%PDF-1.5 1 0 obj <> endobj 3 0 obj <>] /Rotate 0 /Contents 4 0 R>> endobj 4 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 18.00 Tf ET q 0 0 0 rg BT 235.55 743.85 Td (UNITED ST) Tj ET Q q 0 0 0 rg BT 330.74 743.85 Td (A) Tj ET Q q 0 0 0 rg BT 342.41 743.85 Td (TES) Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 112.70 722.25 Td (SECURITIES ) Tj ET Q q 0 0 0 rg BT 225.25 722.25 Td (AND EXCHANGE COMMISSION) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 244.15 707.85 Td (W) Tj ET Q q 0 0 0 rg BT 255.49 707.85 Td (ashington, D.C. 20549) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 691.85 Td ( ) Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 257.25 665.25 Td (FORM 10-Q) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.73 665.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 36.00 648.25 Td (\(Mark One\)) Tj ET Q /GS0 gs q 12.72 0 0 11.71 39.00 623.54 cm /I1 Do Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 69.00 627.12 Td (QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15\(d\) OF THE SECURITIES) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 69.00 615.12 Td (EXCHANGE ACT OF 1934) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 209.40 593.25 Td (For) Tj ET Q q 0 0 0 rg BT 224.77 593.25 Td ( the quarterly period ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.48 593.25 Td (June 30, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.54 593.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 576.25 Td (OR) Tj ET Q /GS0 gs q 10.69 0 0 11.71 39.00 551.54 cm /I2 Do Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 69.00 555.12 Td (TRANSITION REPORT PURSUANT TO SECTION 13 OR 15\(d\) OF THE SECURITIES) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 69.00 543.12 Td (EXCHANGE ACT OF 1934) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 219.80 521.25 Td (For) Tj ET Q q 0 0 0 rg BT 235.17 521.25 Td ( the transition period fr) Tj ET Q q 0 0 0 rg BT 335.53 521.25 Td (om ) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 351.3625 519.68505859375 m 381.3625 519.68505859375 l s q 0 0 0 rg BT 351.36 521.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.36 521.25 Td ( to ) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 394.692578125 519.68505859375 m 424.692578125 519.68505859375 l s q 0 0 0 rg BT 394.69 521.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.65 504.25 Td (Commission file number) Tj ET Q q 0 0 0 rg BT 335.47 504.25 Td ( 000-52606) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 488.25 Td ( ) Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 107.50 461.65 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 197.03 461.65 Td ( EST) Tj ET Q q 0 0 0 rg BT 234.22 461.65 Td (A) Tj ET Q q 0 0 0 rg BT 245.88 461.65 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 395.10 461.65 Td ( ) Tj ET Q q 0 0 0 rg BT 399.27 461.65 Td (TRUST) Tj ET Q q 0 0 0 rg BT 457.96 461.65 Td (, INC.) Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 504.46 461.65 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 190.45 449.65 Td (\(Exact Name of Registrant as Specified in Its Charter\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 433.65 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 422.85 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 144.60 403.08 Td (Maryland) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.00 403.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.80 403.08 Td (20-2985918) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 114.35 391.43 Td (\(State or) Tj ET Q q 0 0 0 rg BT 143.75 391.43 Td ( Other) Tj ET Q q 0 0 0 rg BT 166.04 391.43 Td ( Jurisdiction of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 112.25 383.43 Td (Incorporation or) Tj ET Q q 0 0 0 rg BT 169.66 383.43 Td ( Organization\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.00 383.60 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 417.15 391.43 Td (\(I.R.S. Employer) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 414.65 383.43 Td (Identification No.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 87.45 366.08 Td (800 Newport Center) Tj ET Q q 0 0 0 rg BT 173.91 366.08 Td ( Drive, Suite 700) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 108.60 356.08 Td (Newport Beach, California) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.00 356.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 433.50 357.03 Td (92660) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 97.60 344.43 Td (\(Address of Principal Executive Offices\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.00 344.30 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.40 344.43 Td (\(Zip Code\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.75 319.85 Td (\(949\) 417-6500) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 211.90 310.25 Td (\(Registrant’) Tj ET Q q 0 0 0 rg BT 252.92 310.25 Td (s ) Tj ET Q q 0 0 0 rg BT 257.89 310.25 Td (T) Tj ET Q q 0 0 0 rg BT 262.49 310.25 Td (elephone Number) Tj ET Q q 0 0 0 rg BT 322.42 310.25 Td (, Including ) Tj ET Q q 0 0 0 rg BT 360.89 310.25 Td (Ar) Tj ET Q q 0 0 0 rg BT 370.07 310.25 Td (ea Code\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.00 298.25 Td (______________________________________________________________________ ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 281.25 Td (Indicate by check mark whether the registrant: \(1\) has filed all reports required to be filed by Section 13 or 15\(d\) of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 269.25 Td (Securities Exchange ) Tj ET Q q 0 0 0 rg BT 119.31 269.25 Td (Act of 1934 during the preceding 12 months \(or for such shorter period that the registrant was required to file ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 257.25 Td (such reports\), and \(2\) has been subject to such filing requirements for the past 90 days. ) Tj ET Q q 0 0 0 rg BT 392.48 257.25 Td (Y) Tj ET Q q 0 0 0 rg BT 398.70 257.25 Td (es ) Tj ET Q /GS0 gs q 10.60 0 0 10.09 412.03 255.09 cm /I3 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.63 257.25 Td ( No ) Tj ET Q /GS0 gs q 8.91 0 0 10.09 449.85 255.09 cm /I4 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 236.25 Td (Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any) Tj ET Q q 0 0 0 rg BT 528.63 236.25 Td (, every ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 224.25 Td (Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T) Tj ET Q q 0 0 0 rg BT 424.34 224.25 Td ( \(§232.405 of this chapter\) during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 212.25 Td (preceding 12 months \(or for such shorter period that the registrant was required to submit and post such files\). ) Tj ET Q q 0 0 0 rg BT 485.80 212.25 Td (Y) Tj ET Q q 0 0 0 rg BT 492.02 212.25 Td (es ) Tj ET Q /GS0 gs q 10.60 0 0 10.09 505.35 210.09 cm /I5 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.95 212.25 Td ( No ) Tj ET Q /GS0 gs q 8.91 0 0 10.09 540.67 210.09 cm /I6 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 191.25 Td (Indicate by check mark whether the registrant is a lar) Tj ET Q q 0 0 0 rg BT 272.23 191.25 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 347.88 191.25 Td (, an accelerated filer) Tj ET Q q 0 0 0 rg BT 428.53 191.25 Td (, a non-accelerated filer or a smaller ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 179.25 Td (reporting company) Tj ET Q q 0 0 0 rg BT 111.16 179.25 Td (. See the definitions of “lar) Tj ET Q q 0 0 0 rg BT 218.72 179.25 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 294.37 179.25 Td (,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 167.25 Td (of the Exchange ) Tj ET Q q 0 0 0 rg BT 102.92 167.25 Td (Act. \(Check one\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 156.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 39.00 136.52 Td (Large Accelerated Filer) Tj ET Q /GS0 gs q 8.91 0 0 9.76 162.00 133.69 cm /I7 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 387.00 136.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 136.52 Td (Accelerated Filer) Tj ET Q /GS0 gs q 8.91 0 0 9.76 562.00 133.69 cm /I8 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 39.00 104.62 Td (Non-Accelerated Filer) Tj ET Q /GS0 gs q 10.60 0 0 9.76 162.00 102.49 cm /I9 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.00 104.62 Td (\(Do not check if a smaller reporting company\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 387.00 104.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 104.62 Td (Smaller reporting company) Tj ET Q /GS0 gs q 8.91 0 0 9.76 562.00 102.49 cm /I10 Do Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 79.45 Td (Indicate by check mark whether the registrant is a shell company \(as defined in Rule 12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 469.46 79.45 Td (Act\). ) Tj ET Q q 0 0 0 rg BT 499.36 79.45 Td (Y) Tj ET Q q 0 0 0 rg BT 505.58 79.45 Td (es ) Tj ET Q /GS0 gs q 8.91 0 0 10.09 518.91 77.29 cm /I11 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.82 79.45 Td ( No ) Tj ET Q /GS0 gs q 10.60 0 0 10.09 555.04 77.29 cm /I12 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 36.00 58.45 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.89 58.45 Td (August 7, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.28 58.45 Td (, there were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.70 58.45 Td (187,063,080) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.70 58.45 Td ( outstanding shares of common stock of KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 499.08 58.45 Td (T) Tj ET Q q 0 0 0 rg BT 504.84 58.45 Td (rust, Inc.) Tj ET Q endstream endobj 5 0 obj <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>] /Rotate 0 /Contents 6 0 R>> endobj 6 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 742.25 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 742.25 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 742.25 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 742.25 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 742.25 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 742.25 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 742.25 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.90 724.25 Td (FORM 10-Q) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.95 706.25 Td (June 30, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 335.01 706.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 289.85 688.25 Td (INDEX) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 671.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.40 651.52 Td (PART I.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 98 650.1833984375 m 222.9072265625 650.1833984375 l s q 0 0 1 rg BT 98.00 651.52 Td (FINANCIAL) Tj ET Q q 0 0 1 rg BT 151.52 651.52 Td ( INFORMA) Tj ET Q q 0 0 1 rg BT 199.03 651.52 Td (TION) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.00 636.52 Td (Item 1.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 635.1833984375 m 226.59375 635.1833984375 l s q 0 0 1 rg BT 143.00 636.52 Td (Financial Statements) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 620.1833984375 m 485.6904296875 620.1833984375 l s q 0 0 1 rg BT 143.00 621.52 Td (Consolidated Balance Sheets as of June 30, 2015 \(unaudited\) and December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 605.1833984375 m 519.6845703125 605.1833984375 l s q 0 0 1 rg BT 143.00 606.52 Td (Consolidated Statements of Operations \(unaudited\) for the ) Tj ET Q q 0 0 1 rg BT 379.15 606.52 Td (Three and Six Months Ended June ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 595.1833984375 m 217.4384765625 595.1833984375 l s q 0 0 1 rg BT 143.00 596.52 Td (30, 2015 and 2014) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 580.1833984375 m 517.169921875 580.1833984375 l s q 0 0 1 rg BT 143.00 581.52 Td (Consolidated Statements of Comprehensive Income \(Loss\) \(unaudited\) for the ) Tj ET Q q 0 0 1 rg BT 458.58 581.52 Td (Three and Six ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 570.1833984375 m 299.376953125 570.1833984375 l s q 0 0 1 rg BT 143.00 571.52 Td (Months Ended June 30, 2015 and 2014) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 555.1833984375 m 517.4580078125 555.1833984375 l s q 0 0 1 rg BT 143.00 556.52 Td (Consolidated Statements of Stockholders’) Tj ET Q q 0 0 1 rg BT 310.29 556.52 Td ( Equity for the ) Tj ET Q q 0 0 1 rg BT 370.46 556.52 Td (Y) Tj ET Q q 0 0 1 rg BT 376.68 556.52 Td (ear Ended December 31, 2014 and ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 545.1833984375 m 339.0888671875 545.1833984375 l s q 0 0 1 rg BT 143.00 546.52 Td (the Six Months Ended June 30, 2015 \(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 530.1833984375 m 517.6875 530.1833984375 l s q 0 0 1 rg BT 143.00 531.52 Td (Consolidated Statements of Cash Flows \(unaudited\) for the Six Months Ended June 30, 2015 ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 520.1833984375 m 179.9384765625 520.1833984375 l s q 0 0 1 rg BT 143.00 521.52 Td (and 2014) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 505.1833984375 m 493.498046875 505.1833984375 l s q 0 0 1 rg BT 143.00 506.52 Td (Condensed Notes to Consolidated Financial Statements as of June 30, 2015 \(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.00 491.52 Td (Item 2.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 490.1833984375 m 501.291015625 490.1833984375 l s q 0 0 1 rg BT 143.00 491.52 Td (Management’) Tj ET Q q 0 0 1 rg BT 197.98 491.52 Td (s Discussion and ) Tj ET Q q 0 0 1 rg BT 267.15 491.52 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.00 476.52 Td (Item 3.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 475.1833984375 m 382.3896484375 475.1833984375 l s q 0 0 1 rg BT 143.00 476.52 Td (Quantitative and Qualitative Disclosures about Market Risk) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.00 461.52 Td (Item 4.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 460.1833984375 m 241.3154296875 460.1833984375 l s q 0 0 1 rg BT 143.00 461.52 Td (Controls and Procedures) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.70 446.52 Td (PART II.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 98 445.1833984375 m 202.7216796875 445.1833984375 l s q 0 0 1 rg BT 98.00 446.52 Td (OTHER INFORMA) Tj ET Q q 0 0 1 rg BT 178.84 446.52 Td (TION) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.00 431.52 Td (Item 1.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 430.1833984375 m 217.140625 430.1833984375 l s q 0 0 1 rg BT 143.00 431.52 Td (Legal Proceedings) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.00 416.52 Td (Item 1A.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 415.1833984375 m 193.2783203125 415.1833984375 l s q 0 0 1 rg BT 143.00 416.52 Td (Risk Factors) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.00 401.52 Td (Item 2.) 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Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 370.1833984375 m 241.3154296875 370.1833984375 l s q 0 0 1 rg BT 143.00 371.52 Td (Mine Safety Disclosures) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.00 356.52 Td (Item 5.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 143 355.1833984375 m 216.0322265625 355.1833984375 l s q 0 0 1 rg BT 143.00 356.52 Td (Other Information) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.00 341.52 Td (Item 6.) 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gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 557.75 m 562.5 557.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 531.75 m 478.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 531.75 m 562.