HGIT raises $717M, expands DST program to $1.7B; NAV slips to $9.78 as 38% of distributions funded from non-operating sources

Filed August 14, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 14, 2025 · ~2 min read

Key Changes

• high

  DST Program net proceeds surged from $902M to $1.7B, adding three new risk factors: litigation exposure if investors lose tax benefits, performance risk from guaranteed master leases, and liquidity constraints that may force 1031 exchanges over cash sales.

  Risk Factors: DST Program verify on EDGAR →
• high

  38% of distributions for the six months ended June 30, 2026 were funded from non-operating sources, up from 25% in the prior year, as operating cash flow covered only 62% of the $96.1M declared.

  MD&A: Distribution Coverage verify on EDGAR →
• high

  NAV per share declined from $9.84 to $9.78 (−0.6%) despite $717M in capital raised and $622M in acquisitions, as year-to-date total return for Class I shares fell from 3.33% to 2.81%.

  MD&A: NAV verify on EDGAR →