0 0 rg BT 253.08 635.80 Td ( the fiscal year) Tj ET Q q 0 0 0 rg BT 308.65 635.80 Td ( ended ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 336.15 635.80 Td (December) Tj ET Q q 0 0 0 rg BT 374.97 635.80 Td (31, 2015) Tj ET Q BT /F2 9.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 41.75 602.80 Td (OR) Tj ET Q /GS0 gs q 8.02 0 0 8.78 77.70 614.02 cm /I2 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 111.25 616.70 Td (TRANSITION REPORT PURSUANT TO SECTION 13 OR 15\(d\)OF THE SECURITIES EXCHANGE ACT OF) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 111.25 607.70 Td (1934) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 228.90 584.80 Td (Commission file number: 000-55599) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255.5 570.3 m 355.5 570.3 l s BT /F1 10.00 Tf ET BT /F2 16.00 Tf ET q 0 0 0 rg BT 195.00 544.45 Td (HINES GLOBAL) Tj ET Q q 0 0 0 rg BT 316.38 544.45 Td ( REIT) Tj ET Q q 0 0 0 rg BT 359.21 544.45 Td ( II, INC.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 197.65 532.45 Td (\(Exact Name of Registrant as Specified in its Charter\)) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 158.80 507.69 Td (Maryland) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 412.45 507.69 Td (80-0947092) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.75 495.55 Td (\(State or Other Jurisdiction of Incorporation or Organization\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 372.20 495.55 Td (\(I.R.S. Employer Identification No.\)) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 111.00 479.69 Td (2800 Post Oak Boulevard Suite5000) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 412.65 479.69 Td (77056-6118) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 149.35 467.69 Td (Houston, Texas) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 415.40 467.55 Td (\(Zip code\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 110.55 455.55 Td (\(Address of principal executive offices\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 8.50 Tf ET q 0 0 0 rg BT 183.85 432.05 Td (Registrant) Tj ET Q q 0 0 0 rg BT 224.61 432.05 Td (s telephone number) Tj ET Q q 0 0 0 rg BT 295.14 432.05 Td (, including ar) Tj ET Q q 0 0 0 rg BT 343.40 432.05 Td (ea code: \(888\)220-6121) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 190.70 421.85 Td (Securities r) Tj ET Q q 0 0 0 rg BT 231.85 421.85 Td (egister) Tj ET Q q 0 0 0 rg BT 255.77 421.85 Td (ed pursuant to Section 12\(b\) of the ) Tj ET Q q 0 0 0 rg BT 382.57 421.85 Td (Act: None.) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 141.55 411.65 Td (Securities r) Tj ET Q q 0 0 0 rg BT 182.70 411.65 Td (egister) Tj ET Q q 0 0 0 rg BT 206.62 411.65 Td (ed pursuant to Section 12\(g\) of the ) Tj ET Q q 0 0 0 rg BT 332.94 411.65 Td (Act: Common Stock, par) Tj ET Q q 0 0 0 rg BT 423.45 411.65 Td ( value $0.001) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 45.00 391.25 Td (Indicate by check mark if the registrant is a well-known seasoned issuer) Tj ET Q q 0 0 0 rg BT 289.43 391.25 Td (, as defined in Rule405 of the Securities ) Tj ET Q q 0 0 0 rg BT 429.19 391.25 Td (Act.) Tj ET Q q 0 0 0 rg BT 447.52 391.25 Td (Y) Tj ET Q q 0 0 0 rg BT 452.81 391.25 Td (es) Tj ET Q /GS0 gs q 7.57 0 0 8.73 462.01 389.42 cm /I3 Do Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 469.59 391.25 Td (No) Tj ET Q /GS0 gs q 7.58 0 0 8.73 492.73 389.42 cm /I4 Do Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 45.00 370.85 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 472.48 370.85 Td (Act.) Tj ET Q q 0 0 0 rg BT 490.82 370.85 Td (Y) Tj ET Q q 0 0 0 rg BT 496.10 370.85 Td (es) Tj ET Q /GS0 gs q 7.57 0 0 8.73 505.31 369.02 cm /I5 Do Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 512.88 370.85 Td (No) Tj ET Q /GS0 gs q 7.58 0 0 8.73 536.02 369.02 cm /I6 Do Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 45.00 350.45 Td (Indicate by check mark whether the registrant: \(1\)has filed all reports required to be filed by Section13 or 15\(d\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 522.97 350.45 Td (Act of 1934 ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 36.00 340.25 Td (during the preceding 12months \(or for such shorter period that the registrant was required to file such reports\), and \(2\)has been subject to such filing ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 36.00 330.05 Td (requirements for the past 90days.) Tj ET Q q 0 0 0 rg BT 155.13 330.05 Td (Y) Tj ET Q q 0 0 0 rg BT 160.42 330.05 Td (es) Tj ET Q /GS0 gs q 7.58 0 0 8.73 169.62 328.22 cm /I7 Do Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 177.20 330.05 Td (No) Tj ET Q /GS0 gs q 7.57 0 0 8.73 200.34 328.22 cm /I8 Do Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 45.00 309.65 Td (Indicate by check mark whether the registrant has submitted electronically and posted on its corporate ) Tj ET Q q 0 0 0 rg BT 393.94 309.65 Td (W) Tj ET Q q 0 0 0 rg BT 401.29 309.65 Td (eb site, if any) Tj ET Q q 0 0 0 rg BT 446.53 309.65 Td (, every Interactive Data File required ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 36.00 299.45 Td (to be submitted and posted pursuant to Rule 405 of Regulation S-T) Tj ET Q q 0 0 0 rg BT 263.67 299.45 Td ( \(232.405 of this chapter\) during the preceding 12 months \(or for such shorter period that ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 36.00 289.25 Td (the registrant was required to submit and post such files\). ) Tj ET Q q 0 0 0 rg BT 234.45 289.25 Td (Y) Tj ET Q q 0 0 0 rg BT 239.74 289.25 Td (es ) Tj ET Q /GS0 gs q 7.58 0 0 8.73 248.95 287.42 cm /I9 Do Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 256.53 289.25 Td ( No) Tj ET Q /GS0 gs q 7.57 0 0 8.73 279.66 287.42 cm /I10 Do Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 45.00 268.85 Td (Indicate by check mark if disclosure of delinquent filers pursuant to Item405 of RegulationS-K \(229.405 of this chapter\) is not contained herein, and will ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 36.00 258.65 Td (not be contained, to the best of the registrant) Tj ET Q q 0 0 0 rg BT 189.67 258.65 Td (s knowledge, in definitive proxy or information statements incorporated by reference in PartIII of this Form10-) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 36.00 248.45 Td (K or any amendment to this Form10-K.) Tj ET Q /GS0 gs q 7.58 0 0 8.73 177.18 246.62 cm /I11 Do Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 45.00 228.05 Td (Indicate by check mark whether the registrant is a lar) Tj ET Q q 0 0 0 rg BT 225.40 228.05 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 289.70 228.05 Td (, an accelerated filer) Tj ET Q q 0 0 0 rg BT 358.26 228.05 Td (, a non-accelerated filer) Tj ET Q q 0 0 0 rg BT 438.15 228.05 Td (, or a smaller reporting company) Tj ET Q q 0 0 0 rg BT 548.53 228.05 Td (. 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Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 120.00 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 58.00 120.00 Td (March18, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 115.24 120.00 Td (,approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 173.97 120.00 Td (1) Tj ET Q q 0 0 0 rg BT 178.14 120.00 Td (1.9 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 217.64 120.00 Td ( Class ) Tj ET Q q 0 0 0 rg BT 241.15 120.00 Td (A) Tj ET Q q 0 0 0 rg BT 247.15 120.00 Td ( shares and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.38 120.00 Td (1.7 million) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 328.89 120.00 Td ( Class ) Tj ET Q q 0 0 0 rg BT 352.73 120.00 Td (T) Tj ET Q q 0 0 0 rg BT 358.06 120.00 Td ( shares of the registrant) Tj ET Q q 0 0 0 rg BT 444.53 120.00 Td (s common stock were outstanding.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 202.85 97.20 Td (DOCUMENTS INCORPORA) Tj ET Q q 0 0 0 rg BT 318.43 97.20 Td (TED BY) Tj ET Q q 0 0 0 rg BT 351.36 97.20 Td ( REFERENCE ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 36.00 76.80 Td (Portions of the Registrant) Tj ET Q q 0 0 0 rg BT 125.48 76.80 Td (s proxy statement in connection with its ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 263.12 76.80 Td (2016) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 280.12 76.80 Td ( annual meeting of stockholders are incorporated by reference in Part III. ) Tj ET Q q 0 0 0 rg BT 529.91 76.80 Td (The ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 36.00 66.60 Td (registrant) Tj ET Q q 0 0 0 rg BT 70.46 66.60 Td (s proxy statement will be filed with the Securities and Exchange Commission \(SEC\) no later than ) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 411.35 66.60 Td (April29, 2016) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 461.16 66.60 Td (.) 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Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 714.7333984375 m 149.5615234375 714.7333984375 l s q 0 0 1 rg BT 114.00 716.07 Td (Business) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 702.23 Td (Item 1A.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 700.7333984375 m 164.2783203125 700.7333984375 l s q 0 0 1 rg BT 114.00 702.07 Td (Risk Factors) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 688.23 Td (Item 1B.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 686.7333984375 m 227.69140625 686.7333984375 l s q 0 0 1 rg BT 114.00 688.07 Td (Unresolved Staf) Tj ET Q q 0 0 1 rg BT 178.53 688.07 Td (f Comments) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 674.23 Td (Item 2.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 672.7333984375 m 154.546875 672.7333984375 l s q 0 0 1 rg BT 114.00 674.07 Td (Properties) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 660.23 Td (Item 3.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 658.7333984375 m 188.140625 658.7333984375 l s q 0 0 1 rg BT 114.00 660.07 Td (Legal Proceedings) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 646.23 Td (Item 4.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 644.7333984375 m 212.3154296875 644.7333984375 l s q 0 0 1 rg BT 114.00 646.07 Td (Mine Safety Disclosures) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.85 632.23 Td (PARTII) 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 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 616.7333984375 m 523.2724609375 616.7333984375 l s q 0 0 1 rg BT 114.00 618.07 Td (Market for Registrant) Tj ET Q q 0 0 1 rg BT 203.42 618.07 Td (s Common Equity) Tj ET Q q 0 0 1 rg BT 275.55 618.07 Td (, Related Stockholder Matters and Issuer Purchases of Equity ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 606.7333984375 m 153.43359375 606.7333984375 l s q 0 0 1 rg BT 114.00 608.07 Td (Securities) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 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 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 592.7333984375 m 208.9609375 592.7333984375 l s q 0 0 1 rg BT 114.00 594.07 Td (Selected Financial Data) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 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 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 578.7333984375 m 472.291015625 578.7333984375 l s q 0 0 1 rg BT 114.00 580.07 Td (Management) Tj ET Q q 0 0 1 rg BT 168.98 580.07 Td (s Discussion and ) Tj ET Q q 0 0 1 rg BT 238.15 580.07 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 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 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 564.7333984375 m 355.62109375 564.7333984375 l s q 0 0 1 rg BT 114.00 566.07 Td (Quantitative and Qualitative Disclosures ) Tj ET Q q 0 0 1 rg BT 278.40 566.07 Td (About Market Risk) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 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 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 550.7333984375 m 298.951171875 550.7333984375 l s q 0 0 1 rg BT 114.00 552.07 Td (Financial Statements and Supplementary Data) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 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 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 536.7333984375 m 474.44921875 536.7333984375 l s q 0 0 1 rg BT 114.00 538.07 Td (Changes in and Disagreements ) Tj ET Q q 0 0 1 rg BT 239.90 538.07 Td (W) Tj ET Q q 0 0 1 rg BT 248.94 538.07 Td (ith ) Tj ET Q q 0 0 1 rg BT 261.44 538.07 Td (Accountants on ) Tj ET Q q 0 0 1 rg BT 325.88 538.07 Td (Accounting and Financial Disclosure) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 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 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 522.7333984375 m 212.3154296875 522.7333984375 l s q 0 0 1 rg BT 114.00 524.07 Td (Controls and Procedures) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 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 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 508.7333984375 m 187.0322265625 508.7333984375 l s q 0 0 1 rg BT 114.00 510.07 Td (Other Information) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 285.90 496.23 Td (PARTIII) 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 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 480.7333984375 m 341.4951171875 480.7333984375 l s q 0 0 1 rg BT 114.00 482.07 Td (Directors, Executive Of) Tj ET Q q 0 0 1 rg BT 209.06 482.07 Td (ficers and Corporate Governance) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 468.23 Td (Item 11.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 466.7333984375 m 216.75390625 466.7333984375 l s q 0 0 1 rg BT 114.00 468.07 Td (ExecutiveCompensation) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 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 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 451.8333984375 m 519.15625 451.8333984375 l s q 0 0 1 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 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 439.23 Td (Item 13.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 437.7333984375 m 416.6953125 437.7333984375 l s q 0 0 1 rg BT 114.00 439.07 Td (Certain Relationships and Related ) Tj ET Q q 0 0 1 rg BT 252.68 439.07 Td (T) Tj ET Q q 0 0 1 rg BT 258.43 439.07 Td (ransactions, and Director Independence) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 425.23 Td (Item 14.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 423.7333984375 m 272.8525390625 423.7333984375 l s q 0 0 1 rg BT 114.00 425.07 Td (Principal ) Tj ET Q q 0 0 1 rg BT 152.05 425.07 Td (Accounting Fees and Services) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 286.30 411.23 Td (PARTIV) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 397.23 Td (Item 15.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 114 395.7333984375 m 275.083984375 395.7333984375 l s q 0 0 1 rg BT 114.00 397.07 Td (Exhibits, Financial Statement Schedules) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 53 367.66259765625 m 117.27734375 367.66259765625 l s q 0 0 1 rg BT 53.00 369.23 Td (SIGNA) Tj ET Q q 0 0 1 rg BT 83.93 369.23 Td (TURES) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 355.23 Td (EX- 21.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 355.07 Td (List of Subsidiaries) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 341.23 Td (EX- 31.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 341.07 Td (Certification) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 327.23 Td (EX- 31.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 327.07 Td (Certification) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 313.23 Td (EX- 32.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 313.07 Td (Certification of CEO & CFO pursuant to Section 906) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 285.23 Td (EX- 101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 285.07 Td (Instance Document) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 271.23 Td (EX- 101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 271.07 Td (Schema Document) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 257.23 Td (EX- 101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 257.07 Td (Calculation Linkbase Document) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 243.23 Td (EX- 101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 243.07 Td (Labels Linkbase Document) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 229.23 Td (EX- 101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 229.07 Td (Presentation Linkbase Document) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 215.23 Td (EX- 101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 215.07 Td (Definition Linkbase Document) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 554 714.7333984375 m 559 714.7333984375 l s q 0 0 1 rg BT 554.00 716.07 Td (1) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 554 700.7333984375 m 559 700.7333984375 l s q 0 0 1 rg BT 554.00 702.07 Td (5) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 686.7333984375 m 559 686.7333984375 l s q 0 0 1 rg BT 549.00 688.07 Td (37) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 672.7333984375 m 559 672.7333984375 l s q 0 0 1 rg BT 549.00 674.07 Td (38) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 658.7333984375 m 559 658.7333984375 l s q 0 0 1 rg BT 549.00 660.07 Td (40) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 644.7333984375 m 559 644.7333984375 l s q 0 0 1 rg BT 549.00 646.07 Td (40) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 616.7333984375 m 559 616.7333984375 l s q 0 0 1 rg BT 549.00 618.07 Td (41) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 592.7333984375 m 559 592.7333984375 l s q 0 0 1 rg BT 549.00 594.07 Td (46) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 578.7333984375 m 559 578.7333984375 l s q 0 0 1 rg BT 549.00 580.07 Td (47) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 564.7333984375 m 559 564.7333984375 l s q 0 0 1 rg BT 549.00 566.07 Td (57) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 550.7333984375 m 559 550.7333984375 l s q 0 0 1 rg BT 549.00 552.07 Td (59) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 536.7333984375 m 559 536.7333984375 l s q 0 0 1 rg BT 549.00 538.07 Td (83) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 522.7333984375 m 559 522.7333984375 l s q 0 0 1 rg BT 549.00 524.07 Td (83) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 508.7333984375 m 559 508.7333984375 l s q 0 0 1 rg BT 549.00 510.07 Td (84) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 480.7333984375 m 559 480.7333984375 l s q 0 0 1 rg BT 549.00 482.07 Td (84) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 466.7333984375 m 559 466.7333984375 l s q 0 0 1 rg BT 549.00 468.07 Td (84) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 451.8333984375 m 559 451.8333984375 l s q 0 0 1 rg BT 549.00 453.17 Td (84) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 437.7333984375 m 559 437.7333984375 l s q 0 0 1 rg BT 549.00 439.07 Td (84) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 423.7333984375 m 559 423.7333984375 l s q 0 0 1 rg BT 549.00 425.07 Td (84) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 395.7333984375 m 559 395.7333984375 l s q 0 0 1 rg BT 549.00 397.07 Td (85) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL endstream endobj 7 0 obj <> endobj 8 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 289.80 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 295.17 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 309.26 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 315.75 742.25 Td (I) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (Special Note Regarding Forward-Looking Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.25 Td (This ) Tj ET Q q 0 0 0 rg BT 87.73 694.25 Td (Annual Report on Form 10-K includes certain statements that may be deemed forward-looking statements within the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (meaning of Section 27A) Tj ET Q q 0 0 0 rg BT 146.93 682.25 Td ( of the Securities ) Tj ET Q q 0 0 0 rg BT 216.36 682.25 Td (Act of 1933, as amended \(the Securities ) Tj ET Q q 0 0 0 rg BT 382.42 682.25 Td (Act\), and Section 21E of the Securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 91.37 670.25 Td (Act of 1934, as amended \(the Exchange ) Tj ET Q q 0 0 0 rg BT 257.42 670.25 Td (Act\). 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 394.50 610.25 Td (. ) Tj ET Q q 0 0 0 rg BT 401.82 610.25 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 Item1A. 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 50.00 358.25 Td (Item1.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 79.99 358.25 Td (Business) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (General Description of Business and Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 310.25 Td (Hines Global REIT) Tj ET Q q 0 0 0 rg BT 145.58 310.25 Td ( II, Inc. \(Hines Global II\) was formed as a Maryland corporation on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.42 310.25 Td (July31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.59 310.25 Td (, for the purpose of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (investing in a diversified portfolio of quality commercial real estate properties and other real estate investments located ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (throughout the United States and internationally) Tj ET Q q 0 0 0 rg BT 241.81 286.25 Td (. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.48 286.25 Td (August20, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.87 286.25 Td (, Hines Global II commenced an of) Tj ET Q q 0 0 0 rg BT 470.48 286.25 Td (fering of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.46 286.25 Td ($2.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 Td (billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.11 274.25 Td ( of its common stock for sale to the public \(the Of) Tj ET Q q 0 0 0 rg BT 280.05 274.25 Td (fering\). ) Tj ET Q q 0 0 0 rg BT 319.01 274.25 Td (The Of) Tj ET Q q 0 0 0 rg BT 347.43 274.25 Td (fering was amended in ) Tj ET Q q 0 0 0 rg BT 440.18 274.25 Td (August 2015 such that Hines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.25 Td (Global II is currently of) Tj ET Q q 0 0 0 rg BT 144.79 262.25 Td (fering its common stock in any combination of Class ) Tj ET Q q 0 0 0 rg BT 358.37 262.25 Td (A) Tj ET Q q 0 0 0 rg BT 365.04 262.25 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 408.47 262.25 Td (T) Tj ET Q q 0 0 0 rg BT 414.40 262.25 Td ( shares, at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.86 262.25 Td ($10.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.36 262.25 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.25 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.62 250.25 Td (A) Tj ET Q q 0 0 0 rg BT 80.29 250.25 Td ( share of common stock \(Class ) Tj ET Q q 0 0 0 rg BT 209.71 250.25 Td (A) Tj ET Q q 0 0 0 rg BT 216.38 250.25 Td ( Shares\) and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.74 250.25 Td ($9.4489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.24 250.25 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 347.00 250.25 Td (T) Tj ET Q q 0 0 0 rg BT 352.93 250.25 Td ( share of common stock \(Class ) Tj ET Q q 0 0 0 rg BT 482.72 250.25 Td (T) Tj ET Q q 0 0 0 rg BT 488.65 250.25 Td ( Shares\). Hines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 Td (Global II also issues shares pursuant to its distribution reinvestment plan at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.98 238.25 Td ($9.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.48 238.25 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 456.87 238.25 Td (A) Tj ET Q q 0 0 0 rg BT 463.54 238.25 Td ( Share and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.25 238.25 Td ($9.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.75 238.25 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.25 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.99 226.25 Td (T) Tj ET Q q 0 0 0 rg BT 79.92 226.25 Td ( Share. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.41 226.25 Td (September26, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.67 226.25 Td (, Hines Global II achieved its minimum of) Tj ET Q q 0 0 0 rg BT 376.90 226.25 Td (fering requirements pursuant to the terms of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (the Of) Tj ET Q q 0 0 0 rg BT 75.09 214.25 Td (fering in all states except for Pennsylvania and ) Tj ET Q q 0 0 0 rg BT 264.29 214.25 Td (W) Tj ET Q q 0 0 0 rg BT 272.93 214.25 Td (ashington, which have higher minimum of) Tj ET Q q 0 0 0 rg BT 442.72 214.25 Td (fering requirements. ) Tj ET Q q 0 0 0 rg BT 528.62 214.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 Td (minimum of) Tj ET Q q 0 0 0 rg BT 99.54 202.25 Td (fering requirements were met on March 23, 2015 for ) Tj ET Q q 0 0 0 rg BT 312.62 202.25 Td (W) Tj ET Q q 0 0 0 rg BT 321.26 202.25 Td (ashington and on December 24, 2015 for Pennsylvania. ) Tj ET Q q 0 0 0 rg BT 547.60 202.25 Td (As ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.83 190.25 Td (March18, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.43 190.25 Td (, Hines Global II had received gross of) Tj ET Q q 0 0 0 rg BT 279.20 190.25 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.44 190.25 Td ($133.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.33 190.25 Td ( from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.37 190.25 Td (13.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.26 190.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (common shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 154.25 Td (Hines Global II conducts most of its activities through, and most of its real estate investments are held directly or indirectly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.25 Td (by) Tj ET Q q 0 0 0 rg BT 59.35 142.25 Td (, Hines Global REIT) Tj ET Q q 0 0 0 rg BT 141.93 142.25 Td ( II Properties, LP) Tj ET Q q 0 0 0 rg BT 210.44 142.25 Td ( \(the Operating Partnership\), which was formed on July 31, 2013. Hines Global II ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td (contributes the proceeds it receives from the issuance of common shares to the Operating Partnership and the Operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (Partnership in turn issues general partner interests to Hines Global II. ) Tj ET Q q 0 0 0 rg BT 331.69 118.25 Td (The general partner interests entitle Hines Global II to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (receive its share of the Operating Partnership) Tj ET Q q 0 0 0 rg BT 233.27 106.25 Td (s earnings or losses and distributions of cash flow) Tj ET Q q 0 0 0 rg BT 431.48 106.25 Td (. Hines Global II is constructed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (in a manner that would allow the Operating Partnership to issue limited partner units from time to time in exchange for real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (estate properties. By structuring acquisitions in this manner) Tj ET Q q 0 0 0 rg BT 289.83 82.25 Td (, the sellers of the real estate will generally be able to defer the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.25 Td (taxation of gains until they exchange their limited partner units from common shares of Hines Global II or sell or redeem their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.25 Td (units.) 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 68.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 742.10 Td (e refer to Hines Global II, the Operating Partnership and its wholly-owned subsidiaries as the Company) Tj ET Q q 0 0 0 rg BT 494.77 742.10 Td (, and the use of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (we, our) Tj ET Q q 0 0 0 rg BT 92.91 730.10 Td (, us or similar pronouns in this annual report refers to Hines Global II or the Company as required by the context ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (in which such pronoun is used.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 694.10 Td (e made our initial real estate investment, 2819 Loker ) Tj ET Q q 0 0 0 rg BT 289.35 694.10 Td (A) Tj ET Q q 0 0 0 rg BT 295.83 694.10 Td (venue East, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.70 694.10 Td (December 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.28 694.10 Td (. ) Tj ET Q q 0 0 0 rg BT 425.60 694.10 Td (The Class ) Tj ET Q q 0 0 0 rg BT 467.27 694.10 Td (A) Tj ET Q q 0 0 0 rg BT 473.94 694.10 Td ( industrial building, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (located in Carlsbad, California, consists of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.74 682.10 Td (161,310) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.24 682.10 Td ( square feet of leasable space. In March 2015, we acquired Bishop) Tj ET Q q 0 0 0 rg BT 525.69 682.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (Square, a Class ) Tj ET Q q 0 0 0 rg BT 113.33 670.10 Td (A) Tj ET Q q 0 0 0 rg BT 120.00 670.10 Td ( of) Tj ET Q q 0 0 0 rg BT 130.64 670.10 Td (fice building located in Dublin, Ireland, which consists of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.91 670.10 Td (153,569) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.41 670.10 Td ( square feet of leasable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (space. ) Tj ET Q q 0 0 0 rg BT 79.53 658.10 Td (W) Tj ET Q q 0 0 0 rg BT 88.16 658.10 Td (e acquired the Domain ) Tj ET Q q 0 0 0 rg BT 180.91 658.10 Td (Apartments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.34 658.10 Td (January 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.94 658.10 Td (. ) Tj ET Q q 0 0 0 rg BT 301.26 658.10 Td (The Domain ) Tj ET Q q 0 0 0 rg BT 353.47 658.10 Td (Apartments is a multi-family community located in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (Las ) Tj ET Q q 0 0 0 rg BT 66.76 646.10 Td (V) Tj ET Q q 0 0 0 rg BT 72.87 646.10 Td (egas, Nevada consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.56 646.10 Td (308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.56 646.10 Td ( units with an average unit size of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.75 646.10 Td (1,075) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.25 646.10 Td ( square feet. ) Tj ET Q q 0 0 0 rg BT 410.65 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 419.29 646.10 Td (e may purchase properties or make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (other real estate investments that relate to varying property types including of) Tj ET Q q 0 0 0 rg BT 360.00 634.10 Td (fice, retail, industrial, multi-family residential and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (hospitality or leisure. ) Tj ET Q q 0 0 0 rg BT 139.53 622.10 Td (W) Tj ET Q q 0 0 0 rg BT 148.16 622.10 Td (e may invest in operating properties, properties under development, and undeveloped properties such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (as land. Other real estate investments may include equity or debt interests, including securities, in other real estate entities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (debt related to properties such as mortgages, mezzanine loans, B-notes, bridge loans, construction loans and securitized debt.) 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 have no employees. Our business is managed by Hines Global REIT) Tj ET Q q 0 0 0 rg BT 360.01 574.10 Td ( II ) Tj ET Q q 0 0 0 rg BT 371.12 574.10 Td (Advisors LP) Tj ET Q q 0 0 0 rg BT 421.03 574.10 Td ( \(the Advisor\), an af) Tj ET Q q 0 0 0 rg BT 510.53 574.10 Td (filiate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (Hines Interests Limited Partnership \(Hines\), under the terms and conditions of an advisory agreement between us and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (Advisor \(the Advisory ) Tj ET Q q 0 0 0 rg BT 146.38 550.10 Td (Agreement\). ) Tj ET Q q 0 0 0 rg BT 205.52 550.10 Td (As compensation for these services, we pay our ) Tj ET Q q 0 0 0 rg BT 397.96 550.10 Td (Advisor asset management, acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (and disposition fees and we reimburse certain of the ) Tj ET Q q 0 0 0 rg BT 260.21 538.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 292.81 538.10 Td () Tj ET Q q 0 0 0 rg BT 295.59 538.10 Td (s expenses incurred on our behalf in accordance with the ) Tj ET Q q 0 0 0 rg BT 524.39 538.10 Td (Advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (Agreement. Hines or af) Tj ET Q q 0 0 0 rg BT 146.17 526.10 Td (filiates of Hines manage the leasing and operations of most of the properties in which we invest and, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (accordingly) Tj ET Q q 0 0 0 rg BT 96.55 514.10 Td (, we pay Hines property management and leasing fees in connection with these services. Hines is owned and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (controlled by) Tj ET Q q 0 0 0 rg BT 102.39 502.10 Td (, or for the benefit of, Gerald D. Hines and his son Jef) Tj ET Q q 0 0 0 rg BT 317.43 502.10 Td (frey C. Hines, the Chairman of our board of directors. Hines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (and its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 490.10 Td (3,700) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.39 490.10 Td (employees have over 50years of experience in the areas of investment selection, underwriting, due diligence, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (portfolio management, asset management, property management, leasing, disposition, finance, accounting and investor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (relations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 442.10 Td (Our of) Tj ET Q q 0 0 0 rg BT 94.20 442.10 Td (fice is located at 2800 Post Oak Boulevard, Suite5000, Houston, ) Tj ET Q q 0 0 0 rg BT 356.76 442.10 Td (T) Tj ET Q q 0 0 0 rg BT 362.17 442.10 Td (exas 77056-61) Tj ET Q q 0 0 0 rg BT 420.40 442.10 Td (18. Our telephone number is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (1-888-220-6121. Our web site is www) Tj ET Q q 0 0 0 rg BT 206.27 430.10 Td (.HinesSecurities.com/reits/hines-global-reit-2. ) Tj ET Q q 0 0 0 rg BT 395.77 430.10 Td (The information on our website is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (incorporated by reference into this report.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (Primary Investment Objectives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 370.10 Td (Our primary investment objectives are to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 346.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 346.10 Td (preserve invested capital;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 328.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 328.10 Td (invest in a diversified portfolio of quality commercial real estate properties and other real estate investments;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 310.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 310.10 Td (provide income in the form of regular) Tj ET Q q 0 0 0 rg BT 227.66 310.10 Td (, stable cash distributions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 292.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 292.10 Td (provide modest growth in the value of invested capital;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 274.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 274.10 Td (achieve attractive total returns upon the ultimate sale of our investments or occurrence of another liquidity event;and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 256.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 256.10 Td (remain qualified as a real estate investment trust \(REIT\) for federal income tax purposes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 232.10 Td (Acquisition and Investment Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 208.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 208.10 Td (e expect to invest the proceeds from the Of) Tj ET Q q 0 0 0 rg BT 248.62 208.10 Td (fering in a diversified portfolio of quality commercial real estate properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.10 Td (and other real estate investments throughout the United States and internationally) Tj ET Q q 0 0 0 rg BT 374.82 196.10 Td (. ) Tj ET Q q 0 0 0 rg BT 382.14 196.10 Td (W) Tj ET Q q 0 0 0 rg BT 390.78 196.10 Td (e may purchase properties or make other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.10 Td (real estate investments that relate to varying property types including of) Tj ET Q q 0 0 0 rg BT 336.95 184.10 Td (fice, retail, industrial, multi-family residential and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.10 Td (hospitality or leisure. ) Tj ET Q q 0 0 0 rg BT 139.53 172.10 Td (W) Tj ET Q q 0 0 0 rg BT 148.16 172.10 Td (e may invest in operating properties, properties under development, and undeveloped properties such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.10 Td (as land. Other real estate investments may include equity or debt interests including securities in other real estate entities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.10 Td (debt related to properties such as mortgages, mezzanine loans, B-notes, bridge loans, construction loans and securitized debt. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 136.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 136.10 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 50.00 124.10 Td (portfolio of such investments which are well-selected, well-managed and disposed of at an optimal time. Our principal tar) Tj ET Q q 0 0 0 rg BT 539.67 124.10 Td (geted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 112.10 Td (assets are investments in properties, and other real estate investments that relate to properties, that have quality construction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 100.10 Td (and desirable locations which can attract quality tenants. ) Tj ET Q q 0 0 0 rg BT 280.85 100.10 Td (These types of investments are, or relate to, properties generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 88.10 Td (located in central business districts or suburban markets of major metropolitan cities worldwide. ) Tj ET Q q 0 0 0 rg BT 440.00 88.10 Td (W) Tj ET Q q 0 0 0 rg BT 448.64 88.10 Td (e intend to invest in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 76.10 Td (geographically diverse portfolio in order to reduce the risk of reliance on a particular market, a particular property and/or a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 64.10 Td (particular tenant. ) Tj ET Q q 0 0 0 rg BT 122.56 64.10 Td (W) Tj ET Q q 0 0 0 rg BT 131.20 64.10 Td (e anticipate that international real estate investments may comprise a substantial portion of our portfolio.) 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 /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 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 50.00 730.10 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 50.00 718.10 Td (or with other Hines-af) Tj ET Q q 0 0 0 rg BT 138.40 718.10 Td (filiated entities. ) Tj ET Q q 0 0 0 rg BT 205.42 718.10 Td (W) Tj ET Q q 0 0 0 rg BT 214.06 718.10 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 50.00 706.10 Td (in the Of) Tj ET Q q 0 0 0 rg BT 85.37 706.10 Td (fering and potential follow-on of) Tj ET Q q 0 0 0 rg BT 216.26 706.10 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 68.00 682.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 682.10 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 519.93 682.10 Td (W) Tj ET Q q 0 0 0 rg BT 528.57 682.10 Td (e are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (not specifically limited in the number or size of investments we may make, or on the percentage of net proceeds of the Of) Tj ET Q q 0 0 0 rg BT 536.60 670.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (that we may invest in a single property) Tj ET Q q 0 0 0 rg BT 204.59 658.10 Td (, real estate investment or loan. ) Tj ET Q q 0 0 0 rg BT 333.72 658.10 Td (Although the actual percentages may vary from those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (presently anticipated, after the proceeds of the Of) Tj ET Q q 0 0 0 rg BT 247.51 646.10 Td (fering and any subsequent of) Tj ET Q q 0 0 0 rg BT 362.85 646.10 Td (ferings have been fully invested, we anticipate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (that international real estate investments will comprise between 40% and 60% of our portfolio and real estate investments other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (than the acquisition of commercial real estate properties will comprise less than 30% of our portfolio. ) Tj ET Q q 0 0 0 rg BT 460.81 622.10 Td (The number) Tj ET Q q 0 0 0 rg BT 509.00 622.10 Td (, size and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (mix of investments we make will depend upon real estate and market conditions and other circumstances existing at the time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (we are evaluating investment opportunities and the amount of proceeds we raise in the Of) Tj ET Q q 0 0 0 rg BT 408.59 598.10 Td (fering and any subsequent of) Tj ET Q q 0 0 0 rg BT 523.94 598.10 Td (ferings.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (Financing Strategy and Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 550.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 550.10 Td (e expect that once we have fully invested the proceeds of the Of) Tj ET Q q 0 0 0 rg BT 332.46 550.10 Td (fering and other potential subsequent of) Tj ET Q q 0 0 0 rg BT 491.40 550.10 Td (ferings, our debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (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 50.00 526.10 Td (approximately 40%60% of the aggregate value of our real estate investments and other assets. Financing for acquisitions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (and investments may be obtained at the time an asset is acquired or an investment is made or at such later time as we determine ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (to 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 50.00 490.10 Td (tenant improvements and other working capital needs, including the payment of distributions. ) Tj ET Q q 0 0 0 rg BT 429.09 490.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 478.99 490.10 Td (, the amount of debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (placed on an individual property or related to a particular investment, including our pro rata share of the amount of debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (incurred by an individual entity in which we invest, may be less than 40% or more than 60% of the value of such property/) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (investment or the value of the assets owned by such entity) Tj ET Q q 0 0 0 rg BT 282.08 454.10 Td (, depending on market conditions and other factors. Our aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (borrowings, secured and unsecured, must be reasonable in relation to our net assets and must be reviewed by our board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (directors at least quarterly) Tj ET Q q 0 0 0 rg BT 153.47 430.10 Td (. Our charter limits our borrowing to 300% of our net assets \(which approximates 75% of the cost of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (our assets\) unless any excess borrowing is approved by a majority of our independent directors and is disclosed to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (stockholders in our next quarterly report along with justification for the excess. ) Tj ET Q q 0 0 0 rg BT 371.03 406.10 Td (As described below) Tj ET Q q 0 0 0 rg BT 449.25 406.10 Td (, our independent directors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (have approved borrowings in excess of these limitations in connection with our first two investments, as we are in the early ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (stages of raising capital through the Of) Tj ET Q q 0 0 0 rg BT 205.33 382.10 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 358.10 Td (In November 2014, our board of directors, including all of our independent directors, approved a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.88 358.10 Td ($75.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.77 358.10 Td ( unsecured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (credit facility \(the Hines Credit Facility\) between us and Hines to be used to fund acquisitions and other working capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (needs. In December 2014, our board of directors, including all of our independent directors, approved a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.03 334.10 Td ($24.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.92 334.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (borrowing under the Hines Credit Facility to fund our acquisition of 2819 Loker ) Tj ET Q q 0 0 0 rg BT 373.00 322.10 Td (A) Tj ET Q q 0 0 0 rg BT 379.48 322.10 Td (venue East, which was equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (approximately 95% of the contract purchase price of 2819 Loker ) Tj ET Q q 0 0 0 rg BT 311.02 310.10 Td (A) Tj ET Q q 0 0 0 rg BT 317.50 310.10 Td (venue East. ) Tj ET Q q 0 0 0 rg BT 368.04 310.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 417.94 310.10 Td (, in January 2015, our board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (directors, including all of our independent directors, approved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.48 298.10 Td ($45.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.37 298.10 Td ( of additional borrowings under the Hines Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (Facility and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.93 286.10 Td (55.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.82 286.10 Td ( secured credit facility \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.77 286.10 Td ($62.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.66 286.10 Td ( using ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.33 286.10 Td ($1.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.83 286.10 Td ( per Euro as of the transaction date\) for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (purchase of Bishop) Tj ET Q q 0 0 0 rg BT 129.99 274.10 Td (s Square in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.92 274.10 Td (March 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.52 274.10 Td (. In total, these borrowings represented approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.57 274.10 Td (104%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.90 274.10 Td ( of the cost of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (Bishop) Tj ET Q q 0 0 0 rg BT 81.12 262.10 Td (s Square based on the contract purchase price. ) Tj ET Q q 0 0 0 rg BT 269.94 262.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.38 262.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.96 262.10 Td ( our portfolio was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.10 262.10 Td (41%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.43 262.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (leveraged based on the net purchase price of our real estate investments. ) Tj ET Q q 0 0 0 rg BT 343.22 250.10 Td (As a result of payments made on the Hines Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (Facility) Tj ET Q q 0 0 0 rg BT 79.90 238.10 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.56 238.10 Td (March24, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.16 238.10 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.26 238.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.26 238.10 Td ( outstanding borrowings under the Hines Credit Facility) Tj ET Q q 0 0 0 rg BT 439.19 238.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 214.10 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 50.00 202.10 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 50.00 190.10 Td (Moreover) Tj ET Q q 0 0 0 rg BT 89.03 190.10 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 50.00 178.10 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 50.00 166.10 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 50.00 154.10 Td (principal.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (Distribution Objectives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 106.10 Td (In order to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 183.34 106.10 Td ( for federal income tax purposes, we must distribute at least 90% of our taxable income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (\(excluding capital gains\) to our stockholders. ) Tj ET Q q 0 0 0 rg BT 235.33 94.10 Td (W) Tj ET Q q 0 0 0 rg BT 243.96 94.10 Td (e intend, although we are not legally obligated, to continue to make regular ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (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 480.01 82.10 Td ( status unless our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (results of operations, our general financial condition, general economic conditions or other factors inhibit us from doing so. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (Distributions are authorized at the discretion of our board of directors, which is directed, in substantial part, by its obligation to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (cause us to comply with the REIT) Tj ET Q q 0 0 0 rg BT 185.90 46.10 Td ( requirements of the Internal Revenue Code of 1986, as amended \(the Code\).) 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 68.00 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 730.10 Td (e declare distributions to our stockholders as of daily record dates and aggregate and pay such distributions monthly) Tj ET Q q 0 0 0 rg BT 540.04 730.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (W) Tj ET Q q 0 0 0 rg BT 59.04 718.10 Td (ith the authorization of our board of directors, we declared distributions with respect to Class ) Tj ET Q q 0 0 0 rg BT 432.83 718.10 Td (A) Tj ET Q q 0 0 0 rg BT 439.50 718.10 Td ( Shares of our common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (for the period from October 1, 2014 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.68 706.10 Td (March 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.28 706.10 Td (. Distributions for Class ) Tj ET Q q 0 0 0 rg BT 393.28 706.10 Td (A) Tj ET Q q 0 0 0 rg BT 399.95 706.10 Td ( Shares were or will be calculated based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (on stockholders of record each day in an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.31 694.10 Td ($0.001575342) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.81 694.10 Td ( per share, per day) Tj ET Q q 0 0 0 rg BT 411.74 694.10 Td (. ) Tj ET Q q 0 0 0 rg BT 418.69 694.10 Td (Also, with the authorization of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (board of directors, we declared distributions with respect to Class ) Tj ET Q q 0 0 0 rg BT 314.47 682.10 Td (T) Tj ET Q q 0 0 0 rg BT 320.40 682.10 Td ( Shares of our common stock for the period from ) Tj ET Q q 0 0 0 rg BT 518.13 682.10 Td (August ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (24, 2015 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.11 670.10 Td (March 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.71 670.10 Td (. Distributions for Class ) Tj ET Q q 0 0 0 rg BT 285.08 670.10 Td (T) Tj ET Q q 0 0 0 rg BT 291.01 670.10 Td ( Shares were or will be calculated based on stockholders of record ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (each day in an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.90 658.10 Td ($0.001575342) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.40 658.10 Td ( per share, per day less the distribution and stockholder servicing fees that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (payable with respect to such Class ) Tj ET Q q 0 0 0 rg BT 189.79 646.10 Td (T) Tj ET Q q 0 0 0 rg BT 195.71 646.10 Td ( Shares \(as calculated on a daily basis\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 622.10 Td (All distributions were or will be paid in cash or reinvested in shares of our common stock for those participating in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (distribution reinvestment plan and have been or will be paid or issued, respectively) Tj ET Q q 0 0 0 rg BT 381.21 610.10 Td (, on the first business day following the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (completion of the month to which they relate. Distributions reinvested pursuant to the distribution reinvestment plan will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (reinvested in shares of the same class as the shares on which the distributions are being made. Some or all of the cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (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 68.00 550.10 Td (In addition to the distributions described above, our board of directors authorized special stock dividends to holders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.62 538.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.29 538.10 Td ( Shares as of daily record dates for the period from October 1, 2014 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.87 538.10 Td (June30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.70 538.10 Td (. Stock dividends for Class ) Tj ET Q q 0 0 0 rg BT 554.64 538.10 Td (A) Tj ET Q q 0 0 0 rg BT 561.31 538.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (Shares were calculated based on stockholders of record each day in an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.70 526.10 Td (0.0000273973) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.20 526.10 Td ( of a Class ) Tj ET Q q 0 0 0 rg BT 502.08 526.10 Td (A) Tj ET Q q 0 0 0 rg BT 508.75 526.10 Td ( Share per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (share, per day) Tj ET Q q 0 0 0 rg BT 105.16 514.10 Td (. Shares issued related to our stock dividends were issued on the first business day of the month following the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (quarter to which they related.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 478.10 Td (In our initial quarters of operations, and from time to time thereafter) Tj ET Q q 0 0 0 rg BT 340.29 478.10 Td (, our cash flows from operations have been and may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (continue to be insuf) Tj ET Q q 0 0 0 rg BT 128.97 466.10 Td (ficient to fund distributions to stockholders. ) Tj ET Q q 0 0 0 rg BT 308.77 466.10 Td (W) Tj ET Q q 0 0 0 rg BT 317.41 466.10 Td (e funded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.61 466.10 Td (23%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.94 466.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.38 466.10 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.71 466.10 Td ( of total distributions for the years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.38 454.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.96 454.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.40 454.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.40 454.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 247.06 454.10 Td (, with cash flows from financing activities, which includes of) Tj ET Q q 0 0 0 rg BT 491.54 454.10 Td (fering proceeds.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 430.10 Td (In addition, our ) Tj ET Q q 0 0 0 rg BT 131.88 430.10 Td (Advisor agreed to waive the asset management fees for each quarter in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.32 430.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.32 430.10 Td ( and the quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 418.10 Td (, to the extent that our modified funds from operations \(MFFO\), for a particular quarter) Tj ET Q q 0 0 0 rg BT 485.85 418.10 Td (, as disclosed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (our ) Tj ET Q q 0 0 0 rg BT 65.28 406.10 Td (Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as applicable, amounts to less than 100% of the aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (distributions declared to our stockholders for such quarter) Tj ET Q q 0 0 0 rg BT 280.78 394.10 Td (. Our ) Tj ET Q q 0 0 0 rg BT 305.78 394.10 Td (Advisor also agreed to waive an additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.34 394.10 Td ($62,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.84 394.10 Td ( in asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (management fees so that our MFFO for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.60 382.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.19 382.10 Td ( would equal our distributions declared for such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (year) Tj ET Q q 0 0 0 rg BT 66.66 370.10 Td (. ) Tj ET Q q 0 0 0 rg BT 73.60 370.10 Td (As a result of these waivers, our ) Tj ET Q q 0 0 0 rg BT 204.13 370.10 Td (Advisor waived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.22 370.10 Td ($583,433) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.72 370.10 Td ( of the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.04 370.10 Td ($888,109) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.54 370.10 Td ( in asset management fees payable to it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.41 358.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.99 358.10 Td ( and all of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.47 358.10 Td ($16,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.97 358.10 Td ( of 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 50.00 346.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 346.10 Td (. Our advisor has also agreed to waive the asset management fees otherwise payable to it for each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (quarters ended March 31, 2016 and June 30, 2016, to the extent that our MFFO for such quarters, as disclosed in our Quarterly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (Report on Form 10-Q, amounts to less than 100% of the aggregate distributions declared to our stockholders for each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (respective quarter) Tj ET Q q 0 0 0 rg BT 120.80 310.10 Td (. ) Tj ET Q q 0 0 0 rg BT 128.12 310.10 Td (These fee waivers are not deferrals and accordingly) Tj ET Q q 0 0 0 rg BT 333.75 310.10 Td (, these fees will not be paid to our ) Tj ET Q q 0 0 0 rg BT 470.94 310.10 Td (Advisor in cash at any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (time in the future.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.75 274.10 Td (ax Status) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 250.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 250.10 Td (e intend to make an election to be taxed as a REIT) Tj ET Q q 0 0 0 rg BT 277.21 250.10 Td (, under Sections 856 through 860 of the Internal Revenue Code of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (1986, as amended \(the Code\), ef) Tj ET Q q 0 0 0 rg BT 188.37 238.10 Td (fective for our taxable year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.52 238.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.11 238.10 Td (. In order to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 526.38 238.10 Td (, an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (entity must meet certain or) Tj ET Q q 0 0 0 rg BT 157.01 226.10 Td (ganizational and operational requirements, including a requirement to distribute at least 90% of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (annual ordinary taxable income to stockholders. REIT) Tj ET Q q 0 0 0 rg BT 268.68 214.10 Td (s are generally not subject to federal income tax on taxable income that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (they distribute to their stockholders. If we fail to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 319.19 202.10 Td ( in any taxable year) Tj ET Q q 0 0 0 rg BT 397.09 202.10 Td (, we will then be subject to federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT) Tj ET Q q 0 0 0 rg BT 537.14 190.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (Service granted us relief under certain statutory provisions. Such an event could have a materially adverse af) Tj ET Q q 0 0 0 rg BT 486.88 166.10 Td (fect our net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (income and net cash available for distribution to stockholders. However) Tj ET Q q 0 0 0 rg BT 339.79 154.10 Td (, we believe that we have been or) Tj ET Q q 0 0 0 rg BT 472.89 154.10 Td (ganized and operated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (in such a manner as to qualify for treatment as a REIT) Tj ET Q q 0 0 0 rg BT 266.69 142.10 Td ( beginning with our taxable year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.25 142.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.83 142.10 Td ( and intend to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (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 421.06 130.10 Td ( for federal income tax purposes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 118.10 Td (e did not elect to be taxed as a REIT) Tj ET Q q 0 0 0 rg BT 203.68 118.10 Td ( for the taxable year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.51 118.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.10 118.10 Td (. ) Tj ET Q q 0 0 0 rg BT 398.42 118.10 Td (This did not have an impact on our tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (liability or the tax liability of our stockholders that invested in our public of) Tj ET Q q 0 0 0 rg BT 352.26 106.10 Td (fering during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.25 106.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.25 106.10 Td ( since we did not have any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (taxable income for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.27 94.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.85 94.10 Td (.) 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 /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Competition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.25 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 50.00 706.25 Td (Global REIT) Tj ET Q q 0 0 0 rg BT 101.19 706.25 Td (, Inc. \(Hines Global I\) and Hines Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 338.15 706.25 Td (T) Tj ET Q q 0 0 0 rg BT 343.91 706.25 Td (rust, Inc. \(Hines REIT\) compete with us in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (acquiring properties or making other real estate investments and obtaining creditworthy tenants to occupy such properties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (Many of these entities have significant financial and other resources, allowing them to compete ef) Tj ET Q q 0 0 0 rg BT 441.63 682.25 Td (fectively with us. Principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (factors of competition in our primary business of acquiring properties or making other real estate investments include access to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (capital, the quality of properties, leasing terms \(including rent and other char) Tj ET Q q 0 0 0 rg BT 356.66 658.25 Td (ges and allowances for inducements and tenant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (improvements\), the quality and breadth of tenant services provided, and reputation as an owner and operator of commercial real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (estate investments in the relevant market. ) Tj ET Q q 0 0 0 rg BT 219.95 634.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 269.85 634.25 Td (, our ability to compete depends upon, among other factors, trends of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (global, national and local economies, investment alternatives, financial condition and operating results of current and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (prospective tenants, availability and cost of capital, taxes, governmental regulations, legislation and demographic trends.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 586.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 586.25 Td (e believe Hines) Tj ET Q q 0 0 0 rg BT 140.87 586.25 Td ( extensive real estate experience and depth and breadth of its or) Tj ET Q q 0 0 0 rg BT 394.19 586.25 Td (ganization of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (3,700) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 574.25 Td (employees located in over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.18 574.25 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.18 574.25 Td (cities across the United States and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.54 574.25 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.54 574.25 Td ( foreign countries allows it to better identify ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (investment opportunities for us. However) Tj ET Q q 0 0 0 rg BT 218.46 562.25 Td (, competition may increase our cost of acquisitions.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 514.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 514.25 Td (e are dependent upon the ability of current tenants to pay their contractual rent amounts as the rents become due. Of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (total rental revenue for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.64 502.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.23 502.25 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.49 502.25 Td (44%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.82 502.25 Td ( was earned from ) Tj ET Q q 0 0 0 rg BT 438.27 502.25 Td (The Commissioners of Public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 490.25 Td (orks in Ireland, a state agency of Ireland, under a lease that expires in January 2028, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.38 490.25 Td (26%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.71 490.25 Td ( was earned from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (Acushnet Company) Tj ET Q q 0 0 0 rg BT 128.51 478.25 Td (, the parent company of ) Tj ET Q q 0 0 0 rg BT 225.51 478.25 Td (T) Tj ET Q q 0 0 0 rg BT 231.27 478.25 Td (itleist, FootJoy) Tj ET Q q 0 0 0 rg BT 290.07 478.25 Td (, BV) Tj ET Q q 0 0 0 rg BT 308.05 478.25 Td (-V) Tj ET Q q 0 0 0 rg BT 317.31 478.25 Td (okey Design, Scotty Cameron, Pinnacle, and the ) Tj ET Q q 0 0 0 rg BT 513.20 478.25 Td (T) Tj ET Q q 0 0 0 rg BT 518.96 478.25 Td (itleist ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (Performance Institute, under a lease that expires in July 2019 and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.07 466.25 Td (15%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.40 466.25 Td ( was earned from International Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td (Data Services, an investor record-keeping and transfer agency provider) Tj ET Q q 0 0 0 rg BT 334.20 454.25 Td (, under a lease that expires in June 2024. ) Tj ET Q q 0 0 0 rg BT 500.82 454.25 Td (As of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (December 31, 2015, there were no other 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 50.00 418.25 Td (A) Tj ET Q q 0 0 0 rg BT 56.48 418.25 Td (vailable Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 394.25 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 526.32 394.25 Td (ge from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (the website maintained by the SEC at www) Tj ET Q q 0 0 0 rg BT 223.48 382.25 Td (.sec.gov or from our website at www) Tj ET Q q 0 0 0 rg BT 371.13 382.25 Td (.HinesSecurities.com/reits/hines-global-reit-2. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (Further) Tj ET Q q 0 0 0 rg BT 79.04 370.25 Td (, a copy of this ) Tj ET Q q 0 0 0 rg BT 140.14 370.25 Td (Annual Report on Form 10-K is located at the SEC) Tj ET Q q 0 0 0 rg BT 347.61 370.25 Td (s Public Reference Room at 100 F Street NE, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 358.25 Td (ashington, D.C. 20549. Information on the operation of the Public Reference Room can be obtained by calling the SEC at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (1-800-SEC-0330. Our filings will be available on our website as soon as reasonably practicable after we electronically file ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (such materials with the SEC. However) Tj ET Q q 0 0 0 rg BT 207.07 334.25 Td (, the information from our website is not incorporated by reference into this report.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (Item1A.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 91.71 310.25 Td (Risk Factors) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 286.25 Td (Y) Tj ET Q q 0 0 0 rg BT 76.64 286.25 Td (ou should car) Tj ET Q q 0 0 0 rg BT 131.27 286.25 Td (efully r) Tj ET Q q 0 0 0 rg BT 159.50 286.25 Td (ead and consider the risks described below) Tj ET Q q 0 0 0 rg BT 331.51 286.25 Td (, together with all other information in this r) Tj ET Q q 0 0 0 rg BT 509.20 286.25 Td (eport. If ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (certain of the following risks actually occur) Tj ET Q q 0 0 0 rg BT 223.37 274.25 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 49.50 262.25 Td (r) Tj ET Q q 0 0 0 rg BT 53.02 262.25 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 507.34 262.25 Td (ely) Tj ET Q q 0 0 0 rg BT 518.44 262.25 Td (. ) Tj ET Q q 0 0 0 rg BT 525.76 262.25 Td (As a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (r) Tj ET Q q 0 0 0 rg BT 53.02 250.25 Td (esult, the value of our common shar) Tj ET Q q 0 0 0 rg BT 196.24 250.25 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 49.50 238.25 Td (our common shar) Tj ET Q q 0 0 0 rg BT 119.69 238.25 Td (es.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (Investment Risks) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 190.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 190.25 Td (e have no prior operating history) Tj ET Q q 0 0 0 rg BT 210.57 190.25 Td (, and the prior performance of other Hines af) Tj ET Q q 0 0 0 rg BT 397.33 190.25 Td (filiated entities may not be a good ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 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 49.50 166.25 Td (compared to a real estate investment trust with an operating history) Tj ET Q q 0 0 0 rg BT 326.37 166.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 142.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 142.25 Td (e have no prior operating history) Tj ET Q q 0 0 0 rg BT 210.78 142.25 Td (. ) Tj ET Q q 0 0 0 rg BT 217.73 142.25 Td (As a result, an investment in our shares of common stock may entail more risk than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (the shares of common stock of a real estate investment trust with an operating history and we may not be able to achieve our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (investment objectives. In addition, our stockholders should not rely on the past performance of investments by other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (investment vehicles sponsored by Hines to predict our future results. Our investment strategy and key employees may dif) Tj ET Q q 0 0 0 rg BT 537.26 106.25 Td (fer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (from the investment strategies and key employees of our af) Tj ET Q q 0 0 0 rg BT 286.19 94.25 Td (filiates in the past, present and future.) 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 /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 of) Tj ET Q q 0 0 0 rg BT 90.74 742.25 Td (fer a share redemption program for stockholders seeking liquidity of their shares. However) Tj ET Q q 0 0 0 rg BT 466.86 742.25 Td (, there is no public ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (market for our common shares; therefore, it will be dif) Tj ET Q q 0 0 0 rg BT 274.32 730.25 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 49.50 718.25 Td (sell their shares, they will likely sell them at a substantial discount.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 694.25 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 429.88 694.25 Td (W) Tj ET Q q 0 0 0 rg BT 438.52 694.25 Td (e have a share redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 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 476.14 682.25 Td (ficult for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (stockholders to sell their shares of common stock promptly or at all. ) Tj ET Q q 0 0 0 rg BT 326.12 670.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 376.02 670.25 Td (, our charter contains restrictions on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 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 49.50 646.25 Td (are able to sell their shares, they may only be able to sell them at a substantial discount from the price they paid. ) Tj ET Q q 0 0 0 rg BT 502.52 646.25 Td (This may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (the result, in part, of the fact that the amount of funds available for investment are reduced by funds used to pay certain up-front ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (fees and expenses, including or) Tj ET Q q 0 0 0 rg BT 174.56 622.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 243.80 622.25 Td (fering costs, such as issuer costs, selling commissions, and the dealer manager ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (fee and acquisition fees and expenses in connection with our public of) Tj ET Q q 0 0 0 rg BT 330.07 610.25 Td (ferings. Unless our aggregate investments increase in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (value to compensate for these up-front fees and expenses, which may not occur) Tj ET Q q 0 0 0 rg BT 366.49 598.25 Td (, it is unlikely that our stockholders will be able ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (to sell their shares, without incurring a substantial loss. Stockholders may also experience substantial losses if we dispose of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (our assets or in connection with a liquidation event. ) Tj ET Q q 0 0 0 rg BT 260.66 574.25 Td (W) Tj ET Q q 0 0 0 rg BT 269.30 574.25 Td (e cannot assure stockholders that their shares will ever appreciate in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (value to equal the price they paid for their shares. ) Tj ET Q q 0 0 0 rg BT 252.02 562.25 Td (Thus, prospective stockholders should consider our common shares as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (illiquid and a 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 67.50 526.25 Td (This is a fixed price of) Tj ET Q q 0 0 0 rg BT 159.25 526.25 Td (fering and the of) Tj ET Q q 0 0 0 rg BT 228.24 526.25 Td (fering price of each class of our common stock was not established on an ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (independent basis; therefore, as it was arbitrarily determined, the fixed of) Tj ET Q q 0 0 0 rg BT 351.53 514.25 Td (fering price will not accurately represent the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (current value of our assets at any particular time and may be higher than the value of our assets per share of our common ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (stock at the time of the purchase.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 466.25 Td (This is a fixed price of) Tj ET Q q 0 0 0 rg BT 163.57 466.25 Td (fering, which means that the price for each class of our common stock in the of) Tj ET Q q 0 0 0 rg BT 479.95 466.25 Td (fering was fixed and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (does not vary based on the underlying value of our assets at any time. Our board of directors arbitrarily determined the of) Tj ET Q q 0 0 0 rg BT 537.22 454.25 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (price of each class of our common stock in its sole discretion. ) Tj ET Q q 0 0 0 rg BT 300.92 442.25 Td (W) Tj ET Q q 0 0 0 rg BT 309.56 442.25 Td (e do not intend to adjust the of) Tj ET Q q 0 0 0 rg BT 431.30 442.25 Td (fering price after we acquire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (assets and, therefore, the fixed of) Tj ET Q q 0 0 0 rg BT 181.77 430.25 Td (fering price established for each class of our common stock will not accurately represent the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (value of our assets and the actual value of our stockholders) Tj ET Q q 0 0 0 rg BT 288.12 418.25 Td ( investment may be substantially less than what they pay) Tj ET Q q 0 0 0 rg BT 514.37 418.25 Td (. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 406.25 Td (fering price may not be indicative of either the price our stockholders would receive if they sold their shares, the price at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (which shares of our common stock would trade if they were listed on a national securities exchange or if we were liquidated or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (dissolved. Similarly) Tj ET Q q 0 0 0 rg BT 131.35 382.25 Td (, the amount our stockholders may receive upon redemption of their shares, if they determine to participate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (in our share redemption program, may be less than the amount they paid for such shares, regardless of any increase in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (underlying value of any assets we own.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 334.25 Td (Because we are conducting an ongoing of) Tj ET Q q 0 0 0 rg BT 238.98 334.25 Td (fering, we are providing information about our net tangible book value per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (of our common stock. ) Tj ET Q q 0 0 0 rg BT 141.71 322.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.16 322.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.74 322.25 Td (, our net tangible book value per share was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.57 322.25 Td ($7.27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.07 322.25 Td ( for each class of our common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (stock, which is less than the of) Tj ET Q q 0 0 0 rg BT 171.80 310.25 Td (fering price for shares of each class of our common stock. Net tangible book value is a rough ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (approximation of value calculated simply as total book value of assets minus total liabilities \(all of which are adjusted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (noncontrolling interests\). It assumes that the value of real estate assets diminishes predictably over time as shown through the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (depreciation and amortization of real estate investments. Real estate values have historically risen or fallen with market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (conditions. Net tangible book value is used generally as a conservative measure of net worth that we do not believe reflects our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (estimated value per share. It is not intended to reflect the value of our assets upon an orderly liquidation of the Company in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (accordance with our investment objectives. However) Tj ET Q q 0 0 0 rg BT 263.74 238.25 Td (, net tangible book value does reflect certain dilution in value of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (common stock from the issue price as a result of \(i\) accumulated depreciation and amortization of real estate investments, \(ii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (the funding of distributions from sources other than our cash flow from operations, \(iii\) the substantial fees paid in connection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (with our public of) Tj ET Q q 0 0 0 rg BT 121.25 202.25 Td (fering, such as selling commissions and marketing fees, all or a portion of which have been reallowed by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (dealer manager to participating broker dealers and \(iv\) the fees and expenses paid to our advisor and its af) Tj ET Q q 0 0 0 rg BT 473.04 190.25 Td (filiates in connection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (with the selection, acquisition, management and sale of our investments.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 154.25 Td (The Of) Tj ET Q q 0 0 0 rg BT 96.48 154.25 Td (fering is a blind pool of) Tj ET Q q 0 0 0 rg BT 202.70 154.25 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 49.50 142.25 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 73.50 118.25 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 49.50 106.25 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 94.25 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 82.25 Td (must rely on our ) Tj ET Q q 0 0 0 rg BT 117.27 82.25 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 70.25 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 58.25 Td (advance of purchasing shares of our common stock, a blind pool of) Tj ET Q q 0 0 0 rg BT 327.01 58.25 Td (fering may entail more risk than other types of of) Tj ET Q q 0 0 0 rg BT 523.72 58.25 Td (ferings. ) 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 (This additional risk may hinder our stockholders) Tj ET Q q 0 0 0 rg BT 246.50 742.10 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 49.50 730.10 Td (diversification, risk-adjusted investment returns and other objectives.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 706.10 Td (The Of) Tj ET Q q 0 0 0 rg BT 96.48 706.10 Td (fering is a best ef) Tj ET Q q 0 0 0 rg BT 171.85 706.10 Td (forts of) Tj ET Q q 0 0 0 rg BT 206.39 706.10 Td (fering and if we are unable to raise substantial funds, we will be limited in the number ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (and type of investments we may make which could negatively impact an investment in shares of our common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 670.10 Td (The Of) Tj ET Q q 0 0 0 rg BT 104.92 670.10 Td (fering is being made on a best ef) Tj ET Q q 0 0 0 rg BT 239.41 670.10 Td (forts basis, whereby the broker dealers participating in the Of) Tj ET Q q 0 0 0 rg BT 489.14 670.10 Td (fering are only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (required to use their best ef) Tj ET Q q 0 0 0 rg BT 158.45 658.10 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 49.50 646.10 Td (of the shares of our common stock. ) Tj ET Q q 0 0 0 rg BT 194.75 646.10 Td (As a result, the amount of proceeds we raise in the Of) Tj ET Q q 0 0 0 rg BT 409.50 646.10 Td (fering may be substantially less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (the amount we would need to achieve a diversified industrial portfolio. Our inability to raise substantial funds would increase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (our fixed operating expenses as a percentage of gross income, and our financial condition and ability to make distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (could be adversely af) Tj ET Q q 0 0 0 rg BT 134.56 610.10 Td (fected. ) Tj ET Q q 0 0 0 rg BT 165.93 610.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.37 610.10 Td (March18, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.97 610.10 Td (, we have raised approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 610.10 Td ($133.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.04 610.10 Td ( from the sale of shares in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 598.10 Td (fering and have acquired three 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 49.50 586.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 586.10 Td (fered in the Of) Tj ET Q q 0 0 0 rg BT 116.05 586.10 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 49.50 574.10 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 49.50 562.10 Td (located and the types of investments that we make. ) Tj ET Q q 0 0 0 rg BT 257.50 562.10 Td (As a result, the likelihood increases that any single investment) Tj ET Q q 0 0 0 rg BT 509.66 562.10 Td (s poor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (performance would materially af) Tj ET Q q 0 0 0 rg BT 180.65 550.10 Td (fect our overall investment performance.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 526.10 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 73.50 502.10 Td (There is no assurance that distributions will continue to be authorized and paid. ) Tj ET Q q 0 0 0 rg BT 395.74 502.10 Td (W) Tj ET Q q 0 0 0 rg BT 404.37 502.10 Td (e cannot assure our stockholders that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (we will have suf) Tj ET Q q 0 0 0 rg BT 115.13 490.10 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 49.50 478.10 Td (addition, the distribution and stockholder servicing fees payable with respect to Class ) Tj ET Q q 0 0 0 rg BT 393.41 478.10 Td (T) Tj ET Q q 0 0 0 rg BT 399.33 478.10 Td ( Shares issued in the Of) Tj ET Q q 0 0 0 rg BT 493.86 478.10 Td (fering will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (reduce the amount of funds available for distribution with respect to all Class ) Tj ET Q q 0 0 0 rg BT 360.63 466.10 Td (T) Tj ET Q q 0 0 0 rg BT 366.56 466.10 Td ( Shares \(including Class ) Tj ET Q q 0 0 0 rg BT 465.81 466.10 Td (T) Tj ET Q q 0 0 0 rg BT 471.74 466.10 Td ( Shares issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (pursuant to the distribution reinvestment plan\). Should we fail for any reason to distribute at least 90% of our REIT) Tj ET Q q 0 0 0 rg BT 513.39 454.10 Td ( taxable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (income, we would not qualify for the favorable tax treatment accorded to REIT) Tj ET Q q 0 0 0 rg BT 366.18 442.10 Td (s.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 418.10 Td (e have and may continue to pay distributions from sources other than our cash flow from operations, including ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (advances, deferrals or waivers of fees from our ) Tj ET Q q 0 0 0 rg BT 244.94 406.10 Td (Advisor or af) Tj ET Q q 0 0 0 rg BT 298.65 406.10 Td (filiates, borrowings and/or proceeds of the Of) Tj ET Q q 0 0 0 rg BT 485.42 406.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 517.74 406.10 Td (W) Tj ET Q q 0 0 0 rg BT 525.89 406.10 Td (e have ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (not placed a cap on the amount of our distributions that may be paid from any of these sources. The use of sources other ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (than our cash flow from operations to fund distributions could adversely impact our ability to pay distributions in future ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (periods, decrease the amount of cash we have available for operations and new investments and/or potentially impact the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (value or result in dilution of our stockholders) Tj ET Q q 0 0 0 rg BT 239.07 358.10 Td ( investment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 334.10 Td (In our initial quarters of operations, and from time to time thereafter) Tj ET Q q 0 0 0 rg BT 344.29 334.10 Td (, our cash flow from operations may be insuf) Tj ET Q q 0 0 0 rg BT 523.78 334.10 Td (ficient to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (fund distributions to stockholders. Our or) Tj ET Q q 0 0 0 rg BT 217.36 322.10 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 49.50 310.10 Td (choose to pay distributions when we do not have suf) Tj ET Q q 0 0 0 rg BT 259.01 310.10 Td (ficient cash flow from operations to fund such distributions. ) Tj ET Q q 0 0 0 rg BT 503.50 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 512.14 310.10 Td (e may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (choose to use advances, deferrals or waivers of fees, if available, from our ) Tj ET Q q 0 0 0 rg BT 348.27 298.10 Td (Advisor or af) Tj ET Q q 0 0 0 rg BT 401.41 298.10 Td (filiates, borrowings and/or proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (the Of) Tj ET Q q 0 0 0 rg BT 74.59 286.10 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 434.79 286.10 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.12 286.10 Td ( of total distributions for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 274.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 274.10 Td (23%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.27 274.10 Td ( of total distributions for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.54 274.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.54 274.10 Td ( with cash flows from financing activities which includes of) Tj ET Q q 0 0 0 rg BT 467.02 274.10 Td (fering proceeds. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (addition, our ) Tj ET Q q 0 0 0 rg BT 102.55 262.10 Td (Advisor has agreed to waive the asset management fee otherwise payable to it pursuant to our ) Tj ET Q q 0 0 0 rg BT 479.66 262.10 Td (Advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (Agreement for the fourth quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.88 250.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.88 250.10 Td (, each of the quarters in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.23 250.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.23 250.10 Td (, and the first two quarters of 2016, to the extent that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (MFFO for each respective quarter) Tj ET Q q 0 0 0 rg BT 185.16 238.10 Td (, as disclosed in our ) Tj ET Q q 0 0 0 rg BT 266.26 238.10 Td (Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (applicable, amounts to less than 100% of the aggregate distributions declared for such quarter) Tj ET Q q 0 0 0 rg BT 423.83 226.10 Td (. Pursuant to this waiver ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (agreement, our ) Tj ET Q q 0 0 0 rg BT 111.42 214.10 Td (Advisor waived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.52 214.10 Td ($583,433) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.02 214.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.46 214.10 Td ($16,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.96 214.10 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 49.50 202.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 202.10 Td ( and December 31, 2014, respectively) Tj ET Q q 0 0 0 rg BT 278.77 202.10 Td (. ) Tj ET Q q 0 0 0 rg BT 286.09 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 294.72 202.10 Td (e have not placed a cap on the amount of our distributions that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (may be paid from sources other than cash flows from operations, including proceeds from our debt financings, proceeds from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (our public of) Tj ET Q q 0 0 0 rg BT 100.97 178.10 Td (ferings, cash advances by our ) Tj ET Q q 0 0 0 rg BT 220.94 178.10 Td (Advisor and cash resulting from a waiver or deferral of fees. However) Tj ET Q q 0 0 0 rg BT 504.04 178.10 Td (, our ) Tj ET Q q 0 0 0 rg BT 524.31 178.10 Td (Advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (and af) Tj ET Q q 0 0 0 rg BT 74.03 166.10 Td (filiates are under no obligation to advance funds to us or to defer or) Tj ET Q q 0 0 0 rg BT 343.26 166.10 Td (, subsequent to the second quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.11 166.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.11 166.10 Td (, to continue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (to waive fees in order to support our distributions. ) Tj ET Q q 0 0 0 rg BT 254.56 154.10 Td (When we pay distributions in excess of earnings and we use cash flows from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (financing activities, including of) Tj ET Q q 0 0 0 rg BT 179.29 142.10 Td (fering proceeds and borrowings, to fund distributions, then we have less funds available for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (operations and for acquiring properties and other investments, which could adversely impact our ability to pay distributions in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (future periods, may reduce our stockholders) Tj ET Q q 0 0 0 rg BT 228.14 118.10 Td ( overall return and may result in the dilution of our stockholders) Tj ET Q q 0 0 0 rg BT 487.06 118.10 Td ( investment. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (addition, our ) Tj ET Q q 0 0 0 rg BT 102.55 106.10 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 167.64 106.10 Td (filiates could choose to receive shares of our common stock or interests in the Operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (Partnership in lieu of cash or deferred fees or the repayment of advances to which they are entitled, and the issuance of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (securities may dilute our stockholders) Tj ET Q q 0 0 0 rg BT 203.72 82.10 Td ( interest in us. Furthermore, to the extent distributions exceed cash flow from operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (a stockholder) Tj ET Q q 0 0 0 rg BT 103.46 70.10 Td () Tj ET Q q 0 0 0 rg BT 106.24 70.10 Td (s basis in our stock will be reduced and, to the extent distributions exceed a stockholder) Tj ET Q q 0 0 0 rg BT 457.08 70.10 Td () Tj ET Q q 0 0 0 rg BT 459.86 70.10 Td (s basis, the stockholder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (may recognize capital gain.) 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 /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (Payments to the holders of the Special OP) Tj ET Q q 0 0 0 rg BT 240.18 742.25 Td ( Units or any other OP) Tj ET Q q 0 0 0 rg BT 333.43 742.25 Td ( Units will reduce cash available for distribution to our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 706.25 Td (An af) Tj ET Q q 0 0 0 rg BT 95.81 706.25 Td (filiate of Hines has received OP) Tj ET Q q 0 0 0 rg BT 222.89 706.25 Td ( Units in return for its $190,000 contribution to the Operation Partnership. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 114.59 694.25 Td (filiates may also choose to receive OP) Tj ET Q q 0 0 0 rg BT 266.95 694.25 Td ( Units in lieu of certain fees. ) Tj ET Q q 0 0 0 rg BT 385.34 694.25 Td (The holders of all OP) Tj ET Q q 0 0 0 rg BT 471.06 694.25 Td ( Units will be entitled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 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 545.70 682.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (Units will reduce the cash available for distribution to our stockholders. In addition, Hines Global REIT) Tj ET Q q 0 0 0 rg BT 467.56 670.25 Td ( II ) Tj ET Q q 0 0 0 rg BT 478.67 670.25 Td (Associates Limited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (Partnership, the holder of the Special OP) Tj ET Q q 0 0 0 rg BT 212.70 658.25 Td ( Units, will be entitled to cash distributions, under certain circumstances, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (from sales of our real estate investments, refinancings and other sources, which may reduce cash available for distribution to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (our stockholders and may negatively af) Tj ET Q q 0 0 0 rg BT 206.77 634.25 Td (fect the value of our shares of common stock. Furthermore, under certain circumstances ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (the Special OP) Tj ET Q q 0 0 0 rg BT 108.56 622.25 Td ( Units and any other OP) Tj ET Q q 0 0 0 rg BT 204.57 622.25 Td ( Units held by Hines or its af) Tj ET Q q 0 0 0 rg BT 319.65 622.25 Td (filiates are required to be repurchased, in cash at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (holder) Tj ET Q q 0 0 0 rg BT 75.42 610.25 Td () Tj ET Q q 0 0 0 rg BT 78.20 610.25 Td (s election and there may not be suf) Tj ET Q q 0 0 0 rg BT 217.14 610.25 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 49.50 598.25 Td (from operations, borrowings, or other sources to make the payment, which will reduce cash available for distribution to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (stockholders.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 562.25 Td (Our stockholders) Tj ET Q q 0 0 0 rg BT 140.93 562.25 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 49.50 550.25 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 49.50 538.25 Td (current market value of the shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 514.25 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 49.50 502.25 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 49.50 490.25 Td (are eligible to participate, and stockholders must generally hold their shares for a minimum of one year before they can ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (participate in our share redemption program. In addition, our share redemption program generally provides that only funds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (received from the prior month) Tj ET Q q 0 0 0 rg BT 172.79 466.25 Td (s distribution reinvestment plan may be used in the subsequent month to redeem shares. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (board of directors may terminate, suspend or amend the share redemption program upon 30 days) Tj ET Q q 0 0 0 rg BT 438.92 454.25 Td ( written notice without ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (stockholder approval. ) Tj ET Q q 0 0 0 rg BT 140.59 442.25 Td (As a result of these limitations, the redemption price our stockholders may receive upon any such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (redemption may not be indicative of the price our stockholders would receive if our shares were actively traded or if we were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (liquidated, and our stockholders should not assume that they will be able to sell all or any portion of their shares back to us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (pursuant to our share redemption program or to third parties at a price that reflects the then current market value of the shares or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (at all.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 370.25 Td (The actual value of shares that we redeem under our share redemption program may be substantially less than what we ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (pay) Tj ET Q q 0 0 0 rg BT 63.57 358.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 334.25 Td (Under our share redemption program, shares may be repurchased at varying prices depending on the number of years the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (shares have been held and whether the redemptions are sought upon a stockholder) Tj ET Q q 0 0 0 rg BT 378.10 322.25 Td () Tj ET Q q 0 0 0 rg BT 380.88 322.25 Td (s death or disability) Tj ET Q q 0 0 0 rg BT 458.83 322.25 Td (. ) Tj ET Q q 0 0 0 rg BT 465.77 322.25 Td (Although the of) Tj ET Q q 0 0 0 rg BT 528.92 322.25 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (price for the shares of each class of our common stock represents the most recent price at which most investors are willing to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (purchase such shares, it will not accurately represent the current value of our assets per share of our common stock at any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (particular time and may be higher or lower than the actual value of our assets per share at such time. ) Tj ET Q q 0 0 0 rg BT 454.91 286.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 504.25 286.25 Td (, when we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (repurchase shares of our common stock at the of) Tj ET Q q 0 0 0 rg BT 243.14 274.25 Td (fering price for such class of shares or at a percentage of the of) Tj ET Q q 0 0 0 rg BT 494.24 274.25 Td (fering price for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (such class of shares, the actual value of the shares that we repurchase may be less, and, if so, then the repurchase will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (dilutive to our remaining stockholders.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 226.25 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 510.38 226.25 Td (fering and, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (since there is no separate counsel for us and certain of our af) Tj ET Q q 0 0 0 rg BT 302.11 214.25 Td (filiates in connection with the Of) Tj ET Q q 0 0 0 rg BT 437.22 214.25 Td (fering, if a conflict of interest ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 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 73.50 178.25 Td (Because our ) Tj ET Q q 0 0 0 rg BT 124.59 178.25 Td (Advisor and our Dealer Manager are af) Tj ET Q q 0 0 0 rg BT 281.56 178.25 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 49.50 166.25 Td (independent due diligence review and investigation of the type normally performed by an unaf) Tj ET Q q 0 0 0 rg BT 427.81 166.25 Td (filiated, independent underwriter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (in connection with a securities of) Tj ET Q q 0 0 0 rg BT 181.78 154.25 Td (fering. In addition, Greenber) Tj ET Q q 0 0 0 rg BT 298.78 154.25 Td (g ) Tj ET Q q 0 0 0 rg BT 306.10 154.25 Td (T) Tj ET Q q 0 0 0 rg BT 311.85 154.25 Td (raurig, LLP) Tj ET Q q 0 0 0 rg BT 358.14 154.25 Td ( has acted as counsel to us, our ) Tj ET Q q 0 0 0 rg BT 483.39 154.25 Td (Advisor and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (Dealer Manager in connection with the Of) Tj ET Q q 0 0 0 rg BT 218.70 142.25 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 49.50 130.25 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 520.03 130.25 Td (There is a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 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 49.50 106.25 Td (responsibility of the legal profession, Greenber) Tj ET Q q 0 0 0 rg BT 237.60 106.25 Td (g ) Tj ET Q q 0 0 0 rg BT 244.92 106.25 Td (T) Tj ET Q q 0 0 0 rg BT 250.68 106.25 Td (raurig, LLP) Tj ET Q q 0 0 0 rg BT 296.96 106.25 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 94.25 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 94.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 454.84 94.25 Td (, our Dealer Manager or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (their af) Tj ET Q q 0 0 0 rg BT 77.91 82.25 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 70.25 Td (protected, which may result in us incurring additional fees and expenses. Moreover) Tj ET Q q 0 0 0 rg BT 382.05 70.25 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 58.25 Td (apparent, Greenber) Tj ET Q q 0 0 0 rg BT 125.94 58.25 Td (g ) Tj ET Q q 0 0 0 rg BT 133.26 58.25 Td (T) Tj ET Q q 0 0 0 rg BT 139.02 58.25 Td (raurig, LLP) Tj ET Q q 0 0 0 rg BT 185.30 58.25 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 58.25 Td (fect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (ability to meet our investment objectives.) 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 67.50 730.10 Td (The fees we pay in connection with the Of) Tj ET Q q 0 0 0 rg BT 240.09 730.10 Td (fering and the agreements entered into with Hines and its af) Tj ET Q q 0 0 0 rg BT 487.71 730.10 Td (filiates were not ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (determined on an arm) Tj ET Q q 0 0 0 rg BT 143.48 718.10 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 531.17 718.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 694.10 Td (The compensation paid to our ) Tj ET Q q 0 0 0 rg BT 194.86 694.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 226.68 694.10 Td (, Dealer Manager) Tj ET Q q 0 0 0 rg BT 295.97 694.10 Td (, Hines and other af) Tj ET Q q 0 0 0 rg BT 374.37 694.10 Td (filiates for services they provide us was not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (determined on an arm) Tj ET Q q 0 0 0 rg BT 139.74 682.10 Td (s-length basis. ) Tj ET Q q 0 0 0 rg BT 201.41 682.10 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 49.50 670.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 670.10 Td (filiates, including our ) Tj ET Q q 0 0 0 rg BT 144.85 670.10 Td (Advisor and us, were not negotiated at arm) Tj ET Q q 0 0 0 rg BT 319.80 670.10 Td (s-length. Such agreements include our ) Tj ET Q q 0 0 0 rg BT 477.26 670.10 Td (Advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (Agreement, our Dealer Manager ) Tj ET Q q 0 0 0 rg BT 181.38 658.10 Td (Agreement, and any property management and leasing agreements. ) Tj ET Q q 0 0 0 rg BT 454.90 658.10 Td (A) Tj ET Q q 0 0 0 rg BT 461.57 658.10 Td ( third party unaf) Tj ET Q q 0 0 0 rg BT 526.09 658.10 Td (filiated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 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 67.50 622.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 622.10 Td (e will pay substantial compensation to Hines, our ) Tj ET Q q 0 0 0 rg BT 280.59 622.10 Td (Advisor and their af) Tj ET Q q 0 0 0 rg BT 362.92 622.10 Td (filiates, which may be increased during the ) Tj ET Q BT /F4 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 59.87 610.10 Td (fering or future of) Tj ET Q q 0 0 0 rg BT 134.97 610.10 Td (ferings by our independent directors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 586.10 Td (Subject to limitations in our charter) Tj ET Q q 0 0 0 rg BT 215.01 586.10 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 49.50 574.10 Td (payments payable to Hines, our ) Tj ET Q q 0 0 0 rg BT 177.81 574.10 Td (Advisor and their af) Tj ET Q q 0 0 0 rg BT 257.88 574.10 Td (filiates may increase during the Of) Tj ET Q q 0 0 0 rg BT 396.26 574.10 Td (fering or in the future without ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (stockholder approval if such increase is approved by a majority of our independent directors.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 538.10 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 73.50 514.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 514.10 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 49.50 502.10 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 49.50 490.10 Td (relative to publicly traded companies.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 466.10 Td (Our stockholders may experience dilution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 442.10 Td (Our stockholders do not have preemptive rights. If we engage in a subsequent of) Tj ET Q q 0 0 0 rg BT 397.95 442.10 Td (fering of common shares or securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (convertible into common shares, issue shares pursuant to our distribution reinvestment plan or otherwise issue additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (shares, investors who purchase shares in the Of) Tj ET Q q 0 0 0 rg BT 238.71 418.10 Td (fering who do not participate in those other stock issuances will experience ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (dilution in their percentage ownership of our outstanding shares. Furthermore, stockholders may experience a dilution in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (value of their shares depending on the terms and pricing of any share issuances \(including the shares being sold in the Of) Tj ET Q q 0 0 0 rg BT 533.35 394.10 Td (fering\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (and the value of our assets at the time of issuance.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 358.10 Td (The prices of our Class ) Tj ET Q q 0 0 0 rg BT 165.19 358.10 Td (A) Tj ET Q q 0 0 0 rg BT 171.31 358.10 Td ( Shares and Class T Shares may each be adjusted to a price less than the price our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (stockholders paid for their shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 322.10 Td (The prices of our Class ) Tj ET Q q 0 0 0 rg BT 168.20 322.10 Td (A) Tj ET Q q 0 0 0 rg BT 174.87 322.10 Td ( Shares and Class ) Tj ET Q q 0 0 0 rg BT 247.46 322.10 Td (T) Tj ET Q q 0 0 0 rg BT 253.39 322.10 Td ( Shares may each be adjusted periodically in the discretion of our board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (directors and therefore any future adjustments may result in an of) Tj ET Q q 0 0 0 rg BT 310.90 310.10 Td (fering price lower than the price our stockholders paid for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (their shares.) 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 expect to disclose an estimated per share net asset value, or NA) Tj ET Q q 0 0 0 rg BT 341.27 274.10 Td (V) Tj ET Q q 0 0 0 rg BT 346.65 274.10 Td (, of each class of our common stock prior to the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (conclusion of the Of) Tj ET Q q 0 0 0 rg BT 133.49 262.10 Td (fering and the purchase price our stockholders pay for shares of our common stock in the Of) Tj ET Q q 0 0 0 rg BT 515.55 262.10 Td (fering may ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (be higher than such estimated per share NA) Tj ET Q q 0 0 0 rg BT 230.17 250.10 Td (V) Tj ET Q q 0 0 0 rg BT 235.55 250.10 Td (. The estimated per share NA) Tj ET Q q 0 0 0 rg BT 357.30 250.10 Td (V) Tj ET Q q 0 0 0 rg BT 363.79 250.10 Td ( may not be an accurate reflection of the fair ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (market value of our assets and liabilities and likely will not represent the amount of net proceeds that would result if we ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (were liquidated or dissolved.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 202.10 Td (Due to rule amendments that have been adopted by the Financial Industry Regulatory ) Tj ET Q q 0 0 0 rg BT 417.57 202.10 Td (Authority) Tj ET Q q 0 0 0 rg BT 455.81 202.10 Td (, or FINRA, and take ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 190.10 Td (fect on ) Tj ET Q q 0 0 0 rg BT 86.52 190.10 Td (April 1) Tj ET Q q 0 0 0 rg BT 114.76 190.10 Td (1, 2016 and due to contractual obligations in the selling agreements between our participating broker dealers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (and our Dealer Manager) Tj ET Q q 0 0 0 rg BT 146.55 178.10 Td (, we will be required to disclose an estimated per share NA) Tj ET Q q 0 0 0 rg BT 381.30 178.10 Td (V) Tj ET Q q 0 0 0 rg BT 388.34 178.10 Td ( of our Class ) Tj ET Q q 0 0 0 rg BT 441.12 178.10 Td (A) Tj ET Q q 0 0 0 rg BT 447.79 178.10 Td ( Shares and Class ) Tj ET Q q 0 0 0 rg BT 520.37 178.10 Td (T) Tj ET Q q 0 0 0 rg BT 526.30 178.10 Td ( Shares. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 166.10 Td (e presently expect to provide an estimated per share NA) Tj ET Q q 0 0 0 rg BT 280.93 166.10 Td (V) Tj ET Q q 0 0 0 rg BT 287.97 166.10 Td ( of each class of our common stock no later than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.75 166.10 Td (April29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.36 166.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 98.84 154.10 Td (, the customer account statements that we issue to our stockholders after the rule amendments take ef) Tj ET Q q 0 0 0 rg BT 502.69 154.10 Td (fect will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (reflect the estimated per share NA) Tj ET Q q 0 0 0 rg BT 185.09 142.10 Td (V) Tj ET Q q 0 0 0 rg BT 191.02 142.10 Td (. In addition, after the amended rules take ef) Tj ET Q q 0 0 0 rg BT 367.43 142.10 Td (fect, we expect to use the estimated per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (NA) Tj ET Q q 0 0 0 rg BT 62.65 130.10 Td (V) Tj ET Q q 0 0 0 rg BT 69.70 130.10 Td ( as the deemed estimated per share value for purposes of reports to fiduciaries of retirement plans. Because we have used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (a portion of the proceeds from the Of) Tj ET Q q 0 0 0 rg BT 198.44 118.10 Td (fering to pay selling commissions, dealer manager fees and or) Tj ET Q q 0 0 0 rg BT 445.96 118.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 515.19 118.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (expenses, which reduce the amount of funds available for investment, unless our aggregate investments increase in value to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (compensate for these up-front fees and expenses, it is likely that the estimated per share NA) Tj ET Q q 0 0 0 rg BT 415.87 94.10 Td (V) Tj ET Q q 0 0 0 rg BT 421.80 94.10 Td (, which will be the value shown ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (on stockholders) Tj ET Q q 0 0 0 rg BT 115.13 82.10 Td ( account statements, will be lower than the purchase price paid by our stockholders in the Of) Tj ET Q q 0 0 0 rg BT 485.12 82.10 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 70.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 58.10 Td (Further) Tj ET Q q 0 0 0 rg BT 102.54 58.10 Td (, in connection with the determination of the estimated per share NA) Tj ET Q q 0 0 0 rg BT 375.61 58.10 Td (V) Tj ET Q q 0 0 0 rg BT 382.65 58.10 Td ( of each class of our common stock, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (board of directors may determine to modify the of) Tj ET Q q 0 0 0 rg BT 249.81 46.10 Td (fering prices for each class, including the prices at which the shares of each ) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (class are of) Tj ET Q q 0 0 0 rg BT 94.29 742.10 Td (fered pursuant to our distribution reinvestment plan, but the of) Tj ET Q q 0 0 0 rg BT 343.50 742.10 Td (fering price may be higher than the estimated per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (share NA) Tj ET Q q 0 0 0 rg BT 86.25 730.10 Td (V) Tj ET Q q 0 0 0 rg BT 93.29 730.10 Td ( for such class. ) Tj ET Q q 0 0 0 rg BT 157.17 730.10 Td (Any estimated per share NA) Tj ET Q q 0 0 0 rg BT 269.73 730.10 Td (V) Tj ET Q q 0 0 0 rg BT 276.78 730.10 Td ( that we disclose may not be an accurate reflection of the fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (our assets and liabilities in accordance with accounting principles generally accepted in the United States of ) Tj ET Q q 0 0 0 rg BT 482.69 718.10 Td (America ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (\(GAAP\), may not reflect the price at which we would be able to sell all or substantially all of our assets or the outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (shares of our common stock in an arm) Tj ET Q q 0 0 0 rg BT 205.30 694.10 Td (s-length transaction, may not represent the value that stockholders could realize upon a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (sale of the company or upon the liquidation of our assets and settlement of our liabilities, and may not be indicative of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (prices at which Class ) Tj ET Q q 0 0 0 rg BT 136.15 670.10 Td (A) Tj ET Q q 0 0 0 rg BT 142.82 670.10 Td ( Shares or Class ) Tj ET Q q 0 0 0 rg BT 209.30 670.10 Td (T) Tj ET Q q 0 0 0 rg BT 215.23 670.10 Td ( Shares would trade if they were listed on a national securities exchange. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (any estimated per share NA) Tj ET Q q 0 0 0 rg BT 159.28 658.10 Td (V) Tj ET Q q 0 0 0 rg BT 166.32 658.10 Td ( that we disclose may not be the equivalent of the disclosure of a market price by an open-ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (real estate fund.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 622.10 Td (The methodology used to determine the estimated per share NA) Tj ET Q q 0 0 0 rg BT 327.97 622.10 Td (V) Tj ET Q q 0 0 0 rg BT 335.01 622.10 Td ( of our common stock may be based upon assumptions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (estimates and judgments that may not be accurate or complete, such that, if dif) Tj ET Q q 0 0 0 rg BT 363.39 610.10 Td (ferent property-specific and general real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (and capital market assumptions, estimates and judgments were used, it could result in an estimated per share NA) Tj ET Q q 0 0 0 rg BT 498.92 598.10 Td (V) Tj ET Q q 0 0 0 rg BT 505.96 598.10 Td ( that is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (significantly dif) Tj ET Q q 0 0 0 rg BT 112.92 586.10 Td (ferent. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (Risks Related to Our) Tj ET Q q 0 0 0 rg BT 139.04 562.10 Td ( Business in General) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 538.10 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 524.53 538.10 Td (fering ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 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 73.50 502.10 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 49.50 490.10 Td (ability to raise suf) Tj ET Q q 0 0 0 rg BT 121.25 490.10 Td (ficient funds for such acquisitions and investments. ) Tj ET Q q 0 0 0 rg BT 331.31 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 339.94 490.10 Td (e may be substantially delayed in making investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (due to delays in:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 454.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 454.10 Td (the sale of our common shares,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 442.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 442.10 Td (obtaining debt financing,) 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 (negotiating or obtaining the necessary purchase documentation,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 418.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 418.10 Td (locating suitable investments or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 406.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 406.10 Td (other factors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 382.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 382.10 Td (e expect to invest proceeds we receive from the Of) Tj ET Q q 0 0 0 rg BT 284.92 382.10 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 49.50 370.10 Td (funds in our operations. ) Tj ET Q q 0 0 0 rg BT 149.30 370.10 Td (W) Tj ET Q q 0 0 0 rg BT 157.94 370.10 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 545.49 370.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (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 49.50 346.10 Td (expenses in connection with the Of) Tj ET Q q 0 0 0 rg BT 190.12 346.10 Td (fering and distributions. ) Tj ET Q q 0 0 0 rg BT 290.75 346.10 Td (Therefore, delays in investing proceeds we raise from the Of) Tj ET Q q 0 0 0 rg BT 533.26 346.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 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 67.50 310.10 Td (The U.S. Department of Labor) Tj ET Q q 0 0 0 rg BT 193.06 310.10 Td (, or DOL, has proposed to amend the definition of fiduciary under the Employee ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (Retirement Income Security ) Tj ET Q q 0 0 0 rg BT 167.18 298.10 Td (Act of 1974, as amended, or ERISA, and the Code, which could impact our ability to raise ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (significant additional capital in the Of) Tj ET Q q 0 0 0 rg BT 206.83 286.10 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 262.10 Td (The DOL) Tj ET Q q 0 0 0 rg BT 110.23 262.10 Td ( has proposed to amend the definition of fiduciary under ERISA) Tj ET Q q 0 0 0 rg BT 375.16 262.10 Td ( and the Code. ) Tj ET Q q 0 0 0 rg BT 435.24 262.10 Td (The proposed amendment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (would broaden the definition of fiduciary and make a number of changes to the prohibited transaction exemptions relating to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (investments by employee benefit plans subject to ) Tj ET Q q 0 0 0 rg BT 248.44 238.10 Td (T) Tj ET Q q 0 0 0 rg BT 254.20 238.10 Td (itle I of ERISA) Tj ET Q q 0 0 0 rg BT 314.47 238.10 Td ( or retirement plans or accounts subject to Section 4975 of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (Code \(including individual retirement accounts\). ) Tj ET Q q 0 0 0 rg BT 246.49 226.10 Td (The DOL) Tj ET Q q 0 0 0 rg BT 284.71 226.10 Td ( has said that the proposed changes will become ef) Tj ET Q q 0 0 0 rg BT 486.97 226.10 Td (fective eight ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (months after the regulations are finalized and will not be implemented retroactively) Tj ET Q q 0 0 0 rg BT 382.90 214.10 Td (. If the proposed amendment is finalized and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (takes ef) Tj ET Q q 0 0 0 rg BT 80.13 202.10 Td (fect as contemplated in the proposal from the DOL, it could hinder our ability to raise significant additional capital, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (sales to individual retirement accounts and other ERISA) Tj ET Q q 0 0 0 rg BT 274.17 190.10 Td ( plans that involve the payment of a commission to the broker dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (for such sales may not be permitted.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 154.10 Td (A) Tj ET Q q 0 0 0 rg BT 73.62 154.10 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 526.23 154.10 Td (fect our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 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 73.50 118.10 Td (If disruptions in the capital and credit markets were to occur again, as have been experienced during recent years, they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (could adversely af) Tj ET Q q 0 0 0 rg BT 122.62 106.10 Td (fect our ability to obtain loans, credit facilities, debt financing and other financing, or) Tj ET Q q 0 0 0 rg BT 463.22 106.10 Td (, when available, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (obtain such financing on reasonable terms, which could negatively impact our ability to implement our investment strategy) Tj ET Q q 0 0 0 rg BT 541.22 94.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 70.10 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 70.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (changing or increased regulation, reduced alternatives or additional failures of significant financial institutions, our access to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (liquidity could be significantly impacted. Prolonged disruptions could result in us taking measures to conserve cash until the ) 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 (markets stabilize or until alternative credit arrangements or other funding for our business needs could be arranged. Such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (measures could include deferring investments, reducing or eliminating the number of shares redeemed under our share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (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 73.50 694.