KBS Strategic Opportunity REIT Announces NAV and $3.61 Special Dividend
December 12, 2017 | James Sprow | Blue Vault
On December 7, 2017, KBS Strategic Opportunity REIT’s board of directors approved an estimated value per share of the Company’s common stock of $11.50 based on the estimated value of the Company’s assets less the estimated value of the Company’s liabilities, or net asset value, divided by the number of shares outstanding as of September 30, 2017, with the exception of adjustments to (i) the Company’s net asset value to give effect to a self-tender offer completed in October 2017 and the December 7, 2017 declaration of a special dividend of $3.61 per share on the outstanding shares of common stock of the Company to the stockholders of record as of the close of business on December 7, 2017. Excluding the Special Dividend, the Company’s estimated value per share of common sto.7ck would be $15.11. Other than the Self-Tender and the declaration of the Special Dividend, there have been no material changes between September 30, 2017, and December 13, 2017, to the net values of the Company’s assets and liabilities that impacted the overall estimated value per share.
KBS Strategic Opportunity REIT, Inc. had its IPO in November 2009 and raised $574.4 million in the offering which ended November 14, 2012. Common shares were initially offered at $10.00 per share. The REIT has paid regular quarterly distributions at the rate of 3.75% annually based on the initial $10.00 offering price since Q1 2015.
On November 8, 2017, the Company completed the sale of the Singapore Portfolio; however, the transaction did not have a material impact on the Company’s estimated value per share of common stock as the valuation of the Singapore Portfolio used in the calculation of the Company’s estimated value per share was based on the sales price less actual disposition costs and fees of the Singapore Portfolio.
Appraisals on (i) all of the Company’s consolidated investments in real properties, excluding one office property acquired in September 2017, investments in undeveloped land and the Singapore Portfolio, and (ii) two of its unconsolidated investments in real estate properties were performed by Duff & Phelps, LLC. Appraisals of the Company’s investments in undeveloped land were performed by Newmark Knight Frank Valuation & Advisory, LLC, a division of Newmark Knight Frank.
As of September 30, 2017, the Company owned 22 real estate assets (consisting of 14 office properties, one office campus consisting of nine office buildings and 18 acres of undeveloped land, one office portfolio consisting of four office buildings and 25 acres of undeveloped land, one office/flex/industrial portfolio consisting of 21 buildings, one retail property, two apartment properties and two investments in undeveloped land with approximately 1,100 developable acres). On November 8, 2017, the Company, through 11 wholly-owned subsidiaries, sold the Singapore Portfolio to various subsidiaries of Keppel-KBS US REIT, a newly formed Singapore real estate investment trust that is listed on the Singapore Stock Exchange. The Company sold ten office properties and one office campus consisting of nine office buildings and 18 acres of undeveloped land. The estimated value for the Singapore Portfolio sold subsequent to September 30, 2017, was $804.0 million, before sales credits and costs.
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