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 492.75 m 478.5 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 492.75 m 562.5 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 466.75 m 478.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 466.75 m 562.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 375.75 m 478.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 375.75 m 562.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 363.75 m 478.5 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 361.75 m 478.5 361.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 363.75 m 562.5 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 361.75 m 562.5 361.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 310.75 m 478.5 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 310.75 m 562.5 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 219.75 m 478.5 219.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 219.75 m 562.5 219.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 206.75 m 478.5 206.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 206.75 m 562.5 206.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 109.75 m 478.5 109.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 109.75 m 562.5 109.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 96.75 m 478.5 96.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 96.75 m 562.5 96.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 84.75 m 478.5 84.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 82.75 m 478.5 82.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 84.75 m 562.5 84.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 82.75 m 562.5 82.75 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 417.65 639.81 Td (June 30, 2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 493.75 639.81 Td (December 31, 2014) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 626.80 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 420.45 626.81 Td (\(unaudited\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.00 626.80 Td ( ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 613.80 Td (Assets) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 600.80 Td (Real estate held for investment:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 89.00 587.80 Td (Land) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 401.00 587.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 452.90 587.80 Td (265,278) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.00 587.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 536.90 587.80 Td (265,278) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 89.00 574.80 Td (Buildings and improvements) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 452.90 574.80 Td (812,033) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 536.90 574.80 Td (800,876) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 89.00 561.80 Td (Tenant origination and absorption costs) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 456.40 561.80 Td (77,478) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 561.80 Td (79,050) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 548.80 Td (Total real estate held for investment, at cost and net of impairment charges) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 447.65 548.80 Td (1,154,789) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 531.65 548.80 Td (1,145,204) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 89.00 535.80 Td (Less accumulated depreciation and amortization) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 450.55 535.85 Td (\(196,120) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.65 535.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 534.55 535.85 Td (\(175,047) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 535.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 522.80 Td (Total real estate held for investment, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 452.90 522.80 Td (958,669) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 536.90 522.80 Td (970,157) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 509.80 Td (Real estate held for sale, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 468.65 509.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 536.90 509.80 Td (148,354) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 496.80 Td (Foreclosed real estate held for sale) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 468.65 496.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 496.80 Td (12,045) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 483.80 Td (Total real estate, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 452.90 483.80 Td (958,669) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 531.65 483.80 Td (1,130,556) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 470.80 Td (Real estate loans receivable, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 456.40 470.80 Td (29,335) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 470.80 Td (28,922) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 457.80 Td (Total real estate and real estate-related investments, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 452.90 457.80 Td (988,004) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 531.65 457.80 Td (1,159,478) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 444.80 Td (Cash and cash equivalents) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 452.90 444.80 Td (133,609) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 444.80 Td (58,675) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 431.80 Td (Restricted cash) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 456.40 431.80 Td (50,212) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 431.80 Td (62,755) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 418.80 Td (Rents and other receivables, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 456.40 418.80 Td (35,235) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 418.80 Td (37,604) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 405.80 Td (Above-market leases, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 456.40 405.80 Td (19,582) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 405.80 Td (21,678) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 392.80 Td (Assets related to real estate held for sale) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 468.65 392.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 392.80 Td (10,462) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 379.80 Td (Deferred financing costs, prepaid expenses and other assets, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 456.40 379.80 Td (23,773) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 379.80 Td (25,515) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 366.80 Td (Total assets) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 401.00 366.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 447.65 366.80 Td (1,250,415) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.00 366.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 531.65 366.80 Td (1,376,167) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 353.80 Td (Liabilities and equity) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 340.80 Td (Notes payable:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 89.00 327.80 Td (Notes payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 401.00 327.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 452.90 327.80 Td (534,744) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.00 327.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 536.90 327.80 Td (578,129) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 89.00 314.80 Td (Notes payable related to real estate held for sale) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 468.65 314.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 314.80 Td (79,969) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 301.80 Td (Total notes payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 452.90 301.80 Td (534,744) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 536.90 301.80 Td (658,098) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 288.80 Td (Accounts payable and accrued liabilities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 456.40 288.80 Td (23,671) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 288.80 Td (22,579) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 275.80 Td (Due to affiliates) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 468.65 275.80 Td (33) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.15 275.80 Td (444) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 262.80 Td (Distributions payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 468.65 262.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.90 262.80 Td (4,699) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 249.80 Td (Below-market leases, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 456.40 249.80 Td (32,715) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 249.80 Td (38,075) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 236.80 Td (Liabilities related to real estate held for sale) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 468.65 236.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.90 236.80 Td (3,087) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 223.80 Td (Other liabilities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 456.40 223.80 Td (30,620) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 223.80 Td (36,412) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 210.80 Td (Total liabilities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 452.90 210.80 Td (621,783) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 536.90 210.80 Td (763,394) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 197.80 Td (Commitments and contingencies \(Note 13\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 184.80 Td (Redeemable common stock) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 459.90 184.80 Td (6,891) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 184.80 Td (10,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 171.80 Td (Stockholders’ equity) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 158.80 Td (Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 468.65 158.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 158.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 146.80 Td (Common stock, $.01 par value; 1,000,000,000 shares authorized, 187,157,793 and 187,845,515 shares issued and) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 80.00 139.80 Td (outstanding as of June 30, 2015 and December 31, 2014, respectively) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 459.90 139.80 Td (1,872) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.90 139.80 Td (1,879) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 126.80 Td (Additional paid-in capital) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 447.65 126.80 Td (1,662,490) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 531.65 126.80 Td (1,662,483) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 113.80 Td (Cumulative distributions and net losses) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 445.30 113.85 Td (\(1,042,621) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.65 113.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 529.30 113.85 Td (\(1,061,589) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 113.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 100.80 Td (Total stockholders’ equity) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 452.90 100.80 Td (621,741) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 536.90 100.80 Td (602,773) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 87.80 Td (Total liabilities and stockholders’ equity) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 401.00 87.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 447.65 87.80 Td (1,250,415) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.00 87.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 531.65 87.80 Td (1,376,167) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 66.25 Td (See accompanying condensed notes to consolidated financial statements.) Tj ET Q endstream endobj 9 0 obj <>] /Rotate 0 /Contents 10 0 R>> endobj 10 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 713.25 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 713.25 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 713.25 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 713.25 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 713.25 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 713.25 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 713.25 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.23 713.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 189.15 695.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 248.97 695.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 283.52 695.25 Td (A) Tj ET Q q 0 0 0 rg BT 290.00 695.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 354.92 695.25 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 391.68 695.25 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 677.25 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.05 662.25 Td (\(in thousands, except share and per share amounts\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 610.75 280.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 610.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 610.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 610.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 610.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 610.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 610.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 610.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 582.75 280.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 582.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 582.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 582.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 582.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 582.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 582.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 582.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 554.75 280.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 554.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 554.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 554.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 554.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 554.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 554.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 554.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 526.75 280.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 526.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 526.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 526.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 526.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 526.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 526.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 526.75 55.00 -14.00 re f /GS0 gs 0.8 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0.9333333333333333 1 rg /GS0 gs 448.50 470.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 470.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 470.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 442.75 280.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 442.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 442.