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 694.10 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 49.50 682.10 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 49.50 670.10 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 49.50 658.10 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 49.50 646.10 Td (expenditures, or reduced rental rates to maintain occupancies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 622.10 Td (Our operations could be negatively af) Tj ET Q q 0 0 0 rg BT 224.10 622.10 Td (fected to a greater extent if an economic downturn occurs again, is prolonged or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (becomes more severe, which could significantly harm our revenues, results of operations, financial condition, liquidity) Tj ET Q q 0 0 0 rg BT 523.72 610.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (business prospects and our ability to make distributions to our stockholders and may result in a decrease in the value of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (stockholders) Tj ET Q q 0 0 0 rg BT 102.63 586.10 Td ( investment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 562.10 Td (Y) Tj ET Q q 0 0 0 rg BT 73.06 562.10 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 73.50 538.10 Td (Until we invest the proceeds of the Of) Tj ET Q q 0 0 0 rg BT 225.78 538.10 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 49.50 526.10 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 49.50 514.10 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 49.50 502.10 Td (could result in a loss of some or all of these funds. In particular) Tj ET Q q 0 0 0 rg BT 304.31 502.10 Td (, money market funds may experience intense redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (pressure and have dif) Tj ET Q q 0 0 0 rg BT 134.56 490.10 Td (ficulty satisfying redemption requests. ) Tj ET Q q 0 0 0 rg BT 292.31 490.10 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 49.50 478.10 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 67.50 454.10 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 49.50 442.10 Td (distributions and make additional investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 418.10 Td (The Federal Deposit Insurance Corporation only insures amounts up to $250,000 per depositor) Tj ET Q q 0 0 0 rg BT 452.04 418.10 Td (. It is likely that we will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 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 49.50 394.10 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 49.50 382.10 Td (over federally insured levels. ) Tj ET Q q 0 0 0 rg BT 170.38 382.10 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 49.50 370.10 Td (and could result in a decline in the value of our stockholders) Tj ET Q q 0 0 0 rg BT 293.41 370.10 Td ( investment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 346.10 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 49.50 334.10 Td (have suf) Tj ET Q q 0 0 0 rg BT 84.04 334.10 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 73.50 310.10 Td (In order to qualify for taxation as a REIT) Tj ET Q q 0 0 0 rg BT 237.15 310.10 Td (, we are required to distribute to our stockholders at least 90% of our annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (ordinary taxable income to maintain such qualification. ) Tj ET Q q 0 0 0 rg BT 275.64 298.10 Td (This requirement limits our ability to retain income or cash flow from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (operations to finance the acquisition of new investments. ) Tj ET Q q 0 0 0 rg BT 282.04 286.10 Td (W) Tj ET Q q 0 0 0 rg BT 290.68 286.10 Td (e will explore acquisition opportunities from time to time with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (intention of expanding our operations and increasing our profitability) Tj ET Q q 0 0 0 rg BT 326.00 274.10 Td (. ) Tj ET Q q 0 0 0 rg BT 333.32 274.10 Td (W) Tj ET Q q 0 0 0 rg BT 341.96 274.10 Td (e anticipate that we will use debt and equity financing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (for such acquisitions because of our inability to retain significant earnings. Consequently) Tj ET Q q 0 0 0 rg BT 407.38 262.10 Td (, if we cannot obtain debt or equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (financing on acceptable terms, our ability to acquire new investments and expand our operations will be adversely af) Tj ET Q q 0 0 0 rg BT 516.38 250.10 Td (fected.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 226.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 226.10 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 49.50 214.10 Td (requirements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 190.10 Td (In order to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 188.28 190.10 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 49.50 178.10 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 429.03 178.10 Td (, by which certain distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 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 49.50 154.10 Td (year) Tj ET Q q 0 0 0 rg BT 66.31 154.10 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 73.50 130.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 130.10 Td (e expect our income, if any) Tj ET Q q 0 0 0 rg BT 190.33 130.10 Td (, to consist almost solely of our share of the Operating Partnership) Tj ET Q q 0 0 0 rg BT 458.06 130.10 Td (s income, and the cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 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 49.50 106.10 Td (Operating Partnership. ) Tj ET Q q 0 0 0 rg BT 144.48 106.10 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 94.10 Td (made by the Operating Partnership. However) Tj ET Q q 0 0 0 rg BT 232.65 94.10 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 70.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 70.10 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 58.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 58.10 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 46.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 46.10 Td (the Operating Partnership) Tj ET Q q 0 0 0 rg BT 190.63 46.10 Td (s financial condition;) 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 67.10 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 742.10 Td (the Operating Partnership) Tj ET Q q 0 0 0 rg BT 190.63 742.10 Td (s capital expenditure requirements and reserves therefor; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 730.10 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 85.10 718.10 Td (REIT) Tj ET Q q 0 0 0 rg BT 106.57 718.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 694.10 Td (Dif) Tj ET Q q 0 0 0 rg BT 86.65 694.10 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 49.50 682.10 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 462.52 682.10 Td (fect of nondeductible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 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 49.50 658.10 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 73.50 634.10 Td (In view of the foregoing, we may be unable to meet the REIT) Tj ET Q q 0 0 0 rg BT 319.63 634.10 Td ( minimum distribution requirements and/or avoid the 4% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 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 462.22 622.10 Td ( minimum distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 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 49.50 598.10 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 67.50 574.10 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 49.50 562.10 Td (limit our ability to make distributions to our stockholders, to replace our ) Tj ET Q q 0 0 0 rg BT 348.33 562.10 Td (Advisor or to otherwise achieve our investment ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (objectives.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 526.10 Td (When providing financing, a lender may impose restrictions on us that af) Tj ET Q q 0 0 0 rg BT 365.46 526.10 Td (fect our distribution and operating policies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 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 49.50 502.10 Td (mortgage property) Tj ET Q q 0 0 0 rg BT 122.99 502.10 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 49.50 490.10 Td (of our loan documents may deter us from replacing our ) Tj ET Q q 0 0 0 rg BT 272.21 490.10 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 49.50 478.10 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 534.76 478.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (These or other limitations may adversely af) Tj ET Q q 0 0 0 rg BT 223.15 466.10 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 67.50 442.10 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 49.50 430.10 Td (impact our performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 406.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 406.10 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 49.50 394.10 Td (partnerships, co-tenancies or other co-ownership arrangements with Hines af) Tj ET Q q 0 0 0 rg BT 356.71 394.10 Td (filiates, the sellers of the properties, developers or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 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 49.50 370.10 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 67.10 346.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 346.10 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 67.10 334.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 334.10 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 85.10 322.10 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 85.10 310.10 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 67.10 298.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 298.10 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 67.10 286.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 286.10 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 85.10 274.10 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 85.10 262.10 Td (maintaining our qualification as a REIT) Tj ET Q q 0 0 0 rg BT 243.48 262.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 238.10 Td (Actions by a co-venturer) Tj ET Q q 0 0 0 rg BT 172.23 238.10 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 49.50 226.10 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 49.50 214.10 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 49.50 202.10 Td (joint venture.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 178.10 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 409.37 178.10 Td (, we may be unable to finance such a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 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 49.50 154.10 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 393.97 154.10 Td (ficient cash, available borrowing capacity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 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 49.50 130.10 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 49.50 118.10 Td (interest. Finally) Tj ET Q q 0 0 0 rg BT 114.12 118.10 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 49.50 106.10 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 368.99 106.10 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 94.10 Td (adversely impacted by such right. Joint ownership arrangements with Hines af) Tj ET Q q 0 0 0 rg BT 365.35 94.10 Td (filiates may also entail conflicts of interest.) 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 (If we invest in a limited partnership as a general partner) Tj ET Q q 0 0 0 rg BT 299.19 742.25 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 73.50 718.25 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 49.50 706.25 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 377.43 706.25 Td (. ) Tj ET Q q 0 0 0 rg BT 384.38 706.25 Td (As a general partner) Tj ET Q q 0 0 0 rg BT 464.77 706.25 Td (, we could be liable for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (all the liabilities of such partnership. ) Tj ET Q q 0 0 0 rg BT 200.02 694.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 249.92 694.25 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 49.50 682.25 Td (general partner interest. ) Tj ET Q q 0 0 0 rg BT 148.62 682.25 Td (As a non-managing general partner) Tj ET Q q 0 0 0 rg BT 289.28 682.25 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 49.50 670.25 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 556.84 670.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 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 49.50 646.25 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 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 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 49.50 610.25 Td (and inef) Tj ET Q q 0 0 0 rg BT 83.49 610.25 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 73.50 586.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 586.25 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 49.50 574.25 Td (manage or mitigate our risk of exposure to the ef) Tj ET Q q 0 0 0 rg BT 244.53 574.25 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 49.50 562.25 Td (Similarly) Tj ET Q q 0 0 0 rg BT 86.07 562.25 Td (, we may enter into interest rate swaps and caps, or similar hedging or derivative transactions or arrangements, in order ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (to manage or mitigate our risk of exposure to the ef) Tj ET Q q 0 0 0 rg BT 254.81 550.25 Td (fects of interest rate changes due to variable interest rate debt that we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (have.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 514.25 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 514.25 Td (e are dif) Tj ET Q q 0 0 0 rg BT 109.35 514.25 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 49.50 502.25 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 49.50 490.25 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 73.50 466.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 466.25 Td (e are Hines) Tj ET Q q 0 0 0 rg BT 129.70 466.25 Td ( third publicly-of) Tj ET Q q 0 0 0 rg BT 197.84 466.25 Td (fered real estate investment vehicle. ) Tj ET Q q 0 0 0 rg BT 346.20 466.25 Td (W) Tj ET Q q 0 0 0 rg BT 354.84 466.25 Td (e collectively refer to real estate joint ventures, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (funds and programs as real estate investment vehicles. ) Tj ET Q q 0 0 0 rg BT 271.10 454.25 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 49.50 442.25 Td (its af) Tj ET Q q 0 0 0 rg BT 69.04 442.25 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 49.50 430.25 Td (associated with the Of) Tj ET Q q 0 0 0 rg BT 138.46 430.25 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 49.50 418.25 Td (securities laws and tax and other regulations applicable to REIT) Tj ET Q q 0 0 0 rg BT 304.55 418.25 Td (s.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 394.25 Td (The past performance of other investment vehicles sponsored by Hines or its af) Tj ET Q q 0 0 0 rg BT 390.45 394.25 Td (filiates may not be indicative of our future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 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 479.02 382.25 Td (, which may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 370.25 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 49.50 358.25 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 49.50 346.25 Td (real estate investments that have been made by Hines) Tj ET Q q 0 0 0 rg BT 265.34 346.25 Td ( other investment vehicles have consisted of acquisitions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (development of of) Tj ET Q q 0 0 0 rg BT 122.63 334.25 Td (fice or industrial properties or land. ) Tj ET Q q 0 0 0 rg BT 269.07 334.25 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 49.50 322.25 Td (investments in which Hines has limited experience. In addition, a significant portion of Hines) Tj ET Q q 0 0 0 rg BT 428.67 322.25 Td ( other programs and investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (involve development projects. ) Tj ET Q q 0 0 0 rg BT 174.75 310.25 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 49.50 298.25 Td (portion of the proceeds from the Of) Tj ET Q q 0 0 0 rg BT 191.50 298.25 Td (fering will be invested in development projects. ) Tj ET Q q 0 0 0 rg BT 386.73 298.25 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 49.50 286.25 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 497.27 286.25 Td (filiates to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 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 67.50 250.25 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 49.50 238.25 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 49.50 226.25 Td (may experience similar adverse developments. ) Tj ET Q q 0 0 0 rg BT 241.31 226.25 Td (Adverse changes in af) Tj ET Q q 0 0 0 rg BT 331.96 226.25 Td (filiated programs could also adversely af) Tj ET Q q 0 0 0 rg BT 498.70 226.25 Td (fect our ability ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (to raise capital. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 190.25 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 49.50 178.25 Td (its af) Tj ET Q q 0 0 0 rg BT 69.04 178.25 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 49.50 166.25 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 49.50 154.25 Td (board of directors and our ) Tj ET Q q 0 0 0 rg BT 155.30 154.25 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 49.50 142.25 Td (with the proceeds of the Of) Tj ET Q q 0 0 0 rg BT 158.45 142.25 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 49.50 130.25 Td (economic or financial data concerning our investments. ) Tj ET Q q 0 0 0 rg BT 276.18 130.25 Td (W) Tj ET Q q 0 0 0 rg BT 284.82 130.25 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 49.50 118.25 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 94.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 94.25 Td (e may not be able to retain our key employees. ) Tj ET Q q 0 0 0 rg BT 273.56 94.25 Td (T) Tj ET Q q 0 0 0 rg BT 278.97 94.25 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 82.25 Td (for key employees that depart from the company) Tj ET Q q 0 0 0 rg BT 243.50 82.25 Td (, our results of operations may be adversely impacted. Our of) Tj ET Q q 0 0 0 rg BT 490.75 82.25 Td (ficers and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (management of our ) Tj ET Q q 0 0 0 rg BT 129.20 70.25 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 58.25 Td (are distracted by these other activities or suf) Tj ET Q q 0 0 0 rg BT 225.64 58.25 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 46.25 Td (unrelated to us, the ability of Hines and its af) Tj ET Q q 0 0 0 rg BT 229.28 46.25 Td (filiates to allocate time and/or resources to our operations may be adversely ) 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 (af) Tj ET Q q 0 0 0 rg BT 57.09 742.10 Td (fected. If Hines is unable to allocate suf) Tj ET Q q 0 0 0 rg BT 218.24 742.10 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 49.50 730.10 Td (operations would be adversely impacted. ) Tj ET Q q 0 0 0 rg BT 217.88 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 226.52 730.10 Td (e will not provide key-man life insurance policies for any of Hines) Tj ET Q q 0 0 0 rg BT 495.41 730.10 Td ( key employees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 706.10 Td (Certain other investment vehicles sponsored by Hines have experienced adverse developments in recent years. ) Tj ET Q q 0 0 0 rg BT 520.01 706.10 Td (Although ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (it was re-opened with respect to ordinary redemption requests in ) Tj ET Q q 0 0 0 rg BT 308.87 694.10 Td (April 2013, Hines REIT) Tj ET Q q 0 0 0 rg BT 405.34 694.10 Td ( suspended its share redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (program, except with respect to redemptions in connection with the death or disability of a stockholder in December 2009. ) Tj ET Q q 0 0 0 rg BT 544.36 682.10 Td (As ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (of December 31, 2015, shares redeemed pursuant to the share redemption program were redeemed at $5.45 per share, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (respect to ordinary redemption requests, and with respect to requests in connection with the death or disability of a stockholder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (commencing with redemptions made on January 1, 2016, shares were redeemed at $6.65 per share. In May 201) Tj ET Q q 0 0 0 rg BT 496.77 646.10 Td (1, November ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (2012, ) Tj ET Q q 0 0 0 rg BT 73.95 634.10 Td (April 2013, November 2013, December 2014 and September 2015,Hines REIT) Tj ET Q q 0 0 0 rg BT 393.88 634.10 Td (s board of directors determined an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (estimated per share net asset value, or NA) Tj ET Q q 0 0 0 rg BT 216.48 622.10 Td (V) Tj ET Q q 0 0 0 rg BT 223.52 622.10 Td ( of $7.78, $7.61, $6.75, $6.40, $6.50, and $6.65, respectively) Tj ET Q q 0 0 0 rg BT 466.45 622.10 Td (, each of which was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (lower than the most recent primary of) Tj ET Q q 0 0 0 rg BT 200.38 610.10 Td (fering price of $10.08 per share. ) Tj ET Q q 0 0 0 rg BT 333.76 610.10 Td (The reduction in the estimated NA) Tj ET Q q 0 0 0 rg BT 471.04 610.10 Td (V) Tj ET Q q 0 0 0 rg BT 478.08 610.10 Td ( between November ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (2012 and ) Tj ET Q q 0 0 0 rg BT 88.39 598.10 Td (April 2013 was due to Hines REIT) Tj ET Q q 0 0 0 rg BT 230.59 598.10 Td (s payment to its stockholders of special distributions in excess of $0.80 per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (\(all of which represented a return of capital\). In addition, Hines REIT) Tj ET Q q 0 0 0 rg BT 329.77 586.10 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 49.50 574.10 Td (decreased the rate in ) Tj ET Q q 0 0 0 rg BT 133.34 574.10 Td (April 2013. ) Tj ET Q q 0 0 0 rg BT 184.27 574.10 Td (The board of directors of Hines Global I, another public investment vehicle sponsored by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (Hines, determined an estimated per share NA) Tj ET Q q 0 0 0 rg BT 230.09 562.10 Td (V) Tj ET Q q 0 0 0 rg BT 237.13 562.10 Td ( of $10.24, $9.44, $8.90 and $8.78, respectively) Tj ET Q q 0 0 0 rg BT 427.56 562.10 Td (, as of December 31, 2015, 2014, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (2013, 2012, each of which was lower than the most recent primary of) Tj ET Q q 0 0 0 rg BT 327.01 550.10 Td (fering price of $10.40 per share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 526.10 Td (In addition to Hines REIT) Tj ET Q q 0 0 0 rg BT 177.19 526.10 Td (, Hines Global I, 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 49.50 514.10 Td (privately-of) Tj ET Q q 0 0 0 rg BT 96.52 514.10 Td (fered programs in the past ten years. Several of Hines) Tj ET Q q 0 0 0 rg BT 315.98 514.10 Td ( privately-of) Tj ET Q q 0 0 0 rg BT 365.50 514.10 Td (fered programs have experienced adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (economic developments in recent years due to the global financial crisis and deteriorating economic conditions in several ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (European and South ) Tj ET Q q 0 0 0 rg BT 132.54 490.10 Td (American countries, Mexico and several U.S. markets. ) Tj ET Q q 0 0 0 rg BT 356.18 490.10 Td (The adverse market conditions may cause these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (programs to alter their investment strategy) Tj ET Q q 0 0 0 rg BT 218.52 478.10 Td (, generate returns lower than originally expected, or ultimately incur losses. ) Tj ET Q q 0 0 0 rg BT 525.19 478.10 Td (There is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (a risk that we may experience similar adverse developments, as an investment vehicle sponsored by Hines.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 442.10 Td (Adverse results in the other non-traded REIT) Tj ET Q q 0 0 0 rg BT 251.80 442.10 Td (s on the Hines platform have the potential to af) Tj ET Q q 0 0 0 rg BT 439.63 442.10 Td (fect Hines) Tj ET Q q 0 0 0 rg BT 483.03 442.10 Td ( and our reputation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (among financial advisors and investors, which could af) Tj ET Q q 0 0 0 rg BT 269.82 430.10 Td (fect our ability to raise capital.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 406.10 Td (T) Tj ET Q q 0 0 0 rg BT 72.69 406.10 Td (errorist attacks and other acts of violence, civilian unrest or war may af) Tj ET Q q 0 0 0 rg BT 366.67 406.10 Td (fect the markets in which we operate, our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (business and our profitability) Tj ET Q q 0 0 0 rg BT 169.99 394.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 370.10 Td (T) Tj ET Q q 0 0 0 rg BT 78.91 370.10 Td (errorist attacks and other acts of violence, civilian unrest or war may negatively af) Tj ET Q q 0 0 0 rg BT 407.49 370.10 Td (fect our operations and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (stockholders) Tj ET Q q 0 0 0 rg BT 102.63 358.10 Td ( investment in our shares. ) Tj ET Q q 0 0 0 rg BT 209.93 358.10 Td (W) Tj ET Q q 0 0 0 rg BT 218.57 358.10 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 49.50 346.10 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 49.50 334.10 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 49.50 322.10 Td (negative ef) Tj ET Q q 0 0 0 rg BT 93.46 322.10 Td (fect on our business. ) Tj ET Q q 0 0 0 rg BT 180.49 322.10 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 49.50 310.10 Td (increased security costs. ) Tj ET Q q 0 0 0 rg BT 151.23 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 159.87 310.10 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 49.50 298.10 Td (may not be available on terms that are economically feasible. Further) Tj ET Q q 0 0 0 rg BT 328.44 298.10 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 49.50 286.10 Td (able to obtain suf) Tj ET Q q 0 0 0 rg BT 118.47 286.10 Td (ficient coverage to fund any losses we may incur) Tj ET Q q 0 0 0 rg BT 313.41 286.10 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 49.50 274.10 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 49.50 262.10 Td (against property and casualty claims. ) Tj ET Q q 0 0 0 rg BT 201.96 262.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 251.86 262.10 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 49.50 250.10 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 73.50 226.10 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 49.50 214.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.13 214.10 Td (fect on our business or our stockholders) Tj ET Q q 0 0 0 rg BT 252.13 214.10 Td ( investment. More generally) Tj ET Q q 0 0 0 rg BT 366.72 214.10 Td (, any terrorist attack, other act of violence or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (war) Tj ET Q q 0 0 0 rg BT 64.09 202.10 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 49.50 190.10 Td (markets and economy) Tj ET Q q 0 0 0 rg BT 136.60 190.10 Td (. ) Tj ET Q q 0 0 0 rg BT 143.92 190.10 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 49.50 178.10 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 49.50 166.10 Td (particularly vulnerable to uncertainty in the local economy) Tj ET Q q 0 0 0 rg BT 283.48 166.10 Td (. Increased economic volatility could adversely af) Tj ET Q q 0 0 0 rg BT 484.89 166.10 Td (fect our tenants) Tj ET Q q 0 0 0 rg BT 549.12 166.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 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 49.50 142.10 Td (prices and have a material adverse ef) Tj ET Q q 0 0 0 rg BT 197.01 142.10 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 49.50 130.10 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 67.50 106.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 106.10 Td (e may be subject to litigation which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 356.00 106.10 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 88.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 88.10 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 88.10 Td (ferings, unrecognized pre-acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 76.10 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 64.10 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 64.10 Td (W) Tj ET Q q 0 0 0 rg BT 360.39 64.10 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 52.10 Td (however) Tj ET Q q 0 0 0 rg BT 83.53 52.10 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 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 (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 49.50 730.10 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 49.50 718.10 Td (of certain litigation may af) Tj ET Q q 0 0 0 rg BT 155.95 718.10 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 49.50 706.10 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 49.50 694.10 Td (attract of) Tj ET Q q 0 0 0 rg BT 85.13 694.10 Td (ficers and directors. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 670.10 Td (Our business could suf) Tj ET Q q 0 0 0 rg BT 162.07 670.10 Td (fer in the event our ) Tj ET Q q 0 0 0 rg BT 243.09 670.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 274.20 670.10 Td (, our Dealer Manager) Tj ET Q q 0 0 0 rg BT 363.66 670.10 Td (, our transfer agent or any other party that ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 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 49.50 646.10 Td (cybersecurity) Tj ET Q q 0 0 0 rg BT 103.55 646.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 628.10 Td (Our ) Tj ET Q q 0 0 0 rg BT 89.50 628.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 121.32 628.10 Td (, our Dealer Manager) Tj ET Q q 0 0 0 rg BT 206.43 628.10 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 49.50 616.10 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 534.71 616.10 Td (gy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 604.10 Td (blackouts, natural disasters, terrorism, war and telecommunication failures. ) Tj ET Q q 0 0 0 rg BT 352.19 604.10 Td (Any system failure or accident that causes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 592.10 Td (interruptions in our operations could result in a material disruption to our business. ) Tj ET Q q 0 0 0 rg BT 385.28 592.10 Td (A) Tj ET Q q 0 0 0 rg BT 391.95 592.10 Td ( cyber incident is considered to be any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 580.10 Td (adverse event that threatens the confidentiality) Tj ET Q q 0 0 0 rg BT 235.16 580.10 Td (, integrity or availability of information resources. More specifically) Tj ET Q q 0 0 0 rg BT 507.76 580.10 Td (, a cyber ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.10 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 49.50 556.10 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 49.50 544.10 Td (stockholder records. ) Tj ET Q q 0 0 0 rg BT 132.53 544.10 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 49.50 532.10 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 49.50 520.10 Td (governments and cyber terrorists, has generally increased as the number) Tj ET Q q 0 0 0 rg BT 337.33 520.10 Td (, intensity and sophistication of attempted attacks and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 508.10 Td (instructions from around the world have increased. ) Tj ET Q q 0 0 0 rg BT 257.87 508.10 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 49.50 496.10 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 49.50 484.10 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 49.50 472.10 Td (breaches. ) Tj ET Q q 0 0 0 rg BT 89.29 472.10 Td (There also may be liability for any stolen assets or misappropriated confidential information. ) Tj ET Q q 0 0 0 rg BT 462.53 472.10 Td (Any material adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 460.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 460.10 Td (fect experienced by our ) Tj ET Q q 0 0 0 rg BT 153.15 460.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 184.97 460.10 Td (, our Dealer Manager) Tj ET Q q 0 0 0 rg BT 270.09 460.10 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 49.50 448.10 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 49.50 424.10 Td (Risks Related to Investments in Real Estate) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 400.10 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 49.50 388.10 Td (the real estate markets of those areas.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 364.10 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 49.50 352.10 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 49.50 340.10 Td (changes af) Tj ET Q q 0 0 0 rg BT 91.79 340.10 Td (fecting the real estate markets in that area. ) Tj ET Q q 0 0 0 rg BT 262.92 340.10 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 49.50 328.10 Td (risk to the extent that we lack a geographically diversified portfolio. ) Tj ET Q q 0 0 0 rg BT 325.80 328.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.25 328.10 Td (March24, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.85 328.10 Td (, based on the estimated aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 316.10 Td (value of our real estate investments, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.10 316.10 Td (14%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.43 316.10 Td ( of our portfolio consists of a property located in Carlsbad, California, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 304.10 Td (55%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.09 304.10 Td ( of a property located in Dublin Ireland, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.92 304.10 Td (31%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.25 304.10 Td ( of a property located in Las ) Tj ET Q q 0 0 0 rg BT 440.30 304.10 Td (V) Tj ET Q q 0 0 0 rg BT 446.41 304.10 Td (egas, Nevada. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 280.10 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 49.50 268.10 Td (industries.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 244.10 Td (In the event we have a concentration of tenants in a particular industry) Tj ET Q q 0 0 0 rg BT 354.41 244.10 Td (, our operating results and ability to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.10 Td (distributions may be adversely af) Tj ET Q q 0 0 0 rg BT 182.06 232.10 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 49.50 220.10 Td (the extent that our tenants are not diversified by industry) Tj ET Q q 0 0 0 rg BT 275.18 220.10 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 49.50 208.10 Td (estate properties, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.41 208.10 Td (March24, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.01 208.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.27 208.10 Td (51%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.60 208.10 Td ( is leased to tenants in the manufacturing industry) Tj ET Q q 0 0 0 rg BT 486.79 208.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.10 Td (33%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.83 196.10 Td ( is leased to tenants in the government sector) Tj ET Q q 0 0 0 rg BT 246.82 196.10 Td (, and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.02 196.10 Td (1) Tj ET Q q 0 0 0 rg BT 333.65 196.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.98 196.10 Td ( is leased to tenants in the finance and insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.10 Td (industry) Tj ET Q q 0 0 0 rg BT 81.63 184.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 160.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 160.10 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 49.50 148.10 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 49.50 136.10 Td (significantly diminished. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 118.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 118.10 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 49.50 106.10 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 94.10 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 94.10 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 82.10 Td (which would result in an investment in us being diminished. ) 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 will 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 49.50 730.25 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 49.50 718.25 Td (vacated space.) 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 expect that rental income from real property will, directly or indirectly) Tj ET Q q 0 0 0 rg BT 370.26 694.25 Td (, constitute a significant portion of our income. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (Delays in collecting accounts receivable from tenants could adversely af) Tj ET Q q 0 0 0 rg BT 338.92 682.25 Td (fect our cash flows and financial condition. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 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 49.50 658.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 658.25 Td (fect our income. ) Tj ET Q q 0 0 0 rg BT 127.16 658.25 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 49.50 646.25 Td (the tenants in our properties or in the properties securing loans we may own. ) Tj ET Q q 0 0 0 rg BT 357.48 646.25 Td (As of the date of this ) Tj ET Q q 0 0 0 rg BT 443.02 646.25 Td (Annual Report on Form 10-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (K, we have a total of six tenants at our two commercial properties and one of the two commercial properties is 100% leased to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (single tenant. ) Tj ET Q q 0 0 0 rg BT 105.14 622.25 Td (The weakening of the financial condition or the bankruptcy or insolvency of a significant tenant or a number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (smaller tenants and vacancies caused by defaults of tenants or the expiration of leases, may adversely af) Tj ET Q q 0 0 0 rg BT 464.99 610.25 Td (fect our operations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (our ability to pay distributions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 574.25 Td (Generally) Tj ET Q q 0 0 0 rg BT 112.27 574.25 Td (, under U.S. bankruptcy law) Tj ET Q q 0 0 0 rg BT 224.10 574.25 Td (, a debtor tenant has 120 days to exercise the option of assuming or rejecting the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (obligations under any unexpired lease for nonresidential real property) Tj ET Q q 0 0 0 rg BT 327.64 562.25 Td (, which period may be extended once by the bankruptcy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (court. If the tenant assumes its lease, the tenant must cure all defaults under the lease and may be required to provide adequate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (assurance of its future performance under the lease. If the tenant rejects the lease, we will have a claim against the tenant) Tj ET Q q 0 0 0 rg BT 537.62 538.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (bankruptcy estate. ) Tj ET Q q 0 0 0 rg BT 126.70 526.25 Td (Although rent owing for the period between filing for bankruptcy and rejection of the lease may be af) Tj ET Q q 0 0 0 rg BT 532.77 526.25 Td (forded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (administrative expense priority and paid in full, pre-bankruptcy arrears and amounts owing under the remaining term of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (lease will be af) Tj ET Q q 0 0 0 rg BT 109.57 502.25 Td (forded general unsecured claim status \(absent collateral securing the claim\). Moreover) Tj ET Q q 0 0 0 rg BT 457.36 502.25 Td (, amounts owing under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (the remaining term of the lease will be capped. Other than equity and subordinated claims, general unsecured claims are the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (last claims paid in a bankruptcy and therefore funds may not be available to pay such claims in full. In addition, while the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (specifics of the bankruptcy laws of international jurisdictions may dif) Tj ET Q q 0 0 0 rg BT 327.30 466.25 Td (fer from the U.S. bankruptcy laws described herein, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (bankruptcy or insolvency of a significant tenant or a number of smaller tenants at any of the international properties we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (acquire, may similarly adversely impact our operations and our ability to pay distributions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 418.25 Td (One of our properties is and in the future, we may invest in additional properties that are leased to a single or significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (tenant and, accordingly) Tj ET Q q 0 0 0 rg BT 142.42 406.25 Td (, may be suited to the particular or unique needs of such tenant. ) Tj ET Q q 0 0 0 rg BT 400.50 406.25 Td (W) Tj ET Q q 0 0 0 rg BT 409.14 406.25 Td (e may have dif) Tj ET Q q 0 0 0 rg BT 468.10 406.25 Td (ficulty replacing such a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (tenant if the floor plan of the vacant space limits the types of businesses that can use the space without major renovation. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (addition, the resale value of the property could be diminished because the market value of a particular property will depend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (principally upon the value of the leases of such property) Tj ET Q q 0 0 0 rg BT 273.50 370.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 346.25 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 49.50 334.25 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 73.50 310.25 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 49.50 298.25 Td (investments. ) Tj ET Q q 0 0 0 rg BT 104.59 298.25 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 67.10 274.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 274.25 Td (changes in the general economic climate;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 262.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 262.25 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 67.10 250.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 250.25 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 67.10 238.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 238.25 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 67.10 226.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 226.25 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 67.10 214.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 214.25 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 545.41 214.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 202.25 Td (natural disasters and acts of God, over) Tj ET Q q 0 0 0 rg BT 237.91 202.25 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 85.10 190.25 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 85.10 178.25 Td (interests by eminent domain.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 154.25 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 49.50 142.25 Td (estate property acquisitions, including the risks that:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 118.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 118.25 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 85.10 106.25 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 94.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 94.25 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 82.25 Td (properties or the ef) Tj ET Q q 0 0 0 rg BT 160.72 82.25 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 58.25 Td (Any of these factors could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 285.72 58.25 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 46.25 Td (condition and our ability to make distributions to our stockholders and the value of their investment.) 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 /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 730.10 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 49.50 718.10 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 49.50 706.10 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 73.50 682.10 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 500.68 682.10 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (occupancy) Tj ET Q q 0 0 0 rg BT 91.60 670.10 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 49.50 658.10 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 459.55 658.10 Td (. For example, an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (economic recession or rise in interest rates could make it more dif) Tj ET Q q 0 0 0 rg BT 312.84 646.10 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 49.50 634.10 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 49.50 622.10 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 356.99 622.10 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 49.50 610.10 Td (attractive price. Other risks that may af) Tj ET Q q 0 0 0 rg BT 208.14 610.10 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 67.10 586.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 586.10 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 85.10 574.10 Td (properties in the area; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 562.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 562.10 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 73.50 538.10 Td (International, national, regional and local economic climates have been adversely af) Tj ET Q q 0 0 0 rg BT 409.29 538.10 Td (fected by the slow job growth of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (recent years. ) Tj ET Q q 0 0 0 rg BT 104.84 526.10 Td (T) Tj ET Q q 0 0 0 rg BT 110.25 526.10 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 49.50 514.10 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 424.47 514.10 Td (fected and the value of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (properties may decline. ) Tj ET Q q 0 0 0 rg BT 147.89 502.10 Td (W) Tj ET Q q 0 0 0 rg BT 156.53 502.10 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 49.50 490.10 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 453.77 490.10 Td (Any of these factors may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 97.90 478.10 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 49.50 466.10 Td (stockholders and the value of their investment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 442.10 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 49.50 430.10 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 49.50 418.10 Td (flow) Tj ET Q q 0 0 0 rg BT 66.91 418.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 394.10 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 49.50 382.10 Td (financing to fund the costs of new investments, capital expenditures and other items. ) Tj ET Q q 0 0 0 rg BT 392.20 382.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 441.53 382.10 Td (, we are subject to the risks ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (that our cash flow will not be suf) Tj ET Q q 0 0 0 rg BT 181.24 370.10 Td (ficient to cover required debt service payments and that we will be unable to meet other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (covenants or requirements in the credit agreements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 334.10 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 49.50 322.10 Td (foreclosed upon by) Tj ET Q q 0 0 0 rg BT 125.50 322.10 Td (, or otherwise transferred to, our lender) Tj ET Q q 0 0 0 rg BT 281.70 322.10 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 49.50 310.10 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 49.50 298.10 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 49.50 286.10 Td (exceeds our tax basis in the property) Tj ET Q q 0 0 0 rg BT 194.92 286.10 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 49.50 274.10 Td (proceeds. ) Tj ET Q q 0 0 0 rg BT 91.99 274.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 141.89 274.10 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 49.50 262.10 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 487.13 262.10 Td (A) Tj ET Q q 0 0 0 rg BT 493.80 262.10 Td ( refinancing on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 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 49.50 238.10 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 49.50 226.10 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 67.50 202.10 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 73.50 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 178.10 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 507.98 178.10 Td (, there are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 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 49.50 154.10 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 49.50 142.10 Td (and pollution or environmental matters. ) Tj ET Q q 0 0 0 rg BT 212.89 142.10 Td (W) Tj ET Q q 0 0 0 rg BT 221.53 142.10 Td (e may not have adequate coverage in the event we or our buildings suf) Tj ET Q q 0 0 0 rg BT 503.20 142.10 Td (fer casualty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 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 49.50 118.10 Td (of, any such uninsured losses. ) Tj ET Q q 0 0 0 rg BT 173.38 118.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 223.28 118.10 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 49.50 106.10 Td (damage to a property) Tj ET Q q 0 0 0 rg BT 133.54 106.10 Td (.) 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 67.50 730.25 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.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 382.25 Td (For example, but not by way of limitation, the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 309.74 382.25 Td (Act and the rules and regulations promulgated thereunder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (provides for significantly increased regulation of the derivatives markets and transactions that af) Tj ET Q q 0 0 0 rg BT 434.74 370.25 Td (fect our interest rate hedging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 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 49.50 346.25 Td (counterparties and execution on regulated exchanges or execution facilities, and \(iii\) mar) Tj ET Q q 0 0 0 rg BT 404.73 346.25 Td (gin and collateral requirements. ) Tj ET Q q 0 0 0 rg BT 536.17 346.25 Td (While ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (the full impact of the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 186.69 334.25 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 49.50 322.25 Td (implementing rules and regulations are promulgated, the foregoing requirements may af) Tj ET Q q 0 0 0 rg BT 401.71 322.25 Td (fect our ability to enter into hedging or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 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 49.50 298.25 Td (into such transactions on less favorable terms than prior to the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 351.10 298.25 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 49.50 286.25 Td (users of swaps upon which we may seek to rely) Tj ET Q q 0 0 0 rg BT 243.52 286.25 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 49.50 274.25 Td (submitting them to a derivatives clearing or) Tj ET Q q 0 0 0 rg BT 223.72 274.25 Td (ganization. ) Tj ET Q q 0 0 0 rg BT 272.69 274.25 Td (T) Tj ET Q q 0 0 0 rg BT 278.10 274.25 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 49.50 262.25 Td (required to, among other things, post mar) Tj ET Q q 0 0 0 rg BT 214.84 262.25 Td (gin in connection with such transactions. ) Tj ET Q q 0 0 0 rg BT 382.96 262.25 Td (The occurrence of any of the foregoing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (events may have an adverse ef) Tj ET Q q 0 0 0 rg BT 171.20 250.25 Td (fect on our business and our stockholders) Tj ET Q q 0 0 0 rg BT 339.31 250.25 Td ( return.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 226.25 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 49.50 214.25 Td (more restrictive manner) Tj ET Q q 0 0 0 rg BT 144.61 214.25 Td (, which may force companies in the real estate industry) Tj ET Q q 0 0 0 rg BT 364.44 214.25 Td (, including us, to spend funds to comply with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (these new rules. ) Tj ET Q q 0 0 0 rg BT 115.59 202.25 Td (Any such action on the part of public authorities may adversely af) Tj ET Q q 0 0 0 rg BT 379.50 202.25 Td (fect our results from operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 178.25 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 49.50 166.25 Td (project shutdowns, cancellation of licenses, and revocation of authorizations, in addition to other civil and criminal penalties. ) 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 /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 REIT) Tj ET Q q 0 0 0 rg BT 182.63 658.25 Td ( and Hines Global I. 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 49.50 646.25 Td (including operating experience, allowing them to compete ef) Tj ET Q q 0 0 0 rg BT 292.57 646.25 Td (fectively with us. In addition, our ability to char) Tj ET Q q 0 0 0 rg BT 486.51 646.25 Td (ge premium rental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (rates to tenants may be negatively impacted. ) Tj ET Q q 0 0 0 rg BT 231.76 634.25 Td (This increased competition may increase our costs of acquisitions or investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (or lower our occupancy rates and the rent we may char) Tj ET Q q 0 0 0 rg BT 268.67 622.25 Td (ge tenants. In addition, the arrival of new competitors in the immediate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (areas where we have assets could require unplanned investments in our assets, which may adversely af) Tj ET Q q 0 0 0 rg BT 460.29 610.25 Td (fect us. ) Tj ET Q q 0 0 0 rg BT 493.99 610.25 Td (W) Tj ET Q q 0 0 0 rg BT 502.63 610.25 Td (e may also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (have dif) Tj ET Q q 0 0 0 rg BT 81.80 598.25 Td (ficulty in renewing leases or in leasing to new tenants, which may lead to a reduction in our cash flow and operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (income, 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 properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 358.25 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 49.50 346.25 Td (recognized by a REIT) Tj ET Q q 0 0 0 rg BT 137.34 346.25 Td ( from the sale of property characterized as dealer property) Tj ET Q q 0 0 0 rg BT 368.51 346.25 Td (. In order to avoid such characterization and to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 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 49.50 322.25 Td (generally two years.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 298.25 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 511.75 298.25 Td (fect our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 262.25 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 49.50 250.25 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 49.50 238.25 Td (property) Tj ET Q q 0 0 0 rg BT 82.73 238.25 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 496.95 238.25 Td (, the presence of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (such hazardous or toxic substances.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 202.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 202.25 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 49.50 190.25 Td (for industrial, manufacturing and commercial purposes. ) Tj ET Q q 0 0 0 rg BT 276.75 190.25 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 49.50 178.25 Td (under) Tj ET Q q 0 0 0 rg BT 72.09 178.25 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 475.03 178.25 Td (All of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 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 49.50 154.25 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 49.50 142.25 Td (liabilities under environmental laws and regulations. ) Tj ET Q q 0 0 0 rg BT 264.27 142.25 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 49.50 130.25 Td (remediate these substances, may adversely af) Tj ET Q q 0 0 0 rg BT 230.35 130.25 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 49.50 118.25 Td (borrowings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 94.25 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 82.25 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 70.25 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 58.25 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 58.25 Td (, in certain circumstances, by private ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (parties. ) Tj ET Q q 0 0 0 rg BT 83.47 46.25 Td (W) Tj ET Q q 0 0 0 rg BT 92.11 46.25 Td (e may be potentially liable for such costs in connection with the acquisition and ownership of our properties in the ) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 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 49.50 730.10 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 49.50 718.10 Td (that releases of hazardous or toxic substances have occurred to the environment. ) Tj ET Q q 0 0 0 rg BT 375.31 718.10 Td (The cost of defending against claims of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (liability) Tj ET Q q 0 0 0 rg BT 79.96 706.10 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 49.50 694.10 Td (substantial and require a material portion of our cash flow) Tj ET Q q 0 0 0 rg BT 280.72 694.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 670.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 670.10 Td (e ) Tj ET Q q 0 0 0 rg BT 82.59 670.10 Td (face ) Tj ET Q q 0 0 0 rg BT 102.29 670.10 Td (possible ) Tj ET Q q 0 0 0 rg BT 137.57 670.10 Td (risks ) Tj ET Q q 0 0 0 rg BT 159.53 670.10 Td (associated ) Tj ET Q q 0 0 0 rg BT 204.24 670.10 Td (with ) Tj ET Q q 0 0 0 rg BT 224.53 670.10 Td (the ) Tj ET Q q 0 0 0 rg BT 239.81 670.10 Td (physical ) Tj ET Q q 0 0 0 rg BT 276.20 670.10 Td (ef) Tj ET Q q 0 0 0 rg BT 283.78 670.10 Td (fects ) Tj ET Q q 0 0 0 rg BT 305.16 670.10 Td (of ) Tj ET Q q 0 0 0 rg BT 315.99 670.10 Td (climate ) Tj ET Q q 0 0 0 rg BT 348.48 670.10 Td (change.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 646.10 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 486.02 646.10 Td (, the physical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 634.10 Td (fects of climate change could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 280.96 634.10 Td (fect on our properties, operations and business. ) Tj ET Q q 0 0 0 rg BT 474.06 634.10 Td (T) Tj ET Q q 0 0 0 rg BT 479.47 634.10 Td (o the extent climate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (change causes changes in weather patterns, our markets could experience increases in storm intensity) Tj ET Q q 0 0 0 rg BT 453.70 622.10 Td (, such as those experienced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (in Super Storm Sandy in October 2012, and rising sea-levels. Over time, these conditions could result in declining demand for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 598.10 Td (fice space in our buildings or the inability of us to operate the buildings at all. Climate change may also have indirect ef) Tj ET Q q 0 0 0 rg BT 538.44 598.10 Td (fects ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (on our business by increasing the cost of \(or making unavailable\) property insurance on terms we find acceptable, increasing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (the cost of ener) Tj ET Q q 0 0 0 rg BT 110.68 574.10 Td (gy and increasing the cost of snow removal at our properties. ) Tj ET Q q 0 0 0 rg BT 359.60 574.10 Td (There can be no assurance that climate change ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (will not have a material adverse ef) Tj ET Q q 0 0 0 rg BT 187.03 562.10 Td (fect on our properties, operations or business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 538.10 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 542.29 538.10 Td (fect ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (our cash flow) Tj ET Q q 0 0 0 rg BT 105.25 526.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 502.10 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 49.50 490.10 Td (change and as the properties are assessed or reassessed by taxing authorities. ) Tj ET Q q 0 0 0 rg BT 360.88 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 369.52 490.10 Td (e anticipate that most of our leases will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (generally provide that the property taxes, or increases therein, are char) Tj ET Q q 0 0 0 rg BT 330.86 478.10 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 49.50 466.10 Td (that they occupy) Tj ET Q q 0 0 0 rg BT 114.94 466.10 Td (. ) Tj ET Q q 0 0 0 rg BT 121.89 466.10 Td (As the owner of the properties, however) Tj ET Q q 0 0 0 rg BT 282.27 466.10 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 49.50 454.10 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 49.50 442.10 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 49.50 430.10 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 49.50 418.10 Td (to residents of such properties. Consequently) Tj ET Q q 0 0 0 rg BT 228.82 418.10 Td (, any tax increases may adversely af) Tj ET Q q 0 0 0 rg BT 372.74 418.10 Td (fect our results of operations at such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (properties.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 382.10 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 491.48 382.10 Td (fects and costs of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (remediating the problem.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 346.10 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 49.50 334.10 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 49.50 322.10 Td (produce airborne toxins or irritants. Concern about indoor exposure to mold has been increasing because exposure to mold may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (cause a variety of adverse health ef) Tj ET Q q 0 0 0 rg BT 189.80 310.10 Td (fects and symptoms, including aller) Tj ET Q q 0 0 0 rg BT 332.09 310.10 Td (gic or other reactions. ) Tj ET Q q 0 0 0 rg BT 424.09 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 432.73 310.10 Td (e may become liable to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 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 49.50 286.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 286.10 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 49.50 274.10 Td (stockholders and the value of their investment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 250.10 Td (If we set aside insuf) Tj ET Q q 0 0 0 rg BT 148.99 250.10 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 49.50 238.10 Td (improvements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 214.10 Td (If we do not establish suf) Tj ET Q q 0 0 0 rg BT 174.13 214.10 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 49.50 202.10 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 49.50 190.10 Td (improvements, the applicable properties may decline in value, it may be more dif) Tj ET Q q 0 0 0 rg BT 374.21 190.10 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 49.50 178.10 Td (properties or the amount of rent we can char) Tj ET Q q 0 0 0 rg BT 226.47 178.10 Td (ge at such properties may decrease.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 154.10 Td (Risks related to the development of real properties may have an adverse ef) Tj ET Q q 0 0 0 rg BT 371.71 154.10 Td (fect on our results of operations and returns ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (to our 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 may invest in properties on which developments or improvements are to be constructed or completed. ) Tj ET Q q 0 0 0 rg BT 500.91 118.10 Td (As such, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 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 82.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 82.10 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 70.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 70.10 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 58.10 Td (estimates;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 46.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 46.10 Td (the level of interest of potential tenants for a recently launched development may be low;) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 742.10 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 85.10 730.10 Td (demand;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 718.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 718.10 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 67.10 706.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 706.10 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 67.10 694.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 694.10 Td (labor may be in limited availability; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 682.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 682.10 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 73.50 658.10 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 49.50 646.10 Td (through partnerships, may be determining factors for our ability to lease space and grow) Tj ET Q q 0 0 0 rg BT 401.52 646.10 Td (. ) Tj ET Q q 0 0 0 rg BT 408.84 646.10 Td (The timely delivery of real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (projects and the quality of our developments, however) Tj ET Q q 0 0 0 rg BT 266.81 634.10 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 49.50 622.10 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 457.70 622.10 Td (. If one or more problems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 610.10 Td (fect our real estate developments, our reputation and future performance may be negatively af) Tj ET Q q 0 0 0 rg BT 432.30 610.10 Td (fected and we may be exposed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (to civil liability) Tj ET Q q 0 0 0 rg BT 110.51 598.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 574.10 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 500.14 574.10 Td (These factors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 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 515.47 562.10 Td (Any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 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 494.42 550.10 Td (ficulty in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 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 474.73 538.10 Td (The combination of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (these risks may adversely af) Tj ET Q q 0 0 0 rg BT 162.06 526.10 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 49.50 514.10 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 67.50 490.10 Td (Delays in the development and construction of real properties may have adverse ef) Tj ET Q q 0 0 0 rg BT 406.17 490.10 Td (fects on portfolio diversification, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (results of operations and returns to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 454.10 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 420.12 454.10 Td (fect returns to our stockholders. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 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 49.50 430.10 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 500.00 430.10 Td (Therefore, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 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 508.66 418.10 Td (fer) Tj ET Q q 0 0 0 rg BT 519.20 418.10 Td (. If we are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (delayed in the completion of any such construction project, our tenants may have the right to terminate preconstruction leases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (for space at such newly developed project. ) Tj ET Q q 0 0 0 rg BT 224.53 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 233.17 394.10 Td (e may incur additional risks when we make periodic progress payments or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (advances to builders prior to completion of construction. Each of these factors could result in increased costs of a project or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (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 49.50 358.10 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 49.50 346.10 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 49.50 334.10 Td (may pay too much for a property) Tj ET Q q 0 0 0 rg BT 180.48 334.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 310.10 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 49.50 298.10 Td (we may seek to purchase or adversely af) Tj ET Q q 0 0 0 rg BT 214.01 298.10 Td (fect the value of the properties we own.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 274.10 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 49.50 262.10 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 49.50 250.10 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 49.50 238.10 Td (could rise significantly) Tj ET Q q 0 0 0 rg BT 140.50 238.10 Td (. ) Tj ET Q q 0 0 0 rg BT 147.44 238.10 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 49.50 226.10 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 526.40 226.10 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (lease rates and occupancy) Tj ET Q q 0 0 0 rg BT 152.41 214.10 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 67.50 190.10 Td (Retail properties depend on anchor tenants to attract shoppers and could be adversely af) Tj ET Q q 0 0 0 rg BT 430.38 190.10 Td (fected by the loss of a key ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (anchor tenant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 154.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 154.10 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 49.50 142.10 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 441.59 142.10 Td (A) Tj ET Q q 0 0 0 rg BT 448.26 142.10 Td ( lease termination by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (tenant that occupies a lar) Tj ET Q q 0 0 0 rg BT 148.72 130.10 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 49.50 118.10 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 49.50 106.10 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 94.10 Td (to pay rent. ) Tj ET Q q 0 0 0 rg BT 99.21 94.10 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 82.10 Td (expense recoveries. ) Tj ET Q q 0 0 0 rg BT 132.24 82.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 182.14 82.10 Td (, major tenant closures may result in decreased customer traf) Tj ET Q q 0 0 0 rg BT 424.65 82.10 Td (fic, which could lead to decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 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 58.10 Td (rights as landlord to recover amounts due to us under the terms of our agreements with those parties.) 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 (Leases with retail properties) Tj ET Q q 0 0 0 rg BT 185.92 742.25 Td ( tenants may restrict us from re-leasing space.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 718.25 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 49.50 706.25 Td (merchandise or provide specific types of services within the particular retail center) Tj ET Q q 0 0 0 rg BT 379.65 706.25 Td (. ) Tj ET Q q 0 0 0 rg BT 386.97 706.25 Td (These provisions may limit the number and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (types of prospective tenants interested in leasing space in a particular retail property) Tj ET Q q 0 0 0 rg BT 384.84 694.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 670.25 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 49.50 658.25 Td (us to the ef) Tj ET Q q 0 0 0 rg BT 94.60 658.25 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 49.50 646.25 Td (stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 622.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 622.25 Td (e expect that, to the extent that we invest in any multifamily residential properties, substantially all of our multifamily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 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 49.50 598.25 Td (of the lease term without penalty) Tj ET Q q 0 0 0 rg BT 180.20 598.25 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 49.50 586.25 Td (leases were for longer terms.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 562.25 Td (High levels of unemployment could adversely af) Tj ET Q q 0 0 0 rg BT 265.07 562.25 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 49.50 550.25 Td (properties we acquire, with high quality multifamily communities suf) Tj ET Q q 0 0 0 rg BT 333.51 550.25 Td (fering even more severely) Tj ET Q q 0 0 0 rg BT 438.38 550.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 526.25 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 49.50 514.25 Td (times of increasing unemployment, multifamily occupancy and rental rates have historically been adversely af) Tj ET Q q 0 0 0 rg BT 490.28 514.25 Td (fected by:) 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 (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 67.10 478.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 478.25 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 67.10 466.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 466.25 Td (a reduced demand for higher) Tj ET Q q 0 0 0 rg BT 199.85 466.25 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 67.10 454.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 454.25 Td (a decline in household formation;) 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 (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 85.10 430.25 Td (absence of available employment;) 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 (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 67.10 406.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 406.25 Td (increased collection losses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 382.25 Td (These factors generally have contributed to lower rental rates. ) Tj ET Q q 0 0 0 rg BT 325.71 382.25 Td (T) Tj ET Q q 0 0 0 rg BT 331.12 382.25 Td (o the extent that we invest in any multifamily residential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (properties, our results of operations, financial condition and ability to make distributions to our stockholders may be adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 358.25 Td (fected if these factors worsen.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 334.25 Td (If we acquire hospitality or leisure 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 73.50 310.25 Td (In order to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 188.28 310.25 Td (, we will not be able to operate any hospitality or leisure properties that we acquire or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (participate in the decisions af) Tj ET Q q 0 0 0 rg BT 166.50 298.25 Td (fecting the daily operations of these properties. ) Tj ET Q q 0 0 0 rg BT 359.31 298.25 Td (W) Tj ET Q q 0 0 0 rg BT 367.95 298.25 Td (e will lease any hospitality or leisure properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (we acquire to a taxable REIT) Tj ET Q q 0 0 0 rg BT 166.21 286.25 Td ( subsidiary) Tj ET Q q 0 0 0 rg BT 209.17 286.25 Td (, or ) Tj ET Q q 0 0 0 rg BT 224.82 286.25 Td (TRS, in which we may own up to a 100% interest. Our ) Tj ET Q q 0 0 0 rg BT 449.32 286.25 Td (TRS will enter into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (management agreements with eligible independent contractors, potentially including Hines or its af) Tj ET Q q 0 0 0 rg BT 446.42 274.25 Td (filiates, that are not our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (subsidiaries or otherwise controlled by us to manage these properties. ) Tj ET Q q 0 0 0 rg BT 332.58 262.25 Td (Thus, independent operators, under management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (agreements with our ) Tj ET Q q 0 0 0 rg BT 133.46 250.25 Td (TRS, will control the daily operations of our hospitality) Tj ET Q q 0 0 0 rg BT 355.28 250.25 Td (, leisure and healthcare-related properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 226.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 226.25 Td (e will depend on these independent management companies to operate our hospitality or leisure properties. ) Tj ET Q q 0 0 0 rg BT 514.33 226.25 Td (W) Tj ET Q q 0 0 0 rg BT 522.96 226.25 Td (e will not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (have the authority to require these properties to be operated in a particular manner or to govern any particular aspect of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (daily operations, such as establishing room rates at our hospitality or leisure properties. ) Tj ET Q q 0 0 0 rg BT 403.13 202.25 Td (Thus, even if we believe our hospitality ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (or leisure properties are being operated inef) Tj ET Q q 0 0 0 rg BT 223.68 190.25 Td (ficiently or in a manner that does not result in satisfactory results, we may not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (able to force the management company to change its method of operation of these properties. ) Tj ET Q q 0 0 0 rg BT 427.24 178.25 Td (W) Tj ET Q q 0 0 0 rg BT 435.88 178.25 Td (e can only seek redress if a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (management company violates the terms of the applicable management agreement with the ) Tj ET Q q 0 0 0 rg BT 416.96 166.25 Td (TRS, and then only to the extent of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (the remedies provided for under the terms of the management agreement. In the event that we need to replace any management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (company) Tj ET Q q 0 0 0 rg BT 85.51 142.25 Td (, we may be required by the terms of the management agreement to pay substantial termination fees and may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (experience significant disruptions at the af) Tj ET Q q 0 0 0 rg BT 218.98 130.25 Td (fected properties.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 106.25 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 82.25 Td (The hospitality or leisure industry is seasonal in nature. ) Tj ET Q q 0 0 0 rg BT 299.29 82.25 Td (As a result of the seasonality of the hospitality or leisure industry) Tj ET Q q 0 0 0 rg BT 559.42 82.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 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 58.25 Td (Quarterly financial results may be adversely af) Tj ET Q q 0 0 0 rg BT 236.46 58.25 Td (fected by factors outside our control.) 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 /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 /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (Risks Related to Investments in Debt) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 394.25 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 49.50 382.25 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 457.91 382.25 Td (fect our return on our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (loan investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 346.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 346.25 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 49.50 334.25 Td (related to properties if our ) Tj ET Q q 0 0 0 rg BT 155.85 334.25 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 49.50 322.25 Td (to diversify our investment portfolio. However) Tj ET Q q 0 0 0 rg BT 238.78 322.25 Td (, neither our ) Tj ET Q q 0 0 0 rg BT 289.32 322.25 Td (Advisor nor any of its af) Tj ET Q q 0 0 0 rg BT 387.18 322.25 Td (filiates has any substantial experience ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 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 49.50 298.25 Td (types of loans.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 274.25 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 49.50 262.25 Td (decrease the value of our loan investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 238.25 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 441.84 238.25 Td (These defaults may be caused ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 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 499.48 226.25 Td (fecting real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (estate values. ) Tj ET Q q 0 0 0 rg BT 107.63 214.25 Td (W) Tj ET Q q 0 0 0 rg BT 116.27 214.25 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 455.51 214.25 Td (, we will not know ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 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 49.50 190.25 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 49.50 178.25 Td (of the security associated with such loans.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 154.25 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 49.50 142.25 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 73.50 118.25 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 49.50 106.25 Td (current market rates. If interest rates decrease, we will be adversely af) Tj ET Q q 0 0 0 rg BT 331.40 106.25 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 94.25 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 82.25 Td (rates decrease, our revenues will likewise decrease. Finally) Tj ET Q q 0 0 0 rg BT 287.64 82.25 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 70.25 Td (such time would decrease which would lower the proceeds we would receive in the event we sell such assets.) 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 (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 on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (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 442.59 526.25 Td (, our mezzanine loan will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (satisfied only after the senior debt. ) Tj ET Q q 0 0 0 rg BT 192.24 514.25 Td (As a result, we may not recover some or all of our investment. In addition, mezzanine loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (may have higher loan-to-value ratios than traditional mortgage loans, resulting in less equity in the real property and increasing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (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 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 (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 (W) Tj ET Q q 0 0 0 rg BT 75.65 670.10 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 49.50 658.10 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 73.50 634.10 Td (CMBS are securities that evidence interests in, or are secured by) Tj ET Q q 0 0 0 rg BT 330.82 634.10 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 49.50 622.10 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 476.13 622.10 Td (fected when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 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 468.28 610.10 Td (s ef) Tj ET Q q 0 0 0 rg BT 482.26 610.10 Td (fective maturity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (and the related increase in interest rate sensitivity of a longer) Tj ET Q q 0 0 0 rg BT 292.54 598.10 Td (-term instrument. ) Tj ET Q q 0 0 0 rg BT 366.79 598.10 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 49.50 586.10 Td (shifts in the market) Tj ET Q q 0 0 0 rg BT 129.21 586.10 Td (s perception of issuers and regulatory or tax changes adversely af) Tj ET Q q 0 0 0 rg BT 390.04 586.10 Td (fecting the mortgage securities market as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 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 73.50 550.10 Td (The securitization process that CMBS go through may also result in additional risks. Generally) Tj ET Q q 0 0 0 rg BT 455.28 550.10 Td (, CMBS are issued in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (classes similar to mortgage loans. ) Tj ET Q q 0 0 0 rg BT 189.01 538.10 Td (T) Tj ET Q q 0 0 0 rg BT 194.42 538.10 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 49.50 526.10 Td (that there are funds available after paying the senior classes. ) Tj ET Q q 0 0 0 rg BT 294.77 526.10 Td (T) Tj ET Q q 0 0 0 rg BT 300.18 526.10 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 49.50 514.10 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 49.50 502.10 Td (risk than those CMBS that are more highly rated. Further) Tj ET Q q 0 0 0 rg BT 280.45 502.10 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 49.50 490.10 Td (ultimately prove to be accurate. ) Tj ET Q q 0 0 0 rg BT 180.65 490.10 Td (Thus, any particular class of CMBS may be riskier and more volatile than the rating assigned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (to such security which may result in the returns on any such CMBS investment to be less than anticipated.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 454.10 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 49.50 442.10 Td (in economic and other conditions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 418.10 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 49.50 406.10 Td (relevant securities laws, resulting in a prohibition against their transfer) Tj ET Q q 0 0 0 rg BT 331.24 406.10 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 49.50 394.10 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 451.61 394.10 Td (As a result, our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 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 459.21 382.10 Td (The mezzanine loans we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 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 49.50 358.10 Td (and the greater dif) Tj ET Q q 0 0 0 rg BT 122.34 358.10 Td (ficulty of recoupment in the event of a borrower) Tj ET Q q 0 0 0 rg BT 315.41 358.10 Td () Tj ET Q q 0 0 0 rg BT 318.19 358.10 Td (s default.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (Risks Related to International Investments) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 310.10 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 73.50 286.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 286.10 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 49.50 274.10 Td (internationally) Tj ET Q q 0 0 0 rg BT 107.17 274.10 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 49.50 262.10 Td (States. ) Tj ET Q q 0 0 0 rg BT 80.71 262.10 Td (These investments may be af) Tj ET Q q 0 0 0 rg BT 196.60 262.10 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 49.50 250.10 Td (the properties are located. ) Tj ET Q q 0 0 0 rg BT 157.60 250.10 Td (These laws and business practices may expose us to risks that are dif) Tj ET Q q 0 0 0 rg BT 432.35 250.10 Td (ferent from and in addition to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 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 67.10 214.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 214.10 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 67.10 202.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 202.10 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 85.10 190.10 Td (environmental laws or changes in such environmental laws;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 178.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 178.10 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 85.10 166.10 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 496.93 166.10 Td (s or company) Tj ET Q q 0 0 0 rg BT 553.59 166.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 154.10 Td (country of origin;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 142.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 142.10 Td (the potential for expropriation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 130.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 130.10 Td (possible currency transfer restrictions;) 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 (imposition of adverse or confiscatory taxes;) 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 (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 94.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 94.10 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 82.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 82.10 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 70.10 Td (conditions;) 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 (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 58.10 Td (, cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 46.10 Td (and terms of loan funds resulting from varying national economic policies;) Tj ET Q endstream endobj 57 0 obj <>] /Rotate 0 /Contents 58 0 R>> 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 /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 742.10 Td (general political and economic instability in certain regions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 730.10 Td (the potential dif) Tj ET Q q 0 0 0 rg BT 148.23 730.10 Td (ficulty of enforcing obligations in other countries; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 718.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 718.10 Td (Hines) Tj ET Q q 0 0 0 rg BT 111.02 718.10 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 85.10 706.10 Td (States.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 682.10 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 49.50 670.10 Td (which may adversely af) Tj ET Q q 0 0 0 rg BT 145.69 670.10 Td (fect distributions and our REIT status.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 646.10 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 49.50 634.10 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 535.12 634.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 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 49.50 610.10 Td (fluctuations in exchange rates between foreign currencies and the U.S. dollar) Tj ET Q q 0 0 0 rg BT 356.61 610.10 Td (. ) Tj ET Q q 0 0 0 rg BT 363.56 610.10 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 49.50 598.10 Td (such foreign currency to the U.S. dollar may af) Tj ET Q q 0 0 0 rg BT 237.59 598.10 Td (fect our revenues, operating mar) Tj ET Q q 0 0 0 rg BT 367.07 598.10 Td (gins and distributions and may also af) Tj ET Q q 0 0 0 rg BT 518.54 598.10 Td (fect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (book value of our assets and the amount of stockholders) Tj ET Q q 0 0 0 rg BT 276.76 586.10 Td ( equity) Tj ET Q q 0 0 0 rg BT 303.61 586.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 562.10 Td (Changes in foreign currency exchange rates used to value a REIT) Tj ET Q q 0 0 0 rg BT 338.40 562.10 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 49.50 550.10 Td (of the REIT) Tj ET Q q 0 0 0 rg BT 100.04 550.10 Td (s assets. ) Tj ET Q q 0 0 0 rg BT 137.08 550.10 Td (These changes may adversely af) Tj ET Q q 0 0 0 rg BT 266.29 550.10 Td (fect our status as a REIT) Tj ET Q q 0 0 0 rg BT 364.12 550.10 Td (. Further) Tj ET Q q 0 0 0 rg BT 400.66 550.10 Td (, bank accounts in foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (which are not considered cash or cash equivalents may adversely af) Tj ET Q q 0 0 0 rg BT 319.77 538.10 Td (fect our status as a REIT) Tj ET Q q 0 0 0 rg BT 417.61 538.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 514.10 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 500.41 514.10 Td (fect on our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 478.10 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 49.50 466.10 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 49.50 454.10 Td (significant negative ef) Tj ET Q q 0 0 0 rg BT 138.17 454.10 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 500.66 454.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (introduction of governmental policies to curb inflation can have an adverse ef) Tj ET Q q 0 0 0 rg BT 360.04 442.10 Td (fect on our business. High inflation in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 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 49.50 418.10 Td (pass these increased costs on to our tenants.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 394.10 Td (Lack of compliance with the United States Foreign Corrupt Practices ) Tj ET Q q 0 0 0 rg BT 354.91 394.10 Td (Act, or FCP) Tj ET Q q 0 0 0 rg BT 403.89 394.10 Td (A, could subject us to penalties and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (other adverse consequences.) 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 are subject to the FCP) Tj ET Q q 0 0 0 rg BT 176.48 358.10 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 49.50 346.10 Td (prohibited payments to foreign of) Tj ET Q q 0 0 0 rg BT 183.73 346.10 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 49.50 334.10 Td (potential competitors, are not subject to these prohibitions. Fraudulent practices, including corruption, extortion, bribery) Tj ET Q q 0 0 0 rg BT 531.79 334.10 Td (, pay-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 322.10 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 49.50 310.10 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 49.50 298.10 Td (may have a material adverse ef) Tj ET Q q 0 0 0 rg BT 173.42 298.10 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 49.50 286.10 Td (make distributions to our stockholders and the value of their investment.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (Risks Related to Organizational Structur) Tj ET Q q 0 0 0 rg BT 224.87 262.10 Td (e) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 238.10 Td (Any interest in us will be diluted by the Special OP) Tj ET Q q 0 0 0 rg BT 275.47 238.10 Td ( Units and any other OP) Tj ET Q q 0 0 0 rg BT 375.39 238.10 Td ( Units in the Operating Partnership and any ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 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 73.50 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 202.10 Td (e owned a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.17 202.10 Td (99.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.00 202.10 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 385.37 202.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.95 202.10 Td (. Hines Global REIT) Tj ET Q q 0 0 0 rg BT 549.03 202.10 Td ( II ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (Associates Limited Partnership owns the remaining interest in the Operating Partnership, including the Special OP) Tj ET Q q 0 0 0 rg BT 507.64 190.10 Td ( Units in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (Operating Partnership, which were issued as consideration for an obligation by Hines and its af) Tj ET Q q 0 0 0 rg BT 430.06 178.10 Td (filiates to perform future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (services in connection with our real estate operations. Please see ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 316.6240234375 164.76699218750002 m 342.44921875 164.76699218750002 l s q 0 0 1 rg BT 316.62 166.10 Td (Item 7) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 342.45 166.10 Td (. Management) Tj ET Q q 0 0 0 rg BT 402.43 166.10 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 471.60 166.10 Td (Analysis of Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (Condition and Results of OperationsCritical ) Tj ET Q q 0 0 0 rg BT 237.54 154.10 Td (Accounting PoliciesT) Tj ET Q q 0 0 0 rg BT 334.11 154.10 Td (reatment of Management Compensation and Expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (Reimbursements for a summary of these interests. Payments with respect to these interests will reduce the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (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 73.50 106.10 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 444.34 106.10 Td (Therefore, investors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (purchasing our common shares in the Of) Tj ET Q q 0 0 0 rg BT 212.06 94.10 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 70.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 70.10 Td (sell shares in the Of) Tj ET Q q 0 0 0 rg BT 164.34 70.10 Td (fering or sell additional shares in the future, including those issued pursuant to our distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 58.10 Td (reinvestment plan;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 46.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 46.10 Td (sell securities that are convertible into shares, such as OP) Tj ET Q q 0 0 0 rg BT 313.55 46.10 Td ( Units;) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 742.10 Td (at the option of our ) Tj ET Q q 0 0 0 rg BT 163.70 742.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 195.52 742.10 Td (, issue OP) Tj ET Q q 0 0 0 rg BT 235.43 742.10 Td ( Units to pay for certain fees;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 730.10 Td (issue OP) Tj ET Q q 0 0 0 rg BT 120.01 730.10 Td ( Units or common shares to our ) Tj ET Q q 0 0 0 rg BT 248.05 730.10 Td (Advisor or af) Tj ET Q q 0 0 0 rg BT 301.19 730.10 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 67.10 718.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 718.10 Td (issue shares in a private of) Tj ET Q q 0 0 0 rg BT 190.72 718.10 Td (fering; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 706.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 706.10 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 85.10 694.10 Td (Operating Partnership.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 670.10 Td (The repurchase of interests in the Operating Partnership held by Hines and its af) Tj ET Q q 0 0 0 rg BT 401.51 670.10 Td (filiates \(including the Special OP) Tj ET Q q 0 0 0 rg BT 537.81 670.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (Units and other OP) Tj ET Q q 0 0 0 rg BT 129.42 658.10 Td ( Units\) as required in our ) Tj ET Q q 0 0 0 rg BT 236.30 658.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 274.53 658.10 Td (Agreement may discourage a takeover attempt.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 634.10 Td (Under certain circumstances, including a mer) Tj ET Q q 0 0 0 rg BT 254.91 634.10 Td (ger) Tj ET Q q 0 0 0 rg BT 267.28 634.10 Td (, consolidation or sale of substantially all of our assets or any similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (transaction, a purchase, tender or exchange of) Tj ET Q q 0 0 0 rg BT 232.57 622.10 Td (fer that results in the tender or exchange of more than 50% of our outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (common shares, a transaction pursuant to which a majority of our board of directors then in of) Tj ET Q q 0 0 0 rg BT 426.16 610.10 Td (fice are replaced or removed, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (the termination or non-renewal of our ) Tj ET Q q 0 0 0 rg BT 202.23 598.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 241.40 598.10 Td (Agreement, including termination by us for cause or non-renewal for poor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (performance, the Operating Partnership is, at the election of Hines or its af) Tj ET Q q 0 0 0 rg BT 347.55 586.10 Td (filiates, required to purchase the Special OP) Tj ET Q q 0 0 0 rg BT 522.96 586.10 Td ( Units ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (and any OP) Tj ET Q q 0 0 0 rg BT 95.79 574.10 Td ( Units that Hines or its af) Tj ET Q q 0 0 0 rg BT 196.15 574.10 Td (filiates own for cash \(or) Tj ET Q q 0 0 0 rg BT 291.27 574.10 Td (, in certain cases, a promissory note\) or our shares, at the election ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (of the holder) Tj ET Q q 0 0 0 rg BT 100.04 562.10 Td (. ) Tj ET Q q 0 0 0 rg BT 107.36 562.10 Td (These rights may deter these types of transactions which may limit the opportunity for stockholders to receive a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (premium for their common shares that might otherwise exist if an investor attempted to acquire us.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 526.10 Td (Hines) Tj ET Q q 0 0 0 rg BT 94.54 526.10 Td ( ability to cause the Operating Partnership to purchase the Special OP) Tj ET Q q 0 0 0 rg BT 383.34 526.10 Td ( Units and any other OP) Tj ET Q q 0 0 0 rg BT 483.26 526.10 Td ( Units that it or its ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.65 514.10 Td (filiates hold in connection with the termination of our ) Tj ET Q q 0 0 0 rg BT 281.48 514.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 319.72 514.10 Td (Agreement may deter us from terminating our ) Tj ET Q q 0 0 0 rg BT 511.86 514.10 Td (Advisory ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (Agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 478.10 Td (Under certain circumstances, if we are not advised by an entity af) Tj ET Q q 0 0 0 rg BT 335.43 478.10 Td (filiated with Hines, including under circumstances ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (where our ) Tj ET Q q 0 0 0 rg BT 91.71 466.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 130.88 466.10 Td (Agreement is terminated by us for cause or not renewed due to poor performance, Hines or its af) Tj ET Q q 0 0 0 rg BT 517.23 466.10 Td (filiates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (may cause the Operating Partnership to purchase some or all of the Special OP) Tj ET Q q 0 0 0 rg BT 364.31 454.10 Td ( Units or any other OP) Tj ET Q q 0 0 0 rg BT 454.21 454.10 Td ( Units then held by such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (entities. Under these circumstances if the amount necessary to purchase Hines) Tj ET Q q 0 0 0 rg BT 366.98 442.10 Td ( and its af) Tj ET Q q 0 0 0 rg BT 405.96 442.10 Td (filiates) Tj ET Q q 0 0 0 rg BT 435.75 442.10 Td ( interests in the Operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (Partnership is substantial, these rights could discourage or deter us from terminating our ) Tj ET Q q 0 0 0 rg BT 403.87 430.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 443.04 430.10 Td (Agreement under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (circumstances in which we would otherwise do so.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 394.10 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 49.50 382.10 Td (common shares, which issuance could adversely af) Tj ET Q q 0 0 0 rg BT 259.05 382.10 Td (fect the holders of our common shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 358.10 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 479.63 358.10 Td (W) Tj ET Q q 0 0 0 rg BT 488.67 358.10 Td (ith the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 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 49.50 334.10 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 49.50 322.10 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 364.78 322.10 Td (fect the holders of our common shares. Upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (the af) Tj ET Q q 0 0 0 rg BT 71.80 310.10 Td (firmative vote of a majority of our directors \(including, in the case of preferred shares, a majority of our independent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (directors\), 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 49.50 286.10 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 49.50 274.10 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 49.50 262.10 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 49.50 250.10 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 49.50 238.10 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 455.38 238.10 Td (, holders of preferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 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 49.50 214.10 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 49.50 202.10 Td (occurrence. ) Tj ET Q q 0 0 0 rg BT 100.67 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 109.31 202.10 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 49.50 190.10 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 49.50 178.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 178.10 Td (ficult or tend to discourage:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 154.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 154.10 Td (a mer) Tj ET Q q 0 0 0 rg BT 107.80 154.10 Td (ger) Tj ET Q q 0 0 0 rg BT 120.17 154.10 Td (, tender of) Tj ET Q q 0 0 0 rg BT 160.81 154.10 Td (fer or proxy contest;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 142.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 142.10 Td (the assumption of control by a holder of a lar) Tj ET Q q 0 0 0 rg BT 265.55 142.10 Td (ge block of our securities; and/or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 130.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 130.10 Td (the removal of incumbent management.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 106.10 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 94.10 Td (stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 70.10 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 58.10 Td (financing, growth, debt capitalization, REIT) Tj ET Q q 0 0 0 rg BT 226.21 58.10 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 46.10 Td (revise these and other policies without a vote of the stockholders. Under the Maryland General Corporation Law and our ) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (charter) Tj ET Q q 0 0 0 rg BT 76.85 742.10 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 422.69 742.10 Td ( broad discretion in setting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 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 49.50 718.10 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 49.50 706.10 Td (stockholders.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 682.10 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 73.50 658.10 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 49.50 646.10 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 49.50 634.10 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 49.50 622.10 Td (class or series of our outstanding securities. ) Tj ET Q q 0 0 0 rg BT 228.45 622.10 Td (This ownership limit may deter tender of) Tj ET Q q 0 0 0 rg BT 392.11 622.10 Td (fers for our common shares, which of) Tj ET Q q 0 0 0 rg BT 542.17 622.10 Td (fers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 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 49.50 598.10 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 49.50 586.10 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 49.50 574.10 Td (whichever is more restrictive, of the outstanding common shares or otherwise to ef) Tj ET Q q 0 0 0 rg BT 380.61 574.10 Td (fect a change of control in us.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 550.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 550.10 Td (e will not be af) Tj ET Q q 0 0 0 rg BT 136.02 550.10 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 73.50 526.10 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 49.50 514.10 Td (of directors is obtained before the person seeking the combination became an interested stockholder) Tj ET Q q 0 0 0 rg BT 448.68 514.10 Td (, with:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 490.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 490.10 Td (any person who beneficially owns 10% or more of the voting power of our outstanding voting shares \(an interested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 478.10 Td (stockholder\);) 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 (any of our af) Tj ET Q q 0 0 0 rg BT 136.29 466.10 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 85.10 454.10 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 85.10 442.10 Td (or) 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 (an af) Tj ET Q q 0 0 0 rg BT 104.63 430.10 Td (filiate of an interested stockholder) Tj ET Q q 0 0 0 rg BT 240.69 430.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 406.10 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 49.50 394.10 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 49.50 382.10 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 456.74 382.10 Td (Therefore, we will not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 370.10 Td (forded the protections of this statute and, accordingly) Tj ET Q q 0 0 0 rg BT 269.71 370.10 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 49.50 358.10 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 49.50 346.10 Td (interested stockholder) Tj ET Q q 0 0 0 rg BT 136.98 346.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 322.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 322.10 Td (e are not registered as an investment company under the Investment Company ) Tj ET Q q 0 0 0 rg BT 400.28 322.10 Td (Act of 1940, as amended, or the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (Investment Company ) Tj ET Q q 0 0 0 rg BT 139.13 310.10 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 49.50 298.10 Td (the Investment Company ) Tj ET Q q 0 0 0 rg BT 154.41 298.10 Td (Act which may limit or otherwise af) Tj ET Q q 0 0 0 rg BT 300.91 298.10 Td (fect our investment choices.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 274.10 Td (Hines Global II, the Operating Partnership, and our subsidiaries will conduct our businesses so that none of such entities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (are required to register as investment companies under the Investment Company ) Tj ET Q q 0 0 0 rg BT 381.89 262.10 Td (Act. ) Tj ET Q q 0 0 0 rg BT 403.65 262.10 Td (The operation of a business in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (manner so as not to be subject to regulation as an investment company requires an analysis of and compliance with complex ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (laws, regulations and SEC staf) Tj ET Q q 0 0 0 rg BT 171.80 238.10 Td (f interpretations, not all of which are summarized herein. ) Tj ET Q q 0 0 0 rg BT 403.94 238.10 Td (Although we could modify our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (business methods at any time, at the present time we expect that the focus of our activities will involve investments in real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (estate, buildings, and other assets that can be referred to as sticks and bricks and therefore we will not be an investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (company under Section3\(a\)\(1\)\(A\) of the Investment Company ) Tj ET Q q 0 0 0 rg BT 303.88 202.10 Td (Act. ) Tj ET Q q 0 0 0 rg BT 325.63 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 334.27 202.10 Td (e may invest in other real estate investments and will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (otherwise be considered to be in the real estate business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 166.10 Td (Companies subject to the Investment Company ) Tj ET Q q 0 0 0 rg BT 264.58 166.10 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 49.50 154.10 Td (such as requirements relating to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 130.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 130.10 Td (limitations on the capital structure of the entity;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 118.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 118.10 Td (restrictions on certain investments;) 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 (prohibitions on transactions with af) Tj ET Q q 0 0 0 rg BT 226.56 106.10 Td (filiated entities; and) 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 (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 82.10 Td (rules and regulations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 58.10 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 46.10 Td (companies. Because we and our subsidiaries do not expect to be subject to these requirements, our stockholders will not be ) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 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 49.50 730.10 Td (investment company) Tj ET Q q 0 0 0 rg BT 131.89 730.10 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 49.50 718.10 Td (Act.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 694.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 694.10 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 49.50 682.10 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 49.50 670.10 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 49.50 658.10 Td (hold investment securities having a value exceeding 40% of the value of the entity) Tj ET Q q 0 0 0 rg BT 381.90 658.10 Td (s total assets, and no other exclusion from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (registration was available, that entity might be required to register as an investment company) Tj ET Q q 0 0 0 rg BT 420.96 646.10 Td (. In order to avoid such a result, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 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 49.50 622.10 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 364.52 622.10 Td (go opportunities to acquire certain investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 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 49.50 598.10 Td (for purchase.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 574.10 Td (If Hines Global II, 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 49.50 562.10 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 49.50 550.10 Td (absent another exclusion from the Investment Company ) Tj ET Q q 0 0 0 rg BT 275.28 550.10 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 49.50 538.10 Td (seek to rely upon the exclusion provided by Section3\(c\)\(5\)\(C\) of that ) Tj ET Q q 0 0 0 rg BT 330.54 538.10 Td (Act, which is available for) Tj ET Q q 0 0 0 rg BT 435.94 538.10 Td (, among other things, entities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 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 49.50 514.10 Td (estate. ) Tj ET Q q 0 0 0 rg BT 84.02 514.10 Td (This exclusion, as interpreted by the staf) Tj ET Q q 0 0 0 rg BT 245.74 514.10 Td (f of the SEC, generally requires that at least 55% of an entity) Tj ET Q q 0 0 0 rg BT 492.05 514.10 Td (s portfolio be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (comprised of qualifying interests and the remaining 45% of the entity) Tj ET Q q 0 0 0 rg BT 330.54 502.10 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 49.50 490.10 Td (interests \(as such terms have been interpreted by the staf) Tj ET Q q 0 0 0 rg BT 275.07 490.10 Td (f of the SEC\). SEC staf) Tj ET Q q 0 0 0 rg BT 368.22 490.10 Td (f no-action letters have indicated that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 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 371.07 478.10 Td (s assets are invested in real estate-type ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 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 49.50 454.10 Td (qualifying interests, and no more than 20% of such entity) Tj ET Q q 0 0 0 rg BT 281.67 454.10 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 49.50 442.10 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 49.50 430.10 Td (manner consistent with SEC staf) Tj ET Q q 0 0 0 rg BT 179.86 430.10 Td (f guidance. ) Tj ET Q q 0 0 0 rg BT 229.10 430.10 Td (W) Tj ET Q q 0 0 0 rg BT 237.74 430.10 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 49.50 418.10 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 49.50 406.10 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 49.50 394.10 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 49.50 382.10 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 49.50 370.10 Td (remain in compliance with the foregoing standards. In addition, we may have to for) Tj ET Q q 0 0 0 rg BT 385.89 370.10 Td (go opportunities to acquire certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 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 49.50 346.10 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 73.50 322.10 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 49.50 310.10 Td (provided by Section3\(c\)\(6\) of the Investment Company ) Tj ET Q q 0 0 0 rg BT 276.12 310.10 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 49.50 298.10 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 49.50 286.10 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 49.50 274.10 Td (Company ) Tj ET Q q 0 0 0 rg BT 90.33 274.10 Td (Act.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 250.10 Td (There can be no assurance that the laws and regulations governing the Investment Company ) Tj ET Q q 0 0 0 rg BT 443.94 250.10 Td (Act status of REIT) Tj ET Q q 0 0 0 rg BT 518.51 250.10 Td (s \(and/or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (their subsidiaries\), including actions by the SEC or its staf) Tj ET Q q 0 0 0 rg BT 282.06 238.10 Td (f providing more specific or dif) Tj ET Q q 0 0 0 rg BT 407.68 238.10 Td (ferent guidance regarding these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (exclusions, will not change in a manner that adversely af) Tj ET Q q 0 0 0 rg BT 276.47 226.10 Td (fects our operations. For example, on ) Tj ET Q q 0 0 0 rg BT 430.04 226.10 Td (August31, 201) Tj ET Q q 0 0 0 rg BT 491.06 226.10 Td (1, the SEC issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 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 49.50 202.10 Td (of the Investment Company ) Tj ET Q q 0 0 0 rg BT 162.82 202.10 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 49.50 190.10 Td (REIT) Tj ET Q q 0 0 0 rg BT 71.02 190.10 Td (s should be regulated in a manner similar to investment companies. ) Tj ET Q q 0 0 0 rg BT 344.94 190.10 Td (T) Tj ET Q q 0 0 0 rg BT 350.35 190.10 Td (o the extent that the SEC or the SEC staf) Tj ET Q q 0 0 0 rg BT 513.20 190.10 Td (f provides ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 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 49.50 166.10 Td (definition of an investment company under the Investment Company ) Tj ET Q q 0 0 0 rg BT 326.94 166.10 Td (Act upon which we may rely) Tj ET Q q 0 0 0 rg BT 442.09 166.10 Td (, we may be required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (change the way we conduct our business or adjust our strategy accordingly) Tj ET Q q 0 0 0 rg BT 348.48 154.10 Td (. ) Tj ET Q q 0 0 0 rg BT 355.43 154.10 Td (Any additional guidance from the SEC staf) Tj ET Q q 0 0 0 rg BT 527.99 154.10 Td (f could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 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 49.50 130.10 Td (definition of an investment company under the Investment Company ) Tj ET Q q 0 0 0 rg BT 326.94 130.10 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 49.50 118.10 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 49.50 106.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 97.90 106.10 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 464.18 106.10 Td (Act.) 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 (If Hines Global II 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 be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (unenforceable, unless a court were to direct enforcement, and a court could appoint a receiver to take control of us and liquidate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (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 REIT) Tj ET Q q 0 0 0 rg BT 405.08 286.25 Td ( and Hines Global I. Because we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (compete with these real estate investment vehicles for investment opportunities, Hines faces conflicts of interest in allocating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (investment opportunities between us and these other real estate investment vehicles. ) Tj ET Q q 0 0 0 rg BT 390.61 262.25 Td (W) Tj ET Q q 0 0 0 rg BT 399.25 262.25 Td (e have limited rights to specific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (investment opportunities located by Hines. Some of these entities have a priority right over other Hines real estate investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (vehicles, including us, to accept investment opportunities that meet certain defined investment criteria. Because we and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (Hines real estate investment vehicles rely on Hines to present us with investment opportunities, these rights will reduce our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (investment opportunities. Please see Conflicts of InterestCompetitive ) Tj ET Q q 0 0 0 rg BT 345.28 214.25 Td (Activities of Hines and its ) Tj ET Q q 0 0 0 rg BT 451.65 214.25 Td (Af) Tj ET Q q 0 0 0 rg BT 462.02 214.25 Td (filiates for a description ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (of some of these entities and priority rights. ) Tj ET Q q 0 0 0 rg BT 228.73 202.25 Td (W) Tj ET Q q 0 0 0 rg BT 237.37 202.25 Td (e therefore may not be able to invest in, or we may only invest indirectly with or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (through another Hines af) Tj ET Q q 0 0 0 rg BT 149.01 190.25 Td (filiated real estate investment vehicle in, certain investments we otherwise would make directly) Tj ET Q q 0 0 0 rg BT 530.17 190.25 Td (. ) Tj ET Q q 0 0 0 rg BT 537.49 190.25 Td (T) Tj ET Q q 0 0 0 rg BT 542.90 190.25 Td (o ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (the extent we invest in opportunities with another real estate investment vehicles af) Tj ET Q q 0 0 0 rg BT 382.00 178.25 Td (filiated with Hines, we may not have the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (control over such 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 73.50 142.