The board of KBS Real Estate Investment Trust III, Inc., a publicly registered non-traded REIT, has approved an estimated net asset value of $12.02 per share of the company’s common stock, as of September 30, 2018.
The new NAV per share is an increase of 2.4 percent compared to last year’s valuation of $11.73 per share, primarily due to an increase in the appraised value of real estate properties, the increase in capital expenditures and development activity subsequent to September 30, 2017.
The valuation is based on the estimated value of the company’s assets less the estimated value of its liabilities, divided by the number of shares outstanding. Independent third-party firm Duff & Phelps LLC assisted with the valuation process which was performed in accordance with Institute for Portfolio Alternatives guidelines, the company said.
Duff & Phelps estimated that the NAV per share range was $11.11 to $12.94, with a mid-range value of $12.02 per share.
KBS REIT III’s initial offering commenced in October 2010 and closed in July 2015 after raising approximately $1.8 billion. As of September 30, 2018, the company’s portfolio was comprised of 27 office properties and one mixed-use office/retail property.