Kbs Real Estate Invt Tr Iii Inc. · OTC:KBSR
Kbs Real Estate Invt Tr Iii — KBS Real Estate Investment Trust II — Corporate Update (August 2019)
22 slides from Kbs Real Estate Invt Tr Iii's corporate update, Aug 23, 2019
Slide 1: KBS Real Estate Investment Trust II Portfolio Update Meeting
KBS Real Estate Investment Trust II Portfolio Update Meeting August 23, 2019 1
Slide 2: Important Disclosures
The information contained herein should be read in conjunction with, and is qualified by, the information in KBS Real Estate Investment Trust II’s (the “Company” or “KBS REIT II”) Important Annual Report on Form 10-K for the year ended December 31, 2018 (the “Annual Report”) and Quarterly Report on
Slide 3: About KBS
Transactional volume in excess of $39.3 billion1, AUM of $11.4 billion1 and 36.1 million square About KBS feet under management1. Formed by Peter Bren and 8th Largest Office Owner Globally, National Chuck Schreiber in 1992. Real Estate Investor2. Over 26 years of investment Ranked among Top 53 Globa
Slide 4: KBS REIT II Asset Map
KBS REIT II Asset Map Current Equity Assets Sold and Liquidated Assets (Equity & Debt) 4
Slide 5: Fund and Portfolio Overview
Fund and Portfolio Overview FUND OVERVIEW PORTFOLIO OVERVIEW As of June 30, 2019, unless Total Equity Raised Total Equity Sales & Debt Asset Payoffs4 otherwise noted $1.82 billion $2.59 billion Total Acquisitions/Originations1 Dec. 2018 Est. Value of Current Portfolio5 $3.3 billion $1.13 billion Cur
Slide 6: Stockholder Performance
Stockholder The December 2018 estimated value per share was performed in accordance with the provisions of and also to comply Performance with the IPA Valuation Guidelines. As with any valuation methodology, the methodologies used are based upon a number of estimates and assumptions that may not be
Slide 7: Stockholder Performance: Hypothetical Performance of Early and Late Investors
Stockholder Performance Hypothetical Performance of Early and Late Investors $14.78 Total value for early cash investors 1 $13.21 Total value for late cash investors 1 Assumes all distributions received in cash through June 2019 Breakdown of Early Cash Investor Value Breakdown of Late Cash Investor
Slide 8: History of Distribution Payments
History of Distribution Payments $10.28/share of total distributions paid from August 2008 through June 2019 August 2008 – September 2014 • $0.20 / share distributions, on an annualized basis, for record dates from July 16, 2008 to August 15, 2008 (74 Monthly Payments) • $0.65 / share distributions,
Slide 9: Portfolio Summary
Portfolio Asset Location Purchase Price Cost Basis1 Occupancy at 6/30/20192 Summary 100 & 200 Campus Drive Florham Park, NJ $ 180,700,000 $ 236,980,938 81.8% Buildings As of June 30, 2019 300 – 600 Campus Drive Florham Park, NJ 184,300,000 234,273,580 93.7% Buildings Willow Oaks Corporate Center Fai
Slide 10: Portfolio Sales Summary
Net Sales Asset Sale Date Cost Basis1 Net Sales Price2 Debt Payoff Net Proceeds Proceeds3 Hartman II 6/28/2012 $ 11,113,000 $ 12,650,000 $ 12,283,407 $ 6,755,627 $ 5,527,780 Mountain View 5/14/2014 33,316,000 25,417,000 24,394,290 12,624,000 11,770,290 Portfolio Sales Dallas Cowboys 6/11/2014 19,273
Slide 11: Debt Sales Summary
Purchase / Debt Sales Debt Asset Sale / Payoff Date Origination Sale / Repayment Proceeds Debt Payoff Net Proceeds Amount Summary Northern Trust A & B 6/27/2012 $ 59,428,000 $ 84,932,000 $ - $ 84,932,000 Notes As of June 30, 2019 One Liberty Plaza 10/11/2013 66,700,000 113,091,000 - 113,091,000 One
Slide 12: Portfolio Overview
Portfolio Overview As of June 30, 2019 Geographic Diversification2 Key Statistics VA No. of Assets 7 9% AZ NJ Total Rentable Sq. Ft. 3,907,464 16% 36% Wtd. Avg. Lease Term 6.0 years Economic Occupancy 70.4% CO Leased Occupancy1 76.8% 19% CA No. of Tenants 110 20% Leverage 34.1% Leased Occupancy1 Lea
Slide 13: Tenancy Overview
Tenancy Overview As of June 30, 2019 Leased1 SF Top 10 Tenants Industry Property % of Portfolio Industry Diversification2 Educational Fountainhead The University of Phoenix 14.9% Services Plaza Anadarko Petroleum Mining, Oil & Gas Granite Tower 12.0% Corporation Extraction Union Bank Finance Union B
Slide 14: Property Updates
Real Estate Investment Trust Il KBS Property Updates
Slide 15: District 237
District | 237 (formerly Corporate Tech Centre) - Job growth in the San Jose metropolitan statistical area (MSA) continued in the 2nd quarter of 2019 with an increase of 2.3% or 25,700 non-farm jobs year-over- year (YoY), despite the market being at full employment. After another solid performance i
Slide 16: Union Bank Plaza
Union Bank Plaza Los Angeles, CA - The Downtown LA market experienced a strong surge in leasing activity in the 2nd quarter of 2019, jumping 26.8% from the previous quarter, to 784,540 SF. Overall average asking rental rates increased to $43.92, representing a 4% year over year growth. - In 2019 the
Slide 17: Willow Oaks
Willow Oaks Fairfax, VA - Northern Virginia has 2.9 million square feet of office space under construction as of the 2nd quarter of 2019, excluding renovations and owner-occupied buildings. This year will be a slower year for deliveries; paired with a continued increase in demand, the office market
Slide 18: 2019 Property Sales
2019 Property Sales Pierre Laclede - On May 23, 2019 the property was sold for a gross price of $95.0 million, generating net proceeds of $49.0 million after price concessions, selling costs and fees, and debt repayment. Pierre Laclede Center Clayton, MO Emerald View - On May 23, 2019 the property w
Slide 19: 2019 Property Sales – In Process
2019 Property Sales – In Process Campus Drive Buildings Florham Park, NJ - The property was listed for sale in June 2019 and we anticipate to complete the marketing process and receive offers by the end of August 2019. 19
Slide 20: June 2019 Special Distribution
On June 12, 2019, KBS REIT II’s board of directors June 2019 declared a special distribution in the amount of Special $0.45 per share of common stock to stockholders Distribution of record as of the close of business on June 17, 2019 (the “Special Distribution”). The Special Distribution was funded
Slide 21: REIT II Goals & Objectives
REIT II Goals & Objectives Continue to strategically sell assets and pay special distributions Negotiate lease renewals or new leases that facilitate the sales process and enhance property stability for prospective buyers Complete capital projects, such as renovations or amenity enhancements, to att
Slide 22: Q&A
Q&A For additional questions, contact KBS Capital Markets Group Investor Relations (866) 527-4264 22
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