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 142.25 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 546.84 142.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (investment allocation process will terminate once we have fully invested the proceeds of our public of) Tj ET Q q 0 0 0 rg BT 457.80 130.25 Td (ferings or if we are no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (longer advised by an af) Tj ET Q q 0 0 0 rg BT 142.62 118.25 Td (filiate of Hines. For investment opportunities not covered by this allocation procedure, Hines will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (decide in its discretion, subject to any priority rights it grants or has granted to other Hines-managed or otherwise af) Tj ET Q q 0 0 0 rg BT 513.08 106.25 Td (filiated real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (estate investment vehicles, how to allocate such opportunities among us, Hines and other real estate investment vehicles. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (Because we do not have a right to accept or reject any investment opportunities before Hines or one or more Hines real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (investment vehicles have the right to accept such opportunities, and are otherwise subject to Hines) Tj ET Q q 0 0 0 rg BT 445.58 70.25 Td ( discretion as to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (investment opportunities we will receive, we may not be able to review and/or invest in opportunities which we would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (otherwise pursue if we were the only real estate investment vehicle sponsored by Hines or had a priority right in regard to such ) 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 (investments. ) Tj ET Q q 0 0 0 rg BT 104.59 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 113.23 742.10 Td (e are subject to the risk that, as a result of the conflicts of interest between Hines, us and other real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (investment vehicles sponsored or managed by or af) Tj ET Q q 0 0 0 rg BT 254.54 730.10 Td (filiated with Hines, and the priority rights Hines has granted or may in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (future grant to any such other real estate investment vehicles, we may not be of) Tj ET Q q 0 0 0 rg BT 366.16 718.10 Td (fered favorable investment opportunities located ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (by Hines when it would otherwise be in our best interest to accept such investment opportunities, and our business, results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (operations, cash flows and financial condition and our ability to make distributions to our stockholders and the value of their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (investment may be adversely impacted thereby) Tj ET Q q 0 0 0 rg BT 236.84 682.10 Td (.) Tj ET Q BT /F4 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 75.65 658.10 Td (e may compete with other investment vehicles af) Tj ET Q q 0 0 0 rg BT 273.49 658.10 Td (filiated with Hines for tenants.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 634.10 Td (Hines and its af) Tj ET Q q 0 0 0 rg BT 135.80 634.10 Td (filiates are not prohibited from engaging, directly or indirectly) Tj ET Q q 0 0 0 rg BT 384.24 634.10 Td (, in any other business or from possessing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 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 49.50 610.10 Td (ownership, management, leasing or sale of real estate projects. Hines or its af) Tj ET Q q 0 0 0 rg BT 360.88 610.10 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 49.50 598.10 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 398.63 598.10 Td (Therefore, our properties may compete ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (for tenants with other properties owned and/or managed by Hines and its af) Tj ET Q q 0 0 0 rg BT 350.90 586.10 Td (filiates, including Hines REIT) Tj ET Q q 0 0 0 rg BT 471.25 586.10 Td ( and Hines Global I. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (Hines may face conflicts of interest when evaluating tenant opportunities for our properties and other properties owned and/or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (managed by Hines and its af) Tj ET Q q 0 0 0 rg BT 162.90 562.10 Td (filiates and these conflicts of interest may have a negative impact on our ability to attract and retain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (tenants.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 526.10 Td (Employees of our ) Tj ET Q q 0 0 0 rg BT 141.85 526.10 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 49.50 514.10 Td (resources and investment opportunities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 490.10 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 489.63 490.10 Td (filiates to manage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 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 49.50 466.10 Td (business in an appropriate manner) Tj ET Q q 0 0 0 rg BT 185.57 466.10 Td (. Our of) Tj ET Q q 0 0 0 rg BT 219.28 466.10 Td (ficers and the of) Tj ET Q q 0 0 0 rg BT 283.79 466.10 Td (ficers and employees of our ) Tj ET Q q 0 0 0 rg BT 396.80 466.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 428.63 466.10 Td (, Hines and its af) Tj ET Q q 0 0 0 rg BT 495.93 466.10 Td (filiates hold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 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 49.50 442.10 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 49.50 430.10 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 49.50 418.10 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 49.50 406.10 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 49.50 394.10 Td (properties and other assets unrelated to our business. ) Tj ET Q q 0 0 0 rg BT 264.82 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 273.46 394.10 Td (e lack the ability to manage it without the time and attention of Hines) Tj ET Q q 0 0 0 rg BT 553.47 394.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (employees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 358.10 Td (Hines and its af) Tj ET Q q 0 0 0 rg BT 135.80 358.10 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 49.50 346.10 Td (objectives and legal and financial obligations similar to ours, including Hines REIT) Tj ET Q q 0 0 0 rg BT 383.69 346.10 Td ( and Hines Global I. Because Hines and its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 334.10 Td (filiates have interests in other real estate investment vehicles and also engage in other business activities, they may have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (conflicts of 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 494.47 322.10 Td (ficers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (directors, as well as those of our ) Tj ET Q q 0 0 0 rg BT 180.58 310.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 212.40 310.10 Td (, own equity interests in entities af) Tj ET Q q 0 0 0 rg BT 349.69 310.10 Td (filiated with Hines from which we may buy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (properties. ) Tj ET Q q 0 0 0 rg BT 96.80 298.10 Td (These individuals may make substantial profits in connection with such transactions, which could result in conflicts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (of interest. Likewise, such individuals could make substantial profits as the result of investment opportunities allocated to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (entities af) Tj ET Q q 0 0 0 rg BT 88.47 274.10 Td (filiated with Hines other than us. ) Tj ET Q q 0 0 0 rg BT 224.00 274.10 Td (As a result of these interests, they could pursue transactions that may not be in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (best interest.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 238.10 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 73.50 214.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 214.10 Td (e may in the future acquire properties from Hines and af) Tj ET Q q 0 0 0 rg BT 306.87 214.10 Td (filiates of Hines. ) Tj ET Q q 0 0 0 rg BT 378.06 214.10 Td (W) Tj ET Q q 0 0 0 rg BT 386.70 214.10 Td (e may acquire properties Hines currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 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 49.50 190.10 Td (Similarly) Tj ET Q q 0 0 0 rg BT 86.07 190.10 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 482.75 190.10 Td (filiates and its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (employees \(including our of) Tj ET Q q 0 0 0 rg BT 162.35 178.10 Td (ficers and directors\) may make substantial profits in connection with such transactions. ) Tj ET Q q 0 0 0 rg BT 515.40 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 524.04 178.10 Td (e must ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (follow certain procedures when purchasing assets from Hines and its af) Tj ET Q q 0 0 0 rg BT 334.79 166.10 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 49.50 154.10 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 49.50 142.10 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 49.50 130.10 Td (to us than we would receive from a third party) Tj ET Q q 0 0 0 rg BT 234.07 130.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 106.10 Td (Hines and its af) Tj ET Q q 0 0 0 rg BT 132.61 106.10 Td (filiates may face conflicts of interest caused by compensation arrangements with us, which could result ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (in actions that are not in our stockholders) Tj ET Q q 0 0 0 rg BT 224.63 94.10 Td ( best interest.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 70.10 Td (Hines, our ) Tj ET Q q 0 0 0 rg BT 116.11 70.10 Td (Advisor and their af) Tj ET Q q 0 0 0 rg BT 196.18 70.10 Td (filiates receive substantial fees from us in return for their services and these fees could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (influence our ) Tj ET Q q 0 0 0 rg BT 104.48 58.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 137.07 58.10 Td () Tj ET Q q 0 0 0 rg BT 139.85 58.10 Td (s advice to us. ) Tj ET Q q 0 0 0 rg BT 200.96 58.10 Td (Among other matters, the compensation arrangements could af) Tj ET Q q 0 0 0 rg BT 452.36 58.10 Td (fect their judgment with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (respect to:) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 742.10 Td (Public of) Tj ET Q q 0 0 0 rg BT 121.71 742.10 Td (ferings of equity by us, which allow our Dealer Manager to earn additional dealer manager fees;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 730.10 Td (Property dispositions in circumstances where Hines or an af) Tj ET Q q 0 0 0 rg BT 325.26 730.10 Td (filiate of Hines manages the property and earns significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 718.10 Td (fees for managing the property;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 706.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 706.10 Td (Property acquisitions, which may allow our ) Tj ET Q q 0 0 0 rg BT 261.86 706.10 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 326.95 706.10 Td (filiates to earn additional acquisition fees, asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 694.10 Td (management fees and other fees; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 682.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 682.10 Td (V) Tj ET Q q 0 0 0 rg BT 91.61 682.10 Td (arious liquidity events.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 658.10 Td (Further) Tj ET Q q 0 0 0 rg BT 102.54 658.10 Td (, our ) Tj ET Q q 0 0 0 rg BT 122.82 658.10 Td (Advisor may recommend that we invest in a particular asset or pay a higher purchase price for the asset than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (it would otherwise recommend if it did not receive an acquisition fee. Similarly) Tj ET Q q 0 0 0 rg BT 369.32 646.10 Td (, our ) Tj ET Q q 0 0 0 rg BT 389.60 646.10 Td (Advisor has incentives to recommend that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (we purchase properties using debt financing since the acquisition fees that we pay to our ) Tj ET Q q 0 0 0 rg BT 405.23 634.10 Td (Advisor could increase if we raise the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (level of debt financing in connection with the acquisition of certain properties. Certain potential acquisition fees and asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (management fees paid to our ) Tj ET Q q 0 0 0 rg BT 166.96 610.10 Td (Advisor and property management and leasing fees paid to Hines and its af) Tj ET Q q 0 0 0 rg BT 467.25 610.10 Td (filiates would be paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (irrespective of the quality of the underlying real estate or property management services during the term of the related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (agreement. Our ) Tj ET Q q 0 0 0 rg BT 116.14 586.10 Td (Advisor is also entitled to a fee equal to a percentage of the total consideration paid in connection with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (disposition. ) Tj ET Q q 0 0 0 rg BT 100.72 574.10 Td (This fee may incentivize our ) Tj ET Q q 0 0 0 rg BT 217.06 574.10 Td (Advisor to recommend the disposition of a property or properties through a sale, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (mer) Tj ET Q q 0 0 0 rg BT 64.87 562.10 Td (ger) Tj ET Q q 0 0 0 rg BT 77.23 562.10 Td (, or other transaction that may not be in our best interests at the time. In addition, the premature disposition of an asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (may add concentration risk to the portfolio or may be at a price lower than if we held the property) Tj ET Q q 0 0 0 rg BT 440.11 550.10 Td (. Moreover) Tj ET Q q 0 0 0 rg BT 486.63 550.10 Td (, our ) Tj ET Q q 0 0 0 rg BT 506.91 550.10 Td (Advisor has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (considerable discretion with respect to the terms and timing of acquisition, disposition and leasing transactions. Our Dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (Manager will be paid an annual distribution and stockholder servicing fee with respect to Class ) Tj ET Q q 0 0 0 rg BT 432.27 526.10 Td (T) Tj ET Q q 0 0 0 rg BT 438.20 526.10 Td ( Shares until the earliest to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (occur of several events, including \(i\) a listing of the Class ) Tj ET Q q 0 0 0 rg BT 282.22 514.10 Td (A) Tj ET Q q 0 0 0 rg BT 288.89 514.10 Td ( Shares on a national securities exchange, and \(ii\) such Class ) Tj ET Q q 0 0 0 rg BT 534.19 514.10 Td (T) Tj ET Q q 0 0 0 rg BT 540.12 514.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (Shares no longer being outstanding, which may incentivize our ) Tj ET Q q 0 0 0 rg BT 303.89 502.10 Td (Advisor not to recommend a sale, mer) Tj ET Q q 0 0 0 rg BT 456.72 502.10 Td (ger or other liquidity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (event until our Dealer Manager has been paid all distribution and stockholder servicing fees, because the completion of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (transactions would cause our Dealer Manager to no longer be paid such fees. In evaluating investments and other management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (strategies, the opportunity to earn these fees may lead our ) Tj ET Q q 0 0 0 rg BT 281.93 466.10 Td (Advisor to place undue emphasis on criteria relating to its and its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 454.10 Td (filiates) Tj ET Q q 0 0 0 rg BT 86.89 454.10 Td ( compensation at the expense of other criteria, such as preservation of capital, in order to achieve higher short-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (compensation. Considerations relating to compensation from us to our ) Tj ET Q q 0 0 0 rg BT 335.29 442.10 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 406.48 442.10 Td (filiates could result in decisions that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (are not in the best interests of our stockholders, which could hurt our ability to pay our stockholders distributions or result in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (decline in the value of our stockholders) Tj ET Q q 0 0 0 rg BT 209.82 418.10 Td ( investment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 394.10 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 49.50 382.10 Td (enforcement of agreements between Hines and its af) Tj ET Q q 0 0 0 rg BT 265.13 382.10 Td (filiates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 358.10 Td (Hines and our ) Tj ET Q q 0 0 0 rg BT 131.55 358.10 Td (Advisor manage our day-to-day operations and properties pursuant to an advisory agreement. ) Tj ET Q q 0 0 0 rg BT 510.14 358.10 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (agreement was not negotiated at arm) Tj ET Q q 0 0 0 rg BT 199.16 346.10 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 49.50 334.10 Td (performance. Hines and its af) Tj ET Q q 0 0 0 rg BT 169.83 334.10 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 49.50 322.10 Td (agreement. ) Tj ET Q q 0 0 0 rg BT 98.09 322.10 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 49.50 310.10 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 49.50 298.10 Td (paid to af) Tj ET Q q 0 0 0 rg BT 87.08 298.10 Td (filiates of Hines. ) Tj ET Q q 0 0 0 rg BT 158.27 298.10 Td (These fees may be higher than fees char) Tj ET Q q 0 0 0 rg BT 318.29 298.10 Td (ged by third parties in an arm) Tj ET Q q 0 0 0 rg BT 438.82 298.10 Td (s-length transaction as a result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (of these conflicts.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 262.10 Td (Certain of our of) Tj ET Q q 0 0 0 rg BT 137.05 262.10 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 73.50 238.10 Td (All of our of) Tj ET Q q 0 0 0 rg BT 123.59 238.10 Td (ficers and non-independent directors are also of) Tj ET Q q 0 0 0 rg BT 313.89 238.10 Td (ficers and directors of our ) Tj ET Q q 0 0 0 rg BT 419.13 238.10 Td (Advisor and/or other entities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (controlled by Hines. Some of these entities, including Hines REIT) Tj ET Q q 0 0 0 rg BT 317.05 226.10 Td ( and Hines Global I, may compete with us for investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (and leasing opportunities. ) Tj ET Q q 0 0 0 rg BT 157.36 214.10 Td (These personnel owe fiduciary duties to these other entities and their security holders and these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (duties may from time to time conflict with the fiduciary duties such individuals owe to us and our stockholders. For example, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (conflicts of interest adversely af) Tj ET Q q 0 0 0 rg BT 177.60 190.10 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 67.10 166.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 166.10 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 67.10 154.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 154.10 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 67.10 142.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 142.10 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 67.10 130.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 130.10 Td (investments with Hines and af) Tj ET Q q 0 0 0 rg BT 206.01 130.10 Td (filiates of Hines;) 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 compensation paid to our ) Tj ET Q q 0 0 0 rg BT 203.13 118.10 Td (Advisor; and) 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 (our relationship with Hines in the management of our properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 82.10 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 70.10 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 58.10 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 58.10 Td (filiate rather than us.) 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 /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (Our of) Tj ET Q q 0 0 0 rg BT 94.82 742.25 Td (ficers and directors have limited liability) Tj ET Q q 0 0 0 rg BT 260.27 742.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 718.25 Td (Generally) Tj ET Q q 0 0 0 rg BT 112.27 718.25 Td (, we are obligated under our charter to indemnify our of) Tj ET Q q 0 0 0 rg BT 335.07 718.25 Td (ficers and directors against certain liabilities incurred in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (connection with their services. ) Tj ET Q q 0 0 0 rg BT 176.50 706.25 Td (W) Tj ET Q q 0 0 0 rg BT 185.14 706.25 Td (e enter into indemnification agreements with each of our of) Tj ET Q q 0 0 0 rg BT 422.37 706.25 Td (ficers and directors pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (which we generally agree to indemnify our of) Tj ET Q q 0 0 0 rg BT 232.31 694.25 Td (ficers and directors for any such liabilities that they incur) Tj ET Q q 0 0 0 rg BT 460.29 694.25 Td (. ) Tj ET Q q 0 0 0 rg BT 467.61 694.25 Td (These indemnification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (agreements, as well as the indemnification provisions in our charter) Tj ET Q q 0 0 0 rg BT 319.57 682.25 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 49.50 670.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 670.25 Td (fectively take action against our of) Tj ET Q q 0 0 0 rg BT 195.46 670.25 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 49.50 658.25 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 49.50 646.25 Td (settlement or claim.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 622.25 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 73.50 598.25 Td (Persons holding OP) Tj ET Q q 0 0 0 rg BT 152.58 598.25 Td ( Units have the right to vote on certain amendments to the ) Tj ET Q q 0 0 0 rg BT 386.42 598.25 Td (Agreement of Limited Partnership of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 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 49.50 574.25 Td (that conflicts with the interests of our stockholders. ) Tj ET Q q 0 0 0 rg BT 258.90 574.25 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 49.50 562.25 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 49.50 550.25 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 49.50 526.25 Td (Risks Related to ) Tj ET Q q 0 0 0 rg BT 121.26 526.25 Td (T) Tj ET Q q 0 0 0 rg BT 127.01 526.25 Td (axes) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 502.25 Td (If we fail to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 190.20 502.25 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 49.50 490.25 Td (impacted.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 466.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 466.25 Td (e intend to make an election to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 278.00 466.25 Td ( for U.S. federal income tax purposes for the taxable year ended on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (December31, 2015. ) Tj ET Q q 0 0 0 rg BT 135.40 454.25 Td (W) Tj ET Q q 0 0 0 rg BT 144.04 454.25 Td (e have received the opinion of our U.S. federal income tax counsel, Greenber) Tj ET Q q 0 0 0 rg BT 452.90 454.25 Td (g ) Tj ET Q q 0 0 0 rg BT 460.22 454.25 Td (T) Tj ET Q q 0 0 0 rg BT 465.98 454.25 Td (raurig, LLP) Tj ET Q q 0 0 0 rg BT 511.53 454.25 Td (, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (connection with the Of) Tj ET Q q 0 0 0 rg BT 141.24 442.25 Td (fering and with respect to our qualification as a REIT) Tj ET Q q 0 0 0 rg BT 354.04 442.25 Td (. ) Tj ET Q q 0 0 0 rg BT 361.36 442.25 Td (The opinion of Greenber) Tj ET Q q 0 0 0 rg BT 460.31 442.25 Td (g ) Tj ET Q q 0 0 0 rg BT 467.63 442.25 Td (T) Tj ET Q q 0 0 0 rg BT 473.38 442.25 Td (raurig, LLP) Tj ET Q q 0 0 0 rg BT 519.67 442.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (represents only the view of our counsel based on our counsel) Tj ET Q q 0 0 0 rg BT 296.10 430.25 Td (s review and analysis of existing law and on certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (representations as to factual matters and covenants made by us, including representations relating to the values of our assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (the sources of our income and is not binding on the Internal Revenue Service or any court. Greenber) Tj ET Q q 0 0 0 rg BT 453.36 406.25 Td (g ) Tj ET Q q 0 0 0 rg BT 460.68 406.25 Td (T) Tj ET Q q 0 0 0 rg BT 466.43 406.25 Td (raurig, LLP) Tj ET Q q 0 0 0 rg BT 512.72 406.25 Td ( has no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (obligation to advise us or the holders of our common stock of any subsequent change in the matters stated, represented or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (assumed in its opinion or of any subsequent change in applicable law) Tj ET Q q 0 0 0 rg BT 325.73 382.25 Td (. Furthermore, both the validity of the opinion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (Greenber) Tj ET Q q 0 0 0 rg BT 86.52 370.25 Td (g ) Tj ET Q q 0 0 0 rg BT 93.84 370.25 Td (T) Tj ET Q q 0 0 0 rg BT 99.59 370.25 Td (raurig LLP) Tj ET Q q 0 0 0 rg BT 143.38 370.25 Td ( and our qualification as a REIT) Tj ET Q q 0 0 0 rg BT 271.49 370.25 Td ( will depend on our satisfaction of numerous requirements \(some on an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (annual and quarterly basis\) established under highly technical and complex provisions of the Code, for which there are only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (limited judicial or administrative interpretations, and involves the determination of various factual matters and circumstances ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (not entirely within our control. ) Tj ET Q q 0 0 0 rg BT 177.35 334.25 Td (The complexity of these provisions and of the applicable income tax regulations that have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (promulgated under the Code is greater in the case of a REIT) Tj ET Q q 0 0 0 rg BT 290.07 322.25 Td ( that holds its assets through a partnership, as we do. Moreover) Tj ET Q q 0 0 0 rg BT 544.06 322.25 Td (, no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (assurance can be given that legislation, new regulations, administrative interpretations or court decisions will not change the tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (laws with respect to qualification as a REIT) Tj ET Q q 0 0 0 rg BT 224.54 298.25 Td ( or the U.S. federal income tax consequences of that qualification. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 274.25 Td (If we were to fail to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 225.76 274.25 Td ( in any taxable year:) 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 (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 67.10 238.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 238.25 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 85.10 226.25 Td (at regular corporate rates;) 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 (we would be disqualified from being taxed as a REIT) Tj ET Q q 0 0 0 rg BT 299.03 214.25 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 85.10 202.25 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 67.10 190.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 190.25 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 67.10 178.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 178.25 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 85.10 166.25 Td (may incur as a result of our disqualification.) 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 (W) Tj ET Q q 0 0 0 rg BT 75.65 742.25 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 496.41 742.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 718.25 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 49.50 706.25 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 495.86 706.25 Td ( gross revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (tests; however) Tj ET Q q 0 0 0 rg BT 106.58 694.25 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 49.50 682.25 Td (as non-qualifying income. ) Tj ET Q q 0 0 0 rg BT 159.02 682.25 Td (T) Tj ET Q q 0 0 0 rg BT 164.43 682.25 Td (o reduce the risk of foreign currency gains adversely af) Tj ET Q q 0 0 0 rg BT 384.98 682.25 Td (fecting our REIT) Tj ET Q q 0 0 0 rg BT 453.11 682.25 Td ( qualification, we may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 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 486.12 670.25 Td (fect the timing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 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 49.50 646.25 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 383.37 646.25 Td ( or to avoid U.S. federal and other taxes on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (our income as a result of foreign currency gains.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 610.25 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 49.50 598.25 Td (ability to pay distributions to our stockholders could be adversely af) Tj ET Q q 0 0 0 rg BT 326.54 598.25 Td (fected.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 574.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 574.25 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 49.50 562.25 Td (partnership for federal income tax purposes. In this regard, the Code generally classifies publicly traded partnerships \(as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (defined in Section7704 of the Code\) 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 49.50 538.25 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 49.50 526.25 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 49.50 514.25 Td (transfer and/or repurchase of partnership units in the Operating Partnership. However) Tj ET Q q 0 0 0 rg BT 393.43 514.25 Td (, if the Internal Revenue Service, or IRS, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 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 49.50 490.25 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 49.50 478.25 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 49.50 466.25 Td (Partnership) Tj ET Q q 0 0 0 rg BT 97.83 466.25 Td (s taxable income. In addition, we could fail to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 356.74 466.25 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 49.50 454.25 Td (Operating Partnership would reduce our amount of cash available for distribution to our stockholders.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 430.25 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 73.50 406.25 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 49.50 394.25 Td (shares should generally constitute unrelated business taxable income to a tax-exempt investor) Tj ET Q q 0 0 0 rg BT 423.01 394.25 Td (. However) Tj ET Q q 0 0 0 rg BT 466.76 394.25 Td (, there are certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (exceptions to this rule. In particular:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 358.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 358.25 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 85.10 346.25 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 85.10 334.25 Td (pension trusts, we are required to rely on a special look through rule for purposes of meeting one of the REIT) Tj ET Q q 0 0 0 rg BT 522.30 334.25 Td ( stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 322.25 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 85.10 310.25 Td (unrelated business taxable income;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 298.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 298.25 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 85.10 286.25 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 67.10 274.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 274.25 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 85.10 262.25 Td (benefit associations, 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 85.10 250.25 Td (exempt from federal income taxation under Sections 501\(c\)\(7\), \(9\), \(17\), or \(20\)of the Code may be treated as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 238.25 Td (unrelated business taxable income.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 214.25 Td (Stockholders who participate in our 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 49.50 202.25 Td (distributions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 178.25 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 49.50 166.25 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 49.50 154.25 Td (receive no cash because such distributions are reinvested. In addition, the dif) Tj ET Q q 0 0 0 rg BT 358.66 154.25 Td (ference between the public of) Tj ET Q q 0 0 0 rg BT 476.75 154.25 Td (fering price of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (shares and the amount paid for shares purchased pursuant to our distribution reinvestment plan may be deemed to be taxable as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (income to participants in the plan.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 106.25 Td (Foreign investors may be subject to FIRPT) Tj ET Q q 0 0 0 rg BT 244.73 106.25 Td (A) Tj ET Q q 0 0 0 rg BT 250.84 106.25 Td ( tax on sale of common shares if we are unable to qualify as a ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (domestically controlled REIT) Tj ET Q q 0 0 0 rg BT 179.69 94.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 70.25 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 70.25 Td ( foreign person other than a qualified foreign pension plan disposing of a U.S. real property interest, including shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (of a U.S. corporation whose assets consist principally of U.S. real property interests, is generally subject to a tax, pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (the Foreign Investment in Real Property ) Tj ET Q q 0 0 0 rg BT 212.62 46.25 Td (T) Tj ET Q q 0 0 0 rg BT 218.03 46.25 Td (ax ) Tj ET Q q 0 0 0 rg BT 229.42 46.25 Td (Act, or "FIRPT) Tj ET Q q 0 0 0 rg BT 290.20 46.25 Td (A, on the gain recognized on the disposition. Such FIRPT) Tj ET Q q 0 0 0 rg BT 527.70 46.25 Td (A) Tj ET Q q 0 0 0 rg BT 534.37 46.25 Td ( tax ) 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 49.50 742.10 Td (does not apply) Tj ET Q q 0 0 0 rg BT 107.18 742.10 Td (, however) Tj ET Q q 0 0 0 rg BT 146.20 742.10 Td (, to the disposition of stock in a REIT) Tj ET Q q 0 0 0 rg BT 296.29 742.10 Td ( if the REIT) Tj ET Q q 0 0 0 rg BT 344.15 742.10 Td ( is domestically controlled. ) Tj ET Q q 0 0 0 rg BT 465.78 742.10 Td (A) Tj ET Q q 0 0 0 rg BT 472.45 742.10 Td ( REIT) Tj ET Q q 0 0 0 rg BT 496.99 742.10 Td ( is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (domestically controlled if less than 50% of the REIT) Tj ET Q q 0 0 0 rg BT 272.21 730.10 Td (s capital stock, by value, has been owned directly or indirectly by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (persons who are not qualifying U.S. persons during a continuous five-year period ending on the date of disposition or) Tj ET Q q 0 0 0 rg BT 519.01 718.10 Td (, if shorter) Tj ET Q q 0 0 0 rg BT 559.98 718.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (during the entire period of the REIT) Tj ET Q q 0 0 0 rg BT 196.68 706.10 Td (s existence.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 682.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 682.10 Td (e cannot assure our stockholders that we will qualify as a domestically controlled REIT) Tj ET Q q 0 0 0 rg BT 439.90 682.10 Td (. If we were to fail to so ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (qualify) Tj ET Q q 0 0 0 rg BT 77.18 670.10 Td (, gain realized by foreign investors other than certain qualified foreign pension plans on a sale of our common shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (would be subject to FIRPT) Tj ET Q q 0 0 0 rg BT 156.47 658.10 Td (A) Tj ET Q q 0 0 0 rg BT 163.14 658.10 Td ( tax \(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 49.50 646.10 Td (investor did not at any time during a specified testing period directly or indirectly own more than 5% \(the threshold increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (10% after December 18, 2015\) of the value of our outstanding common shares\). Our common shares are not currently traded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (on an established securities market, and no assurance can be given that they will ever be so traded.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 598.10 Td (In certain circumstances, we may be subject to federal and state income taxes as a REIT or other state or local income ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (taxes, which would 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 73.50 562.10 Td (Even if we qualify and maintain our status as a REIT) Tj ET Q q 0 0 0 rg BT 284.92 562.10 Td (, we may be subject to federal income taxes or state taxes. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (example, if we have net income from a prohibited transaction, such income will be subject to a 100% tax. ) Tj ET Q q 0 0 0 rg BT 485.56 550.10 Td (W) Tj ET Q q 0 0 0 rg BT 494.20 550.10 Td (e may not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (able to make suf) Tj ET Q q 0 0 0 rg BT 115.13 538.10 Td (ficient distributions to avoid paying federal income tax and/or the 4% excise tax that generally applies to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (income retained by a REIT) Tj ET Q q 0 0 0 rg BT 157.05 526.10 Td (. ) Tj ET Q q 0 0 0 rg BT 164.37 526.10 Td (W) Tj ET Q q 0 0 0 rg BT 173.01 526.10 Td (e may also decide to retain income we earn from the sale or other disposition of our property and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (pay income tax directly on such income. In that event, our stockholders would be treated as if they earned that income and paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (the tax on it directly) Tj ET Q q 0 0 0 rg BT 129.38 502.10 Td (. However) Tj ET Q q 0 0 0 rg BT 173.13 502.10 Td (, stockholders that are tax-exempt, such as charities or qualified pension plans, may have no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (benefit from their deemed payment of such tax liability) Tj ET Q q 0 0 0 rg BT 269.89 490.10 Td (. ) Tj ET Q q 0 0 0 rg BT 277.21 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 285.85 490.10 Td (e may also be subject to state and local taxes on our income or ) 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 (, either directly or at the level of the Operating Partnership or at the level of the other companies through which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (indirectly own our assets.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 442.10 Td (W) Tj ET Q q 0 0 0 rg BT 75.65 442.10 Td (e may enter into certain hedging transactions which may have a potential impact on our REIT status.) 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 may enter into certain hedging transactions with respect to one or more of our assets or liabilities. Our hedging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (activities may include entering into interest rate and/or foreign currency swaps, caps and floors, options to purchase these items, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (and futures and forward contracts. ) Tj ET Q q 0 0 0 rg BT 191.21 394.10 Td (The gross income tests generally exclude any income or gain from a hedging or similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (transaction entered into by the REIT) Tj ET Q q 0 0 0 rg BT 195.11 382.10 Td ( primarily to manage the risk of interest rate, price changes or currency fluctuations with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (respect to borrowings made or to be made to acquire or carry real estate assets or to manage the risk of currency fluctuations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (with respect to an item of income or gain that would be qualifying income under the 75% or 95% gross income test \(or any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (property which generates such income or gain\), provided we properly identify such hedges and other transactions in the manner ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (required by the Code. ) Tj ET Q q 0 0 0 rg BT 140.96 334.10 Td (T) Tj ET Q q 0 0 0 rg BT 146.37 334.10 Td (o the extent that we do not properly identify such transactions as hedges or we hedge with other types ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (of financial instruments, or hedge other types of indebtedness, the income from those transactions is likely to be treated as non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (qualifying income for purposes of the gross income tests and may af) Tj ET Q q 0 0 0 rg BT 322.86 310.10 Td (fect our ability to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 464.58 310.10 Td (. In addition, to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (extent that our position in a hedging transaction has positive value, it may be treated as an asset that does not qualify for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (purposes of the gross asset requirements applicable to REIT) Tj ET Q q 0 0 0 rg BT 288.74 286.10 Td (s. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 262.10 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 49.50 250.10 Td (status as a REIT) Tj ET Q q 0 0 0 rg BT 117.21 250.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 226.10 Td (Even if we maintain our status as a REIT) Tj ET Q q 0 0 0 rg BT 237.16 226.10 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 49.50 214.10 Td (States may be subject to income taxation by jurisdictions in which such assets are located. Our cash available for distribution to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (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 67.50 178.10 Td (Dividends payable by REIT) Tj ET Q q 0 0 0 rg BT 179.62 178.10 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 73.50 154.10 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 49.50 142.10 Td (trusts or estates is currently 20%. Dividends payable by REIT) Tj ET Q q 0 0 0 rg BT 298.47 142.10 Td (s, however) Tj ET Q q 0 0 0 rg BT 341.39 142.10 Td (, generally are not eligible for the reduced rates. ) Tj ET Q q 0 0 0 rg BT 537.79 142.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 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 49.50 118.10 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 560.02 118.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (corporations that pay dividends, which could adversely af) Tj ET Q q 0 0 0 rg BT 280.36 106.10 Td (fect the value of our common shares.) 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 (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 73.50 718.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 718.25 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 422.10 718.25 Td (W) Tj ET Q q 0 0 0 rg BT 430.74 718.25 Td (e will use commercially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (reasonable ef) Tj ET Q q 0 0 0 rg BT 102.34 706.25 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 49.50 694.25 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 49.50 682.25 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 49.50 670.25 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 49.50 658.25 Td (depreciation and cost recovery relating to such property would be disallowed. ) Tj ET Q q 0 0 0 rg BT 365.05 658.25 Td (W) Tj ET Q q 0 0 0 rg BT 373.69 658.25 Td (e might fail to satisfy the REIT) Tj ET Q q 0 0 0 rg BT 497.93 658.25 Td ( qualification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (asset tests or the income tests and, consequently) Tj ET Q q 0 0 0 rg BT 258.78 646.25 Td (, lose our REIT) Tj ET Q q 0 0 0 rg BT 320.26 646.25 Td ( status ef) Tj ET Q q 0 0 0 rg BT 355.62 646.25 Td (fective with the year of recharacterization if a sale-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (leaseback transaction were so recharacterized. ) Tj ET Q q 0 0 0 rg BT 238.56 634.25 Td (Alternatively) Tj ET Q q 0 0 0 rg BT 290.67 634.25 Td (, the amount of our REIT) Tj ET Q q 0 0 0 rg BT 391.58 634.25 Td ( taxable income could be recalculated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (which might also cause us to fail to meet the distribution requirement for a taxable year) Tj ET Q q 0 0 0 rg BT 398.56 622.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 598.25 Td (Investments in other REIT) Tj ET Q q 0 0 0 rg BT 176.88 598.25 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 49.50 586.25 Td (such entities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 562.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 562.25 Td (e may invest in the securities of other REIT) Tj ET Q q 0 0 0 rg BT 255.83 562.25 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 49.50 550.25 Td (any such REIT) Tj ET Q q 0 0 0 rg BT 109.30 550.25 Td ( or partnership may fail to satisfy the requirements to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 394.88 550.25 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 49.50 538.25 Td (any given taxable year) Tj ET Q q 0 0 0 rg BT 139.18 538.25 Td (. In the case of a REIT) Tj ET Q q 0 0 0 rg BT 231.18 538.25 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 49.50 526.25 Td (qualify as a REIT) Tj ET Q q 0 0 0 rg BT 120.13 526.25 Td ( may require such REIT) Tj ET Q q 0 0 0 rg BT 216.03 526.25 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 49.50 514.25 Td (distributions to us, and may render it ineligible to elect REIT) Tj ET Q q 0 0 0 rg BT 292.88 514.25 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 49.50 502.25 Td (fails to so qualify) Tj ET Q q 0 0 0 rg BT 118.56 502.25 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 49.50 490.25 Td (entity) Tj ET Q q 0 0 0 rg BT 75.05 490.25 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 49.50 478.25 Td (ability to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 157.90 478.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 454.25 Td (Complying with the REIT requirements may cause us to forego otherwise attractive opportunities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 430.25 Td (T) Tj ET Q q 0 0 0 rg BT 78.91 430.25 Td (o qualify as a REIT) Tj ET Q q 0 0 0 rg BT 157.04 430.25 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 49.50 418.25 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 49.50 406.25 Td (the ownership of shares of our common stock. ) Tj ET Q q 0 0 0 rg BT 239.28 406.25 Td (W) Tj ET Q q 0 0 0 rg BT 247.92 406.25 Td (e may be required to forego otherwise attractive investments or make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 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 527.28 394.25 Td (Thus, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (compliance with the REIT) Tj ET Q q 0 0 0 rg BT 155.12 382.25 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 67.50 358.25 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 73.50 334.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 334.25 Td (e must ensure that at the end of each calendar quarter) Tj ET Q q 0 0 0 rg BT 294.41 334.25 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 49.50 322.25 Td (items, government securities and qualified REIT) Tj ET Q q 0 0 0 rg BT 243.71 322.25 Td ( real estate assets in order to ensure our qualification as a REIT) Tj ET Q q 0 0 0 rg BT 495.65 322.25 Td (. ) Tj ET Q q 0 0 0 rg BT 502.97 322.25 Td (The remainder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 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 49.50 298.25 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 49.50 286.25 Td (one issuer) Tj ET Q q 0 0 0 rg BT 89.22 286.25 Td (. In addition, in general, no more than 5% of the value of our assets \(other than government securities and qualified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (real estate assets\) can consist of the securities of any one issuer) Tj ET Q q 0 0 0 rg BT 301.51 274.25 Td (, and no more than 25% of the value of our total securities \(20% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (commencing after December 31, 2017\) can be represented by securities of one or more taxable REIT) Tj ET Q q 0 0 0 rg BT 453.60 262.25 Td ( subsidiaries. If we fail to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (comply with these requirements at the end of any calendar quarter) Tj ET Q q 0 0 0 rg BT 313.44 250.25 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 49.50 238.25 Td (the calendar quarter to avoid losing our REIT) Tj ET Q q 0 0 0 rg BT 231.20 238.25 Td ( status and suf) Tj ET Q q 0 0 0 rg BT 287.96 238.25 Td (fering adverse tax consequences. ) Tj ET Q q 0 0 0 rg BT 424.02 238.25 Td (As a result, we may be required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (liquidate otherwise attractive investments.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 202.25 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 49.50 190.25 Td (real estate asset could adversely af) Tj ET Q q 0 0 0 rg BT 190.68 190.25 Td (fect our ability to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 336.15 190.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 166.25 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 49.50 154.25 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 514.74 154.25 Td ( tests, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 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 462.53 142.25 Td ( 75% income test. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (Although the Revenue Procedure provides a safe harbor on which taxpayers may rely) Tj ET Q q 0 0 0 rg BT 390.96 130.25 Td (, it does not prescribe rules of substantive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (tax law) Tj ET Q q 0 0 0 rg BT 78.01 118.25 Td (. ) Tj ET Q q 0 0 0 rg BT 85.33 118.25 Td (W) Tj ET Q q 0 0 0 rg BT 93.96 118.25 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 49.50 106.25 Td (various requirements applicable to our qualification as a REIT) Tj ET Q q 0 0 0 rg BT 298.12 106.25 Td (. ) Tj ET Q q 0 0 0 rg BT 305.44 106.25 Td (T) Tj ET Q q 0 0 0 rg BT 310.85 106.25 Td (o the extent, however) Tj ET Q q 0 0 0 rg BT 396.53 106.25 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 94.25 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 82.25 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 82.25 Td (. Similarly any other loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 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 58.25 Td (REIT) Tj ET Q q 0 0 0 rg BT 71.54 58.25 Td ( qualification tests and therefore could adversely af) Tj ET Q q 0 0 0 rg BT 275.99 58.25 Td (fect our ability to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 417.71 58.25 Td (.) 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 /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 742.25 Td (Legislative or regulatory action could adversely af) Tj ET Q q 0 0 0 rg BT 273.40 742.25 Td (fect us and/or our investors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 718.25 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 49.50 706.25 Td (laws applicable to the qualification and taxation of REIT) Tj ET Q q 0 0 0 rg BT 275.95 706.25 Td (s and to investments in REIT) Tj ET Q q 0 0 0 rg BT 391.63 706.25 Td (s and similar entities. ) Tj ET Q q 0 0 0 rg BT 481.06 706.25 Td (Additional changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (to tax laws are likely to continue to occur in the future and may be given retroactive or prospective ef) Tj ET Q q 0 0 0 rg BT 454.45 694.25 Td (fect, and we cannot assure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (our stockholders that any such changes will not adversely af) Tj ET Q q 0 0 0 rg BT 290.09 682.25 Td (fect how we are taxed or the taxation of a stockholder) Tj ET Q q 0 0 0 rg BT 504.45 682.25 Td (. ) Tj ET Q q 0 0 0 rg BT 511.39 682.25 Td (Any such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (changes could have an adverse ef) Tj ET Q q 0 0 0 rg BT 182.86 670.25 Td (fect on us and on an investment in shares of our common stock. ) Tj ET Q q 0 0 0 rg BT 442.35 670.25 Td (W) Tj ET Q q 0 0 0 rg BT 450.99 670.25 Td (e ur) Tj ET Q q 0 0 0 rg BT 466.08 670.25 Td (ge our stockholders to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 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 49.50 646.25 Td (proposals and their potential ef) Tj ET Q q 0 0 0 rg BT 173.17 646.25 Td (fect on an investment in shares of our common stock.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (Risks Related to ERISA) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 598.25 Td (If our assets are deemed to be plan assets under ERISA, we, our ) Tj ET Q q 0 0 0 rg BT 333.54 598.25 Td (Advisor and the fiduciaries of investing ERISA) Tj ET Q q 0 0 0 rg BT 526.91 598.25 Td ( plans ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (may be exposed to liabilities under T) Tj ET Q q 0 0 0 rg BT 199.67 586.25 Td (itle I of ERISA) Tj ET Q q 0 0 0 rg BT 261.08 586.25 Td ( and the Internal Revenue Code.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 562.25 Td (In some circumstances where an ERISA) Tj ET Q q 0 0 0 rg BT 234.29 562.25 Td ( plan holds an interest in an entity) Tj ET Q q 0 0 0 rg BT 368.89 562.25 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 49.50 550.25 Td (attributable to that interest are deemed to be ERISA) Tj ET Q q 0 0 0 rg BT 256.10 550.25 Td ( plan assets unless an exception applies. ) Tj ET Q q 0 0 0 rg BT 420.60 550.25 Td (This is known as the look-through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 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 49.50 526.25 Td (administrators, and of parties in interest and disqualified persons, under ) Tj ET Q q 0 0 0 rg BT 338.14 526.25 Td (T) Tj ET Q q 0 0 0 rg BT 343.89 526.25 Td (itle I of ERISA) Tj ET Q q 0 0 0 rg BT 404.17 526.25 Td ( and Section4975 of the Code, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 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 449.66 514.25 Td ( and the Code. ) Tj ET Q q 0 0 0 rg BT 512.24 514.25 Td (W) Tj ET Q q 0 0 0 rg BT 520.88 514.25 Td (e believe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 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 446.99 502.25 Td (fered securities that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 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 431.43 490.25 Td (T) Tj ET Q q 0 0 0 rg BT 437.19 490.25 Td (reasury) Tj ET Q q 0 0 0 rg BT 465.97 490.25 Td (, because we have 100 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (stockholders that are independent of us and one another) Tj ET Q q 0 0 0 rg BT 271.65 478.25 Td (. ) Tj ET Q q 0 0 0 rg BT 278.97 478.25 Td (W) Tj ET Q q 0 0 0 rg BT 287.61 478.25 Td (e note, however) Tj ET Q q 0 0 0 rg BT 350.79 478.25 Td (, that because certain limitations are imposed upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (the transferability of shares so that we may qualify as a REIT) Tj ET Q q 0 0 0 rg BT 293.96 466.25 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 49.50 454.25 Td (may not apply) Tj ET Q q 0 0 0 rg BT 106.06 454.25 Td (. If that is the case, and if our ) Tj ET Q q 0 0 0 rg BT 227.14 454.25 Td (Advisor or we are exposed to liability under ERISA) Tj ET Q q 0 0 0 rg BT 434.32 454.25 Td ( or the Code, our performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (and results of operations could be adversely af) Tj ET Q q 0 0 0 rg BT 235.09 442.25 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 49.50 430.25 Td (might constitute an inef) Tj ET Q q 0 0 0 rg BT 144.02 430.25 Td (fective delegation of fiduciary responsibility to our ) Tj ET Q q 0 0 0 rg BT 349.80 430.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 381.62 430.25 Td (, and expose the fiduciary of the benefit plan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (to co-fiduciary liability under ERISA) Tj ET Q q 0 0 0 rg BT 198.36 418.25 Td ( for any breach by our ) Tj ET Q q 0 0 0 rg BT 288.88 418.25 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 49.50 406.25 Td (Advisor or we are exposed to liability under ERISA) Tj ET Q q 0 0 0 rg BT 256.68 406.25 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 49.50 394.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 394.25 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 49.50 382.25 Td (the impact of ERISA) Tj ET Q q 0 0 0 rg BT 133.10 382.25 Td ( and the Code on such investors) Tj ET Q q 0 0 0 rg BT 262.89 382.25 Td ( investment and our performance.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 358.25 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 49.50 346.25 Td (IRAs, investing in our common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 322.25 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 49.50 310.25 Td (plan, they should satisfy themselves that:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 286.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 286.25 Td (their investment is consistent with their fiduciary obligations under ERISA) Tj ET Q q 0 0 0 rg BT 384.22 286.25 Td ( and the Code;) 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 (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 85.10 262.25 Td (their plan) Tj ET Q q 0 0 0 rg BT 125.92 262.25 Td (s investment policy;) 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 (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 85.10 238.25 Td (ERISA;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.10 226.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 226.25 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 67.10 214.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 214.25 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 67.10 202.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.10 202.25 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 417.50 202.25 Td ( requirements; and) 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 (their investment will not constitute a prohibited transaction under Section406 of ERISA) Tj ET Q q 0 0 0 rg BT 438.37 190.25 Td ( or Section4975 of the Code.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 166.25 Td (Item1B.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 86.66 166.25 Td (Unresolved Staf) Tj ET Q q 0 0 0 rg BT 157.31 166.25 Td (f Comments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 142.25 Td (Not applicable.) 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 33.60 Td (38) 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, 2015) 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 (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.85 716.25 Td ( real estate investments, 2819 Loker ) Tj ET Q q 0 0 0 rg BT 380.20 716.25 Td (A) Tj ET Q q 0 0 0 rg BT 386.67 716.25 Td (venue East and Bishop) Tj ET Q q 0 0 0 rg BT 480.83 716.25 Td (s Square. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.40 704.25 Td (, we acquired our third real estate investment, the Domain ) Tj ET Q q 0 0 0 rg BT 333.22 704.25 Td (Apartments, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.15 704.25 Td (January 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.75 704.25 Td (. ) Tj ET Q q 0 0 0 rg BT 456.07 704.25 Td (The following table ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.25 Td (provides additional information regarding each of these properties. ) Tj ET Q q 0 0 0 rg BT 318.95 692.25 Td (The information in this table is presented as of December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.25 Td (31, 2015 for properties acquired prior to December 31, 2015 and January 29, 2016, the date of acquisition for the Domain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.25 Td (Apartments, which was acquired after December 31, 2015.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 628.75 103.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 153.00 628.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 157.00 628.75 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 628.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 628.75 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 628.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 628.75 88.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 628.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 628.75 83.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 628.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.00 628.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 628.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.00 628.75 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 602.75 103.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 153.00 602.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 157.00 602.75 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 602.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 602.75 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 602.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 602.75 88.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 602.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 602.75 83.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 602.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.00 602.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 517.00 602.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.00 602.75 42.00 -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 50 628.75 m 153 628.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157 628.75 m 229 628.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 628.75 m 283 628.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 628.75 m 375 628.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 628.75 m 462 628.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466 628.75 m 517 628.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 628.75 m 563 628.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466 589.75 m 517 589.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466 577.75 m 517 577.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 466 575.75 m 517 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 589.75 m 563 589.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 577.75 m 563 577.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521 575.75 m 563 575.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 632.98 Td (Pr) Tj ET Q q 0 0 0 rg BT 60.79 632.98 Td (operty ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 85.01 632.98 Td ( ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 87.01 636.61 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 159.50 632.98 Td (Location) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 238.35 640.98 Td (Investment) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.10 632.98 Td (Type) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.65 648.98 Td (Date ) Tj ET Q q 0 0 0 rg BT 315.20 648.98 Td (Acquir) Tj ET Q q 0 0 0 rg BT 339.06 648.98 Td (ed/ Net ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 299.20 640.98 Td (Pur) Tj ET Q q 0 0 0 rg BT 311.94 640.98 Td (chase Price \(in ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 311.55 632.98 Td (millions\) ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 343.33 636.61 Td (\(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.55 640.98 Td (Estimated Going-in ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.75 632.98 Td (Capitalization Rate ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 451.19 636.61 Td (\(3\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.85 640.98 Td (Leasable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 470.50 632.98 Td (Square Feet) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 528.45 640.98 Td (Percent) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 529.50 632.98 Td (Leased) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 620.00 Td (2819 Loker Avenue East) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 159.50 620.00 Td (Carlsbad, California) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 242.15 620.00 Td (Industrial) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.25 620.00 Td (12/2014; $25.4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.65 620.00 Td (6.5%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.75 620.00 Td (161,310) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.80 620.00 Td (100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 620.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 607.00 Td (Bishops Square) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 159.50 607.00 Td (Dublin, Ireland) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 247.35 607.00 Td (Office) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.25 607.00 Td (3/2015; $103.2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.65 607.00 Td (6.1%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.75 607.00 Td (153,569) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.80 607.00 Td (100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 607.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 594.00 Td (Domain Apartments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 159.50 594.00 Td (Las Vegas, Nevada) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 236.80 594.00 Td (Multi-family) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.25 594.00 Td (1/2016; $58.1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.65 594.00 Td (5.5%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.75 594.00 Td (331,038) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 594.00 Td (95) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 594.00 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 580.98 Td (Total for All Investments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.50 581.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.75 581.00 Td (645,917) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 581.00 Td (97) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 581.00 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.25 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 553.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.22 553.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.81 553.25 Td (, we ef) Tj ET Q q 0 0 0 rg BT 187.55 553.25 Td (fectively owned a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.13 553.25 Td (99.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.96 553.25 Td ( interest in the two commercial properties acquired prior to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 541.25 Td (December 31, 2015 through our ownership interest in the Operating Partnership as its sole general partner) Tj ET Q q 0 0 0 rg BT 490.72 541.25 Td (. Hines Global ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 529.25 Td (REIT) Tj ET Q q 0 0 0 rg BT 89.54 529.25 Td ( II ) Tj ET Q q 0 0 0 rg BT 100.64 529.25 Td (Associates Limited Partnership \(HALP) Tj ET Q q 0 0 0 rg BT 261.63 529.25 Td ( II\), an af) Tj ET Q q 0 0 0 rg BT 303.09 529.25 Td (filiate of Hines, owned the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.99 529.25 Td (0.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.82 529.25 Td ( interest in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 517.25 Td (Operating Partnership.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.25 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 493.25 Td (The net purchase price for Bishop) Tj ET Q q 0 0 0 rg BT 206.06 493.25 Td (s Square was denominated in Euros and has been translated at an exchange rate based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 481.25 Td (the rate in ef) Tj ET Q q 0 0 0 rg BT 117.57 481.25 Td (fect on the acquisition date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.25 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 457.25 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 67.50 445.25 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 67.50 433.25 Td (Property revenues in excess of expenses includes all projected operating revenues \(rental income, tenant reimbursements, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 421.25 Td (parking and any other property-related income\) less all projected operating expenses \(property operating and maintenance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 409.25 Td (expenses, property taxes, insurance and property management fees\). ) Tj ET Q q 0 0 0 rg BT 344.99 409.25 Td (The projected property revenues in excess of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 397.25 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 499.77 397.25 Td (, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 385.25 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 67.50 373.25 Td (properties.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 349.25 Td (2819 Loker ) Tj ET Q q 0 0 0 rg BT 98.57 349.25 Td (A) Tj ET Q q 0 0 0 rg BT 104.50 349.25 Td (venue East) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 325.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.22 325.25 Td (December17, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.81 325.25 Td (, we acquired 2819 Loker ) Tj ET Q q 0 0 0 rg BT 265.21 325.25 Td (A) Tj ET Q q 0 0 0 rg BT 271.69 325.25 Td (venue East, a Class ) Tj ET Q q 0 0 0 rg BT 350.84 325.25 Td (A) Tj ET Q q 0 0 0 rg BT 357.51 325.25 Td ( industrial building located in Carlsbad, California. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.25 Td (2819 Loker ) Tj ET Q q 0 0 0 rg BT 97.83 313.25 Td (A) Tj ET Q q 0 0 0 rg BT 104.30 313.25 Td (venue East was constructed in 1998 and consists of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.76 313.25 Td (161,310) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.26 313.25 Td ( square feet of net rentable area that is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.90 313.25 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.23 313.25 Td ( leased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.25 Td (the ) Tj ET Q q 0 0 0 rg BT 63.67 301.25 Td (Acushnet Company) Tj ET Q q 0 0 0 rg BT 142.17 301.25 Td (, the parent company of ) Tj ET Q q 0 0 0 rg BT 239.18 301.25 Td (T) Tj ET Q q 0 0 0 rg BT 244.93 301.25 Td (itleist, FootJoy) Tj ET Q q 0 0 0 rg BT 303.74 301.25 Td (, BV) Tj ET Q q 0 0 0 rg BT 321.71 301.25 Td (-V) Tj ET Q q 0 0 0 rg BT 330.97 301.25 Td (okey Design, Scotty Cameron, Pinnacle, and the ) Tj ET Q q 0 0 0 rg BT 526.86 301.25 Td (T) Tj ET Q q 0 0 0 rg BT 532.62 301.25 Td (itleist ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.25 Td (Performance Institute, under a lease that expires in July 2019.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 265.25 Td (Bishop) Tj ET Q q 0 0 0 rg BT 80.99 265.25 Td (s Square) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 241.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.22 241.25 Td (March3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.82 241.25 Td (, we acquired Bishop) Tj ET Q q 0 0 0 rg BT 228.02 241.25 Td (s Square, a Class ) Tj ET Q q 0 0 0 rg BT 297.74 241.25 Td (A) Tj ET Q q 0 0 0 rg BT 304.41 241.25 Td ( of) Tj ET Q q 0 0 0 rg BT 315.06 241.25 Td (fice building located in Dublin, Ireland. Bishop) Tj ET Q q 0 0 0 rg BT 509.74 241.25 Td (s Square was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.25 Td (constructed in 2001 and consists of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.81 229.25 Td (153,569) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.31 229.25 Td ( square feet of net rentable area that is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.95 229.25 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.28 229.25 Td ( leased to five tenants. ) Tj ET Q q 0 0 0 rg BT 497.24 229.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.25 Td (Commissioners of Public ) Tj ET Q q 0 0 0 rg BT 152.93 217.25 Td (W) Tj ET Q q 0 0 0 rg BT 161.57 217.25 Td (orks in Ireland, a state agency of Ireland, leases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.99 217.25 Td (90,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.49 217.25 Td ( square feet or approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.16 217.25 Td (59%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.49 217.25 Td (, of the net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.25 Td (rentable area of Bishop) Tj ET Q q 0 0 0 rg BT 145.30 205.25 Td (s Square, under a lease that expires in January 2028. Further) Tj ET Q q 0 0 0 rg BT 388.44 205.25 Td (, International Financial Data Services, an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.25 Td (investor record-keeping and transfer agency provider) Tj ET Q q 0 0 0 rg BT 261.51 193.25 Td (, leases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.88 193.25 Td (32,916) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.38 193.25 Td ( square feet or approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.06 193.25 Td (21%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.39 193.25 Td (, of the net rentable area ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.25 Td (of Bishop) Tj ET Q q 0 0 0 rg BT 91.45 181.25 Td (s Square, under a lease that expires in June 2024. ) Tj ET Q q 0 0 0 rg BT 292.23 181.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 342.13 181.25 Td (, News Corp UK & Ireland Limited, a diversified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.25 Td (media and information services company) Tj ET Q q 0 0 0 rg BT 213.80 169.25 Td (, leases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.17 169.25 Td (16,153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.67 169.25 Td ( square feet, or approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.85 169.25 Td (1) Tj ET Q q 0 0 0 rg BT 399.48 169.25 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.81 169.25 Td (, of the net rentable area of Bishop) Tj ET Q q 0 0 0 rg BT 553.87 169.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 157.25 Td (Square, under a lease that expires in ) Tj ET Q q 0 0 0 rg BT 195.56 157.25 Td (August 2027. ) Tj ET Q q 0 0 0 rg BT 254.27 157.25 Td (The remaining space is leased to two tenants, neither of which leases more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.25 Td (than 10% of the net rentable area of Bishop) Tj ET Q q 0 0 0 rg BT 226.11 145.25 Td (s Square.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 121.25 Td (Domain ) Tj ET Q q 0 0 0 rg BT 84.97 121.25 Td (Apartments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 97.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.22 97.25 Td (January29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.82 97.25 Td (, we acquired the Domain ) Tj ET Q q 0 0 0 rg BT 255.79 97.25 Td (Apartments, a multi-family community located in Las ) Tj ET Q q 0 0 0 rg BT 473.89 97.25 Td (V) Tj ET Q q 0 0 0 rg BT 480.00 97.25 Td (egas, Nevada. ) Tj ET Q q 0 0 0 rg BT 540.63 97.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 85.25 Td (apartment community consists of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.03 85.25 Td (308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.03 85.25 Td ( units with an average unit size of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.21 85.25 Td (1,075) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.71 85.25 Td ( square feet located on a 15.5 acre site. ) Tj ET Q q 0 0 0 rg BT 519.46 85.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.25 Td (community features certain amenities, such as a fitness center) Tj ET Q q 0 0 0 rg BT 295.95 73.25 Td (, resort-style swimming pool, movie theater) Tj ET Q q 0 0 0 rg BT 470.24 73.25 Td (, electric vehicle ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 61.25 Td (char) Tj ET Q q 0 0 0 rg BT 66.53 61.25 Td (ging stations and bicycle rentals. ) Tj ET Q q 0 0 0 rg BT 202.15 61.25 Td (The community) Tj ET Q q 0 0 0 rg BT 268.52 61.25 Td (s construction was completed in January 2014 and was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.42 61.25 Td (95%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.75 61.25 Td ( leased with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 49.25 Td (an average ef) Tj ET Q q 0 0 0 rg BT 102.61 49.25 Td (fective monthly rental rate of $1,252 per unit as of the date of acquisition. ) Tj ET Q q 0 0 0 rg BT 402.24 49.25 Td (A) Tj ET Q q 0 0 0 rg BT 408.72 49.25 Td (verage ef) Tj ET Q q 0 0 0 rg BT 445.46 49.25 Td (fective monthly rental rate ) 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 33.60 Td (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 740.10 Td (per unit is calculated as the monthly contractual base rent excluding char) Tj ET Q q 0 0 0 rg BT 340.60 740.10 Td (ges for storage, parking, pets and other miscellaneous ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 728.10 Td (amounts, net of free rent, divided by the average units leased.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 704.10 Td (Investment T) Tj ET Q q 0 0 0 rg BT 103.29 704.10 Td (ype and Market Concentration) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 680.10 Td (Our portfolio is comprised of investments in a variety of real estate asset classes, including of) Tj ET Q q 0 0 0 rg BT 441.67 680.10 Td (fice, industrial and multi-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (family properties. ) Tj ET Q q 0 0 0 rg BT 125.41 668.10 Td (The following chart depicts the percentage of our portfolio) Tj ET Q q 0 0 0 rg BT 363.10 668.10 Td (s investment types based on our pro-rata share of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (the estimated value of each of our investments as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.43 656.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.02 656.10 Td ( and includes the ef) Tj ET Q q 0 0 0 rg BT 415.58 656.10 Td (fect of our acquisition of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (Domain ) Tj ET Q q 0 0 0 rg BT 83.67 644.10 Td (Apartments in January 2016. ) Tj ET Q q 0 0 0 rg BT 204.02 644.10 Td (The estimated values of our real estate property investments were based on their net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (purchase prices.) Tj ET Q /GS0 gs q 474.00 0 0 174.00 78.00 441.10 cm /I18 Do Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (Lease Expirations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 398.10 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 49.50 386.10 Td (each of the years ending December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.76 386.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.76 386.10 Td ( through December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.45 386.10 Td (2025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.45 386.10 Td ( and thereafter for both of the commercial properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (in which we owned an interest as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.57 374.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.15 374.10 Td (, and does not include the ef) Tj ET Q q 0 0 0 rg BT 386.44 374.10 Td (fect of our acquisition of the Domain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (Apartments in January 2016. ) Tj ET Q q 0 0 0 rg BT 169.85 362.10 Td (The table also shows the approximate leasable square feet represented by the applicable lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (expirations. ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 293.60 105.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 155.00 293.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 159.00 293.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 293.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 293.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 293.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 293.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 293.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 293.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 293.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 293.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 265.60 105.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 155.00 265.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 159.00 265.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 265.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 265.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 265.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 265.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 265.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 265.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 265.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 265.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 237.60 105.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 155.00 237.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 159.00 237.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 237.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 237.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 237.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 237.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 237.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 237.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 237.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 237.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 209.60 105.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 155.00 209.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 159.00 209.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 209.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 209.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 209.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 209.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 209.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 209.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 209.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 209.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 181.60 105.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 155.00 181.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 159.00 181.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 181.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 181.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 181.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 181.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 181.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 181.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 181.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 181.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 153.60 105.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 155.00 153.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 159.00 153.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 153.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 153.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 153.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 153.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 153.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 153.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 153.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 153.60 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 223 325.6 m 305 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 325.6 m 309 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309 325.6 m 391 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 293.6 m 155 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 159 293.6 m 219 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223 293.6 m 305 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309 293.6 m 391 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395 293.6 m 477 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 293.6 m 563 293.6 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 330.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 161.50 330.06 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 279.20 330.05 Td (Leasable Area) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 330.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.50 330.06 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 93.05 298.05 Td (Year) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 167.70 307.05 Td (Number of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 175.75 298.05 Td (Leases) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 238.05 307.05 Td (Approximate) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 240.45 298.05 Td (Square Feet) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 319.05 307.05 Td (Percent of Total) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 322.20 298.05 Td (Leasable Area) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 411.10 316.05 Td (Annual Base) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 402.50 307.05 Td (Rental Income of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 404.60 298.05 Td (Expiring Leases) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 491.05 316.05 Td (Percent of Total) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 497.10 307.05 Td (Annual Base) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 493.35 298.05 Td (Rental Income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 284.06 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.50 284.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.50 284.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 284.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 284.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 284.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.50 284.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 284.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 284.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 270.06 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.00 270.06 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.75 270.06 Td (16,153) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.75 270.06 Td (5.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 270.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 270.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.25 270.06 Td (518,379) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.75 270.06 Td (6.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 270.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 256.06 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.50 256.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.50 256.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 256.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 256.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 256.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.50 256.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 256.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 256.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 242.06 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.00 242.06 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 272.25 242.06 Td (161,310) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.25 242.06 Td (51.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 242.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 242.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.50 242.06 Td (1,900,582) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 242.06 Td (23.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 242.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 228.06 Td (2020) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.50 228.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.50 228.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 228.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 228.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 228.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.50 228.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 228.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 228.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 214.06 Td (2021) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.50 214.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.50 214.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 214.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 214.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 214.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.50 214.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 214.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 214.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 200.06 Td (2022) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.00 200.06 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.75 200.06 Td (12,395) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.75 200.06 Td (3.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 200.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 200.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.25 200.06 Td (650,193) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.75 200.06 Td (8.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 200.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 186.06 Td (2023) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.50 186.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.50 186.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 186.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 186.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 186.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.50 186.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 186.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 186.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 172.06 Td (2024) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.00 172.06 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.75 172.06 Td (32,916) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.25 172.06 Td (10.5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 172.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 172.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.50 172.06 Td (1,105,484) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 172.06 Td (13.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 172.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 158.06 Td (2025) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 206.50 158.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.50 158.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 374.00 158.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 158.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 158.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.50 158.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 158.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 158.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 144.06 Td (Thereafter) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.00 144.06 Td (2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 276.75 144.06 Td (92,105) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.25 144.06 Td (29.3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.00 144.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.50 144.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.50 144.06 Td (3,831,301) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 144.06 Td (47.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 144.06 Td (%) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 85 0 obj <> endobj 86 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (40) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 740.25 Td (Industry Concentration) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 716.25 Td (The following table provides a summary of the industry concentration of the tenants in our two commercial properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (based on their leased square footage as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.32 704.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.91 704.25 Td (:) Tj ET Q /GS0 gs q 474.00 0 0 174.00 78.00 513.25 cm /I19 Do Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 494.25 Td (Item3.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 79.99 494.25 Td (Legal Proceedings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 470.25 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 50.00 458.25 Td (claims or disputes. ) Tj ET Q q 0 0 0 rg BT 129.16 458.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.60 458.25 Td (March24, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.20 458.25 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 50.00 446.25 Td (proceedings.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 422.25 Td (Item4.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 79.99 422.25 Td (Mine Safety Disclosures) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 398.25 Td (Not applicable.) 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 /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 (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.94 670.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.53 670.25 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.63 670.25 Td (10.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.52 670.25 Td ( Class ) Tj ET Q q 0 0 0 rg BT 281.64 670.25 Td (A) Tj ET Q q 0 0 0 rg BT 288.31 670.25 Td ( shares of our common stock \(Class ) Tj ET Q q 0 0 0 rg BT 437.45 670.25 Td (A) Tj ET Q q 0 0 0 rg BT 444.12 670.25 Td ( Shares\) and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.48 670.25 Td (787,405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.98 670.25 Td ( Class ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.43 658.25 Td ( shares of our common stock \(Class ) Tj ET Q q 0 0 0 rg BT 204.94 658.25 Td (T) Tj ET Q q 0 0 0 rg BT 210.87 658.25 Td ( Shares\) outstanding, held by a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.22 658.25 Td (2,773) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.72 658.25 Td ( stockholders. ) Tj ET Q q 0 0 0 rg BT 455.09 658.25 Td (The number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (stockholders is based on the records of our registrar and transfer agent. ) Tj ET Q q 0 0 0 rg BT 337.56 646.25 Td (There is no established public trading market for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (common stock. ) Tj ET Q q 0 0 0 rg BT 115.42 634.25 Td (Therefore, there is a risk that a stockholder may not be able to sell our stock at a time or price acceptable to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (stockholder) Tj ET Q q 0 0 0 rg BT 95.60 622.25 Td (. Pursuant to the terms of our Of) Tj ET Q q 0 0 0 rg BT 227.35 622.25 Td (fering, we are selling two classes of shares of our common stock to the public, at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.82 610.25 Td ($10.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.32 610.25 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 151.70 610.25 Td (A) Tj ET Q q 0 0 0 rg BT 158.37 610.25 Td ( Share and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.08 610.25 Td ($9.4489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.58 610.25 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 277.34 610.25 Td (T) Tj ET Q q 0 0 0 rg BT 283.26 610.25 Td ( Share, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.47 610.25 Td ($9.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.97 610.25 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 394.36 610.25 Td (A) Tj ET Q q 0 0 0 rg BT 401.03 610.25 Td ( Share and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.74 610.25 Td ($9.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.24 610.25 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 509.99 610.25 Td (T) Tj ET Q q 0 0 0 rg BT 515.92 610.25 Td ( Share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (pursuant to our distribution reinvestment plan.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 574.25 Td (T) Tj ET Q q 0 0 0 rg BT 72.91 574.25 Td (o assist the Financial Industry Regulatory ) Tj ET Q q 0 0 0 rg BT 241.22 574.25 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 49.50 562.25 Td (our public of) Tj ET Q q 0 0 0 rg BT 100.97 562.25 Td (ferings in their ef) Tj ET Q q 0 0 0 rg BT 169.93 562.25 Td (fort to comply with National ) Tj ET Q q 0 0 0 rg BT 286.31 562.25 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 49.50 550.25 Td (in each ) Tj ET Q q 0 0 0 rg BT 80.04 550.25 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 49.50 538.25 Td (date of the data used to develop the estimated value. In addition, we plan to prepare annual statements of estimated share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (values to assist fiduciaries of retirement plans subject to the annual reporting requirements of ERISA) Tj ET Q q 0 0 0 rg BT 452.73 526.25 Td ( in the preparation of their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (reports relating to an investment in our shares and such statements should not be used for any other purpose. For these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (purposes, the estimated value of a share of our common stock is estimated to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.08 502.25 Td ($10.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.58 502.25 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 439.97 502.25 Td (A) Tj ET Q q 0 0 0 rg BT 446.64 502.25 Td ( Share and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.35 502.25 Td ($9.4489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.85 502.25 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.49 490.25 Td (T) Tj ET Q q 0 0 0 rg BT 79.42 490.25 Td ( Share as of the date of filing of this ) Tj ET Q q 0 0 0 rg BT 224.94 490.25 Td (Annual Report on Form 10-K, as that is the price at which we are currently of) Tj ET Q q 0 0 0 rg BT 535.78 490.25 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (and selling shares of our common stock in our Of) Tj ET Q q 0 0 0 rg BT 247.34 478.25 Td (fering. ) Tj ET Q q 0 0 0 rg BT 278.16 478.25 Td (Although these estimated values are the prices currently paid to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (acquire shares in our Of) Tj ET Q q 0 0 0 rg BT 145.39 466.25 Td (fering, these estimated values are not likely to reflect the proceeds our stockholders would receive upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (our liquidation or upon the sale of our stockholders) Tj ET Q q 0 0 0 rg BT 257.05 454.25 Td ( shares because \(i\) these estimates are not designed to reflect the price at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (which properties and other assets can be sold; \(ii\) our proceeds invested in real estate are reduced by fees such as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (commissions, dealer manager fee and issuer costs associated with the Of) Tj ET Q q 0 0 0 rg BT 339.51 430.25 Td (fering; \(iii\) no public market for our shares exists or is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (likely to develop; and \(iv\) the per share valuation method is not designed to arrive at a valuation that is related to any individual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (or aggregated value estimates or appraisals of the value of our assets. ) Tj ET Q q 0 0 0 rg BT 330.89 406.25 Td (W) Tj ET Q q 0 0 0 rg BT 339.52 406.25 Td (e are not required to obtain and did not obtain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (appraisals for our assets or third-party valuations or opinions for the specific purpose of determining this estimated value as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 382.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 358.25 Td (The SEC has approved an amendment to NASD Rule 2340, which sets forth the obligations of FINRA) Tj ET Q q 0 0 0 rg BT 477.72 358.25 Td ( members to provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (per share values in customer account statements. ) Tj ET Q q 0 0 0 rg BT 248.97 346.25 Td (W) Tj ET Q q 0 0 0 rg BT 257.61 346.25 Td (e presently expect to disclose an estimated per share net asset value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (\(NA) Tj ET Q q 0 0 0 rg BT 70.42 334.25 Td (V\) no later than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.84 334.25 Td (April29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.45 334.25 Td (. ) Tj ET Q q 0 0 0 rg BT 205.77 334.25 Td (Thereafter) Tj ET Q q 0 0 0 rg BT 247.00 334.25 Td (, in accordance with the amended rule, we intend to undertake a valuation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (process to provide an estimated per share value annually) Tj ET Q q 0 0 0 rg BT 274.88 322.25 Td (. In connection with the disclosure of an estimated per share NA) Tj ET Q q 0 0 0 rg BT 533.24 322.25 Td (V) Tj ET Q q 0 0 0 rg BT 540.28 322.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.05 Td (our common stock, our board of directors may determine to modify the of) Tj ET Q q 0 0 0 rg BT 345.08 309.05 Td (fering prices for each class of our shares,) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 508.89 309.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.64 309.05 Td (including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.05 Td (the prices at which the shares of each class are of) Tj ET Q q 0 0 0 rg BT 245.90 297.05 Td (fered pursuant to our distribution reinvestment plan, but the of) Tj ET Q q 0 0 0 rg BT 495.11 297.05 Td (fering price may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.05 Td (be higher than the estimated per share NA) Tj ET Q q 0 0 0 rg BT 216.76 285.05 Td (V) Tj ET Q q 0 0 0 rg BT 223.80 285.05 Td ( for such class. Further) Tj ET Q q 0 0 0 rg BT 317.27 285.05 Td (, after the amendment to NASD Rule 2340 takes ef) Tj ET Q q 0 0 0 rg BT 521.48 285.05 Td (fect on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.05 Td (April 1) Tj ET Q q 0 0 0 rg BT 77.74 273.05 Td (1, 2016, the customer account statements that we issue to our stockholders will reflect the estimated per share NA) Tj ET Q q 0 0 0 rg BT 531.87 273.05 Td (V) Tj ET Q q 0 0 0 rg BT 537.81 273.05 Td (. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.05 Td (addition, after the amended rules take ef) Tj ET Q q 0 0 0 rg BT 210.08 261.05 Td (fect, we expect to use the estimated per share NA) Tj ET Q q 0 0 0 rg BT 406.49 261.05 Td (V) Tj ET Q q 0 0 0 rg BT 413.53 261.05 Td ( as the deemed estimated per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.05 Td (value for purposes of reports to fiduciaries of retirement plans subject to the annual reporting requirements of ERISA.Because ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.05 Td (we have used a portion of the proceeds from the Of) Tj ET Q q 0 0 0 rg BT 254.80 237.05 Td (fering to pay selling commissions, dealer manager fees and or) Tj ET Q q 0 0 0 rg BT 502.32 237.05 Td (ganization and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 225.05 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 225.05 Td (fering expenses, which reduce the amount of funds available for investment, unless our aggregate investments increase in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 213.05 Td (value to compensate for these up-front fees and expenses, it is likely that the estimated per share NA) Tj ET Q q 0 0 0 rg BT 450.30 213.05 Td (V) Tj ET Q q 0 0 0 rg BT 456.23 213.05 Td (, which will be the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 201.05 Td (value shown on stockholders) Tj ET Q q 0 0 0 rg BT 176.78 201.05 Td ( account statements, will be lower than the purchase price paid by our stockholders in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 189.05 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 189.05 Td (fering. ) Tj ET Q q 0 0 0 rg BT 88.20 189.05 Td (Any estimated per share NA) Tj ET Q q 0 0 0 rg BT 200.76 189.05 Td (V) Tj ET Q q 0 0 0 rg BT 207.80 189.05 Td ( that we disclose may not be an accurate reflection of the fair value of our assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.05 Td (liabilities in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 193.35 177.05 Td (, may not reflect the price at which we would be able to sell all or substantially all of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.05 Td (assets or the outstanding shares of our common stock in an arm) Tj ET Q q 0 0 0 rg BT 305.84 165.05 Td (s-length transaction, may not represent the value that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.05 Td (stockholders could realize upon a sale of the company or upon the liquidation of our assets and settlement of our liabilities, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.05 Td (may not be indicative of the prices at which Class ) Tj ET Q q 0 0 0 rg BT 250.56 141.05 Td (A) Tj ET Q q 0 0 0 rg BT 257.23 141.05 Td ( Shares or Class ) Tj ET Q q 0 0 0 rg BT 323.71 141.05 Td (T) Tj ET Q q 0 0 0 rg BT 329.64 141.05 Td ( Shares would trade if they were listed on a national ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.05 Td (securities exchange. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 117.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 105.05 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 /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (Distributions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 718.25 Td (In order to meet the requirements for being treated as a REIT) Tj ET Q q 0 0 0 rg BT 311.94 718.25 Td ( under the Internal Revenue Code, we must pay distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (to our stockholders each taxable year in an amount equal to at least 90% of our net ordinary taxable income \(capital gains are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (not required to be distributed\). ) Tj ET Q q 0 0 0 rg BT 176.23 694.25 Td (W) Tj ET Q q 0 0 0 rg BT 185.27 694.25 Td (ith the authorization of our board of directors, we declared distributions with respect to Class ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 682.25 Td ( Shares of our common stock for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.46 682.25 Td (October1, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.16 682.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.27 682.25 Td (March 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.87 682.25 Td (. ) Tj ET Q q 0 0 0 rg BT 426.19 682.25 Td (These distributions were or will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (be calculated based on stockholders of record for each day in an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.21 670.25 Td ($0.001575342) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.71 670.25 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 474.09 670.25 Td (A) Tj ET Q q 0 0 0 rg BT 480.76 670.25 Td ( Share, per day) Tj ET Q q 0 0 0 rg BT 540.09 670.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (Also, with the authorization of the board of directors, we declared distributions with respect to Class ) Tj ET Q q 0 0 0 rg BT 453.67 658.25 Td (T) Tj ET Q q 0 0 0 rg BT 459.59 658.25 Td ( Shares of our common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (stock for the period from ) Tj ET Q q 0 0 0 rg BT 151.42 646.25 Td (August24, 2015 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.92 646.25 Td (March 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.52 646.25 Td (. Distributions for Class ) Tj ET Q q 0 0 0 rg BT 417.89 646.25 Td (T) Tj ET Q q 0 0 0 rg BT 423.82 646.25 Td ( Shares were or will be calculated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (based on stockholders of record each day in an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.08 634.25 Td ($0.001575342) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.58 634.25 Td ( per share, per day less the distribution and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (stockholder servicing fees that are payable with respect to such Class ) Tj ET Q q 0 0 0 rg BT 328.40 622.25 Td (T) Tj ET Q q 0 0 0 rg BT 334.32 622.25 Td ( Shares \(as calculated on a daily basis\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 598.25 Td (All distributions were or will be paid in cash or reinvested in shares of our common stock for those participating in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (distribution reinvestment plan and have been or will be paid or issued, respectively) Tj ET Q q 0 0 0 rg BT 380.71 586.25 Td (, on the first business day following the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (completion of the month to which they relate. Distributions reinvested pursuant to the distribution reinvestment plan will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (reinvested in shares of the same class as the shares on which the distributions are being made. Some or all of the cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (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 67.50 526.25 Td (In addition to the distributions described above, our board of directors authorized special stock dividends to holders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.12 514.25 Td (A) Tj ET Q q 0 0 0 rg BT 79.79 514.25 Td ( Shares as of daily record dates for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.55 514.25 Td (October1, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.26 514.25 Td ( through June 30, 2015. Stock dividends for Class ) Tj ET Q q 0 0 0 rg BT 554.14 514.25 Td (A) Tj ET Q q 0 0 0 rg BT 560.81 514.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (shares were calculated based on stockholders of record each day in an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.53 502.25 Td (0.0000273973) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.03 502.25 Td ( of a Class ) Tj ET Q q 0 0 0 rg BT 499.92 502.25 Td (A) Tj ET Q q 0 0 0 rg BT 506.58 502.25 Td ( Share per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (share, per day) Tj ET Q q 0 0 0 rg BT 104.66 490.25 Td (. Shares issued related to our stock dividends were issued on the first business day of the month following the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (quarter to which they related.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 454.25 Td (In our initial quarters of operations, and from time to time thereafter) Tj ET Q q 0 0 0 rg BT 339.79 454.25 Td (, we may continue to be unable to generate suf) Tj ET Q q 0 0 0 rg BT 525.65 454.25 Td (ficient ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (cash flow from operations to fully fund distributions paid. ) Tj ET Q q 0 0 0 rg BT 286.23 442.25 Td (Therefore, some or all of our distributions may continue to be paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (from other sources, such as proceeds from our debt financings, proceeds from the Of) Tj ET Q q 0 0 0 rg BT 388.38 430.25 Td (fering, cash advances by our ) Tj ET Q q 0 0 0 rg BT 504.45 430.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 536.27 430.25 Td (, cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (resulting from a waiver or deferral of fees and/or proceeds from the sale of assets. For example, we funded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.56 418.25 Td (23%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.89 418.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.33 418.25 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.66 418.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (total distributions for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.13 406.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.71 406.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 406.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.15 406.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 371.81 406.25 Td (, with cash flows from financing activities, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (which includes of) Tj ET Q q 0 0 0 rg BT 120.41 394.25 Td (fering proceeds.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 370.25 Td (In addition, our ) Tj ET Q q 0 0 0 rg BT 131.38 370.25 Td (Advisor agreed to waive the asset management fees for each quarter in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.82 370.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.82 370.25 Td ( and the quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 358.25 Td (, to the extent that our modified funds from operations \(MFFO\), for a particular quarter) Tj ET Q q 0 0 0 rg BT 485.35 358.25 Td (, as disclosed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (our ) Tj ET Q q 0 0 0 rg BT 64.78 346.25 Td (Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as applicable, amounts to less than 100% of the aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (distributions declared to our stockholders for such quarter) Tj ET Q q 0 0 0 rg BT 280.28 334.25 Td (. Our ) Tj ET Q q 0 0 0 rg BT 305.28 334.25 Td (Advisor also agreed to waive an additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.84 334.25 Td ($62,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.34 334.25 Td ( in asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (management fees so that our MFFO for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.10 322.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.69 322.25 Td ( would equal our distributions declared for such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (year) Tj ET Q q 0 0 0 rg BT 66.16 310.25 Td (. ) Tj ET Q q 0 0 0 rg BT 73.10 310.25 Td (As a result of these waivers, our ) Tj ET Q q 0 0 0 rg BT 203.63 310.25 Td (Advisor waived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.72 310.25 Td ($583,433) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.22 310.25 Td ( of the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.54 310.25 Td ($888,109) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.04 310.25 Td ( in asset management fees payable to it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.91 298.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.49 298.25 Td ( and all of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.97 298.25 Td ($16,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.47 298.25 Td ( of 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 49.50 286.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 286.25 Td (. Our advisor has also agreed to waive the asset management fees otherwise payable to it for each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (quarters ended March 31, 2016 and June 30, 2016, to the extent that our MFFO for such quarters, as disclosed in our Quarterly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (Report on Form 10-Q, amounts to less than 100% of the aggregate distributions declared to our stockholders for each respective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (quarter) Tj ET Q q 0 0 0 rg BT 77.26 250.25 Td (. ) Tj ET Q q 0 0 0 rg BT 84.21 250.25 Td (As a result of these fee waivers, cash flows from operations that would have been paid to our ) Tj ET Q q 0 0 0 rg BT 458.27 250.25 Td (Advisor for asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (management feesmay be available to pay distributions to stockholders. ) Tj ET Q q 0 0 0 rg BT 339.80 238.25 Td (These fee waivers are not deferrals and accordingly) Tj ET Q q 0 0 0 rg BT 545.43 238.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (any fees that are waived will not be paid to our ) Tj ET Q q 0 0 0 rg BT 239.16 226.25 Td (Advisor in cash at any time in the future.) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 742.10 Td (The following table outlines our total cash distributions declared to stockholders and noncontrolling interests \(HALP) Tj ET Q q 0 0 0 rg BT 534.81 742.10 Td ( II\) for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (each of the quarters during the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.87 730.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.45 730.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.89 730.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.89 730.10 Td (, including the breakout between the distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (declared in cash and those reinvested pursuant to our distribution reinvestment plan.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 635.60 251.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.00 635.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 635.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.00 635.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.00 635.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 635.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 635.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 635.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 635.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 607.60 251.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.00 607.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 607.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.00 607.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.00 607.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 607.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 607.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 607.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 607.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 579.60 251.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.00 579.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 579.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.00 579.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.00 579.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 579.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 579.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 579.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 579.60 69.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 50.00 551.60 251.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 301.00 551.60 4.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 305.00 551.60 59.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 364.00 551.60 4.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 368.00 551.60 59.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 427.00 551.60 4.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 431.00 551.60 59.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 490.00 551.60 4.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 494.00 551.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 537.60 251.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.00 537.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 537.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.00 537.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.00 537.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 537.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 537.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 537.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 537.60 69.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 50.00 523.60 251.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 301.00 523.60 4.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 305.00 523.60 59.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 364.00 523.60 4.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 368.00 523.60 59.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 427.00 523.60 4.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 431.00 523.60 59.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 490.00 523.60 4.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 494.00 523.60 69.00 -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 305 672.6 m 364 672.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 672.6 m 368 672.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 672.6 m 427 672.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 672.6 m 431 672.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 672.6 m 490 672.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 672.6 m 563 672.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 649.6 m 301 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 649.6 m 364 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 649.6 m 427 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 649.6 m 490 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 649.6 m 563 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 579.6 m 364 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 566.6 m 364 566.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 564.6 m 364 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 579.6 m 427 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 566.6 m 427 566.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 564.6 m 427 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 579.6 m 490 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 566.6 m 490 566.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 564.6 m 490 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 579.6 m 563 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 566.6 m 563 566.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 564.6 m 563 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 537.6 m 301 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 537.6 m 301 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 523.6 m 364 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 510.6 m 364 510.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 508.6 m 364 508.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 523.6 m 427 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 510.6 m 427 510.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 508.6 m 427 508.