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HART Hartman vREIT XXI

Hartman vREIT XXI is a Texas-centric real estate investment company formed to acquire, develop and operate a diverse portfolio of value-oriented commercial properties—those with significant potential for growth in income and value from re-tenanting, repositioning, redevelopment, and operational enhancements. For additional information about these investments, please visit HartmanREITs.com.

Company profile

Ticker
HART
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Hartman vREIT XXI Operating Partnership, L.P. • Hartman vREIT XXI Holdings, LLC • Hartman Village Pointe, LLC • Hartman Richardson Tech Center LLC • Hartman Spectrum, LLC • Hartman 11211, LLC • Hartman 1400 Broadfield LLC • Hartman 16420 Park Ten LLC • Hartman 7915 FM 1960 LLC • Hartman Timberway II, LLC ...
IRS number
383978914

Calendar

16 Aug 21
19 Oct 21
31 Dec 21
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Apr 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 834K 834K 834K 834K 834K 834K
Cash burn (monthly) (positive/no burn) (positive/no burn) 224K 260.33K (positive/no burn) (positive/no burn)
Cash used (since last report) n/a n/a 819.49K 952.42K n/a n/a
Cash remaining n/a n/a 14.51K -118.42K n/a n/a
Runway (months of cash) n/a n/a 0.1 -0.5 n/a n/a

