The board of KBS Real Estate Investment Trust II, a publicly registered non-traded REIT, has approved an estimated net asset value of $4.95 per share of the company’s common stock, as of September 30, 2018.
The new NAV per share is an increase of 1.2 percent compared to last year’s valuation of $4.89 per share, primarily due to selling costs related to properties sold, capital expenditures on real estate and operating cash flows in excess of monthly distributions.
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 nine real estate properties was based on appraisals performed by CBRE, Inc., an independent third-party valuation firm.
KBS REIT II has been liquidating its portfolio in recent years and has paid off hundreds of millions of dollars of mortgage debt and paid a special cash distribution of $3.75 per share to investors in 2014.
KBS REIT II closed its primary offering in March 2011 after raising $1.8 billion in investor equity. The REIT’s $1 billion portfolio consists of eight office properties and an office campus consisting of five office buildings.