KBS Growth & Income REIT Announces NAV of $8.43 Per Share
December 12, 2019
On December 4, 2019, KBS Growth & Income REIT’s board of directors approved an estimated net asset value (“NAV”) per share of its common stock of $8.43 based on the estimated value of assets less the estimated value of liabilities, or NAV, divided by the number of shares outstanding, all as of September 30, 2019. There have been no other material changes between September 30, 2019 and the date of the SEC filing that would impact the overall estimated NAV per share. This valuation was performed in accordance with the provisions of Practice Guideline 2013-01, Valuations of Publicly Registered, Non-Listed REITs, issued by the Institute for Portfolio Alternatives (formerly known as the Investment Program Association) (“IPA”) in April 2013 (the “IPA Valuation Guidelines”).
With the approval of the Company’s conflicts committee, the Company engaged Duff & Phelps, LLC (“Duff & Phelps”), an independent third-party real estate valuation firm, to provide a calculation of the range in estimated NAV per share of the Company’s common stock as of September 30, 2019. Duff & Phelps based this range in estimated NAV per share upon (i) appraisals of the Company’s four real estate properties owned as of September 30, 2019 (the “Consolidated Properties”) and an investment in an office property held through an unconsolidated joint venture as of September 30, 2019 (together with the Consolidated Properties, the “Appraised Properties”) performed by Duff & Phelps, and (ii) valuations performed by KBS Capital Advisors, LLC (the “Advisor”), the Company’s external advisor, with respect to the Company’s cash, other assets, mortgage debt and other liabilities, which are disclosed in the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2019.
Upon the conflicts committee’s receipt and review of Duff & Phelps’ valuation report, which included the appraised value of each of the Appraised Properties as noted in the appraisal reports prepared by Duff & Phelps and a summary of the estimated value of each of the Company’s other assets and liabilities as determined by the Advisor and reviewed by Duff & Phelps, and in light of other factors considered by the conflicts committee and the conflicts committee’s own extensive knowledge of the Company’s assets and liabilities, the conflicts committee: (i) concluded that the range in estimated NAV per share of $7.51 to $9.43, with an approximate mid-range value of $8.43 per share. The Company’s board of directors unanimously agreed to accept the recommendation of the conflicts committee and approved $8.43 as the estimated NAV per share of the Company’s common stock, which determination is ultimately and solely the responsibility of the Company’s board of directors.
Source: SEC
