The board of KBS Real Estate Investment Trust III Inc. has unanimously approved an estimated net asset value of the company’s common stock of $10.63 as of September 30, 2016.
The board previously declared an estimated NAV per share of $10.04 as of September 30, 2015 on December 8, 2015.
The valuation is based on the estimated value of the company’s assets, less the estimated value of the its liabilities, divided by the number of shares outstanding. No portfolio premiums were included, per the Investment Program Association’s valuation guidelines for non-traded REITs.
Duff & Phelps, an independent third-party valuation firm, conducted the valuation upon which the NAV was determined, providing the company with an estimated range of $9.77 to $11.50, with $10.63 being the approximate midpoint.
Per the company’s previously adopted distribution reinvestment plan, shares purchased via the DRIP will be priced at 95 percent of the current NAV, or $10.10 per share beginning in January 2017.
The company’s share redemption program remains unchanged, aside from adopting the new NAV of $10.63 as the baseline for determining the redemption price.
KBS REIT III’s initial offering commenced in October 2010 and terminated in July 2015 after raising approximately $1.7 billion. As of September 30, 2016, the company’s $3 billion portfolio was comprised of 28 office properties and one mixed-use office/retail property and has entered into a joint venture with a developer to develop one multi-family apartment project, which is currently under construction.