Kbs Real Estate Invt Tr Iii Inc. · OTC:KBSR
Kbs Real Estate Invt Tr Iii — KBS Real Estate Investment Trust III — Investor Presentation (December 2018)
30 slides from Kbs Real Estate Invt Tr Iii's investor presentation, Dec 6, 2018
Slide 1: KBS Real Estate Investment Trust III
Real Estate Investment Trust Ill
Slide 2: Important Disclosures
IMPORTANT DISCLOSURES KBS ey 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, 2017 (the “Annual Report”), an
Slide 3: About KBS
Real Estate Investment AsouT KBS ied > 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 $38.2 billion’, AUM of $11.2 billion’ and 37.0 million square feet under
Slide 4: Regional Focus Map
REGIONAL Focus Map KBS f= SEATTLE e PORTLAND e Nene @ BOSTON es CHICAGO e NEW YORK CITY SAN FRANCISCO __ East BAY BAY AREA @@ e SALTLAKE _@ SILICON VALLEY T LAKE eee zi WASHINGTON, D.C. NASHVILLE RALEIGH LOS ANGELES @ jms e O PHOENIX ORANGE COUNTY e re) /SAN DIEGO ATLANTA DALLAS @ @ AUSTIN e Gateway
Slide 5: KBS REIT III Asset Map
KBS REIT Ill Asset Map KBS =" Pr Minneapolis Philadelphia ..... Salt Lake City a Chicago San Francisco (Bay Area) Denver Washington, D.C/ Northern Virginia Kansas City ct | oui! Nashville Charlotte Phoenix: Atlanta Dallas Current Equity Assets = nanny Sold and Liquidated Assets (equity and debt) San
Slide 6: Fund Overview and Portfolio Highlights
FUND OVERVIEW Primary Offering Broke Escrow May 24, 2011 Primary Offering Closed July 28, 2015 Total Capital Raised in Primary Offering $1,722,838,000 Addit nal Capital Raised from Distribution R $267,188,000 Current Annualized Distribu in Rate Based on $10.00 Per Share Purchase Price 6.50% Current
Slide 7: Portfolio Summary as of September 30, 2018
Domain Gateway Town Center 1-3 ‘The McEwen Building Gateway Tech Center Tower 909 RBC Plaza Sterling Plaza Preston Commons One Washingtonian Center 500 W Madison 201 Spear Street 222 Main Anchor Centre 171 17th Street Reston Square Ten Almaden Towers at Emeryville 101 South Hankey 3003 Washington Vi
Slide 8: Initial Debt Maturities and Capital Management
Initial Debt Maturities Total debt $2.1 Billion $1:400;000 $1,253,722 $1,200,000 $1,000,000 Loan-To- S $800,000 @ H 50% S $549,285 Value B $600,000 $400,000 $180,590 $200,000 $93,956 sacl BH 3.80% per annum ¢ of del co 2 © y v $ a A A ae Interest Rate Exposure ~ Average term 1.75 years (in millions)
Slide 9: Portfolio Overview
No. of Assets 30 Total Rentable Sq. Ft (1) 11,185,032 Wtd Avg Lease Term 4.4 years Economic Occupancy 92.8% Leased Occupancy 94.5% No. of Tenants 843 PORTFOLIO OVERVIEW AS OF SEPTEMBER 30, 2018 Real Estate Investment Trust Ill Occupied SF Expirationsas of September 30, 2018 15.2% 1,600,000 1,400,000
Slide 10: Tenancy Overview
Real Estate Investment TENANCY OVERVIEW AS OF SEPTEMBER 30, 2018 must ol ‘a Portfolio Tenant Allocation by Industry (By Annualized Base Rent) Top 10 Tenants Industry Property % 500 W. Madison & The Almaden RBC Capital Markets, LLC Finance RBC Plaza 3.4% RBC Plaza Towers at Emeryville 171 17th Street
Slide 11: Leased % at Acquisition vs. Actual Leased %
Real Estate Investment Trust Ill Leased % at Acquisition") vs. Actual Leased % 100.0% 98.0% 96.0% 94.0% 92.0% 90.0% + + ° + * o + + + * + n s 2 i 2 ha 2 > é é é é ¢ s Ss gf ¢ s Ss # s 2 s $ $ ¢ Delta = Acquisition Occupancy ™@=Leased Occupancy ‘Reflects weighted-average lease percentage as of the ac
Slide 12: 2018 NAV and Property Update
2018 NAV and Property Update
Slide 13: Valuation
VALUATION * KBS fs KBS REIT III's estimated value per share? was determined in accordance with the Institute for Portfolio Alternatives’ (formerly known as the Investment Program Association) Practice Guideline 2013-01, Valuations of Publicly Registered Non-Listed REITs. Duff & Phelps, an independen
Slide 14: Valuation: Estimated Value Per Share Changes
VALUATION KBS | tree On December 3, 2018, KBS REIT III’s Board of Directors approved an estimated value per share of $12.02.’ The following is a summary of the estimated value per share changes within each asset and liability group from the December 2017 estimated value per share: December 2017 esti
Slide 15: Portfolio Overview: December 2018 Estimated Value Per Share