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 442.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 442.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 442.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 442.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 442.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 414.75 280.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 414.75 55.00 -14.00 re f /GS0 gs 0.8 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1 rg /GS0 gs 507.50 386.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 343.75 280.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 343.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 343.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 343.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 343.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 343.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 343.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 343.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 315.75 280.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 315.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 315.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 315.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 315.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 315.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 315.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 315.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 287.75 280.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 287.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 287.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 287.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 287.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 287.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 287.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 287.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 259.75 280.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 259.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 259.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 259.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 259.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 259.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 259.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 259.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 231.75 280.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 231.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 231.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 231.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 231.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 231.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 231.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 231.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 203.75 280.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 203.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 203.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 203.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 203.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 203.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 203.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 203.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 175.75 280.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 175.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 175.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 175.75 55.00 -14.00 re f /GS0 gs 0.8 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0.9333333333333333 1 rg /GS0 gs 330.50 119.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 119.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 119.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 119.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 119.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 119.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 119.75 55.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 624.75 m 385.5 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 624.75 m 389.5 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 624.75 m 444.5 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 624.75 m 503.5 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 624.75 m 507.5 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 624.75 m 562.5 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 624.75 m 385.5 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 610.75 m 385.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 624.75 m 444.5 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 610.75 m 444.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 624.75 m 503.5 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 610.75 m 503.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 624.75 m 507.5 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 624.75 m 562.5 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 610.75 m 562.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 540.75 m 385.5 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 540.75 m 444.5 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 540.75 m 503.5 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 540.75 m 562.5 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 540.75 m 385.5 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 526.75 m 385.5 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 540.75 m 444.5 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 526.75 m 444.5 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 540.75 m 503.5 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 526.75 m 503.5 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 540.75 m 562.5 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 526.75 m 562.5 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 400.75 m 385.5 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 400.75 m 444.5 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 400.75 m 503.5 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 400.75 m 562.5 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 400.75 m 385.5 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 386.75 m 385.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 400.75 m 444.5 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 386.75 m 444.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 400.75 m 503.5 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 386.75 m 503.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 400.75 m 562.5 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 386.75 m 562.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 273.75 m 385.5 273.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 273.75 m 444.5 273.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 273.75 m 503.5 273.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 273.75 m 562.5 273.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 273.75 m 385.5 273.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 259.75 m 385.5 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 273.75 m 444.5 273.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 259.75 m 444.5 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 273.75 m 503.5 273.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 259.75 m 503.5 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 273.75 m 562.5 273.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 259.75 m 562.5 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 259.75 m 385.5 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 259.75 m 444.5 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 259.75 m 503.5 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 259.75 m 562.5 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 189.75 m 385.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 189.75 m 444.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 189.75 m 503.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 189.75 m 562.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 189.75 m 385.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 175.75 m 385.5 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 189.75 m 444.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 189.75 m 503.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 189.75 m 562.5 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 175.75 m 385.5 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 162.75 m 385.5 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 160.75 m 385.5 160.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 175.75 m 444.5 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 162.75 m 444.5 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 160.75 m 444.5 160.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 175.75 m 503.5 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 162.75 m 503.5 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 160.75 m 503.5 160.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 175.75 m 562.5 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 162.75 m 562.5 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 160.75 m 562.5 160.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 119.75 m 385.5 119.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 119.75 m 444.5 119.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 119.75 m 503.5 119.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 119.75 m 562.5 119.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 119.75 m 385.5 119.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 106.75 m 385.5 106.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 104.75 m 385.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 119.75 m 444.5 119.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 106.75 m 444.5 106.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 104.75 m 444.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 106.75 m 503.5 106.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 104.75 m 503.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 106.75 m 562.5 106.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 104.75 m 562.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 104.75 m 385.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 106.75 m 385.5 106.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 85.75 m 385.5 85.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 83.75 m 385.5 83.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 104.75 m 444.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 106.75 m 444.5 106.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 85.75 m 444.5 85.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 83.75 m 444.5 83.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 104.75 m 503.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 106.75 m 503.5 106.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 85.75 m 503.5 85.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 83.75 m 503.5 83.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 104.75 m 562.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 106.75 m 562.5 106.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 85.75 m 562.5 85.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 83.75 m 562.5 83.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 629.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.35 628.98 Td (Three Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.20 628.98 Td (Six Months Ended June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 615.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.50 614.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.50 614.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.50 614.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.50 614.98 Td (2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 601.00 Td (Revenues:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 587.00 Td (Rental income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.00 587.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.30 587.00 Td (32,432) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.00 587.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.30 587.00 Td (38,618) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.00 587.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.30 587.00 Td (67,797) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.00 587.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 587.00 Td (77,762) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 573.00 Td (Tenant reimbursements) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.30 573.00 Td (11,133) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.30 573.00 Td (14,073) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.30 573.00 Td (23,688) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 573.00 Td (27,131) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 559.00 Td (Interest income from real estate loans receivable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.30 559.00 Td (741) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.30 559.00 Td (814) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.30 559.00 Td (1,467) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 559.00 Td (1,615) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 545.00 Td (Parking revenues and other operating income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.30 545.00 Td (660) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.30 545.00 Td (956) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.30 545.00 Td (1,592) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 545.00 Td (1,960) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 531.00 Td (Total revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.30 531.00 Td (44,966) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.30 531.00 Td (54,461) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.30 531.00 Td (94,544) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.25 531.00 Td (108,468) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 517.00 Td (Expenses:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 503.00 Td (Operating, maintenance, and management) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.30 503.00 Td (17,843) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.30 503.00 Td (21,431) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.30 503.00 Td (39,833) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 503.00 Td (42,830) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 489.00 Td (Real estate taxes, property-related taxes, and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.30 489.00 Td (5,865) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.30 489.00 Td (6,758) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.30 489.00 Td (12,646) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 489.00 Td (14,198) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 475.00 Td (Asset management fees to affiliate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.30 475.00 Td (2,346) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.30 475.00 Td (2,530) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.30 475.00 Td (4,766) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 475.00 Td (5,029) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 461.00 Td (General and administrative expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.30 461.00 Td (6,047) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.30 461.00 Td (3,685) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.30 461.00 Td (8,277) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 461.00 Td (7,329) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 447.00 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.30 447.00 Td (14,205) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.30 447.00 Td (17,961) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.30 447.00 Td (29,810) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 447.00 Td (35,884) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 433.00 Td (Interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.30 433.00 Td (8,084) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.30 433.00 Td (13,036) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.30 433.00 Td (16,816) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 433.00 Td (26,581) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 419.00 Td (Impairment charge on real estate held for investment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.30 419.