Beta Read what these cash burn values mean

Financial report summary

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Risks
  • Health concerns arising from the outbreak of a health epidemic or pandemic, including the COVID-19 coronavirus, may have an adverse effect on our business.
  • Shares of our common stock are illiquid. No public market currently exists for our shares, and our charter does not require us to liquidate our assets or list our shares on an exchange by any specified date. As a result, it will be difficult for our stockholders to sell their shares, and if they are able to sell their shares, they will likely sell them at a substantial discount.
  • We have limited operating history which makes our future performance difficult to predict.
  • Our cash distributions are not guaranteed, may fluctuate and may constitute a return of capital or taxable gain from the sale or exchange of property.
  • If we make distributions from sources other than our cash flow from operations, we will have fewer funds available for the acquisition of properties, our stockholders’ overall return may be reduced and the value of a share of our common stock may be diluted.
  • If we do not raise substantial funds, we will be limited in the number and type of investments we may make, and the value of your investment in us will fluctuate with the performance of the specific properties we acquire.
  • Because we are dependent upon our advisor and its affiliates to conduct our operations, any adverse changes in the financial health of our advisor or its affiliates or our relationship with them could hinder our operating performance and the return on our stockholders’ investment.
  • Our ability to implement our investment strategy is dependent, in part, upon the ability of our dealer manager to successfully conduct our initial public offering.
  • If we are unable to find suitable investments or we experience delays in doing so, we may not be able to achieve our investment objectives or pay distributions.
  • If we raise substantial offering proceeds in a short period of time, we may not be able to invest all of the net offering proceeds promptly, which may cause our distributions and your investment returns to be lower than they otherwise would.
  • We have disclosed estimated net asset values (NAVs) per share of our common stock as of December 31, 2020, The NAV per share we disclose in the future may vary significantly from the value as of December 31, 2020 as we purchase additional assets and raise additional capital from the sale of our shares. The estimated NAV per share values that we disclose may not be an accurate reflection of the fair value of our assets and liabilities and likely will not represent the amount of net proceeds that would result if we were liquidated.
  • The value of a share of our common stock may be diluted if we pay a stock dividend.
  • We may change our targeted investments, our policies and our operations without stockholder consent.
  • We will pay substantial fees and expenses to our advisor and its affiliates. These fees were not negotiated at arm’s length, may be higher than fees payable to unaffiliated third parties, and may reduce cash available for investment.
  • We will reimburse our advisor for amounts it pays in connection with the acquisition or development of a property whether or not we ultimately acquire the asset.
  • Our stockholders are limited in their ability to sell shares of common stock pursuant to our share repurchase program. Stockholders may not be able to sell any shares of our common stock back to us, and if they do sell their shares, they may not receive the price they paid.
  • Investors who invest in us at the beginning of our initial public offering may realize a lower rate of return than later investors.
  • If we internalize our management functions, our stockholders’ interest in us could be diluted and we could incur other significant costs associated with being self-managed.
  • If we were to internalize our management or if another investment program, whether sponsored by our sponsor or otherwise, hires the employees of our advisor in connection with its own internalization transaction or otherwise, our ability to conduct our business may be adversely affected.
  • If we are unable to obtain funding for future capital needs, cash distributions to our stockholders could be reduced and the value of our investments could decline.
  • Our advisor and its affiliates, including all of our executive officers, our affiliated directors and other key real estate professionals, will face conflicts of interest caused by their compensation arrangements with us, which could result in actions that are not in the long-term best interests of our stockholders.
  • We may compete with affiliates of our sponsor, including Hartman Short Term Income Properties XX, Inc., for opportunities to acquire or sell investments, which may have an adverse impact on our operations.
  • Our advisor will face conflicts of interest relating to joint ventures that we may form with its affiliates; which conflicts could result in a disproportionate benefit to the other venture partners at our expense.
  • Our advisor, the real estate professionals assembled by our advisor and their affiliates and officers will face competing demands relating to their time, and this may cause our operations and your investment to suffer.
  • Our executive officers and some of our director’s face conflicts of interest related to their positions with our advisor and its affiliates, which could hinder our ability to implement our business strategy and to generate returns to you.
  • Maryland law and our organizational documents limit your right to bring claims against our officers and directors.
  • Our charter limits the number of shares a person may own, which may discourage a takeover that could otherwise benefit our stockholders.
  • We may issue preferred stock, convertible stock or other classes of common stock, which issuance could adversely affect the holders of our common stock.
  • Our UPREIT structure may result in potential conflicts of interest with limited partners in our operating partnership whose interests may not be aligned with those of our stockholders.
  • Our stockholders have limited control over changes in our policies and operations, which increases the uncertainty and risks faced by our stockholders.
  • Our stockholders’ investment returns may be reduced if we are required to register as an investment company under the Investment Company Act; if we are subject to registration under the Investment Company Act, we will not be able to continue our business.
  • Although we have opted out of certain anti-takeover provisions of Maryland law, our board of directors could opt into these protections in the future, which may make it more difficult for us to be acquired and may prevent stockholders from receiving a premium price for their stock in connection with a business combination.
  • We may become subject to certain other anti-takeover provisions of Maryland law that would make it harder for stockholders to change the composition of our board of directors and may prevent stockholders from receiving a premium price for their shares in connection with an unsolicited takeover.
  • Our charter includes an anti-takeover provision that may discourage a stockholder from launching a tender offer for our shares.
  • A decrease in demand for office, retail or industrial space may have a material adverse effect on our financial condition and results of operations.
