KBS REIT II Board Approves Second Liquidating Distribution
August 4, 2020
From the REIT’s August 3, 2020, 8-K filing:
“Pursuant to the terms of KBS Real Estate Investment Trust II, Inc.’s (the “Company”) plan of complete liquidation and dissolution (the “Plan of Liquidation”), on July 31, 2020, the Company’s board of directors authorized a second liquidating distribution in the amount of $0.25 per share of common stock to the Company’s stockholders of record as of the close of business on August 3, 2020 (the “Second Liquidating Distribution”). The Second Liquidating Distribution will be funded from proceeds from the sale of two office buildings in Corporate Technology Centre – 100 Headquarters and 200 Holger. The Company expects to pay the Second Liquidating Distribution on August 7, 2020.
Since the Second Liquidating Distribution is a liquidating distribution pursuant to the Plan of Liquidation, it will reduce the Company’s stockholders’ remaining investment in the Company and reduce the estimated future liquidating distributions per share to be received by the Company’s stockholders by $0.25 per share.”
The Company also updated its estimated value per share of the Company’s common stock to $2.41 per share, effective August 7, 2020, to reflect the impact of the payment of the Second Liquidating Distribution.
From the 8-K:
“The August 2020 Estimated Value Per Share is equal to the midpoint of the estimated range of liquidating distributions of $3.40 and $3.83 per share of $3.615 reduced by (i) the Company’s authorization of an initial liquidating distribution of $0.75 per share of common stock to the Company’s stockholders of record as of March 5, 2020 (the “Initial Liquidating Distribution”), which was paid on March 10, 2020, (ii) an estimated decrease in the net value of the Company’s remaining real estate properties and other net assets held as of June 9, 2020 of $0.21 per share due to the impact of the novel coronavirus disease (“COVID-19”) pandemic on leasing projections, projected rental rates, hold periods and the resulting ultimate estimated impact on sales prices of the real estate properties, and (iii) the Company’s authorization of the Second Liquidating Distribution of $0.25 per share of common stock. Thus, the August 2020 Estimated Value Per Share reflects the resulting reduction of the stockholders’ remaining investment in the Company.”
Source: SEC
