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KBS REIT Declares NAV Per Share and Prepares for Liquidation Vote

The board of KBS REIT, a publicly registered non-traded real estate investment trust, approved an estimated $3.65 per share net asset value of its common stock. In addition to satisfying the requirements of FINRA 15-02, the NAV estimate was used to help calculate the projected net proceeds that investors could receive from the proposed liquidation and dissolution of the company. The REIT also filed preliminary proxy materials with the Securities and Exchange Commission relating to the upcoming liquidation vote.

The company engaged Duff & Phelps, an independent valuation firm, to appraise its portfolio and provide an estimated NAV per share range of the company’s common stock as of October 5th. According to the preliminary proxy materials, KBS REIT investors are expected to receive between $3.27 and $3.68 per share, if the plan of liquidation is approved and successfully implemented. The company noted that it previously paid special distributions of $0.65 per share to stockholders in connection with the sale of real estate properties from 2012 through 2015.

The company said that the principal purpose of the plan of liquidation is to maximize stockholder value by selling its assets, pay its debts and distribute the net proceeds from liquidation to its stockholders. As reported by The DI Wire earlier this year, the REIT’s board of directors formed a special committee comprised of independent directors that appointed Evercore Group to act as its financial advisor and assist with the strategic alternatives exploration process.

The date and time of the annual meeting, which will take place at the Island Hotel in Newport Beach, has yet to be disclosed.

KBS Real Estate Investment Trust launched its initial public offering in January 2006 for up to 200 million shares of common stock and 80 million DRIP shares. The REIT raised $1.7 billion in its primary offering before its closing in May 2008, and $233.7 million under its dividend reinvestment plan which was terminated in April 2012. The company’s portfolio consists of 188 real estate properties, three real estate loans receivable, and a participation interest in a real estate joint venture.



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