NEWPORT BEACH, Calif., Dec. 18, 2017 /PRNewswire/ -- KBS Growth & Income Real Estate Investment Trust – a professionally managed portfolio of institutional-quality commercial real estate properties available to accredited investors and advisors through the new KBSDirect.com portal – recently announced its estimated net asset value ("NAV") per share of $8.79 as of December 8, 2017, an increase of $0.04 per share from its previous estimated NAV per share of $8.75 as of August 9, 2017.
"We are pleased with the performance of KBS Growth & Income Real Estate Investment Trust, the first offering on our new KBS Direct direct-investment platform," said KBS CEO Charles J. Schreiber. "Our increase in value in such a relatively short period is a reflection of our local market expertise and our active asset management philosophy. Acquiring signature properties in great locations with strong job growth and making targeted improvements helps return value to our investors."
KBS Growth & Income Real Estate Investment Trust currently includes four institutional-quality office properties in Irvine, CA, Portland, OR, Chicago, IL and Houston, TX, with a target offering of $1 billion. The portfolio, valued at $193.9 million, sits on KBS' recently debuted direct-access online platform, KBSDirect.com allowing accredited investors and advisors direct access to institutional-quality commercial real estate properties with no upfront fees or commissions paid by the investor.
On December 8, 2017, KBS Growth & Income Real Estate Investment Trust's board of directors determined and approved the estimated NAV per common share of $8.79. KBS Growth & Income Real Estate Investment Trust engaged a third-party valuation firm to perform a review of its estimated values of assets and liabilities as of September 30, 2017. The third-party valuation firm independently estimated a range of values for assets and liabilities as of September 30, 2017 based on (i) appraisals of KBS Growth & Income Real Estate Investment Trust's three real estate properties owned as of September 30, 2017 performed by the valuation firm, (ii) valuations performed by the KBS advisor, with respect to cash, other assets, mortgage debt and other liabilities and (iii) a reduction to the net asset value for acquisition and financing costs related to a real estate acquisition subsequent to September 30, 2017.
About KBS Growth & Income REIT
KBS Growth & Income REIT is a public-reporting company that has elected to qualify as a real estate investment trust for tax purposes. It intends to acquire and manage a diverse portfolio of premium commercial real estate properties across the U.S. Its portfolio currently features four institutional-quality office buildings.
KBSDirect.com is an online portal that empowers accredited investors and advisors to invest directly in professionally managed institutional-quality real estate portfolios with access similar to KBS's institutional investors and partners. KBSDirect.com's first direct share offering is KBS Growth & Income REIT, a $1.0 billion offering conducted under Rule 506(c) of Regulation D. Investors pay no up-front sales commissions and investors' funds go directly into real estate. KBS Growth and Income REIT is sponsored by KBS, which formed its first investment advisor in 1992 and is ranked by National Real Estate Investor as the 11th largest commercial real estate company in the United States as of April 20, 2017.
KBS Capital Advisors is the external advisor to KBS Real Estate Investment Trusts (REITs), and is an affiliate of KBS Realty Advisors, a private equity real estate company and SEC-registered investment adviser founded in 1992. Since its inception, KBS-affiliated companies have completed transactional activity in excess of $35 billion via 16 separate accounts, six commingled funds, five sovereign wealth funds and seven non-traded REITs. For information, visit www.kbs.com.
The foregoing includes forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. KBS Growth & Income Real Estate Investment Trust (the "REIT") intends that such forward-looking statements be subject to the safe harbors created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements regarding the intent, belief or current expectations of the REIT and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The REIT undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. Such statements are subject to known and unknown risks and uncertainties which could cause actual results to differ materially from those contemplated by such forward-looking statements. The REIT makes no representation or warranty (express or implied) about the accuracy of any such forward-looking statements. These statements are based on a number of assumptions involving the judgment of management. The appraisal methodology for the appraised properties assumes the properties realize the projected net operating income and expected exit cap rates and that investors would be willing to invest in such properties at yields equal to the expected discount rates. Though the appraisals of the appraised properties, with respect to the valuation firm, and the valuation estimates used in calculating the estimated value per share, with respect to the valuation firm, the REIT and its external advisor, are the respective party's best estimates as of September 30, 2017, the REIT can give no assurance in this regard. Even small changes to these assumptions could result in significant differences in the appraised values of the appraised properties and the estimated value per share. There are no guarantees as to the ability of the REIT to raise its targeted offering proceeds of $1.0 billion. Past performance is no guarantee of future results. Achieving such targets will depend on the ability of the REIT to raise money through KBSDirect.com, a new and untested investment portal and the real estate and financial markets. The REIT does not provide tax advice and does not represent in any matter that an investment in the REIT's shares will result in any particular tax consequence. Prospective investors should consult with their personal tax advisors regarding the tax consequences based on their particular circumstances. The REIT does not assume responsibility for the tax consequences for any investors of an investment in the REIT's shares. These statements also depend on factors such as: future economic, competitive and market conditions; the REIT's ability to maintain occupancy levels and rental rates at its real estate properties; and other risks identified in Part I, Item IA of the REIT's Annual Report on Form 10-K for the year ended December 31, 2016, and Part II, Item 1A of the REIT's Quarterly Report on Form 10-Q for the period ended September 30, 2017, each as filed with the SEC. Actual events may cause the value and returns on the REIT's investments to be less than that used for purposes of the REIT's estimated NAV per share.
Securities offered through North Capital Private Securities, member FINRA/SIPC.