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.30 419.00 Td (939) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 419.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 419.00 Td (2,196) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 405.00 Td (Provision for loan losses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.30 405.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.30 405.00 Td (1,973) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 405.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 405.00 Td (1,973) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 391.00 Td (Total expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.30 391.00 Td (54,390) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.30 391.00 Td (68,313) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 474.25 391.00 Td (112,148) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.25 391.00 Td (136,020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 377.00 Td (Other income and loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 364.00 Td (Gain on sales of real estate securities \(includes $0.7 million and $4.5 million of) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 356.00 Td (unrealized gains reclassified from accumulated other comprehensive income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 348.00 Td (during the three and six months ended June 30, 2014, respectively\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.30 348.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.30 348.00 Td (662) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 348.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 348.00 Td (4,410) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 334.00 Td (Gain on sales of real estate, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.30 334.00 Td (35,093) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.30 334.00 Td (2,041) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.30 334.00 Td (49,059) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 334.00 Td (2,041) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 320.00 Td (Gain on sales of foreclosed real estate held for sale) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.30 320.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.30 320.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.30 320.00 Td (2,509) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 320.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 306.00 Td (\(Loss\) gain from extinguishment of debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.60 306.00 Td (\(6,385) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.30 306.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.30 306.00 Td (3,297) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.60 306.00 Td (\(6,376) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.30 306.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 306.00 Td (5,112) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 292.00 Td (Other interest income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.30 292.00 Td (120) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.30 292.00 Td (130) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 292.00 Td (241) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.30 292.00 Td (297) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 278.00 Td (Other income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.30 278.00 Td (354) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.30 278.00 Td (62) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 278.00 Td (349) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.30 278.00 Td (365) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 264.00 Td (Total other income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.30 264.00 Td (29,182) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.30 264.00 Td (6,192) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.30 264.00 Td (45,782) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 264.00 Td (12,225) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 250.00 Td (Income \(loss\) from continuing operations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.30 250.00 Td (19,758) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.60 250.00 Td (\(7,660) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.30 250.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.30 250.00 Td (28,178) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.60 250.00 Td (\(15,327) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 250.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 236.00 Td (Discontinued operations:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 222.00 Td (Gain on sales of real estate, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.30 222.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.30 222.00 Td (89) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 222.00 Td (124) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 222.00 Td (3,006) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 208.00 Td (\(Loss\) income from discontinued operations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.60 208.00 Td (\(7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.30 208.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.30 208.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 208.00 Td (38) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.30 208.00 Td (234) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 194.00 Td (Impairment charges on discontinued operations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.30 194.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 430.60 194.00 Td (\(81) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.30 194.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 194.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.60 194.00 Td (\(81) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 194.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 180.00 Td (Total \(loss\) income from discontinued operations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.60 180.00 Td (\(7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.30 180.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.30 180.00 Td (8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 180.00 Td (162) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 180.00 Td (3,159) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 166.00 Td (Net income \(loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.00 166.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.30 166.00 Td (19,751) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.00 166.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.60 166.00 Td (\(7,652) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.30 166.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.00 166.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.30 166.00 Td (28,340) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.00 166.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.60 166.00 Td (\(12,168) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 166.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 152.00 Td (Basic and diluted income \(loss\) per common share:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 138.00 Td (Continuing operations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.00 138.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 368.30 138.00 Td (0.11) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.00 138.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 424.60 138.00 Td (\(0.04) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.30 138.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.00 138.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.30 138.00 Td (0.15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.00 138.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 542.60 138.00 Td (\(0.08) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 138.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 124.00 Td (Discontinued operations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.30 124.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.30 124.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.30 124.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.30 124.00 Td (0.02) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 110.00 Td (Net income \(loss\) per common share) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.00 110.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 368.30 110.00 Td (0.11) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.00 110.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 424.60 110.00 Td (\(0.04) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.30 110.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.00 110.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.30 110.00 Td (0.15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.00 110.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 542.60 110.00 Td (\(0.06) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 110.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 97.00 Td (W) Tj ET Q q 0 0 0 rg BT 59.91 97.00 Td (eighted-average number of common shares outstanding, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 89.00 Td (basic and diluted) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.25 89.00 Td (187,389,195) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.25 89.00 Td (189,152,147) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.25 89.00 Td (187,552,869) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 519.25 89.00 Td (189,316,544) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 67.25 Td (See accompanying condensed notes to consolidated financial statements.) Tj ET Q endstream endobj 11 0 obj <>] /Rotate 0 /Contents 12 0 R>> endobj 12 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 713.25 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 713.25 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 713.25 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 713.25 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 713.25 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 713.25 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 713.25 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 137.40 695.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 197.22 695.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 231.78 695.25 Td (A) Tj ET Q q 0 0 0 rg BT 238.25 695.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 303.17 695.25 Td ( COMPREHENSIVE INCOME \(LOSS\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 677.25 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 662.25 Td (\(in thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 617.75 283.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 617.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 617.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 617.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 617.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 617.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 617.75 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 617.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 617.75 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 589.75 283.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 589.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 589.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 589.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 589.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 589.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 589.75 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 589.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 589.75 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 561.75 283.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 561.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 561.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 561.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 561.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 561.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 561.75 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 561.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 561.75 50.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 631.75 m 392 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 631.75 m 396 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 631.75 m 451 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 631.75 m 505 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 631.75 m 509 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 631.75 m 559 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 631.75 m 392 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 617.75 m 392 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 631.75 m 396 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 631.75 m 451 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 617.75 m 451 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 617.75 m 392 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 617.75 m 451 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 617.75 m 505 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 617.75 m 559 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 561.75 m 505 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 561.75 m 559 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 561.75 m 392 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 547.75 m 392 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 561.75 m 451 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 547.75 m 451 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 547.75 m 392 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 534.75 m 392 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 532.75 m 392 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 547.75 m 451 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 534.75 m 451 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 532.75 m 451 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 547.75 m 505 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 534.75 m 505 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 532.75 m 505 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 547.75 m 559 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 534.75 m 559 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 532.75 m 559 532.75 l s BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 635.80 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.85 635.98 Td (Three Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.70 635.98 Td (Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 356.00 621.