KBS Growth & Income REIT Board of Directors Encourages Liquidation

In a recent letter to stockholders, KBS Growth & Income REIT announced that at the company’s upcoming annual meeting, the board will seek their approval for the complete liquidation and dissolution of the company.

As the DI Wire previously reported, the KBS REIT advised that its board of directors began a review of strategic alternatives which would likely lead to the adoption of a plan of liquidation.

According to the filing, the board of directors and a special committee comprised of its independent members each unanimously determined that liquidation is in the company’s and stockholder’s best interest. KBS currently estimates that the net proceeds from liquidation and the amount of cash that stockholders would receive for each share of their common stock would range between approximately $0.59 and $1.16 per share.

In a quarterly report with the Securities and Exchange Commission from November 2022, the KBS REIT indicated that its portfolio was under significant pressure and stated it was unlikely to be able to “continue as a going concern.” The company is facing near term loan maturities which it may not be able to refinance under current terms. Specifically, the company’s $45.7 million mortgage loan tied to the Commonwealth Building, an office building located in Portland, Oregon that is just 51.8% occupied, is maturing in February 2023. The company also has a modified term loan with an outstanding of $52.3 million due to mature in November 2023.

In August 2020, KBS terminated their distribution reinvestment plan to pursue a liquidation strategy.

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