Kbs Real Estate Invt Tr Iii Inc. · OTC:KBSR
Kbs Real Estate Invt Tr Iii — KBS Real Estate Investment Trust III — Corporate Update (May 2019)
26 slides from Kbs Real Estate Invt Tr Iii's corporate update, May 30, 2019
Slide 1: KBS Real Estate Investment Trust III Portfolio Update Meeting
KBS Real Estate Investment Trust III Portfolio Update Meeting | May 31, 2019
Slide 2: Important Disclosures
IMPORTANT DISCLOSURES The information contained herein should be read in conjunction with, and is qualified by, the information in KBS Real Estate Investment Trust Ill’s (the “Company” or “KBS REIT Ill") Annual Report on Form 10-K for the year ended December 31, 2018 (the “Annual Report”), and in th
Slide 3: About KBS
| About KBS + Formed by Peter Bren and Chuck Schreiber in 1992. Over 26 years of investment and management experience with extensive long-term investor relationships. + Transactional volume in excess of $38.9 billion', AUM of $11.5 billion! and 36.6 million square feet under management'. + 8th Large
Slide 4: Regional Focus Map
Regional Focus Map ~ eo if NEW YORK CITY SAN FRANCISCO BAY AREA @ \ SILICON VALLEY [ASHINGTON, D.C. LOS ANGELE: ORANGE COUNTY /SAN DIEGO e Gateway Target e First-Tier Target * Strong Employment/Growth SOUTHERN FLORIDA KBS Offices KBS =
Slide 5: KBS REIT III Asset Map
| KBS REIT Ill Asset Map > Current Equity Assets Sold and Liquidated Assets (equity and debt) : KBS ="
Slide 6: Office Market Update
Office Market Update The economy and the national real estate market continue to do well. The national real estate market is not behaving like a late cycle market. We have an accelerating economy, accelerating tenant demand and slowing new construction. With construction cost rising rapidly because
Slide 7: Portfolio Highlights (As of March 31, 2019)
Portfolio Highlights (As of March 31, 2019, unless otherwise noted) FUND OVERVIEW PORTFOLIO OVERVIEW ' Primary Offering Broke Escrow December 2018 Estimated Value of Portfolio * May 24, 2011 $4.3 bilion Primary Offering Closed Current Cost Basis * July 28, 2015 $3.8 bilion Current Rentable Square Fe
Slide 8: Portfolio Summary (As of March 31, 2019)
Portfolio Summary (As of March 31, 2019) Purchase Occupancy Occupancy _ Leased Acquisiion Price Cost Basis [1] at at Occupancy Location Date (000s) (000's) Acavisition 3/31/2019 Change Domain Gateway ‘Austin, Dk 183.911 09/29/11 «$43,189 $9,021 100% 100% % Town Center 1-3 Plano, TX 522,043 03/27/12
Slide 9: Capital Management (As of March 31, 2019)
Capital Management (As of March 31, 2019, unless otherwise noted) Initial Debt Maturities $1,400,000 $1,311,994") Total debt © $2.3 Billion $1,200,000 $1,000,000 = $800,000 Loan-To- © 53% 8 Value ° 2 $600,000 $400,000 | $285,573 $294,894 4 101 $125,000 $200,000 Average cost © 3.89% per annum of debt
Slide 10: Portfolio Overview (As of March 31, 2019)
Portfolio Overview (As of March 31, 2019) Occupied SF Expirations as of March 31, 2019 “= ie No. of Assets 30 2 Total Rentable Sa. Ft” 11,192,760 : Wtd Avg Lease Term 4.5 years ; Economic Occupancy 92% ° Leased Occupancy 94% No. of Tenants 835 | + Washington D.C.» Atlanta © Denver ® Austin ower ® Mi
Slide 11: Tenancy Overview (As of March 31, 2019)
Tenancy Overview (As of March 31, 2019) Portfolio Tenant Allocation by Industry (By Annualized Base Rent)” Top 10 Tenants" Industry Property % Village Center Station | Charter Communications Communications oneag nage mate 36% 500 W. Madison RBC Capital Markets, LLC Finance The Almaden Financial Plaz
Slide 12: Property Updates
Property Updates
Slide 13: Property Update: Domain Gateway
Property Update Domain Gateway Location: Austin, TX Property Type: Class A Office Acquisition Date: September 29, 2011 Purchase Price: $43.2 milion Size: 183,911 Sq. Ft. Leased Occupancy: 100% Tenant %of Bldg. CIT Bank N.A. (lease expires in 8/31/19) 100% Indeed, Inc. (est. commencement of 9/10/19)