  • Economic and regulatory changes that impact the real estate market generally may decrease the value of our investments and weaken our operating results.
  • Global and U.S. market, political and economic conditions may adversely affect our liquidity and financial condition and those of our tenants.
  • Market trends and other conditions outside of our control could decrease the value of our investments and weaken our operating results.
  • An additional downturn in oil demand or continued weakening of the oil and gas markets could adversely affect our financial condition, results of operations, and our ability to borrow funds.
  • The loss or downsizing of a significant tenant in a property could adversely affect our financial condition, results of operations, ability to borrow funds and cash flows.
  • If we enter into long-term leases with our tenants, those leases may not result in fair value over time.
  • Downturn in our tenants’ businesses may reduce our revenues and cash flows.
  • We are subject to governmental regulations that may affect the renovations to, and use of, our properties.
  • We face significant competition, which may decrease the occupancy and rental rates of our properties.
  • We may be unable to complete acquisitions and successfully operate acquired properties.
  • Properties that have significant vacancies could be difficult to sell, which could diminish the return on your investment.
  • We may own certain properties subject to ground leases and other restrictive agreements that limit our uses of the properties, restrict our ability to sell or otherwise transfer the properties and expose us to the loss of the properties if such agreements are breached by us, terminated or not renewed.
  • Real estate assets are illiquid, and we may not be able to sell our properties when we desire.
  • Future terrorist activity or engagement in war by the United States may have an adverse effect on our financial condition and operating results.
  • From time to time, we may be involved in legal proceedings, lawsuits and other claims. Unfavorable resolution of litigation matters and disputes could have a material adverse effect on our financial condition.
  • Our joint venture partners could take actions that decrease the value of an investment to us and lower our stockholders’ overall return.
  • Because we will rely on our advisor, its affiliates and third party sub-managers to manage the day-to-day affairs of any properties we may acquire, should the staff of a particular property perform poorly, our operating results for that property will similarly be hindered and our net income may be reduced.
  • If we are unable to sell a property for the price, on the terms, or within the time frame we desire, it could limit our ability to pay cash distributions to our stockholders.
  • Government entities and contractors may cause unforeseen delays and increase costs to renovate properties that we may acquire, which may reduce our net income and cash available for distributions to you.
  • We may be required to make rent or other concessions and significant capital expenditures to improve our properties in order to retain and attract tenants, which could adversely affect our financial condition, results of operations and cash flow.
  • Costs of responding to both known and previously undetected environmental contamination and hazardous conditions may decrease our cash flows and limit our ability to make distributions.
  • Properties acquired by us may have toxic mold or asbestos that could result in substantial liabilities to us.
  • Uninsured losses relating to real property or excessively expensive premiums for insurance coverage could reduce our cash flows and the return on our stockholders’ investments.
  • Our properties may be dispersed geographically and across various markets and sectors.
  • We may be limited in our ability to diversify our investments, making us more vulnerable economically than if our investments were diversified.
  • Our industrial tenants may be adversely affected by a decline in manufacturing activity in the U.S.
  • Our use of debt will reduce cash available for distributions and may expose us to the risk of default under our debt obligations.
  • We may incur mortgage indebtedness and other borrowings, which increases our risk of loss due to foreclosure.
  • High mortgage interest rates may make it difficult for us to finance or refinance properties, which could reduce the number of properties we can acquire, our net income and the amount of cash distributions we can make.
  • We may not be able to access financing sources on attractive terms, which could adversely affect our ability to execute our business plan.
  • Lenders may require us to enter into restrictive covenants relating to our operations, which could limit our ability to make distributions to our stockholders.
  • Increases in interest rates could increase the amount of our debt payments and limit our ability to pay distributions to our stockholders.
  • We have broad authority to incur debt, and high debt levels could hinder our ability to make distributions and decrease the value of your investment.
  • Failure to qualify as a REIT would reduce our net earnings available for investment or distribution.
  • Our charter will not permit any person or group to own more than 9.8% of our outstanding common stock or of our outstanding capital stock of all classes or series, and attempts to acquire our common stock or our capital stock of all other classes or series in excess of these 9.8% limits would not be effective without an exemption from these limits by our board of directors.
  • If our operating partnership failed to qualify as a partnership or is not otherwise disregarded for U.S. federal income tax purposes, we would cease to qualify as a REIT.
  • Complying with REIT requirements may limit our ability to hedge effectively and may cause us to incur tax liabilities.
  • If you fail to meet the fiduciary and other standards under ERISA or the Internal Revenue Code as a result of an investment in our stock, you could be subject to criminal and civil penalties.
Management Discussion
  • Comparison of the three and six months ended June 30, 2021 versus June 30, 2020.
  • As of June 30, 2021 and 2020, we owned 10 properties comprising approximately 881,215 square feet. As of June 30, 2021 and 2020, we owned a 2.47% interest in an affiliate special purpose entity which owns 39 office, retail and light industrial properties in Houston, Dallas, and San Antonio, Texas, which is referred to as the Hartman SPE interest. As of June 30, 2021, we owed an approximately 83% tenant in common interest in an office property comprising approximately 78,289 square feet located at 3100 Weslayan in Houston, Texas which was acquired on December 29, 2020.
  • Revenues – The primary source of our revenue is rental revenues and tenant reimbursements. For the three months ended June 30, 2021 and 2020 we had total rental revenues and tenant reimbursements of $3,172,000 and $3,223,000, respectively. For the six months ended June 30, 2021 and 2020, we had total rental revenues and tenants reimbursement of $6,468,000 and $6,592,000, respectively. The decrease is attributable to the decrease in average base rental rate over the comparative periods. Notwithstanding the increase in same store portfolio occupancy, average net effective base rent per occupied square foot, on an annual basis and excluding tenant in common interest, decreased from $22.46 to $20.64.
Content analysis
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H.S. junior Avg
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Proxies

No filings