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.00 621.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.50 621.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.50 621.98 Td (2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 608.00 Td (Net income \(loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 339.50 608.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.80 608.00 Td (19,751) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.50 608.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.10 608.00 Td (\(7,652) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 608.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.50 608.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.75 608.00 Td (28,340) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 608.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 531.10 608.00 Td (\(12,168) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 608.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 594.00 Td (Other comprehensive loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 580.00 Td (Reclassification of realized gain on real estate securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.80 580.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.10 580.00 Td (\(669) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 580.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 580.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 535.10 580.00 Td (\(4,452) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 580.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 566.00 Td (Unrealized change in market value of real estate securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.80 566.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.80 566.00 Td (36) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 566.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.10 566.00 Td (\(100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 566.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 552.00 Td (Total other comprehensive loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.80 552.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.10 552.00 Td (\(633) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 552.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 552.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 535.10 552.00 Td (\(4,552) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 552.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 538.00 Td (Total comprehensive income \(loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 339.50 538.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.80 538.00 Td (19,751) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.50 538.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.10 538.00 Td (\(8,285) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 538.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.50 538.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.75 538.00 Td (28,340) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 538.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 531.10 538.00 Td (\(16,720) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 538.00 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 516.25 Td (See accompanying condensed notes to consolidated financial statements.) Tj ET Q endstream endobj 13 0 obj <>] /Rotate 0 /Contents 14 0 R>> endobj 14 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 713.25 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 713.25 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 713.25 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 713.25 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 713.25 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 713.25 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 713.25 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.23 713.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 157.90 695.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 217.72 695.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 252.28 695.25 Td (A) Tj ET Q q 0 0 0 rg BT 258.75 695.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 323.67 695.25 Td ( ST) Tj ET Q q 0 0 0 rg BT 338.22 695.25 Td (OCKHOLDERS’) Tj ET Q q 0 0 0 rg BT 412.49 695.25 Td ( EQUITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 677.25 Td (For the ) Tj ET Q q 0 0 0 rg BT 149.79 677.25 Td (Y) Tj ET Q q 0 0 0 rg BT 156.01 677.25 Td (ear Ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.76 677.25 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.35 677.25 Td ( and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.50 677.25 Td (Six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.84 677.25 Td ( Months Ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.45 677.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.28 677.25 Td ( \(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.65 659.25 Td (\(dollars in thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 597.75 163.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 597.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 597.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 597.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 597.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 597.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 597.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 597.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 597.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 597.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 597.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 597.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 569.75 163.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 569.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 569.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 569.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 569.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 569.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 569.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 569.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 569.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 569.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 569.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 569.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 541.75 163.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 541.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 541.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 541.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 541.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 541.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 541.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 541.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 541.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 541.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 541.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 541.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 513.75 163.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 513.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 513.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 513.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 513.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 513.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 513.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 513.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 513.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 513.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 513.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 513.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 485.75 163.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 485.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 485.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 485.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 485.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 485.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 485.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 485.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 485.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 485.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 485.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 485.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 457.75 163.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 457.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 457.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 457.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 457.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 457.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 457.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 457.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 457.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 457.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 457.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 457.75 55.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 617.75 m 268 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 617.75 m 272 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 617.75 m 327 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 597.75 m 268 597.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 597.75 m 327 597.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 597.75 m 386 597.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 597.75 m 445 597.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 597.75 m 504 597.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 597.75 m 563 597.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 597.75 m 268 597.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 597.75 m 327 597.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 597.75 m 386 597.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 597.75 m 445 597.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 597.75 m 504 597.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 527.75 m 268 527.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 527.75 m 327 527.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 527.75 m 386 527.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 527.75 m 445 527.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 527.75 m 504 527.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 527.75 m 563 527.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 457.75 m 268 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 457.75 m 327 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 457.75 m 386 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 457.75 m 445 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 457.75 m 504 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 457.75 m 268 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 444.75 m 268 444.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 442.75 m 268 442.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 457.75 m 327 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 444.75 m 327 444.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 442.75 m 327 442.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 457.75 m 386 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 444.75 m 386 444.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 442.75 m 386 442.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 457.75 m 445 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 444.75 m 445 444.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 442.75 m 445 442.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 457.75 m 504 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 444.75 m 504 444.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 442.75 m 504 442.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 457.75 m 563 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 444.75 m 563 444.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 442.75 m 563 442.75 l s BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 621.80 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 246.45 621.81 Td (Common Stock) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 342.05 617.81 Td (Additional) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 347.10 609.81 Td (Paid-in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 346.90 601.81 Td (Capital) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 399.50 630.81 Td (Cumulative) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 397.35 623.81 Td (Distributions) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 411.35 616.81 Td (and) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 399.75 609.81 Td (Net Income) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 407.85 601.81 Td (\(Loss\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 456.15 625.81 Td (Accumulated) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 467.10 617.81 Td (Other) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 452.70 609.81 Td (Compr) Tj ET Q q 0 0 0 rg BT 473.96 609.81 Td (ehensive) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 454.90 601.81 Td (Income \(Loss\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 527.30 617.81 Td (T) Tj ET Q q 0 0 0 rg BT 531.33 617.81 Td (otal) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 514.60 609.81 Td (Stockholders’) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 524.85 601.81 Td (Equity) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 601.80 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 229.95 601.81 Td (Shares) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 285.35 601.81 Td (Amounts) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 587.80 Td (Balance, December 31, 2013) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 230.15 587.80 Td (189,616,701) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 274.50 587.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.40 587.80 Td (1,896) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 333.50 587.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 355.15 587.80 Td (1,670,356) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 392.50 587.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 411.80 587.85 Td (\(1,030,911) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 442.15 587.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 451.50 587.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.40 587.80 Td (4,552) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 510.50 587.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 537.40 587.80 Td (645,893) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 573.80 Td (Net loss) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 258.15 573.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 317.15 573.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 376.15 573.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 420.55 573.85 Td (\(21,266) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 442.15 573.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 494.15 573.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 538.55 573.85 Td (\(21,266) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 573.