Park Place Village, Leawood, KS
KBS Real Estate Investment Trust III
Closed On May 29, 2015
CASH DISTRIBUTION HISTORY*
|RECORD DATE||Annualized Distribution Rate at $10.00 Per Share|
|June 24, 2011 – December 2018||$0.00178082||Daily||6.5%|
|January 2019 – December 2019**||$0.05416667||Monthly||6.5%|
|November 2019||$0.80||November 4, 2019|
*KBS REIT III has paid distributions monthly, since July 2011. For the periods from June 2011 through December 2018, distributions were calculated based on stockholders of record each day during the period at a daily rate of $0.00178082 per share per day and equaled a daily amount that, if paid each day for a 365-day period, would equal a 6.5% annualized rate based on the initial primary offering purchase price of $10.00 per share in the REIT’s now-terminated primary initial public offering. For the periods from January 2019 through December 2019, distributions are calculated based on stockholders of record on monthly record dates and equaled a monthly amount that, if paid each month for a 12-month period, would equal a 6.5% annualized rate based on the initial primary offering purchase price of $10.00 per share in the REIT’s now-terminated primary initial public offering or a 5.41% annualized rate based on the December 2018 estimated value per share of $12.02. There is no assurance that KBS REIT III will continue to declare and pay distributions at this rate and KBS REIT III may modify the rate at its discretion.
Distributions paid through September 30, 2019, consisting of 50% paid in cash and 50% reinvested through the dividend reinvestment plan, have been funded with 89% coming from cash flows from operations, 7% from debt financing, and 4% from proceeds from asset sales. 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.
**As of November 8, 2019, distributions for November 2019 and December 2019 have been declared and the REIT expects to pay them on or about the first business day of the following month.
***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 to stockholders of record as of the close of business on November 4, 2019. The special dividend was paid in December 2019 to stockholders of record as of the close of business November 4, 2019.