KBS Real Estate Investment Trust III, a public nontraded real estate investment trust based in Newport Beach, Calif., announced that its board of directors has approved an estimated net asset value (NAV) per share of its common stock of $12.02 as of Dec. 3, 2018. This estimated value per share is based on the estimated value of the REIT’s assets less the estimated value of the REIT’s liabilities, or NAV, divided by the number of shares outstanding as of Sept. 30, 2018.
“We are pleased to announce strong performance of the portfolio overall,” said Chuck Schreiber, CEO and director of KBS Real Estate Investment Trust III. “We believe this valuation supports the core and core-plus value strategies we have used to build and manage this portfolio.”
The company’s conflicts committee, composed solely of the company’s independent directors, engaged Duff & Phelps, an independent third-party real estate valuation firm, to provide appraisals for the REIT’s real estate properties and to provide a calculation of the range in estimated value per share of the REIT’s common stock. KBS Capital Advisors, the REIT’s external advisor, performed valuations of the REIT’s other assets and liabilities. Upon the committee’s receipt and review of Duff & Phelps’ valuation report and consideration of the material assumptions and valuation methodologies applied and described therein, the committee recommended to the board of directors that it adopt $12.02 as the estimated per share of the REIT’s common stock, which represents the mid-point of the range determined by Duff & Phelps in its valuation report.
The valuation was performed in accordance with the methodology provided in the Institute for Portfolio Alternatives’ (formerly known as the Investment Program Association) practice guideline regarding valuations of publicly registered nonlisted REITs. The estimated NAV does not reflect any “portfolio premium”, nor does it reflect an enterprise value for the company.