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 559.80 Td (Other comprehensive income) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 258.15 559.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 317.15 559.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 376.15 559.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.15 559.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.05 559.85 Td (\(4,552) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.15 559.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.05 559.85 Td (\(4,552) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 559.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 545.80 Td (Redemptions of common stock) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 234.80 545.80 Td (\(1,771,186) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 265.15 545.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 314.80 545.85 Td (\(17) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 324.15 545.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 365.05 545.85 Td (\(7,873) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 383.15 545.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.15 545.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 494.15 545.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.05 545.85 Td (\(7,890) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 545.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 531.80 Td (Distributions declared) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 258.15 531.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 317.15 531.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 376.15 531.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 424.05 531.85 Td (\(9,412) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 442.15 531.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 494.15 531.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.05 531.85 Td (\(9,412) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 531.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 517.80 Td (Balance, December 31, 2014) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 230.15 517.80 Td (187,845,515) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 274.50 517.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.40 517.80 Td (1,879) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 333.50 517.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 355.15 517.80 Td (1,662,483) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 392.50 517.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 411.80 517.85 Td (\(1,061,589) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 442.15 517.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 451.50 517.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 494.15 517.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 510.50 517.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 537.40 517.80 Td (602,773) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 503.80 Td (Net income) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 258.15 503.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 317.15 503.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 376.15 503.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 422.90 503.80 Td (28,340) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 494.15 503.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.90 503.80 Td (28,340) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 489.80 Td (Redemptions of common stock) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 240.05 489.80 Td (\(687,722) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 265.15 489.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 318.30 489.85 Td (\(7) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 324.15 489.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 365.05 489.85 Td (\(3,101) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 383.15 489.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.15 489.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 494.15 489.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.05 489.85 Td (\(3,108) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 489.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 475.80 Td (Transfers from redeemable common stock) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 258.15 475.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 317.15 475.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 367.40 475.80 Td (3,108) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.15 475.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 494.15 475.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 544.40 475.80 Td (3,108) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 461.80 Td (Distributions declared) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 258.15 461.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 317.15 461.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 376.15 461.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 424.05 461.85 Td (\(9,372) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 442.15 461.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 494.15 461.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.05 461.85 Td (\(9,372) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 461.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 447.80 Td (Balance, June 30, 2015) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 230.15 447.80 Td (187,157,793) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 274.50 447.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.40 447.80 Td (1,872) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 333.50 447.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 355.15 447.80 Td (1,662,490) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 392.50 447.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 411.80 447.85 Td (\(1,042,621) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 442.15 447.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 451.50 447.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 494.15 447.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 510.50 447.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 537.40 447.80 Td (621,741) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 426.25 Td (See accompanying condensed notes to consolidated financial statements.) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 404.65 Td ( ) Tj ET Q endstream endobj 15 0 obj <>] /Rotate 0 /Contents 16 0 R>> endobj 16 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 24.60 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 713.25 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 713.25 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 713.25 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 713.25 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 713.25 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 713.25 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 713.25 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.23 713.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.65 695.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 248.47 695.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 283.02 695.25 Td (A) Tj ET Q q 0 0 0 rg BT 289.50 695.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 354.42 695.25 Td ( CASH FLOWS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 677.25 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 662.25 Td (\(in thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 621.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 621.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 621.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 621.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 597.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 597.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 597.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 597.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 573.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 573.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 573.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 573.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 549.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 549.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 549.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 549.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 525.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 525.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 525.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 525.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 501.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 501.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 501.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 501.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 477.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 477.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 477.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 477.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 453.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 453.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 453.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 453.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 429.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 429.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 429.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 429.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 405.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 405.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 405.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 405.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 381.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 381.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 381.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 381.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 357.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 357.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 357.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 357.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 333.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 333.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 333.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 333.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 309.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 309.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 309.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 309.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 285.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 285.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 285.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 285.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 261.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 261.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 261.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 261.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 237.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 237.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 237.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 237.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 213.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 213.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 213.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 213.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 189.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 189.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 189.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 189.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 165.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 165.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 165.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 165.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 141.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 141.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 141.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 141.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 117.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 117.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 117.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 117.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 93.75 368.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 93.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 93.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 93.75 70.00 -12.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 633.75 m 488.5 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 633.75 m 492.5 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 633.75 m 562.5 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 633.75 m 488.5 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 621.75 m 488.5 621.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 633.75 m 562.5 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 621.75 m 562.5 621.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 321.75 m 488.5 321.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 321.75 m 562.5 321.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 309.75 m 488.5 309.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 309.75 m 562.5 309.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 225.75 m 488.5 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 225.75 m 562.5 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 213.75 m 488.5 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 213.75 m 562.5 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 117.75 m 488.5 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 117.75 m 562.5 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 105.75 m 488.5 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 105.75 m 562.5 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 105.75 m 488.5 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 105.75 m 562.5 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 81.75 m 488.5 81.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 81.75 m 562.5 81.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 70.75 m 488.5 70.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 68.75 m 488.5 68.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 70.75 m 562.5 70.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 68.75 m 562.5 68.75 l s BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 637.80 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 449.05 637.81 Td (Six Months Ended June 30,) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 625.80 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 446.00 625.81 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 520.00 625.81 Td (2014) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 613.80 Td (Cash Flows from Operating Activities:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 601.80 Td (Net income \(loss\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 421.00 601.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 466.40 601.80 Td (28,340) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 495.00 601.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 538.05 601.85 Td (\(12,168) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 601.