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 523.6 m 490 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 510.6 m 490 510.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 508.6 m 490 508.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 523.6 m 563 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 510.6 m 563 510.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 508.6 m 563 508.6 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 677.06 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 371.95 677.05 Td (Stockholders) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 499.05 686.05 Td (Noncontrolling) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 511.30 677.05 Td (Interests) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.50 654.05 Td (Distributions for the three months ended) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 324.20 663.05 Td (Cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 308.70 654.05 Td (Distributions) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 371.70 663.05 Td (Distributions) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 376.00 654.05 Td (Reinvested) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 450.15 663.05 Td (Total) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 442.80 654.05 Td (Declared) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 499.85 654.05 Td (Total Declared) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.50 640.05 Td (2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 626.06 Td (December 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.50 626.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.25 626.06 Td (603,936) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.50 626.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.25 626.06 Td (655,664) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.50 626.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.50 626.06 Td (1,259,600) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.50 626.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 626.06 Td (3,059) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 612.06 Td (September 30, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.25 612.06 Td (457,698) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.25 612.06 Td (489,796) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.25 612.06 Td (947,494) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 612.06 Td (3,060) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 598.06 Td (June 30, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.25 598.06 Td (279,432) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.25 598.06 Td (287,799) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.25 598.06 Td (567,231) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 598.06 Td (3,027) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 584.06 Td (March 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.75 584.06 Td (91,135) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 584.06 Td (58,691) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.25 584.06 Td (149,826) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 584.06 Td (2,993) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 570.06 Td (Total) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.50 570.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 324.50 570.06 Td (1,432,201) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.50 570.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 387.50 570.06 Td (1,491,950) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.50 570.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.50 570.06 Td (2,924,151) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.50 570.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 570.06 Td (12,139) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.50 542.05 Td (2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 528.06 Td (December 31, 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.50 528.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.75 528.06 Td (40,377) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.50 528.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 403.25 528.06 Td (1,841) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.50 528.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 461.75 528.06 Td (42,218) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.50 528.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 528.06 Td (3,060) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 514.06 Td (Total) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.50 514.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.75 514.06 Td (40,377) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.50 514.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 403.25 514.06 Td (1,841) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.50 514.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 461.75 514.06 Td (42,218) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.50 514.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 514.06 Td (3,060) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 67.50 486.10 Td (Stock Dividends) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 462.10 Td (The following table outlines our total stock dividends declared for each of the quarters during the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 450.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.52 450.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.52 450.10 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 399.60 339.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 399.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 399.60 77.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 399.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 399.60 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 399.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.00 399.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 371.60 339.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 371.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 371.60 77.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 371.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 371.60 35.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 371.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.00 371.60 50.00 -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 473 413.6 m 508 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 413.6 m 512 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 413.6 m 562 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 399.6 m 388 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 399.6 m 469 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 399.6 m 508 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 399.6 m 562 399.6 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.50 418.06 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 491.95 418.05 Td (Stockholders) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 51.50 404.05 Td (Dividends for the Three Months Ended) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 403.35 404.05 Td (Issuance Date) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 477.05 404.05 Td (Shares) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 516.20 404.05 Td (Amount ) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 549.95 408.13 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.50 390.06 Td (June 30, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 413.95 390.06 Td (7/1/2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.25 390.06 Td (9,866) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 514.50 390.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.75 390.06 Td (98,663) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.50 376.06 Td (March 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 413.95 376.06 Td (4/1/2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.25 376.06 Td (2,604) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 514.50 376.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.75 376.06 Td (26,037) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.50 362.06 Td (December 31, 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 413.95 362.06 Td (1/1/2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.00 362.06 Td (737) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 514.50 362.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.25 362.06 Td (7,367) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 334.10 Td (Amount based on $10.00 per Class ) Tj ET Q q 0 0 0 rg BT 209.43 334.10 Td (A) Tj ET Q q 0 0 0 rg BT 216.10 334.10 Td ( Share Of) Tj ET Q q 0 0 0 rg BT 254.24 334.10 Td (fering price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 310.10 Td (Distributions to stockholders are characterized for federal income tax purposes as ordinary income, capital gains, non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (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 49.50 286.10 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 49.50 274.10 Td (stockholders) Tj ET Q q 0 0 0 rg BT 102.63 274.10 Td ( basis in our common shares. ) Tj ET Q q 0 0 0 rg BT 223.55 274.10 Td (T) Tj ET Q q 0 0 0 rg BT 228.96 274.10 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 49.50 262.10 Td (profits and the stockholders) Tj ET Q q 0 0 0 rg BT 162.90 262.10 Td ( basis in the common shares, it will generally be treated as a capital gain. ) Tj ET Q q 0 0 0 rg BT 459.29 262.10 Td (W) Tj ET Q q 0 0 0 rg BT 467.93 262.10 Td (e annually notify ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (stockholders of the taxability of distributions paid during the preceding year) Tj ET Q q 0 0 0 rg BT 353.32 250.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 226.10 Td (For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.69 226.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.28 226.10 Td (, 99% of the distributions paid were taxable as ordinary income and 1% was treated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (as a return of capital for federal income tax purposes. 100% of the distributions paid for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.30 214.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.89 214.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (were treated as a return of capital for federal income tax purposes. ) Tj ET Q q 0 0 0 rg BT 319.19 202.10 Td (The primary driver for the increase in the distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (taxability for 2015 was due to an increase in taxable income at our operating properties. ) Tj ET Q q 0 0 0 rg BT 403.09 190.10 Td (The amount of distributions paid and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (taxable portion are not indicative or predictive of amounts anticipated in future periods.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (Recent Sales of Unr) Tj ET Q q 0 0 0 rg BT 133.47 154.10 Td (egister) Tj ET Q q 0 0 0 rg BT 161.60 154.10 Td (ed Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 130.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 130.10 Td (e issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.58 130.10 Td (1,1) Tj ET Q q 0 0 0 rg BT 122.71 130.10 Td (1) Tj ET Q q 0 0 0 rg BT 127.33 130.10 Td (1.1) Tj ET Q q 0 0 0 rg BT 139.46 130.10 Td (1) Tj ET Q q 0 0 0 rg BT 144.09 130.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.09 130.10 Td ( Class ) Tj ET Q q 0 0 0 rg BT 175.21 130.10 Td (A) Tj ET Q q 0 0 0 rg BT 181.88 130.10 Td ( Shares to Hines Global REIT) Tj ET Q q 0 0 0 rg BT 301.40 130.10 Td ( II Investor Limited Partnership, in exchange for an investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 118.10 Td ($10,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 118.10 Td ( in connection with our formation on September 6, 2013 in an of) Tj ET Q q 0 0 0 rg BT 350.65 118.10 Td (fering exempt from registration under Section 4\(a\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (\(2\) of the Securities ) Tj ET Q q 0 0 0 rg BT 130.59 106.10 Td (Act of 1933, as amended. ) Tj ET Q q 0 0 0 rg BT 237.60 106.10 Td (There have been no other sales of unregistered securities within the past three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (years.) 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 (Use of Pr) Tj ET Q q 0 0 0 rg BT 88.75 742.25 Td (oceeds fr) Tj ET Q q 0 0 0 rg BT 126.60 742.25 Td (om Register) Tj ET Q q 0 0 0 rg BT 177.79 742.25 Td (ed Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 718.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.67 718.25 Td (August20, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.06 718.25 Td (, the Registration Statement on Form S-1) Tj ET Q q 0 0 0 rg BT 311.84 718.25 Td (1 \(File No. 333-191) Tj ET Q q 0 0 0 rg BT 390.91 718.25 Td (106\) for the Of) Tj ET Q q 0 0 0 rg BT 450.99 718.25 Td (fering was declared ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 706.25 Td (fective under the Securities ) Tj ET Q q 0 0 0 rg BT 168.16 706.25 Td (Act of 1933. ) Tj ET Q q 0 0 0 rg BT 223.25 706.25 Td (The Of) Tj ET Q q 0 0 0 rg BT 251.66 706.25 Td (fering commenced on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.80 706.25 Td (August20, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.19 706.25 Td ( and is currently expected to terminate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (on or before ) Tj ET Q q 0 0 0 rg BT 100.32 694.25 Td (August 20, 2016, unless extended by our board of directors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 670.25 Td (From ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.12 670.25 Td (August20, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.51 670.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.62 670.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.20 670.25 Td (, we received gross proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.46 670.25 Td ($101.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.36 670.25 Td (through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.09 658.25 Td (10.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.99 658.25 Td ( Class ) Tj ET Q q 0 0 0 rg BT 168.10 658.25 Td (A) Tj ET Q q 0 0 0 rg BT 174.77 658.25 Td ( Shares and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.37 658.25 Td ($7,439,731) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.37 658.25 Td ( through the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.07 658.25 Td (787,405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.57 658.25 Td ( Class ) Tj ET Q q 0 0 0 rg BT 407.06 658.25 Td (T) Tj ET Q q 0 0 0 rg BT 412.99 658.25 Td ( Shares to the public in connection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (with the Of) Tj ET Q q 0 0 0 rg BT 94.87 646.25 Td (fering. Since ) Tj ET Q q 0 0 0 rg BT 150.41 646.25 Td (August 20, 2014, we have used proceeds from the Of) Tj ET Q q 0 0 0 rg BT 363.23 646.25 Td (fering to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.82 646.25 Td ($9.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.72 646.25 Td ( of selling commissions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (and dealer manager fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.82 634.25 Td ($5.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.71 634.25 Td ( of issuer costs related to the Of) Tj ET Q q 0 0 0 rg BT 341.44 634.25 Td (fering. ) Tj ET Q q 0 0 0 rg BT 372.64 634.25 Td (The selling commissions and dealer manager ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (fees were not paid with respect to the shares sold through our distribution reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 424.51 622.25 Td (The selling commissions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (dealer manager fees were paid to our dealer manager) Tj ET Q q 0 0 0 rg BT 260.65 610.25 Td (, which is an af) Tj ET Q q 0 0 0 rg BT 321.28 610.25 Td (filiate of Hines and is wholly-owned, indirectly) Tj ET Q q 0 0 0 rg BT 510.31 610.25 Td (, by) Tj ET Q q 0 0 0 rg BT 524.66 610.25 Td (, or for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (the benefit of, our Chairman, Jef) Tj ET Q q 0 0 0 rg BT 179.55 598.25 Td (frey C. Hines and his father) Tj ET Q q 0 0 0 rg BT 289.68 598.25 Td (, Gerald D. Hines.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 574.25 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 491.50 574.25 Td ($90.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.39 574.25 Td (. ) Tj ET Q q 0 0 0 rg BT 552.34 574.25 Td (A) Tj ET Q q 0 0 0 rg BT 559.01 574.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 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 460.20 562.25 Td ($74.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.09 562.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (investments in real estate, including the cost of completing the acquisition of 2819 Loker ) Tj ET Q q 0 0 0 rg BT 407.47 550.25 Td (A) Tj ET Q q 0 0 0 rg BT 413.95 550.25 Td (venue East and Bishop) Tj ET Q q 0 0 0 rg BT 508.10 550.25 Td (s Square, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (deposit paid for the acquisition of the Domain ) Tj ET Q q 0 0 0 rg BT 235.57 538.25 Td (Apartments in January 2016, acquisition fees and expenses and costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (leveraging each real estate investment. ) Tj ET Q q 0 0 0 rg BT 208.97 526.25 Td (W) Tj ET Q q 0 0 0 rg BT 217.61 526.25 Td (e had approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.74 526.25 Td ($14.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.63 526.25 Td ( in uninvested of) Tj ET Q q 0 0 0 rg BT 422.39 526.25 Td (fering proceeds as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 514.25 Td ( which were used to acquire the Domain ) Tj ET Q q 0 0 0 rg BT 291.37 514.25 Td (Apartments in January 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 490.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 117.40 490.25 Td (, we may not generate suf) Tj ET Q q 0 0 0 rg BT 219.96 490.25 Td (ficient cash flow from operations to fully fund distributions paid. ) Tj ET Q q 0 0 0 rg BT 484.36 490.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 478.25 Td (, as discussed in "Item 7. Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 353.10 478.25 Td (Analysis of Financial Condition and Results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (Operations Financial Condition, Liquidity and Capital Resources Distributions"a portion of our distributions have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (funded with cash flows from financing activities, which includes of) Tj ET Q q 0 0 0 rg BT 319.25 454.25 Td (fering proceeds.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (Shar) Tj ET Q q 0 0 0 rg BT 69.88 430.25 Td (e RedemptionPr) Tj ET Q q 0 0 0 rg BT 141.91 430.25 Td (ogram) 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 of) Tj ET Q q 0 0 0 rg BT 91.23 406.25 Td (fer a share redemption program that may allow stockholders who have purchased shares from us or received their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (shares through a non-cash transaction, not in the secondary market, and who have held their shares for a minimum of one year) Tj ET Q q 0 0 0 rg BT 554.22 394.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (to have their shares redeemed subject to certain limitations and restrictions. ) Tj ET Q q 0 0 0 rg BT 355.61 382.25 Td (W) Tj ET Q q 0 0 0 rg BT 364.25 382.25 Td (e intend to allow redemptions of our shares on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (monthly basis. No fees will be paid to Hines in connection with any redemption. Our board of directors may terminate, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (suspend or amend the share redemption program upon 30 days) Tj ET Q q 0 0 0 rg BT 302.86 358.25 Td ( written notice without stockholder approval, which notice shall ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (take the form of a report on Form 8-K filed at least 30 days prior to the ef) Tj ET Q q 0 0 0 rg BT 343.40 346.25 Td (fective date of such termination, suspension or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (amendment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 310.25 Td (Subject to the limitations of and restrictions on the program, and subject to funds being available as described below) Tj ET Q q 0 0 0 rg BT 532.57 310.25 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (number of shares repurchased during any consecutive 12-month period will be limited to no more than 5% of the number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (outstanding shares of common stock at the beginning of that 12-month period. Unless our board of directors determines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (otherwise, the funds available for redemptions in each month will be limited to the funds received from the distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (reinvestment plan in the prior month. Our board of directors has complete discretion to determine whether all of such funds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (from the prior month) Tj ET Q q 0 0 0 rg BT 136.43 250.25 Td (s distribution reinvestment plan will be applied to redemptions in the following month, whether such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (funds are needed for other purposes or whether additional funds from other sources may be used for redemptions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 214.25 Td (Shares that are redeemed will be redeemed at the following prices, unless such shares are redeemed in connection with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (death or disability of a stockholder) Tj ET Q q 0 0 0 rg BT 188.23 202.25 Td (, as described below: \(i\) the lower of 92.5% of the then-current of) Tj ET Q q 0 0 0 rg BT 450.74 202.25 Td (fering price or 92.5% of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (price paid to acquire the shares from us for stockholders who have held their shares continuously for at least one year; \(ii\) the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (lower of 95.0% of the then-current of) Tj ET Q q 0 0 0 rg BT 198.99 178.25 Td (fering price or 95.0% of the price paid to acquire the shares from us for stockholders who ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (have held their shares continuously for at least two years; \(iii\) the lower of 97.5% of the then-current of) Tj ET Q q 0 0 0 rg BT 463.35 166.25 Td (fering price or 97.5% of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (the price paid to acquire the shares from us for stockholders who have held their shares continuously for at least three years; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (and \(iv\) the lower of 100% of the then-current of) Tj ET Q q 0 0 0 rg BT 245.08 142.25 Td (fering price or 100% of the price paid to acquire the shares from us for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (stockholders who have held their shares continuously for at least four years; provided that in each case, the redemption price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (will be adjusted for any stock dividends, combinations, splits, recapitalizations or similar actions with respect to our common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (stock. However) Tj ET Q q 0 0 0 rg BT 114.36 106.25 Td (, our board of directors, in its sole discretion, may determine at any time to amend the share redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (program to redeem shares at a price that is higher or lower than the price paid for the shares by the redeeming stockholder) Tj ET Q q 0 0 0 rg BT 536.55 94.25 Td (. ) Tj ET Q q 0 0 0 rg BT 543.49 94.25 Td (Any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (such price modification may be arbitrarily determined, or may be determined on a dif) Tj ET Q q 0 0 0 rg BT 390.86 82.25 Td (ferent basis, as determined by our board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (directors. For example, in the event that we are not engaged in a public of) Tj ET Q q 0 0 0 rg BT 346.72 70.25 Td (fering of our primary shares, our board of directors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (may determine to amend the share redemption program to redeem shares at a price that is at or below the then-current net asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (value per share.) 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 31.60 Td (45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 730.10 Td (In the event a stockholder is having all his shares redeemed, we may waive the one-year holding requirement for shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (purchased under our distribution reinvestment plan. In addition, we may waive the one-year holding requirement in the event ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (of a stockholder) Tj ET Q q 0 0 0 rg BT 114.29 706.10 Td () Tj ET Q q 0 0 0 rg BT 117.07 706.10 Td (s bankruptcy) Tj ET Q q 0 0 0 rg BT 167.80 706.10 Td (. If we determine to waive the one-year holding requirement in these circumstances, then, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (purposes of determining the applicable redemption price, the stockholder will be deemed to have held his shares continuously ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (for one year) Tj ET Q q 0 0 0 rg BT 97.25 682.10 Td (. In the event of the death or disability of the holder) Tj ET Q q 0 0 0 rg BT 305.40 682.10 Td (, upon request, we will waive the one-year holding requirement. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (Except as noted below) Tj ET Q q 0 0 0 rg BT 139.10 670.10 Td (, shares that are redeemed in connection with the death or disability of a stockholder will be redeemed at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (a purchase price equal to the price paid to acquire such shares from us; provided, that, the redemption price cannot exceed the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (then-current of) Tj ET Q q 0 0 0 rg BT 109.01 646.10 Td (fering price and, as described below) Tj ET Q q 0 0 0 rg BT 252.75 646.10 Td (, the redemption price will be reduced as necessary to equal the then-current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 634.10 Td (fering price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 610.10 Td (During the period of any public of) Tj ET Q q 0 0 0 rg BT 204.51 610.10 Td (fering, the redemption price will be equal to or less than the price of the shares of) Tj ET Q q 0 0 0 rg BT 529.49 610.10 Td (fered in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (the relevant of) Tj ET Q q 0 0 0 rg BT 107.07 598.10 Td (fering. If we are engaged in a public of) Tj ET Q q 0 0 0 rg BT 265.15 598.10 Td (fering and the redemption price calculated in accordance with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (guidelines set forth above would result in a price that is higher than the then-current public of) Tj ET Q q 0 0 0 rg BT 423.10 586.10 Td (fering price of our common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (shares, then the redemption price will be reduced and will be equal to the then-current public of) Tj ET Q q 0 0 0 rg BT 431.68 574.10 Td (fering price of our common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 538.10 Td (In the event that funds are insuf) Tj ET Q q 0 0 0 rg BT 193.95 538.10 Td (ficient to repurchase all of the shares for which repurchase requests have been submitted in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (a particular month and our board of directors determines that we will redeem shares in that month, then shares will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (repurchased on a pro rata basis and the portion of any unfulfilled repurchase request will be held and considered for redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (until the next month unless withdrawn by the stockholder) Tj ET Q q 0 0 0 rg BT 278.91 502.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (Issuer) Tj ET Q q 0 0 0 rg BT 75.43 478.10 Td ( Redemptions of Equity Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 454.10 Td (All eligible requests for redemptions were redeemed using proceeds from our distribution reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 507.20 454.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (following table lists shares we redeemed under our share redemption program during the period covered by this report, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (including the average price paid per share.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 366.60 181.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 366.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 366.60 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.00 366.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.00 366.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 366.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 366.60 103.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 366.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.00 366.60 102.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 338.60 181.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 338.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 338.60 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.00 338.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.00 338.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 338.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 338.60 103.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 338.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.00 338.60 102.00 -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 50 366.6 m 231 366.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 235 366.6 m 296 366.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300 366.6 m 350 366.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 366.6 m 457 366.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 366.6 m 563 366.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 235 324.6 m 296 324.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 324.6 m 457 324.6 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.50 371.05 Td (Period) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 238.10 389.05 Td (Total Number) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 247.20 380.05 Td (of Shares) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 245.00 371.05 Td (Redeemed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 308.80 389.05 Td (Average) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 304.60 380.05 Td (Price Paid) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 305.50 371.05 Td (Per Share) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 359.20 398.05 Td (Total Number of Shares) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 365.20 389.05 Td (Purchased as Part of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 366.35 380.05 Td (Publicly Announced) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 369.55 371.05 Td (Plans of Programs) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 469.55 398.05 Td (Maximum Number) Tj ET Q q 0 0 0 rg BT 543.63 398.05 Td ( of ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 467.00 389.05 Td (Shar) Tj ET Q q 0 0 0 rg BT 485.34 389.05 Td (es that May ) Tj ET Q q 0 0 0 rg BT 532.25 389.05 Td (Y) Tj ET Q q 0 0 0 rg BT 537.75 389.05 Td (et be ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.05 380.05 Td (Redeemed Under) Tj ET Q q 0 0 0 rg BT 537.62 380.05 Td ( the ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 471.10 371.05 Td (Plans or) Tj ET Q q 0 0 0 rg BT 502.69 371.05 Td ( Pr) Tj ET Q q 0 0 0 rg BT 514.27 371.05 Td (ograms ) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 545.01 375.13 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 357.06 Td (October 1, 2015 to October 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 283.50 357.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 302.50 357.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.50 357.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.50 357.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 357.06 Td (12,681) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 343.06 Td (November 1, 2015 to November 30, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 283.50 343.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 302.50 343.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.50 343.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.50 343.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 343.06 Td (14,791) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 329.06 Td (December 1, 2015 to December 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 272.25 329.06 Td (1,196) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 302.50 329.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.75 329.06 Td (9.98) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.25 329.06 Td (1,196) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 329.06 Td (21,027) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 315.06 Td (Total) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 272.25 315.06 Td (1,196) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 302.50 315.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.25 315.06 Td (1,196) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.50 315.06 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 287.10 Td (See description of our share redemption program above for a description of the limitations on the number of shares that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 275.10 Td (may be redeemed.) 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 31.60 Td (46) 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 are 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 Item7. Management) Tj ET Q q 0 0 0 rg BT 371.58 706.25 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 440.75 706.25 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 (. Our results of operations for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.82 694.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.41 694.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.85 694.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.85 694.25 Td ( are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (not indicative of those expected in future periods as we did not meet our minimum of) Tj ET Q q 0 0 0 rg BT 391.12 682.25 Td (fering requirements until September 2014 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (\(and subsequent dates with respect to ) Tj ET Q q 0 0 0 rg BT 201.45 670.25 Td (W) Tj ET Q q 0 0 0 rg BT 210.08 670.25 Td (ashington and Pennsylvania\) and did not make our first real estate investment until ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (December 2014. ) Tj ET Q q 0 0 0 rg BT 120.90 658.25 Td (W) Tj ET Q q 0 0 0 rg BT 129.54 658.25 Td (e completed our second acquisition on March 3, 2015. ) Tj ET Q q 0 0 0 rg BT 351.53 658.25 Td (W) Tj ET Q q 0 0 0 rg BT 360.17 658.25 Td (e did not have any results of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (period ended July 31, 2013 \(date of inception\) through December 31, 2013.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 593.75 323.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 593.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 593.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 593.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 593.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.50 593.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 563.75 323.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 563.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 563.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 563.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 563.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.50 563.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 533.75 323.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 533.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 533.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 533.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 533.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.50 533.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 503.75 323.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 503.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 503.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 503.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 503.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.50 503.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 473.75 323.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 473.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 473.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 473.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 473.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.50 473.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 443.75 323.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 443.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 443.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 443.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 443.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.50 443.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 413.75 323.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 413.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 413.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 413.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 413.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.50 413.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 373.75 323.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 373.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 373.75 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 373.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 373.75 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.50 373.75 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 345.75 323.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 345.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 345.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 345.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 345.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.50 345.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 315.75 323.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 315.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 315.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 315.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 315.75 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.50 315.75 57.00 -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 373.5 608.75 m 435.5 608.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440.5 608.75 m 500.5 608.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 608.75 m 505.5 608.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 608.75 m 562.5 608.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 613.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.00 613.43 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.00 613.43 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 518.45 613.43 Td (2013 ) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 540.95 617.96 Td (\(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 598.43 Td (Operating Data:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 598.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 583.42 Td (Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 583.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.65 583.42 Td (9,410,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 583.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 583.42 Td (94,327) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 583.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 583.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 568.42 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 568.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.65 568.42 Td (4,206,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 568.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 568.42 Td (49,288) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 568.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 568.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 553.42 Td (Asset management and acquisition fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 553.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.65 553.42 Td (2,639,645) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 553.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 553.42 Td (570,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 553.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 553.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 538.42 Td (Organizational expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 538.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.65 538.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 538.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 538.42 Td (63,164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 538.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 538.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 523.42 Td (General and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 523.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.65 523.42 Td (1,548,979) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 523.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 523.42 Td (554,476) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 523.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 523.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 508.42 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 508.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.30 508.47 Td (\(5,637,566) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.65 508.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 508.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.30 508.47 Td (\(1,327,663) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 508.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 508.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 508.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 493.42 Td (Net \(income\) loss attributable to noncontrolling interests) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 493.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.80 493.47 Td (\(12,139) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.65 493.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 493.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 493.42 Td (186,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 493.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 493.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 478.42 Td (Net income \(loss\) attributable to common stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 478.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.30 478.47 Td (\(5,649,705) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.65 478.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 478.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.30 478.47 Td (\(1,140,723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 478.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 478.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 478.42 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 463.46 Td (Class A Common Stock:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 448.42 Td (Basic and diluted income \(loss\) per common share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 448.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.80 448.47 Td (\(1.11) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.65 448.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 448.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.80 448.47 Td (\(14.67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 448.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 448.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 448.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 433.42 Td (Distributions declared per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 433.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 433.42 Td (0.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 433.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 433.42 Td (0.15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 433.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 433.42 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 418.46 Td (Class T Common Stock:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 403.42 Td (Basic and diluted income \(loss\) per common share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 403.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.80 403.47 Td (\(0.03) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.65 403.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 403.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 403.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 403.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 403.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 388.42 Td (Distributions declared per share, net of distribution and stockholder servicing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 378.42 Td (fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 378.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 378.42 Td (0.17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 378.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 378.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 378.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 378.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 350.43 Td (Balance Sheet Data:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 335.42 Td (Total investment property) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 335.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.60 335.42 Td (72,426,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 335.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.60 335.42 Td (21,355,421) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 335.42 Td ($) 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 (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 320.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.60 320.42 Td (17,224,448) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 320.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.60 320.42 Td (2,726,742) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 320.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 320.42 Td (200,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 305.42 Td (Total assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 305.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.60 305.42 Td (149,056,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 305.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.60 305.42 Td (28,550,814) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 305.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 305.42 Td (200,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 290.42 Td (Long-term obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 290.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.60 290.42 Td (59,693,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 290.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.60 290.42 Td (24,200,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 290.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 290.42 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.25 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 262.25 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 68.00 250.25 Td (31, 2013 for balance sheet data.) Tj ET Q endstream endobj 99 0 obj <><>] /Rotate 0 /Contents 100 0 R>> endobj 100 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (47) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td (Item7.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 79.99 730.25 Td (Management) Tj ET Q q 0 0 0 rg BT 142.03 730.25 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 213.62 730.25 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 706.25 Td (Y) Tj ET Q q 0 0 0 rg BT 72.64 706.25 Td (ou should r) Tj ET Q q 0 0 0 rg BT 117.83 706.25 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 50.00 694.25 Td (ther) Tj ET Q q 0 0 0 rg BT 65.74 694.25 Td (eto included in this ) Tj ET Q q 0 0 0 rg BT 144.43 694.25 Td (Annual Report on Form10-K. The following information contains forwar) Tj ET Q q 0 0 0 rg BT 441.02 694.25 Td (d-looking statements, which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (ar) Tj ET Q q 0 0 0 rg BT 58.52 682.25 Td (e subject to risks and uncertainties. Should one or mor) Tj ET Q q 0 0 0 rg BT 279.52 682.25 Td (e of these risks or uncertainties materialize, actual r) Tj ET Q q 0 0 0 rg BT 488.29 682.25 Td (esults may differ ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (materially fr) Tj ET Q q 0 0 0 rg BT 99.90 670.25 Td (om those expr) Tj ET Q q 0 0 0 rg BT 155.63 670.25 Td (essed or implied by the forwar) Tj ET Q q 0 0 0 rg BT 277.19 670.25 Td (d-looking statements. Please see Special Note Regar) Tj ET Q q 0 0 0 rg BT 495.11 670.25 Td (ding Forwar) Tj ET Q q 0 0 0 rg BT 545.58 670.25 Td (d-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 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 50.00 634.25 Td (Executive Summary) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 610.25 Td (Hines Global REIT) Tj ET Q q 0 0 0 rg BT 145.58 610.25 Td ( II, Inc. \(Hines Global II and, together with its consolidated subsidiaries, we, us or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (Company\) was formed in July 2013 to invest in a diversified portfolio of quality commercial real estate properties and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (real estate investments located throughout the United States and internationally) Tj ET Q q 0 0 0 rg BT 366.21 586.25 Td (. In ) Tj ET Q q 0 0 0 rg BT 383.98 586.25 Td (August 2014, we commenced an of) Tj ET Q q 0 0 0 rg BT 525.43 586.25 Td (fering of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.78 574.25 Td ($2.5 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.89 574.25 Td ( of our common stock \(the Of) Tj ET Q q 0 0 0 rg BT 242.01 574.25 Td (fering\). ) Tj ET Q q 0 0 0 rg BT 280.98 574.25 Td (The Of) Tj ET Q q 0 0 0 rg BT 309.39 574.25 Td (fering was amended in ) Tj ET Q q 0 0 0 rg BT 402.14 574.25 Td (August 2015 such that we are currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 562.25 Td (fering our common stock in any combination of Class ) Tj ET Q q 0 0 0 rg BT 275.62 562.25 Td (A) Tj ET Q q 0 0 0 rg BT 282.29 562.25 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 325.71 562.25 Td (T) Tj ET Q q 0 0 0 rg BT 331.64 562.25 Td ( shares, at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.10 562.25 Td ($10.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.60 562.25 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 482.99 562.25 Td (A) Tj ET Q q 0 0 0 rg BT 489.66 562.25 Td ( share of common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (stock \(Class ) Tj ET Q q 0 0 0 rg BT 105.00 550.25 Td (A) Tj ET Q q 0 0 0 rg BT 111.67 550.25 Td ( Shares\) and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.03 550.25 Td ($9.4489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.53 550.25 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 242.29 550.25 Td (T) Tj ET Q q 0 0 0 rg BT 248.22 550.25 Td ( share of common stock \(Class ) Tj ET Q q 0 0 0 rg BT 378.01 550.25 Td (T) Tj ET Q q 0 0 0 rg BT 383.94 550.25 Td ( Shares\). ) Tj ET Q q 0 0 0 rg BT 427.81 550.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.26 550.25 Td (March18, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.85 550.25 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (received gross of) Tj ET Q q 0 0 0 rg BT 118.13 538.25 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.37 538.25 Td ($133.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.26 538.25 Td ( from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.29 538.25 Td (13.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.18 538.25 Td ( shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 514.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 514.25 Td (e intend to meet our primary investment objectives by investing in a portfolio of real estate properties and other real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (estate investments that relate to properties that are generally diversified by geographic area, lease expirations and tenant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (industries. ) Tj ET Q q 0 0 0 rg BT 95.83 490.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.28 490.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.86 490.25 Td (, we owned interests in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.29 490.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.29 490.25 Td ( commercial real estate investments which contain, in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (aggregate, 314,879 square feet of leasable space. ) Tj ET Q q 0 0 0 rg BT 249.63 478.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 299.54 478.25 Td (, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.81 478.25 Td (January 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.41 478.25 Td (, we acquired a multi-family community ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.89 466.25 Td (308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.89 466.25 Td ( units with an average unit size of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.07 466.25 Td (1,075) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.57 466.25 Td ( square feet. See ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 349.091796875 464.9169921875 m 374.9169921875 464.9169921875 l s q 0 0 1 rg BT 349.09 466.25 Td (Item 2) Tj ET Q BT /F3 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 374.92 466.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.42 466.25 Td ( Properties for additional information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td (regarding our real estate investments.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (Critical ) Tj ET Q q 0 0 0 rg BT 84.71 430.25 Td (Accounting ) Tj ET Q q 0 0 0 rg BT 136.10 430.25 Td (Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 406.25 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 50.00 394.25 Td (statements, which have been prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 308.52 394.25 Td (. ) Tj ET Q q 0 0 0 rg BT 315.83 394.25 Td (The preparation of the consolidated financial statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (requires us to make estimates and judgments that af) Tj ET Q q 0 0 0 rg BT 256.43 382.25 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 50.00 370.25 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 504.39 370.25 Td (W) Tj ET Q q 0 0 0 rg BT 513.03 370.25 Td (e evaluate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (our assumptions and estimates on an ongoing basis. ) Tj ET Q q 0 0 0 rg BT 261.46 358.25 Td (W) Tj ET Q q 0 0 0 rg BT 270.10 358.25 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 50.00 346.25 Td (assumptions that we believe to be reasonable under the circumstances. ) Tj ET Q q 0 0 0 rg BT 336.02 346.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 385.92 346.25 Td (, application of our accounting policies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (involves exercising judgments regarding assumptions as to future uncertainties. ) Tj ET Q q 0 0 0 rg BT 372.43 334.25 Td (Actual results may dif) Tj ET Q q 0 0 0 rg BT 460.84 334.25 Td (fer from these estimates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (under dif) Tj ET Q q 0 0 0 rg BT 86.20 322.25 Td (ferent assumptions or conditions. ) Tj ET Q q 0 0 0 rg BT 223.77 322.25 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 50.00 310.25 Td (all of our significant accounting policies, see ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 231.611328125 308.9169921875 m 258.5498046875 308.9169921875 l s q 0 0 1 rg BT 231.61 310.25 Td (Note 2) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 258.55 310.25 Td ( Summary of Significant ) Tj ET Q q 0 0 0 rg BT 371.60 310.25 Td (Accounting Policies, to the accompanying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (consolidated financial statements.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 59.00 274.25 Td (Basis of Presentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 250.25 Td (Our consolidated financial statements included in this ) Tj ET Q q 0 0 0 rg BT 284.89 250.25 Td (Annual Report include the accounts of Hines Global II and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 Td (Operating Partnership \(over which we exercise financial and operating control\). ) Tj ET Q q 0 0 0 rg BT 373.77 238.25 Td (All intercompany balances and transactions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.25 Td (have been eliminated in consolidation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 202.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 202.25 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 536.59 202.25 Td (W) Tj ET Q q 0 0 0 rg BT 545.23 202.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 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 50.00 178.25 Td (for which we are the primary beneficiary) Tj ET Q q 0 0 0 rg BT 213.16 178.25 Td (. ) Tj ET Q q 0 0 0 rg BT 220.48 178.25 Td (W) Tj ET Q q 0 0 0 rg BT 229.12 178.25 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 50.00 166.25 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 50.00 154.25 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 526.89 154.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.25 Td (analysis required to identify ) Tj ET Q q 0 0 0 rg BT 164.23 142.25 Td (VIEs and primary beneficiaries is complex and requires substantial judgment. ) Tj ET Q q 0 0 0 rg BT 479.70 142.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 529.04 142.25 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td (believe the decisions made to choose an appropriate accounting framework are critical. ) Tj ET Q q 0 0 0 rg BT 403.00 130.25 Td (T) Tj ET Q q 0 0 0 rg BT 408.41 130.25 Td (o date, we have not entered into any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (such joint ventures.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 59.00 94.25 Td (Investment Property and Lease Intangibles) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 70.25 Td (When we acquire a property) Tj ET Q q 0 0 0 rg BT 180.63 70.25 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 58.25 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 46.25 Td (liabilities. Fair value determinations are based on estimated cash flow projections that utilize discount and/or capitalization ) Tj ET Q endstream endobj 101 0 obj <>] /Rotate 0 /Contents 102 0 R>> endobj 102 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (rates, as well as certain available market information. ) Tj ET Q q 0 0 0 rg BT 268.34 742.10 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 50.00 730.10 Td (the property as if it were vacant. ) Tj ET Q q 0 0 0 rg BT 183.93 730.10 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 50.00 718.10 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 50.00 706.10 Td (periods, current market conditions and market rates, the customer) Tj ET Q q 0 0 0 rg BT 312.50 706.10 Td () Tj ET Q q 0 0 0 rg BT 315.28 706.10 Td (s credit quality and costs to execute similar leases. ) Tj ET Q q 0 0 0 rg BT 521.43 706.10 Td (The fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (value of out-of-market leases is calculated as the present value \(using a discount rate that reflects the risks associated with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (leases\) of the dif) Tj ET Q q 0 0 0 rg BT 116.18 682.10 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 50.00 670.10 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 50.00 658.10 Td (market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 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 50.00 634.10 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 68.00 610.10 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 50.00 598.10 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 50.00 586.10 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 50.00 574.10 Td (basis to the carrying amount of such property) Tj ET Q q 0 0 0 rg BT 230.69 574.10 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 50.00 562.10 Td (down to theestimated fair value to reflect impairment in the value of the asset. ) Tj ET Q q 0 0 0 rg BT 369.43 562.10 Td (The determination of whether investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 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 50.00 538.10 Td (to management at the time of the evaluation.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 59.00 514.10 Td (Deferred Leasing Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 490.10 Td (e consider a number of dif) Tj ET Q q 0 0 0 rg BT 181.70 490.10 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 50.00 478.10 Td (accounting purposes. ) Tj ET Q q 0 0 0 rg BT 139.24 478.10 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 50.00 466.10 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 50.00 454.10 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 50.00 442.10 Td (constructs or directs the construction of the improvements. ) Tj ET Q q 0 0 0 rg BT 289.76 442.10 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 50.00 430.10 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 50.00 418.10 Td (one factor) Tj ET Q q 0 0 0 rg BT 89.85 418.10 Td (, however) Tj ET Q q 0 0 0 rg BT 128.88 418.10 Td (, necessarily establishes any determination.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 59.00 394.10 Td (Revenue Recognition and V) Tj ET Q q 0 0 0 rg BT 173.17 394.10 Td (aluation of Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 370.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 370.10 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 50.00 358.10 Td (holidays and bar) Tj ET Q q 0 0 0 rg BT 115.91 358.10 Td (gain renewal options, if any) Tj ET Q q 0 0 0 rg BT 226.62 358.10 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 50.00 346.10 Td (which the expenses are incurred based upon the tenant) Tj ET Q q 0 0 0 rg BT 270.47 346.10 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 50.00 334.10 Td (reimbursements and there are many variations in the computation. ) Tj ET Q q 0 0 0 rg BT 319.46 334.10 Td (W) Tj ET Q q 0 0 0 rg BT 328.10 334.10 Td (e make quarterly accrual adjustments, positive or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 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 50.00 310.10 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 50.00 298.10 Td (line basis amortized from the time that a tenant) Tj ET Q q 0 0 0 rg BT 241.05 298.10 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 50.00 286.10 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 472.72 286.10 Td (T) Tj ET Q q 0 0 0 rg BT 478.13 286.10 Td (o the extent our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 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 50.00 262.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 99.34 262.10 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 50.00 250.10 Td (specific tenant is collectible. ) Tj ET Q q 0 0 0 rg BT 168.66 250.10 Td (W) Tj ET Q q 0 0 0 rg BT 177.30 250.10 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 547.72 250.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (payment history) Tj ET Q q 0 0 0 rg BT 114.06 238.10 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 50.00 226.10 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 50.00 214.10 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 50.00 202.10 Td (record a direct write-of) Tj ET Q q 0 0 0 rg BT 142.27 202.10 Td (f of the specific rent receivable, which would have an adverse ef) Tj ET Q q 0 0 0 rg BT 399.74 202.10 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 50.00 190.10 Td (which the reserve is increased or the direct write-of) Tj ET Q q 0 0 0 rg BT 255.28 190.10 Td (f is recorded and would decrease our total assets and stockholders) Tj ET Q q 0 0 0 rg BT 521.12 190.10 Td ( equity) Tj ET Q q 0 0 0 rg BT 547.96 190.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 59.00 166.10 Td (Recent ) Tj ET Q q 0 0 0 rg BT 89.45 166.10 Td (Accounting Pronouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 142.10 Td (See ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 84.9384765625 140.76699218750002 m 111.876953125 140.76699218750002 l s q 0 0 1 rg BT 84.94 142.10 Td (Note 2) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 111.88 142.10 Td ( Summary of Significant ) Tj ET Q q 0 0 0 rg BT 224.92 142.10 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 50.00 130.10 Td (and the potential impact, if any) Tj ET Q q 0 0 0 rg BT 173.75 130.10 Td (, on our financial statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (FinancialCondition, ) Tj ET Q q 0 0 0 rg BT 140.30 106.10 Td (Liquidityand ) Tj ET Q q 0 0 0 rg BT 201.44 106.10 Td (Capital ) Tj ET Q q 0 0 0 rg BT 235.61 106.10 Td (Resour) Tj ET Q q 0 0 0 rg BT 265.98 106.10 Td (ces) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 82.10 Td (Our principal demands for funds are to purchase real estate properties and make other real estate investments, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (payment of operating expenses and distributions, and for the payment of principal and interest on any indebtedness we incur) Tj ET Q q 0 0 0 rg BT 546.81 70.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (Generally) Tj ET Q q 0 0 0 rg BT 88.77 58.10 Td (, we expect to meet operating cash needs from our cash flows from operating activities, and we expect to meet cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (needs for acquisitions and investments from the net proceeds of the Of) Tj ET Q q 0 0 0 rg BT 332.24 46.10 Td (fering and from debt proceeds.) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 730.10 Td (e expect that once we have fully invested the proceeds of the Of) Tj ET Q q 0 0 0 rg BT 332.46 730.10 Td (fering and other potential subsequent of) Tj ET Q q 0 0 0 rg BT 491.40 730.10 Td (ferings, our debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (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 50.00 706.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.26 706.10 Td (40%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.59 706.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.37 706.10 Td (60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.70 706.10 Td ( of the aggregate value of our real estate investments and other assets. Financing for acquisitions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (and investments may be obtained at the time an asset is acquired or an investment is made or at such later time as determined to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 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 50.00 670.10 Td (tenant improvements and other working capital needs. ) Tj ET Q q 0 0 0 rg BT 271.33 670.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 321.23 670.10 Td (, the amount of debt placed on an individual property or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (related to a particular investment, including our pro rata share of the amount of debt incurred by an individual entity in which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (we invest, may be less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.92 646.10 Td (40%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.25 646.10 Td ( or more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.34 646.10 Td (60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.67 646.10 Td ( of the value of such property/investment or the value of the assets owned by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (such entity) Tj ET Q q 0 0 0 rg BT 92.95 634.10 Td (, depending on market conditions and other factors. Our aggregate borrowings, secured and unsecured, must be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (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 463.10 622.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 598.10 Td (Our charter limits our borrowing to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.86 598.10 Td (300%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.19 598.10 Td ( of our net assets \(which approximates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.54 598.10 Td (75%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.87 598.10 Td ( of the cost of our assets\) unless any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (excess borrowing is approved by a majority of our independent directors and is disclosed to our stockholders in our next ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (quarterly report along with justification for the excess. Our independent directors have approved borrowings in excess of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (limitations in connection with our first two investments, as we are in the early stages of raising capital through the Of) Tj ET Q q 0 0 0 rg BT 519.43 562.10 Td (fering. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (December 2014, our board of directors, including all of our independent directors, approved a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.93 550.10 Td ($24.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.82 550.10 Td ( borrowing under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (the Hines Credit Facility to fund our acquisition of 2819 Loker ) Tj ET Q q 0 0 0 rg BT 303.57 538.10 Td (A) Tj ET Q q 0 0 0 rg BT 310.05 538.10 Td (venue East, which was equal to approximately 95% of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (contract purchase price of 2819 Loker ) Tj ET Q q 0 0 0 rg BT 204.38 526.10 Td (A) Tj ET Q q 0 0 0 rg BT 210.86 526.10 Td (venue East. ) Tj ET Q q 0 0 0 rg BT 261.40 526.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 311.30 526.10 Td (, in January 2015, our board of directors, including all of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (independent directors, approved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.06 514.10 Td ($45.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.96 514.10 Td ( of additional borrowings under the Hines Credit Facility and a 55.2 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (secured credit facility \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.45 502.10 Td ($62.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.34 502.10 Td ( using ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.01 502.10 Td ($1.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.51 502.10 Td ( per Euro as of the transaction date\) for the purchase of Bishop) Tj ET Q q 0 0 0 rg BT 499.32 502.10 Td (s Square in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (March 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.60 490.10 Td (. In total, these borrowings represented approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.64 490.10 Td (104%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.97 490.10 Td ( of the cost of Bishop) Tj ET Q q 0 0 0 rg BT 431.58 490.10 Td (s Square based on the contract ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (purchase price. ) Tj ET Q q 0 0 0 rg BT 114.97 478.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.41 478.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.00 478.10 Td (, our portfolio was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.63 478.10 Td (41%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.96 478.10 Td ( leveraged based on the net purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (our real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 442.10 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 50.00 430.10 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 466.00 430.10 Td (Any indebtedness we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 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 50.00 406.10 Td (warranties about our company in connection with such debt. Moreover) Tj ET Q q 0 0 0 rg BT 335.35 406.10 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 50.00 394.10 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 50.00 382.10 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 50.00 370.10 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 50.00 358.10 Td (foreclose on our assets that are pledged as collateral to such lender) Tj ET Q q 0 0 0 rg BT 315.73 358.10 Td (. ) Tj ET Q q 0 0 0 rg BT 323.05 358.10 Td (The lender could also sue us or force us into bankruptcy) Tj ET Q q 0 0 0 rg BT 546.78 358.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (Any such event would have a material adverse ef) Tj ET Q q 0 0 0 rg BT 246.41 346.10 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 68.00 322.10 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 59.00 298.10 Td (Cash Flows from Operating ) Tj ET Q q 0 0 0 rg BT 176.43 298.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 274.10 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 50.00 262.10 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 50.00 250.10 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 50.00 238.10 Td (management and leasing fees, and property taxes. ) Tj ET Q q 0 0 0 rg BT 253.26 238.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 303.16 238.10 Td (, we incur general and administrative expenses, acquisition fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (and expenses and asset management fees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 202.10 Td (Net cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.21 202.10 Td (used in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.82 202.10 Td ( operating activities for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.03 202.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.61 202.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.05 202.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.05 202.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.60 202.10 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.50 202.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.93 202.10 Td ($241,298) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.43 202.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 190.10 Td (. Net cash provided by operating activities was reduced by the payment of acquisition fees and acquisition-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (expenses totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.65 178.10 Td ($5.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.54 178.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.98 178.10 Td ($23,528) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.48 178.10 Td ( for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.83 178.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.42 178.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.86 178.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.86 178.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 474.52 178.10 Td (. Under GAAP) Tj ET Q q 0 0 0 rg BT 535.63 178.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (acquisition fees and expenses and acquisition-related expenses are expensed and therefore reduce cash flows from operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (activities. However) Tj ET Q q 0 0 0 rg BT 129.85 154.10 Td (, we fund these expenses with proceeds from the Of) Tj ET Q q 0 0 0 rg BT 336.83 154.10 Td (fering and/or acquisition-related indebtedness. ) Tj ET Q q 0 0 0 rg BT 527.14 154.10 Td (W) Tj ET Q q 0 0 0 rg BT 535.78 154.10 Td (e had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (no cash flows from operating activities for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.25 142.10 Td (December31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.84 142.10 Td (.) 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 /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 (Cash flows from investing activities generally consists of our acquisitions of real estate investments. Listed below are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.25 Td (details of our investing cash flows for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.27 706.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.86 706.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.29 706.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.29 706.25 Td (. ) Tj ET Q q 0 0 0 rg BT 393.61 706.25 Td (W) Tj ET Q q 0 0 0 rg BT 402.25 706.25 Td (e had no cash flows used in investing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (activities for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.56 694.25 Td (December31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.14 694.25 Td (.) 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 50 668.9169921875 m 70 668.9169921875 l s q 0 0 0 rg BT 50.00 670.25 Td (2015) Tj ET Q BT /F3 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 (W) Tj ET Q q 0 0 0 rg BT 76.64 643.25 Td (e paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.29 643.25 Td ($102.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.18 643.25 Td ( related to the acquisition of Bishop) Tj ET Q q 0 0 0 rg BT 307.71 643.25 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 50.00 628.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 628.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 628.25 Td (e incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.39 628.25 Td ($332,557) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.89 628.25 Td ( in capital expenditures at Bishop) Tj ET Q q 0 0 0 rg BT 293.25 628.25 Td (s Square primarily related to a planned expansion and new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 616.25 Td (equipment at the property) Tj ET Q q 0 0 0 rg BT 170.37 616.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 601.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 601.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 601.25 Td (e funded a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.78 601.25 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.67 601.25 Td ( earnest money deposit in connection with the acquisition of the Domain ) Tj ET Q q 0 0 0 rg BT 461.83 601.25 Td (Apartments, which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 589.25 Td (acquired in January 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 574.25 Td (Restricted cash increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.06 574.25 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.96 574.25 Td (, which primarily related to rents at Bishop) Tj ET Q q 0 0 0 rg BT 407.36 574.25 Td (s Square that had not been released to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 562.25 Td (us yet by the lender as of the end of 2015, but were released in 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 50 536.9169921875 m 70 536.9169921875 l s q 0 0 0 rg BT 50.00 538.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 511.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 511.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 511.25 Td (e paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.29 511.25 Td ($25.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.18 511.25 Td ( related to the acquisition of 2819 Loker ) Tj ET Q q 0 0 0 rg BT 319.92 511.25 Td (A) Tj ET Q q 0 0 0 rg BT 326.40 511.25 Td (venue East and its related lease intangibles.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 59.00 487.25 Td (Cash Flows from Financing ) Tj ET Q q 0 0 0 rg BT 178.11 487.25 Td (Activities) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 463.25 Td (Initial Public Offering) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 439.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 439.25 Td (e commenced the Of) Tj ET Q q 0 0 0 rg BT 159.47 439.25 Td (fering in ) Tj ET Q q 0 0 0 rg BT 195.58 439.25 Td (August 2014 and met our minimum of) Tj ET Q q 0 0 0 rg BT 349.27 439.25 Td (fering requirements for every state, except ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 427.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 427.25 Td (ashington and Pennsylvania, in September 2014 \(the minimum of) Tj ET Q q 0 0 0 rg BT 320.92 427.25 Td (fering requirements were met in March 2015 with respect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 415.25 Td (the state of ) Tj ET Q q 0 0 0 rg BT 96.19 415.25 Td (W) Tj ET Q q 0 0 0 rg BT 104.83 415.25 Td (ashington and December 2015 with respect to the state of Pennsylvania\). During the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.66 415.25 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 403.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 403.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.44 403.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.44 403.25 Td (, we raised gross proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.46 403.25 Td ($101.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.35 403.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.79 403.25 Td ($3.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.68 403.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 407.34 403.25 Td (, from the Of) Tj ET Q q 0 0 0 rg BT 459.37 403.25 Td (fering, excluding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 391.25 Td (proceeds from the distribution reinvestment plan. In addition, during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.19 391.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.77 391.25 Td (, we redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.29 391.25 Td ($1) Tj ET Q q 0 0 0 rg BT 538.92 391.25 Td (1,944) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.42 391.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 379.25 Td (in shares of common stock pursuant to our share redemption program. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.77 379.25 Td (No) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.99 379.25 Td ( shares of our common stock were redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 367.25 Td (pursuant to our share redemption program for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.03 367.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.61 367.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 343.25 Td (In addition to the investing activities described previously) Tj ET Q q 0 0 0 rg BT 299.25 343.25 Td (, we use proceeds from the Of) Tj ET Q q 0 0 0 rg BT 419.30 343.25 Td (fering to make certain payments to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 331.25 Td (our ) Tj ET Q q 0 0 0 rg BT 65.28 331.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 97.10 331.25 Td (, our Dealer Manager and Hines and their af) Tj ET Q q 0 0 0 rg BT 273.23 331.25 Td (filiates during the various phases of our or) Tj ET Q q 0 0 0 rg BT 442.18 331.25 Td (ganization and operation. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 319.25 Td (During the or) Tj ET Q q 0 0 0 rg BT 103.70 319.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 172.93 319.25 Td (fering stage, these include payments to our Dealer Manager for selling commissions, dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 307.25 Td (manager fees, distribution and stockholder servicing fees and payments to our ) Tj ET Q q 0 0 0 rg BT 363.80 307.25 Td (Advisor for reimbursement of issuer costs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 295.25 Td (During the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.52 295.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.11 295.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.54 295.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.54 295.25 Td (, we made payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.52 295.25 Td ($14.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.41 295.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.85 295.25 Td ($95,135) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.35 295.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 517.01 295.25 Td (, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 283.25 Td (selling commissions, dealer manager fees, and issuer costs related to the Of) Tj ET Q q 0 0 0 rg BT 351.67 283.25 Td (fering.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 259.25 Td (Distributions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 235.25 Td (Our board of directors authorized us to declare distributions with respect to Class ) Tj ET Q q 0 0 0 rg BT 394.87 235.25 Td (A) Tj ET Q q 0 0 0 rg BT 401.54 235.25 Td ( Shares of our common stock for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 223.25 Td (period from October1, 2014 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.80 223.25 Td (March 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.40 223.25 Td (, which have been or will be calculated based on stockholders of record ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 211.25 Td (each day in an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.90 211.25 Td ($0.001575342) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.40 211.25 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 275.79 211.25 Td (A) Tj ET Q q 0 0 0 rg BT 282.46 211.25 Td ( Share, per day) Tj ET Q q 0 0 0 rg BT 341.78 211.25 Td (. ) Tj ET Q q 0 0 0 rg BT 349.10 211.25 Td (The board of directors also authorized us to declare ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 199.25 Td (distributions with respect to Class ) Tj ET Q q 0 0 0 rg BT 187.87 199.25 Td (T) Tj ET Q q 0 0 0 rg BT 193.79 199.25 Td ( Shares of our common stock for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.53 199.25 Td (August24, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.92 199.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.03 199.25 Td (March 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.63 199.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 187.25 Td (which have been or will be calculated based onstockholders of record each day in an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.13 187.25 Td ($0.001575342) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.63 187.25 Td ( per share, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 175.25 Td (per day less the distribution and stockholder servicing fees that are payable with respect to such Class ) Tj ET Q q 0 0 0 rg BT 458.87 175.25 Td (T) Tj ET Q q 0 0 0 rg BT 464.80 175.25 Td ( Shares \(as calculated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 163.25 Td (on a daily basis\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 139.25 Td (All distributions were or will be paid in cash or reinvested in shares of our common stock for those participating in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 127.25 Td (distribution reinvestment plan and have been or will be paid or issued, respectively) Tj ET Q q 0 0 0 rg BT 381.21 127.25 Td (, on the first business day following the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 115.25 Td (completion of the month to which they relate. Distributions reinvested pursuant to the distribution reinvestment plan have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 103.25 Td (or will be reinvested in shares of the same class as the shares on which the distributions are being made. Distributions paid to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 91.25 Td (stockholders \(including those reinvested in shares pursuant to our distribution reinvestment plan\) during the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 79.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 79.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.02 79.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.02 79.25 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.45 79.25 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.34 79.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.78 79.25 Td ($24,910) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.28 79.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 345.94 79.25 Td (.) 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 68.00 742.10 Td (In addition to the distributions described above, our board of directors authorized special stock dividends to holders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.62 730.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.29 730.10 Td ( Shares as of daily record dates for the period from October1, 2014 through June30, 2015. Stock dividends for Class ) Tj ET Q q 0 0 0 rg BT 554.64 730.10 Td (A) Tj ET Q q 0 0 0 rg BT 561.31 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (Shares were calculated based on stockholders of record each day in an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.70 718.10 Td (0.0000273973) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.20 718.10 Td ( of a Class ) Tj ET Q q 0 0 0 rg BT 502.08 718.10 Td (A) Tj ET Q q 0 0 0 rg BT 508.75 718.10 Td ( Share per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (share, per day) Tj ET Q q 0 0 0 rg BT 105.16 706.10 Td (. Shares issued related to our stock dividends were issued on the first business day of the month following the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (quarter to which they related. For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.54 694.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.12 694.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.56 694.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.56 694.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 424.22 694.10 Td (, we issued stock dividends of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (12,470) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 682.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.94 682.10 Td (737) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.94 682.10 Td ( shares, which equated to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.24 682.10 Td ($124,700) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.74 682.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.18 682.10 Td ($7,367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.68 682.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 352.34 682.10 Td (, using the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.23 682.10 Td ($10.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.73 682.10 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 465.11 682.10 Td (A) Tj ET Q q 0 0 0 rg BT 471.78 682.10 Td ( Share of) Tj ET Q q 0 0 0 rg BT 507.70 682.10 Td (fering price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (in ef) Tj ET Q q 0 0 0 rg BT 67.87 670.10 Td (fect on the respective dates the shares were issued.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 646.10 Td (e have not generated suf) Tj ET Q q 0 0 0 rg BT 173.63 646.10 Td (ficient cash flows from operations to fully fund distributions paid. ) Tj ET Q q 0 0 0 rg BT 442.30 646.10 Td (Therefore, some or all of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (distributions have been and may continue to be paid from other sources, such as proceeds from our debt financings, proceeds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (from the Of) Tj ET Q q 0 0 0 rg BT 97.03 622.10 Td (fering, cash advances by our ) Tj ET Q q 0 0 0 rg BT 213.10 622.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 244.92 622.10 Td (, cash resulting from a waiver or deferral of fees and/or proceeds from the sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (of assets. For example, for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.78 610.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.36 610.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.80 610.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.80 610.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 396.46 610.10 Td (, we funded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.89 610.10 Td (23%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.22 610.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.66 610.10 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.99 610.10 Td ( of total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (distributions with cash flows from financing activities, which includes of) Tj ET Q q 0 0 0 rg BT 341.99 598.10 Td (fering proceeds. Our ) Tj ET Q q 0 0 0 rg BT 426.40 598.10 Td (Advisor agreed to waive asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (management fees for each quarter in 2015 and the quarter ended December 31, 2014, to the extent that our MFFO, for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (particular quarter) Tj ET Q q 0 0 0 rg BT 118.73 574.10 Td (, is less than our distributions declared for such quarter) Tj ET Q q 0 0 0 rg BT 337.56 574.10 Td (. Our ) Tj ET Q q 0 0 0 rg BT 362.56 574.10 Td (Advisor also agreed to waive an additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td ($62,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 562.10 Td ( in asset management fees so that our MFFO for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.82 562.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.40 562.10 Td ( would equal our distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (declared for such year) Tj ET Q q 0 0 0 rg BT 138.01 550.10 Td (. ) Tj ET Q q 0 0 0 rg BT 144.96 550.10 Td (As a result of these waivers, our ) Tj ET Q q 0 0 0 rg BT 275.48 550.10 Td (Advisor waived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.58 550.10 Td ($583,433) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.08 550.10 Td ( of the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.40 550.10 Td ($888,109) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.90 550.10 Td ( in asset management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (fees payable to it during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.94 538.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.52 538.10 Td ( and all of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 538.10 Td ($16,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.50 538.10 Td ( of asset management fees payable to it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.41 526.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.99 526.10 Td (. ) Tj ET Q q 0 0 0 rg BT 225.31 526.10 Td (W) Tj ET Q q 0 0 0 rg BT 233.95 526.10 Td (e have not placed a cap on the amount of our distributions that may be paid from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (any of these sources.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 490.10 Td (Our advisor has also agreed to waive the asset management fees otherwise payable to it for each of the quarters ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (March 31, 2016 and June 30, 2016, to the extent that our MFFO for such quarters, as disclosed in our Quarterly Report on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (Form 10-Q, amounts to less than 100% of the aggregate distributions declared to our stockholders for each respective quarter) Tj ET Q q 0 0 0 rg BT 550.14 466.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (As a result of these fee waivers, cash flows from operations that would have been paid to our ) Tj ET Q q 0 0 0 rg BT 424.06 454.10 Td (Advisor for asset management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (feesmay be available to pay distributions to stockholders. ) Tj ET Q q 0 0 0 rg BT 286.71 442.10 Td (These fee waivers are not deferrals and accordingly) Tj ET Q q 0 0 0 rg BT 492.34 442.10 Td (, any fees that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (are waived will not be paid to our ) Tj ET Q q 0 0 0 rg BT 186.63 430.10 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 68.00 406.10 Td (The following table outlines our total cash distributions declared to stockholders and noncontrolling interests \(HALP) Tj ET Q q 0 0 0 rg BT 535.31 406.10 Td ( II\) for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (each of the quarters during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.68 394.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.68 394.10 Td ( and the quarter ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.61 394.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.61 394.10 Td (, including the breakout between the distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (declared in cash and those reinvested pursuant to our distribution reinvestment plan.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 315.60 102.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 152.50 315.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 315.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.50 315.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.50 315.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 315.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 315.60 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.50 315.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.50 315.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 315.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.50 315.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 315.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 315.60 33.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 315.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.50 315.60 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.50 315.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 529.50 315.60 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 156.5 336.6 m 209.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209.5 336.6 m 213.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213.5 336.6 m 268.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 336.6 m 272.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 336.6 m 321.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 336.6 m 391.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 336.6 m 443.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 336.6 m 447.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 336.6 m 480.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 336.6 m 484.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 336.6 m 525.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 525.5 336.6 m 529.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 529.5 336.6 m 562.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 315.6 m 152.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 156.5 336.6 m 209.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 156.5 315.6 m 209.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213.5 336.6 m 268.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213.5 315.6 m 268.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 315.6 m 321.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 315.6 m 391.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 315.6 m 443.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 315.6 m 447.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 315.6 m 480.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 315.6 m 525.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 525.5 315.6 m 529.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 529.5 315.6 m 562.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 315.6 m 152.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 156.5 315.6 m 209.5 315.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 340.85 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 213.45 341.05 Td (Stockholders) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 329.05 350.05 Td (Noncontrolling) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 341.30 341.05 Td (Interests) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 463.55 341.05 Td (Sources) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 327.83 Td (Distributions for the Years) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 319.83 Td (Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 173.80 327.83 Td (Cash) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 160.05 319.83 Td (Distributions) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 218.05 327.83 Td (Distributions) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 221.80 319.83 Td (Reinvested) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 287.75 327.83 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 281.20 319.83 Td (Declared) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.00 319.83 Td (Total Declared) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.35 327.83 Td (Cash Flows From) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.15 319.83 Td (Operating Activities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.85 327.83 Td (Cash Flows From) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 489.10 319.83 Td (Financing Activities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 306.06 Td (December 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 159.00 306.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 170.00 306.06 Td (1,432,201) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 216.00 306.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 229.00 306.06 Td (1,491,950) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 306.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 282.00 306.06 Td (2,924,151) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 328.00 306.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.25 306.06 Td (12,139) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.00 306.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 306.06 Td (2,275,529) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.50 306.06 Td (77) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.50 306.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.00 306.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.75 306.06 Td (660,761) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 306.06 Td (23) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 306.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 292.06 Td (December 31, 2014) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 123.73 296.14 Td ( \(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 159.00 292.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 181.25 292.06 Td (40,377) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 216.00 292.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 244.75 292.06 Td (1,841) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 275.00 292.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 293.25 292.06 Td (42,218) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 328.00 292.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.75 292.06 Td (3,060) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.00 292.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.00 292.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.50 292.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.50 292.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.00 292.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 497.25 292.06 Td (45,278) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 541.00 292.06 Td (100) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 292.06 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 268.90 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 268.90 Td (During 2014, cash distributions were only declared for the quarter ended December 31, 2014.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 244.90 Td (Debt Financings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 220.90 Td (As mentioned previously) Tj ET Q q 0 0 0 rg BT 167.89 220.90 Td (, our portfolio was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.27 220.90 Td (41%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.60 220.90 Td ( leveraged based on the net purchase price of our real estate investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 208.90 Td (as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.66 208.90 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.24 208.90 Td ( with a weighted average interest rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.95 208.90 Td (1.30%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.78 208.90 Td (. Below is additional information regarding our loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.90 Td (activities for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.45 196.90 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.04 196.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.47 196.90 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.47 196.90 Td (. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.91 196.90 Td (Note 5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.85 196.90 Td ( Debt Financing for additional information regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.90 Td (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 50 159.56699218749998 m 70 159.56699218749998 l s q 0 0 0 rg BT 50.00 160.90 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 160.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 133.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 133.90 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 133.90 Td (e entered into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.56 133.90 Td ($61.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.45 133.90 Td ( of permanent mortgage financing and borrowed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.77 133.90 Td ($50.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.66 133.90 Td ( under our Hines Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 121.90 Td (Facility related to the acquisition of Bishop) Tj ET Q q 0 0 0 rg BT 244.08 121.90 Td (s Square.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 106.90 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 106.90 Td (e made payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.39 106.90 Td ($74.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.28 106.90 Td ( on our Hines Credit Facility using net proceeds from the Of) Tj ET Q q 0 0 0 rg BT 454.44 106.90 Td (fering, which reduced our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 94.90 Td (balance on this facility to zero as of December 31, 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 79.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 79.90 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 79.90 Td (e made payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.39 79.90 Td ($625,875) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.89 79.90 Td ( for financing costs related to our loans and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.67 79.90 Td ($47,876) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.17 79.90 Td ( for an interest rate cap related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 67.90 Td (mortgage loan secured by Bishop) Tj ET Q q 0 0 0 rg BT 204.64 67.90 Td (s Square.) 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 /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 740.7669921875 m 70 740.7669921875 l s q 0 0 0 rg BT 50.00 742.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 715.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 715.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 715.10 Td (e borrowed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.40 715.10 Td ($24.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.29 715.10 Td ( under the Hines Credit Facility) Tj ET Q q 0 0 0 rg BT 304.00 715.10 Td (, in connection with the acquisition of 2819 Loker ) Tj ET Q q 0 0 0 rg BT 506.18 715.10 Td (A) Tj ET Q q 0 0 0 rg BT 512.66 715.10 Td (venue East.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 691.10 Td (Contributions Fr) Tj ET Q q 0 0 0 rg BT 135.70 691.10 Td (om Noncontr) Tj ET Q q 0 0 0 rg BT 187.82 691.10 Td (olling Inter) Tj ET Q q 0 0 0 rg BT 232.73 691.10 Td (ests) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 667.10 Td (In September 2013, HALP) Tj ET Q q 0 0 0 rg BT 174.84 667.10 Td ( II made its initial capital contribution to the Operating Partnership of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.32 667.10 Td ($190,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.82 667.10 Td ( and, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 655.10 Td (accordingly) Tj ET Q q 0 0 0 rg BT 96.55 655.10 Td (, owned a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.65 655.10 Td (95.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.48 655.10 Td ( limited partner interest in the Operating Partnership. ) Tj ET Q q 0 0 0 rg BT 379.54 655.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.98 655.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.56 655.10 Td (, HALP) Tj ET Q q 0 0 0 rg BT 513.31 655.10 Td ( II owned a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 643.10 Td (0.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.83 643.10 Td ( limited partner interest in the Operating Partnership.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 619.10 Td (Results of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 595.10 Td (Our results of operations for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.00 595.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.58 595.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.02 595.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.02 595.10 Td ( are not indicative of those expected in future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.10 Td (periods as we did not meet our minimum of) Tj ET Q q 0 0 0 rg BT 224.29 583.10 Td (fering requirements until September 2014 \(and subsequent dates with respect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 571.10 Td (ashington and Pennsylvania\) and did not make our first real estate investment until December 2014. ) Tj ET Q q 0 0 0 rg BT 462.58 571.10 Td (W) Tj ET Q q 0 0 0 rg BT 471.21 571.10 Td (e completed our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.10 Td (second acquisition on March 3, 2015. ) Tj ET Q q 0 0 0 rg BT 204.57 559.10 Td (W) Tj ET Q q 0 0 0 rg BT 213.21 559.10 Td (e did not have any results of operations for the period ended July 31, 2013 \(date of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.10 Td (inception\) through December 31, 2013. ) Tj ET Q q 0 0 0 rg BT 211.68 547.10 Td (Amounts recorded in our consolidated statements of operations for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 535.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.52 535.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.52 535.10 Td ( are due to the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 511.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 511.10 Td (T) Tj ET Q q 0 0 0 rg BT 81.91 511.10 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 76.50 499.10 Td (amortization, and interest expense relate to the operation of 2819 Loker ) Tj ET Q q 0 0 0 rg BT 364.73 499.10 Td (A) Tj ET Q q 0 0 0 rg BT 371.21 499.10 Td (venue East \(acquired in December 2014\) and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 487.10 Td (Bishop) Tj ET Q q 0 0 0 rg BT 107.62 487.10 Td (s Square \(acquired in March 2015\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 463.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 463.10 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 76.50 451.10 Td (properties which we may acquire in future periods. During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.15 451.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.15 451.10 Td (, these costs included a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.57 451.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.46 451.10 Td ( Stamp Duty tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 439.10 Td (related to the acquisition of Bishop) Tj ET Q q 0 0 0 rg BT 219.53 439.10 Td (s Square.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 415.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 415.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 415.10 Td (e expect to pay monthly asset management fees to our ) Tj ET Q q 0 0 0 rg BT 303.40 415.10 Td (Advisor based on an annual fee equal to 0.75% of the cost of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 403.10 Td (our real estate investments. ) Tj ET Q q 0 0 0 rg BT 189.80 403.10 Td (As described previously) Tj ET Q q 0 0 0 rg BT 285.80 403.10 Td (, our ) Tj ET Q q 0 0 0 rg BT 306.08 403.10 Td (Advisor agreed to waive asset management fees for each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 391.10 Td (quarter in 2015 and the quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.94 391.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.53 391.10 Td (, to the extent that our MFFO for a particular quarter is less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 379.10 Td (than our distributions declared for such quarter) Tj ET Q q 0 0 0 rg BT 263.67 379.10 Td (. Our ) Tj ET Q q 0 0 0 rg BT 288.67 379.10 Td (Advisor also agreed to waive an additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.23 379.10 Td ($62,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.73 379.10 Td ( in asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 367.10 Td (management fees so that our MFFO for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.10 367.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.69 367.10 Td ( would equal our distributions declared for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 355.10 Td (such year) Tj ET Q q 0 0 0 rg BT 113.99 355.10 Td (. ) Tj ET Q q 0 0 0 rg BT 120.93 355.10 Td (As a result of these waivers, our ) Tj ET Q q 0 0 0 rg BT 251.46 355.10 Td (Advisor waived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.55 355.10 Td ($583,433) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.05 355.10 Td ( of the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.38 355.10 Td ($888,109) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.88 355.10 Td ( in asset management fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 343.10 Td (payable to it during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.84 343.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.42 343.10 Td ( and all of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.90 343.10 Td ($16,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.40 343.10 Td ( of asset management fees payable to it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 331.10 Td (during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.91 331.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.49 331.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 307.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 307.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 307.10 Td (e pay our ) Tj ET Q q 0 0 0 rg BT 124.29 307.10 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 496.96 307.10 Td (Acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 295.10 Td (fees for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.95 295.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.54 295.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.97 295.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.97 295.10 Td ( are comprised of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.88 295.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.77 295.10 Td ( acquisition fee incurred in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 283.10 Td (relation to our acquisition of Bishop) Tj ET Q q 0 0 0 rg BT 223.98 283.10 Td (s Square in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.92 283.10 Td (March 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.52 283.10 Td ( and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.67 283.10 Td ($570,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.17 283.10 Td ( acquisition fee incurred in relation to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 271.10 Td (acquisition of 2819 Loker ) Tj ET Q q 0 0 0 rg BT 182.04 271.10 Td (A) Tj ET Q q 0 0 0 rg BT 188.52 271.10 Td (venue East in December 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 247.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 247.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 247.10 Td (e incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.89 247.10 Td ($63,164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.39 247.10 Td ( in or) Tj ET Q q 0 0 0 rg BT 181.32 247.10 Td (ganizational costs, which consisted of expenses associated with our formation during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.73 247.10 Td (year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 235.10 Td (ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.38 235.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.88 235.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.46 235.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.96 235.10 Td (No) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.18 235.10 Td ( or) Tj ET Q q 0 0 0 rg BT 211.83 235.10 Td (ganizational costs were incurred during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.85 235.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.44 235.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 211.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 211.10 Td (General and administrative expenses for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.74 211.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.33 211.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.76 211.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.76 211.10 Td ( primarily consist of legal and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 199.10 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 76.50 187.10 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 76.50 175.10 Td (estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 151.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 151.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 151.10 Td (e entered into an interest rate cap agreement in March 2015 as an economic hedge against the variability of future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 139.10 Td (interest rates on one of our variable interest rate borrowings. ) Tj ET Q q 0 0 0 rg BT 322.90 139.10 Td (W) Tj ET Q q 0 0 0 rg BT 331.54 139.10 Td (e have not designated this contract as a hedge for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 127.10 Td (accounting purposes. Changes in the fair value of this interest rate cap ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.96 127.10 Td (resulted in a loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.90 127.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.23 127.10 Td ($40,535) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.73 127.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.55 127.10 Td (year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 115.10 Td (ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.38 115.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.88 115.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.46 115.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 91.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 91.10 Td (T) Tj ET Q q 0 0 0 rg BT 81.91 91.10 Td (otal income or loss attributable to noncontrolling interests for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.61 91.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.19 91.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.63 91.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.63 91.10 Td ( relates to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 79.10 Td (our allocation of our net loss to HALP) Tj ET Q q 0 0 0 rg BT 229.72 79.10 Td ( II based on its ownership in the Operating Partnership.) 