Kbs Real Estate Invt Tr Iii Inc. · OTC:KBSR
Kbs Real Estate Invt Tr Iii — KBS Real Estate Investment Trust III — Corporate Update (December 2021)
29 slides from Kbs Real Estate Invt Tr Iii's corporate update, Dec 10, 2021
Slide 1: Portfolio & NAV Update Webcast
Portfolio & NAV Update Webcast December 10, 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”), and in th
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 September 30, 2021 have been funded with cash flow from operating activities, debt financing and proc
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 September 30, 2021. About KBS 4 Transactional volume in excess of $43.9 billion1, AUM of $7.4 billion1 and 20.5 milli
Slide 5: Target Markets
W W W . K B S . C O M Target Markets 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: Return to Office
W W W . K B S . C O M COVID-19: Return to Office 7 To provide some clarity on the issues facing American businesses, Kastle Systems has been studying keycard and fob access data from 2,600 buildings and 41,000 businesses. The analysis is based on anonymized data to identify trends in how Americans a
Slide 8: 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 pandemic, the various measures imposed to help control the spread of the virus and the correspondi
Slide 9: Fund and Portfolio Overview
Fund and Portfolio Overview 9
Slide 10: Current portfolio of properties
W W W . K B S . C O M 1 Current portfolio of properties as of November 2021 excluding Domain Gateway, which was sold on November 2, 2021. Value based solely on the appraised values as of September 30, 2021 as reflected in the November 2021 estimated share value. The appraised values do not consider
Slide 11: Property details and leased occupancy
W W W . K B S . C O M 11 1 Includes future leases that had been executed but had not yet commenced as September 30, 2021. Property Metro City Building Class ( A,B or C) Sq. Ft. Classification (CBD, Urban, Suburban) Mass Transit Availability Leased Occupancy at September 30, 20211 WEST Gateway Tech C
Slide 12: Statistics for the Current Portfolio: Asset and Market Diversification
W W W . K B S . C O M Nashville Area Salt Lake City Kansas City Atlanta Austin Minneapolis Charlotte Washington D.C. Metro (2 Properties) Dallas (3 Properties) 2% 5% 3% 5% 6% 6% 8% 16% San Francisco Bay Area (4 Properties) 30% Chicago17% Statistics for the Current Portfolio 1 Based solely on the app
Slide 13: 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 Information Professional, Scientific, & Technical Services Insurance Carriers & Related Activities Management Consulting Services 21% Finance 1% 1% 4% 5% 6% 8% 3% 5% 7% 18% O
Slide 14: 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 7.7 4.4% WeWork3 Real Estate and Rental and Leasing 201 Spear Street, Town Center 13
Slide 15: Capital Management
W W W . K B S . C O M Capital Management1 As of September 30, 2021, unless otherwise noted Initial Debt Maturities 1 1 Based on total debt as of September 30, 2021. 2 Loan-to-Value equals the total debt as of September 30, 2021 divided by the November 2021 estimated value of the portfolio of propert
Slide 16: Tender Offer
W W W . K B S . C O M 16 In order to provide stockholders with additional liquidity that is in excess of that permitted under the Company’s share redemption program, on June 4, 2021, the Company commenced a self-tender offer for up to 33,849,130 shares of common stock at a price of $10.34 per share,
Slide 17: November 2021 Estimated Value per Share
17 November 2021 Estimated Value per Share
Slide 18: Valuation Information
W W W . K B S . C O M Valuation Information1 1 For more information, see the Valuation 8-K. ▪ 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, Valuat
Slide 19: Valuation Summary
W W W . K B S . C O M Valuation Summary 1 Based on the estimated value of KBS REIT III’s assets less the estimated value of KBS REIT III’s liabilities, divided by the number of shares outstanding, all as of September 30, 2021, except for certain items discussed in the Valuation 8-K for which estimat
Slide 20: Valuation Change Summary
W W W . K B S . C O M Valuation Change Summary On November 1, 2021, KBS REIT III’s Board of Directors approved an estimated value per share of $10.781. The following is a summary of the estimated value per share changes within each asset and liability group. 1 Based on the estimated value of KBS REI
Slide 21: Valuation Change Summary by Region
W W W . K B S . C O M Valuation Change Summary 1 by Region 21 West Region Valuation Change in Value $978,390,000 +0.1% Central Region Valuation Change in Value $1,390,740,000 +0.8% East Region Valuation Change in Value $593,340,000 -0.2% 1 The change in valuation compares the recent November 2021 va
Slide 22: Significant Real Estate Changes
W W W . K B S . C O M Significant Real Estate Changes 22 Preston Commons The appraised value increased $5.8 million, or 3.3%, from the prior appraised value due to the following: ▪ The value increase was due in part to a $0.50 per square foot increase in the market leasing assumption rates for futur
Slide 23: Domain Gateway Sale
W W W . K B S . C O M Domain Gateway Sale Domain Gateway was sold on November 2, 2021 for a gross sale price of $143.0 million, which represented a 14.6% or $18.3 million increase above the May 2021 value of the property. The cost basis1 at disposition was $69.1 million. SALE PRICE $143.0 million Cl
Slide 24: C O M • a stockholder would be able to resell his or her
W W W . K B S . C O M • a stockholder would be able to resell his or her shares at KBS REIT III’s estimated value per share; • a stockholder would ultimately realize distributions per share equal to KBS REIT III’s estimated value per share upon liquidation of KBS REIT III’s assets and settlement of
Slide 25: Stockholder Valuation Information
W W W . K B S . C O M 25 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. Stockholder Valuation Information Further, the estimated
Slide 26: Strategic Plan Update
Real Estate Investment Trust Ill Strategic Plan Update
Slide 27: Potential NAV Conversion
W W W . K B S . C O M 27 Potential NAV Conversion Conversion to an NAV REIT could fulfill certain key objectives of the Company including balancing shareholder desire for liquidity as well as their desire to stay invested. The COVID-19 pandemic caused us to delay certain asset sales and refinancing
Slide 28: REIT III 2022 Goals & Objectives
W W W . K B S . C O M REIT III 2022 Goals & Objectives 28 Distribute operating cash flows to stockholders Maintain a substantial amount of liquidity in the REIT in order to continue to enhance asset values and provide stockholder liquidity. Continue to monitor the properties in the portfolio for any
Slide 29: Q&A
29 Q&A For additional questions, contact KBS Capital Markets Group Investor Relations (866) 527-4264
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