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KBS REIT II Reports Lower NAV

The board of KBS Real Estate Investment Trust II, a publicly registered non-traded REIT, has approved an estimated net asset value of $3.79 per share of the company’s common stock, as of November 13, 2019, which represents a reduction of $1.16 per share.

The board of KBS Real Estate Investment Trust II, a publicly registered non-traded REIT sponsored by KBS, has approved an estimated net asset value of $3.79 per share of the company’s common stock, as of Nov. 13, 2019.

The new NAV per share represents a reduction of $1.16 per share from last year’s valuation of $4.95 declared on December 3, 2018. This decrease was attributed to a reduction in real estate properties, selling costs, capital expenditures on real estate, and operating cash flow in excess of monthly distributions.

It was also attributed to a special distribution of $0.45 per share paid on June 21, 2019, which The DI Wire reported earlier this year, which was funded primarily from the $131.5 million sale of Pierre Laclede Center and Emerald View at Vista Center.

The REIT’s advisor, KBS Capital Advisors LLC, used the appraised values of the company’s properties, together with the advisor’s estimated value of each of the company’s other assets and the company’s liabilities, to calculate and recommend an estimated value per share of the company’s common stock. KBS Capital Advisor’s valuation of the REIT’s seven real estate properties was based on appraisals performed by CBRE, Inc., an independent third-party valuation firm.

KBS REIT II closed its primary offering in December 2010 after raising approximately $1.8 billion in investor equity. Its portfolio consists of seven real estate properties (consisting of six office properties and an office campus consisting of five office buildings) worth an estimated $773.0 million as well as the pending sale of two real estate properties appraised for $303 million.

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