Slide 14: Property Update: 17th Street
Property Update 171 17* Street Location: Atlanta, GA Property Type: Class A Office Acauisition Date: August 25, 2014 Purchase Price: $132.2 milion Size: 510,268 Sq. Ft. Leased Occupancy: 100% Largest Tenants Zot Bida, Wells Fargo 30% Amall Golden Gregory 24% + The anchor tenant, Wells Fargo, recentl
Slide 15: Property Update: Spear Street
Property Update 201 Spear Street Location: San Francisco, CA Properly Type: Class A Office Acquisition Date’ December 3, 2013 : Purchase Price: $120.6 million * Size: 252,591 Sq. Ft. = Leased Occupancy: 100% = Largest Tenants % of Bldg. WeWork 31% Verizon 17% * Bridge Bank renewed and will expand in
Slide 16: Property Update: Congress
Property Update 515 Congress Location: Austin, TX Property Type: Class A Office Acquisition Date: August 31, 2015 Purchase Price: $112.4 million Size: 263,058 Sq. Ft. Leased Occupancy: 94% Largest Tenants Bot Bida, Bank of America 16% Cloudera 11% * Q1 2019 has seen multiple new and renewal leases s
Slide 17: Property Update: Preston Commons
Property Update Preston Commons Location: Dalllas, TX Property Type: Class A Office Acquisition Date: June 19, 2013 Purchase Price: $109.1 milion Size’ 427,799 Sq. Ft. Leased Occupancy: 96% Largest Tenants Zot Bida, JP Morgan Chase Bank N.A. 12% KeyBank National Association &% + Solidified two of th
Slide 18: Property Update: Hardware Village Apartments Development
o Property Update Hardware Village Apartments Development Location: Salt Lake City, UT Property Type: Class A Multifamily Deal Structure: JV with Salt Development Deal Executed: August 26, 2016 Projected Development Cost: $134.3 million No. of Buildings: 2 Size: 453-unit West building Leased: 24.9%
Slide 19: Property Update: Hardware Village Apartments Development
Property Update Hardware Village Apartments Development ° KBS °
Slide 20: Stockholder Performance
Stockholder Performance Ny 38 KBS REIT Ill provides its estimated value per share to assist broker dealers that participated in KBS REIT Ill's now-terminated initial public offering in meeting their customer account statement reporting obligations. This valuation was performed in accordance with the
Slide 21: Distribution History & Yield
Distribution History & Yield = Distribution History!: « June 24, 2011-Mar. 31, 2019: $0.65/share on an annualized basis = Current monthly distribution rate would equal a 6.50% annualized rate based on the initial $10.00 primary offering price per share, or 5.41% based on the December 3, 2018 estimat
Slide 22: Stockholder Hypothetical Performance
Stockholder Hypothetical Performance Hypothetical Performance of Early and Late Investors Assumes alll distributions have been taken in cash and stockholder has held shares since the dates below Sum of Estimated Value Per Share as of Estimated Value Cumulative Cash Distributions December 3, 2018 and
Slide 23: Stockholder Performance — March 2019
Stockholder Performance — March 2019 Hypothetical Performance of Early and Late Investors $10.00 Share Price for Early Investors and $10.51 Share Price for Late Investors, All Distributions Received in Cash Breakdown of First Cash Investor Value Breakdown of Last Cash Investor Value sisss $17.02 $15
Slide 24: REIT III Goals & Objectives
REIT Ill Goals & Objectives * Complete major capital projects, such as renovations or amenity enhancements, with the goal of attracting quality tenants * Complete construction of Hardware Village property and continue to lease-up + Lease-up and stabilize all properties in the portfolio with an empha
Slide 25: Q&A
Q&A
Slide 26: Thank You
Thank You For Additional Questions, Contact KBS Capital Markets Group Investor Relations (866) 527-4264
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