KBS Real Estate Investment Trust III, a non-traded real estate investment trust recently announced its net asset value (NAV) per share of $11.73 as of Dec. 6, 2017, an increase of $1.10 per share from its previous estimated NAV per share of $10.63 as of Dec. 9, 2016, according to a release.
KBS Real Estate Investment Trust III consists of 28 office properties and one mixed use office/retail property and is valued at $4.0 billion. KBS Real Estate Investment Trust III recently closed on a $1.01 billion financing facility, the largest in KBS’ history. Proceeds from the new loan facility are being used to replace existing debt agreements and for other KBS Real Estate Investment Trust III liquidity needs including capital improvement and capital expenditures on office properties held by KBS Real Estate Investment Trust III.
“KBS Real Estate Investment Trust III’s performance is a testament to our outstanding brokerage relationships, our ability to identify well-located properties and the deep on-the-ground expertise of our team of real estate professionals in managing them,” KBS CEO Charles J. Schreiber said. “By building a diversified portfolio of Class A buildings in areas with significant job growth, leveraging a lower cost of capital to fund improvements and making prudent capital investments in our buildings we have been able to build significant value for our investors.”
On Dec. 6, 2017, KBS Real Estate Investment Trust III's board of directors determined and approved the estimated NAV per common share of $11.73. KBS Real Estate Investment Trust III engaged a third-party valuation firm to perform a review of its estimated values of assets and liabilities as of Sept. 30, 2017.
The third-party valuation firm independently estimated a range of values for assets and liabilities as of Sept. 30, 2017 based on appraisals of 28 of KBS Real Estate Investment Trust III’s real estate properties owned as of Sept. 30, 2017 performed by the valuation firm, the contractual sales price less estimated disposition costs and fees with respect to one real estate property under contract to sell as of Dec. 6, 2017, valuations performed by the KBS advisor, with respect to KBS Real Estate Investment Trust III’s real estate construction in progress project, investment in an unconsolidated joint venture, cash, other assets, mortgage debt and other liabilities and a reduction to the net asset value for deferred financing costs related to the $1.01 billion financing facility that closed subsequent to Sept. 30, 2017.