Kbs Real Estate Invt Tr Iii Inc. · OTC:KBSR
Kbs Real Estate Invt Tr Iii — KBS Real Estate Investment Trust III — Corporate Update (March 2020)
31 slides from Kbs Real Estate Invt Tr Iii's corporate update, Mar 11, 2020
Slide 1: Portfolio & Strategic Plan Update
Exhibit 99.1 Portfolio & Strategic Plan Update March 11, 2020
Slide 2: Important Disclosures and Forward-Looking Statements
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, 2019 (the “Annual Report”), including the “Risk Factors” co
Slide 3: About KBS
Transactional volume in excess of $41.8 billion1, AUM About KBS of $8.2 billion1 and 24.6 million square feet under management1. Formed by Peter Bren and Chuck Schreiber in 1992. Buyer and seller of well-located, yield-generating office and industrial properties. Over 26 years of investment and mana
Slide 4: Regional Focus Map
Regional Focus Map Gateway Target First-tier Target Strong Employment / Growth KBS Offices WWW. KBS.COM 4
Slide 5: KBS Real Estate Investment Trust III Singapore Portfolio Sale
Real Estate Investment Trust Ill KBS Singapore Portfolio Sale
Slide 6: Introduction: Singapore Portfolio Sale
Introduction ON JULY 18, 2019 The Singapore Portfolio sale resulted in a 11 Properties Sold $147.4 million gain over cost basis, which KBS Real Estate Investment Trust III, $1.2 Billion Sale Price contributed to a $0.09 increase in estimated value per share2 as reflected in Inc. (the "Company“) has
Slide 7: The Portfolio Sale Generated Proceeds of $413.0 Million
The Portfolio Dollars in Thousands Sale Generated Gross Sales Proceeds $ 1,222,150 Proceeds of $413.0 Million Seller Credit 1 (10,093) KBS REIT III Interest in SREIT 2 (254,814) Subtotal-Net Sale Price Less 957,243 KBS REIT III Interest Closing Costs, Interest Rate Buydown, (19,893) Advisor Disposit
Slide 8: Use of Proceeds
Use of Proceeds Recognizing that the KBS REIT III’s shareholders each have different investment objectives, timelines, and liquidity needs, KBS REIT III has and will consider using the net proceeds from the Portfolio Sale for a variety of shareholder liquidity options, including: #1 #2 #3 #4 Expande
Slide 9: Special Dividend
As a result of taxable capital gains, the REIT authorized a Special Dividend to stockholders November 4, 2019 as of November 4, 2019 that was paid in December 2019 Special Dividend KBS REIT III paid a Special Dividend of $0.80 per share of common stock in December 2019 as a result of generating a si
Slide 10: Fund and Portfolio Overview
Fund and Portfolio Overview 10
Slide 11: Fund and Portfolio Overview
Fund and Portfolio 1 December 2019 Estimated Value of Current Portfolio Overview of Properties1,2 $3.2 billion December 2019 Value of Investment in units of As of December 31, 2019, unless otherwise PRIME US REIT 3 noted. $257.8 million Rentable Square Feet1 7.8 million Total Leased Occupancy1,4 1 E
Slide 12: Current Portfolio of Properties
Current Portfolio of Properties1 19 Class A Properties $3.2 Billion 7.8 Million RSF Urban, Well-Located, Institutional-Quality Portfolio 90.6% Leased2 Mass Transit Connectivity Growth Markets & Urban 4.8 Years Weighted Average Lease Term3 Live/Work/Play Locations In-place Rents 10% Below Market Rece
Slide 13: The Current Portfolio of Properties
The Current Portfolio of Properties Building Classification Leased Occupancy Mass Transit Leased Occupancy Property Metro City Class Sq. Ft. (CBD, Urban, at December 31, Availability at Acquisition ( A,B or C) Suburban) 20191 WEST Anchor Centre Phoenix A 333,014 Suburban Metro 78% 95% Gateway Tech C
Slide 14: The Current Portfolio of Properties Map
The Current Portfolio of Properties The following map shows the markets where the current portfolio of properties is located. It is: • In major target markets which are high- ranked as office absorption leaders in the last 10 years • In top tech markets. • In prime locations within the markets, via
Slide 15: Statistics for the Current Portfolio: Diversification
Statistics for the Current Portfolio Market Diversification 1 Asset Diversification 1 Invested in Target Markets: Asset Diversification: 50% of value2 in CBRE’s Top 10 Tech Markets Largest asset accounts for just 16% 90% of value2 in CBRE’s Top 25 Tech Markets 1 Based solely on the appraised values
Slide 16: Lease Expirations and Industry Diversification
