KBS Real Estate Investment Trust III Announces $11.65 NAV Per Share
December 12, 2019 | James Sprow | Blue Vault
On December 4, 2019, KBS REIT III’s board of directors approved an estimated value per share of the Company’s common stock of $11.65, with the adjustment for the October 23, 2019, authorization of a special dividend of $0.80 per share. Excluding the special dividend, the Company’s estimated value per share of common stock would be $12.45. The most recent net asset value per share as of September 30, 2018, was $12.02.
As of September 30, 2019, the Company owned 18 office properties and one mixed-use office/retail property and had entered into a consolidated joint venture to develop and subsequently operate a multifamily apartment project, which is currently under construction. In addition, the Company owned an investment in the equity securities of Prime US REIT, a Singapore real estate investment trust.
On July 18, 2019, the Company sold 11 of its properties for a total sale price of $1.2 billion, before third-party closing costs and credits. In connection with the sale, the Company repaid $613.1 million of outstanding debt secured by these properties.
On October 23, 2019, the Company's board of directors authorized a special dividend in the amount of $0.80 per share of common stock to stockholders of record as of the close of business on November 4, 2019. The special dividend will be paid in December 2019. The dividend is payable in the form of (1) cash or (2) shares of the Company's stock, at the election of the Company's stockholders, provided that the aggregate amount of cash to be distributed will be limited to a maximum of 35% of the total special dividend. If the total number of shares for which cash elections are made exceeds the 35% threshold, the payment of cash will be made on a pro-rata basis. This special distribution is primarily the result of the Company's sale of 11 properties for $1.2 billion in July 2019. The special dividend payment is expected to be taxed as a capital gain distribution.
Distributions declared per common share were $0.1625 for the three months ended September 30, 2019. If paid over a 365-day period, the annualized distribution rate would equal 6.00% based on the original offering price per share of $10.00.
Sources: SEC, Blue Vault
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