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 /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 67.50 718.25 Td (Funds from Operations \(FFO\) is a non-GAAP) Tj ET Q q 0 0 0 rg BT 260.44 718.25 Td ( financial performance measure defined by the National ) Tj ET Q q 0 0 0 rg BT 485.35 718.25 Td (Association of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 144.01 706.25 Td (T) Tj ET Q q 0 0 0 rg BT 149.77 706.25 Td (rusts \(NAREIT\) and is widely recognized by investors and analysts as one measure of operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (performance of a real estate company) Tj ET Q q 0 0 0 rg BT 199.05 694.25 Td (. FFO excludes items such as real estate depreciation and amortization. Depreciation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (amortization, as applied in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 251.94 682.25 Td (, implicitly assumes that the value of real estate assets diminishes predictably ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (over time and also assumes that such assets are adequately maintained and renovated as required in order to maintain their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (value. Since real estate values have historically risen or fallen with market conditions such as occupancy rates, rental rates, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (inflation, interest rates, the business cycle, unemployment and consumer spending, it is management) Tj ET Q q 0 0 0 rg BT 454.40 646.25 Td (s view) Tj ET Q q 0 0 0 rg BT 479.58 646.25 Td (, and we believe the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (view of many industry investors and analysts, that the presentation of operating results for real estate companies using historical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (cost accounting alone is insuf) Tj ET Q q 0 0 0 rg BT 167.63 622.25 Td (ficient. In addition, FFO excludes gains and losses from the sale of real estate and impairment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (char) Tj ET Q q 0 0 0 rg BT 66.53 610.25 Td (ges related to depreciable real estate assets and in-substance real estate equity investments, which we believe provides ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (management and investors with a helpful additional measure of the historical performance of our real estate portfolio, as it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (allows for comparisons, year to year) Tj ET Q q 0 0 0 rg BT 194.61 586.25 Td (, that reflect the impact on operations from trends in items such as occupancy rates, rental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (rates, operating costs, general and administrative expenses and interest costs. ) Tj ET Q q 0 0 0 rg BT 361.63 574.25 Td (A) Tj ET Q q 0 0 0 rg BT 368.30 574.25 Td ( property will be evaluated for impairment if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (events or circumstances indicate that the carrying amount may not be recoverable \(i.e. the carrying amount exceeds the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (estimated undiscounted future cash flows from the property\). Undiscounted future cash flows are based on anticipated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (operating 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 529.49 538.25 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (certain other ancillary cash flows. ) Tj ET Q q 0 0 0 rg BT 189.54 526.25 Td (While impairment char) Tj ET Q q 0 0 0 rg BT 282.10 526.25 Td (ges are excluded from the calculation of FFO as described above, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (stockholders are cautioned that due to the limited term of our operations, it could be dif) Tj ET Q q 0 0 0 rg BT 398.67 514.25 Td (ficult to recover any impairment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (char) Tj ET Q q 0 0 0 rg BT 66.53 502.25 Td (ges.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 478.25 Td (In addition to FFO, management uses MFFO, as defined by the Investment Program ) Tj ET Q q 0 0 0 rg BT 406.63 478.25 Td (Association, \(the IP) Tj ET Q q 0 0 0 rg BT 489.30 478.25 Td (A\), as a non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (GAAP) Tj ET Q q 0 0 0 rg BT 76.36 466.25 Td ( supplemental financial performance measure to evaluate our operating performance. ) Tj ET Q q 0 0 0 rg BT 421.02 466.25 Td (The IP) Tj ET Q q 0 0 0 rg BT 447.04 466.25 Td (A) Tj ET Q q 0 0 0 rg BT 453.71 466.25 Td ( has recommended the use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (of MFFO as a supplemental measure for publicly registered, non-listed REIT) Tj ET Q q 0 0 0 rg BT 357.34 454.25 Td (s to enhance the assessment of the operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (performance of a non-listed REIT) Tj ET Q q 0 0 0 rg BT 184.26 442.25 Td (. MFFO is not equivalent to our net income or loss as determined under GAAP) Tj ET Q q 0 0 0 rg BT 501.44 442.25 Td (, and MFFO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (may not be useful as a measure of the long-term operating performance of our investments or as a comparative measure to other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (publicly registered, non-listed REIT) Tj ET Q q 0 0 0 rg BT 193.21 418.25 Td (s if we do not continue to operate with a limited life and tar) Tj ET Q q 0 0 0 rg BT 430.46 418.25 Td (geted exit strategy) Tj ET Q q 0 0 0 rg BT 503.12 418.25 Td (, as currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (intended and described herein. MFFO includes funds generated by the operations of our real estate investments and funds used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (in our corporate-level operations. MFFO is based on FFO, but includes certain additional adjustments which we believe are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (appropriate. Such items include reversing the ef) Tj ET Q q 0 0 0 rg BT 243.14 382.25 Td (fects of straight-line rent revenue recognition, fair value adjustments to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (derivative instruments that do not qualify for hedge accounting treatment and certain other items as described below) Tj ET Q q 0 0 0 rg BT 513.70 370.25 Td (. Some of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (these adjustments are necessary to address changes in the accounting and reporting rules under GAAP) Tj ET Q q 0 0 0 rg BT 457.89 358.25 Td ( such as the accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (for acquisition-related expenses from a capitalization/depreciation model to an expensed-as-incurred model that were put into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 334.25 Td (fect in 2009 and other changes to GAAP) Tj ET Q q 0 0 0 rg BT 219.18 334.25 Td ( rules for real estate subsequent to the establishment of NAREIT) Tj ET Q q 0 0 0 rg BT 480.22 334.25 Td (s definition of FFO. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (These changes in the accounting and reporting rules under GAAP) Tj ET Q q 0 0 0 rg BT 312.11 322.25 Td ( af) Tj ET Q q 0 0 0 rg BT 322.20 322.25 Td (fected all industries, and as a result of these changes, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (acquisition fees and expenses are typically accounted for as operating expenses under GAAP) Tj ET Q q 0 0 0 rg BT 420.49 310.25 Td (. Management believes these fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (and expenses do not af) Tj ET Q q 0 0 0 rg BT 140.40 298.25 Td (fect our overall long-term operating performance. ) Tj ET Q q 0 0 0 rg BT 344.02 298.25 Td (These changes also have prompted a significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (increase in the magnitude of non-cash and non-operating items included in FFO, as defined. Such items include amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (of out-of-market lease intangible assets and liabilities and certain tenant incentives.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 250.25 Td (Other adjustments included in MFFO are necessary to address issues that are common to publicly registered, non-listed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (REIT) Tj ET Q q 0 0 0 rg BT 71.02 238.25 Td (s. Publicly registered, non-listed REIT) Tj ET Q q 0 0 0 rg BT 226.68 238.25 Td (s typically have a significant amount of acquisition activity and are substantially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (more dynamic during their initial years of investment and operations. ) Tj ET Q q 0 0 0 rg BT 331.47 226.25 Td (While other start-up entities may also experience ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (significant acquisition activity during their initial years, we believe that non-listed REIT) Tj ET Q q 0 0 0 rg BT 401.49 214.25 Td (s like us are unique in that they have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (limited life with tar) Tj ET Q q 0 0 0 rg BT 126.80 202.25 Td (geted exit strategies within a relatively limited time frame after the acquisition activity ceases. ) Tj ET Q q 0 0 0 rg BT 508.15 202.25 Td (W) Tj ET Q q 0 0 0 rg BT 516.79 202.25 Td (e will use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (the proceeds raised in our of) Tj ET Q q 0 0 0 rg BT 162.89 190.25 Td (ferings to make real estate investments, and intend to begin the process of considering our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (alternatives for the execution of a Liquidity Event \(i.e., a sale of our assets, our sale or mer) Tj ET Q q 0 0 0 rg BT 412.25 178.25 Td (ger) Tj ET Q q 0 0 0 rg BT 424.62 178.25 Td (, a listing of our shares on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (national securities exchange, or another similar transaction\) five to eight years following the end of the Of) Tj ET Q q 0 0 0 rg BT 473.90 166.25 Td (fering. ) Tj ET Q q 0 0 0 rg BT 505.10 166.25 Td (Thus, as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (limited life REIT) Tj ET Q q 0 0 0 rg BT 118.19 154.25 Td ( we will not continuously purchase assets and will have a limited life.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 130.25 Td (The purchase of properties, and the corresponding expenses associated with that process, including acquisition fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (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 49.50 106.25 Td (distributions to our stockholders. MFFO excludes acquisition fees payable to our ) Tj ET Q q 0 0 0 rg BT 377.51 106.25 Td (Advisor and acquisition expenses. Under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.25 Td (GAAP) Tj ET Q q 0 0 0 rg BT 75.62 94.25 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 94.25 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 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 82.25 Td (All paid and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 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 58.25 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 58.25 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 46.25 Td (for future distributions, and future cash flows, unless earnings from operations or net sales proceeds from the disposition of ) 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 49.50 742.10 Td (other properties are generated to cover the purchase price of the property) Tj ET Q q 0 0 0 rg BT 340.10 742.10 Td (, the related acquisition fees and expenses and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (costs related to such property) Tj ET Q q 0 0 0 rg BT 166.04 730.10 Td (. In addition, if we acquire a property after all of) Tj ET Q q 0 0 0 rg BT 361.61 730.10 Td (fering proceeds from the Of) Tj ET Q q 0 0 0 rg BT 473.05 730.10 Td (fering have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (invested, there will not be any of) Tj ET Q q 0 0 0 rg BT 180.67 718.10 Td (fering proceeds to pay the corresponding acquisition-related costs. ) Tj ET Q q 0 0 0 rg BT 450.59 718.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 499.92 718.10 Td (, unless our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (Advisor determines to waive the payment of any then-outstanding acquisition-related costs otherwise payable to our ) Tj ET Q q 0 0 0 rg BT 516.32 706.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 548.14 706.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (such costs will be paid from additional debt, operational earnings or cash flow) Tj ET Q q 0 0 0 rg BT 361.82 694.10 Td (, net proceeds from the sale of properties, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (ancillary cash flows. ) Tj ET Q q 0 0 0 rg BT 136.79 682.10 Td (Therefore, MFFO may not be an accurate indicator of our operating performance, especially during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (periods in which properties are being acquired. Since MFFO excludes acquisition fees and expenses, MFFO would only be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (comparable to the operations of non-listed REIT) Tj ET Q q 0 0 0 rg BT 242.63 658.10 Td (s that have completed their acquisition activity and have other similar operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (characteristics.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 622.10 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 49.50 610.10 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 49.50 598.10 Td (sustainability thereof. Further) Tj ET Q q 0 0 0 rg BT 170.18 598.10 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 49.50 586.10 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 49.50 574.10 Td (expenses, as described herein.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 550.10 Td (MFFO has limitations as a performance measure in an of) Tj ET Q q 0 0 0 rg BT 295.32 550.10 Td (fering such as ours where the price of a share of common stock is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (a stated value and there is no net asset value determination during the of) Tj ET Q q 0 0 0 rg BT 337.83 538.10 Td (fering stage and for a period thereafter) Tj ET Q q 0 0 0 rg BT 491.09 538.10 Td (. MFFO is useful ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (in assisting management and investors in assessing the sustainability \(that is, the capacity to continue to be maintained\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (operating performance in future operating periods, and in particular) Tj ET Q q 0 0 0 rg BT 319.27 514.10 Td (, after the of) Tj ET Q q 0 0 0 rg BT 367.95 514.10 Td (fering and acquisition stages are complete and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (net asset value is disclosed. MFFO is not a useful measure in evaluating net asset value because impairments are taken into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (account in determining net asset value but not in determining MFFO.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 466.10 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 451.48 466.10 Td ( methodology in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 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 49.50 442.10 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 49.50 430.10 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 454.00 430.10 Td (, but rather should be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (reviewed in conjunction with these and other GAAP) Tj ET Q q 0 0 0 rg BT 258.80 418.10 Td ( measurements. Further) Tj ET Q q 0 0 0 rg BT 355.04 418.10 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 49.50 406.10 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 49.50 394.10 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 58.50 370.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 370.10 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 76.50 358.10 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 58.50 334.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 334.10 Td (MFFO excludes acquisition fees payable to our ) Tj ET Q q 0 0 0 rg BT 267.85 334.10 Td (Advisor and acquisition expenses. ) Tj ET Q q 0 0 0 rg BT 408.94 334.10 Td (Although these amounts reduce net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 322.10 Td (income, we generally fund such costs with proceeds from our of) Tj ET Q q 0 0 0 rg BT 333.19 322.10 Td (fering and/or acquisition-related indebtedness and do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 310.10 Td (consider these fees and expenses in the evaluation of our operating performance and determining MFFO.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 286.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 286.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 286.10 Td (e use an interest rate cap as an economic hedge against the variability of interest rates on one of our variable interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 274.10 Td (rate borrowings. ) Tj ET Q q 0 0 0 rg BT 146.49 274.10 Td (Although we expect to hold this instrument to maturity) Tj ET Q q 0 0 0 rg BT 365.81 274.10 Td (, if we were to settle this instrument currently) Tj ET Q q 0 0 0 rg BT 547.05 274.10 Td (, it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 262.10 Td (would have an impact on our operating performance. ) Tj ET Q q 0 0 0 rg BT 293.09 262.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 342.99 262.10 Td (, this derivative instrument is measured at fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 250.10 Td (on a quarterly basis in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 261.17 250.10 Td (. MFFO excludes gains \(losses\) related to changes in the estimated value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 238.10 Td (of our derivative instrument because such adjustments may not be reflective of ongoing operations and may reflect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 226.10 Td (unrealized impacts on our operating performance.) 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 utilize the definition of FFO as set forth by NAREIT) Tj ET Q q 0 0 0 rg BT 302.70 202.10 Td ( and the definition of MFFO as set forth by the IP) Tj ET Q q 0 0 0 rg BT 500.37 202.10 Td (A. Our FFO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 190.10 Td (and MFFO as presented may not be comparable to amounts calculated by other REIT) Tj ET Q q 0 0 0 rg BT 417.65 190.10 Td (s, if they use dif) Tj ET Q q 0 0 0 rg BT 481.63 190.10 Td (ferent approaches.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 166.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 166.10 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 76.50 154.10 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 497.25 154.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 546.59 154.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 142.10 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 67.50 118.10 Td (Neither the SEC, NAREIT) Tj ET Q q 0 0 0 rg BT 174.52 118.10 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 49.50 106.10 Td (use to calculate FFO or MFFO. In the future, the SEC, NAREIT) Tj ET Q q 0 0 0 rg BT 309.01 106.10 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 94.10 Td (adjustments across the non-listed REIT) Tj ET Q q 0 0 0 rg BT 206.51 94.10 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 82.10 Td (MFFO.) 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 67.50 742.10 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, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.10 730.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.54 730.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.54 730.10 Td ( and the period from inception ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.11 718.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.69 718.10 Td (. ) Tj ET Q q 0 0 0 rg BT 168.64 718.10 Td (As we are in the capital raising and acquisition phase of our operations, FFO and MFFO are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (useful in comparing operations for the periods presented below) Tj ET Q q 0 0 0 rg BT 301.56 706.10 Td (. ) Tj ET Q q 0 0 0 rg BT 308.88 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 317.51 706.10 Td (e expect revenues and expenses to increase in future periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (as we raise additional of) Tj ET Q q 0 0 0 rg BT 146.51 694.10 Td (fering proceeds and use them to make additional real estate investments.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 641.60 274.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 641.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 641.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 641.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 641.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 641.60 114.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 613.60 274.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 613.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 613.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 613.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 613.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 613.60 114.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 585.60 274.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 585.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 585.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 585.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 585.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 585.60 114.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 557.60 274.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 557.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 557.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 557.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 557.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 557.60 114.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 529.60 274.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 529.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 529.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 529.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 529.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 529.60 114.00 -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 324 655.6 m 381 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 655.6 m 385 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 655.6 m 444 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 641.6 m 381 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 641.6 m 444 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 641.6 m 562 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 599.6 m 381 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 599.6 m 444 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 599.6 m 562 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 515.6 m 381 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 515.6 m 444 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 515.6 m 562 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 502.6 m 381 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 500.6 m 381 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 502.6 m 444 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 500.6 m 444 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 502.6 m 562 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 500.6 m 562 500.6 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 660.06 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 332.80 660.05 Td (Years ended December 31,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 454.95 663.00 Td (Period from July 31, 2013) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 452.95 654.00 Td (\(date of inception\) through) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 468.20 645.00 Td (December 31, 2015) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 343.00 646.05 Td (2015) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 405.00 646.05 Td (2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 632.06 Td (Net income \(loss\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 326.50 632.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.50 632.06 Td (\(5,637,566) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.50 632.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 387.50 632.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.50 632.06 Td (\(1,327,663) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.50 632.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.50 632.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.50 632.06 Td (\(6,965,236) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.50 632.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 70.50 618.06 Td (Depreciation and amortization ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 184.45 622.14 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.50 618.06 Td (4,206,600) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.75 618.06 Td (49,288) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.50 618.06 Td (4,255,888) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 70.50 604.06 Td () Tj ET Q q 0 0 0 rg BT 72.25 604.06 Td (Adjustments for noncontrolling interests) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 217.98 608.14 Td ( \(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 352.75 604.06 Td (36,104) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.25 604.06 Td (184,584) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.25 604.06 Td (220,688) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 590.06 Td (Funds From Operations attributable to common stockholders) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 338.50 590.06 Td (\(1,394,862) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.50 590.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.50 590.06 Td (\(1,093,791) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.50 590.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.50 590.06 Td (\(2,488,660) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.50 590.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 70.50 576.06 Td (Loss \(gain\) on derivative instruments) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 204.97 580.14 Td ( \(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 352.75 576.06 Td (40,535) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.50 576.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.75 576.06 Td (40,535) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 70.50 562.06 Td (Loss \(gain\) on foreign currency) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 184.46 566.14 Td (\(4\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 352.75 562.06 Td (10,400) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.50 562.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.75 562.06 Td (10,400) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 70.50 548.06 Td (Other components of revenues and expenses) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 230.70 552.14 Td ( \(5\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.25 548.06 Td (\(938,330) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.50 548.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.25 548.06 Td (\(5,895) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.50 548.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 526.25 548.06 Td (\(944,230) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.50 548.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 70.50 534.06 Td (Acquisition fees and expenses ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 181.47 538.14 Td (\(6\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.50 534.06 Td (5,246,064) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.25 534.06 Td (698,829) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.50 534.06 Td (5,944,892) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 70.50 520.06 Td (Adjustments for noncontrolling interests ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 218.48 524.14 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.75 520.06 Td (\(39,656) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.50 520.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.75 520.06 Td (\(33,122) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.50 520.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.75 520.06 Td (\(72,773) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.50 520.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 506.06 Td (Modified Funds From Operations attributable to common stockholders) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 326.50 506.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 341.50 506.06 Td (2,924,151) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 387.50 506.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.25 506.06 Td (\(433,979) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.50 506.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.50 506.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.50 506.06 Td (2,490,164) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (Notes to the table:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 454.10 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 67.50 442.10 Td (accordance with GAAP) Tj ET Q q 0 0 0 rg BT 162.09 442.10 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 67.50 430.10 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 67.50 418.10 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 67.50 406.10 Td (determination of FFO.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 382.10 Td (Includes income attributable to noncontrolling interests and all adjustments to eliminate the noncontrolling interests) Tj ET Q q 0 0 0 rg BT 533.04 382.10 Td ( share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 370.10 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 49.50 346.10 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 346.10 Td (Represents components of net income \(loss\) related to the estimated changes in the values of our interest rate contract ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 334.10 Td (derivative. ) Tj ET Q q 0 0 0 rg BT 114.80 334.10 Td (W) Tj ET Q q 0 0 0 rg BT 123.44 334.10 Td (e have excluded this change in value from our evaluation of our operating performance and MFFO because ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 322.10 Td (such adjustments may not be reflective of our ongoing performance and may reflect unrealized impacts on our operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 310.10 Td (performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 286.10 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 67.50 274.10 Td (than our functional currencies. ) Tj ET Q q 0 0 0 rg BT 194.49 274.10 Td (W) Tj ET Q q 0 0 0 rg BT 203.13 274.10 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 67.50 262.10 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 67.50 250.10 Td (on our operating performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (\(5\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 226.10 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 67.50 214.10 Td (performance and determining MFFO for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.87 214.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.45 214.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.89 214.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.89 214.10 Td ( and the period from inception ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 202.10 Td (through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.11 202.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.69 202.10 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 144.60 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.00 144.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.00 144.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 144.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 144.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 144.60 125.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 114.60 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.00 114.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.00 114.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 114.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 114.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 114.60 125.00 -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 300 158.60000000000002 m 365 158.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 158.60000000000002 m 369 158.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369 158.60000000000002 m 434 158.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300 144.60000000000002 m 365 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369 144.60000000000002 m 434 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 144.60000000000002 m 563 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300 99.60000000000002 m 365 99.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369 99.60000000000002 m 434 99.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 99.60000000000002 m 563 99.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300 85.60000000000002 m 365 85.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300 83.60000000000002 m 365 83.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369 85.60000000000002 m 434 85.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369 83.60000000000002 m 434 83.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 85.60000000000002 m 563 85.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 83.60000000000002 m 563 83.60000000000002 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 163.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.20 163.28 Td (Years ended December 31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.95 169.28 Td (Period from July 31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.70 159.28 Td (\(date of inception\) through) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 459.65 149.28 Td (December 31, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 322.00 149.28 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 391.00 149.28 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 135.17 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 169.42 139.70 Td (\(a\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.50 134.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.30 134.32 Td (\(626,984) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 134.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 134.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.30 134.32 Td (\(5,895) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 134.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.50 134.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 134.32 Td (\(632,879) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 134.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 120.17 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 184.68 124.70 Td (\(b\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.15 119.27 Td (837) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.15 119.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 119.27 Td (837) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 105.17 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 201.06 109.70 Td ( \(b\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.30 104.32 Td (\(312,183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 104.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.15 104.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 104.32 Td (\(312,188) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 104.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 89.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.50 89.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.30 89.32 Td (\(938,330) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 89.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 89.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.30 89.32 Td (\(5,895) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 89.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.50 89.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 89.32 Td (\(944,230) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 89.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 117 0 obj <>] /Rotate 0 /Contents 118 0 R>> 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 /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 732.85 Td (\(a\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 732.85 Td (Represents the adjustments to rental revenue as required by GAAP) Tj ET Q q 0 0 0 rg BT 343.56 732.85 Td ( to recognize minimum lease payments on a straight-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 720.85 Td (line basis over the respective lease terms. ) Tj ET Q q 0 0 0 rg BT 246.53 720.85 Td (W) Tj ET Q q 0 0 0 rg BT 255.17 720.85 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 76.50 708.85 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 76.50 696.85 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 58.50 672.85 Td (\(b\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 672.85 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 49.50 648.85 Td (\(6\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 648.85 Td (Represents acquisition expenses and acquisition fees paid to our ) Tj ET Q q 0 0 0 rg BT 326.05 648.85 Td (Advisor that are expensed in our consolidated statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 636.85 Td (of operations. ) Tj ET Q q 0 0 0 rg BT 127.30 636.85 Td (W) Tj ET Q q 0 0 0 rg BT 135.94 636.85 Td (e fund such costs with proceeds from our of) Tj ET Q q 0 0 0 rg BT 311.27 636.85 Td (fering and/or acquisition-related indebtedness, and therefore ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 624.85 Td (do not consider these expenses in evaluating our operating performance and determining MFFO.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 600.85 Td (As noted previously) Tj ET Q q 0 0 0 rg BT 147.40 600.85 Td (, our cash flows from operations have been and may continue to be insuf) Tj ET Q q 0 0 0 rg BT 437.69 600.85 Td (ficient to fund distributions to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 588.85 Td (stockholders. ) Tj ET Q q 0 0 0 rg BT 107.37 588.85 Td (W) Tj ET Q q 0 0 0 rg BT 116.00 588.85 Td (e may continue to choose to use proceeds from our debt financings, proceeds from the Of) Tj ET Q q 0 0 0 rg BT 473.49 588.85 Td (fering, cash advances ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 576.85 Td (from our ) Tj ET Q q 0 0 0 rg BT 86.72 576.85 Td (Advisor) Tj ET Q q 0 0 0 rg BT 118.54 576.85 Td (, cash resulting from a waiver or deferral of fees and/or proceeds from the sale of assets to fund distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 564.85 Td (to our stockholders. For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.85 564.85 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.43 564.85 Td (, we funded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.86 564.85 Td (77%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.19 564.85 Td ( of total distributions with cash flows from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 552.85 Td (operating activities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.30 552.85 Td (23%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.63 552.85 Td ( were funded with cash flows from financing activities, which includes of) Tj ET Q q 0 0 0 rg BT 457.81 552.85 Td (fering proceeds. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 540.85 Td (year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.58 540.85 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.17 540.85 Td (, we funded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.60 540.85 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.93 540.85 Td ( of total distributions with cash flows from financing activities, which includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 528.85 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 528.85 Td (fering proceeds. ) Tj ET Q q 0 0 0 rg BT 126.51 528.85 Td (Additionally) Tj ET Q q 0 0 0 rg BT 176.41 528.85 Td (, our ) Tj ET Q q 0 0 0 rg BT 196.69 528.85 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 467.41 528.85 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.41 528.85 Td ( and the quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.85 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 516.85 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.46 516.85 Td (, to the extent that our MFFO, for a particular quarter) Tj ET Q q 0 0 0 rg BT 366.78 516.85 Td (, is less than our distributions declared for such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.85 Td (quarter) Tj ET Q q 0 0 0 rg BT 77.26 504.85 Td (. Our ) Tj ET Q q 0 0 0 rg BT 102.26 504.85 Td (Advisor also agreed to waive an additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.82 504.85 Td ($62,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.32 504.85 Td ( in asset management fees so that our MFFO for the year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 492.85 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 492.85 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.46 492.85 Td ( would equal our distributions declared for such year) Tj ET Q q 0 0 0 rg BT 364.96 492.85 Td (. ) Tj ET Q q 0 0 0 rg BT 371.91 492.85 Td (As a result of these waivers, our ) Tj ET Q q 0 0 0 rg BT 502.43 492.85 Td (Advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 480.85 Td (waived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.88 480.85 Td ($583,433) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.38 480.85 Td ( of the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.70 480.85 Td ($888,109) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.20 480.85 Td ( in 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 452.44 480.85 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.02 480.85 Td ( and all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 468.85 Td (of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.05 468.85 Td ($16,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.55 468.85 Td ( of 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 356.34 468.85 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.92 468.85 Td (. ) Tj ET Q q 0 0 0 rg BT 442.24 468.85 Td (W) Tj ET Q q 0 0 0 rg BT 450.88 468.85 Td (e have not placed a cap on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 456.85 Td (the amount of our distributions that may be paid from sources other than cash flows from operations, including proceeds from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 444.85 Td (our debt financings, proceeds from the Of) Tj ET Q q 0 0 0 rg BT 216.77 444.85 Td (fering, cash advances by our ) Tj ET Q q 0 0 0 rg BT 332.83 444.85 Td (Advisor and cash resulting from a waiver or deferral of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 432.85 Td (fees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 408.85 Td (From inception through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.99 408.85 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.57 408.85 Td (, we declared cash distributions \(including those reinvested in shares pursuant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.85 Td (to our distribution reinvestment plan\) to our stockholders totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.63 396.85 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.52 396.85 Td (, compared to our total aggregate FFO loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 384.85 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 384.85 Td (. During our of) Tj ET Q q 0 0 0 rg BT 160.70 384.85 Td (fering and investment stages, we incur acquisition fees and expenses in connection with our real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 372.85 Td (estate investments, which are recorded as reductions to net income \(loss\) and FFO. From inception through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.57 372.85 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 360.85 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 360.85 Td (, we incurred acquisition fees and expenses totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.04 360.85 Td ($5.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.94 360.85 Td (. For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.52 360.85 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.10 360.85 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.54 360.85 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.54 360.85 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 348.85 Td (declared cash distributions \(including those reinvested in shares pursuant to our distribution reinvestment plan\) to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 336.85 Td (stockholders totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.60 336.85 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.49 336.85 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.93 336.85 Td ($42,218) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.43 336.85 Td (, respectively) Tj ET Q q 0 0 0 rg BT 289.09 336.85 Td (, compared to our total aggregate FFO loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.49 336.85 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.39 336.85 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.82 336.85 Td ($1.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.85 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 324.85 Td (, respectively) Tj ET Q q 0 0 0 rg BT 131.05 324.85 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 300.85 Td (Related Party ) Tj ET Q q 0 0 0 rg BT 111.46 300.85 Td (T) Tj ET Q q 0 0 0 rg BT 117.39 300.85 Td (ransactions and ) Tj ET Q q 0 0 0 rg BT 186.86 300.85 Td (Agr) Tj ET Q q 0 0 0 rg BT 203.33 300.85 Td (eements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 276.85 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 276.85 Td (e have entered into agreements with our ) Tj ET Q q 0 0 0 rg BT 238.52 276.85 Td (Advisor) Tj ET Q q 0 0 0 rg BT 270.34 276.85 Td (, Dealer Manager and Hines and its af) Tj ET Q q 0 0 0 rg BT 421.77 276.85 Td (filiates, whereby we pay certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 264.85 Td (fees and reimbursements to these entities during the various phases of our or) Tj ET Q q 0 0 0 rg BT 355.85 264.85 Td (ganization and operation. During the or) Tj ET Q q 0 0 0 rg BT 515.90 264.85 Td (ganization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 252.85 Td (and of) Tj ET Q q 0 0 0 rg BT 75.09 252.85 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 50.00 240.85 Td (and stockholder servicing fees, and payments to our ) Tj ET Q q 0 0 0 rg BT 259.67 240.85 Td (Advisor for reimbursement of issuer costs. During the acquisition and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 228.85 Td (operational stages, these include payments for certain services related to acquisitions, financing and management of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 216.85 Td (investments and operations provided to us by our ) Tj ET Q q 0 0 0 rg BT 248.86 216.85 Td (Advisor and Hines and its af) Tj ET Q q 0 0 0 rg BT 362.83 216.85 Td (filiates pursuant to various agreements we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 204.85 Td (entered into with these entities. See ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 196.6259765625 203.51699218750002 m 223.564453125 203.51699218750002 l s q 0 0 1 rg BT 196.63 204.85 Td (Note 8) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 223.56 204.85 Td ( Related Party ) Tj ET Q q 0 0 0 rg BT 295.03 204.85 Td (T) Tj ET Q q 0 0 0 rg BT 300.79 204.85 Td (ransactions in the Notes to the Consolidated Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 192.85 Td (Statements contained elsewhere in this ) Tj ET Q q 0 0 0 rg BT 206.90 192.85 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 50.00 180.85 Td (transactions and agreements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 156.85 Td (Off-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 129.43 156.85 Td (Arrangements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 132.85 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 132.85 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 132.85 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.47 132.85 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.47 132.85 Td (, we had no of) Tj ET Q q 0 0 0 rg BT 267.21 132.85 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 50.00 120.85 Td (current or future ef) Tj ET Q q 0 0 0 rg BT 125.61 120.85 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 50.00 108.85 Td (liquidity) Tj ET Q q 0 0 0 rg BT 83.24 108.85 Td (, capital expenditures or capital resources.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 84.85 Td (Contractual Obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 60.85 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 60.85 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.64 60.85 Td (. Specifically included are our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 48.85 Td (obligations under long-term debt agreements:) Tj ET Q endstream endobj 119 0 obj <>] /Rotate 0 /Contents 120 0 R>> 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 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 692.60 163.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.50 692.60 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 692.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.50 692.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.50 692.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.50 692.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 692.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 692.60 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 692.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 692.60 64.00 -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 213.5 716.6 m 284.5 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 716.6 m 288.5 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 716.6 m 349.5 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 716.6 m 353.5 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 716.6 m 414.5 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 716.6 m 418.5 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 716.6 m 494.5 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 716.6 m 498.5 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 716.6 m 562.5 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213.5 692.6 m 284.5 692.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 692.6 m 349.5 692.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 692.6 m 414.5 692.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 692.6 m 494.5 692.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 692.6 m 562.5 692.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 721.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 335.65 721.28 Td (Payments due by Period) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 697.28 Td (Contractual Obligations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 222.70 707.28 Td (Less Than 1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 238.55 697.28 Td (Year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.80 697.28 Td (1-3 Years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.80 697.28 Td (3-5 Years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.10 707.28 Td (More Than 5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.05 697.28 Td (Years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 519.05 697.28 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 682.27 Td (Note payable ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 108.53 686.80 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.00 682.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.15 682.27 Td (789,136) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.00 682.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.60 682.27 Td (1,569,577) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 682.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.60 682.27 Td (1,571,751) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 682.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.65 682.27 Td (61,572,869) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.00 682.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.60 682.27 Td (65,503,333) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.90 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 658.90 Td (Includes principal and interest payments outstanding as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.94 658.90 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.53 658.90 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 634.90 Td (Recent Developments and Subsequent Events) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 610.90 Td (Domain ) Tj ET Q q 0 0 0 rg BT 84.04 610.90 Td (Apartments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 586.90 Td (In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.33 586.90 Td (January 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.93 586.90 Td (, we acquired the Domain ) Tj ET Q q 0 0 0 rg BT 236.89 586.90 Td (Apartments, a multi-family community located in Las ) Tj ET Q q 0 0 0 rg BT 455.00 586.90 Td (V) Tj ET Q q 0 0 0 rg BT 461.11 586.90 Td (egas, Nevada. ) Tj ET Q q 0 0 0 rg BT 521.73 586.90 Td (The net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.90 Td (purchase price was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.07 574.90 Td ($58.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.97 574.90 Td (, exclusive of transaction costs and working capital reserves. ) Tj ET Q q 0 0 0 rg BT 428.93 574.90 Td (The Domain ) Tj ET Q q 0 0 0 rg BT 481.14 574.90 Td (Apartments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.90 Td (community was constructed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.48 562.90 Td (January 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.07 562.90 Td (, and consists of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.01 562.90 Td (308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.01 562.90 Td ( units that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.88 562.90 Td (95%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.21 562.90 Td ( leased as of the date of acquisition. ) Tj ET Q q 0 0 0 rg BT 539.39 562.90 Td (As a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.90 Td (result of the acquisition of the Domain ) Tj ET Q q 0 0 0 rg BT 205.86 550.90 Td (Apartments, we incurred approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.75 550.90 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.64 550.90 Td ( in acquisition fees payable to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.90 Td (Advisor) Tj ET Q q 0 0 0 rg BT 81.17 538.90 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 514.90 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 514.90 Td (e have not concluded our accounting for this recent acquisition, but we expect that the purchase price will primarily be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.90 Td (allocated to building, land, equipment, furniture and fixtures, and in-place lease assets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 478.90 Td (In connection with the acquisition of the Domain ) Tj ET Q q 0 0 0 rg BT 265.79 478.90 Td (Apartments, we entered into a loan agreement with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.48 478.90 Td (W) Tj ET Q q 0 0 0 rg BT 481.12 478.90 Td (ells Far) Tj ET Q q 0 0 0 rg BT 510.65 478.90 Td (go Bank, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.90 Td (National ) Tj ET Q q 0 0 0 rg BT 85.88 466.90 Td (Association) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.10 466.90 Td ( with the principal sum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.64 466.90 Td ($34.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.53 466.90 Td ( to fund the acquisition of the Domain ) Tj ET Q q 0 0 0 rg BT 446.95 466.90 Td (Apartments. Interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.90 Td (accrued on the loan is due and payable on the first business day of each month commencing in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.94 454.90 Td (February 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.54 454.90 Td (. ) Tj ET Q q 0 0 0 rg BT 495.86 454.90 Td (The loan has a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.90 Td (floating interest rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.35 442.90 Td (Libor + 1.60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.04 442.90 Td (. Repayment of principal is due upon the maturity of the loan on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.92 442.90 Td (January29, 2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.52 442.90 Td (. ) Tj ET Q q 0 0 0 rg BT 539.84 442.90 Td (W) Tj ET Q q 0 0 0 rg BT 548.48 442.90 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.90 Td (have the option to extend the term for an additional year subject to the satisfaction of certain conditions. ) Tj ET Q q 0 0 0 rg BT 470.30 430.90 Td (The loan may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.90 Td (prepaid at any time on or after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.06 418.90 Td (July29, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.23 418.90 Td (, subject to certain conditions, including but not limited to providing 30 days) Tj ET Q q 0 0 0 rg BT 536.44 418.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.90 Td (advance notice to ) Tj ET Q q 0 0 0 rg BT 121.79 406.90 Td (W) Tj ET Q q 0 0 0 rg BT 130.42 406.90 Td (ells Far) Tj ET Q q 0 0 0 rg BT 159.96 406.90 Td (go. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 382.90 Td (Item7A.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 87.21 382.90 Td (Quantitative and Qualitative Disclosures ) Tj ET Q q 0 0 0 rg BT 261.85 382.90 Td (About Market Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 358.90 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 50.00 346.90 Td (equity prices and other market changes that af) Tj ET Q q 0 0 0 rg BT 233.91 346.90 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 50.00 334.90 Td (interest rate risk, currency risk and real estate valuation risk are the primary market risks to which we are exposed. ) Tj ET Q q 0 0 0 rg BT 512.33 334.90 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.90 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 322.90 Td (, we were exposed to the market risks listed below) Tj ET Q q 0 0 0 rg BT 329.55 322.90 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 298.90 Td (Inter) Tj ET Q q 0 0 0 rg BT 87.07 298.90 Td (est ) Tj ET Q q 0 0 0 rg BT 100.68 298.90 Td (Rate ) Tj ET Q q 0 0 0 rg BT 121.50 298.90 Td (Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 274.90 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 274.90 Td (e are exposed to the ef) Tj ET Q q 0 0 0 rg BT 166.13 274.90 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 50.00 262.90 Td (expansion of our real estate investment portfolio and operations. ) Tj ET Q q 0 0 0 rg BT 311.88 262.90 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.32 262.90 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.90 262.90 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 262.90 Td ($60.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.89 262.90 Td ( of variable-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.90 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 421.26 250.90 Td ($602,01) Tj ET Q q 0 0 0 rg BT 453.39 250.90 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.39 250.90 Td ( in interest expense. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.90 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.90 238.90 Td (, in March 2015, we entered into an interest rate cap to limit our exposure to rising interest rates related to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.90 Td (mortgage loan secured by Bishop) Tj ET Q q 0 0 0 rg BT 186.64 226.90 Td (s Square. See ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 245.234375 225.56699218749998 m 272.1728515625 225.56699218749998 l s q 0 0 1 rg BT 245.23 226.90 Td (Note 5) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 272.17 226.90 Td ( Debt Financing in the Notes to the Consolidated Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.90 Td (Statements for more information concerning our outstanding debt.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 190.90 Td (For) Tj ET Q q 0 0 0 rg BT 82.63 190.90 Td (eign ) Tj ET Q q 0 0 0 rg BT 102.35 190.90 Td (Curr) Tj ET Q q 0 0 0 rg BT 121.43 190.90 Td (ency ) Tj ET Q q 0 0 0 rg BT 142.24 190.90 Td (Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 166.90 Td (Our investment in Bishop) Tj ET Q q 0 0 0 rg BT 173.83 166.90 Td (s Square is subject to the ef) Tj ET Q q 0 0 0 rg BT 283.07 166.90 Td (fects of exchange rate movements between the Euro and the U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.90 Td (dollar) Tj ET Q q 0 0 0 rg BT 72.92 154.90 Td (, which may af) Tj ET Q q 0 0 0 rg BT 132.17 154.90 Td (fect future costs and cash flows as well as amounts translated into U.S. dollars for inclusion in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.90 Td (condensed consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 234.76 142.90 Td (W) Tj ET Q q 0 0 0 rg BT 243.40 142.90 Td (e have entered into a mortgage loan denominated in Euros for this investment, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.90 Td (which provides a natural hedge with regard to changes in exchange rates between the Euro and U.S. dollar and reduces our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.90 Td (exposure to exchange rate dif) Tj ET Q q 0 0 0 rg BT 167.54 118.90 Td (ferences. ) Tj ET Q q 0 0 0 rg BT 207.80 118.90 Td (Additionally) Tj ET Q q 0 0 0 rg BT 257.70 118.90 Td (, we are typically a net receiver of Euros, and, as a result, our foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.90 Td (operations benefit from a weaker U.S. dollar and are adversely af) Tj ET Q q 0 0 0 rg BT 310.82 106.90 Td (fected by a stronger U.S. dollar) Tj ET Q q 0 0 0 rg BT 435.51 106.90 Td (. Based upon our analysis, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.90 Td (10% immediate, unfavorable change in the exchange rate between the Euro and U.S. dollar would have decreased the net book ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.90 Td (value of our investment in Bishop) Tj ET Q q 0 0 0 rg BT 188.59 82.90 Td (s Square by approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.01 82.90 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.90 82.90 Td ( and would have reduced the year) Tj ET Q q 0 0 0 rg BT 481.09 82.90 Td (-to-date net income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.90 Td (\(loss\) of Bishop) Tj ET Q q 0 0 0 rg BT 116.67 70.90 Td (s Square by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.83 70.90 Td ($167,157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.33 70.90 Td (.) 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 /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 93.83 742.10 Td (Risks) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (As described elsewhere in this ) Tj ET Q q 0 0 0 rg BT 191.58 718.10 Td (Annual Report on Form 10-K, our ) Tj ET Q q 0 0 0 rg BT 333.23 718.10 Td (Advisor has agreed to waive the asset management fee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (otherwise payable to it pursuant to our ) Tj ET Q q 0 0 0 rg BT 205.80 706.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 244.97 706.10 Td (Agreement for the fourth quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.36 706.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.36 706.10 Td (, each of the quarters in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.70 706.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.70 706.10 Td (, and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (first two quarters of 2016, to the extent that our MFFO for each respective quarter) Tj ET Q q 0 0 0 rg BT 377.56 694.10 Td (, as disclosed in our ) Tj ET Q q 0 0 0 rg BT 458.66 694.10 Td (Annual Report on Form ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (10-K or Quarterly Report on Form 10-Q, as applicable, amounts 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 50.00 670.10 Td (such quarter) Tj ET Q q 0 0 0 rg BT 98.59 670.10 Td (. Our ) Tj ET Q q 0 0 0 rg BT 123.59 670.10 Td (Advisor also agreed to waive an additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.15 670.10 Td ($62,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.65 670.10 Td ( in asset management fees so that our MFFO for the year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.38 658.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.96 658.10 Td ( would equal our distributions declared for such year) Tj ET Q q 0 0 0 rg BT 365.46 658.10 Td (. ) Tj ET Q q 0 0 0 rg BT 372.78 658.10 Td (There can be no assurances that our ) Tj ET Q q 0 0 0 rg BT 517.44 658.10 Td (Advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (will continue this waiver subsequent to the second quarter of 2016, and if not, cash available to pay distributions in future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (periods may be reduced.) 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 /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 Board of Directors and Stockholders of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (Hines Global REIT) Tj ET Q q 0 0 0 rg BT 127.58 682.25 Td ( II, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (Houston, ) Tj ET Q q 0 0 0 rg BT 88.71 670.25 Td (T) Tj ET Q q 0 0 0 rg BT 94.12 670.25 Td (exas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 646.25 Td (e have audited the accompanying consolidated balance sheets of Hines Global REIT) Tj ET Q q 0 0 0 rg BT 413.84 646.25 Td ( II, Inc. and subsidiaries \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (Company\) as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.25 634.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.84 634.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.28 634.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.28 634.25 Td (, and the related consolidated statements of operations and comprehensive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (income \(loss\), equity \(deficit\), and cash flows for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.63 622.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.22 622.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.66 622.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.66 622.25 Td ( and for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (July31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.17 610.25 Td ( \(date of inception\) through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.64 610.25 Td (December31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.22 610.25 Td (. Our audits also included the financial statement schedule listed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (in the Index at Item 15. ) Tj ET Q q 0 0 0 rg BT 148.13 598.25 Td (These financial statements and financial statement schedule are the responsibility of the Company) Tj ET Q q 0 0 0 rg BT 543.00 598.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (management. Our responsibility is to express an opinion on the financial statements and financial statement schedule based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (our audits.) 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 conducted our audits in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 396.83 550.25 Td (Accounting Oversight Board \(United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (States\). ) Tj ET Q q 0 0 0 rg BT 84.54 538.25 Td (Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (statements are free of material misstatement. ) Tj ET Q q 0 0 0 rg BT 233.63 526.25 Td (The Company is not required to have, nor were we engaged to perform, an audit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (opinion on the ef) Tj ET Q q 0 0 0 rg BT 117.86 490.25 Td (fectiveness of the Company) Tj ET Q q 0 0 0 rg BT 232.00 490.25 Td (s internal control over financial reporting. ) Tj ET Q q 0 0 0 rg BT 403.61 490.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 452.94 490.25 Td (, we express no such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (opinion. ) Tj ET Q q 0 0 0 rg BT 87.50 478.25 Td (An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td (overall financial statement presentation. ) Tj ET Q q 0 0 0 rg BT 214.76 454.25 Td (W) Tj ET Q q 0 0 0 rg BT 223.39 454.25 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 68.00 430.25 Td (In our opinion, such consolidated financial statements present fairly) Tj ET Q q 0 0 0 rg BT 338.66 430.25 Td (, in all material respects, the financial position of Hines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (Global REIT) Tj ET Q q 0 0 0 rg BT 101.75 418.25 Td ( II, Inc. and subsidiaries as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.00 418.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.58 418.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.02 418.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.02 418.25 Td (, and the results of their operations and their cash flows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.85 406.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.44 406.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.88 406.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.88 406.25 Td ( and for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.18 406.25 Td (July31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.35 406.25 Td ( \(date of inception\) through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (December31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 394.25 Td (, in conformity with accounting principles generally accepted in the United States of ) Tj ET Q q 0 0 0 rg BT 467.93 394.25 Td (America. ) Tj ET Q q 0 0 0 rg BT 509.30 394.25 Td (Also, in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (opinion, such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (whole, presents fairly in all material respects the information set forth therein.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (/s/ Deloitte& ) Tj ET Q q 0 0 0 rg BT 106.76 346.25 Td (T) Tj ET Q q 0 0 0 rg BT 112.17 346.25 Td (ouche LLP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (Houston, ) Tj ET Q q 0 0 0 rg BT 88.71 322.25 Td (T) Tj ET Q q 0 0 0 rg BT 94.12 322.25 Td (exas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (March24, 2016) Tj ET Q BT /F1 10.00 Tf ET 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 /F2 10.00 Tf ET q 0 0 0 rg BT 236.60 742.25 Td (HINES GLOBAL) Tj ET Q q 0 0 0 rg BT 312.46 742.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 339.23 742.25 Td ( II, INC.) 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j 3 M 472.5 131.75 m 561.5 131.75 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 686.21 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 413.00 686.20 Td (2015) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 507.50 686.20 Td (2014) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 195.70 672.20 Td (ASSETS) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 422.00 672.20 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 516.50 672.20 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 658.21 Td (Investment property, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 658.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.50 658.21 Td (72,426,072) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.00 658.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.50 658.21 Td (21,355,421) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 644.21 Td (Cash and cash equivalents) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.50 644.21 Td (17,224,448) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.00 644.21 Td (2,726,742) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 630.21 Td (Restricted cash) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 630.21 Td (1,565,083) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 630.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 616.21 Td (Derivative instruments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.75 616.21 Td (6,344) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 616.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 602.21 Td (Tenant and other receivables) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 602.21 Td (3,890,367) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.25 602.21 Td (68,160) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 588.21 Td (Intangible lease assets, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.50 588.21 Td (52,152,477) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.00 588.21 Td (3,945,291) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 574.21 Td (Deferred leasing costs, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.25 574.21 Td (60,787) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 574.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 560.21 Td (Deferred financing costs, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.25 560.21 Td (17,342) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.75 560.21 Td (8,925) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 546.21 Td (Other assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 546.21 Td (1,713,329) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 528.75 546.21 Td (446,275) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 532.20 Td (Total assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 532.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 532.21 Td (149,056,249) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.00 532.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.50 532.21 Td (28,550,814) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 155.35 518.20 Td (LIABILITIES AND EQUITY) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 504.20 Td (Liabilities:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 490.21 Td (Accounts payable and accrued expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 490.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.75 490.21 Td (920,657) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.00 490.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 528.75 490.21 Td (259,111) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 476.21 Td (Due to affiliates) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 476.21 Td (3,186,210) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.00 476.21 Td (5,213,634) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 462.21 Td (Intangible lease liabilities, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 462.21 Td (2,470,106) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 462.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 448.21 Td (Other liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 448.21 Td (1,866,926) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 448.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 434.21 Td (Distributions payable) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.75 434.21 Td (479,917) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.25 434.21 Td (18,371) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 420.21 Td (Note payable to affiliate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.00 420.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.50 420.21 Td (24,200,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 406.21 Td (Note payable, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.50 406.21 Td (59,693,212) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 406.21 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 392.20 Td (Total liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 392.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.50 392.21 Td (68,617,028) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.00 392.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.50 392.21 Td (29,691,116) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 364.21 Td (Commitments and contingencies \(Note 11\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.00 364.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 364.21 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 336.20 Td (Equity:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 336.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.00 336.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 322.21 Td (Stockholders equity \(deficit\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 322.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.00 322.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 308.21 Td (Preferred shares, $0.001 par value per share; 500,000,000 preferred shares authorized,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 299.21 Td (none issued or outstanding as of December 31, 2015 and December 31, 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.00 299.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 299.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 285.21 Td (Class A common stock, $0.001 par value per share; 600,000,000 authorized; 10,274,377) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 276.21 Td (and 420,541 issued and outstanding as of December 31, 2015 and December 31, 2014,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 267.21 Td (respectively) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.25 267.21 Td (10,275) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.50 267.21 Td (421) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 253.21 Td (Class T common stock, $0.001 par value per share; 900,000,000 authorized; 787,405 and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 244.21 Td (none issued and outstanding as of December 31, 2015 and December 31, 2014,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 235.21 Td (respectively) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 451.50 235.21 Td (787) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 235.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 221.21 Td (Additional paid-in capital) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.50 221.21 Td (91,576,720) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.25 221.21 Td (42,218) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 207.21 Td (Accumulated distributions in excess of earnings) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.00 207.21 Td (\(9,756,797) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.00 207.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 207.21 Td (\(1,182,941) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 207.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 193.21 Td (Accumulated other comprehensive income \(loss\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.00 193.21 Td (\(1,391,764) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.00 193.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 193.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 179.21 Td (Total stockholders equity \(deficit\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.50 179.21 Td (80,439,221) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 179.21 Td (\(1,140,302) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 179.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 165.21 Td (Noncontrolling interests) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.00 165.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.00 165.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.00 151.21 Td (Total equity \(deficit\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.50 151.21 Td (80,439,221) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.00 151.21 Td (\(1,140,302) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.00 151.21 Td (\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 137.20 Td (Total liabilities and equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 137.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.00 137.21 Td (149,056,249) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.00 137.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.50 137.21 Td (28,550,814) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.60 97.25 Td (See notes to the consolidated financial statements.) 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 /F2 10.00 Tf ET q 0 0 0 rg BT 236.60 742.25 Td (HINES GLOBAL) Tj ET Q q 0 0 0 rg BT 312.46 742.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 339.23 742.25 Td ( II, 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 148.20 718.25 Td (For) Tj ET Q q 0 0 0 rg BT 163.57 718.25 Td ( the ) Tj ET Q q 0 0 0 rg BT 181.53 718.25 Td (Y) Tj ET Q q 0 0 0 rg BT 187.64 718.25 Td (ears Ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 238.20 718.25 Td (December) Tj ET Q q 0 0 0 rg BT 281.32 718.25 Td (31, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 318.82 718.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.95 718.25 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.95 718.25 Td ( and for) Tj ET Q q 0 0 0 rg BT 393.66 718.25 Td ( the Period fr) Tj ET Q q 0 0 0 rg BT 450.40 718.25 Td (om) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.95 706.25 Td (July 31, 2013 \(date of inception\) thr) Tj ET Q q 0 0 0 rg BT 329.71 706.25 Td (ough December) Tj ET Q q 0 0 0 rg BT 396.46 706.25 Td ( 31, 2013) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 655.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 655.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 655.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 655.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 655.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 655.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 625.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 625.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 625.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 625.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 625.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 625.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 596.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 596.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 596.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 596.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 596.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 596.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 566.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 566.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 566.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 566.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 566.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 566.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 536.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 536.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 536.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 536.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 536.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 536.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 506.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 506.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 506.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 506.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 506.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 506.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 476.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 476.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 476.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 476.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 476.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 476.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 446.75 319.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 446.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 446.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 446.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 446.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 446.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 417.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 417.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 417.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 417.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 417.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 417.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 387.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 387.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 387.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 387.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 387.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 387.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 357.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 357.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 357.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 357.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 357.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 357.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 327.75 319.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 327.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 327.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 327.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 327.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 327.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 299.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 299.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 299.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 299.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 299.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 299.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 269.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 269.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 269.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 269.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 269.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 269.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 240.75 319.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 240.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 240.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 240.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 240.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 240.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 211.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 211.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 211.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 211.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 211.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 211.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 181.75 319.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 181.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 181.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 181.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 181.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 181.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 153.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 153.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 153.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 153.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 153.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 153.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 123.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 123.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 123.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 123.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 123.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 123.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 93.75 319.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 93.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 93.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 93.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 93.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 93.75 61.00 -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 368.5 669.75 m 430.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 669.75 m 496.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 669.75 m 561.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 625.75 m 430.5 625.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 625.75 m 496.5 625.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 625.75 m 561.5 625.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 625.75 m 561.5 625.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 476.75 m 430.5 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 476.75 m 496.5 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 476.75 m 561.5 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 476.75 m 430.5 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 461.75 m 430.5 461.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 461.75 m 496.5 461.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 476.75 m 561.5 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 461.75 m 561.5 461.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 461.75 m 430.5 461.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 461.75 m 496.5 461.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 461.75 m 561.5 461.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 372.75 m 430.5 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 372.75 m 496.5 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 372.75 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 368.5 372.75 m 430.5 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 372.75 m 496.5 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 372.75 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 368.5 342.75 m 430.5 342.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 342.75 m 496.5 342.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 342.75 m 561.5 342.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 342.75 m 430.5 342.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 328.75 m 430.5 328.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 326.75 m 430.5 326.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 342.75 m 496.5 342.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 328.75 m 496.5 328.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 326.75 m 496.5 326.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 342.75 m 561.5 342.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 328.75 m 561.5 328.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 326.75 m 561.5 326.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 285.75 m 430.5 285.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 283.75 m 430.5 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 285.75 m 496.5 285.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 283.75 m 496.5 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 285.75 m 561.5 285.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 283.75 m 561.5 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 270.75 m 430.5 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 268.75 m 430.5 268.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 270.75 m 496.5 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 268.75 m 496.5 268.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 270.75 m 561.5 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 268.75 m 561.5 268.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 255.75 m 430.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 253.75 m 430.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 255.75 m 496.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 253.75 m 496.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 255.75 m 561.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 253.75 m 561.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 212.75 m 430.5 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 210.75 m 430.5 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 212.75 m 496.5 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 210.75 m 496.5 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 212.75 m 561.5 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 210.75 m 561.5 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 197.75 m 430.5 197.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 195.75 m 430.5 195.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 197.75 m 496.5 197.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 195.75 m 496.5 195.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 197.75 m 561.5 197.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 195.75 m 561.5 195.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 182.75 m 430.5 182.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 180.75 m 430.5 180.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 182.75 m 496.5 182.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 180.75 m 496.5 180.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 182.75 m 561.5 182.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 180.75 m 561.5 180.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 108.75 m 430.5 108.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 108.75 m 496.5 108.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 108.75 m 561.5 108.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 108.75 m 561.5 108.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 78.75 m 430.5 78.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 78.75 m 496.5 78.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 78.75 m 561.5 78.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 78.75 m 430.5 78.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 64.75 m 430.5 64.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 62.75 m 430.5 62.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 78.75 m 496.5 78.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 64.75 m 496.5 64.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 62.75 m 496.5 62.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 78.75 m 561.5 78.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 64.75 m 561.5 64.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 62.75 m 561.5 62.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.00 674.43 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.00 674.43 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 520.50 674.43 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 660.43 Td (Revenues:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 645.42 Td (Rental revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.00 645.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 645.42 Td (9,278,221) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 645.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 645.42 Td (94,327) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 645.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 645.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 630.42 Td (Other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.15 630.42 Td (132,454) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 630.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 630.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 615.42 Td (Total revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 615.42 Td (9,410,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 615.42 Td (94,327) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 615.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 601.43 Td (Expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 586.42 Td (Property operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 586.42 Td (1,870,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 586.42 Td (21,919) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 586.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 571.42 Td (Real property taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.15 571.42 Td (297,598) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 571.42 Td (9,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 571.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 556.42 Td (Property management fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.15 556.42 Td (128,871) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 556.42 Td (1,769) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 556.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 541.42 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 541.42 Td (4,206,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 541.42 Td (49,288) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 541.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 526.42 Td (Acquisition related expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 526.42 Td (2,962,784) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 526.42 Td (131,454) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 526.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 511.42 Td (Advisory and other related party expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 511.42 Td (2,639,645) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 511.42 Td (570,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 511.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 496.42 Td (Organizational expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 496.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 496.42 Td (63,164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 496.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 481.42 Td (General and administrative expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 481.42 Td (1,548,979) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 481.42 Td (554,476) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 481.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 466.42 Td (Total expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.60 466.42 Td (13,655,029) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 466.42 Td (1,401,905) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 466.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 451.43 Td (Income \(loss\) before other income \(expenses\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.30 451.47 Td (\(4,244,354) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 451.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.30 451.47 Td (\(1,307,578) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 451.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 451.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 437.43 Td (Other income \(expenses\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 422.42 Td (Gain \(loss\) on derivative instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.80 422.47 Td (\(40,535) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 422.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 422.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 422.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 407.42 Td (Foreign currency gains \(losses\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.80 407.47 Td (\(12,107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 407.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 407.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 407.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 392.42 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.30 392.47 Td (\(1,344,779) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 392.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.80 392.47 Td (\(20,328) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 392.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 392.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 377.42 Td (Interest income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 377.42 Td (4,209) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 377.42 Td (243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 377.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 362.43 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.30 362.47 Td (\(5,637,566) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 362.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.30 362.47 Td (\(1,327,663) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 362.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 362.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 347.42 Td (Net \(income\) loss attributable to noncontrolling interests) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.80 347.47 Td (\(12,139) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 347.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 347.42 Td (186,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 347.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 332.43 Td (Net income \(loss\) attributable to common stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.00 332.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.30 332.47 Td (\(5,649,705) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 332.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 332.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.30 332.47 Td (\(1,140,723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 332.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 332.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 332.42 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.00 304.43 Td (Class A Common Stock:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 289.42 Td (Net income \(loss\) attributable to common stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.00 289.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.30 289.47 Td (\(5,643,293) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 289.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 289.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.30 289.47 Td (\(1,140,723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 289.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 289.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 289.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 274.42 Td (Basic and diluted income \(loss\) per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.00 274.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.80 274.47 Td (\(1.11) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 274.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 274.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.80 274.47 Td (\(14.67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 274.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 274.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 274.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 259.42 Td (Weighted average number of common shares outstanding) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 259.42 Td (5,082,459) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 259.42 Td (77,779) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 259.42 Td (1,113) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.00 231.43 Td (Class T Common Stock:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 216.42 Td (Net income \(loss\) attributable to common stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.00 216.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.80 216.47 Td (\(6,412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 216.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 216.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 216.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 216.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 216.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 201.42 Td (Basic and diluted income \(loss\) per common share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.00 201.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.80 201.47 Td (\(0.03) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 201.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 201.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 201.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 201.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 201.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 186.42 Td (Weighted average number of common shares outstanding) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.15 186.42 Td (225,241) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 186.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 186.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 158.43 Td (Comprehensive income \(loss\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 143.42 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.00 143.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.30 143.47 Td (\(5,637,566) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 143.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 143.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.30 143.47 Td (\(1,327,663) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 143.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 143.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 143.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 128.42 Td (Other comprehensive income \(loss\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 113.42 Td (Foreign currency translation adjustment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.30 113.47 Td (\(1,391,764) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 113.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 113.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 113.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 98.43 Td (Comprehensive income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.00 98.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.30 98.47 Td (\(7,029,330) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 98.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 98.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.30 98.47 Td (\(1,327,663) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 98.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 98.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 98.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 83.42 Td (Comprehensive \(income\) loss attributable to noncontrolling interests) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.80 83.47 Td (\(12,139) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 83.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 83.42 Td (186,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 83.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 68.43 Td (Comprehensive income \(loss\) attributable to common stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.00 68.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.30 68.47 Td (\(7,041,469) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 68.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 68.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.30 68.47 Td (\(1,140,723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 68.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 68.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 68.42 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.60 52.25 Td (See notes to the consolidated financial statements.) 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 33.60 Td (62) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 236.60 740.25 Td (HINES GLOBAL) Tj ET Q q 0 0 0 rg BT 312.46 740.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 339.23 740.25 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 176.90 728.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 236.72 728.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 271.27 728.25 Td (A) Tj ET Q q 0 0 0 rg BT 277.75 728.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 342.67 728.25 Td ( EQUITY) Tj ET Q q 0 0 0 rg BT 384.25 728.25 Td ( \(DEFICIT\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 716.25 Td (For) Tj ET Q q 0 0 0 rg BT 163.57 716.25 Td ( the ) Tj ET Q q 0 0 0 rg BT 181.53 716.25 Td (Y) Tj ET Q q 0 0 0 rg BT 187.64 716.25 Td (ears Ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 238.20 716.25 Td (December) Tj ET Q q 0 0 0 rg BT 281.32 716.25 Td (31, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 318.82 716.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.95 716.25 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.95 716.25 Td ( and for) Tj ET Q q 0 0 0 rg BT 393.66 716.25 Td ( the Period fr) Tj ET Q q 0 0 0 rg BT 450.40 716.25 Td (om) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.95 704.25 Td (July 31, 2013 \(date of inception\) thr) Tj ET Q q 0 0 0 rg BT 329.71 704.25 Td (ough December) Tj ET Q q 0 0 0 rg BT 396.46 704.25 Td ( 31, 2013) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 641.75 83.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 132.00 641.75 41.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 173.00 641.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 641.75 34.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.00 641.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 215.00 641.75 34.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.00 641.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 641.75 33.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 641.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 290.00 641.75 45.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 641.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 641.75 49.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 641.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 641.75 56.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 641.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 641.75 50.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 641.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 641.75 56.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 601.75 83.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 132.00 601.75 41.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 173.00 601.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 601.75 34.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.00 601.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 215.00 601.75 34.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.00 601.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 601.75 33.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 601.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 290.00 601.75 45.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 601.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 601.75 49.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.00 601.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 601.75 56.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 601.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 601.75 50.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 601.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 601.75 56.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 496.75 83.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 132.00 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0.9333333333333333 1 rg /GS0 gs 502.00 179.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 179.75 56.00 -20.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 679.75 m 173 679.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 665.75 m 173 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173 679.75 m 177 679.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173 665.75 m 177 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 679.75 m 211 679.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 665.75 m 211 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 679.75 m 215 679.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 665.75 m 215 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 679.75 m 249 679.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 665.75 m 249 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 679.75 m 253 679.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 665.75 m 253 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 679.75 m 286 679.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 665.75 m 286 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 679.75 m 290 679.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 679.75 m 335 679.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 679.75 m 339 679.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 679.75 m 388 679.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 679.75 m 392 679.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 679.75 m 448 679.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 679.75 m 452 679.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 679.75 m 502 679.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 653.75 m 173 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173 653.75 m 177 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 653.75 m 211 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 653.75 m 249 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 653.75 m 253 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 653.75 m 286 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 641.75 m 173 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 641.75 m 211 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 653.75 m 249 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 641.75 m 249 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 653.75 m 253 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 653.75 m 286 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 641.75 m 286 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 641.75 m 335 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 641.75 m 388 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 641.75 m 448 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 641.75 m 502 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 641.75 m 562 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 641.75 m 173 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 641.75 m 211 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 641.75 m 249 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 641.75 m 286 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 641.75 m 335 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 641.75 m 388 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 641.75 m 448 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 641.75 m 502 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 641.75 m 562 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 581.75 m 173 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 562.75 m 173 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 560.75 m 173 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 581.75 m 211 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 562.75 m 211 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 560.75 m 211 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 581.75 m 249 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 562.75 m 249 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 560.75 m 249 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 581.75 m 286 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 562.75 m 286 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 560.75 m 286 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 581.75 m 335 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 562.75 m 335 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 560.75 m 335 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 581.75 m 388 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 562.75 m 388 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 560.75 m 388 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 581.75 m 448 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 562.75 m 448 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 560.75 m 448 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 581.75 m 502 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 562.75 m 502 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 560.75 m 502 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 581.75 m 562 581.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 562.75 m 562 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 560.75 m 562 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 534.75 m 173 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 520.75 m 173 520.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173 534.75 m 177 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173 520.75 m 177 520.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 534.75 m 211 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 520.75 m 211 520.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 534.75 m 215 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 520.75 m 215 520.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 534.75 m 249 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 520.75 m 249 520.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 534.75 m 253 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 520.75 m 253 520.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 534.75 m 286 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 520.75 m 286 520.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 534.75 m 290 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 534.75 m 335 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 534.75 m 339 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 534.75 m 388 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 534.75 m 392 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 534.75 m 448 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 534.75 m 452 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 534.75 m 502 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 508.75 m 173 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173 508.75 m 177 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 508.75 m 211 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 508.75 m 249 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 508.75 m 253 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 508.75 m 286 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 496.75 m 173 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 496.75 m 211 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 508.75 m 249 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 496.75 m 249 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 508.75 m 253 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 508.75 m 286 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 496.75 m 286 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 496.75 m 335 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 496.75 m 388 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 496.75 m 448 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 496.75 m 502 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 496.75 m 562 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 400.75 m 173 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 381.75 m 173 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 379.75 m 173 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 400.75 m 211 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 381.75 m 211 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 379.75 m 211 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 400.75 m 249 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 381.75 m 249 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 379.75 m 249 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 400.75 m 286 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 381.75 m 286 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 379.75 m 286 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 400.75 m 335 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 381.75 m 335 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 379.75 m 335 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 400.75 m 388 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 381.75 m 388 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 379.75 m 388 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 400.75 m 448 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 381.75 m 448 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 379.75 m 448 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 400.75 m 502 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 381.75 m 502 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 379.75 m 502 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 400.75 m 562 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 381.75 m 562 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 379.75 m 562 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 353.75 m 173 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 339.75 m 173 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173 353.75 m 177 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173 339.75 m 177 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 353.75 m 211 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 339.75 m 211 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 353.75 m 215 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 339.75 m 215 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 353.75 m 249 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 339.75 m 249 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 353.75 m 253 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 339.75 m 253 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 353.75 m 286 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 339.75 m 286 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 353.75 m 290 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 353.75 m 335 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 353.75 m 339 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 353.75 m 388 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 353.75 m 392 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 353.75 m 448 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 353.75 m 452 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 353.75 m 502 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 327.75 m 173 327.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 173 327.75 m 177 327.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 327.75 m 211 327.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 327.75 m 249 327.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 327.75 m 253 327.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 327.75 m 286 327.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 315.75 m 173 315.