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 589.80 Td (Adjustments to reconcile net income \(loss\) to net cash provided by operating activities:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 577.80 Td (Depreciation and amortization) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 466.40 577.80 Td (29,810) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 577.80 Td (35,884) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 565.80 Td (Impairment charge on real estate - continuing operations) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 478.65 565.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.90 565.80 Td (2,196) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 553.80 Td (Impairment charge on real estate - discontinued operations) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 478.65 553.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 553.80 Td (81) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 541.80 Td (Noncash interest income on real estate-related investments) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 472.80 541.85 Td (\(491) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.65 541.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 546.80 541.85 Td (\(504) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 541.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 529.80 Td (Change in provision for loan losses) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 478.65 529.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.90 529.80 Td (1,973) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 517.80 Td (Deferred rent) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 472.80 517.85 Td (\(935) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.65 517.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 517.85 Td (\(1,731) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 517.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 505.80 Td (Bad debt expense) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.15 505.80 Td (368) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.90 505.80 Td (1,617) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 493.80 Td (Amortization of deferred financing costs) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 469.90 493.80 Td (1,259) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.15 493.80 Td (756) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 481.80 Td (Deferred interest payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 478.65 481.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.15 481.80 Td (597) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 469.80 Td (Amortization of above- and below-market leases, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 467.55 469.85 Td (\(4,081) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.65 469.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 469.85 Td (\(4,267) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 469.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 457.80 Td (Gain on sales of foreclosed real estate held for sale) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 467.55 457.85 Td (\(2,509) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.65 457.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 457.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 445.80 Td (Gain on sales of real estate, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 464.05 445.85 Td (\(49,183) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.65 445.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 445.85 Td (\(5,047) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 445.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 433.80 Td (Gain on sales of real estate securities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 478.65 433.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 433.85 Td (\(4,410) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 433.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 421.80 Td (Loss \(gain\) on extinguishment of debt) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 469.90 421.80 Td (6,376) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 421.85 Td (\(5,112) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 421.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 409.80 Td (Amortization of discounts and premiums on notes payable, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.15 409.80 Td (867) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.90 409.80 Td (2,137) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 89.00 397.80 Td (Changes in operating assets and liabilities:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 385.80 Td (Restricted cash for operational expenditures) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 469.90 385.80 Td (8,030) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.90 385.80 Td (9,559) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 373.80 Td (Rents and other receivables) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 469.90 373.80 Td (3,020) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 373.85 Td (\(4,008) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 373.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 361.80 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 472.80 361.85 Td (\(575) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.65 361.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 361.85 Td (\(1,642) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 361.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 349.80 Td (Accounts payable and accrued liabilities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 469.90 349.80 Td (3,454) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 546.80 349.85 Td (\(815) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 349.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 337.80 Td (Due to affiliates) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 476.30 337.85 Td (\(12) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.65 337.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 337.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 325.80 Td (Other liabilities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 467.55 325.85 Td (\(5,693) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.65 325.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 325.85 Td (\(4,060) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 325.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 119.00 313.80 Td (Net cash provided by operating activities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 466.40 313.80 Td (18,045) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 313.80 Td (11,036) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 301.80 Td (Cash Flows from Investing Activities:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 289.80 Td (Improvements to real estate) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 464.05 289.85 Td (\(19,024) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.65 289.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 538.05 289.85 Td (\(10,331) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 289.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 277.80 Td (Proceeds from sales of real estate, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 462.90 277.80 Td (204,943) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 277.80 Td (86,753) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 265.80 Td (Proceeds from sales of foreclosed real estate held for sale) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 466.40 265.80 Td (14,155) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 265.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 253.80 Td (Principal repayments on real estate loans receivable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 478.65 253.80 Td (78) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 253.80 Td (70) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 241.80 Td (Proceeds from sale of real estate securities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 478.65 241.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.90 241.80 Td (7,831) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 229.80 Td (Net change in restricted cash for capital expenditures) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 469.90 229.80 Td (3,735) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 546.80 229.85 Td (\(248) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 229.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 119.00 217.80 Td (Net cash provided by investing activities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 462.90 217.80 Td (203,887) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 217.80 Td (84,075) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 205.80 Td (Cash Flows from Financing Activities:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 193.80 Td (Proceeds from notes payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 478.65 193.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 193.80 Td (42,500) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 181.80 Td (Principal payments on notes payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 460.55 181.85 Td (\(126,207) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.65 181.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 534.55 181.85 Td (\(251,799) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 181.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 169.80 Td (Prepayment premium on the repayment of debt) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 467.55 169.85 Td (\(4,390) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.65 169.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 169.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 157.80 Td (Net change in restricted cash for debt service obligations) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.15 157.80 Td (778) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.15 157.80 Td (587) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 145.80 Td (Payments of deferred financing costs) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 478.65 145.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 145.85 Td (\(1,730) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 145.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 133.80 Td (Payments to redeem common stock) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 467.55 133.85 Td (\(3,108) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.65 133.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 133.85 Td (\(3,152) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 133.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 121.80 Td (Distributions paid to common stockholders) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 464.05 121.85 Td (\(14,071) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.65 121.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 121.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 119.00 109.80 Td (Net cash used in financing activities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 460.55 109.85 Td (\(146,998) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.65 109.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 534.55 109.85 Td (\(213,594) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 109.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 97.80 Td (Net increase \(decrease\) in cash and cash equivalents) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 466.40 97.80 Td (74,934) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 534.55 97.85 Td (\(118,483) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 97.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 85.80 Td (Cash and cash equivalents, beginning of period) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 466.40 85.80 Td (58,675) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 536.90 85.80 Td (211,391) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 73.80 Td (Cash and cash equivalents, end of period) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 421.00 73.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 462.90 73.80 Td (133,609) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 495.00 73.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 73.80 Td (92,908) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 52.25 Td (See accompanying condensed notes to consolidated financial statements.) Tj ET Q endstream endobj 17 0 obj <>] /Rotate 0 /Contents 18 0 R>> endobj 18 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 142.65 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 244.16 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 250.65 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 320.75 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 399.93 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 413.92 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 420.40 694.60 Td (TEMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (1. ) Tj ET Q q 0 0 0 rg BT 67.50 629.10 Td (ORGANIZA) Tj ET Q q 0 0 0 rg BT 121.76 629.10 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 611.10 Td (KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 189.96 611.10 Td (T) Tj ET Q q 0 0 0 rg BT 195.72 611.10 Td (rust, Inc. \(the “Company”\) was formed on June 13, 2005 as a Maryland corporation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (has elected to be taxed as a real estate investment trust \(“REIT”\). Substantially all of the Company’) Tj ET Q q 0 0 0 rg BT 449.37 599.10 Td (s assets are held by) Tj ET Q q 0 0 0 rg BT 525.37 599.10 Td (, and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (Company conducts substantially all of its operations through, KBS Limited Partnership, a Delaware limited partnership ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (\(the “Operating Partnership”\), and its subsidiaries. ) Tj ET Q q 0 0 0 rg BT 256.21 575.10 Td (The Company is the sole general partner of and directly owns a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.24 575.10 Td (99%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.57 575.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (partnership interest in the Operating Partnership. ) Tj ET Q q 0 0 0 rg BT 249.27 563.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 308.98 563.10 Td (s wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 415.27 563.10 Td (, KBS REIT) Tj ET Q q 0 0 0 rg BT 464.26 563.10 Td ( Holdings LLC, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (Delaware limited liability company \(“KBS REIT) Tj ET Q q 0 0 0 rg BT 245.66 551.10 Td ( Holdings”\), owns the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.97 551.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.30 551.10 Td ( partnership interest in the Operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (Partnership and is its sole limited partner) Tj ET Q q 0 0 0 rg BT 212.81 539.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 521.10 Td (The Company invested in a diverse portfolio of real estate and real estate-related investments. ) Tj ET Q q 0 0 0 rg BT 453.37 521.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.81 521.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.64 521.