Park Place Village, Leawood, KS
KBS Growth & Income REIT
Closed On June 30, 2017
KBS Growth & Income REIT is a non-traded real estate investment trust (REIT) that closed its initial public offering on June 30, 2017. KBS Growth & Income REIT has acquired and is managing a portfolio of core, institutional-quality office properties in target areas where there has been significant job growth.
KBS Growth & Income REIT is focused on preserving and returning stockholders’ capital contribution, as well as providing stockholders with stable cash distributions.* The REIT will also seek to realize growth in the value of its investments by timing asset sales to maximize asset value.
*There are no assurances that KBS Growth & Income REIT will be able to make cash distributions.
The following website material is neither an offer to sell nor a solicitation of an offer to buy shares of KBS Growth & Income REIT; offering is only made by prospectus. This information must be preceded or accompanied by a prospectus in order to understand fully all of the implications and risks of the offering. Neither the Attorney General of the State of New York nor any other state regulators have passed on or endorsed the merits of this offering. Any representation to the contrary is unlawful.
Click on the document link to view prospectus and supplements. For more information contact the KBS Sales Desk: 866-527-4264
Please click on Important Risk Factors to learn more about risks you should consider:Important Risk Factors
Shares of KBS Growth & Income REIT are not suitable for all investors and an investment in KBS Growth & Income REIT is subject to substantial risks. These risks include, but are not limited to:
- The possibility of losing your entire investment.
- No guarantees regarding future performance.
- Upon sale or distribution of assets you may receive less than your initial investment.
- Fluctuation of the value of the assets owned by KBS Growth & Income REIT.
- The absence of a public market for shares of KBS Growth & Income REIT.
- Limited transferability and lack of liquidity.
- Reliance on KBS Capital Advisors LLC, the REIT’s external advisor, to select investments, manage and dispose of assets.
- Payment of significant fees to the advisor, its affiliates, and participating broker-dealers.
- Various economic factors that may include changes in interest rates, laws, operating expenses, insurance costs and tenant turnover.
KBS Growth & Income REIT’s distribution policy is generally not to use proceeds of an offering to pay distributions, though our board of directors may authorize such distributions under our organizational documents. The REIT may fund distributions from any source and there are no limits to the amount of distributions that it may pay from any source, including offering proceeds or borrowings (which may constitute a return of capital). Distributions paid from sources other than current or accumulated earnings and profits may constitute a return of capital. If the REIT pays distributions from sources other than cash flow from operations, it will have less funds available for investment in assets, the overall return to its stockholders may be reduced and subsequent investors will experience dilution. In addition, unless the REIT’s assets appreciate in an amount sufficient to offset the dilutive effect of any stock dividends the REIT pays, the return on invested capital for investors purchasing the REIT’s stock after the payment of a stock dividend may be below the return on invested capital of investors who received the stock dividend. KBS Growth & Income REIT has not established a minimum distribution level, and its charter does not require that it make distributions to its stockholders. There are no guarantees that KBS Growth & Income REIT will pay distributions.
KBS Growth & Income REIT pays substantial fees to and expenses of KBS Capital Advisors, its affiliates and participating broker-dealers, which payments increase the risk that its stockholders will not earn a profit on their investment. KBS Capital Advisors and its affiliates, and KBS Growth & Income REIT’s executive officers, its affiliated directors and other key professionals face conflicts of interest, including significant conflicts created by the advisor’s compensation arrangements with the REIT and other KBS-sponsored programs and KBS-advised investors.
KBS Growth & Income REIT’s advisor and its affiliates receive fees in connection with transactions involving the purchase or origination and management of the REIT’s investments. These fees are based on the cost of the investment, and not based on the quality of the investment or the quality of the services rendered to the REIT. This may influence the advisor to recommend riskier transactions to the REIT.
Disruptions in the financial markets and uncertain economic conditions could adversely affect KBS Growth & Income REIT’s ability to implement its business strategy and generate returns for its stockholders.
KBS Growth & Income REIT uses debt in connection with its investments, which increases the risk of loss associated with these investments and could hinder its ability to pay distributions to its stockholders or could decrease the value of its stockholders’ investments if income on, or the value of, the property securing the debt declines.
If KBS Growth & Income REIT does not raise significant proceeds in its public offering, it will be limited in the number and type of investments it makes and it may not be able to acquire as diverse portfolio of real estate investments, causing the value of its stockholders’ investment to fluctuate with the performance of the specific assets it acquires. In addition, its general and administrative expenses would constitute a greater percentage of its revenue. This result would reduce the REIT’s net income and cash flow and limit its ability to pay distributions to its stockholders.
KBS Growth & Income REIT may make adjustments to its target portfolio based on real estate market conditions and investment opportunities and may change its targeted investments and investment guidelines at any time without the consent of its stockholders, which could result in the REIT making investments that are different from, and possibly riskier than, the investments described in its prospectus, as amended and supplemented. Such changes may increase the REIT’s exposure to interest rate risk, default risk and real estate market fluctuations, all of which could adversely affect the value of its common stock and its ability to make distributions to its stockholders.
KBS Growth & Income REIT has no operating history and has not identified any assets to acquire or originate with proceeds from its public offering.
KBS Growth & Income REIT’s charter does not require it to liquidate its assets and dissolve, or to list its shares for trading, by a specified date. No public market currently exists for KBS Growth & Income REIT’s shares, and it has no plans to list its shares on a national securities exchange. If a stockholder is able to sell his/her shares, he/she would likely have to sell them at a substantial discount from their public offering price. There is no guarantee that KBS Growth & Income REIT will be able to provide liquidity by a certain date, or at all, or that any liquidity event would be successful. Investors may be required to hold their shares indefinitely.
The primary offering price of KBS Growth & Income REIT’s Class T shares was set arbitrarily, and based on that price, the primary offering price of the REIT’s Class A shares was set to account for differing sales commissions. These prices may not be indicative of the prices at which the shares would trade if they were listed on an exchange or actively traded, and the prices bear no relationship to the value of the REIT’s assets or to its expected operating income. In addition, the shares are subject to restrictions on transferability and re-sale and investors will be required to bear the financial risk of this investment for an indefinite period of time.
KBS Growth & Income REIT elected to be taxed as a REIT beginning with the taxable year ended December 31, 2015. Should KBS Growth & Income REIT not qualify as a REIT, it may be subject to adverse tax consequences. Please refer to the prospectus for more detailed information regarding these consequences.
An investment in the shares of KBS Growth & Income REIT is complex and is suitable only for persons who have adequate financial means, including minimum net worth and/or annual gross income levels. The minimum suitability standards are more stringent for investors in certain states. For more information regarding suitability standards, see the prospectus. Investors should read and consider the prospectus carefully before investing.