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 315.75 m 211 315.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 327.75 m 249 327.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 315.75 m 249 315.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 327.75 m 253 327.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 327.75 m 286 327.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 315.75 m 286 315.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 315.75 m 335 315.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 315.75 m 388 315.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 315.75 m 448 315.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 315.75 m 502 315.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 315.75 m 562 315.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 315.75 m 502 315.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 179.75 m 173 179.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 160.75 m 173 160.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 158.75 m 173 158.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 179.75 m 211 179.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 160.75 m 211 160.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 158.75 m 211 158.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 179.75 m 249 179.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 160.75 m 249 160.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 158.75 m 249 158.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 179.75 m 286 179.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 160.75 m 286 160.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 158.75 m 286 158.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 179.75 m 335 179.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 160.75 m 335 160.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 158.75 m 335 158.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 179.75 m 388 179.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 160.75 m 388 160.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 158.75 m 388 158.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 179.75 m 448 179.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 160.75 m 448 160.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 158.75 m 448 158.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 179.75 m 502 179.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 160.75 m 502 160.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 158.75 m 502 158.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 179.75 m 562 179.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 160.75 m 562 160.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 158.75 m 562 158.75 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 227.40 684.20 Td (Hines Global REIT II, Inc. Stockholders) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 669.90 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 176.70 670.20 Td (Common Shares) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 294.90 660.87 Td (Additional) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 300.30 653.37 Td (Paid-in) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 300.10 645.87 Td (Capital) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 341.75 668.37 Td (Accumulated) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 341.95 660.87 Td (Distributions) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 344.20 653.37 Td (in Excess of) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 348.40 645.87 Td (Earnings) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 398.25 668.37 Td (Accumulated) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 409.95 660.87 Td (Other) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 394.55 653.37 Td (Comprehensive) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 396.85 645.87 Td (Income \(Loss\)) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 468.30 668.37 Td (Total) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 454.65 660.87 Td (Stockholders) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 465.65 653.37 Td (Equity) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 463.35 645.87 Td (\(Deficit\)) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 509.35 653.37 Td (Noncontrolling) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 519.60 645.87 Td (Interests) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 159.20 657.87 Td (Class A) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 238.15 657.87 Td (Class T) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 141.20 645.87 Td (Shares) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 180.35 645.87 Td (Amount) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 220.70 645.87 Td (Shares) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 255.85 645.87 Td (Amount) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 51.50 633.37 Td (Balance as of July 31,) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 51.50 625.87 Td (2013 \(date of inception\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 162.50 625.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 179.50 625.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 200.50 625.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 625.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 255.50 625.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.50 625.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 292.50 625.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 324.50 625.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 341.50 625.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 377.50 625.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 394.50 625.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 625.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 454.50 625.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 491.50 625.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 508.50 625.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 551.50 625.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 613.40 Td (Issuance of common) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 605.90 Td (shares) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 153.10 605.90 Td (1,111) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 204.25 605.90 Td (1) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 605.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.50 605.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 315.10 605.90 Td (9,999) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 377.50 605.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 605.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 478.35 605.90 Td (10,000) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 551.50 605.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 593.40 Td (Contributions from) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 585.90 Td (noncontrolling interest) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 162.50 585.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 200.50 585.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 585.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.50 585.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 324.50 585.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 377.50 585.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 585.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 491.50 585.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 534.60 585.90 Td (190,000) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 51.50 573.37 Td (Balance as of) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 51.50 565.87 Td (December 31, 2013) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 153.10 565.90 Td (1,111) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 179.50 565.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 204.25 565.90 Td (1) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 565.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 255.50 565.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.50 565.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 292.50 565.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 315.10 565.90 Td (9,999) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 341.50 565.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 377.50 565.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 394.50 565.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 565.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 454.50 565.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 478.35 565.90 Td (10,000) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 508.50 565.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 534.60 565.90 Td (190,000) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 227.40 539.20 Td (Hines Global REIT II, Inc. Stockholders) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 524.90 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 176.70 525.20 Td (Common Shares) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 294.90 515.87 Td (Additional) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 300.30 508.37 Td (Paid-in) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 300.10 500.87 Td (Capital) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 341.75 523.37 Td (Accumulated) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 341.95 515.87 Td (Distributions) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 344.20 508.37 Td (in Excess of) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 348.40 500.87 Td (Earnings) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 398.25 523.37 Td (Accumulated) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 409.95 515.87 Td (Other) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 394.55 508.37 Td (Comprehensive) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 396.85 500.87 Td (Income \(Loss\)) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 468.30 523.37 Td (Total) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 454.65 515.87 Td (Stockholders) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 465.65 508.37 Td (Equity) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 463.35 500.87 Td (\(Deficit\)) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 509.35 508.37 Td (Noncontrolling) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 519.60 500.87 Td (Interests) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 159.20 512.87 Td (Class A) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 238.15 512.87 Td (Class T) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 141.20 500.87 Td (Shares) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 180.35 500.87 Td (Amount) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 220.70 500.87 Td (Shares) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 255.85 500.87 Td (Amount) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 51.50 488.37 Td (Balance as of) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 51.50 480.87 Td (January 1, 2014) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 153.10 480.90 Td (1,111) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 179.50 480.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 204.25 480.90 Td (1) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 480.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 255.50 480.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.50 480.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 292.50 480.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 315.10 480.90 Td (9,999) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 341.50 480.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 377.50 480.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 394.50 480.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 480.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 454.50 480.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 478.35 480.90 Td (10,000) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 508.50 480.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 534.60 480.90 Td (190,000) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 468.40 Td (Issuance of common) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 460.90 Td (shares) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 145.60 460.90 Td (419,430) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 196.75 460.90 Td (420) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 460.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.50 460.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 302.00 460.90 Td (3,863,201) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 377.50 460.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 460.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 469.00 460.90 Td (3,863,621) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 551.50 460.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 448.90 Td (Distributions declared) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 162.50 448.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 200.50 448.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 448.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.50 448.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 324.50 448.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 361.85 448.90 Td (\(42,218) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 385.00 448.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 448.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 475.85 448.90 Td (\(42,218) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.00 448.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.60 448.90 Td (\(3,060) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 559.00 448.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 436.40 Td (Selling commissions and) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 428.90 Td (dealer manager fees) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 162.50 428.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 200.50 428.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 428.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.50 428.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 308.85 428.90 Td (\(88,208) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 332.00 428.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 377.50 428.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 428.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 475.85 428.90 Td (\(88,208) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.00 428.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 551.50 428.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 416.90 Td (Issuer costs) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 162.50 416.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 200.50 416.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 416.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.50 416.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 299.50 416.90 Td (\(3,742,774) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 332.00 416.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 377.50 416.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 416.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.50 416.90 Td (\(3,742,774) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.00 416.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 551.50 416.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 404.90 Td (Net income \(loss\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 162.50 404.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 200.50 404.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 404.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.50 404.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 324.50 404.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 352.50 404.90 Td (\(1,140,723) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 385.00 404.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 404.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.50 404.90 Td (\(1,140,723) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.00 404.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 532.10 404.90 Td (\(186,940) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 559.00 404.90 Td (\)) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 51.50 392.37 Td (Balance as of) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 51.50 384.87 Td (December 31, 2014) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 145.60 384.90 Td (420,541) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 179.50 384.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 196.75 384.90 Td (421) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 384.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 255.50 384.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.50 384.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 292.50 384.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 311.35 384.90 Td (42,218) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 341.50 384.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 352.50 384.90 Td (\(1,182,941) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 385.00 384.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 394.50 384.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 384.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 454.50 384.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.50 384.90 Td (\(1,140,302) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.00 384.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 508.50 384.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 551.50 384.90 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 227.40 358.20 Td (Hines Global REIT II, Inc. Stockholders) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 343.90 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 176.70 344.20 Td (Common Shares) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 294.90 334.87 Td (Additional) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 300.30 327.37 Td (Paid-in) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 300.10 319.87 Td (Capital) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 341.75 342.37 Td (Accumulated) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 341.95 334.87 Td (Distributions) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 344.20 327.37 Td (in Excess of) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 348.40 319.87 Td (Earnings) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 398.25 342.37 Td (Accumulated) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 409.95 334.87 Td (Other) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 394.55 327.37 Td (Comprehensive) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 396.85 319.87 Td (Income \(Loss\)) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 468.30 342.37 Td (Total) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 454.65 334.87 Td (Stockholders) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 465.65 327.37 Td (Equity) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 463.35 319.87 Td (\(Deficit\)) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 509.35 327.37 Td (Noncontrolling) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 519.60 319.87 Td (Interests) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 159.20 331.87 Td (Class A) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 238.15 331.87 Td (Class T) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 141.20 319.87 Td (Shares) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 180.35 319.87 Td (Amount) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 220.70 319.87 Td (Shares) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 255.85 319.87 Td (Amount) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 51.50 307.37 Td (Balance as of) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 51.50 299.87 Td (January 1, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 145.60 299.90 Td (420,541) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 179.50 299.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 196.75 299.90 Td (421) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 299.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 255.50 299.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.50 299.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 292.50 299.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 311.35 299.90 Td (42,218) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 341.50 299.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 352.50 299.90 Td (\(1,182,941) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 385.00 299.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 394.50 299.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 299.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 454.50 299.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.50 299.90 Td (\(1,140,302) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.00 299.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 508.50 299.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 551.50 299.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 287.40 Td (Issuance of common) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 279.90 Td (shares) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 140.00 279.90 Td (9,855,032) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 191.10 279.90 Td (9,855) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 221.60 279.90 Td (787,405) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 271.75 279.90 Td (787) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 294.50 279.90 Td (105,478,892) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 377.50 279.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 279.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 461.50 279.90 Td (105,489,534) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 551.50 279.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 267.90 Td (Distributions declared) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 162.50 267.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 200.50 267.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 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227.90 Td (\(9,749,719) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 332.00 227.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 377.50 227.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 227.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.50 227.90 Td (\(9,749,719) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.00 227.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 551.50 227.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 215.90 Td (Issuer costs) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 162.50 215.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 200.50 215.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 215.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.50 215.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 299.50 215.90 Td (\(4,182,728) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 332.00 215.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 377.50 215.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 215.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.50 215.90 Td (\(4,182,728) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.00 215.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 551.50 215.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 203.90 Td (Net income \(loss\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 162.50 203.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 200.50 203.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 203.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.50 203.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 324.50 203.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 352.50 203.90 Td (\(5,649,705) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 385.00 203.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 437.50 203.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.50 203.90 Td (\(5,649,705) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.00 203.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 538.35 203.90 Td (12,139) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 191.40 Td (Foreign currency) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 183.90 Td (translation adjustment) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 162.50 183.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 200.50 183.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 183.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.50 183.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 324.50 183.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 377.50 183.90 Td () Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 412.50 183.90 Td (\(1,391,764) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 445.00 183.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.50 183.90 Td (\(1,391,764) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.00 183.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 551.50 183.90 Td () Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 51.50 171.37 Td (Balance as of) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 51.50 163.87 Td (December 31, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 136.25 163.90 Td (10,274,377) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 179.50 163.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 187.35 163.90 Td (10,275) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 221.60 163.90 Td (787,405) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 255.50 163.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 271.75 163.90 Td (787) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 292.50 163.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 298.25 163.90 Td (91,576,720) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 341.50 163.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 352.50 163.90 Td (\(9,756,797) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 385.00 163.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 394.50 163.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 412.50 163.90 Td (\(1,391,764) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 445.00 163.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 454.50 163.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 465.25 163.90 Td (80,439,221) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 508.50 163.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 551.50 163.90 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.65 138.65 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 148.20 718.25 Td (For) Tj ET Q q 0 0 0 rg BT 163.57 718.25 Td ( the ) Tj ET Q q 0 0 0 rg BT 181.53 718.25 Td (Y) Tj ET Q q 0 0 0 rg BT 187.64 718.25 Td (ears Ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 238.20 718.25 Td (December) Tj ET Q q 0 0 0 rg BT 281.32 718.25 Td (31, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 318.82 718.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.95 718.25 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.95 718.25 Td ( and for) Tj ET Q q 0 0 0 rg BT 393.66 718.25 Td ( the Period fr) Tj ET Q q 0 0 0 rg BT 450.40 718.25 Td (om) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.95 706.25 Td (July 31, 2013 \(date of inception\) thr) Tj ET Q q 0 0 0 rg BT 329.71 706.25 Td (ough December) Tj ET Q q 0 0 0 rg BT 396.46 706.25 Td ( 31, 2013) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 669.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 669.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 669.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 669.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 669.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 669.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 643.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 643.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 643.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 643.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 643.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 643.75 62.00 -13.00 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0.9333333333333333 1 rg /GS0 gs 433.50 461.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 461.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 461.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 435.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 435.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 435.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 435.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 435.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 435.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 409.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 409.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 409.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 409.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 409.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 409.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 383.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 383.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 383.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 383.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 383.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 383.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 357.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 357.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 357.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 357.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 357.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 357.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 331.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 331.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 331.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 331.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 331.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 331.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 305.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 305.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 305.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 305.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 305.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 305.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 279.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 279.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 279.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 279.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 279.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 279.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 253.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 253.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 253.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 253.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 253.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 253.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 227.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 227.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 227.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 227.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 227.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 227.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 201.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 201.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 201.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 201.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 201.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 201.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 171.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 171.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 171.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 171.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 171.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 171.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 141.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 141.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 141.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 141.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 141.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 141.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 115.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 115.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 115.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 115.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 115.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 115.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 89.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 89.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 89.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 89.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 89.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 89.75 62.00 -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 368.5 682.75 m 429.5 682.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 682.75 m 495.5 682.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 682.75 m 561.5 682.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 513.75 m 429.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 500.75 m 429.5 500.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 513.75 m 495.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 500.75 m 495.5 500.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 513.75 m 561.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 500.75 m 561.5 500.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 435.75 m 429.5 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 422.75 m 429.5 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 435.75 m 495.5 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 422.75 m 495.5 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 435.75 m 561.5 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 422.75 m 561.5 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 253.75 m 429.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 253.75 m 429.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 240.75 m 429.5 240.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 253.75 m 495.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 240.75 m 495.5 240.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 253.75 m 561.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 240.75 m 561.5 240.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 201.75 m 429.5 201.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 189.75 m 429.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 187.75 m 429.5 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 201.75 m 495.5 201.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 189.75 m 495.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 187.75 m 495.5 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 201.75 m 561.5 201.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 189.75 m 561.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 187.75 m 561.5 187.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 687.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.50 686.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.00 686.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 686.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 673.98 Td (CASH FLOWS FROM OPERATING ACTIVITIES:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 661.00 Td (Net income \(loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.00 661.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.60 661.00 Td (\(5,637,566) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 661.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.00 661.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.60 661.00 Td (\(1,327,663) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 661.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 661.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 661.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 648.00 Td (Adjustments to reconcile net income \(loss\) to net cash from operating activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 635.00 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 394.25 635.00 Td (3,981,615) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 635.00 Td (49,288) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 635.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 622.00 Td (Foreign currency \(gains\) losses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.30 622.00 Td (12,107) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 622.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 622.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 609.00 Td (\(Gain\) loss on derivative instruments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.30 609.00 Td (40,535) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 609.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 609.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 596.00 Td (Changes in assets and liabilities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 583.00 Td (Change in other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.60 583.00 Td (\(131,312) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 583.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.60 583.00 Td (\(71,052) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 583.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 583.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 570.00 Td (Change in tenant and other receivables) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.60 570.00 Td (\(928,420) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 570.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.60 570.00 Td (\(5,960) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 570.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 570.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 557.00 Td (Change in deferred leasing costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.60 557.00 Td (\(62,297) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 557.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 557.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 557.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 544.00 Td (Change in accounts payable and accrued expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.30 544.00 Td (639,876) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.30 544.00 Td (106,685) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 544.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 531.00 Td (Change in other liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 394.25 531.00 Td (1,403,679) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.60 531.00 Td (\(88,432) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 531.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 531.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 518.00 Td (Change in due to affiliates) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.60 518.00 Td (\(942,370) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 518.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.25 518.00 Td (1,095,836) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 518.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 505.00 Td (Net cash from operating activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.60 505.00 Td (\(1,624,153) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 505.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.60 505.00 Td (\(241,298) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 505.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 505.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 491.98 Td (CASH FLOWS FROM INVESTING ACTIVITIES:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.00 492.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.00 492.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 479.00 Td (Investments in acquired properties and lease intangibles) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.60 479.00 Td (\(102,689,457) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 479.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.60 479.00 Td (\(25,110,781) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 479.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 479.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 466.00 Td (Capital expenditures at operating property) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.60 466.00 Td (\(332,557) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 466.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 466.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 466.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 453.00 Td (Deposits on investment property) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.60 453.00 Td (\(1,500,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 453.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 453.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 453.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 440.00 Td (Change in restricted cash) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.60 440.00 Td (\(1,615,499) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 440.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 440.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 440.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 427.00 Td (Net cash from investing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.60 427.00 Td (\(106,137,513) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 427.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.60 427.00 Td (\(25,110,781) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 427.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 427.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 413.98 Td (CASH FLOWS FROM FINANCING ACTIVITIES:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.00 414.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.00 414.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 401.00 Td (Proceeds from issuance of common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 386.25 401.00 Td (101,354,077) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.25 401.00 Td (3,800,833) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 401.00 Td (10,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 388.00 Td (Contribution from noncontrolling interest) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.30 388.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 388.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.30 388.00 Td (190,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 375.00 Td (Redemption of common shares) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.60 375.00 Td (\(11,944) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 375.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 375.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 375.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 362.00 Td (Payment of issuer costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.60 362.00 Td (\(5,270,165) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 362.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.60 362.00 Td (\(17,250) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 362.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 362.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 349.00 Td (Payment of selling commissions and dealer manager fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.60 349.00 Td (\(9,384,905) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 349.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.60 349.00 Td (\(77,885) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 349.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 349.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 336.00 Td (Distributions paid to stockholders and noncontrolling interests) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.60 336.00 Td (\(1,226,661) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 336.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.60 336.00 Td (\(26,877) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 336.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 336.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 323.00 Td (Proceeds from notes payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.25 323.00 Td (61,768,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 323.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 323.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 310.00 Td (Proceeds from related party note payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.25 310.00 Td (50,300,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.25 310.00 Td (24,200,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 310.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 297.00 Td (Payments on related party note payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 387.60 297.00 Td (\(74,500,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 297.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 297.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 297.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 284.00 Td (Change in security deposit liability) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.30 284.00 Td (21,997) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 284.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 284.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 271.00 Td (Deferred financing costs paid) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.60 271.00 Td (\(625,875) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 271.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 271.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 271.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 258.00 Td (Payments related to interest rate contracts) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.60 258.00 Td (\(47,876) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 258.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 258.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 258.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 245.00 Td (Net cash from financing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 386.25 245.00 Td (122,377,448) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.25 245.00 Td (27,878,821) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.30 245.00 Td (200,000) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 231.98 Td (Effect of exchange rate changes on cash) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.60 232.00 Td (\(118,076) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 232.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 232.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 232.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 218.98 Td (Net change in cash and cash equivalents) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.25 219.00 Td (14,497,706) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.25 219.00 Td (2,526,742) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.30 219.00 Td (200,000) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 205.98 Td (Cash and cash equivalents, beginning of period) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 394.25 206.00 Td (2,726,742) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.30 206.00 Td (200,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 206.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 192.98 Td (Cash and cash equivalents, end of period) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.00 193.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.25 193.00 Td (17,224,448) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.00 193.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.25 193.00 Td (2,726,742) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 193.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.30 193.00 Td (200,000) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 175.98 Td (Supplemental Disclosure of Cash Flow Information) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 163.00 Td (Cash paid for interest) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.00 163.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 394.25 163.00 Td (1,079,677) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.00 163.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 163.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 163.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 163.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 145.98 Td (Supplemental Schedule of Non-Cash Investing and Financing Activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 133.00 Td (Distributions declared and unpaid) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.00 133.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.30 133.00 Td (479,917) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.00 133.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 133.00 Td (18,371) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 133.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 133.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 120.00 Td (Distributions reinvested) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.00 120.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 394.25 120.00 Td (1,248,083) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.00 120.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 120.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 120.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 120.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 107.00 Td (Offering proceeds due from transfer agent) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.00 107.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 394.25 107.00 Td (2,949,574) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.00 107.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 107.00 Td (62,200) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 107.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 107.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 94.00 Td (Non-cash net liabilities acquired) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.00 94.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.30 94.00 Td (470,144) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.00 94.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.30 94.00 Td (239,219) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 94.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 94.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 81.00 Td (Offering costs payable to the Advisor) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.00 81.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 394.25 81.00 Td (2,701,249) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.00 81.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.25 81.00 Td (4,107,475) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.00 81.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 81.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.60 65.25 Td (See notes to the consolidated financial statements.) Tj ET Q endstream endobj 133 0 obj <>] /Rotate 0 /Contents 134 0 R>> 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 /F2 10.00 Tf ET q 0 0 0 rg BT 236.60 742.25 Td (HINES GLOBAL) Tj ET Q q 0 0 0 rg BT 312.46 742.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 339.23 742.25 Td ( II, 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 REIT) Tj ET Q q 0 0 0 rg BT 145.08 670.25 Td ( II, Inc. \(the Company\), was formed as a Maryland corporation on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.82 670.25 Td (July31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.99 670.25 Td ( for the purpose of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (engaging in the business of investing in and owning commercial real estate properties and other real estate investments. ) Tj ET Q q 0 0 0 rg BT 532.51 658.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (Company intends to conduct substantially all of its operations through Hines Global REIT) Tj ET Q q 0 0 0 rg BT 410.38 646.25 Td ( II Properties, LP) Tj ET Q q 0 0 0 rg BT 478.88 646.25 Td ( \(the Operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (Partnership\). Beginning with its taxable year ended December 31, 2015, the Company intends to continue to operate in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (manner to qualify as a real estate investment trust \(REIT\) for federal income tax purposes. ) Tj ET Q q 0 0 0 rg BT 424.46 622.25 Td (The business of the Company is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (managed by Hines Global REIT) Tj ET Q q 0 0 0 rg BT 178.18 610.25 Td ( II ) Tj ET Q q 0 0 0 rg BT 189.29 610.25 Td (Advisors LP) Tj ET Q q 0 0 0 rg BT 239.20 610.25 Td ( \(the Advisor\), an af) Tj ET Q q 0 0 0 rg BT 328.70 610.25 Td (filiate of Hines Interests Limited Partnership \(Hines\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (pursuant to the ) Tj ET Q q 0 0 0 rg BT 110.88 598.25 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 150.05 598.25 Td (Agreement, dated as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.74 598.25 Td (August15, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.13 598.25 Td (, between the Company) Tj ET Q q 0 0 0 rg BT 404.90 598.25 Td (, the ) Tj ET Q q 0 0 0 rg BT 424.07 598.25 Td (Advisor and the Operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (Partnership \(defined below\). ) Tj ET Q q 0 0 0 rg BT 168.08 586.25 Td (An af) Tj ET Q q 0 0 0 rg BT 190.39 586.25 Td (filiate of the ) Tj ET Q q 0 0 0 rg BT 241.20 586.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 273.03 586.25 Td (, Hines Global REIT) Tj ET Q q 0 0 0 rg BT 355.61 586.25 Td ( II ) Tj ET Q q 0 0 0 rg BT 366.72 586.25 Td (Associates Limited Partnership \(HALP) Tj ET Q q 0 0 0 rg BT 527.70 586.25 Td ( II\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (owned a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.60 574.25 Td (0.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.43 574.25 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 339.70 574.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.28 574.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 550.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.67 550.25 Td (August20, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.06 550.25 Td (, the Company commenced an of) Tj ET Q q 0 0 0 rg BT 280.06 550.25 Td (fering of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.05 550.25 Td ($2.5 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.16 550.25 Td ( of its common stock \(the Of) Tj ET Q q 0 0 0 rg BT 505.40 550.25 Td (fering\). ) Tj ET Q q 0 0 0 rg BT 544.37 550.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 538.25 Td (fering was amended in ) Tj ET Q q 0 0 0 rg BT 152.62 538.25 Td (August 2015 such that the Company is currently of) Tj ET Q q 0 0 0 rg BT 356.85 538.25 Td (fering its common stock in any combination of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.12 526.25 Td (A) Tj ET Q q 0 0 0 rg BT 79.79 526.25 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 123.22 526.25 Td (T) Tj ET Q q 0 0 0 rg BT 129.14 526.25 Td ( shares, at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.60 526.25 Td ($10.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.10 526.25 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 280.49 526.25 Td (A) Tj ET Q q 0 0 0 rg BT 287.16 526.25 Td ( share of common stock \(Class ) Tj ET Q q 0 0 0 rg BT 416.58 526.25 Td (A) Tj ET Q q 0 0 0 rg BT 423.25 526.25 Td ( Shares\) and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.62 526.25 Td ($9.4489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.12 526.25 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 553.88 526.25 Td (T) Tj ET Q q 0 0 0 rg BT 559.80 526.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (share of common stock \(Class ) Tj ET Q q 0 0 0 rg BT 176.79 514.25 Td (T) Tj ET Q q 0 0 0 rg BT 182.72 514.25 Td ( Shares\). ) Tj ET Q q 0 0 0 rg BT 226.97 514.25 Td (The Company also issues shares pursuant to the Company) Tj ET Q q 0 0 0 rg BT 462.49 514.25 Td (s distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (reinvestment plan at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.34 502.25 Td ($9.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.84 502.25 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 237.22 502.25 Td (A) Tj ET Q q 0 0 0 rg BT 243.89 502.25 Td ( Share and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.60 502.25 Td ($9.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.10 502.25 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 352.86 502.25 Td (T) Tj ET Q q 0 0 0 rg BT 358.79 502.25 Td ( Share. ) Tj ET Q q 0 0 0 rg BT 391.38 502.25 Td (The Company engaged Hines Securities, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (Inc. \(HSI\), an af) Tj ET Q q 0 0 0 rg BT 123.45 490.25 Td (filiate of the ) Tj ET Q q 0 0 0 rg BT 174.26 490.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 206.08 490.25 Td (, to serve as the dealer manager for the Of) Tj ET Q q 0 0 0 rg BT 373.60 490.25 Td (fering and market its shares. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (September26, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 478.25 Td (, the Company achieved its minimum of) Tj ET Q q 0 0 0 rg BT 290.39 478.25 Td (fering requirements in all states except for ) Tj ET Q q 0 0 0 rg BT 461.53 478.25 Td (W) Tj ET Q q 0 0 0 rg BT 470.17 478.25 Td (ashington and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (Pennsylvania, which have higher minimum of) Tj ET Q q 0 0 0 rg BT 233.73 466.25 Td (fering requirements. ) Tj ET Q q 0 0 0 rg BT 319.63 466.25 Td (The minimum of) Tj ET Q q 0 0 0 rg BT 387.21 466.25 Td (fering requirements were met on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.22 466.25 Td (March23, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 454.25 Td ( for ) Tj ET Q q 0 0 0 rg BT 85.98 454.25 Td (W) Tj ET Q q 0 0 0 rg BT 94.62 454.25 Td (ashington and on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.44 454.25 Td (December24, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.03 454.25 Td ( for Pennsylvania. ) Tj ET Q q 0 0 0 rg BT 320.96 454.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.40 454.25 Td (March18, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 454.25 Td (, the Company had received gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 442.25 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.89 442.25 Td ($133.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.79 442.25 Td ( from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.82 442.25 Td (13.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.71 442.25 Td ( shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 418.25 Td (The Company intends to invest the net proceeds from the Of) Tj ET Q q 0 0 0 rg BT 309.48 418.25 Td (fering in a diversified portfolio of quality commercial real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (estate properties and other real estate investments throughout the United States and internationally) Tj ET Q q 0 0 0 rg BT 442.07 406.25 Td (. ) Tj ET Q q 0 0 0 rg BT 449.02 406.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.46 406.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.04 406.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (the Company owned direct investments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.58 394.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.58 394.25 Td ( properties. ) Tj ET Q q 0 0 0 rg BT 285.38 394.25 Td (These properties consist of 2819 Loker ) Tj ET Q q 0 0 0 rg BT 443.68 394.25 Td (A) Tj ET Q q 0 0 0 rg BT 450.16 394.25 Td (venue East, a Class ) Tj ET Q q 0 0 0 rg BT 529.31 394.25 Td (A) Tj ET Q q 0 0 0 rg BT 535.98 394.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (industrial building located in Carlsbad, California and Bishop) Tj ET Q q 0 0 0 rg BT 298.90 382.25 Td (s Square, a Class ) Tj ET Q q 0 0 0 rg BT 368.62 382.25 Td (A) Tj ET Q q 0 0 0 rg BT 375.29 382.25 Td ( of) Tj ET Q q 0 0 0 rg BT 385.94 382.25 Td (fice building located in Dublin, Ireland. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (See ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 66.4384765625 368.9169921875 m 98.376953125 368.9169921875 l s q 0 0 1 rg BT 66.44 370.25 Td (Note 13) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 98.38 370.25 Td ( Subsequent Events for additional information regarding the acquisition of the Domain ) Tj ET Q q 0 0 0 rg BT 459.69 370.25 Td (Apartments in January ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (2016.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (2.SUMMAR) Tj ET Q q 0 0 0 rg BT 108.25 334.25 Td (Y) Tj ET Q q 0 0 0 rg BT 115.10 334.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 131.12 334.25 Td ( SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 200.12 334.25 Td ( ) Tj ET Q q 0 0 0 rg BT 202.07 334.25 Td (ACCOUNTING POLICIES) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 310.25 Td (Use of Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 286.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 127.71 286.25 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 50.00 274.25 Td (accepted in the United States of ) Tj ET Q q 0 0 0 rg BT 178.85 274.25 Td (America \(GAAP\). ) Tj ET Q q 0 0 0 rg BT 265.85 274.25 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 50.00 262.25 Td (Company to make estimates and judgments that af) Tj ET Q q 0 0 0 rg BT 251.72 262.25 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 50.00 250.25 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 504.39 250.25 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 Td (evaluates its assumptions and estimates on an ongoing basis. ) Tj ET Q q 0 0 0 rg BT 297.29 238.25 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 50.00 226.25 Td (various other assumptions that the Company believes to be reasonable under the circumstances. ) Tj ET Q q 0 0 0 rg BT 436.84 226.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 486.74 226.25 Td (, application of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 214.25 Td (s accounting policies involves exercising judgments regarding assumptions as to future uncertainties. ) Tj ET Q q 0 0 0 rg BT 500.46 214.25 Td (Actual results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 Td (may dif) Tj ET Q q 0 0 0 rg BT 80.64 202.25 Td (fer from these estimates under dif) Tj ET Q q 0 0 0 rg BT 215.14 202.25 Td (ferent assumptions or conditions.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 178.25 Td (Basis ) Tj ET Q q 0 0 0 rg BT 92.17 178.25 Td (of ) Tj ET Q q 0 0 0 rg BT 102.45 178.25 Td (Pr) Tj ET Q q 0 0 0 rg BT 112.08 178.25 Td (esentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 154.25 Td (The consolidated financial statements of the Company include the accounts of Hines Global REIT) Tj ET Q q 0 0 0 rg BT 460.76 154.25 Td ( II, Inc. and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.25 Td (Operating Partnership \(over which the Company exercises financial and operating control\). ) Tj ET Q q 0 0 0 rg BT 419.60 142.25 Td (All intercompany balances and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td (transactions have been eliminated in consolidation. ) Tj ET Q q 0 0 0 rg BT 259.20 130.25 Td (The Company has retroactively changed, for all periods presented, its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (classification of distributions in the consolidated balance sheet and statement of equity by reflecting such distributions as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (char) Tj ET Q q 0 0 0 rg BT 67.03 106.25 Td (ges against accumulated distributions in excess of earnings. ) Tj ET Q q 0 0 0 rg BT 318.99 106.25 Td (This presentation change had no impact on the balances in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (total equity in any of the periods presented.) 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 /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.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 526.10 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 50.00 514.10 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 50.00 502.10 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 471.53 502.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 521.44 502.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 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 50.00 478.10 Td (estimate of the net market-based rental revenues and net operating costs \(primarily consisting of real estate taxes, insurance and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (utilities\) that would be incurred during the lease-up period. ) Tj ET Q q 0 0 0 rg BT 290.21 466.10 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 50.00 454.10 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 50.00 442.10 Td (char) Tj ET Q q 0 0 0 rg BT 67.03 442.10 Td (ged to amortization expense.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 418.10 Td (Acquired out-of-market lease values \(including ground leases\) arerecorded based on the present value \(using a discount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (rate that reflects the risks associated with the lease acquired\) of the dif) Tj ET Q q 0 0 0 rg BT 330.82 406.10 Td (ference between the contractual amounts paid pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (the in-place leases and management) Tj ET Q q 0 0 0 rg BT 196.60 394.10 Td (s estimate of fair market value lease rates for the corresponding in-place leases. ) Tj ET Q q 0 0 0 rg BT 518.78 394.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 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 50.00 370.10 Td (over the remaining terms of the respective leases, which include periods covered by bar) Tj ET Q q 0 0 0 rg BT 400.24 370.10 Td (gain renewal options. Should a tenant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 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 382.19 358.10 Td (ged to rental revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 334.10 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 50.00 322.10 Td (pricing for similar types of debt with similar maturities. ) Tj ET Q q 0 0 0 rg BT 276.90 322.10 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 50.00 310.10 Td (estimated fair value as of the assumption date, and the dif) Tj ET Q q 0 0 0 rg BT 280.02 310.10 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 50.00 298.10 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 68.00 274.10 Td (Impairment of Investment Pr) Tj ET Q q 0 0 0 rg BT 182.88 274.10 Td (operty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 250.10 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 50.00 238.10 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 50.00 226.10 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 50.00 214.10 Td (basis to the carrying amount of such property) Tj ET Q q 0 0 0 rg BT 230.69 214.10 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 50.00 202.10 Td (down to theestimated fair value to reflect impairment in the value of the asset. ) Tj ET Q q 0 0 0 rg BT 369.43 202.10 Td (The determination of whether investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 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 50.00 178.10 Td (to management at the time of the evaluation. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.27 178.10 Td (No) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.49 178.10 Td ( impairment char) Tj ET Q q 0 0 0 rg BT 313.62 178.10 Td (ges were recorded during the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 178.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.74 178.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.94 166.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.94 166.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 142.10 Td (Cash ) Tj ET Q q 0 0 0 rg BT 91.06 142.10 Td (and ) Tj ET Q q 0 0 0 rg BT 108.56 142.10 Td (Cash ) Tj ET Q q 0 0 0 rg BT 131.62 142.10 Td (Equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 118.10 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 50.00 106.10 Td (three months or less at the time of purchase to be cash equivalents.) 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 /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, 2015) 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 /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 670.10 Td (International Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.10 Td (The Euro \(EUR\) is the functional currency for the Company) Tj ET Q q 0 0 0 rg BT 320.97 646.10 Td (s subsidiary operating in Ireland. ) Tj ET Q q 0 0 0 rg BT 457.15 646.10 Td (This subsidiary has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (translated its financial statements into U.S. dollars for reporting purposes. ) Tj ET Q q 0 0 0 rg BT 349.38 634.10 Td (Assets and liabilities are translated at the exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (rate in ef) Tj ET Q q 0 0 0 rg BT 85.35 622.10 Td (fect as of the balance sheet date while income statement accounts are translated using the average exchange rate for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (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 50.00 598.10 Td (translation are included in accumulated other comprehensive income \(loss\) within stockholders) Tj ET Q q 0 0 0 rg BT 433.58 598.10 Td ( equity) Tj ET Q q 0 0 0 rg BT 460.43 598.10 Td (. Upon disposal of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (subsidiary) Tj ET Q q 0 0 0 rg BT 90.46 586.10 Td (, the Company will remove the accumulated translation adjustment from stockholders) Tj ET Q q 0 0 0 rg BT 436.02 586.10 Td ( equity and include it in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 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 68.00 550.10 Td (This subsidiary may have transactions denominated in currencies other than its functional currency) Tj ET Q q 0 0 0 rg BT 463.34 550.10 Td (. In these instances, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (assets and liabilities are remeasured into the functional currency at the exchange rate in ef) Tj ET Q q 0 0 0 rg BT 409.11 538.10 Td (fect at the end of the period and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (income statement accounts are remeasured at the average exchange rate for the period. ) Tj ET Q q 0 0 0 rg BT 401.03 526.10 Td (These gains or losses are included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (the Company) Tj ET Q q 0 0 0 rg BT 106.38 514.10 Td (s results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 490.10 Td (This subsidiary also records gains or losses in the income statement when a transaction with a third party) Tj ET Q q 0 0 0 rg BT 486.97 490.10 Td (, denominated in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (currency other than its functional currency) Tj ET Q q 0 0 0 rg BT 219.56 478.10 Td (, is settled and the functional currency cash flows realized are more or less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (expected based upon the exchange rate in ef) Tj ET Q q 0 0 0 rg BT 226.12 466.10 Td (fect when the transaction was initiated.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 442.10 Td (Restricted Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 418.10 Td (The Company has restricted cash primarily related to certain escrow accounts required by the Bishop) Tj ET Q q 0 0 0 rg BT 475.08 418.10 Td (s Square secured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (facility) Tj ET Q q 0 0 0 rg BT 77.67 406.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 382.10 Td (T) Tj ET Q q 0 0 0 rg BT 72.64 382.10 Td (enant and Other Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 358.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 358.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 358.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.47 358.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.05 358.10 Td (, in addition to the straight-line rent receivable discussed below) Tj ET Q q 0 0 0 rg BT 521.66 358.10 Td (, tenant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (and other receivables also consisted of a receivable from the Company) Tj ET Q q 0 0 0 rg BT 335.45 346.10 Td (s transfer agent related to of) Tj ET Q q 0 0 0 rg BT 447.16 346.10 Td (fering proceeds not yet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (received of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.19 334.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.08 334.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.52 334.10 Td ($62,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.02 334.10 Td (, respectively) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 251.33 334.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 310.10 Td (Deferr) Tj ET Q q 0 0 0 rg BT 94.29 310.10 Td (ed Leasing Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 286.10 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 50.00 274.10 Td (capitalized and amortized over the life of the related lease. ) Tj ET Q q 0 0 0 rg BT 288.59 274.10 Td (T) Tj ET Q q 0 0 0 rg BT 294.00 274.10 Td (enant inducement amortization is recorded as an of) Tj ET Q q 0 0 0 rg BT 497.91 274.10 Td (fset to rental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (revenue and the amortization of other direct leasing costs is recorded in amortization expense.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 238.10 Td (Deferr) Tj ET Q q 0 0 0 rg BT 94.29 238.10 Td (ed Financing Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 214.10 Td (Deferred financing costs consist of direct costs incurred in obtaining debt financing. ) Tj ET Q q 0 0 0 rg BT 408.83 214.10 Td (These costs are presented as a direct ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (reduction from the related debt liability for permanent mortgages and presented as an asset for revolving credit arrangements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (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 276.85 190.10 Td ($525,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.35 190.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.79 190.10 Td ($8,925) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.29 190.10 Td ( for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.64 190.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.23 190.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 178.10 Td (. ) Tj ET Q q 0 0 0 rg BT 77.32 178.10 Td (These costs are amortized into interest expense on a straight-line basis, which approximates the ef) Tj ET Q q 0 0 0 rg BT 468.96 178.10 Td (fective interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (method, over the terms of the obligations. For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.38 166.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.96 166.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.96 166.10 Td ($88,01) Tj ET Q q 0 0 0 rg BT 410.09 166.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.09 166.10 Td ( of deferred financing costs were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (amortized into interest expense in the accompanying consolidated statement of operations. ) Tj ET Q q 0 0 0 rg BT 416.65 154.10 Td (The Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.02 154.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.02 154.10 Td ( amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (of deferred financing costs for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.36 142.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.94 142.10 Td ( and the period from inception through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.41 142.10 Td (December31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.99 142.10 Td (.) 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 /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:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 692.60 305.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 692.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 692.60 92.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 692.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.50 692.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 662.60 305.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 662.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 662.60 92.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 662.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.50 662.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 632.60 305.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 632.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 632.60 92.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 632.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.50 632.60 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 358.5 692.6 m 450.5 692.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 692.6 m 544.5 692.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 632.6 m 450.5 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 632.6 m 544.5 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 618.6 m 450.5 618.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 616.6 m 450.5 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 618.6 m 544.5 618.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 616.6 m 544.5 616.6 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 363.65 697.28 Td (December 31, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.65 697.28 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 682.27 Td (Deposits on investment property) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.00 682.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 682.27 Td (1,500,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.00 682.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 682.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 667.27 Td (Deferred issuer costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 667.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.15 667.27 Td (364,701) 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 414.15 652.27 Td (202,859) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 652.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 637.27 Td (Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 637.27 Td (10,470) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.15 637.27 Td (81,574) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 547.00 642.43 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 622.27 Td (Other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.00 622.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 622.27 Td (1,713,329) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.00 622.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.15 622.27 Td (446,275) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td (\(1\) ) Tj ET Q 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, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 594.10 Td (, this primarily consisted of excess cash held in an escrow account related to timing dif) Tj ET Q q 0 0 0 rg BT 517.97 594.10 Td (ferences ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 582.10 Td (during the completion of the acquisition of 2819 Loker ) Tj ET Q q 0 0 0 rg BT 289.90 582.10 Td (A) Tj ET Q q 0 0 0 rg BT 296.38 582.10 Td (venue East.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 558.10 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 534.10 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 543.30 534.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (Straight-line rent receivables were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.94 522.10 Td ($627,875) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.44 522.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.88 522.10 Td ($5,895) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.38 522.10 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.54 522.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.12 522.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.56 522.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.56 522.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 469.22 522.10 Td (. Straight-line rent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 Td (receivable consists of the dif) Tj ET Q q 0 0 0 rg BT 164.22 510.10 Td (ference between the tenants) Tj ET Q q 0 0 0 rg BT 277.58 510.10 Td ( rents calculated on a straight-line basis from the date of acquisition or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.10 Td (lease commencement over the remaining terms of the related leases and the tenants) Tj ET Q q 0 0 0 rg BT 385.23 498.10 Td ( actual rents due under the lease agreements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (and is included in tenant and other receivables in the accompanying consolidated balance sheets. Revenues associated with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (operating expense recoveries are recognized in the period in which the expenses are incurred based upon the tenant lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.10 Td (provisions. Revenues relating to lease termination fees are recognized on a straight-line basis amortized from the time that a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (tenant) Tj ET Q q 0 0 0 rg BT 77.21 450.10 Td (s right to occupy the leased space is modified through the end of the revised lease term.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 426.10 Td (Issuer ) Tj ET Q q 0 0 0 rg BT 94.94 426.10 Td (Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 402.10 Td (The Company reimburses the ) Tj ET Q q 0 0 0 rg BT 187.98 402.10 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 259.17 402.10 Td (filiates for any issuer costs related to the Of) Tj ET Q q 0 0 0 rg BT 433.38 402.10 Td (fering that it pays on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 390.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 390.10 Td (s behalf. Such costs consist of, among other costs, expenses of the Company) Tj ET Q q 0 0 0 rg BT 402.72 390.10 Td (s or) Tj ET Q q 0 0 0 rg BT 417.27 390.10 Td (ganization, actual legal, accounting, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 378.10 Td (bona fide out-of-pocket itemized and detailed due diligence costs, printing, filing fees, transfer agent costs, postage, escrow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (fees, data processing fees, advertising and sales literature and other of) Tj ET Q q 0 0 0 rg BT 329.16 366.10 Td (fering-related costs. ) Tj ET Q q 0 0 0 rg BT 413.38 366.10 Td (The Company did not have an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.10 Td (obligation to reimburse the ) Tj ET Q q 0 0 0 rg BT 159.98 354.10 Td (Advisor for any issuer costs until it achieved its minimum of) Tj ET Q q 0 0 0 rg BT 402.54 354.10 Td (fering requirements on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.12 354.10 Td (September26, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 342.10 Td (. ) Tj ET Q q 0 0 0 rg BT 77.32 342.10 Td (Therefore, the Company did not record issuer costs within its financial statements until that time. Or) Tj ET Q q 0 0 0 rg BT 478.43 342.10 Td (ganizational issuer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (costs, 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 50.00 318.10 Td (andof) Tj ET Q q 0 0 0 rg BT 75.09 318.10 Td (fering-related issuer costs are recorded as an of) Tj ET Q q 0 0 0 rg BT 263.43 318.10 Td (fset to additional paid-in capital. From inception to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.27 318.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.85 318.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (issuer costs incurred by the ) Tj ET Q q 0 0 0 rg BT 160.81 306.10 Td (Advisor on the Company) Tj ET Q q 0 0 0 rg BT 264.41 306.10 Td (s behalf totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.00 306.10 Td ($8.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.89 306.10 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.66 306.10 Td ($45,914) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.16 306.10 Td ( related to or) Tj ET Q q 0 0 0 rg BT 502.79 306.10 Td (ganizational ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (issuer costs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 270.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 104.57 270.10 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 246.10 Td (The Company intends to make an election to be taxed as a REIT) Tj ET Q q 0 0 0 rg BT 324.96 246.10 Td (, under Sections 856 through 860 of the Internal Revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 234.10 Td (Code of 1986, as amended \(the Code\), and expects it will be taxed as such beginning with its taxable year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 222.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 222.10 Td (. In order to qualify as a REIT) Tj ET Q q 0 0 0 rg BT 250.86 222.10 Td (, an entity must meet certain or) Tj ET Q q 0 0 0 rg BT 374.80 222.10 Td (ganizational and operational requirements, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 210.10 Td (including a requirement to distribute at least 90% of its annual ordinary taxable income to stockholders. REIT) Tj ET Q q 0 0 0 rg BT 491.41 210.10 Td (s are generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 198.10 Td (not subject to federal income tax on taxable income that they distribute to their stockholders. If the Company fails to qualify as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 186.10 Td (a REIT) Tj ET Q q 0 0 0 rg BT 78.97 186.10 Td ( in any taxable year) Tj ET Q q 0 0 0 rg BT 156.87 186.10 Td (, it will be subject to federal income taxes on its taxable income at regular corporate rates and will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 174.10 Td (not be permitted to qualify for treatment as a REIT) Tj ET Q q 0 0 0 rg BT 253.36 174.10 Td ( for federal income tax purposes for four years following the year during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 162.10 Td (which qualification is lost unless the Internal Revenue Service granted the Company relief under certain statutory provisions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 150.10 Td (Such an event could materially adversely af) Tj ET Q q 0 0 0 rg BT 224.75 150.10 Td (fect the Company) Tj ET Q q 0 0 0 rg BT 298.62 150.10 Td (s net income and net cash available for distribution to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 Td (stockholders. However) Tj ET Q q 0 0 0 rg BT 144.30 138.10 Td (, the Company believes that it will be or) Tj ET Q q 0 0 0 rg BT 304.36 138.10 Td (ganized and operate in such a manner as to qualify for treatment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (as a REIT) Tj ET Q q 0 0 0 rg BT 89.80 126.10 Td ( and intends to operate in the foreseeable future in such a manner so that the Company will remain qualified as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.10 Td (REIT) Tj ET Q q 0 0 0 rg BT 72.04 114.10 Td ( for federal income tax purposes. ) Tj ET Q q 0 0 0 rg BT 208.47 114.10 Td (The Company did not elect to be taxed as a REIT) Tj ET Q q 0 0 0 rg BT 406.01 114.10 Td ( for the taxable year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 102.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 102.10 Td (. ) Tj ET Q q 0 0 0 rg BT 135.90 102.10 Td (This did not have an impact on the Company) Tj ET Q q 0 0 0 rg BT 318.65 102.10 Td (s tax liability or the tax liability of the Company) Tj ET Q q 0 0 0 rg BT 514.45 102.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 90.10 Td (stockholders that invested in the Company) Tj ET Q q 0 0 0 rg BT 223.03 90.10 Td (s public of) Tj ET Q q 0 0 0 rg BT 265.06 90.10 Td (fering during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.05 90.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.05 90.10 Td ( since the Company did not have any taxable income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 78.10 Td (for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.96 78.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.54 78.10 Td ( and for the period from July 31, 2013 \(date of inception\) through December 31, 2013.) 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 /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (Distribution and Stockholder Servicing Fee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (Per the terms of the Company) Tj ET Q q 0 0 0 rg BT 190.48 718.10 Td (s Dealer Manager ) Tj ET Q q 0 0 0 rg BT 263.50 718.10 Td (Agreement, the Company will pay a distribution and stockholder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (servicing fee of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.69 706.10 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.52 706.10 Td (per annum of the gross of) Tj ET Q q 0 0 0 rg BT 240.32 706.10 Td (fering price per share \(or) Tj ET Q q 0 0 0 rg BT 339.31 706.10 Td (, if the Company is no longer of) Tj ET Q q 0 0 0 rg BT 466.88 706.10 Td (fering primary shares, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (the then-current estimated net asset value per share, if any has been disclosed\) for Class ) Tj ET Q q 0 0 0 rg BT 403.03 694.10 Td (T) Tj ET Q q 0 0 0 rg BT 408.96 694.10 Td ( Shares sold in the Of) Tj ET Q q 0 0 0 rg BT 495.15 694.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 523.85 694.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (distribution and stockholder servicing fee will accrue daily and be paid quarterly in arrears. ) Tj ET Q q 0 0 0 rg BT 417.19 682.10 Td (The distribution and stockholder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (servicing fees are ongoing fees that are not paid at the time of purchase. ) Tj ET Q q 0 0 0 rg BT 339.43 670.10 Td (The Company will cease paying the distribution and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (stockholder servicing fee with respect to any particular Class ) Tj ET Q q 0 0 0 rg BT 296.13 658.10 Td (T) Tj ET Q q 0 0 0 rg BT 302.06 658.10 Td ( Share and that Class ) Tj ET Q q 0 0 0 rg BT 388.25 658.10 Td (T) Tj ET Q q 0 0 0 rg BT 394.17 658.10 Td ( Share will convert into a number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (Class) Tj ET Q q 0 0 0 rg BT 73.62 646.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.29 646.10 Td ( Shares on the earlier of: \(i\) a listing of the Class ) Tj ET Q q 0 0 0 rg BT 276.35 646.10 Td (A) Tj ET Q q 0 0 0 rg BT 283.02 646.10 Td ( Shares on a national securities exchange; \(ii\) a mer) Tj ET Q q 0 0 0 rg BT 489.15 646.10 Td (ger or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (consolidation of the Company with or into another entity) Tj ET Q q 0 0 0 rg BT 277.09 634.10 Td (, or the sale or other disposition of all or substantially all of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 622.10 Td (s assets; \(iii\) the end of the month in which the Dealer Manager determines that total underwriting compensation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (paid in the Of) Tj ET Q q 0 0 0 rg BT 105.08 610.10 Td (fering including the distribution and stockholder servicing fee paid on all Class ) Tj ET Q q 0 0 0 rg BT 423.72 610.10 Td (T) Tj ET Q q 0 0 0 rg BT 429.65 610.10 Td ( Shares sold in the Of) Tj ET Q q 0 0 0 rg BT 515.84 610.10 Td (fering is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.43 598.10 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.26 598.10 Td ( of the gross proceeds of the Of) Tj ET Q q 0 0 0 rg BT 235.88 598.10 Td (fering from the sale of both Class ) Tj ET Q q 0 0 0 rg BT 371.68 598.10 Td (A) Tj ET Q q 0 0 0 rg BT 378.35 598.10 Td ( Shares and Class ) Tj ET Q q 0 0 0 rg BT 450.94 598.10 Td (T) Tj ET Q q 0 0 0 rg BT 456.87 598.10 Td ( Shares; \(iv\)the end of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (the month in which the transfer agent, on behalf of the Company) Tj ET Q q 0 0 0 rg BT 308.17 586.10 Td (, determines that underwriting compensation paid in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (primary of) Tj ET Q q 0 0 0 rg BT 92.30 574.10 Td (fering including the distribution and stockholder servicing fee paid with respect to the Class ) Tj ET Q q 0 0 0 rg BT 462.04 574.10 Td (T) Tj ET Q q 0 0 0 rg BT 467.96 574.10 Td ( Shares held by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (stockholder within his or her particular account equals ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.93 562.10 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.76 562.10 Td ( of the gross of) Tj ET Q q 0 0 0 rg BT 355.57 562.10 Td (fering price at the time of investment of the Class ) Tj ET Q q 0 0 0 rg BT 555.89 562.10 Td (T) Tj ET Q q 0 0 0 rg BT 561.82 562.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (Shares held in such account; and \(v\) on any Class ) Tj ET Q q 0 0 0 rg BT 250.88 550.10 Td (T) Tj ET Q q 0 0 0 rg BT 256.81 550.10 Td ( Share that is redeemed or repurchased. ) Tj ET Q q 0 0 0 rg BT 418.69 550.10 Td (Although the Company cannot ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (predict the length of time over which this fee will be paid due to potential changes in the estimated net asset value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 526.10 Td (s Class ) Tj ET Q q 0 0 0 rg BT 122.05 526.10 Td (T) Tj ET Q q 0 0 0 rg BT 127.97 526.10 Td ( Shares, this fee would be paid over approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.47 526.10 Td (5.25 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.57 526.10 Td ( from the date of purchase, assuming a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (constant per share of) Tj ET Q q 0 0 0 rg BT 132.84 514.10 Td (fering price or estimated net asset value, as applicable of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.91 514.10 Td ($9.4489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.41 514.10 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 436.17 514.10 Td (T) Tj ET Q q 0 0 0 rg BT 442.10 514.10 Td ( Share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 490.10 Td (The Company recorded its distribution and stockholder servicing fees as an operating expense in the Company) Tj ET Q q 0 0 0 rg BT 513.72 490.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (consolidated statement of operations, as they were earned by the Dealer Manager) Tj ET Q q 0 0 0 rg BT 374.32 478.10 Td (. For the year ended December 31, 2015, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.20 466.10 Td ($7,254) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.70 466.10 Td ( of distribution and stockholder servicing fees.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 442.10 Td (Redemption of Common Stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 418.10 Td (The Company complies with the Financial ) Tj ET Q q 0 0 0 rg BT 240.19 418.10 Td (Accounting Standards Board \(F) Tj ET Q q 0 0 0 rg BT 370.81 418.10 Td (ASB\) ) Tj ET Q q 0 0 0 rg BT 399.98 418.10 Td (Accounting Standards Codification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (\(ASC\) 480 Distinguishing Liabilities from Equity which requires, among other things, that financial instruments that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (represent a mandatory obligation of the Company to repurchase shares be classified as liabilities and reported at settlement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (value. ) Tj ET Q q 0 0 0 rg BT 78.97 382.10 Td (When approved, the Company will reclassify such obligations from equity to an accrued liability based upon their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (respective settlement values. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 346.10 Td (Reclassifications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 322.10 Td (On ) Tj ET Q q 0 0 0 rg BT 82.17 322.10 Td (August 6, 2015, the Company supplemented its ) Tj ET Q q 0 0 0 rg BT 274.10 322.10 Td (Articles of ) Tj ET Q q 0 0 0 rg BT 318.54 322.10 Td (Amendment and Restatement to reclassify ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.43 322.10 Td (900,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.43 322.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (authorized but unissued shares of Class ) Tj ET Q q 0 0 0 rg BT 209.42 310.10 Td (A) Tj ET Q q 0 0 0 rg BT 216.09 310.10 Td ( common stock as Class ) Tj ET Q q 0 0 0 rg BT 314.51 310.10 Td (T) Tj ET Q q 0 0 0 rg BT 320.44 310.10 Td ( common stock. ) Tj ET Q q 0 0 0 rg BT 388.49 310.10 Td (As a result, the Company reclassified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (900,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 298.10 Td ( Class ) Tj ET Q q 0 0 0 rg BT 126.12 298.10 Td (A) Tj ET Q q 0 0 0 rg BT 132.79 298.10 Td ( shares authorized on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.70 298.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.28 298.10 Td ( balance sheet into shares of Class ) Tj ET Q q 0 0 0 rg BT 452.23 298.10 Td (T) Tj ET Q q 0 0 0 rg BT 458.15 298.10 Td ( common stock.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 274.10 Td (Per Shar) Tj ET Q q 0 0 0 rg BT 103.46 274.10 Td (e Data) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 250.10 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 50.00 238.10 Td (for each period for each class of share by the weighted average number of common shares for each class of share outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (during such period. Net income \(loss\) per common share for each class of share on a basic and diluted basis is the same ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (because the Company has no potentially dilutive common shares outstanding.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 190.10 Td (Recent ) Tj ET Q q 0 0 0 rg BT 97.52 190.10 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 155.19 190.10 Td (onouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 166.10 Td (In January 2015, the F) Tj ET Q q 0 0 0 rg BT 156.96 166.10 Td (ASB issued amendments to the Codification to provide guidance on the disclosure of extraordinary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (items. ) Tj ET Q q 0 0 0 rg BT 78.98 154.10 Td (The amendments eliminate the concept of extraordinary items from GAAP) Tj ET Q q 0 0 0 rg BT 377.50 154.10 Td (. ) Tj ET Q q 0 0 0 rg BT 384.82 154.10 Td (These amendments are ef) Tj ET Q q 0 0 0 rg BT 486.54 154.10 Td (fective for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (years, and interim periods within those years, beginning after December 15, 2015 and early adoption is permitted. ) Tj ET Q q 0 0 0 rg BT 510.24 142.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (Company does not believe the adoption of this guidance will have a material impact on its financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 106.10 Td (In February 2015, the F) Tj ET Q q 0 0 0 rg BT 161.96 106.10 Td (ASB issued amendments to the Codification) Tj ET Q q 0 0 0 rg BT 342.22 106.10 Td (s consolidation guidance which improves tar) Tj ET Q q 0 0 0 rg BT 520.61 106.10 Td (geted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (areas of the consolidation guidance and reduces the number of consolidation models. ) Tj ET Q q 0 0 0 rg BT 394.72 94.10 Td (The amendments in the ) Tj ET Q q 0 0 0 rg BT 490.25 94.10 Td (Accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (Standards Update \(ASU\) are ef) Tj ET Q q 0 0 0 rg BT 183.65 82.10 Td (fective for annual and interim periods in fiscal years beginning after December 15, 2015, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (early adoption permitted. ) Tj ET Q q 0 0 0 rg BT 155.62 70.10 Td (The Company has not elected to early adopt this standard. ) Tj ET Q q 0 0 0 rg BT 392.60 70.10 Td (The Company has evaluated the impact of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (the adoption of these amendments on its consolidated financial statements and has determined that the Operating Partnership is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (considered a variable interest entity \(VIE\). However) Tj ET Q q 0 0 0 rg BT 270.61 46.10 Td (, the Company meets the disclosure exemption criteria as the Company ) 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 50.00 742.10 Td (is the primary beneficiary of the ) Tj ET Q q 0 0 0 rg BT 180.88 742.10 Td (VIE and the Company) Tj ET Q q 0 0 0 rg BT 273.36 742.10 Td (s partnership interest is considered a majority voting interest. ) Tj ET Q q 0 0 0 rg BT 521.91 742.10 Td (As such, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (the Company does not believe this standard will have a material impact on its consolidated financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 708.10 Td (In ) Tj ET Q q 0 0 0 rg BT 78.28 708.10 Td (April 2015 and ) Tj ET Q q 0 0 0 rg BT 140.77 708.10 Td (August 2015, the F) Tj ET Q q 0 0 0 rg BT 216.70 708.10 Td (ASB issued amendments to change the prior guidance concerning the presentation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 696.10 Td (debt issuance costs in the financial statements. Under this revised guidance, an entity will present such costs in the balance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 684.10 Td (sheet as a direct deduction from the related debt liability rather than as an asset, except for costs related to lines of credit which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 672.10 Td (will remain an asset in the financial statements. ) Tj ET Q q 0 0 0 rg BT 244.20 672.10 Td (These amendments are ef) Tj ET Q q 0 0 0 rg BT 345.92 672.10 Td (fective for fiscal years, and interim periods within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 660.10 Td (those years, beginning after December 15, 2015 and early adoption is permitted. ) Tj ET Q q 0 0 0 rg BT 375.83 660.10 Td (The Company elected to adopt these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 648.10 Td (amendments early) Tj ET Q q 0 0 0 rg BT 122.38 648.10 Td (, ef) Tj ET Q q 0 0 0 rg BT 134.97 648.10 Td (fective for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.63 648.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.21 648.10 Td (. Upon adoption, the Company recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.01 648.10 Td ($507,908) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.51 648.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 636.10 Td (deferred financing costs, excluding costs related to the Company) Tj ET Q q 0 0 0 rg BT 311.87 636.10 Td (s revolving credit arrangement, as a direct reduction to notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 624.10 Td (payable on the consolidated balance sheet as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.59 624.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.18 624.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 600.10 Td (In June 2015, F) Tj ET Q q 0 0 0 rg BT 129.48 600.10 Td (ASB made technical corrections and improvements to provide clarification, correct unintended application ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 588.10 Td (of guidance, and make minor improvements to the Codification that are not expected to have a significant ef) Tj ET Q q 0 0 0 rg BT 483.01 588.10 Td (fect on current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 576.10 Td (accounting practice. ) Tj ET Q q 0 0 0 rg BT 135.33 576.10 Td (These amendments are ef) Tj ET Q q 0 0 0 rg BT 237.05 576.10 Td (fective for fiscal years, and interim periods within those years, beginning after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 564.10 Td (December 15, 2015 and early adoption is permitted. ) Tj ET Q q 0 0 0 rg BT 262.81 564.10 Td (The Company does not believe the adoption of this guidance will have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 552.10 Td (material impact on its financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 528.10 Td (In September 2015, F) Tj ET Q q 0 0 0 rg BT 153.91 528.10 Td (ASB issued new guidance that eliminates the requirement that an acquirer in a business combination ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 516.10 Td (account for measurement-period adjustments retrospectively) Tj ET Q q 0 0 0 rg BT 291.48 516.10 Td (. Instead, an acquirer will recognize a measurement-period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 504.10 Td (adjustment during the period in which it determines the amount of the adjustment. ) Tj ET Q q 0 0 0 rg BT 383.36 504.10 Td (This new guidance is ef) Tj ET Q q 0 0 0 rg BT 478.15 504.10 Td (fective for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 492.10 Td (years, and interim periods within those years, beginning after December 15, 2015 and early adoption is permitted. ) Tj ET Q q 0 0 0 rg BT 510.24 492.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 480.10 Td (Company does not expect this new guidance to have a material impact on its financial statements upon adoption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 456.10 Td (In January 2016, F) Tj ET Q q 0 0 0 rg BT 142.25 456.10 Td (ASB issued new guidance intended to improve the recognition and the measurement of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 444.10 Td (instruments. ) Tj ET Q q 0 0 0 rg BT 103.98 444.10 Td (The ) Tj ET Q q 0 0 0 rg BT 121.48 444.10 Td (ASU will require equity investments, excluding those investments accounted for under the equity method of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 432.10 Td (accounting or those that result in consolidation of the investee, to be measured at fair value with the changes in fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 420.10 Td (recognized in net income; will simplify the impairment assessment of those investments; will eliminate the disclosure of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 408.10 Td (method\(s\) and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 396.10 Td (change the fair value calculation for those investments; will change the disclosure in other comprehensive income for financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 384.10 Td (liabilities that are measured at fair value in accordance with the fair value options for financial instruments; and will clarify that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 372.10 Td (a deferred asset related to available-for) Tj ET Q q 0 0 0 rg BT 205.54 372.10 Td (-sale securities should be included in an entity's evaluation for a valuation allowance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 360.10 Td (This new guidance is ef) Tj ET Q q 0 0 0 rg BT 144.79 360.10 Td (fective for fiscal years, and interim periods within those years, beginning after December 15, 2017. ) Tj ET Q q 0 0 0 rg BT 546.14 360.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 348.10 Td (Company is currently assessing the impact the adoption of this guidance will have on its financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 324.10 Td (In February 2016, the F) Tj ET Q q 0 0 0 rg BT 161.96 324.10 Td (ASB issued an ) Tj ET Q q 0 0 0 rg BT 222.80 324.10 Td (ASU intended to improve financial reporting about leasing transactions. ) Tj ET Q q 0 0 0 rg BT 515.61 324.10 Td (The ) Tj ET Q q 0 0 0 rg BT 533.10 324.10 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 312.10 Td (will require companies that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 300.10 Td (created by those leases. ) Tj ET Q q 0 0 0 rg BT 148.67 300.10 Td (The accounting by companies that own the assets leased by the lessee \(the lessor\) will remain lar) Tj ET Q q 0 0 0 rg BT 535.59 300.10 Td (gely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 288.10 Td (unchanged from current GAAP) Tj ET Q q 0 0 0 rg BT 174.69 288.10 Td (. ) Tj ET Q q 0 0 0 rg BT 182.01 288.10 Td (The standard is ef) Tj ET Q q 0 0 0 rg BT 253.19 288.10 Td (fective for fiscal years beginning after December 15, 2018 and early ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 276.10 Td (adoption is permitted. ) Tj ET Q q 0 0 0 rg BT 142.30 276.10 Td (The Company is currently assessing the impact the adoption of this guidance will have on its financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 264.10 Td (statements.) Tj ET Q endstream endobj 145 0 obj <><><>] /Rotate 0 /Contents 146 0 R>> 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 /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (3. INVESTMENT) Tj ET Q q 0 0 0 rg BT 129.56 742.25 Td ( PROPER) Tj ET Q q 0 0 0 rg BT 172.81 742.25 Td (TY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.25 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 316.01 718.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.59 718.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.03 718.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.61 718.25 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 680.75 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 680.75 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 680.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 680.75 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 650.75 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 650.75 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 650.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 650.75 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 620.75 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 620.75 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 620.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 620.75 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 368.5 680.75 m 458.5 680.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 680.75 m 562.5 680.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 680.75 m 562.5 680.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 650.75 m 458.5 650.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 650.75 m 562.5 650.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 620.75 m 458.5 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 620.75 m 562.5 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 606.75 m 458.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 604.75 m 458.5 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 606.75 m 562.5 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 604.75 m 562.5 604.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 685.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.65 685.43 Td (December 31, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 476.65 685.43 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 670.42 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 171.05 674.95 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.00 670.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 670.42 Td (66,683,711) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.00 670.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.65 670.42 Td (14,170,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 655.42 Td (Less: accumulated depreciation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.30 655.47 Td (\(1,457,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.65 655.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 655.47 Td (\(14,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 655.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 640.42 Td (Buildings and improvements, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 640.42 Td (65,226,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.65 640.42 Td (14,155,421) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 625.42 Td (Land) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.65 625.42 Td (7,200,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 625.42 Td (7,200,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 610.42 Td (Investment property, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.00 610.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 610.42 Td (72,426,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.00 610.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.65 610.42 Td (21,355,421) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 587.05 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 587.05 Td (Included in buildings and improvements is approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.57 587.05 Td ($175,747) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.07 587.05 Td ( of construction-in-progress related to a planned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 575.05 Td (expansion at Bishop's Square.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 551.05 Td (In December 2014, the Company acquired 2819 Loker ) Tj ET Q q 0 0 0 rg BT 288.77 551.05 Td (A) Tj ET Q q 0 0 0 rg BT 295.25 551.05 Td (venue East, an industrial building, located in Carlsbad, California. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 539.05 Td (The net purchase price was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.34 539.05 Td ($25.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.23 539.05 Td (, exclusive of transaction costs and working capital reserves. ) Tj ET Q q 0 0 0 rg BT 462.19 539.05 Td (The building was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 527.05 Td (constructed in 1998 and consists of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.31 527.05 Td (161,310) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.81 527.05 Td ( square feet of rentable area that is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.74 527.05 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.07 527.05 Td ( leased to the ) Tj ET Q q 0 0 0 rg BT 443.50 527.05 Td (Acushnet Company) Tj ET Q q 0 0 0 rg BT 522.00 527.05 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 515.05 Td (parent company of ) Tj ET Q q 0 0 0 rg BT 127.29 515.05 Td (T) Tj ET Q q 0 0 0 rg BT 133.05 515.05 Td (itleist, FootJoy) Tj ET Q q 0 0 0 rg BT 191.85 515.05 Td (, BV) Tj ET Q q 0 0 0 rg BT 209.82 515.05 Td (-V) Tj ET Q q 0 0 0 rg BT 219.09 515.05 Td (okey Design, Scotty Cameron, Pinnacle, and the ) Tj ET Q q 0 0 0 rg BT 414.98 515.05 Td (T) Tj ET Q q 0 0 0 rg BT 420.73 515.05 Td (itleist Performance Institute, under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 503.05 Td (a lease that expires in July 2019. See ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 202.1826171875 501.7169921875 m 229.12109375 501.7169921875 l s q 0 0 1 rg BT 202.18 503.05 Td (Note 4) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 229.12 503.05 Td ( Recent ) Tj ET Q q 0 0 0 rg BT 273.83 503.05 Td (Acquisitions of Real Estate for additional information on 2819 Loker ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 491.05 Td (A) Tj ET Q q 0 0 0 rg BT 56.48 491.05 Td (venue East.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 467.05 Td (In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.83 467.05 Td (March 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.43 467.05 Td (, the Company acquired Bishop) Tj ET Q q 0 0 0 rg BT 256.57 467.05 Td (s Square, a Class ) Tj ET Q q 0 0 0 rg BT 326.29 467.05 Td (A) Tj ET Q q 0 0 0 rg BT 332.96 467.05 Td ( of) Tj ET Q q 0 0 0 rg BT 343.61 467.05 Td (fice building, located in the central business district of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 455.05 Td (Dublin, Ireland. ) Tj ET Q q 0 0 0 rg BT 118.41 455.05 Td (The net purchase price was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.75 455.05 Td (92.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.64 455.05 Td ( \(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.73 455.05 Td ($103.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.62 455.05 Td ( assuming a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.66 455.05 Td ($1.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.16 455.05 Td ( per EUR as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 443.05 Td (of the acquisition date\), exclusive of transaction costs and working capital reserves. ) Tj ET Q q 0 0 0 rg BT 388.88 443.05 Td (The building contains approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 431.05 Td (153,569) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 431.05 Td ( square feet of net rentable area and is currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.18 431.05 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.51 431.05 Td ( leased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.77 431.05 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.32 431.05 Td ( tenants. See ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 409.5849609375 429.7169921875 m 436.5234375 429.7169921875 l s q 0 0 1 rg BT 409.58 431.05 Td (Note 4) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 436.52 431.05 Td ( Recent ) Tj ET Q q 0 0 0 rg BT 481.24 431.05 Td (Acquisitions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 419.05 Td (Real Estate for additional information on Bishop) Tj ET Q q 0 0 0 rg BT 247.74 419.05 Td (s Square. See ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 306.337890625 417.7169921875 m 338.2763671875 417.7169921875 l s q 0 0 1 rg BT 306.34 419.05 Td (Note 13) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 338.28 419.05 Td ( Subsequent Events for information on an additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 407.05 Td (acquisition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 383.05 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 383.05 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 383.05 Td (, the cost basis and accumulated amortization related to lease intangibles are as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 315.55 262.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 315.55 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 315.55 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 315.55 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 315.55 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 315.55 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 285.55 262.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 285.55 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 285.55 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 285.55 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 285.55 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 285.55 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 312.5 345.54999999999995 m 402.5 345.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 345.54999999999995 m 406.5 345.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 345.54999999999995 m 482.5 345.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 345.54999999999995 m 486.5 345.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 345.54999999999995 m 562.5 345.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 315.54999999999995 m 402.5 315.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 315.54999999999995 m 482.5 315.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 315.54999999999995 m 562.5 315.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 285.54999999999995 m 402.5 285.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 285.54999999999995 m 482.5 285.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 285.54999999999995 m 562.5 285.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 271.54999999999995 m 402.5 271.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 269.54999999999995 m 402.5 269.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 271.54999999999995 m 482.5 271.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 269.54999999999995 m 482.5 269.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 271.54999999999995 m 562.5 271.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 269.54999999999995 m 562.5 269.54999999999995 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 350.22 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.60 350.23 Td (Lease Intangibles) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 335.22 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.80 320.23 Td (In-Place Leases) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.05 330.23 Td (Out-of-Market) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.45 320.23 Td (Lease ) Tj ET Q q 0 0 0 rg BT 443.84 320.23 Td (Assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.05 330.23 Td (Out-of-Market) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.10 320.23 Td (Lease Liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 320.22 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 305.22 Td (Cost) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 305.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.65 305.22 Td (54,447,775) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 305.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 305.22 Td (414,428) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 305.