Statistics for the Current Portfolio Over 650 Tenants with Staggered Lease Expirations and Industry Diversification Lease Expirations 1 $40000 13.5% 12.4% $30000 12.0% 10.3% 9.9% 9.8% 8.6% $20000 7.7% 5.5% 5.4% $10000 3.8% Annualized Annualized Rent Base($000) 1.1% $0 1 Annualized base rent represen
Slide 17: Top Tenants Statistics for the Current Portfolio
Top 10 Tenants 1 Statistics for the WEIGHTED % OF NLA TOP 10 TENANTS INDUSTRY SECTOR PROPERTY AVERAGE LEASE ANNUALIZED (SQ. FT) Current Portfolio TERM (YRS) BASE RENT 2 CNA Corporation Management Consulting 3003 Washington 152,414 9.4 4.1% Real Estate and Rental and 201 Spear Street, WeWork 3 105,75
Slide 18: KBS REIT III Exposure to WeWork
KBS REIT III Exposure to WeWork PROPERTY: 201 Spear - San Francisco Legacy Town Center – Plano, TX WeWork Space 78,869 SF 53,776 SF WeWork as a % of the Property 31.2% 10.30% WeWork Occupancy 100% 100% WeWork Tenants Google is a single tenant StitchFix, Orchard, Digital Ocean, Revint and Encore Cons
Slide 19: Capital Management
1 Capital Management As of December 31, 2019, unless otherwise noted Initial Debt Maturities 1 $1,000,000 3 $798,018 Total Debt1 $1.5 billion $800,000 $600,000 $379,245 $400,000 $196,113 2 Loan-to-Value 40.7% $200,000 $93,000 $0 $0 $0 Average cost of debt 3.57% per annum Interest Rate Exposure (in m
Slide 20: Property Updates
Real Estate Investment Trust Ill Property Updates
Slide 21: Anchor Centre
Anchor Centre Key Statistics Phoenix, AZ Current Market Rent/ Weighted-Avg. Lease Term Rentable SF Leased Occupancy1 In - Place Rent1 (Yrs.)1 $38.00 / $32.39 333,014 95.4% 3.6 (17.3% Mark-to-Market) Key Tenants Tenant Sq. Ft. % of Property RSF Humana Insurance Co. 71,221 21.4% Avenue 5 Residential 2
Slide 22: Spear Street
201 Spear Street Key Statistics San Francisco, CA Current Market Rent/ Weighted-Avg. Lease Term Rentable SF Leased Occupancy1 In - Place Rent (Yrs.)2 $90.00 / $71.70 252,591 96.5% 5.7 (25.52% Mark-to-Market) Key Tenants Tenant Sq. Ft. % of Property RSF We Work 78,869 31.0% Verizon 42,033 16.6% Circl
Slide 23: Hardware Village Apartments
Hardware Village Apartments Key Statistics Salt Lake City, UT Rentable SF Units Leased Occupancy1 463,956 453 45.2% Construction Summary Projected final development cost is $138.8 million Received certificate of occupancy on the East building on January 10, 2020. Key Highlights Modern-luxury finishe
Slide 24: Hardware Village Apartments
Hardware Village Apartments WWW. KBS.COM 24
Slide 25: Park Place Village
Park Place Village Key Statistics Leawood, KS Current Market Rent/ Weighted-Avg. Lease Term Rentable SF Leased Occupancy1 In - Place Rent1 (Yrs.)1 90.7% Office $29.00 / $29.29 483,984 6.4 79.2% Retail (-0.1% Mark-to-Market) Key Tenants Tenant Sq. Ft. % of Property RSF AMC 163,655 33.8% SCOR Global 4
Slide 26: 17th Street
201 17th Street Key Statistics Atlanta, GA Current Market Rent/ Weighted-Avg. Lease Term Rentable SF Leased Occupancy1 In - Place Rent2 (Yrs.)2 $37.50 / $31.05 355,870 96.9% 7.1 (20.8% Mark-to-Market) Key Tenants Tenant Sq. Ft. % of Property RSF WorldPay US Inc. 130,088 36.5% Nelson Mullins 117,517
Slide 27: Strategic Plan Update - NAV Conversion
Strategic Plan Update - NAV Conversion 27
Slide 28: NAV Conversion
NAV Conversion Conversion to an NAV REIT fulfills certain key Following the Portfolio Sale, the objectives of the Company including the current Company’s Board of Directors finalized portfolio size and performance, shareholder desire for a review of strategic alternatives in an liquidity as well as
Slide 29: NAV Conversion Process and Timeline
NAV Conversion NAV Conversion Process and Timeline The NAV conversion process requires us to proxy the shareholders of KBS REIT III with respect to two proposals related to KBS REIT III’s conversion to an NAV REIT. The anticipated timeline is as follows: Finalize Proxy with the SEC and send out prox
Slide 30: REIT III Goals & Objectives
REIT III Goals & Objectives Provide enhanced shareholder liquidity Pursue NAV REIT Conversion Complete major capital projects, such as renovations or amenity enhancements, with the goal of attracting quality tenants Complete disposition of Hardware Village property Lease-up and stabilize all propert
Slide 31: Q&A
Q&A For additional questions, contact KBS Capital Markets Group Investor Relations (866) 527-4264 31
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