Kbs Real Estate Invt Tr Iii Inc. · OTC:KBSR
Kbs Real Estate Invt Tr Iii — KBS Real Estate Investment Trust III — Corporate Update (March 2021)
33 slides from Kbs Real Estate Invt Tr Iii's corporate update, Mar 30, 2021
Slide 1: Portfolio Update Webcast March 30, 2021
Portfolio Update Webcast March 30, 2021 Exhibit 99.1
Slide 2: Important Disclosures
W W W . K B S . C O M The information contained herein should be read in conjunction with, and is qualified by, the information in KBS Real Estate Investment Trust III’s (the “Company” or “KBS REIT III”) Annual Report on Form 10-K for the year ended December 31, 2020 (the “Annual Report”), including
Slide 3: Important Disclosures (cont.)
W W W . K B S . C O M Important Disclosures (cont.) The Company may fund distributions from any source including, without limitation, from offering proceeds or borrowings. Distributions paid through December 31, 2020 have been funded with cash flow from operating activities, debt financing and proce
Slide 4: About KBS
W W W . K B S . C O M Formed by Peter Bren and Chuck Schreiber in 1992. Over 29 years of investment and management experience with extensive long-term investor relationships. 1 As of December 31, 2020. About KBS 4 Transactional volume in excess of $42.9 billion1, AUM of $7.8 billion1 and 23.0 millio
Slide 5: KBS Offices Regional Focus Map
W W W . K B S . C O M Gateway Target First-tier Target Strong Employment / Growth KBS Offices Regional Focus Map 5
Slide 6: The Impact of COVID-19 on Capital Markets and US Real Estate Investments
W W W . K B S . C O M The Impact of COVID-19 on Capital Markets and US Real Estate Investments 6
Slide 7: COVID-19: Economy, Rents and Vacancy
W W W . K B S . C O M • The Organization for Economic Cooperation and Development said the American economy is projected to expand 6.5% this year, up from the previous forecast of 3.2% in December 2020 due to the recent stimulus plan and rapid vaccine rollout.1 • According to the Department of Labor
Slide 8: COVID-19: Recovering Markets
W W W . K B S . C O M COVID-19: Recovering Markets • By comparison, major CBD office markets (i.e. New York City, NY and San Francisco, CA) will continue to struggle, while secondary and suburban markets will prove to be more resilient, according to JLL.1 • Austin, TX ranks third in metros that have
Slide 9: COVID-19: Office Return and Design Trends
W W W . K B S . C O M • A recent survey showed that 62% of human resources leaders plan to continue safety measures they have put in place.1 • Employees are feeling more comfortable to return to the office. In fact, three in four workers hope to return to an office at some point in the future at lea
Slide 10: COVID-19: Rent Collections
W W W . K B S . C O M COVID-19: Rent Collections Since April 1, 2020, a number of tenants have requested rent relief, most in the form of rent deferrals or abatement. Depending upon the duration of the various measures imposed to help control the spread of the virus and the corresponding economic sl
Slide 11: Portfolio positioned to manage COVID-19 impact
W W W . K B S . C O M We believe the KBS REIT III portfolio is positioned to manage any short-term economic impact from COVID-19 based on our liquidity, diversified tenant base, long-term leases, property locations and exposure to high growth industries. The top tenants include tenants such as RBC C
Slide 12: Industry Comparison: Exposure to Disrupted Industries
W W W . K B S . C O M Certain industries are experiencing greater economic disruption due to COVID-19 compared to others. These industries include the co-working, accommodation & food and retail. However, the Company expects nominal impact from these industries due to the following: • The majority o
Slide 13: COVID-19: Distributions
W W W . K B S . C O M 13 Distribution History: 1 Distributions for March and April 2021 have been declared but not yet paid. *On an annualized basis. January 2020 – April 20211 $0.60/share* Distributions While there is some near term impact to revenues, our exposure to the industries that are curren
Slide 14: Fund and Portfolio Overview
Fund and Portfolio Overview 14
Slide 15: Current Portfolio of Properties
W W W . K B S . C O M 1 Current portfolio of properties as of December 31, 2020, excluding Anchor Center which was sold on January 19, 2021. Value based solely on the appraised values as of September 30, 2020 as reflected in the December 2020 estimated share value. The appraised values do not consid
Slide 16: Property Details by Metro and Occupancy
W W W . K B S . C O M 16 1 Includes future leases that had been executed but had not yet commenced as December 31, 2020. Property Metro City Building Class ( A,B or C) Sq. Ft. Classification (CBD, Urban, Suburban) Mass Transit Availability Leased Occupancy at December 31, 20201 WEST Gateway Tech Cen
Slide 17: Statistics for the Current Portfolio: Market Diversification