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.30 305.27 Td (\(2,815,011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 305.22 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 290.22 Td (Less: accumulated amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.30 290.27 Td (\(2,664,151) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 290.22 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 290.27 Td (\(45,575) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 290.22 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 290.22 Td (344,905) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 275.22 Td (Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 275.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.65 275.22 Td (51,783,624) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 275.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 275.22 Td (368,853) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 275.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.30 275.27 Td (\(2,470,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 275.22 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 247.05 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 247.05 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 247.05 Td (, the cost basis and accumulated amortization related to lease intangibles were as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 179.55 262.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 179.55 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 179.55 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 179.55 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 179.55 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 179.55 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 149.55 262.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 149.55 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 149.55 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 149.55 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 149.55 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 149.55 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 312.5 209.54999999999995 m 402.5 209.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 209.54999999999995 m 406.5 209.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 209.54999999999995 m 482.5 209.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 209.54999999999995 m 486.5 209.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 209.54999999999995 m 562.5 209.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 179.54999999999995 m 402.5 179.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 179.54999999999995 m 482.5 179.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 179.54999999999995 m 562.5 179.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 149.54999999999995 m 402.5 149.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 149.54999999999995 m 482.5 149.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 149.54999999999995 m 562.5 149.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 135.54999999999995 m 402.5 135.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 133.54999999999995 m 402.5 133.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 135.54999999999995 m 482.5 135.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 133.54999999999995 m 482.5 133.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 135.54999999999995 m 562.5 135.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 133.54999999999995 m 562.5 133.54999999999995 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 214.22 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.60 214.23 Td (Lease Intangibles) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 199.22 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.80 184.23 Td (In-Place Leases) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.05 194.23 Td (Out-of-Market) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.45 184.23 Td (Lease ) Tj ET Q q 0 0 0 rg BT 443.84 184.23 Td (Assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.05 194.23 Td (Out-of-Market) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.10 184.23 Td (Lease Liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 184.22 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 169.22 Td (Cost) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 169.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.65 169.22 Td (3,980,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 169.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 169.22 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 169.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 169.22 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 154.22 Td (Less: accumulated amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.80 154.27 Td (\(34,709) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 154.22 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 154.22 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 154.22 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 139.22 Td (Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 139.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.65 139.22 Td (3,945,291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 139.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 139.22 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 139.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 139.22 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 111.05 Td (Amortization expense of in-place leases was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.49 111.05 Td ($2.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.38 111.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.82 111.05 Td ($34,709) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.32 111.05 Td ( for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.67 111.05 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.25 111.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.69 111.05 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.69 111.05 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 99.05 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 99.05 Td (. Net amortization of out-of-market leases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.38 99.05 Td (resulted in an increase to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.78 99.05 Td ( rental revenue of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.52 99.05 Td ($312,183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.02 99.05 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.40 99.05 Td (year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.98 99.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 87.05 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 87.05 Td (. ) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (Anticipated amortization of the Company) Tj ET Q q 0 0 0 rg BT 237.40 742.10 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 477.29 742.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.29 742.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.58 730.10 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 730.10 Td ( are as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 683.60 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 683.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 683.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 683.60 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 653.60 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 653.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 653.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 653.60 76.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 623.60 342.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 623.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 623.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 623.60 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 392.5 683.6 m 482.5 683.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 683.6 m 562.5 683.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.75 688.28 Td (In-Place Lease) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.05 698.28 Td (Out-of-Market) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 499.80 688.28 Td (Leases, Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 673.27 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 673.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 673.27 Td (2,951,907) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 673.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.80 673.32 Td (\(318,542) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 673.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 658.27 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 658.27 Td (2,725,642) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.80 658.32 Td (\(262,445) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 658.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 643.27 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 643.27 Td (2,337,655) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.80 643.32 Td (\(165,918) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 643.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 628.27 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 628.27 Td (1,978,692) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.80 628.32 Td (\(165,918) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 628.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 613.27 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 613.27 Td (1,476,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.80 613.32 Td (\(165,918) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 613.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 585.10 Td (Leases) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 561.10 Td (The Company has entered into non-cancelable lease agreements with tenants for space. ) Tj ET Q q 0 0 0 rg BT 421.20 561.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.64 561.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.23 561.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 549.10 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 394.87 549.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.87 549.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.98 549.10 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.98 549.10 Td ( and thereafter are as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 537.10 Td (follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 490.60 422.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 490.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 460.60 422.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 460.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 430.60 422.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 430.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 400.60 422.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 400.60 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 472.5 490.6 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 472.5 400.6 m 562.5 400.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 386.6 m 562.5 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 384.6 m 562.5 384.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 495.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.15 505.28 Td (Fixed Future) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.25 495.28 Td (Minimum Rentals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 480.27 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.00 480.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 480.27 Td (8,005,939) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 465.27 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 465.27 Td (8,274,299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 450.27 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 450.27 Td (7,985,887) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 435.27 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 435.27 Td (7,250,842) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 420.27 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 420.27 Td (6,103,924) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 405.27 Td (Thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.65 405.27 Td (37,254,456) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 390.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.00 390.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.65 390.27 Td (74,875,347) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 362.10 Td (Of the Company) Tj ET Q q 0 0 0 rg BT 137.43 362.10 Td (s total rental revenue for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.38 362.10 Td (year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.97 362.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.47 362.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.05 362.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.31 362.10 Td (44%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.64 362.10 Td ( was earned from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (Commissioner of Public ) Tj ET Q q 0 0 0 rg BT 149.54 350.10 Td (W) Tj ET Q q 0 0 0 rg BT 158.18 350.10 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 441.41 350.10 Td (26%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.74 350.10 Td ( was earned from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (Acushnet, a tenant in the manufacturing industry) Tj ET Q q 0 0 0 rg BT 244.58 338.10 Td (, whose lease expires in 2019, and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.96 338.10 Td (15%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.29 338.10 Td ( was earned from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (International Financial Data Services, an investor record-keeping and transfer agency provider) Tj ET Q q 0 0 0 rg BT 427.50 326.10 Td (, whose lease expires in 2024.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 302.10 Td (4. RECENT) Tj ET Q q 0 0 0 rg BT 103.99 302.10 Td ( ) Tj ET Q q 0 0 0 rg BT 105.94 302.10 Td (ACQUISITIONS OF) Tj ET Q q 0 0 0 rg BT 195.87 302.10 Td ( REAL) Tj ET Q q 0 0 0 rg BT 225.60 302.10 Td ( EST) Tj ET Q q 0 0 0 rg BT 246.26 302.10 Td (A) Tj ET Q q 0 0 0 rg BT 252.74 302.10 Td (TE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 278.10 Td (The amounts recognized for major assets acquired as of the acquisition date were determined by allocating the purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (price of each property acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.71 266.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.71 266.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.15 266.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.15 266.10 Td ( as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 200.60 125.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.50 200.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 179.50 200.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.50 200.60 12.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.50 200.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 200.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 200.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 200.60 13.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 200.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 200.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 200.60 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 200.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 200.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 158.60 125.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.50 158.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 179.50 158.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.50 158.60 12.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.50 158.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 158.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 158.60 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 158.60 13.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 158.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 158.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 158.60 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 158.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 158.60 59.00 -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 50.5 214.60000000000002 m 175.5 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 179.5 214.60000000000002 m 227.5 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 214.60000000000002 m 305.5 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 214.60000000000002 m 356.5 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 214.60000000000002 m 424.5 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 214.60000000000002 m 499.5 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 214.60000000000002 m 562.5 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 200.60000000000002 m 175.5 200.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 158.60000000000002 m 175.5 158.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 86.25 218.83 Td (Property Name) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 183.40 226.83 Td (Acquisition) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 195.00 218.83 Td (Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.85 226.83 Td (Building and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 243.50 218.83 Td (Impr) Tj ET Q q 0 0 0 rg BT 261.13 218.83 Td (ovements) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 293.13 222.46 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 319.70 218.83 Td (Land) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 337.93 222.46 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 234.83 Td (In-place) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.70 226.83 Td (Lease) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.70 218.83 Td (Intangibles) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 411.93 222.46 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.80 234.83 Td (Out-of-) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.80 226.83 Td (Market Lease) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.70 218.83 Td (Intangibles, Net) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 486.93 222.46 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.05 218.83 Td (T) Tj ET Q q 0 0 0 rg BT 524.65 218.83 Td (otal) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 537.54 222.46 Td ( \(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 103.50 205.05 Td (2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 191.06 Td (Bishops Square) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 186.95 191.06 Td (3/3/2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 242.00 191.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 261.50 191.06 Td (53,643,075) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.00 191.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.00 191.06 Td () Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 359.00 195.70 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 372.00 191.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 380.50 191.06 Td (51,994,603) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.00 191.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.00 191.06 Td (\(2,478,077) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.00 191.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 191.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 514.00 191.06 Td (103,159,601) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 103.50 163.05 Td (2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 149.06 Td (2819 Loker Avenue East) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 182.45 149.06 Td (12/17/2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 242.00 149.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 261.50 149.06 Td (14,170,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.00 149.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 317.00 149.06 Td (7,200,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 372.00 149.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 385.00 149.06 Td (3,980,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.00 149.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.00 149.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 149.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.50 149.06 Td (25,350,000) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 125.90 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 125.90 Td (For acquisitions denominated in a foreign currency) Tj ET Q q 0 0 0 rg BT 271.74 125.90 Td (, amounts have been translated at an exchange rate based on the rate in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 113.90 Td (ef) Tj ET Q q 0 0 0 rg BT 75.59 113.90 Td (fect on the acquisition date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 89.90 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 89.90 Td (The land at Bishop) Tj ET Q q 0 0 0 rg BT 146.60 89.90 Td (s Square is subject to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.47 89.90 Td (999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.47 89.90 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 77.90 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 77.90 Td ($33.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.29 77.90 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 65.90 Td (will be amortized over the remaining term of the ground lease.) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 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 522.29 742.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.29 742.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 730.10 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 49.50 669.60 115.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 164.50 669.60 11.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.50 669.60 122.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 669.60 10.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 669.60 122.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 669.60 10.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 669.60 122.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 625.60 115.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 164.50 625.60 11.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.50 625.60 122.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 625.60 10.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 625.60 122.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 625.60 10.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 625.60 122.00 -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 175.5 683.6 m 297.5 683.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 683.6 m 429.5 683.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 683.6 m 561.5 683.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 669.6 m 164.5 669.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 683.6 m 429.5 683.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 625.6 m 164.5 625.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 202.80 688.28 Td (In-Place Leases) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.15 698.28 Td (Above-Market Lease) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 354.65 688.28 Td (Assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.70 698.28 Td (Below-Market Lease) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.60 688.28 Td (Liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 674.28 Td (2015 Acquisition:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 659.27 Td (Bishop) Tj ET Q q 0 0 0 rg BT 83.12 659.27 Td (s Square) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 117.28 663.80 Td ( \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.25 659.27 Td (10.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.75 659.27 Td (7.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.75 659.27 Td (8.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 630.28 Td (2014 Acquisition:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 615.27 Td (2819 Loker Avenue East) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.75 615.27 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 615.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.00 615.27 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 591.90 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 591.90 Td (Excludes the ef) Tj ET Q q 0 0 0 rg BT 129.46 591.90 Td (fect of the ground lease, which significantly increases the weighted average useful life for these intangibles.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 567.90 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 514.54 567.90 Td (year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 555.90 Td (December 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 555.90 Td (, which are included in the Company) Tj ET Q q 0 0 0 rg BT 278.82 555.90 Td (s consolidated statements of operations and comprehensive income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 543.90 Td (\(loss\) for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.60 543.90 Td (year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.18 543.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.68 543.90 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.27 543.90 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 492.40 230.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 492.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 492.40 160.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 492.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 492.40 114.00 -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 50.5 492.4 m 280.5 492.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 492.4 m 562.5 492.4 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.25 512.08 Td (For the Year Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 497.08 Td (2015 Acquisitions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 497.07 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.65 497.08 Td (December 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 482.07 Td (Bishops Square) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 482.07 Td (Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 482.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 482.07 Td (6,998,532) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 467.08 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 467.07 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 467.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.30 467.12 Td (\(1,625,667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 467.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 438.90 Td (The following unaudited consolidated information is presented to give ef) Tj ET Q q 0 0 0 rg BT 359.69 438.90 Td (fect to the acquisition completed during the year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 426.90 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.38 426.90 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.96 426.90 Td ( as if the acquisition had occurred on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.91 426.90 Td (January1, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.51 426.90 Td (. ) Tj ET Q q 0 0 0 rg BT 375.83 426.90 Td (The pro forma net income \(loss\) was adjusted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 414.90 Td (to exclude acquisition-related fees and expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.75 414.90 Td ($5.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.64 414.90 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.02 414.90 Td (year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.60 414.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.10 414.90 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.69 414.90 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.30 414.90 Td (year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 402.90 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 402.90 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 450.72 402.90 Td ($4.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.61 402.90 Td (, relating to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 390.90 Td (2015 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 333.79 390.90 Td (January1, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.39 390.90 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 366.90 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 50.00 354.90 Td (Company completed this acquisition on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.37 354.90 Td (January1, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.97 354.90 Td (, nor does it purport to represent the Company) Tj ET Q q 0 0 0 rg BT 462.43 354.90 Td (s future operations:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 289.40 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 289.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 289.40 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 289.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 289.40 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 259.40 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 259.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 259.40 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 259.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 259.40 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 229.40 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 229.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 229.40 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 229.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 229.40 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 199.40 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 199.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 199.40 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 199.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 199.40 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 400.5 289.4 m 479.5 289.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 289.4 m 562.5 289.4 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.25 323.08 Td (For the Years Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.90 309.08 Td (December 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 294.07 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.85 294.08 Td (Pro Forma 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.85 294.08 Td (Pro Forma 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 279.07 Td (Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 279.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 279.07 Td (10,814,986) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 279.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 279.07 Td (8,497,170) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 264.11 Td (Class A Common Stock:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 249.07 Td (Net income \(loss\) attributable to stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 249.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.80 249.12 Td (\(938,262) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 249.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 249.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.30 249.12 Td (\(4,991,310) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 249.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 234.07 Td (Basic and diluted income \(loss\) per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 234.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.80 234.12 Td (\(0.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 234.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 234.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 234.12 Td (\(38.72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 234.07 Td (\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 219.11 Td (Class T Common Stock:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 204.07 Td (Net income \(loss\) attributable to stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 204.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.80 204.12 Td (\(1,066) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 204.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 204.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 204.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 189.07 Td (Basic and diluted income \(loss\) per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 189.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.65 189.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 189.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 189.07 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 160.90 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 514.54 160.90 Td (year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.90 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 148.90 Td (, which are included in the Company) Tj ET Q q 0 0 0 rg BT 278.82 148.90 Td (s consolidated statements of operations and comprehensive income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 136.90 Td (\(loss\) for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.60 136.90 Td (year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.18 136.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.68 136.90 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.27 136.90 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 85.40 230.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 85.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 85.40 160.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 85.40 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 85.40 114.00 -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 85.39999999999998 m 280.5 85.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 85.39999999999998 m 562.5 85.39999999999998 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.25 105.08 Td (For the Year Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 90.08 Td (2014 Acquisitions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 90.07 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.65 90.08 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 75.07 Td (2819 Loker Avenue East) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 75.07 Td (Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 75.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 75.07 Td (94,327) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 60.08 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 60.07 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 60.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 60.12 Td (\(79,660) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 60.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET 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 /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 acquisition 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, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.96 718.10 Td ( as if the acquisition occurred on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.97 718.10 Td (July31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.14 718.10 Td ( \(date of inception\). ) Tj ET Q q 0 0 0 rg BT 425.82 718.10 Td (The pro forma net loss was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (adjusted to exclude acquisition-related expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.04 706.10 Td ($698,829) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.54 706.10 Td ( for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.00 706.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.58 706.10 Td (. For the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (inception through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.32 694.10 Td (December31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.90 694.10 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 524.04 694.10 Td ($698,829) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.54 694.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (relating to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.04 682.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.04 682.10 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 391.83 682.10 Td (July31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.00 682.10 Td ( \(date of inception\). ) Tj ET Q q 0 0 0 rg BT 529.68 682.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (information below is not necessarily indicative of what the actual results of operations would have been had we completed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (these transactions on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.81 658.10 Td (July31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.98 658.10 Td (, nor does it purport to represent our future operations:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 601.60 266.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.50 601.60 93.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 601.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 601.60 149.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 571.60 266.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.50 571.60 93.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 571.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 571.60 149.00 -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 316.5 601.6 m 409.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 601.6 m 562.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 601.6 m 409.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 601.6 m 562.5 601.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 606.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.85 606.28 Td (Pro Forma 2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.50 626.28 Td (Pro Forma for the Period from) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.40 616.28 Td (July 31, 2013 \(date of inception\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.80 606.28 Td (through December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 591.27 Td (Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.00 591.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 591.27 Td (2,295,290) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.00 591.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 591.27 Td (955,847) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 576.27 Td (Net income \(loss\) attributable to Class A stockholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.00 576.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.80 576.32 Td (\(566,958) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 576.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.00 576.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.80 576.32 Td (\(795,192) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 576.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 561.27 Td (Basic and diluted income \(loss\) per Class A common share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.00 561.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.80 561.32 Td (\(4.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 561.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.00 561.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.80 561.32 Td (\(6.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 561.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 533.10 Td (5. DEBT) Tj ET Q q 0 0 0 rg BT 89.55 533.10 Td ( FINANCING) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 509.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 509.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 509.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.47 509.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.47 509.10 Td (, the Company had approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.77 509.10 Td ($60.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.66 509.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.10 509.10 Td ($24.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.99 509.10 Td ( of debt outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 497.10 Td (with a weighted average interest rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.21 497.10 Td (1.30%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.04 497.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.47 497.10 Td (2.16%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.30 497.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 333.96 497.10 Td (. ) Tj ET Q q 0 0 0 rg BT 341.28 497.10 Td (The following table describes the Company) Tj ET Q q 0 0 0 rg BT 518.74 497.10 Td (s debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 485.10 Td (outstanding at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.88 485.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.47 485.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.90 485.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.90 485.10 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 417.60 94.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 144.50 417.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 148.50 417.60 53.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 201.50 417.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 205.50 417.60 38.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 243.50 417.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.50 417.60 43.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 290.50 417.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 417.60 62.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 417.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.50 417.60 65.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 417.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 417.60 65.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 417.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 417.60 64.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 393.60 94.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 144.50 393.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 148.50 393.60 53.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 201.50 393.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 205.50 393.60 38.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 243.50 393.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.50 393.60 43.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 290.50 393.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 393.60 62.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 393.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.50 393.60 65.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 393.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 393.60 65.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 393.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 393.60 64.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 369.60 151.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 201.50 369.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 205.50 369.60 38.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 243.50 369.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.50 369.60 43.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 290.50 369.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 369.60 62.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 369.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.50 369.60 65.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 369.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 369.60 65.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 369.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 369.60 64.00 -12.00 re f /GS0 gs 1 1 1 rg /GS0 gs 50.50 357.60 151.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 345.60 151.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 201.50 345.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 205.50 345.60 38.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 243.50 345.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.50 345.60 43.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 290.50 345.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 345.60 62.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 345.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.50 345.60 65.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 345.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 345.60 65.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 345.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 345.60 64.00 -12.00 re f /GS0 gs 1 1 1 rg /GS0 gs 50.50 333.60 151.00 -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 50.5 429.6 m 144.5 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 148.5 429.6 m 201.5 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 205.5 429.6 m 243.5 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247.5 429.6 m 290.5 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 429.6 m 356.5 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 429.6 m 425.5 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 429.6 m 494.5 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 429.6 m 562.5 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 405.6 m 494.5 405.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 393.6 m 494.5 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 405.6 m 562.5 405.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 393.6 m 562.5 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 369.6 m 494.5 369.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 369.6 m 562.5 369.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 369.6 m 494.5 369.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 357.6 m 494.5 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 369.6 m 562.5 369.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 357.6 m 562.5 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 333.6 m 494.5 333.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 322.6 m 494.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 320.6 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 498.5 333.6 m 562.5 333.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 322.6 m 562.5 322.6 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 BT /F2 7.00 Tf ET q 0 0 0 rg BT 53.00 433.66 Td (Description) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 152.85 447.66 Td (Origination or) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 156.60 440.66 Td (Assumption) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 167.50 433.66 Td (Date) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 210.35 440.66 Td (Maturity) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 217.00 433.66 Td (Date) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 252.90 454.66 Td (Maximum) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 251.25 447.66 Td (Capacity in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 252.35 440.66 Td (Functional) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 254.15 433.66 Td (Currency) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 305.50 440.66 Td (Interest Rate) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 307.65 433.66 Td (Description) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 365.25 440.66 Td (Interest Rate as of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 364.25 433.66 Td (December 31, 2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 428.00 433.66 Td () Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 447.65 447.66 Td (Principal) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 439.00 440.66 Td (Outstanding at) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 433.25 433.66 Td (December 31, 2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 516.15 447.66 Td (Principal) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 507.50 440.66 Td (Outstanding at) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 501.75 433.66 Td (December 31, 2014) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 53.00 421.66 Td (Secured Mortgage Debt) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 198.00 421.65 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 208.00 421.65 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 363.00 421.65 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 428.00 421.65 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 432.00 421.65 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.00 421.65 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 409.65 Td (Bishops Square) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 162.05 409.65 Td (3/3/2015) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 211.55 409.65 Td (3/2/2022) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 250.00 409.65 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 256.10 409.65 Td (55,200,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 298.00 409.65 Td (Euribor + 1.30% ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 346.66 412.82 Td (\(1\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 383.45 409.65 Td (1.30%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 432.00 409.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 460.15 409.65 Td (60,201,120) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.00 409.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 409.65 Td () Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 59.00 397.66 Td (Note Payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 224.00 397.65 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 392.50 397.65 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 432.00 397.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 460.15 397.65 Td (60,201,120) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.00 397.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 397.65 Td () Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 53.00 385.66 Td (Affiliate Note Payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 373.65 Td (Credit Facility with Hines) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 158.55 373.65 Td (12/15/2014) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 208.05 373.65 Td (12/15/2016) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 250.00 373.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 256.10 373.65 Td (75,000,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 313.30 373.65 Td (Variable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 385.75 373.65 Td ( N/A) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 484.65 373.65 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 528.15 373.65 Td (24,200,000) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 59.00 361.66 Td (Total Note Payable to Affiliate) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 432.00 361.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 484.65 361.65 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.00 361.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 528.15 361.65 Td (24,200,000) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 59.00 349.66 Td (Total Principal Outstanding) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 432.00 349.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 460.15 349.65 Td (60,201,120) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.00 349.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 528.15 349.65 Td (24,200,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 337.65 Td (Unamortized Deferred Financing Fees) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 466.55 337.70 Td (\(507,908) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 491.65 337.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 337.65 Td () Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 59.00 325.66 Td (Total) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 432.00 325.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 460.15 325.65 Td (59,693,212) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.00 325.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 528.15 325.65 Td (24,200,000) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.90 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 302.90 Td (The Company entered into an interest rate cap agreement as an economic hedge against the variability of future interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 290.90 Td (rates on this borrowing. See Note 6 Derivative Instruments for additional information regarding the Company) Tj ET Q q 0 0 0 rg BT 524.84 290.90 Td (s interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 278.90 Td (rate cap.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 254.90 Td (Bishop) Tj ET Q q 0 0 0 rg BT 97.82 254.90 Td (s Squar) Tj ET Q q 0 0 0 rg BT 127.73 254.90 Td (e Facility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 230.90 Td (In connection with the acquisition of Bishop) Tj ET Q q 0 0 0 rg BT 248.53 230.90 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 50.00 218.90 Td (facility agreement \(the Bishop) Tj ET Q q 0 0 0 rg BT 178.56 218.90 Td (s Square Facility\) with DekaBank Deutsche Girozentrale totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.26 218.90 Td (55.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 218.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.90 Td (\(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.59 206.90 Td ($62.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.48 206.90 Td ( assuming a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.51 206.90 Td ($1.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.01 206.90 Td ( per EUR as of the transaction date\). ) Tj ET Q q 0 0 0 rg BT 418.33 206.90 Td (The Bishop) Tj ET Q q 0 0 0 rg BT 467.50 206.90 Td (s Square Facility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.90 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 50.00 182.90 Td (Bishop) Tj ET Q q 0 0 0 rg BT 81.12 182.90 Td (s Square Facility on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.33 182.90 Td (March2, 2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.93 182.90 Td (. ) Tj ET Q q 0 0 0 rg BT 229.25 182.90 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 529.33 182.90 Td (1.30%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.16 182.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.90 Td (and 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 275.20 170.90 Td (2.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.03 170.90 Td (. ) Tj ET Q q 0 0 0 rg BT 303.34 170.90 Td (The Bishop) Tj ET Q q 0 0 0 rg BT 352.51 170.90 Td (s Square Facility may be repaid in full prior to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.90 Td (maturity) Tj ET Q q 0 0 0 rg BT 83.23 158.90 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 321.50 158.90 Td (three years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.09 158.90 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 134.90 Td (Hines Cr) Tj ET Q q 0 0 0 rg BT 104.02 134.90 Td (edit Facility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 122.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 110.90 Td (OnDecember 15, 2014, Hines Global II entered into an uncommitted loan agreement with Hines with a maximum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.90 Td (principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.37 98.90 Td ($75.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.26 98.90 Td ( \(the Hines Credit Facility\). Interest on each advance is char) Tj ET Q q 0 0 0 rg BT 436.64 98.90 Td (ged monthly at a variable rate, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.90 Td (which is \(i\) Hines) Tj ET Q q 0 0 0 rg BT 123.96 86.90 Td ( then-current borrowing rate under its revolving credit facility and \(ii\) if Hines Global II enters into a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.90 Td (revolving credit facility through the Operating Partnership, the rate under such facility) Tj ET Q q 0 0 0 rg BT 394.24 74.90 Td (. Each advance under the loan agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.90 Td (must be repaid within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.43 62.90 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.10 62.90 Td ( months, subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.15 62.90 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.59 62.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.09 62.90 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.76 62.90 Td (-month extension at the option of Hines Global II and subject to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.90 Td (satisfaction of certain conditions. Notwithstanding that each advance under the Hines Credit Facility matures six months after ) Tj ET Q endstream endobj 153 0 obj <>] /Rotate 0 /Contents 154 0 R>> 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 /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (it is made, Hines Global II is required to repay each advance under the Hines Credit Facility with proceeds from its public ) 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 as such proceeds are raised, unless Hines Global II, through the Operating Partnership, enters into a revolving credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (facility \(the OP) Tj ET Q q 0 0 0 rg BT 115.72 718.10 Td ( Facility\), at which point Hines Global II may use such proceeds from its public of) Tj ET Q q 0 0 0 rg BT 449.90 718.10 Td (fering to repay the OP) Tj ET Q q 0 0 0 rg BT 538.39 718.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Facility) Tj ET Q q 0 0 0 rg BT 79.90 706.10 Td (, if any) Tj ET Q q 0 0 0 rg BT 107.30 706.10 Td (, prior to repaying any advances under its credit facility with Hines. ) Tj ET Q q 0 0 0 rg BT 382.31 706.10 Td (The Hines Credit Facility also permits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (voluntary prepayment of principal and accrued interest. ) Tj ET Q q 0 0 0 rg BT 274.17 694.10 Td (The loan agreement will terminate on the earlier of a\) the termination ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (of the availability period as determined by Hines at its discretion \(which will not impact the maturity date of any outstanding or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (previously approved advance under the loan agreement\); b\) December 15, 2016; and c\) the date Hines accelerates the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 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 68.00 634.10 Td (For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.19 634.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.78 634.10 Td (, the Company made draws of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.25 634.10 Td ($50.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.14 634.10 Td ( and payments of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.49 634.10 Td ($74.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 622.10 Td ( under the Hines Credit Facility) Tj ET Q q 0 0 0 rg BT 204.60 622.10 Td (. ) Tj ET Q q 0 0 0 rg BT 214.05 622.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 263.96 622.10 Td (, from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.89 622.10 Td (January 1,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.99 622.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.49 622.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.49 622.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.60 622.10 Td (March24, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.20 622.10 Td (, the Company made ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (draws and repayments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.74 610.10 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.64 610.10 Td ( under the Hines Credit Facility) Tj ET Q q 0 0 0 rg BT 327.35 610.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 586.10 Td (Financial Covenants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 562.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 127.71 562.10 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 50.00 550.10 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 50.00 538.10 Td (including limitations on liens and indebtedness and maintenance of certain financial ratios. ) Tj ET Q q 0 0 0 rg BT 418.05 538.10 Td (The Company is not aware of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (instances of noncompliance with financial covenants as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.48 526.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.06 526.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 502.10 Td (Principal Payments on Debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 478.10 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 50.00 466.10 Td (ending December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.30 466.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.30 466.10 Td ( through December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.99 466.10 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.99 466.10 Td ( and for the period thereafter) Tj ET Q q 0 0 0 rg BT 387.10 466.10 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 414.60 97.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 147.50 414.60 118.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 414.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 414.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 414.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.50 414.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 414.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 414.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 414.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 414.60 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 414.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 414.60 60.00 -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 147.5 428.6 m 265.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 428.6 m 269.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 428.6 m 327.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 428.6 m 331.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331.5 428.6 m 384.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 428.6 m 388.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 428.6 m 441.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 428.6 m 445.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 428.6 m 498.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 428.6 m 502.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 428.6 m 562.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147.5 414.6 m 265.5 414.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 414.6 m 327.5 414.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331.5 414.6 m 384.5 414.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 414.6 m 441.5 414.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 414.6 m 498.5 414.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 414.6 m 562.5 414.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 433.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 306.30 433.28 Td (Payments Due by Year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 419.28 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.00 419.28 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 288.00 419.28 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.50 419.28 Td (2018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.50 419.28 Td (2019) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.50 419.28 Td (2020) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 509.10 419.28 Td (Thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 404.27 Td (Principal payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.00 404.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.65 404.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 404.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.65 404.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.00 404.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 404.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.00 404.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.65 404.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.00 404.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 404.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.00 404.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.60 404.27 Td (60,201,120) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 376.10 Td (6. DERIV) Tj ET Q q 0 0 0 rg BT 92.94 376.10 Td (A) Tj ET Q q 0 0 0 rg BT 99.42 376.10 Td (TIVE INSTRUMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 352.10 Td (The Company entered into an interest rate cap agreement with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.07 352.10 Td (Chatham Financial Corporation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.71 352.10 Td ( in connection with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (Bishop) Tj ET Q q 0 0 0 rg BT 80.62 340.10 Td (s Square Facility) Tj ET Q q 0 0 0 rg BT 147.18 340.10 Td (. ) Tj ET Q q 0 0 0 rg BT 154.50 340.10 Td (The interest rate cap agreement was entered into as an economic hedge against the variability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.10 Td (future interest rates on one of its variable interest rate borrowings.) Tj ET Q q 0 0 0 rg BT 318.40 328.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 378.11 328.10 Td (s interest rate cap contract has economically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 316.10 Td (limited the interest rate on the loan to which it relates.) Tj ET Q q 0 0 0 rg BT 270.09 316.10 Td (The Company has not designated this derivative as a hedge for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.10 Td (accounting purposes. See ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 155.8623046875 302.7669921875 m 185.30078125 302.7669921875 l s q 0 0 1 rg BT 155.86 304.10 Td (Note 9 ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 185.30 304.10 Td ( Fair ) Tj ET Q q 0 0 0 rg BT 216.23 304.10 Td (V) Tj ET Q q 0 0 0 rg BT 222.34 304.10 Td (alue Measurements for additional information regarding the fair value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 292.10 Td (s interest rate contract.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 268.10 Td (The table below provides additional information regarding the Company) Tj ET Q q 0 0 0 rg BT 360.76 268.10 Td (s interest rate contract.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 206.60 88.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 138.00 206.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 142.00 206.60 103.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.00 206.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.00 206.60 103.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.00 206.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 206.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 206.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 206.60 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 206.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 206.60 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 50 230.60000000000002 m 138 230.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 138 230.60000000000002 m 142 230.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 142 230.60000000000002 m 245 230.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 206.60000000000002 m 138 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 142 206.60000000000002 m 245 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 206.60000000000002 m 352 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 206.60000000000002 m 414 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 206.60000000000002 m 501 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 206.60000000000002 m 563 206.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 235.28 Td (Interest Rate Contracts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 251.50 235.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.50 235.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.50 235.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 235.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 211.28 Td (Type) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 162.85 211.28 Td (Effective Date) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 211.28 Td (Expiration Date) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.15 221.28 Td (Notional ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.95 211.28 Td (Amount ) Tj ET Q BT /F2 10.00 Tf ET BT /F2 6.50 Tf ET q 0 0 0 rg BT 399.45 215.81 Td (\(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 221.28 Td (Interest Rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.80 211.28 Td (Received) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 511.55 221.28 Td (Pay Rate /) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 509.20 211.28 Td (Strike Rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 196.27 Td (Interest rate cap) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.70 196.27 Td (March 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.65 196.27 Td (April 25, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.50 196.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.10 196.27 Td (60,201,120) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.05 196.27 Td (EURIBOR) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 196.27 Td (2.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 196.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.90 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 172.90 Td (For notional amounts denominated in a foreign currency) Tj ET Q q 0 0 0 rg BT 292.62 172.90 Td (, amounts have been translated at a rate based on the rate in ef) Tj ET Q q 0 0 0 rg BT 540.11 172.90 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 160.90 Td (on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.00 160.90 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.58 160.90 Td (.) 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 31.60 Td (75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 742.10 Td (The Company has not entered into a master netting arrangement with its third-party counterparty and does not of) Tj ET Q q 0 0 0 rg BT 518.58 742.10 Td (fset on its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (consolidated balance sheets the fair value amount recorded for its derivative instrument. ) Tj ET Q q 0 0 0 rg BT 406.41 730.10 Td (The table below presents the fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (of the Company) Tj ET Q q 0 0 0 rg BT 116.71 718.10 Td (s derivative instrument included in AssetsDerivative Instruments on the Company) Tj ET Q q 0 0 0 rg BT 466.36 718.10 Td (s consolidated balance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (sheets, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.60 706.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.18 706.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.62 706.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.21 706.10 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 640.60 317.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 640.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 640.60 94.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 640.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 640.60 94.00 -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 370 669.6 m 464 669.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 669.6 m 562 669.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 655.6 m 464 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 669.6 m 468 669.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 655.6 m 562 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 625.6 m 464 625.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 611.6 m 464 611.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 609.6 m 464 609.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 625.6 m 562 625.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 611.6 m 562 611.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 609.6 m 562 609.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 51.50 672.32 Td () Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 368.50 672.32 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.95 674.28 Td (Derivative Assets) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 51.50 658.32 Td () Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 368.50 658.32 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.15 660.28 Td (December 31, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.15 660.28 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 645.27 Td (Derivatives not designated as hedging instruments:) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 368.50 643.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 630.27 Td ( Interest rate cap) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.50 630.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 630.27 Td (6,344) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 630.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 630.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 615.27 Td (Total derivatives) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 368.50 613.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.50 615.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 615.27 Td (6,344) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 615.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 615.27 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 587.10 Td (The table below presents the ef) Tj ET Q q 0 0 0 rg BT 191.99 587.10 Td (fects of the changes in fair value of the Company) Tj ET Q q 0 0 0 rg BT 391.65 587.10 Td (s derivative instrument in the Company) Tj ET Q q 0 0 0 rg BT 552.45 587.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (consolidated statements of operations and comprehensive income \(loss\) for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.74 575.10 Td (year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.33 575.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.83 575.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.41 575.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.85 575.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.85 575.10 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 495.60 289.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 495.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 495.60 108.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 495.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 495.60 108.00 -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 343 538.6 m 451 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451 538.6 m 455 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 538.6 m 563 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 524.6 m 451 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451 524.6 m 455 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 524.6 m 563 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 510.6 m 451 510.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 510.6 m 563 510.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 480.6 m 451 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 466.6 m 451 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 464.6 m 451 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 480.6 m 563 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 466.6 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 455 464.6 m 563 464.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.45 543.28 Td (Gain \(Loss\) Recorded on Derivative Instruments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 427.40 529.28 Td (Year Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 52.50 513.32 Td () Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 341.50 513.32 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 356.15 515.28 Td (December 31, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 453.50 515.28 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.15 515.28 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 500.27 Td (Derivatives not designated as hedging instruments:) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 341.50 498.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 453.50 498.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 485.27 Td ( Interest rate cap) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 485.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.30 485.32 Td (\(40,535) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 485.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.50 485.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 485.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 470.27 Td (Total gain \(loss\) on derivatives) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 341.50 468.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 470.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.30 470.32 Td (\(40,535) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 470.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.50 470.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 470.27 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (7.DISTRIBUTIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 77.04 418.10 Td (ith the authorization of its board of directors, the Company declared distributions to its stockholders and HALP) Tj ET Q q 0 0 0 rg BT 521.86 418.10 Td ( II for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (period from October1, 2014 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.80 406.10 Td (March 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.40 406.10 Td (. ) Tj ET Q q 0 0 0 rg BT 271.72 406.10 Td (These distributions were or will be calculated based on stockholders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (record for each day in an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.10 394.10 Td ($0.001575342) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.60 394.10 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 317.98 394.10 Td (A) Tj ET Q q 0 0 0 rg BT 324.65 394.10 Td ( Share, per day) Tj ET Q q 0 0 0 rg BT 383.98 394.10 Td (. ) Tj ET Q q 0 0 0 rg BT 390.93 394.10 Td (Also, with the authorization of the board ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (of directors, the Company declared distributions with respect to Class ) Tj ET Q q 0 0 0 rg BT 331.15 382.10 Td (T) Tj ET Q q 0 0 0 rg BT 337.08 382.10 Td ( Shares of the Company) Tj ET Q q 0 0 0 rg BT 435.95 382.10 Td (s common stock for the period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (from ) Tj ET Q q 0 0 0 rg BT 71.39 370.10 Td (August24, 2015 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.89 370.10 Td (March 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.49 370.10 Td (. Distributions for the Company's Class ) Tj ET Q q 0 0 0 rg BT 399.66 370.10 Td (T) Tj ET Q q 0 0 0 rg BT 405.59 370.10 Td ( Shares were or will be calculated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (based on stockholders of record each day in an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.58 358.10 Td ($0.001575342) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.08 358.10 Td ( per share, per day less the distribution and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (stockholder servicing fees that are payable with respect to such Class ) Tj ET Q q 0 0 0 rg BT 328.90 346.10 Td (T) Tj ET Q q 0 0 0 rg BT 334.82 346.10 Td ( Shares \(as calculated on a daily basis\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 322.10 Td (All distributions were or will be paid in cash or reinvested in shares of the Company) Tj ET Q q 0 0 0 rg BT 408.21 322.10 Td (s common stock for those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (participating in the Company) Tj ET Q q 0 0 0 rg BT 169.70 310.10 Td (s distribution reinvestment plan and have been or will be paid or issued, respectively) Tj ET Q q 0 0 0 rg BT 507.29 310.10 Td (, on the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (business day following the completion of the month to which they relate. Distributions reinvested pursuant to the distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (reinvestment plan will be reinvested in shares of the same class as the shares on which the distributions are being made. Some ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (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 68.00 250.10 Td (In addition to the distributions described above, the Company) Tj ET Q q 0 0 0 rg BT 317.68 250.10 Td (s board of directors authorized special stock dividends to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (holders of Class ) Tj ET Q q 0 0 0 rg BT 116.39 238.10 Td (A) Tj ET Q q 0 0 0 rg BT 123.06 238.10 Td ( Shares as of daily record dates for the period from October1, 2014 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.63 238.10 Td (June30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.46 238.10 Td (. Stock dividends ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (for the Company) Tj ET Q q 0 0 0 rg BT 120.54 226.10 Td (s Class ) Tj ET Q q 0 0 0 rg BT 150.55 226.10 Td (A) Tj ET Q q 0 0 0 rg BT 157.22 226.10 Td ( Shares were calculated based on stockholders of record each day in an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (0.0000273973) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 214.10 Td ( of a Class ) Tj ET Q q 0 0 0 rg BT 151.39 214.10 Td (A) Tj ET Q q 0 0 0 rg BT 158.06 214.10 Td ( Share per share, per day) Tj ET Q q 0 0 0 rg BT 256.25 214.10 Td (. Shares issued related to the Company) Tj ET Q q 0 0 0 rg BT 416.77 214.10 Td (s stock dividends were issued on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (the first business day of the month following the quarter to which they related. For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.90 202.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.48 202.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 190.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.66 190.10 Td (, the Company issued stock dividends of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.09 190.10 Td (12,470) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.59 190.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.03 190.10 Td (737) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.03 190.10 Td ( shares, which equated to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.33 190.10 Td ($124,700) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.83 190.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.27 190.10 Td ($7,367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.77 190.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 178.10 Td (, using the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.55 178.10 Td ($10.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.05 178.10 Td ( per Class ) Tj ET Q q 0 0 0 rg BT 210.43 178.10 Td (A) Tj ET Q q 0 0 0 rg BT 217.10 178.10 Td ( Share of) Tj ET Q q 0 0 0 rg BT 253.02 178.10 Td (fering price in ef) Tj ET Q q 0 0 0 rg BT 319.75 178.10 Td (fect on the respective dates the shares were issued.) Tj ET Q endstream endobj 157 0 obj <> endobj 158 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (76) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (The following table outlines the Company) Tj ET Q q 0 0 0 rg BT 239.91 742.10 Td (s total cash distributions declared to stockholders and noncontrolling interests ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (\(HALP) Tj ET Q q 0 0 0 rg BT 79.07 730.10 Td ( II\) for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.92 730.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 730.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.94 730.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.94 730.10 Td (, including the breakout between the distributions declared in cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (and those reinvested pursuant to the Company) Tj ET Q q 0 0 0 rg BT 237.74 718.10 Td (s distribution reinvestment plan.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 649.60 258.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.50 649.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 649.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.50 649.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 649.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 649.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 649.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 649.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 649.60 69.00 -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 312.5 672.6 m 371.5 672.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 672.6 m 375.5 672.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 672.6 m 433.5 672.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 672.6 m 437.5 672.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 672.6 m 489.5 672.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 672.6 m 562.5 672.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 649.6 m 308.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 649.6 m 371.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 649.6 m 433.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 649.6 m 489.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 649.6 m 562.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 649.6 m 308.5 649.6 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 677.06 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 375.45 677.05 Td (Stockholders) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 498.55 686.05 Td (Noncontrolling) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 510.80 677.05 Td (Interests) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 654.05 Td (Distributions for the Years Ended) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 331.70 663.05 Td (Cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 316.20 654.05 Td (Distributions) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 378.70 663.05 Td (Distributions) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 383.00 654.05 Td (Reinvested) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 453.15 663.05 Td (Total) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 445.80 654.05 Td (Declared) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 499.35 654.05 Td (Total Declared) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 640.06 Td (December 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 315.00 640.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 332.00 640.06 Td (1,432,201) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.00 640.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 394.00 640.06 Td (1,491,950) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.00 640.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.00 640.06 Td (2,924,151) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.00 640.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 640.06 Td (12,139) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 626.06 Td (December 31, 2014 ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 125.98 630.14 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 315.00 626.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.25 626.06 Td (40,377) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.00 626.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 409.75 626.06 Td (1,841) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.00 626.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 461.25 626.06 Td (42,218) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.00 626.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 626.06 Td (3,060) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 598.10 Td (Amounts pertain to only the fourth quarter of 2014.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (8.RELA) Tj ET Q q 0 0 0 rg BT 89.54 574.10 Td (TED P) Tj ET Q q 0 0 0 rg BT 117.97 574.10 Td (AR) Tj ET Q q 0 0 0 rg BT 132.06 574.10 Td (TY) Tj ET Q q 0 0 0 rg BT 145.58 574.10 Td ( ) Tj ET Q q 0 0 0 rg BT 147.90 574.10 Td (TRANSACTIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 550.10 Td (The table below outlines feesand expense reimbursements incurred that are payable by the Company to Hines and its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.59 538.10 Td (filiates for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.15 538.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.74 538.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.17 538.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.17 538.10 Td ( and amounts unpaid as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.38 538.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.96 538.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.40 538.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.40 538.10 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 489.60 209.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 489.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 489.60 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 489.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.50 489.60 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 489.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 489.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 489.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 489.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 463.60 209.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 463.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 463.60 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 463.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.50 463.60 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 463.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 463.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 463.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 463.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 437.60 209.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 437.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 437.60 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 437.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.50 437.60 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 437.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 437.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 437.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 437.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 411.60 209.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 411.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 411.60 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 411.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.50 411.60 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 411.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 411.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 411.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 411.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 385.60 209.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 385.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 385.60 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 385.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.50 385.60 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 385.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 385.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 385.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 385.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 359.60 209.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 359.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 359.60 85.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 359.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.50 359.60 85.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 359.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 359.60 59.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 359.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 359.60 58.00 -21.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 502.6 m 348.5 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 502.6 m 352.5 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 502.6 m 437.5 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 502.6 m 500.5 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 502.6 m 504.5 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 502.6 m 562.5 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 489.6 m 259.5 489.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 489.6 m 348.5 489.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 489.6 m 437.5 489.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 502.6 m 500.5 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 489.6 m 500.5 489.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 489.6 m 562.5 489.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 338.6 m 500.5 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 338.6 m 562.5 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 326.6 m 500.5 326.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 324.6 m 500.5 324.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 326.6 m 562.5 326.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 324.6 m 562.5 324.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 268.40 506.83 Td (Incurred During the Years Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.65 506.83 Td (Unpaid as of December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 493.83 Td (Type and Recipient) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.50 493.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.50 493.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.50 493.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.00 493.83 Td (2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 480.85 Td (Selling Commissions- Dealer Manager) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 266.00 480.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.30 480.85 Td (6,660,620) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.00 480.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.30 480.85 Td (60,697) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 444.00 480.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.30 480.85 Td (276,686) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 507.00 480.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 480.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 467.85 Td (Dealer Manager Fee- Dealer Manager) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 266.00 467.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.30 467.85 Td (3,089,100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.00 467.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.30 467.85 Td (27,511) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.30 467.85 Td (98,451) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 467.85 Td (10,323) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 454.85 Td (Distribution & Stockholder Servicing Fee- Dealer Manager) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 266.00 454.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 327.30 454.85 Td (7,254) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.00 454.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 454.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.30 454.85 Td (7,246) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 454.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 441.85 Td (Issuer and Organization Costs- the Advisor) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 266.00 441.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.30 441.85 Td (3,818,027) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.00 441.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.30 441.85 Td (4,153,388) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.25 441.85 Td (2,701,249) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 527.25 441.85 Td (4,153,388) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 428.85 Td (Acquisition Fee- the Advisor and affiliates of Hines) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 266.00 428.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.30 428.85 Td (2,327,715) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.00 428.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.30 428.85 Td (570,375) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.30 428.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.25 428.85 Td (570,375) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 415.85 Td (Asset Management Fee- the ) Tj ET Q q 0 0 0 rg BT 144.09 415.85 Td (Advisor and af) Tj ET Q q 0 0 0 rg BT 191.48 415.85 Td (filiates of Hines ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 244.58 419.48 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.64 415.85 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 266.00 415.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.30 415.85 Td (304,676) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.00 415.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 415.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.60 415.85 Td (\(119,781) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.30 415.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 415.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 402.85 Td (Other ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 73.21 406.48 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 79.28 402.85 Td ( - the ) Tj ET Q q 0 0 0 rg BT 97.27 402.85 Td (Advisor) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 266.00 402.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.30 402.85 Td (1,111,230) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.00 402.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.30 402.85 Td (365,960) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.30 402.85 Td (180,488) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.25 402.85 Td (365,960) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 389.85 Td (Interest Expense- Hines ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 131.42 393.48 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 266.00 389.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.30 389.85 Td (570,442) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.00 389.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.30 389.85 Td (20,328) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.30 389.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 389.85 Td (20,328) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 376.85 Td (Property Management Fee- Hines) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 266.00 376.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.30 376.85 Td (46,205) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.00 376.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.30 376.85 Td (1,769) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.30 376.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 376.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 363.85 Td (Construction Management Fee- Hines) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 266.00 363.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.30 363.85 Td (510) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.00 363.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.30 363.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.30 363.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 363.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 350.85 Td (Expense Reimbursement- Hines \(with respect to management) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 342.85 Td (and operations of the Company's properties\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 266.00 342.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.30 342.85 Td (332,628) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.00 342.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.30 342.85 Td (1,260) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.30 342.85 Td (41,871) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 342.85 Td (93,260) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 329.83 Td (Due to Affiliates) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 345.00 329.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 444.00 329.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.25 329.85 Td (3,186,210) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 507.00 329.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 527.25 329.85 Td (5,213,634) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.90 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 306.90 Td (The ) Tj ET Q q 0 0 0 rg BT 85.50 306.90 Td (Advisor waived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.59 306.90 Td ($583,433) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.09 306.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.53 306.90 Td ($16,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.03 306.90 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 493.17 306.90 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 294.90 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 294.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.44 294.90 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.44 294.90 Td (, respectively) Tj ET Q q 0 0 0 rg BT 180.10 294.90 Td (. ) Tj ET Q q 0 0 0 rg BT 187.05 294.90 Td (As a result of this waiver) Tj ET Q q 0 0 0 rg BT 286.90 294.90 Td (, the Company will be reimbursed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.49 294.90 Td ($1) Tj ET Q q 0 0 0 rg BT 435.11 294.90 Td (19,781) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.61 294.90 Td ( in asset management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 282.90 Td (fees paid to the ) Tj ET Q q 0 0 0 rg BT 130.76 282.90 Td (Advisor previously) Tj ET Q q 0 0 0 rg BT 207.05 282.90 Td (. See Advisory ) Tj ET Q q 0 0 0 rg BT 285.09 282.90 Td (Agreement below for a discussion of the asset management fee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 270.90 Td (waiver) Tj ET Q q 0 0 0 rg BT 94.66 270.90 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 252.90 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 252.90 Td (Includes amounts the ) Tj ET Q q 0 0 0 rg BT 154.93 252.90 Td (Advisor paid on behalf of the Company such as general and administrative expenses, acquisition-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 240.90 Td (related expenses and or) Tj ET Q q 0 0 0 rg BT 161.39 240.90 Td (ganizational expenses. ) Tj ET Q q 0 0 0 rg BT 256.17 240.90 Td (These amounts are generally reimbursed to the ) Tj ET Q q 0 0 0 rg BT 445.28 240.90 Td (Advisor during the month ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 228.90 Td (following the period in which they are incurred.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 210.90 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 210.90 Td (Includes amounts paid related to the Hines Credit Facility) Tj ET Q q 0 0 0 rg BT 298.41 210.90 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 68.00 186.90 Td (Dealer Manager ) Tj ET Q q 0 0 0 rg BT 138.18 186.90 Td (Agreement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 162.90 Td (In connection with sales of Class ) Tj ET Q q 0 0 0 rg BT 201.87 162.90 Td (A) Tj ET Q q 0 0 0 rg BT 208.54 162.90 Td ( Shares, HSI receives a commission of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.95 162.90 Td (7.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.78 162.90 Td ( of gross of) Tj ET Q q 0 0 0 rg BT 453.87 162.90 Td (fering proceeds and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 150.90 Td (dealer manager fee of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.16 150.90 Td (3.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.99 150.90 Td ( of gross of) Tj ET Q q 0 0 0 rg BT 228.09 150.90 Td (fering proceeds, both of which will be recorded as an of) Tj ET Q q 0 0 0 rg BT 451.44 150.90 Td (fset to additional paid-in-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.90 Td (capital in the Company) Tj ET Q q 0 0 0 rg BT 145.81 138.90 Td (s financial statements. Pursuant to separately negotiated agreements, HSI may reallow all of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.90 Td (commission and a portion of its dealer manager fee to broker) Tj ET Q q 0 0 0 rg BT 293.61 126.90 Td (-dealers participating in the Of) Tj ET Q q 0 0 0 rg BT 416.16 126.90 Td (fering. No selling commissions or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.90 Td (dealer manager fees will be paid for sales under the Company) Tj ET Q q 0 0 0 rg BT 299.91 114.90 Td (s distribution reinvestment plan.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 90.90 Td (In connection with sales of Class ) Tj ET Q q 0 0 0 rg BT 202.24 90.90 Td (T) Tj ET Q q 0 0 0 rg BT 208.17 90.90 Td ( Shares, HSI receives a commission of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.58 90.90 Td (2.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.41 90.90 Td ( of gross of) Tj ET Q q 0 0 0 rg BT 453.50 90.90 Td (fering proceeds and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 78.90 Td (dealer manager fee of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.16 78.90 Td (2.75%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.99 78.90 Td ( of gross of) Tj ET Q q 0 0 0 rg BT 233.09 78.90 Td (fering proceeds, both of which will be recorded as an of) Tj ET Q q 0 0 0 rg BT 456.44 78.90 Td (fset to additional paid-in-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 66.90 Td (capital in the Company) Tj ET Q q 0 0 0 rg BT 145.81 66.90 Td (s financial statements. In addition, HSI will receive annual distribution and stockholder servicing fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 54.90 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.83 54.90 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.66 54.90 Td ( of the gross of) Tj ET Q q 0 0 0 rg BT 141.47 54.90 Td (fering price per share \(or) Tj ET Q q 0 0 0 rg BT 240.46 54.90 Td (, if the Company is no longer of) Tj ET Q q 0 0 0 rg BT 368.04 54.90 Td (fering primary shares, the then-current net asset ) Tj ET Q endstream endobj 159 0 obj <><>] /Rotate 0 /Contents 160 0 R>> endobj 160 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (77) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (value per share of such class of shares, if any has been disclosed\) for the Class ) Tj ET Q q 0 0 0 rg BT 366.11 742.10 Td (T) Tj ET Q q 0 0 0 rg BT 372.04 742.10 Td ( Shares purchased and outstanding. ) Tj ET Q q 0 0 0 rg BT 517.66 742.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (distribution and stockholder servicing fee is recorded as an operating expense in the Company) Tj ET Q q 0 0 0 rg BT 429.61 730.10 Td (s financial statements. See ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 540.13671875 728.7669921875 m 562.0751953125 728.7669921875 l s q 0 0 1 rg BT 540.14 730.10 Td (Note ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 716.7669921875 m 55 716.7669921875 l s q 0 0 1 rg BT 50.00 718.10 Td (2) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 55.00 718.10 Td ( Summary of Significant ) Tj ET Q q 0 0 0 rg BT 168.05 718.10 Td (Accounting Policies Distribution and Stockholder Servicing Fees for additional information on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (the distribution and stockholder servicing fee. Pursuant to separately negotiated agreements, HSI may reallow all of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (commission, a portion of its dealer manager fee and all or a portion of its distribution and stockholder servicing fees to broker) Tj ET Q q 0 0 0 rg BT 553.00 694.10 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (dealers participating in the Of) Tj ET Q q 0 0 0 rg BT 169.22 682.10 Td (fering. No selling commissions, dealer manager fees or distribution and stockholder servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (fees will be paid for sales of shares pursuant to the Company) Tj ET Q q 0 0 0 rg BT 296.33 670.10 Td (s distribution reinvestment plan.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 68.00 646.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 106.24 646.10 Td (Agreement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 622.10 Td (Pursuant to the ) Tj ET Q q 0 0 0 rg BT 129.94 622.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 169.11 622.10 Td (Agreement and the Operating Partnership ) Tj ET Q q 0 0 0 rg BT 337.67 622.10 Td (Agreement, the Company is required to pay the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (following fees and expense reimbursements:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 586.10 Td (Acquisition Fee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.04 586.10 Td ( ) Tj ET Q q 0 0 0 rg BT 140.86 586.10 Td (The ) Tj ET Q q 0 0 0 rg BT 158.35 586.10 Td (Advisor receives acquisition fees of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.14 586.10 Td (2.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.97 586.10 Td ( of \(i\) the purchase price of real estate investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (acquired, including any debt attributable to such investments, or the total principal amounts borrowed under any loans made or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (acquired directly by the Company) Tj ET Q q 0 0 0 rg BT 185.42 562.10 Td (, or \(ii\) when the Company makes an investment or makes or acquires a loan indirectly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (through another entity) Tj ET Q q 0 0 0 rg BT 138.22 550.10 Td (, such investment) Tj ET Q q 0 0 0 rg BT 210.71 550.10 Td (s pro rata share of the gross asset value of real estate investments held by that entity) Tj ET Q q 0 0 0 rg BT 544.96 550.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (including any debt attributable to such investments, or the total principal amount borrowed under any loans made or acquired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (by that entity) Tj ET Q q 0 0 0 rg BT 102.12 526.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 502.10 Td (Asset Management Fee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.30 502.10 Td ( ) Tj ET Q q 0 0 0 rg BT 171.12 502.10 Td (The ) Tj ET Q q 0 0 0 rg BT 188.62 502.10 Td (Advisor also receives asset management fees of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.16 502.10 Td (0.0625%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.99 502.10 Td ( per month of the cost of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 490.10 Td (s real estate investments at the end of each month; provided that, if the Company) Tj ET Q q 0 0 0 rg BT 417.96 490.10 Td (s board of directors has determined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (an estimated net asset value per share, then, with respect to real estate investments included in the board of director) Tj ET Q q 0 0 0 rg BT 511.04 478.10 Td () Tj ET Q q 0 0 0 rg BT 513.82 478.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (determination, the asset management fees will be equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.81 466.10 Td (0.0625%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.64 466.10 Td ( per month of the most recently determined value of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (real estate investments at the end of each month.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 430.10 Td (In September 2014, the ) Tj ET Q q 0 0 0 rg BT 163.26 430.10 Td (Advisor 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 50.00 418.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 418.10 Td (, to the extent that the Company) Tj ET Q q 0 0 0 rg BT 259.39 418.10 Td (s modified funds from operations \(MFFO\) for the quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 406.10 Td (, as disclosed in the Company) Tj ET Q q 0 0 0 rg BT 250.79 406.10 Td (s ) Tj ET Q q 0 0 0 rg BT 256.63 406.10 Td (Annual Report on Form 10-K for such year) Tj ET Q q 0 0 0 rg BT 429.80 406.10 Td (, amounted to less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.23 406.10 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.56 406.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (the aggregate distributions declared to the Company) Tj ET Q q 0 0 0 rg BT 261.61 394.10 Td (s stockholders for the quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.11 394.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.70 394.10 Td (. ) Tj ET Q q 0 0 0 rg BT 492.65 394.10 Td (As a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (this waiver) Tj ET Q q 0 0 0 rg BT 93.75 382.10 Td (, the ) Tj ET Q q 0 0 0 rg BT 112.92 382.10 Td (Advisor waived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.02 382.10 Td ($16,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.52 382.10 Td ( of asset management fees payable to it for the quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.97 382.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.56 382.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 358.10 Td (Furthermore, the ) Tj ET Q q 0 0 0 rg BT 137.15 358.10 Td (Advisor also agreed to waive the asset management fees otherwise payable to it for each quarter in 2015 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (and each of the quarters ended March 31, 2016 and June 30, 2016, to the extent that the Company) Tj ET Q q 0 0 0 rg BT 444.06 346.10 Td (s MFFO for such quarters, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (disclosed in the Company) Tj ET Q q 0 0 0 rg BT 156.38 334.10 Td (s Quarterly Report on Form 10-Q or ) Tj ET Q q 0 0 0 rg BT 303.30 334.10 Td (Annual Report on Form 10-K, as applicable, amounts to less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.72 322.10 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.05 322.10 Td ( of the aggregate distributions declared to the Company) Tj ET Q q 0 0 0 rg BT 317.98 322.10 Td (s stockholders for each respective quarter) Tj ET Q q 0 0 0 rg BT 483.19 322.10 Td (. ) Tj ET Q q 0 0 0 rg BT 490.51 322.10 Td (The ) Tj ET Q q 0 0 0 rg BT 508.01 322.10 Td (Advisor also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (agreed to waive an additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.23 310.10 Td ($62,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.73 310.10 Td ( in asset management fees so that the Company) Tj ET Q q 0 0 0 rg BT 394.90 310.10 Td (s MFFO for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 298.10 Td ( would equal the distributions declared for such year) Tj ET Q q 0 0 0 rg BT 337.97 298.10 Td (. ) Tj ET Q q 0 0 0 rg BT 344.92 298.10 Td (As a result of these waivers, the ) Tj ET Q q 0 0 0 rg BT 474.33 298.10 Td (Advisor waived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td ($583,433) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 286.10 Td ( of the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.82 286.10 Td ($888,109) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.32 286.10 Td ( in asset management fees payable to it for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.11 286.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.70 286.10 Td ( and all of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td ($16,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 274.10 Td ( of 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 331.29 274.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.88 274.10 Td (. ) Tj ET Q q 0 0 0 rg BT 416.83 274.10 Td (As a result of these fee waivers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (cash flows from operations that would have been paid to the ) Tj ET Q q 0 0 0 rg BT 292.99 262.10 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 50.00 250.10 Td (distributions to stockholders. ) Tj ET Q q 0 0 0 rg BT 170.65 250.10 Td (These fee waivers are not deferrals and accordingly) Tj ET Q q 0 0 0 rg BT 376.28 250.10 Td (, any fees that are waived will not be paid to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (the ) Tj ET Q q 0 0 0 rg BT 64.17 238.10 Td (Advisor in cash at any time in the future.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 214.10 Td (Disposition Fee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.60 214.10 Td ( If the ) Tj ET Q q 0 0 0 rg BT 164.93 214.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 196.75 214.10 Td (, its af) Tj ET Q q 0 0 0 rg BT 221.29 214.10 Td (filiates or related parties provide a substantial amount of services, as determined in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (good faith by a majority of the Company) Tj ET Q q 0 0 0 rg BT 216.36 202.10 Td (s independent directors, the Company will pay the ) Tj ET Q q 0 0 0 rg BT 419.37 202.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 451.19 202.10 Td (, its af) Tj ET Q q 0 0 0 rg BT 475.73 202.10 Td (filiates or related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (parties a disposition fee in an amount equal to \(a\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.94 190.10 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.77 190.10 Td ( of the market value determined in connection with a listing of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 178.10 Td (s common stock on a national securities exchange, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.16 178.10 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.99 178.10 Td ( of the gross consideration received or to be received by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (the Company or its stockholders upon the occurrence of any other liquidity event involving the Company or the Operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (Partnership, pursuant to which the Company) Tj ET Q q 0 0 0 rg BT 231.08 154.10 Td (s stockholders receive in exchange for their shares of the Company) Tj ET Q q 0 0 0 rg BT 502.10 154.10 Td (s common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (stock, cash, listed securities, securities redeemable for cash, or a combination thereof, or \(b\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.14 142.10 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.97 142.10 Td ( of the gross sales price upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (the sale or transfer of one or more real estate investments \(including a sale of all of the Company) Tj ET Q q 0 0 0 rg BT 440.42 130.10 Td (s real estate investments\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 104.90 Td (Even if the ) Tj ET Q q 0 0 0 rg BT 113.82 104.90 Td (Advisor) Tj ET Q q 0 0 0 rg BT 145.64 104.90 Td (, its af) Tj ET Q q 0 0 0 rg BT 170.18 104.90 Td (filiates or related parties receive a disposition fee, the Company may still be obligated to pay fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 92.90 Td (or commissions to another third party) Tj ET Q q 0 0 0 rg BT 199.60 92.90 Td (. However) Tj ET Q q 0 0 0 rg BT 243.35 92.90 Td (, when a real estate or brokerage fee is payable in connection with a particular ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 80.90 Td (transaction, the amount of the disposition fee paid to the ) Tj ET Q q 0 0 0 rg BT 276.89 80.90 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 341.98 80.90 Td (filiates or related parties, as applicable, may not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 68.90 Td (exceed an amount equal to the lesser of \(i\) one-half of a competitive real estate or brokerage commission and \(ii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.71 68.90 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.54 68.90 Td ( of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 56.90 Td (gross sales price and, when added to the sum of all real estate or brokerage fees and commissions paid to unaf) Tj ET Q q 0 0 0 rg BT 489.40 56.90 Td (filiated parties, ) Tj ET Q endstream endobj 161 0 obj <>] /Rotate 0 /Contents 162 0 R>> 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 /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (may not exceed the lesser of \(x\) a competitive real estate or brokerage commission or \(y\) an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.62 742.10 Td (6.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.45 742.10 Td ( of the gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (sales price.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 706.10 Td (Special OP) Tj ET Q q 0 0 0 rg BT 113.08 706.10 Td ( Units ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.75 706.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 144.75 706.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.25 706.10 Td (An af) Tj ET Q q 0 0 0 rg BT 169.56 706.10 Td (filiate of the ) Tj ET Q q 0 0 0 rg BT 220.38 706.10 Td (Advisor holds special partnership interests in the Operating Partnership \(Special OP) Tj ET Q q 0 0 0 rg BT 560.49 706.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (Units\), which will entitle them to receive distributions in an amount equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.71 694.10 Td (15.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.54 694.10 Td ( of distributions, including from sales of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (real estate investments, refinancings and other sources, but only after the Company) Tj ET Q q 0 0 0 rg BT 385.18 682.10 Td (s stockholders have received, or are deemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (to have received, in the aggregate, cumulative distributions equal to their invested capital plus a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 670.10 Td (6.