The board of KBS Growth & Income REIT Inc., a publicly registered non-traded real estate investment trust, has adjusted the company’s distribution policy, citing the uncertainty caused by the ongoing public health crisis and its uncertain impact on the company’s operations and those of its tenants.
Going forward, the board expects to consider and declare distributions based on a single quarterly record date beginning with the third quarter of 2020. Previously, distributions were based on a monthly record date for each month.
The company said that distributions will be determined by the board of directors based on the company’s financial condition and such other factors as the board of directors deems relevant.
“Our board of directors will continue to evaluate the payment of future quarterly distributions in response to the uncertainty caused by the COVID-19 pandemic and may suspend or reduce future distributions,” the company said in a filing with the Securities and Exchange Commission.
KBS Growth & Income REIT’s initial private offering launched in June 2015 and raised $76.8 million before closing in April 2016. Its initial public offering raised $3.9 million from April 2016 until June 2017, and its second private offering launched in October 2017 and raised $5.4 million via KBSDirect.com, as of September 30, 2019. In December 2019, in connection with its consideration of strategic alternatives, the board decided to suspend the second private offering.
As of March 31, 2020, the company had invested in three office properties and had made an investment in an unconsolidated joint venture. Total assets for the first quarter of 2020 totaled $153.2 million.