Three Hartman REITs Announce Definitive Merger Agreement

Hartman Short Term Income Properties XX Inc., Hartman Income REIT Inc., and Hartman Short Term Income Properties XIX Inc., three affiliated real estate investment trusts, have signed multiple definitive merger agreements, according to a joint announcement issued by the companies.

Hartman XX is a publicly registered non-traded REIT, while Hartman Income REIT and Hartman XIX are private REITs.

Hartman XIX and Hartman Income REIT plan to merge with and into Hartman XX, with Hartman XX surviving the merger. In addition, Hartman Income REIT Operating Partnership LP will merge with and into Hartman XX Limited Partnership, the surviving entity. The REIT mergers require the approval of their respective stockholders.

“The special committees of the boards have put forth a tremendous effort on behalf of their respective shareholders and have structured a deal that truly results in a ‘win-win’ for all the shareholders involved,” said Allen Hartman, chief executive officer and president of the three Hartman REITs.

The Hartman XIX merger agreement states that each share of Hartman XIX common stock will automatically convert into the right to receive 9,171.98 shares of common stock of Hartman XX common stock.

Each share of 8 percent cumulative preferred stock of Hartman XIX will convert into the right to receive 1.238477 shares of Hartman XX common stock, and each share of 9 percent cumulative preferred stock will convert into the right to receive 1.238477 shares of Hartman XX common stock.

With respect to the Hartman Income REIT merger agreement, each share of Hartman Income REIT common stock will convert into the right to receive 0.752222 shares of Hartman XX common stock, and each share of subordinate Hartman Income REIT common stock will convert into the right to receive 0.752222 shares of Hartman XX common stock.

In connection with the partnership merger, each unit of limited partnership interest in Hartman Income REIT Operating Partnership will convert into the right to receive 0.752222 units of limited partnership interests in the Hartman XX Limited Partnership.

Hartman XX is a Texas-centric real estate investment trust that commenced its initial public offering in February 2010 for up to 25 million shares of common stock priced at $10.00 per share. The board recently approved an estimated net asset value of $12.79 per share of the company’s common stock, as of December 31, 2016.

Hartman XX’s offering was declared effected by the SEC in February 2010 and closed in March 2016 after raising $176 million in investor equity. The REIT currently owns 17 properties with a combined investment cost of $275.5 million, according to Summit Investment Research.

Hartman Income REIT is a private REIT that focuses on acquiring and operating income producing office, retail and light industrial properties and owns 19 properties in the Houston, Dallas and San Antonio, Texas metropolitan areas. The company was formed as a Maryland corporation in January 2008.

Hartman XIX is a private REIT formed as a Texas corporation in January 2007 and focuses on acquiring office, retail and light industrial properties. The company currently owns nine assets.

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