W W W . K B S . C O M Nashville Salt Lake City Kansas City Atlanta Minneapolis Charlotte Washington D.C. Metro (2 Properties) Austin (2 Buildings) Dallas (3 Properties) 2% 4% 2% 5% 6% 8% 9% 15% San Francisco Bay Area (4 Properties) 31% Chicago (1 Property) 16% Statistics for the Current Portfolio 1
Slide 18: Statistics for the Current Portfolio: Industry Diversification
W W W . K B S . C O M Communications Equipment Manufacturing Scientific Research & Development Healthcare & Social Assistance Computer Systems Design & Related Services Information Professional, Scientific, & Technical Services Insurance Carriers & Related Activities Management Consulting Services 1
Slide 19: Top Tenants
W W W . K B S . C O M Top 10 Tenants 1 TOP 10 TENANTS INDUSTRY SECTOR PROPERTY NLA (SQ. FT) WEIGHTED AVERAGE LEASE TERM (YRS) % OF ANNUALIZED BASE RENT 2 CNA Corporation Management Consulting 3003 Washington 152,664 8.4 4.1% WeWork3 Real Estate and Rental and Leasing 201 Spear Street, Town Center 13
Slide 20: Capital Management
W W W . K B S . C O M Capital Management1 As of December 31, 2020, unless otherwise noted Initial Debt Maturities 1 1 Based on total debt as of December 31, 2020. 2 Loan-to-Value equals the total debt as of December 31, 2020 divided by the December 2020 estimated value of the portfolio of properties
Slide 21: KBS Real Estate Investment Trust III Portfolio Updates
Real Estate Investment Trust Ill KBS Portfolio Updates
Slide 22: 201 17th Street Key Highlights
W W W . K B S . C O M 22 Key Highlights An early termination right for the largest tenant, WorldPay (130,088 SF, 37% of property) expired on March 1, 2021, leaving the remaining term firm through March 2027. They are consolidating employees from other locations to the property. 201 17th Street is lo
Slide 23: Towers II & III at Emeryville Key Highlights
W W W . K B S . C O M 23 Key Highlights In January and February of 2021, KBS was successful in signing 40,504 square feet of new/expansion leases to take the property from 74% leased at 12/31/20 to 81% leased today. In addition, KBS was also successful in renewing one tenant leasing 20,256 square fe
Slide 24: RBC Plaza Minneapolis, MN
W W W . K B S . C O M RBC Plaza Minneapolis, MN 24 • In December of 2020, KBS was successful in signing a 178,000-square-foot lease with leading Midwest law firm Fredrikson & Byron that commences in 2023. The news made headlines as it was one of the largest leases signed during the pandemic. • The n
Slide 25: RBC Plaza Minneapolis, MN Improvements
W W W . K B S . C O M 25 RBC Plaza Minneapolis, MN Improvements
Slide 26: Anchor Centre Sale
W W W . K B S . C O M Anchor Centre Sale Completing leasing activity of over 40,000 sf of new and renewal leases during 2020 and finishing the year at 96% leased collectively contributed to a successful disposition. Anchor Centre was sold on January 19, 2021 for a gross sale price of $103.5 million.
Slide 27: Hardware Village First Mortgage
W W W . K B S . C O M Hardware Village First Mortgage On May 7, 2020, the Company, through a consolidated joint venture, sold Hardware Village to a buyer for a purchase price of $178.0 million, before third- party closing costs and credits. The purchase price was paid in a combination of approximate
Slide 28: Accenture Tower Refinance
W W W . K B S . C O M Accenture Tower Refinance On November 2, 2020, the Company entered into a three-year loan facility secured by Accenture Tower. Below is a summary of the terms of the loan: 28 In connection with this financing, the Company released Accenture Tower as security from a portfolio lo
Slide 29: Strategic Plan Update NAV Conversion
29 Strategic Plan Update NAV Conversion
Slide 30: Potential NAV Conversion: NAV REITs at a Glance
W W W . K B S . C O M 30 Conversion to an NAV REIT fulfills certain key objectives of the Company including balancing shareholder desire for liquidity as well as their desire to stay invested. Potential NAV Conversion NAV REITs at a Glance Perpetual Life Investment Vehicle Potential enhanced liquidi
Slide 31: COVID-19 impact and KBS REIT III response
W W W . K B S . C O M 31 The impact of COVID-19 has altered the landscape of the real estate market in its entirety. The disruption has reduced cashflows and halted leasing activity resulting in reductions of real estate values. Specific to the KBS REIT III portfolio, our rent collections have remai
Slide 32: REIT III 2021 Goals & Objectives
W W W . K B S . C O M REIT III 2021 Goals & Objectives 32 Distribute operating cash flows to stockholders Carefully evaluate all tenant rent deferral requests to make sure we are providing rent relief where it is necessary, while being repaid on such deferrals either over time or through a longer te
Slide 33: Q&A
33 Q&A For additional questions, contact KBS Capital Markets Group Investor Relations (866) 527-4264
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