Kbs Real Estate Invt Tr Iii Inc. · OTC:KBSR
Kbs Real Estate Invt Tr Iii — KBS Real Estate Investment Trust III — Corporate Update (August 2021)
28 slides from Kbs Real Estate Invt Tr Iii's corporate update, Aug 26, 2021
Slide 1: Portfolio Update Webcast August 26, 2021
Portfolio Update Webcast August 26, 2021
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 June 30, 2021 have been funded with cash flow from operating activities, debt financing and proceeds
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 June 30, 2021. About KBS 4 Transactional volume in excess of $43.2 billion1, AUM of $7.6 billion1 and 21.5 million sq
Slide 5: Target Markets: KBS Offices Regional Focus Map
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 fob and access data from 2,600 buildings and 41,000 businesses. The analysis is based on anonymized data to identify trends in how Ame
Slide 8: COVID-19: KBS REIT III Adopts UL Healthy Building Program
W W W . K B S . C O M COVID-19: KBS REIT III Adopts UL Healthy Building Program 8 • Working with Underwriter Laboratories (UL), KBS announced it had committed to the verification of 16 properties in its KBS REIT III client portfolio to achieve UL Verified Healthy Buildings for Indoor Air quality. •
Slide 9: 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 10: Fund and Portfolio Overview
Fund and Portfolio Overview 10
Slide 11: Current Portfolio of Properties
W W W . K B S . C O M 1 Current portfolio of properties as of May 2021. Value based solely on the appraised values as of March 31, 2021 as reflected in the May 2021 estimated share value. The appraised values do not consider estimated disposition costs and fees. 2 Estimated value of KBS REIT III's i
Slide 12: Property Table: Metro, Class, Square Feet, Occupancy
W W W . K B S . C O M 12 1 Includes future leases that had been executed but had not yet commenced as June 30, 2021. 2 New lease signed with Studio Bank (3,560 SF) on July 15, 2021. Property Metro City Building Class ( A,B or C) Sq. Ft. Classification (CBD, Urban, Suburban) Mass Transit Availability
Slide 13: Statistics for the Current Portfolio: Asset and Market Diversification
W W W . K B S . C O M Franklin 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 Ba
Slide 14: 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 2
Slide 15: 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 7.9 4.2% WeWork3 Real Estate and Rental and Leasing 201 Spear Street, Town Center 13
Slide 16: Capital Management
W W W . K B S . C O M Capital Management1 As of June 30, 2021, unless otherwise noted Initial Debt Maturities 1 1 Based on total debt as of June 30, 2021. 2 Loan-to-Value equals the total debt as of June 30, 2021 divided by the May 2021 estimated value of the portfolio of properties of $3.1 billion
Slide 17: Property Updates
17 Property Updates
Slide 18: Property Update
W W W . K B S . C O M 18 Property Update As of Q2 2021, we have signed 62,925 square feet of new and expansion leases. We were also successful in renewing Northwestern Mutual, the property’s third-largest tenant. As of July 31, 2021, the property had approximately 28,000 square feet of new lease pro
Slide 19: Property Update: The McEwen Building, Franklin, TN
W W W . K B S . C O M 19 Property Update We completed a significant capital project in Q1 2021, which includes repositioning and vacant space improvements given the recent material increase in vacancy. Several spec suites are being built out and we are completing renovations to the ground and first
Slide 20: Property Update
W W W . K B S . C O M 20 Property Update Recent renovations include: • Completion of a new 10th floor outdoor patio and connected lounge space. • Full lobby level and façade remodel with a complete overhaul and repositioning of the ground-floor retail spaces. • Built out a conferencing center, a fit
Slide 21: Property Update: Preston Commons, Dallas, TX
W W W . K B S . C O M 21 Property Update A $12 million modernization completed in 2021 positions Preston Commons as a best-in-class property for the market. Offering a highly amenitized work environment with new elegant lobbies and corridors, exterior areas for working, collaboration space, entertai
Slide 22: Preston Commons Dallas, TX
W W W . K B S . C O M 22 Preston Commons Dallas, TX
Slide 23: Preston Commons Dallas, TX
W W W . K B S . C O M 23 Preston Commons Dallas, TX
Slide 24: Real Estate Investment Trust III Strategic Plan Update
Real Estate Investment Trust Ill Strategic Plan Update
Slide 25: Tender Offer
W W W . K B S . C O M 25 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 26: Potential NAV Conversion
W W W . K B S . C O M 26 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. Potential NAV Conversion The COVID-19 pandemic caused us to delay certain asset sales and refinancing
Slide 27: REIT III 2021 Goals & Objectives
W W W . K B S . C O M REIT III 2021 Goals & Objectives 27 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 28: Q&A
28 Q&A For additional questions, contact KBS Capital Markets Group Investor Relations (866) 527-4264
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