Real Estate Investment PORTFOLIO OVERVIEW as oF SePrtemper 30, 2018 Lute Portfolio Summary for December 2018 Estimated Value Per Share Assets: $4.313 Billion — Real Estate? * 30 Assets * $4,180 Billion (96.9%) — Other Assets? * $132.3 Million (3.1%) Liabilities: $2.187 Billion — Loans Payable: $2.08
Slide 16: Real Estate Valuation Updates: Sterling Plaza
Real Estate Investment Trust Ill REAL ESTATE VALUATION UPDATES Sterling Plaza The appraised value increased $13.3 million, or 13.3%, from prior year appraised value due to the following: > The general Dallas office market continues to improve due to overall population growth, low unemployment, job g
Slide 17: Real Estate Valuation Updates: RBC Plaza
on REAL ESTATE VALUATION UPDATES KBS a RBC Plaza The appraised value for RBC Plaza decreased $8.0 million, or 4.6%, from prior year appraised value due to the following: > The building’s largest tenant which occupies almost 300,000 sf and has a 2021 lease expiration, has indicated that it will not r
Slide 18: Key Property Updates: 171 17th Street
Real Estate Investment Trust Ill KEY PROPERTY UPDATES 171 17* Street Location: Atlanta, GA Property Type: Class A Office Acquisition Date: August 25, 2014 Purchase Price: $132.2 million Size: 510,268 Sq. Ft. Leased Occupancy: 100% Largest Tenants % of Bidg. Wells Fargo 30% Arnall Golden Gregory 24%
Slide 19: Key Property Updates: 500 W. Madison
Real Estate Investment Trust Ill KEY PROPERTY UPDATES 500 W. Madison Location: Chicago, IL Property Type: Class A Office Acquisition Date: December 16, 2013 Purchase Price: $421.2 million Size: 1,457,724 Sq. Ft. Leased Occupancy: 86% Largest Tenants % of Bida. Expedia 7% Accenture 5% > Inthe competi
Slide 20: Property Update: Village Center Station II Development
PROPERTY UPDATE Village Center Station I! Development Location: Greenwood Village, CO Property Type: Class A Office Deal Structure: JV with Shea Properties Acquisition Date: March 3, 2017 Project Cost: $128.6 million No. of Buildings: 2 Size: 325,576 Sq. Ft. Leased Occupancy: 100% Completion: Third
Slide 21: Property Update: Hardware Village Apartments Development
PROPERTY UPDATE Hardware Village Apartments Development Real Estate Investment Trust Ill Location: Property Type: Class A Multifamily Deal Structure: JV with Salt Development Acquisition Date: September 2, 2016 Projected Development Cost: No. of Buildings: Size: Occupancy: Phase 1 Completion: Phase
Slide 22: Property Update: Hardware Village Apartments Development
Real Estate Investment PROPERTY UPDATE Trost Hardware Village Apartments Development
Slide 23: Sold and Liquidated Assets (Equity and Debt)
Real Estate Investment Trust Ill SOLD AND LIQUIDATED ASSETS (Eaury anp Desr) | ' Rocklin Corporate Center Aberdeen First Mortgage Origination Las Cimas IV Location: Rocklin, CA Location: Dallas, TX Location: Austin, TX Property Type: Class A Office Date Originated: 06/24/11 Property Type: Class A Of
Slide 24: Stockholder Performance
STOCKHOLDER PERFORMANCE KBS Tus KBS REIT III provides its estimated value per share to assist broker dealers that participated in KBS REIT III's now-terminated initial public offering in meeting their customer account statement reporting obligations. This valuation was performed in accordance with t
Slide 25: Distribution History & Yield
DISTRIBUTION HISTORY & YIELD KBS | tc "Distribution History’: « June 24, 2011-Dec. 31, 2018 Daily Record Dates: $0.65/share on an annualized basis " Current 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 Decem
Slide 26: Stockholder Hypothetical Performance
eee STOCKHOLDER HYPOTHETICAL PERFORMANCE KBS i: Hypothetical Performance of Early and Late Investors Assumes all distributions have been taken in cash and stockholder has held shares since the dates below Sum of Estimated Value Per Share and Estimated Value Cumulative Cash Distributions Cumulative C
Slide 27: Stockholder Performance — December 2018
STOCKHOLDER PERFORMANCE — DECEMBER 2018 KBS Tse 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 $15.91 $14.16 $12.92 — a sis — $10.00 j 1.7
Slide 28: REIT III Goals and Objectives
Real Estate REIT Ill GOALS AND OBJECTIVES KBS es 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 portfoli
Slide 29: Q&A
Q&A
Slide 30: Thank you!
Thank you!
KBS Real Estate Investment Trust III — Investor Presentation (December 2018) on 6ix