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.98 670.10 Td ( cumulative, non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (compounded annual return on such invested capital.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 634.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 117.90 634.10 Td (, at the sole discretion of the ) Tj ET Q q 0 0 0 rg BT 232.87 634.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 264.69 634.10 Td (, the acquisition fees, asset management fees or disposition fees are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (payable, in whole or in part, in cash or units of the Operating Partnership \(OP) Tj ET Q q 0 0 0 rg BT 364.55 622.10 Td ( Units\). In the case of the disposition fee, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (Advisor may also elect to be paid, if applicable, in securities issued by another entity) Tj ET Q q 0 0 0 rg BT 388.70 610.10 Td (. For the purposes of the payment of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (fees, each OP) Tj ET Q q 0 0 0 rg BT 104.33 598.10 Td ( Unit will be valued at the per share of) Tj ET Q q 0 0 0 rg BT 257.71 598.10 Td (fering price of the Company) Tj ET Q q 0 0 0 rg BT 373.78 598.10 Td (s common stock in the Company) Tj ET Q q 0 0 0 rg BT 507.93 598.10 Td (s most recent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (public of) Tj ET Q q 0 0 0 rg BT 85.64 586.10 Td (fering less selling commissions and dealer manager fees payable with respect to such common stock, to account for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (the fact that no selling commissions or dealer manager fees will be paid in connection with any such issuances. Each OP) Tj ET Q q 0 0 0 rg BT 533.94 574.10 Td ( unit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (will be convertible into one share of the Company) Tj ET Q q 0 0 0 rg BT 253.28 562.10 Td (s common stock. ) Tj ET Q q 0 0 0 rg BT 325.60 562.10 Td (The Company will recognize the expense related to these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (OP) Tj ET Q q 0 0 0 rg BT 62.41 550.10 Td ( Units as the related service is performed, as each OP) Tj ET Q q 0 0 0 rg BT 275.02 550.10 Td ( Unit will be fully vested upon issuance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 526.10 Td (The Company reimburses the ) Tj ET Q q 0 0 0 rg BT 187.98 526.10 Td (Advisor for all expenses paid or incurred by the ) Tj ET Q q 0 0 0 rg BT 380.98 526.10 Td (Advisor in connection with the services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (provided to the Company) Tj ET Q q 0 0 0 rg BT 151.28 514.10 Td (, subject to the limitation that the Company will not reimburse the ) Tj ET Q q 0 0 0 rg BT 417.07 514.10 Td (Advisor for any amount by which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (its operating expenses \(including the asset management fee\) at the end of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.61 502.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.27 502.10 Td ( preceding fiscal quarters exceeds the greater ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (of: \(A\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.99 490.10 Td (2.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.82 490.10 Td ( of its average invested assets, or \(B\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.50 490.10 Td (25.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.33 490.10 Td ( of its net income determined without reduction for any additions to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (reserves for depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale of the Company) Tj ET Q q 0 0 0 rg BT 549.83 478.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (assets for that period \(the 2%/25% Limitation\). Notwithstanding the above, the Company may reimburse the ) Tj ET Q q 0 0 0 rg BT 497.67 466.10 Td (Advisor for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (expenses in excess of this limitation if a majority of the independent directors determines that such excess expenses are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (justified based on unusual and non-recurring factors. For the four fiscal quarters ended September 30, 2015, the Company) Tj ET Q q 0 0 0 rg BT 542.92 442.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (total operating expenses exceeded the 2%/25% Limitation. Based upon a review of unusual and non-recurring factors, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (including but not limited to the Company being in the early stages of raising and deploying capital, the limited number of assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (acquired to date and the timing of those acquisitions, a majority of the Company) Tj ET Q q 0 0 0 rg BT 374.37 406.10 Td (s independent directors determined that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (excess expenses were justified and thus reimbursable to the ) Tj ET Q q 0 0 0 rg BT 289.65 394.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 321.32 394.10 Td (. For the four fiscal quarters ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.33 394.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.92 394.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.67 382.10 Td (s total operating expenses did not exceed the 2%/25% Limitation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 358.10 Td (In addition, as described in ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 178.52734375 356.7669921875 m 205.4658203125 356.7669921875 l s q 0 0 1 rg BT 178.53 358.10 Td (Note2) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 205.47 358.10 Td ( Summary of Significant ) Tj ET Q q 0 0 0 rg BT 318.51 358.10 Td (Accounting Policies Issuer Costs, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (reimburses the ) Tj ET Q q 0 0 0 rg BT 110.54 346.10 Td (Advisor for any issuer costs paid on its behalf. However) Tj ET Q q 0 0 0 rg BT 337.59 346.10 Td (, the total reimbursement related to issuer costs, selling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (commissions, dealer manager fees and the distribution and stockholder servicing fees may not exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.04 334.10 Td (15.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.87 334.10 Td ( of gross proceeds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (from the Of) Tj ET Q q 0 0 0 rg BT 97.03 322.10 Td (fering.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 68.00 298.10 Td (Property Management and Leasing ) Tj ET Q q 0 0 0 rg BT 215.96 298.10 Td (Agreements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 274.10 Td (The Company pays Hines fees for the management and leasing of the Company) Tj ET Q q 0 0 0 rg BT 390.13 274.10 Td (s properties. Property management fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 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 50.00 250.10 Td (addition, if Hines provides leasing services with respect to a property) Tj ET Q q 0 0 0 rg BT 326.22 250.10 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 50.00 238.10 Td (equal to the leasing fees char) Tj ET Q q 0 0 0 rg BT 165.60 238.10 Td (ged by unaf) Tj ET Q q 0 0 0 rg BT 212.63 238.10 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 50.00 226.10 Td (applicable property) Tj ET Q q 0 0 0 rg BT 126.82 226.10 Td (. ) Tj ET Q q 0 0 0 rg BT 134.14 226.10 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 50.00 214.10 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 50.00 202.10 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 50.00 190.10 Td (the property as well as of) Tj ET Q q 0 0 0 rg BT 150.62 190.10 Td (f-site personnel located in Hines) Tj ET Q q 0 0 0 rg BT 282.61 190.10 Td ( headquarters and regional of) Tj ET Q q 0 0 0 rg BT 399.05 190.10 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 50.00 178.10 Td (support the performance of Hines) Tj ET Q q 0 0 0 rg BT 186.99 178.10 Td ( duties under the agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 154.10 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 50.00 142.10 Td (construction. ) Tj ET Q q 0 0 0 rg BT 106.75 142.10 Td (These fees are considered incremental to the construction ef) Tj ET Q q 0 0 0 rg BT 346.46 142.10 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 50.00 130.10 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 50.00 118.10 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 50.00 106.10 Td (generally be performed by Hines on the Company) Tj ET Q q 0 0 0 rg BT 253.00 106.10 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 94.10 Td (related lease.) Tj ET Q endstream endobj 163 0 obj <>] /Rotate 0 /Contents 164 0 R>> 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 /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (9.F) Tj ET Q q 0 0 0 rg BT 67.87 742.25 Td (AIR ) Tj ET Q q 0 0 0 rg BT 88.52 742.25 Td (V) Tj ET Q q 0 0 0 rg BT 94.45 742.25 Td (ALUE MEASUREMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.25 Td (As described in ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 132.70703125 716.9169921875 m 159.6455078125 716.9169921875 l s q 0 0 1 rg BT 132.71 718.25 Td (Note 6) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 159.65 718.25 Td ( Derivative Instruments, the Company entered into an interest rate cap agreement as an economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.25 Td (hedge against the variability of future interest rates on one of its variable interest rate borrowings. ) Tj ET Q q 0 0 0 rg BT 445.24 706.25 Td (The valuation of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (derivative instrument is determined based on assumptions that management believes market participants would use in pricing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flow of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (derivative. ) Tj ET Q q 0 0 0 rg BT 97.30 670.25 Td (This analysis reflects the contractual terms of the derivative, including the period to maturity) Tj ET Q q 0 0 0 rg BT 467.65 670.25 Td (, and uses observable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (market-based inputs, including interest rate curves and implied volatilities. ) Tj ET Q q 0 0 0 rg BT 353.63 658.25 Td (The fair value of the interest rate cap agreement has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (been determined using the market standard methodology of netting the discounted future fixed cash receipts \(or payments\) and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (the discounted expected variable cash payments \(or receipts\). ) Tj ET Q q 0 0 0 rg BT 300.27 634.25 Td (The variable cash payments \(or receipts\) are based on an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (expectation of future interest rates \(forward curves\) derived from observable market interest rate curves. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 598.25 Td (Although the Company has determined the majority of the inputs used to value its interest rate cap agreement fall within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (Level 2 of the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 185.95 586.25 Td (, the credit valuation adjustments associated with its derivative utilize Level 3 inputs, such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparty) Tj ET Q q 0 0 0 rg BT 481.44 574.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.44 574.25 Td (Chatham ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (Financial Corporation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.04 562.25 Td (. In adjusting the fair value of its derivative contract for the ef) Tj ET Q q 0 0 0 rg BT 387.21 562.25 Td (fect of nonperformance risk, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (guarantees. However) Tj ET Q q 0 0 0 rg BT 136.50 538.25 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.16 538.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.75 538.25 Td (, the Company has assessed the significance of the impact of the credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (valuation adjustments on the overall valuation of its derivative position and has determined that the credit valuation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (adjustments are not significant to the overall valuation of its derivative. ) Tj ET Q q 0 0 0 rg BT 339.65 514.25 Td (As a result, the Company has determined its derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (valuation is classified in Level 2 of the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 285.37 502.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 478.25 Td (The following table sets forth the Company) Tj ET Q q 0 0 0 rg BT 245.19 478.25 Td (s derivative which was measured at fair value on a recurring basis, by level ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (within the fair value hierarchy as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.22 466.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.80 466.25 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 360.75 186.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.50 360.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 240.50 360.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 360.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.50 360.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 360.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 360.75 85.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 360.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 360.75 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 314.5 428.75 m 389.5 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 428.75 m 393.5 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393.5 428.75 m 478.5 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 428.75 m 482.5 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 428.75 m 562.5 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 374.75 m 236.5 374.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 374.75 m 310.5 374.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314.5 374.75 m 389.5 374.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393.5 374.75 m 478.5 374.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 374.75 m 562.5 374.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 433.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.00 433.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 365.40 433.43 Td (Basis of Fair Value Measurements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 379.43 Td (Period) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 247.30 399.43 Td (Fair Value of) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 261.65 389.43 Td (Assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 250.25 379.43 Td (\(Liabilities\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.35 419.43 Td (Quoted Prices) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 332.15 409.43 Td (In Active) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 325.90 399.43 Td (Markets for) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.40 389.43 Td (Identical Items) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 332.75 379.43 Td (\(Level 1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.50 399.43 Td (Significant Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 411.05 389.43 Td (Observable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.60 379.43 Td (Inputs \(Level 2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 498.90 399.43 Td (Significant) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.55 389.43 Td (Unobservable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 488.10 379.43 Td (Inputs \(Level 3\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 365.43 Td (December 31, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.00 365.43 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.50 365.43 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 435.50 365.43 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 522.00 365.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 350.42 Td (Interest rate cap) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.00 350.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.15 350.42 Td (6,344) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.00 350.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 350.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.00 350.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 350.42 Td (6,344) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.00 350.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 350.42 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 322.25 Td (Other) Tj ET Q q 0 0 0 rg BT 93.37 322.25 Td ( Items) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 298.25 Td (Financial Instruments Fair V) Tj ET Q q 0 0 0 rg BT 184.38 298.25 Td (alue Disclosur) Tj ET Q q 0 0 0 rg BT 242.62 298.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 274.25 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 50.00 262.25 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 50.00 250.25 Td (prices included in Level 1 that are observable for the asset or liability) Tj ET Q q 0 0 0 rg BT 326.47 250.25 Td (, either directly or indirectly) Tj ET Q q 0 0 0 rg BT 438.28 250.25 Td (. Level 2 inputs include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 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 50.00 226.25 Td (liability) Tj ET Q q 0 0 0 rg BT 80.46 226.25 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 50.00 214.25 Td (inputs for the asset or liability) Tj ET Q q 0 0 0 rg BT 169.05 214.25 Td (, and include situations where there is little, if any) Tj ET Q q 0 0 0 rg BT 368.07 214.25 Td (, market activity for the asset or liability) Tj ET Q q 0 0 0 rg BT 527.93 214.25 Td (. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 Td (instances in which the inputs used to measure fair value may fall into dif) Tj ET Q q 0 0 0 rg BT 340.02 202.25 Td (ferent levels of the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 494.84 202.25 Td (, the level in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 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 50.00 178.25 Td (input significant to the fair value measurement in its entirety) Tj ET Q q 0 0 0 rg BT 291.23 178.25 Td (. ) Tj ET Q q 0 0 0 rg BT 298.54 178.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 358.26 178.25 Td (s assessment of the significance of a particular ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.25 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 535.87 166.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 142.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.44 142.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.03 142.25 Td ( and December 31, 2014, the Company estimated that the book value of its notes payable, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td (excluding deferred financing costs, approximates their fair value since their variable interest rates approximate current lending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (rates for loans with similar maturities and credit quality) Tj ET Q q 0 0 0 rg BT 271.51 118.25 Td (. ) Tj ET Q q 0 0 0 rg BT 278.46 118.25 Td (Although the Company has determined that the majority of the inputs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (used to value its notes payable fall within Level 2 of the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 354.24 106.25 Td (, the credit quality adjustments associated with its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (fair value of notes payable utilize Level 3 inputs. However) Tj ET Q q 0 0 0 rg BT 287.02 94.25 Td (, the Company has assessed the significance of the impact of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (credit quality adjustments on the overall valuations of its fair market value of notes payable and has determined they are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.25 Td (significant. Other financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.25 Td (restricted cash, tenant and other receivables, accounts payable and accrued expenses, other liabilities, due to af) Tj ET Q q 0 0 0 rg BT 492.13 58.25 Td (filiates and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.25 Td (distributions payable. ) Tj ET Q q 0 0 0 rg BT 140.92 46.25 Td (The carrying value of these items reasonably approximates their fair value based on their highly-liquid ) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (nature and/or short-term maturities. Due to the short-term nature of these instruments, Level 1 inputs are utilized to estimate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (the fair value of the cash and cash equivalents and restricted cash and Level 2 inputs are utilized to estimate the fair value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (remaining financial instruments.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (10. REPOR) Tj ET Q q 0 0 0 rg BT 101.65 694.10 Td (T) Tj ET Q q 0 0 0 rg BT 107.58 694.10 Td (ABLE SEGMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 670.10 Td (As described previously) Tj ET Q q 0 0 0 rg BT 163.50 670.10 Td (, the Company intends to invest the net proceeds from the Of) Tj ET Q q 0 0 0 rg BT 407.15 670.10 Td (fering in a diversified portfolio of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 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 539.52 658.10 Td (. ) Tj ET Q q 0 0 0 rg BT 546.84 658.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 646.10 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 49.50 634.10 Td (assets. ) Tj ET Q q 0 0 0 rg BT 79.78 634.10 Td (All of the Company) Tj ET Q q 0 0 0 rg BT 162.27 634.10 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 413.58 634.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.16 634.10 Td ( are from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 622.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.56 622.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.56 622.10 Td ( consolidated real estate properties owned as of that date. ) Tj ET Q q 0 0 0 rg BT 345.25 622.10 Td (As a result, the Company) Tj ET Q q 0 0 0 rg BT 449.40 622.10 Td (s operating segments have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (been reclassified into one of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.73 610.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.73 610.10 Td ( reportable segments: domestic real estate investments and international real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 586.10 Td (The tables below provide additional information related to each of the Company) Tj ET Q q 0 0 0 rg BT 391.57 586.10 Td (s segments and a reconciliation to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 574.10 Td (s net loss, as applicable. Corporate-Level ) Tj ET Q q 0 0 0 rg BT 264.72 574.10 Td (Accounts includes amounts incurred by the corporate-level entities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (which are not allocated to any of the reportable segments. ) Tj ET Q q 0 0 0 rg BT 285.34 562.10 Td (The tables below do not reflect amounts for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.21 562.10 Td (July31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 550.10 Td ( \(date of inception\) through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.97 550.10 Td (December31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.55 550.10 Td ( as we did not make our first real estate investment until ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.16 550.10 Td (December 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.74 550.10 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 482.60 348.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.00 482.60 81.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 482.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 482.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 452.60 348.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.00 452.60 81.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 452.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 452.60 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 398 512.6 m 479 512.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 512.6 m 483 512.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 512.6 m 563 512.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 497.6 m 479 497.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 497.6 m 563 497.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 482.6 m 398 482.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 452.6 m 479 452.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 438.6 m 479 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 436.6 m 479 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 452.6 m 563 452.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 438.6 m 563 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 436.6 m 563 436.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 517.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.60 517.28 Td (Years Ended December 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 502.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.00 502.28 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 512.50 502.28 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 487.28 Td (Total Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.50 487.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.50 487.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 472.27 Td (Domestic real estate investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.50 472.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 472.27 Td (2,412,143) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.50 472.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 472.27 Td (94,327) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 457.27 Td (International real estate investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 457.27 Td (6,998,532) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 457.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 442.28 Td (Total Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.50 442.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 442.27 Td (9,410,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.50 442.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 442.27 Td (94,327) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 414.10 Td (For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.58 414.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.17 414.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.61 414.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.61 414.10 Td (, the Company) Tj ET Q q 0 0 0 rg BT 327.99 414.10 Td (s total revenue was attributable to the following countries:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 348.60 348.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 348.60 81.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 348.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 348.60 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 397 377.6 m 478 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 377.6 m 482 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 377.6 m 478 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 363.6 m 478 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 377.6 m 562 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 363.6 m 562 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 348.6 m 397 348.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.60 382.28 Td (Years Ended December 31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 427.00 368.28 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 511.50 368.28 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 353.28 Td (Total Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 338.27 Td (United States) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 338.27 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 338.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.15 338.27 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 338.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 323.27 Td (Ireland) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 323.27 Td (74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 323.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 323.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 323.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 295.10 Td (For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.58 295.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.17 295.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.61 295.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.61 295.10 Td (, the Company) Tj ET Q q 0 0 0 rg BT 327.99 295.10 Td (s property revenues in excess of expenses by segment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.10 Td (were as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 215.60 348.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 215.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 215.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 215.60 81.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 185.60 348.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 185.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 185.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 185.60 81.00 -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 397 245.60000000000002 m 477 245.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 245.60000000000002 m 481 245.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 245.60000000000002 m 562 245.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 230.60000000000002 m 477 230.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 230.60000000000002 m 562 230.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 215.60000000000002 m 397 215.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 185.60000000000002 m 477 185.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 171.60000000000002 m 477 171.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 169.60000000000002 m 477 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 185.60000000000002 m 562 185.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 171.60000000000002 m 562 171.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 169.60000000000002 m 562 169.60000000000002 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 250.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.60 250.28 Td (Years Ended December 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 235.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.50 235.28 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 511.00 235.28 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 220.28 Td (Pr) Tj ET Q q 0 0 0 rg BT 61.87 220.28 Td (operty r) Tj ET Q q 0 0 0 rg BT 96.39 220.28 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 219.71 224.81 Td ( \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 220.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 205.27 Td (Domestic real estate investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.50 205.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.15 205.27 Td (1,747,104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 205.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 205.27 Td (61,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 190.27 Td (International real estate investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.15 190.27 Td (5,366,550) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 190.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 175.28 Td (Property revenues in excess of expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.50 175.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.15 175.27 Td (7,113,654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 175.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 175.27 Td (61,179) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.90 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 151.90 Td (Revenues less property operating expenses, real property taxes and property management fees.) 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 67.50 742.10 Td (For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.58 742.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.17 742.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.61 742.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.61 742.10 Td (, the Company) Tj ET Q q 0 0 0 rg BT 327.99 742.10 Td (s total assets by segment were as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 689.60 328.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 689.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 689.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 689.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 659.60 328.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 659.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 659.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 659.60 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 377.5 704.6 m 467.5 704.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 704.6 m 561.5 704.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 689.6 m 377.5 689.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 644.6 m 467.5 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 630.6 m 467.5 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 628.6 m 467.5 628.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 644.6 m 561.5 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 630.6 m 561.5 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 628.6 m 561.5 628.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 709.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.65 709.28 Td (December 31, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.65 709.28 Td (December 31, 2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 694.28 Td (Total Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.00 694.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.00 694.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 679.27 Td (Domestic real estate investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.00 679.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 679.27 Td (24,294,382) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.00 679.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 679.27 Td (25,388,181) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 664.27 Td (International real estate investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 664.27 Td (105,076,935) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 664.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 649.27 Td (Corporate-level accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 649.27 Td (19,684,932) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 649.27 Td (3,162,633) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 634.28 Td (Total Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.00 634.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 634.27 Td (149,056,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.00 634.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 634.27 Td (28,550,814) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 606.10 Td (For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.58 606.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.17 606.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.61 606.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.61 606.10 Td (, the Company) Tj ET Q q 0 0 0 rg BT 327.99 606.10 Td (s total assets were attributable to the following countries:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 554.60 328.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 554.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 554.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 554.60 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 377.5 569.6 m 467.5 569.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 569.6 m 561.5 569.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 554.6 m 377.5 554.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.65 574.28 Td (December 31, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.65 574.28 Td (December 31, 2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 559.28 Td (Total Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 544.27 Td (United States) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 544.27 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 544.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.65 544.27 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 544.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 529.27 Td (Ireland) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 529.27 Td (70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 529.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 529.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 529.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 501.10 Td (For the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.58 501.10 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.17 501.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.61 501.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.61 501.10 Td ( the Company) Tj ET Q q 0 0 0 rg BT 325.49 501.10 Td (s reconciliation to the Company) Tj ET Q q 0 0 0 rg BT 456.02 501.10 Td (s net loss is as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 433.60 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 433.60 81.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 433.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 433.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 403.60 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 403.60 81.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 403.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 403.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 373.60 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 373.60 81.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 373.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 373.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 343.60 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 343.60 81.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 343.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 343.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 313.60 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 313.60 81.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 313.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 313.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 283.60 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 283.60 81.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 283.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 283.60 82.00 -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 396 463.6 m 477 463.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 448.6 m 477 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 463.6 m 481 463.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 463.6 m 563 463.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 448.6 m 563 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 433.6 m 396 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 433.6 m 396 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 283.6 m 477 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 269.6 m 477 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 267.6 m 477 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 283.6 m 563 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 269.6 m 563 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 267.6 m 563 267.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 468.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.60 468.28 Td (Years Ended December 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 453.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.00 453.28 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 511.50 453.28 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 438.28 Td (Reconciliation to net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.50 438.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 438.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 423.27 Td (Total property revenues in excess of expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.50 423.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.15 423.27 Td (7,113,654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 423.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 423.27 Td (61,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 408.27 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.80 408.32 Td (\(4,206,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 408.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 408.32 Td (\(49,288) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 408.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 393.27 Td (Acquisition related expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.80 393.32 Td (\(2,962,784) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 393.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 393.32 Td (\(131,454) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 393.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 378.27 Td (Asset management and acquisition fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.80 378.32 Td (\(2,639,645) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 378.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 378.32 Td (\(570,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 378.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 363.27 Td (Organizational expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 363.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 363.32 Td (\(63,164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 363.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 348.27 Td (General and administrative expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.80 348.32 Td (\(1,548,979) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 348.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 348.32 Td (\(554,476) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 348.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 333.27 Td (Gain \(loss\) on derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.30 333.32 Td (\(40,535) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 333.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 333.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 318.27 Td (Foreign currency gains \(losses\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.30 318.32 Td (\(12,107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 318.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 318.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 303.27 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.80 303.32 Td (\(1,344,779) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 303.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 303.32 Td (\(20,328) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 303.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 288.27 Td (Interest income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 288.27 Td (4,209) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 288.27 Td (243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 273.27 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.50 273.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.80 273.32 Td (\(5,637,566) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 273.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 273.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.80 273.32 Td (\(1,327,663) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 273.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 245.10 Td (1) Tj ET Q q 0 0 0 rg BT 54.45 245.10 Td (1. COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 148.90 245.10 Td (AND CONTINGENCIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 221.10 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 531.31 221.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 209.10 Td (matters are generally covered by insurance. ) Tj ET Q q 0 0 0 rg BT 228.62 209.10 Td (While the resolution of these matters cannot be predicted with certainty) Tj ET Q q 0 0 0 rg BT 513.98 209.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 197.10 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 412.46 197.10 Td (fect on the Company) Tj ET Q q 0 0 0 rg BT 498.82 197.10 Td (s consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 185.10 Td (financial statements.) 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 /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (12. QUAR) Tj ET Q q 0 0 0 rg BT 96.59 742.25 Td (TERL) Tj ET Q q 0 0 0 rg BT 122.91 742.25 Td (Y) Tj ET Q q 0 0 0 rg BT 129.76 742.25 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 188.37 742.25 Td ( DA) Tj ET Q q 0 0 0 rg BT 204.58 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 210.50 742.25 Td (A) Tj ET Q q 0 0 0 rg BT 217.17 742.25 Td ( \(UNAUDITED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.25 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 50.00 706.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 706.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.02 706.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.02 706.25 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 653.75 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 653.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 653.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 653.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 653.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 653.75 91.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 653.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 653.75 91.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 625.75 168.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 625.75 75.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 625.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 625.75 75.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 625.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 625.75 91.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 625.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 625.75 91.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 588.75 168.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 588.75 75.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 588.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 588.75 75.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 588.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 588.75 91.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 588.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 588.75 91.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 551.75 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 551.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 551.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 551.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 551.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 551.75 91.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 551.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 551.75 91.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 514.75 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 514.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 514.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 514.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 514.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 514.75 91.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 514.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 514.75 91.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 470.75 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 470.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 470.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 470.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 470.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 470.75 91.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 470.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 470.75 91.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 442.75 168.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 442.75 75.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 442.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 442.75 75.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 442.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 442.75 91.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 442.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 442.75 91.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 396.75 168.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 396.75 75.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 396.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 396.75 75.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 396.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.50 396.75 91.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 396.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 396.75 91.00 -23.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 668.75 m 293.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 668.75 m 297.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297.5 668.75 m 372.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 668.75 m 376.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 668.75 m 467.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 668.75 m 471.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 668.75 m 562.5 668.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 653.75 m 293.5 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297.5 653.75 m 372.5 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 653.75 m 467.5 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 653.75 m 562.5 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 485.75 m 293.5 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 485.75 m 297.5 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297.5 485.75 m 372.5 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 485.75 m 376.5 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 485.75 m 467.5 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 485.75 m 471.5 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 485.75 m 562.5 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 470.75 m 293.5 470.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297.5 470.75 m 372.5 470.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376.5 470.75 m 467.5 470.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 470.75 m 562.5 470.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 673.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.40 673.43 Td (Quarters Ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 658.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 222.40 658.43 Td (March 31, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 305.45 658.43 Td (June 30, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.75 658.43 Td (September 30, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 476.15 658.43 Td (December 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 645.01 Td (Revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.00 644.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 253.65 644.21 Td (1,245,324) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.00 644.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 332.65 644.21 Td (2,695,390) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 644.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.65 644.21 Td (2,698,258) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 644.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.65 644.21 Td (2,771,703) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 630.21 Td (Net income \(loss\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.00 630.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.65 630.21 Td (\(5,366,567) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.65 630.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.00 630.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.40 630.21 Td (\(291,110) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.65 630.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 630.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.40 630.21 Td (1,295) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 630.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.90 630.21 Td (18,816) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 616.21 Td (Net \(income\) loss attributable to) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 607.21 Td (noncontrolling interests) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.00 607.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 266.40 607.21 Td (\(2,993) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.65 607.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.00 607.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 345.40 607.21 Td (\(3,026) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.65 607.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 607.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.40 607.21 Td (\(3,060) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.65 607.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 607.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.40 607.21 Td (\(3,060) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.65 607.21 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 594.00 Td (Class A Common Stock:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 580.01 Td (Net income \(loss\) attributable to) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 571.01 Td (stockholders) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.00 570.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.65 570.21 Td (\(5,369,560) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.65 570.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.00 570.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.40 570.21 Td (\(294,136) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.65 570.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 570.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.40 570.21 Td (\(1,757) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.65 570.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 570.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.90 570.21 Td (22,160) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 556.21 Td (Income \(loss\) per share, basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.00 556.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 270.90 556.21 Td (\(4.82) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 289.65 556.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.00 556.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.90 556.21 Td (\(0.07) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.65 556.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 556.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 454.65 556.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 556.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 549.65 556.21 Td () Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 543.00 Td (Class T Common Stock:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 529.01 Td (Net income \(loss\) attributable to) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 520.01 Td (stockholders) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.00 519.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.65 519.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.00 519.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.65 519.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 519.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.15 519.21 Td (\(8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.65 519.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 519.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.40 519.21 Td (\(6,404) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.65 519.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 506.01 Td (Income \(loss\) per share, basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.00 505.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.65 505.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.00 505.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.65 505.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 505.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.90 505.21 Td (\(0.01) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.65 505.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 505.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.90 505.21 Td (\(0.02) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.65 505.21 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 490.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.40 490.43 Td (Quarters Ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 475.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 222.40 475.43 Td (March 31, 2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 305.45 475.43 Td (June 30, 2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.75 475.43 Td (September 30, 2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 476.15 475.43 Td (December 31, 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 462.01 Td (Revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.00 461.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.65 461.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.00 461.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.65 461.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 461.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 454.65 461.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 461.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.90 461.21 Td (94,327) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 447.21 Td (Net income \(loss\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.00 447.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.65 447.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.00 447.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.65 447.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 447.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.40 447.21 Td (\(283,389) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.65 447.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 447.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.65 447.21 Td (\(1,044,274) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.65 447.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 433.21 Td (Net \(income\) loss attributable to) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 424.21 Td (noncontrolling interests) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.00 424.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.65 424.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.00 424.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.65 424.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 424.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 434.40 424.21 Td (190,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 424.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.40 424.21 Td (\(3,060) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.65 424.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 410.21 Td (Net income \(loss\) attributable to Class A) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 401.21 Td (stockholders) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.00 401.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.65 401.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.00 401.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.65 401.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 401.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.90 401.21 Td (\(93,389) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.65 401.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 401.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 519.65 401.21 Td (\(1,047,334) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.65 401.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 387.21 Td (Income \(loss\) per Class A common share,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 378.21 Td (basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 221.00 378.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.65 378.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 300.00 378.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.65 378.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.00 378.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.90 378.21 Td (\(7.07) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.65 378.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 378.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.90 378.21 Td (\(3.57) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 558.65 378.21 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 350.25 Td (13. SUBSEQUENT) Tj ET Q q 0 0 0 rg BT 134.07 350.25 Td ( EVENTS) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (Domain ) Tj ET Q q 0 0 0 rg BT 84.04 326.25 Td (Apartments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 302.25 Td (In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.33 302.25 Td (January 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.93 302.25 Td (, the Company acquired the Domain ) Tj ET Q q 0 0 0 rg BT 278.84 302.25 Td (Apartments, a multi-family community located in Las ) Tj ET Q q 0 0 0 rg BT 496.94 302.25 Td (V) Tj ET Q q 0 0 0 rg BT 503.05 302.25 Td (egas, Nevada. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.25 Td (The net purchase price was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.84 290.25 Td ($58.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.73 290.25 Td (, exclusive of transaction costs and working capital reserves. ) Tj ET Q q 0 0 0 rg BT 461.69 290.25 Td (The Domain ) Tj ET Q q 0 0 0 rg BT 513.90 290.25 Td (Apartments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.25 Td (community was constructed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.48 278.25 Td (January 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.07 278.25 Td (, and consists of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.01 278.25 Td (308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.01 278.25 Td ( units that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.88 278.25 Td (95%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.21 278.25 Td ( leased as of the date of acquisition. ) Tj ET Q q 0 0 0 rg BT 539.39 278.25 Td (As a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.25 Td (result of the acquisition of the Domain ) Tj ET Q q 0 0 0 rg BT 205.86 266.25 Td (Apartments, the Company incurred approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.69 266.25 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.58 266.25 Td ( in acquisition fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.25 Td (payable to our ) Tj ET Q q 0 0 0 rg BT 108.65 254.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 140.32 254.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 230.25 Td (The Company has not concluded its accounting for this recent acquisition, but it expects that the purchase price will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.25 Td (primarily be allocated to building, land, equipment, furniture and fixtures, and in-place lease assets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 194.25 Td (In connection with the acquisition of the Domain ) Tj ET Q q 0 0 0 rg BT 265.79 194.25 Td (Apartments, the Company entered into a loan agreement with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.42 194.25 Td (W) Tj ET Q q 0 0 0 rg BT 523.06 194.25 Td (ells ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.25 Td (Far) Tj ET Q q 0 0 0 rg BT 62.65 182.25 Td (go Bank, National ) Tj ET Q q 0 0 0 rg BT 137.64 182.25 Td (Association) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.86 182.25 Td ( with the principal sum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.39 182.25 Td ($34.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.29 182.25 Td ( to fund the acquisition of the Domain ) Tj ET Q q 0 0 0 rg BT 498.70 182.25 Td (Apartments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.25 Td (Interest accrued on the loan is due and payable on the first business day of each month commencing in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.43 170.25 Td (February 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.03 170.25 Td (. ) Tj ET Q q 0 0 0 rg BT 528.35 170.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.25 Td (loan has a floating interest rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.84 158.25 Td (Libor + 1.60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.52 158.25 Td (. Repayment of principal is due upon the maturity of the loan on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.41 158.25 Td (January29, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.25 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 146.25 Td (. ) Tj ET Q q 0 0 0 rg BT 76.82 146.25 Td (The Company has the option to extend the term for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.99 146.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.43 146.25 Td ( additional year subject to the satisfaction of certain conditions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.25 Td (The loan may be prepaid at any time on or after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.48 134.25 Td (July29, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 134.25 Td (, subject to certain conditions, including but not limited to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.25 Td (providing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.89 122.25 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.89 122.25 Td ( days) Tj ET Q q 0 0 0 rg BT 124.30 122.25 Td ( advance notice to ) Tj ET Q q 0 0 0 rg BT 199.09 122.25 Td (W) Tj ET Q q 0 0 0 rg BT 207.73 122.25 Td (ells Far) Tj ET Q q 0 0 0 rg BT 237.26 122.25 Td (go.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.50 86.25 Td (*****) 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 /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, 2015) 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, 2015) 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, 2015) 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 Section 989G of the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 297.27 190.25 Td (W) Tj ET Q q 0 0 0 rg BT 305.91 190.25 Td (all Street and Consumer Protection ) Tj ET Q q 0 0 0 rg BT 447.83 190.25 Td (Act, which exempts non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (accelerated filers from the auditor attestation requirement of section 404 \(b\) of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 447.07 178.25 Td (Act.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.25 Td (March24, 2016) 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 /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, 2015) 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 (The information required by this Item is incorporated by reference to our Definitive Proxy Statement to be filed with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (SEC no later than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.77 562.25 Td (April29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.38 562.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (Item1) Tj ET Q q 0 0 0 rg BT 76.94 538.25 Td (1.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 89.44 538.25 Td (Executive Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 514.25 Td (The information required by this Item is incorporated by reference to our Definitive Proxy Statement to be filed with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (SEC no later than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.77 502.25 Td (April29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.38 502.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (Item12.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 84.99 478.25 Td (Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 454.25 Td (The information required by this Item is incorporated by reference to our Definitive Proxy Statement to be filed with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (SEC no later than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.77 442.25 Td (April29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.38 442.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (Item13.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 84.99 418.25 Td (Certain Relationships and Related T) Tj ET Q q 0 0 0 rg BT 239.64 418.25 Td (ransactions, and Director Independence) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 394.25 Td (The information required by this Item is incorporated by reference to our Definitive Proxy Statement to be filed with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (SEC no later than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.77 382.25 Td (April29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.38 382.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (Item14.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 84.99 358.25 Td (Principal ) Tj ET Q q 0 0 0 rg BT 130.45 358.25 Td (Accounting Fees and Services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 334.25 Td (The information required by this Item is incorporated by reference to our Definitive Proxy Statement to be filed with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (SEC no later than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.77 322.25 Td (April29, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.38 322.25 Td (.) Tj ET Q endstream endobj 175 0 obj <><><><><><><><>] /Rotate 0 /Contents 176 0 R>> endobj 176 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (85) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 286.30 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 291.67 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 305.76 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 312.25 742.25 Td ( IV) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (Item 15. Exhibits, Financial Statement Schedules) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.25 Td (\(a\)\(1\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 93.26 694.25 Td (Financial Statements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (Hines Global REIT) Tj ET Q q 0 0 0 rg BT 132.62 670.25 Td ( II, Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (Consolidated Financial Statements as of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.56 658.25 Td (December) Tj ET Q q 0 0 0 rg BT 278.69 658.25 Td (31, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 316.19 658.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.31 658.25 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 357.31 658.25 Td ( and for) Tj ET Q q 0 0 0 rg BT 391.02 658.25 Td ( the ) Tj ET Q q 0 0 0 rg BT 408.98 658.25 Td (Y) Tj ET Q q 0 0 0 rg BT 415.09 658.25 Td (ears Ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 465.65 658.25 Td (December) Tj ET Q q 0 0 0 rg BT 508.78 658.25 Td (31, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 546.28 658.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 646.25 Td ( and for) Tj ET Q q 0 0 0 rg BT 103.71 646.25 Td ( the Period fr) Tj ET Q q 0 0 0 rg BT 160.45 646.25 Td (om ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 176.28 646.25 Td (July31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 232.12 646.25 Td ( \(date of inception\) thr) Tj ET Q q 0 0 0 rg BT 328.04 646.25 Td (ough ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.67 646.25 Td (December) Tj ET Q q 0 0 0 rg BT 394.79 646.25 Td (31, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.29 646.25 Td (.) 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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 447.25 Td (All other schedules for which provision is made in the applicable accounting regulations of the SEC are not required under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 435.25 Td (the related instructions or are not applicable and therefore have been omitted.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 411.25 Td (\(b\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.16 411.25 Td (Exhibits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 387.25 Td (Reference is made to the Index beginning on page ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 270.9833984375 385.9169921875 m 280.9833984375 385.9169921875 l s q 0 0 1 rg BT 270.98 387.25 Td (88) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 280.98 387.25 Td ( for a list of all exhibits filed as a part of this report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.75 363.25 Td (* * * * * *) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 612.5333984375 m 559 612.5333984375 l s q 0 0 1 rg BT 549.00 613.87 Td (59) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 582.5333984375 m 559 582.5333984375 l s q 0 0 1 rg BT 549.00 583.87 Td (60) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 567.5333984375 m 559 567.5333984375 l s q 0 0 1 rg BT 549.00 568.87 Td (61) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 552.5333984375 m 559 552.5333984375 l s q 0 0 1 rg BT 549.00 553.87 Td (62) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 537.5333984375 m 559 537.5333984375 l s q 0 0 1 rg BT 549.00 538.87 Td (63) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 522.5333984375 m 559 522.5333984375 l s q 0 0 1 rg BT 549.00 523.87 Td (64) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL endstream endobj 177 0 obj <> endobj 178 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.00 33.60 Td (86) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 256.35 560.25 Td (Schedule III Real Estate ) Tj ET Q q 0 0 0 rg BT 374.41 560.25 Td (Assets and ) Tj ET Q q 0 0 0 rg BT 421.65 560.25 Td (Accumulated Depr) Tj ET Q q 0 0 0 rg BT 502.29 560.25 Td (eciation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 355.65 548.25 Td (December) Tj ET Q q 0 0 0 rg BT 398.77 548.25 Td (31, 2015) Tj ET Q BT /F2 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 487.75 75.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 111.50 487.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 115.50 487.75 63.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 178.50 487.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 182.50 487.75 51.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.50 487.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 237.50 487.75 37.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 487.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 487.75 51.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 487.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.50 487.75 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 487.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 487.75 59.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 487.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 487.75 37.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 487.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 487.75 50.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 536.50 487.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 540.50 487.75 53.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 593.50 487.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 597.50 487.75 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 652.50 487.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 656.50 487.75 46.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 702.50 487.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 706.50 487.75 50.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 463.75 75.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 111.50 463.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 115.50 463.75 63.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 178.50 463.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 182.50 463.75 51.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.50 463.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 237.50 463.75 37.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 463.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 463.75 51.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 463.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.50 463.75 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 463.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 463.75 59.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 463.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 463.75 37.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 463.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 463.75 50.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 536.50 463.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 540.50 463.75 53.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 593.50 463.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 597.50 463.75 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 652.50 463.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 656.50 463.75 46.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 702.50 463.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 706.50 463.75 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 274.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 513.75 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 329.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 513.75 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 378.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 513.75 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 36.5 487.75 m 111.5 487.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 115.5 487.75 m 178.5 487.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182.5 487.75 m 233.5 487.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237.5 487.75 m 274.5 487.75 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 329.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 487.75 m 329.5 487.75 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 378.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 487.75 m 378.5 487.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 487.75 m 441.5 487.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 513.75 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 445.5 487.75 m 482.5 487.75 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 486.5 487.75 m 536.5 487.75 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 540.5 487.75 m 593.5 487.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 597.5 487.75 m 652.5 487.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 656.5 487.75 m 702.5 487.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 706.5 487.75 m 756.5 487.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237.5 487.75 m 274.5 487.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 487.75 m 536.5 487.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182.5 463.75 m 233.5 463.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237.5 463.75 m 274.5 463.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 463.75 m 329.5 463.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 463.75 m 378.5 463.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 463.75 m 441.5 463.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 463.75 m 482.5 463.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 463.75 m 536.5 463.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 540.5 463.75 m 593.5 463.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 597.5 463.75 m 652.5 463.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182.5 452.75 m 233.5 452.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182.5 450.75 m 233.5 450.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237.5 452.75 m 274.5 452.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237.5 450.75 m 274.5 450.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 452.75 m 329.5 452.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 450.75 m 329.5 450.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 452.75 m 378.5 452.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 450.75 m 378.5 450.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 452.75 m 441.5 452.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 450.75 m 441.5 450.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 452.75 m 482.5 452.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 450.75 m 482.5 450.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 452.75 m 536.5 452.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 450.75 m 536.5 450.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 540.5 452.75 m 593.5 452.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 540.5 450.75 m 593.5 450.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 597.5 452.75 m 652.5 452.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 597.5 450.75 m 652.5 450.75 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 287.00 517.81 Td (Initial Cost ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 322.39 520.98 Td (\(d\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 385.00 517.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 444.00 517.80 Td () Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 449.50 517.81 Td (Gross Amount at Which Carried at 12/31/2015) 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 52.65 491.81 Td (Description ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 89.01 494.98 Td (\(a\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 133.25 491.81 Td (Location) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 185.10 491.81 Td (Encumbrances) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 247.50 491.81 Td (Land) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 282.75 498.81 Td (Buildings and) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 281.75 491.81 Td (Improvements) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 347.80 491.81 Td (Total) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 385.30 505.81 Td (Costs Capitalized ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 390.35 498.81 Td (Subsequent to ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 390.95 491.81 Td (Acquisition ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 426.93 494.98 Td (\(e\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 444.00 491.81 Td () Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 455.50 491.81 Td (Land) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 490.25 498.81 Td (Buildings and) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 489.25 491.81 Td (Improvements) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 555.15 491.81 Td (T) Tj ET Q q 0 0 0 rg BT 559.18 491.81 Td (otal ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 572.20 494.98 Td (\(b\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 604.65 498.81 Td (Accumulated ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 601.90 491.81 Td (Depr) Tj ET Q q 0 0 0 rg BT 616.94 491.81 Td (eciation ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 642.01 494.98 Td (\(c\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 668.20 498.81 Td (Date of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 659.35 491.81 Td (Construction) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 709.35 491.81 Td (Date Acquired) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 479.80 Td (2819 Loker Avenue East) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 118.00 479.80 Td (Carlsbad, California) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 185.00 479.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 223.65 479.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 240.00 479.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 243.60 479.80 Td (7,200,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 281.00 479.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 295.15 479.80 Td (14,170,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 336.00 479.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 344.10 479.80 Td (21,370,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 385.00 479.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 431.65 479.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 444.00 479.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 448.00 479.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 451.60 479.80 Td (7,200,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.00 479.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 502.10 479.80 Td (14,170,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.00 479.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.15 479.80 Td (21,370,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 600.00 479.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 624.55 479.80 Td (\(368,829) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 649.65 479.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 672.00 479.80 Td (1998) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 712.00 479.80 Td (December-14) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 467.80 Td (Bishops Square) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 118.00 467.80 Td (Dublin, Ireland) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 199.15 467.80 Td (60,201,120) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 264.65 467.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 295.15 467.80 Td (53,643,075) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 344.10 467.80 Td (53,643,075) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 408.30 467.85 Td (\(1,129,364) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 438.65 467.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 472.65 467.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 502.10 467.80 Td (52,513,711) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.15 467.80 Td (52,513,711) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 619.30 467.80 Td (\(1,088,810) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 649.65 467.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 672.00 467.80 Td (2001) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 717.15 467.80 Td (March-15) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 39.00 455.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 118.00 455.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 185.00 455.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 199.15 455.80 Td (60,201,120) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 240.00 455.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 243.60 455.80 Td (7,200,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 281.00 455.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 295.15 455.80 Td (67,813,075) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 336.00 455.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 344.10 455.80 Td (75,013,075) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 385.00 455.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 408.30 455.85 Td (\(1,129,364) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 438.65 455.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 444.00 455.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 448.00 455.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 451.60 455.80 Td (7,200,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.00 455.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 502.10 455.80 Td (66,683,711) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.00 455.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.15 455.80 Td (73,883,711) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 600.00 455.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 619.30 455.80 Td (\(1,457,639) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 649.65 455.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 679.00 455.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 709.00 455.80 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 428.25 Td (\(a\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 428.25 Td (Assets consist of an industrial building and an of) Tj ET Q q 0 0 0 rg BT 248.79 428.25 Td (fice building.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 410.25 Td (\(b\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 410.25 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 270.30 410.25 Td ($77.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.20 410.25 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.36 410.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.94 410.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 392.25 Td (\(c\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 392.25 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 538.66 392.25 Td (The estimated useful lives for computing depreciation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 380.25 Td (are generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.41 380.25 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.41 380.25 Td ( years for furniture and fixtures, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.64 380.25 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.64 380.25 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.97 380.25 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.97 380.25 Td ( years for electrical and mechanical installations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.10 380.25 Td (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.10 380.25 Td ( years for buildings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 362.25 Td (\(d\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 362.25 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 36.00 344.25 Td (\(e\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.00 344.25 Td (Includes the ef) Tj ET Q q 0 0 0 rg BT 112.68 344.25 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 402.28 344.25 Td (December31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.86 344.25 Td ( for the property that is denominated in a foreign currency) Tj ET Q q 0 0 0 rg BT 712.35 344.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 36.00 308.25 Td (The changes in total r) Tj ET Q q 0 0 0 rg BT 128.60 308.25 Td (eal estate assets for) Tj ET Q q 0 0 0 rg BT 209.77 308.25 Td ( the years ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.43 308.25 Td (December) Tj ET Q q 0 0 0 rg BT 324.56 308.25 Td ( 31,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.56 308.25 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 256.75 238.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 256.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 256.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 256.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 226.75 238.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 226.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 226.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 226.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 196.75 238.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 196.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 196.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 196.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 166.75 238.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 166.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 166.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 166.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 136.75 238.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 136.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 136.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 136.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 106.75 238.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 106.75 84.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 106.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 106.75 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 274.5 271.75 m 358.5 271.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 271.75 m 446.5 271.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 181.75 m 358.5 181.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 167.75 m 358.5 167.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 165.75 m 358.5 165.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 181.75 m 446.5 181.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 167.75 m 446.5 167.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 165.75 m 446.5 165.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 106.75 m 358.5 106.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 92.75 m 358.5 92.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 90.75 m 358.5 90.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 106.75 m 446.5 106.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 92.75 m 446.5 92.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 90.75 m 446.5 90.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 306.00 276.43 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.00 276.43 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 39.00 261.43 Td (Gross real estate assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.00 261.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 39.00 246.42 Td (Balance, beginning of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.00 246.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.65 246.42 Td (21,370,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.00 246.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 246.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 231.42 Td (Additions during the period:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.00 231.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 216.42 Td (Acquisitions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.65 216.42 Td (53,643,075) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.65 216.42 Td (21,370,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 201.42 Td (Other additions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.15 201.42 Td (339,407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 201.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 186.42 Td (Effect of changes in foreign currency exchange rates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.30 186.47 Td (\(1,468,771) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 186.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 186.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 39.00 171.42 Td (Balance, end of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.00 171.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.65 171.42 Td (73,883,711) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.00 171.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.65 171.42 Td (21,370,000) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 39.00 156.43 Td (Accumulated Depreciation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.00 156.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 39.00 141.42 Td (Balance, beginning of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.00 141.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.80 141.47 Td (\(14,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 141.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.00 141.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 141.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 126.42 Td (Depreciation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.30 126.47 Td (\(1,454,599) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 126.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.80 126.47 Td (\(14,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.65 126.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 111.42 Td (Effect of changes in foreign currency exchange rates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.15 111.42 Td (11,539) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 111.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 39.00 96.42 Td (Balance, end of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.00 96.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.30 96.47 Td (\(1,457,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 96.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.00 96.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.80 96.47 Td (\(14,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.65 96.42 Td (\)) 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 /F2 10.00 Tf ET q 0 0 0 rg BT 273.85 742.25 Td (SIGNA) Tj ET Q q 0 0 0 rg BT 304.78 742.25 Td (TURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.25 Td (Pursuant to the requirements of Section13 or 15\(d\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 384.87 718.25 Td (Act of 1934, the Registrant has duly caused ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.25 Td (this ) Tj ET Q q 0 0 0 rg BT 66.40 706.25 Td (Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized representative.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175.5 628.75 m 402.5 628.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 668.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.00 668.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 673.87 Td (HINES GLOBAL) Tj ET Q q 0 0 0 rg BT 250.12 673.87 Td ( REIT) Tj ET Q q 0 0 0 rg BT 274.66 673.87 Td ( II, INC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 663.87 Td (\(registrant\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 648.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.00 648.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 648.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 633.42 Td (March 24, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.00 633.42 Td (By:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 633.42 Td (/s/ Sherri W. Schugart) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 618.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.00 618.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 618.87 Td (Sherri W. Schugart) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 603.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.00 603.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 603.87 Td (President and Chief Executive Officer) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 575.25 Td (Pursuant to the requirements of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 294.05 575.25 Td (Act of 1934, this Report has been signed below by the following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 563.25 Td (persons on behalf of the Registrant and in the capacities indicated on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.69 563.25 Td (March24, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.29 563.25 Td (.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 526.75 m 186.5 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 526.75 m 427.5 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 526.75 m 562.5 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 496.75 m 186.5 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 451.75 m 186.5 451.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 406.75 m 186.5 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 361.75 m 186.5 361.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 316.75 m 186.5 316.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 271.75 m 186.5 271.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 226.75 m 186.5 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 181.75 m 186.5 181.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 531.48 Td (Signature) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 296.55 531.48 Td (Title) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.50 531.48 Td (Date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 517.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 517.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 517.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 502.32 Td (/s/ Jeffrey C. Hines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.25 502.32 Td (Chairman of the Board of Directors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.70 502.32 Td (March 24, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 487.32 Td (Jeffrey C. Hines) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 487.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 487.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 472.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 472.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 472.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 457.32 Td (/s/ Sherri W. Schugart) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.20 457.32 Td (President and Chief Executive Officer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.70 457.32 Td (March 24, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 442.32 Td (Sherri W. Schugart) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.25 442.32 Td (\(Principal Executive Officer\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 442.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 427.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 427.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 427.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 412.32 Td (/s/ Ryan T. Sims) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.30 412.32 Td (Chief Financial Officer and Secretary) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.70 412.32 Td (March 24, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 397.32 Td (Ryan T. Sims) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.65 397.32 Td (\(Principal Financial Officer\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 397.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 382.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 382.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 382.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 367.32 Td (/s/ J. Shea Morgenroth) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.85 367.32 Td (Chief Accounting Officer and Treasurer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.70 367.32 Td (March 24, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 352.32 Td (J. Shea Morgenroth) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.20 352.32 Td (\(Principal Accounting Officer\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 352.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 337.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 337.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 337.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 322.32 Td (/s/ Charles M. Baughn) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.80 322.32 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.70 322.32 Td (March 24, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 307.32 Td (Charles M. Baughn) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 307.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 307.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 292.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 292.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 292.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 277.32 Td (/s/ Humberto Burt Cabaas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.80 277.32 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.70 277.32 Td (March 24, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 262.32 Td (Humberto Burt Cabaas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 262.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 262.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 247.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 247.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 247.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 232.32 Td (/s/ Dougal A. Cameron) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.80 232.32 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.70 232.32 Td (March 24, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 217.32 Td (Dougal A. Cameron) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 217.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 217.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 202.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 202.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 202.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 187.32 Td (/s/ John O. Niemann, Jr.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.80 187.32 Td (Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.70 187.32 Td (March 24, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 171.42 Td (John O. Niemann, Jr.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 172.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 172.32 Td () Tj ET Q BT /F1 10.00 Tf ET endstream endobj 181 0 obj <> endobj 182 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 15.60 Td (88) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 256.15 749.25 Td (INDEX ) Tj ET Q q 0 0 0 rg BT 290.70 749.25 Td (T) Tj ET Q q 0 0 0 rg BT 297.19 749.25 Td (O EXHIBITS) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 715.75 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 715.75 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 115.50 715.75 445.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 660.75 50.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 660.75 15.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 115.50 660.75 445.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 614.75 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 614.75 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 115.50 614.75 445.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 559.75 50.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 559.75 15.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 115.50 559.75 445.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 504.75 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 504.75 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 115.50 504.75 445.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 431.75 50.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 431.75 15.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 115.50 431.75 445.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 376.75 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 376.75 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 115.50 376.75 445.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 312.75 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 312.75 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 115.50 312.75 445.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 248.75 50.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 248.75 15.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 115.50 248.75 445.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 175.75 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 175.75 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 115.50 175.75 445.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 111.75 50.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 111.75 15.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 115.50 111.75 445.00 -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 50.5 715.75 m 100.5 715.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 115.5 715.75 m 560.5 715.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 715.75 m 100.5 715.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 115.5 715.75 m 560.5 715.75 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 60.70 729.20 Td (Exhibit) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 68.35 720.20 Td (No.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 315.25 720.20 Td (Description) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 69.35 707.01 Td (3.1) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 707.01 Td (Articles of Amendment and Restatement of Hines Global REIT II, Inc. \(filed as Exhibit 3.1 to Pre- Effective Amendment) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 698.01 Td (No. 5 to the Registrant's Registration Statement on Form S-11, File No. 333-191106 \(the Registration Statement\) on) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 689.01 Td (August 15, 2014 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 69.35 675.01 Td (3.2) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 675.01 Td (Articles Supplementary of Hines Global REIT II, Inc. \(filed as Exhibit 3.1 to Post-Effective Amendment No. 1 to the) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 666.01 Td (Registration Statement on December 12, 2014 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 69.35 652.01 Td (3.3) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 652.01 Td (Amended and Restated Bylaws of Hines Global REIT II, Inc. \(filed as Exhibit 3.2 to Pre-Effective Amendment No. 5 to) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 643.01 Td (the Registration Statement on August 15, 2014 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 69.35 629.01 Td (3.4) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 629.01 Td (Articles Supplementary of Hines Global REIT II, Inc. \(filed as Exhibit 3.1 to Post-Effective Amendment No. 6 to the) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 620.01 Td (Registration Statement on August 12, 2015 and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 69.35 606.01 Td (3.5) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 606.01 Td (Amendment No. 1 to Amended and Restated Bylaws of Hines Global REIT II, Inc., dated September 23, 2015 \(filed as) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 597.01 Td (Exhibit 3.5 to Post-Effective Amendment No. 7 to the Registration Statement on November 17, 2015 and incorporated by) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 588.01 Td (reference herein\)) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 69.35 574.01 Td (4.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 574.01 Td (Forms of Subscription Agreement \(filed as Appendix B-1 and Appendix B-2 to the Prospectus filed on August 12, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 565.01 Td (and incorporated by reference herein\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 69.35 551.01 Td (4.2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 551.01 Td (Hines Global REIT II, Inc. Distribution Reinvestment Plan \(filed as Appendix C to the Prospectus filed on August 12,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 542.01 Td (2015 and incorporated by reference herein\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.25 527.32 Td (10.1) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 527.21 Td (Advisory Agreement, dated as of August 15, 2014, among Hines Global REIT II Advisors LP, Hines Global REIT II) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 518.21 Td (Properties LP, and Hines Global REIT II, Inc. \(filed as Exhibit 10.2 to Pre-Effective Amendment No. 5 to the) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 509.21 Td (Registration Statement on August 15, 2014 and incorporated by reference herein\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 66.25 495.32 Td (10.2) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 495.21 Td (Amended and Restated Escrow Agreement, dated as of December 12, 2014, by and among Hines Securities Inc., Hines) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 486.21 Td (Global REIT II, Inc. and UMB Bank, N.A. \(filed as Exhibit 10.3 to Post-Effective Amendment No. 1 to the Registration) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 477.21 Td (Statement on December 12, 2014 and incorporated by reference herein\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 66.25 463.32 Td (10.3) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 463.21 Td (Form of Indemnification Agreement entered into between Hines Global REIT II, Inc. and each of the following persons) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 454.21 Td (as of August 15, 2014: Jeffrey C. Hines, Charles M. Baughn, Humberto Cabaas, Dougal A. Cameron, John O. Niemann,) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 445.21 Td (Jr., Sherri W. Schugart, Ryan T. Sims, David L. Steinbach, Kevin L. McMeans and J. Shea Morgenroth \(filed as Exhibit) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 436.21 Td (10.4 to the Registration Statement on September 11, 2013 and incorporated by reference herein\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 66.25 422.32 Td (10.4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 422.21 Td (Waiver to Hines Global REIT II Advisory Agreement \(filed as Exhibit 10.1 to the Registrants Current Report on Form 8-) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 413.21 Td (K on September 24, 2014 and incorporated by reference herein\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.25 399.32 Td (10.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 381.42 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 399.21 Td (Purchase and Sale 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 118.00 390.21 Td (Canoga-Rincon Loker Industrial, LLC \(filed as Exhibit 10.1 to the Registrants Current Report on Form 8-K on) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 381.21 Td (November 20, 2014 and incorporated by reference herein\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.25 367.32 Td (10.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 349.42 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 367.21 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 118.00 358.21 Td (Partnership and HGREIT II 2819 Loker LP \(filed as Exhibit 10.2 to the Registrants Current Report on Form 8-K filed) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 349.21 Td (November 20, 2014 and incorporated by reference herein\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.25 335.32 Td (10.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 335.21 Td (Uncommitted Loan Agreement, dated as of December 15, 2014, by andbetweenHines Global REIT II, Inc.,as borrower,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 326.21 Td (andHines Interests Limited Partnership, as lender \(filed as Exhibit 10.3 to the Registrants Current Report on Form 8-K) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 317.21 Td (on December 19, 2014 and incorporated by reference herein\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.25 303.32 Td (10.8) Tj ET Q BT /F1 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 303.21 Td (Selected Dealer Agreement, dated as of December 31, 2014, by and between Hines Global REIT II, Inc., Hines) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 294.21 Td (Securities, Inc., Hines Global REIT II Advisors LP and Ameriprise Financial Services, Inc. \(filed as Exhibit 10.9 to Post-) Tj ET Q BT /F1 9.00 Tf ET q 0.13725490196078433 0.12156862745098039 0.12549019607843137 rg BT 118.00 285.21 Td (Effective Amendment No. 3 to the Registration Statement on March 5, 2015 and incorporated by reference herein\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 66.25 271.32 Td (10.9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 272.01 Td (Particulars and Conditions of Sale of Bishop's Square, Bishop's Street/Kevin Street Lower, Dublin 2, dated as of January) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 263.01 Td (30, 2015, by and between Bishop Ireland GREIT II Limited and Violet Yarrow Real Estate \(Dublin\) Limited \(filed as) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 254.01 Td (Exhibit 10.1 to the Registrants Current Report on Form 8-K on February 5, 2015 and incorporated by reference herein\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.75 239.32 Td (10.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 240.01 Td (Facility Agreement, dated as of March 3, 2015 by and between Deutsche Girozentrale as Agent, Original Hedge) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 231.01 Td (Counterparty, Arranger, Security Trustee and Lender and Hines GREIT II Ireland Fund PLC, acting for and on behalf of) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 222.01 Td (its sub-fund Hines GREIT II Bishop Fund, as Borrower \(filed as Exhibit 10.2 to the Registrant's Current Report on Form) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 213.01 Td (8-K on March 5, 2015 and incorporated by reference herein\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.75 198.32 Td (10.11) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 199.01 Td (Amendment to Selected Dealer Agreement, dated February 27, 2015, by and among Hines Global REIT II, Inc., Hines) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 190.01 Td (Securities, Inc., Hines Global REIT II Advisors LP and Ameriprise Financial Services, Inc. \(filed as Exhibit 10.12 to) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 181.01 Td (Post-Effective Amendment No. 3 to the Registration Statement 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Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.85 635.76 Td (31.1*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 635.76 Td (Certification) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.85 621.76 Td (31.2*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 621.76 Td (Certification) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.85 607.76 Td (32.1*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 607.76 Td (Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18U.S.C., Section 1350, as adopted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 598.76 Td (pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Pursuant to SEC Release 34-47551 this Exhibit is furnished) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 589.76 Td (to the SEC herewith and shall not be deemed to be filed.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 66.00 575.76 Td (101*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 575.76 Td (The following materials from Hines Global REIT II, Inc.s 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 118.00 566.76 Td (31, 2015, filed on March 24, 2016, formatted in XBRL \(eXtensible Business Reporting Language\): \(i\) Consolidated) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 557.76 Td (Balance Sheets, \(ii\) Consolidated Statements of Operations, \(iii\) Consolidated Statements of Equity \(Deficit\), \(iv\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 548.76 Td (Consolidated 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 72.75 534.76 Td (*) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 118.00 534.76 Td (Filed herewith) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 506.00 Td () Tj ET Q endstream endobj 185 0 obj <> endobj 186 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 49.50 671.75 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.50 671.75 52.00 -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 49.50 641.75 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.50 641.75 52.00 -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 49.50 611.75 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.50 611.75 52.00 -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 49.50 581.75 346.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.50 581.75 52.00 -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 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 671.75 m 395.5 671.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 671.75 m 561.5 671.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 209.50 676.43 Td (Name) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.00 686.43 Td (Jurisdiction of) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 475.65 676.43 Td (Organization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 661.42 Td (Hines Global REIT II Properties LP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.80 661.42 Td (Delaware) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 646.42 Td (Hines Global REIT 2819 Loker GP LLC) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.80 646.42 Td (Delaware) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 631.42 Td (Hines Global REIT II 2819 Loker LP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.80 631.42 Td (Delaware) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 616.42 Td (GREIT II Bishops Holdings LLC) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.80 616.42 Td (Delaware) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 601.42 Td (GREIT II Ireland Fund Irish Collective Asset-Management Vehicle) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.10 601.42 Td (Dublin) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 586.42 Td (Bishop Ireland GREIT II Limited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.10 586.42 Td (Dublin) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 571.42 Td (Hines Global REIT II 891 Coronado LLC) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.80 571.42 Td (Delaware) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 187 0 obj <> endobj 188 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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