Kbs Real Estate Invt Tr Iii Inc. · OTC:KBSR
Kbs Real Estate Invt Tr Iii — KBS Real Estate Investment Trust III — Investor Presentation (November 2019)
34 slides from Kbs Real Estate Invt Tr Iii's investor presentation, Nov 20, 2019
Slide 1: KBS Real Estate Investment Trust III Presentation
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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 III’s (the “Company” or “KBS REIT III”) Annual Report on Form 10-K for the year ended December 31, 2018 (the “Annual Report”), and in the Company’s Quarterly
Slide 3: About KBS
Transactional volume in excess of $42.3 billion1, About KBS AUM of $11.2 billion1 and 35.3 million square feet under management1. Formed by Peter Bren and Chuck 8th Largest Office Owner Globally, National Schreiber in 1992. Real Estate Investor2. Over 26 years of investment and Among Top 44 Global R
Slide 4: Regional Focus Map
Regional Focus Map Gateway Target First-tier Target Strong Employment / Growth KBS Offices :::;(<=>;?@. #
Slide 5: Office Market Update
Office Market EMPLOYMENT INDICATORS* Update Q3 18 Q3 19 12-Mo. Forecast Total Non-Farm Employment 149.4 M 151.5 M ! According to Cushman & Wakefield’s Office-Using Employment 32.7 M 33.0 M ! Third Quarter 2019 MarketBeat Report, the U.S. economy continued to grow at a Unemployment 3.8% 3.7% ! steady
Slide 6: KBS REIT III Singapore Portfolio Sale
Real Estate Investment Trust Ill KBS Singapore Portfolio Sale = ALD SWWT ES
Slide 7: Introduction: The Singapore Portfolio Sale
ON JULY 18, 2019 Introduction The Singapore Portfolio sale 11 Properties Sold resulted in a $147.4 million gain KBS Real Estate Investment Trust $1.2 Billion Sale Price over cost basis, which represents III, Inc. (the "Company“) has a $0.09 increase per share in the On July 18, 2019, the Company exe
Slide 8: The Portfolio Sale Generated Proceeds of $413.0 Million
The Portfolio Dollars in Thousands Sale Generated Gross Sales Proceeds $ 1,222,150 Proceeds of 1 $413.0 Million Seller Credit (10,093) KBS REIT III 31.3% Interest in SREIT 2 (254,814) Subtotal-Net Sale Price Less 957,243 KBS REIT III Interest Closing Costs, Interest Rate (19,893) Buydown, Advisor Di
Slide 9: Use of Proceeds
Use of Proceeds Recognizing that the Company’s shareholders each have different investment objectives, timelines, and liquidity needs, the Company has and will consider using the net proceeds from the Portfolio Sale for a variety of shareholder liquidity options, including: #1 #2 #3 #4 Expanded Auth
Slide 10: Special Dividend
As a result of taxable capital gains, the REIT has November 4, 2019 authorized a special dividend to stockholders as of November 4, 2019 that will be paid in Special Dividend December 2019 Special dividend of $0.80 per share payable to stockholders of The Company will pay a special [ record as of No
Slide 11: Special Dividend
Special Dividend !"#$%&'%()*+,-++./%0*%($1,$2,3#')(*+,4(5(6'16,$1,3&*0'&$+6'0,7))$.1%89, Total Record Date November 4, 2019 Estimated Account Total Cash Value Per Total Value and Account Distributions Share Shares Cash Value Distributions Receipt of a cash payment in the special dividend ultimately
Slide 12: Fund and Portfolio Overview
Fund and Portfolio Overview )!
Slide 13: Fund and Portfolio Overview
Fund and Portfolio FUND PORTFOLIO Primary Offering Broke Escrow December 2018 Estimated Value of Overview May 24, 2011 Current Properties1 $3.1 billion Primary Offering Closed Current Value of Investment in As of September 30, 2019, unless July 28, 2015 PRIME US REIT otherwise noted; Capital Raised
Slide 14: Current Portfolio of Properties
Current Portfolio of Properties 20 Class A Properties DE;6(='&&'"/6 8.3 Million RSF2 Urban, Well-Located, Institutional-Quality Portfolio 91.3% Leased3 Mass Transit Connectivity Growth Markets & Urban 4.4 Years Weighted Average Lease Term4 Live/Work/Play Locations In-place Rents 10% Below Market Rec
Slide 15: The Current Portfolio of Properties
The Current Portfolio of Properties Building Classification Leased Occupancy Mass Transit Leased Occupancy Property Metro City Class Sq. Ft. (CBD, Urban, at September 30, Availability at Acquisition ( A,B or C) Suburban) 20191 WEST Anchor Centre Phoenix A 333,014 Suburban Metro 78% 96% Gateway Tech
Slide 16: The Current Portfolio of Properties
The Current Portfolio of Properties The following map shows the markets where the current portfolio of properties is located. It is: • In major target markets which are high-ranked as office absorption leaders in the last 10 years • In top tech markets. • In prime locations within the markets, via p
Slide 17: Statistics for the Current Portfolio
Statistics for the Current Portfolio Market Diversification 1 Asset Diversification 1 Invested in Target Markets: Asset Diversification: 46% of value2 in CBRE’s Top 10 Tech Markets Largest asset accounts for just 16% 89% of value2 in CBRE’s Top 25 Tech Markets !"#$%&'"%()&)*"(+",-&"$../$0%&'"1$)2&%"
