Park Place Village, Leawood, KS
KBS Real Estate Investment Trust III
Closed On May 29, 2015
CASH DISTRIBUTION HISTORY*
|RECORD DATE||Annualized Distribution Rate|
|June 24, 2011 – December 2018||$0.00178082||Daily||6.5%|
|January 2019 – December 2019||$0.05416667||Monthly||6.5%|
|January 2020 – May 2020**||$0.04983333||Monthly||6.5%|
|PERIOD||PAID IN CASH AND STOCK DISTRIBUTION
|November 2019||$0.80||November 4, 2019|
*Distributions paid through March 31, 2020, excluding stock distributions issued in the Special Dividend, consisted of 53% paid in cash and 47% reinvested through the dividend reinvestment plan. KBS REIT III funded total distributions paid, which includes net cash distributions and dividends reinvested by stockholders, but excludes stock distributions issued in the Special Dividend, with 82% of cash flow from operating activities, 8% from debt financing and 10% with proceeds from asset sales. In addition, in connection with the December 12, 2019 Special Dividend payment, which was paid 35% in cash and 65% in stock, KBS REIT III issued $90.0 million in shares of common stock. For more information, please refer to KBS REIT III’s public filing. Because a portion of the distributions paid to date were paid with borrowings, distributions and the distribution rates referenced above may not be sustainable.
KBS REIT III’s charter permits it to pay distributions from any source, including offering proceeds or borrowings (which may constitute a return of capital), and does not limit the amount of funds it may use from any source to pay such distributions. If KBS REIT III pays distributions from sources other than cash flows from operating activities, it will have less funds available to make real estate investments and the overall return to its stockholders may be reduced.
**On May 25, 2020, the board of directors of KBS REIT III authorized a May 2020 distribution and the REIT expects to pay on or about the first business day of the following month. Annualized distribution amount assumes the monthly amount is paid each month for a 12-month period. KBS REIT III can give no assurances regarding the amount or timing of future distributions.
***On October 23, 2019, the board of directors of KBS REIT III authorized a special dividend in the amount of $0.80 per share of common stock payable in either shares of KBS REIT III’s common stock or cash to, and at the election of, the stockholders of record as of the close of business on November 4, 2019. If stockholders elected all cash, their election was subject to adjustment such that the aggregate amount of cash distributed by KBS REIT III was a maximum of 35% of the total Special Dividend, with the remainder paid in shares of common stock. The special dividend was paid on December 12, 2019 to stockholders of record as of the close of business November 4, 2019. KBS REIT III paid $48.5 million (35%) in cash and issued $90.0 million (65%) in stock pursuant to the Special Dividend.