Slide 18: 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 9.7 4.2% Real Estate and Rental WeWork 3 201 Spear Street 78.869 10.9
Slide 19: 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 31.2% 10.30% Property WeWork Occupancy 100% 100% WeWork Tenants Google is a single tenant Qualtrics, Navigent, United Health Construction is underw
Slide 20: Statistics for the Current Portfolio
Statistics for the Current Portfolio @2-#(FG8(H-/,/$C(I'$J(>$,00-#-+(K-,C-(LM*'#,$'"/C(,/+(N/+OC$#P(Q'2-#C'%'R,$'"/ Lease Expirations 1 $40000 15.1% 13.7% $30000 10.9% 11.1% 10.0% 10.1% $20000 8.1% 6.2% 5.2% 4.4% $10000 2.4% 2.8% Annualized Base Rent ($000) Rent Base Annualized $0 MTM 2019 2020 2021
Slide 21: Capital Management
1 Capital Management SC("%(>-*$-34-#(E87(58697(O/&-CC("$J-#I'C-(/"$-+ Initial Debt Maturities 1 $1,000,000 7 1 $798,018 Total Debt $1.4 billion $800,000 $600,000 $379,245 $400,000 $200,000 $141,113 $93,000 Loan-to-Value2 42% $151 $0 $0 2019 2020 2021 2022 2023 Therea… Average cost of debt 3.74% per
Slide 22: Property Updates
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Slide 23: Carillon
Carillon Key Statistics Current Market Rent/ Weighted-Avg. Lease Charlotte, NC Rentable SF Leased Occupancy1 In - Place Rent1 Term (Yrs.)1 $33.50 / $28.58 488,277 92.3% 3.3 (17.2% Mark-to-Market) Key Tenants Tenant Sq. Ft. % of Property RSF Cadwalader Wickersham Taft 45,922 9.4% Crescent Communities
Slide 24: Park Place Village
Park Place Village Key Statistics Current Market Rent/ Weighted-Avg. Lease Leawood, KS Rentable SF Leased Occupancy1 In - Place Rent1 Term (Yrs.)1 93.8% Office $28.05 / $27.81 483,984 5.6 86.2% Retail (0.8% Mark-to-Market) Key Tenants Tenant Sq. Ft. % of Property RSF AMC 163,655 33.8% SCOR Global 40
Slide 25: Congress Avenue
515 Congress Avenue Key Statistics Current Market Rent/ Weighted-Avg. Lease Austin, TX Rentable SF Leased Occupancy1 In - Place Rent1 Term (Yrs.)2 $42.00 NNN / 263,058 93.69% $35.64 NNN 3.5 (17.8% Mark-to-Market) Key Tenants Tenant Sq. Ft. % of Property RSF Cloudera 27,222 10.4% Bright Health 14,082
Slide 26: Stockholder Performance
Stockholder The December 2018 estimated value per share was performed in accordance with the provisions of and also to comply with the IPA Valuation Guidelines. As with any valuation methodology, the methodologies used Performance are based upon a number of estimates and assumptions that may not be
Slide 27: Stockholder Performance
Further, the estimated value per share is based on the estimated value of KBS REIT III’s assets less the estimated Stockholder value of KBS REIT III’s liabilities, divided by the number of shares outstanding, all as of September 30, 2018, with the exception of an adjustment to KBS REIT III’s net ass
Slide 28: Stockholder Performance: Distribution History
Stockholder Performance Distribution History1: June 24, 2011 – September 30, 2019: $0.65/share on an annualized basis !"#$%&'"(+"'0%,/062,0(+%"'&<)$/&'"$%"(3"a(1&56&/";9":8!J>"?(,$)" '0%,/062,0(+%".$0'",-/(2B-"4&.,&56&/"789":8!J9"<(+%0%,&'"(3"Q8N".$0'"0+" <$%-"$+'"Q8N"/&0+1&%,&'",-/(2B-",-&"'010'&+'
Slide 29: Hypothetical Performance of Early and Late Investors
Stockholder Hypothetical Performance of Early and Late Investors Hypothetical Assumes all distributions have been taken in cash and stockholder has held shares since the dates below Performance Sum of Estimated Value Per Cumulative Cash Share as of December 3, Estimated Value Distributions Per Share
Slide 30: Hypothetical Performance of First and Last Investor
Hypothetical Performance of First and Last Investor Stockholder Performance $17.34 total value for first cash investor 1, 2 September 2019 $14.68 total value for last cash investor 1, 2 Breakdown of First Cash Investor Value Breakdown of Last Cash Investor Value $17.34 1, 2 $16.85 $14.68 1, 2 $15.91
Slide 31: Strategic Alternatives
Strategic As the Board of Directors evaluates various strategic alternatives, they will be focused on certain key Alternatives attributes of the Company including the current portfolio size and performance, shareholder desire for liquidity as well as their desire to stay invested Following the Portf
Slide 32: REIT III Goals & Objectives
REIT III Goals & Objectives Provide enhanced shareholder liquidity Finalize a review of strategic alternatives, with the goal of further enhancing shareholder liquidity and maximizing shareholder value Complete major capital projects, such as renovations or amenity enhancements, with the goal of att
Slide 33: Upcoming: December 2019 NAV Update
Upcoming: December 2019 NAV update Please join us December 12, 2019 for the December 2019 NAV update webcast. :::;(<=>;?@. ""
Slide 34: Q&A
Q&A For additional questions, contact KBS Capital Markets Group Investor Relations (866) 527-4264 "#
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