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.10 Td (Company owned or) Tj ET Q q 0 0 0 rg BT 127.98 509.10 Td (, with respect to a limited number of properties, held a leasehold interest in, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.61 509.10 Td (392) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.61 509.10 Td ( real estate properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td (including the GKK Properties \(defined below\). In addition, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.05 497.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.88 497.10 Td (, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.14 497.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.80 497.10 Td ( real estate loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.10 Td (receivable and a participation interest with respect to a real estate joint venture.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 467.10 Td (On September 1, 201) Tj ET Q q 0 0 0 rg BT 158.11 467.10 Td (1, the Company) Tj ET Q q 0 0 0 rg BT 221.07 467.10 Td (, through indirect wholly owned subsidiaries \(collectively) Tj ET Q q 0 0 0 rg BT 451.20 467.10 Td (, “KBS”\), entered into a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (Collateral ) Tj ET Q q 0 0 0 rg BT 91.25 455.10 Td (T) Tj ET Q q 0 0 0 rg BT 97.00 455.10 Td (ransfer and Settlement ) Tj ET Q q 0 0 0 rg BT 188.92 455.10 Td (Agreement \(the “Settlement ) Tj ET Q q 0 0 0 rg BT 303.04 455.10 Td (Agreement”\) with, among other parties, GKK Stars ) Tj ET Q q 0 0 0 rg BT 511.05 455.10 Td (Acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (LLC \(“GKK Stars”\), the wholly owned subsidiary of Gramercy Property ) Tj ET Q q 0 0 0 rg BT 343.42 443.10 Td (T) Tj ET Q q 0 0 0 rg BT 349.17 443.10 Td (rust, Inc. \(“Gramercy”\) that indirectly owned the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (Gramercy real estate portfolio, to ef) Tj ET Q q 0 0 0 rg BT 192.59 431.10 Td (fect the orderly transfer of certain assets and liabilities of the Gramercy real estate portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (to KBS in satisfaction of certain debt obligations under a mezzanine loan owed by wholly owned subsidiaries of Gramercy to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (KBS \(the “GKK Mezzanine Loan”\). ) Tj ET Q q 0 0 0 rg BT 200.10 407.10 Td (The Settlement ) Tj ET Q q 0 0 0 rg BT 262.86 407.10 Td (Agreement resulted in the transfer of the equity interests in certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (subsidiaries of Gramercy \(the “Equity Interests”\) that indirectly owned or) Tj ET Q q 0 0 0 rg BT 343.72 395.10 Td (, with respect to a limited number of properties, held a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (leasehold interest in, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.48 383.10 Td (867) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.48 383.10 Td ( properties \(the “GKK Properties”\), consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.31 383.10 Td (576) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.31 383.10 Td ( bank branch properties and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.88 383.10 Td (291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.88 383.10 Td ( of) Tj ET Q q 0 0 0 rg BT 502.53 383.10 Td (fice buildings, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (operations centers and other properties. ) Tj ET Q q 0 0 0 rg BT 211.39 371.10 Td (As of December 15, 201) Tj ET Q q 0 0 0 rg BT 309.05 371.10 Td (1, GKK Stars had transferred all of the Equity Interests to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (Company) Tj ET Q q 0 0 0 rg BT 87.74 359.10 Td (, giving the Company title to or) Tj ET Q q 0 0 0 rg BT 213.16 359.10 Td (, with respect to a limited number of GKK Properties, a leasehold interest in, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.80 359.10 Td (867) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.80 359.10 Td ( GKK ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (Properties as of that date. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 329.10 Td (Subject to certain restrictions and limitations, the business of the Company is managed by KBS Capital ) Tj ET Q q 0 0 0 rg BT 488.71 329.10 Td (Advisors LLC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (\(the “Advisor”\), an af) Tj ET Q q 0 0 0 rg BT 136.50 317.10 Td (filiate of the Company) Tj ET Q q 0 0 0 rg BT 226.11 317.10 Td (, pursuant to an advisory agreement with the Company \(as amended, the “Advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (Agreement”\) in ef) Tj ET Q q 0 0 0 rg BT 122.06 305.10 Td (fect through November 8, 2015. ) Tj ET Q q 0 0 0 rg BT 255.18 305.10 Td (The ) Tj ET Q q 0 0 0 rg BT 272.67 305.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 311.84 305.10 Td (Agreement may be renewed for an unlimited number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.60 305.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.03 305.10 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (year periods upon the mutual consent of the ) Tj ET Q q 0 0 0 rg BT 226.68 293.10 Td (Advisor and the Company) Tj ET Q q 0 0 0 rg BT 331.29 293.10 Td (. Either party may terminate the ) Tj ET Q q 0 0 0 rg BT 462.91 293.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 502.08 293.10 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 281.10 Td (60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 281.10 Td ( days written notice. ) Tj ET Q q 0 0 0 rg BT 167.91 281.10 Td (The ) Tj ET Q q 0 0 0 rg BT 185.40 281.10 Td (Advisor owns ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.74 281.10 Td (20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.24 281.10 Td ( shares of the Company’) Tj ET Q q 0 0 0 rg BT 368.44 281.10 Td (s common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 263.10 Td (Upon commencing its initial public of) Tj ET Q q 0 0 0 rg BT 225.79 263.10 Td (fering \(the “Of) Tj ET Q q 0 0 0 rg BT 285.03 263.10 Td (fering”\), the Company retained KBS Capital Markets Group LLC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (\(the “Dealer Manager”\), an af) Tj ET Q q 0 0 0 rg BT 168.96 251.10 Td (filiate of the ) Tj ET Q q 0 0 0 rg BT 219.78 251.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 251.60 251.10 Td (, to serve as the dealer manager of the Of) Tj ET Q q 0 0 0 rg BT 415.79 251.10 Td (fering pursuant to a dealer manager ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (agreement dated January 27, 2006 \(the “Dealer Manager ) Tj ET Q q 0 0 0 rg BT 278.01 239.10 Td (Agreement”\). ) Tj ET Q q 0 0 0 rg BT 337.52 239.10 Td (The Company ceased of) Tj ET Q q 0 0 0 rg BT 434.25 239.10 Td (fering shares of common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (in its primary of) Tj ET Q q 0 0 0 rg BT 114.03 227.10 Td (fering on May 30, 2008. ) Tj ET Q q 0 0 0 rg BT 216.06 227.10 Td (The Company terminated its dividend reinvestment plan ef) Tj ET Q q 0 0 0 rg BT 451.65 227.10 Td (fective ) Tj ET Q q 0 0 0 rg BT 480.80 227.10 Td (April 10, 2012.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 209.10 Td (The Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.10 209.10 Td (171,109,494) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.10 209.10 Td ( shares of common stock in its primary of) Tj ET Q q 0 0 0 rg BT 368.56 209.10 Td (fering for gross of) Tj ET Q q 0 0 0 rg BT 440.86 209.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.10 209.10 Td ($1.7 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.10 Td (billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.61 197.10 Td (. ) Tj ET Q q 0 0 0 rg BT 82.93 197.10 Td (The Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.54 197.10 Td (28,306,086) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.54 197.10 Td ( shares of common stock under its dividend reinvestment plan for gross of) Tj ET Q q 0 0 0 rg BT 502.96 197.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.37 185.10 Td ($233.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.26 185.10 Td (. ) Tj ET Q q 0 0 0 rg BT 164.21 185.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.65 185.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.48 185.10 Td (, the Company had redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.88 185.10 Td (12,277,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.88 185.10 Td ( of the shares sold in the Of) Tj ET Q q 0 0 0 rg BT 518.96 185.10 Td (fering for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.10 Td ($88.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 173.10 Td (.) Tj ET Q endstream endobj 19 0 obj <>] /Rotate 0 /Contents 20 0 R>> endobj 20 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Asset Management Services ) Tj ET Q q 0 0 0 rg BT 170.31 632.25 Td (Agr) Tj ET Q q 0 0 0 rg BT 186.79 632.25 Td (eement Related to the GKK Pr) Tj ET Q q 0 0 0 rg BT 317.95 632.25 Td (operties) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 614.25 Td (On December 19, 2013, the Company) Tj ET Q q 0 0 0 rg BT 224.76 614.25 Td (, through an indirect wholly owned subsidiary \(“KBS ) Tj ET Q q 0 0 0 rg BT 440.57 614.25 Td (Acquisition Sub”\), entered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (into an amended and restated asset management services agreement \(the “Amended Services ) Tj ET Q q 0 0 0 rg BT 422.68 602.25 Td (Agreement”\) with GKK Realty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (Advisors LLC \(the “Property Manager”\), an af) Tj ET Q q 0 0 0 rg BT 236.76 590.25 Td (filiate of Gramercy) Tj ET Q q 0 0 0 rg BT 312.73 590.25 Td (, with respect to the GKK Properties. ) Tj ET Q q 0 0 0 rg BT 465.85 590.25 Td (The ef) Tj ET Q q 0 0 0 rg BT 491.49 590.25 Td (fective date of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (the ) Tj ET Q q 0 0 0 rg BT 63.67 578.25 Td (Amended Services ) Tj ET Q q 0 0 0 rg BT 140.87 578.25 Td (Agreement was December 1, 2013. Pursuant to the ) Tj ET Q q 0 0 0 rg BT 348.87 578.25 Td (Amended Services ) Tj ET Q q 0 0 0 rg BT 426.07 578.25 Td (Agreement, the Property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (Manager agreed to provide, among other services: standard asset management services, assistance related to dispositions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (accounting services and budgeting and business plans for the GKK Properties \(the “Services”\). ) Tj ET Q q 0 0 0 rg BT 434.49 554.25 Td (The Property Manager is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 542.25 Td (filiated with the Company or KBS ) Tj ET Q q 0 0 0 rg BT 196.52 542.25 Td (Acquisition Sub. ) Tj ET Q q 0 0 0 rg BT 268.20 542.25 Td (As compensation for the Services, the Company agreed to pay the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (Property Manager: \(i\) an annual fee of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.82 530.25 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.71 530.25 Td ( plus all GKK Property-related expenses incurred by the Property Manager) Tj ET Q q 0 0 0 rg BT 554.22 530.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (\(ii\) subject to certain terms and conditions in the ) Tj ET Q q 0 0 0 rg BT 245.29 518.25 Td (Amended Services ) Tj ET Q q 0 0 0 rg BT 322.49 518.25 Td (Agreement, a profit participation interest based on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (percentage \(ranging from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.62 506.25 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.95 506.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.72 506.25 Td (30%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.05 506.25 Td (\) of the amount by which the gross fair market value or gross sales price of certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (identified portfolios of GKK Properties exceeds the sum of \(a\) an agreed-upon baseline value for such GKK Property portfolios ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (plus \(b\) new capital expended to increase the value of GKK Properties within the portfolios and expenditures made to pay for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (tenant improvements and leasing commissions related to these GKK Properties as of the measurement date, and \(iii\) a monthly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (construction oversight fee equal to a percentage of construction costs for certain construction projects at the GKK Properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (overseen by the Property Manager) Tj ET Q q 0 0 0 rg BT 186.68 446.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 428.25 Td (The ) Tj ET Q q 0 0 0 rg BT 91.00 428.25 Td (Amended Services ) Tj ET Q q 0 0 0 rg BT 168.20 428.25 Td (Agreement will terminate on December 31, 2016, with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.74 428.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.18 428.25 Td (-year extension option at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 416.25 Td (s option, subject to certain terms and conditions contained in the ) Tj ET Q q 0 0 0 rg BT 350.55 416.25 Td (Amended Services ) Tj ET Q q 0 0 0 rg BT 427.76 416.25 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 479.50 416.25 Td (The ) Tj ET Q q 0 0 0 rg BT 497.00 416.25 Td (Amended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (Services ) Tj ET Q q 0 0 0 rg BT 85.33 404.25 Td (Agreement supersedes and replaces all prior agreements related to the Services among the Company and its af) Tj ET Q q 0 0 0 rg BT 526.10 404.25 Td (filiates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (and the Property Manager and its af) Tj ET Q q 0 0 0 rg BT 192.61 392.25 Td (filiates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (2. ) Tj ET Q q 0 0 0 rg BT 67.50 368.25 Td (SUMMAR) Tj ET Q q 0 0 0 rg BT 113.25 368.25 Td (Y) Tj ET Q q 0 0 0 rg BT 120.10 368.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 136.12 368.25 Td ( SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 205.12 368.25 Td ( ) Tj ET Q q 0 0 0 rg BT 207.07 368.25 Td (ACCOUNTING POLICIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 350.25 Td (There have been no significant changes to the Company’) Tj ET Q q 0 0 0 rg BT 300.65 350.25 Td (s accounting policies since it filed its audited financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.25 Td (statements in its ) Tj ET Q q 0 0 0 rg BT 115.89 338.25 Td (Annual Report on Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.22 338.25 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.81 338.25 Td (. For further information about the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 326.25 Td (s accounting policies, refer to the Company’) Tj ET Q q 0 0 0 rg BT 268.06 326.25 Td (s consolidated financial statements and notes thereto for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 314.25 Td ( included in the Company’) Tj ET Q q 0 0 0 rg BT 234.18 314.25 Td (s ) Tj ET Q q 0 0 0 rg BT 240.02 314.25 Td (Annual Report on Form 10-K filed with the SEC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (Principles of Consolidation and Basis of Pr) Tj ET Q q 0 0 0 rg BT 232.12 296.25 Td (esentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 278.25 Td (The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.25 Td (accordance with U.S. generally accepted accounting principles \(“GAAP”\) for interim financial information as contained within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.25 Td (the Financial ) Tj ET Q q 0 0 0 rg BT 103.38 254.25 Td (Accounting Standards Board \(“F) Tj ET Q q 0 0 0 rg BT 234.00 254.25 Td (ASB”\) ) Tj ET Q q 0 0 0 rg BT 263.17 254.25 Td (Accounting Standards Codification \(“ASC”\) and the rules and regulations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.25 Td (of the SEC, including the instructions to Form 10-Q and ) Tj ET Q q 0 0 0 rg BT 276.43 242.25 Td (Article 10 of Regulation S-X. ) Tj ET Q q 0 0 0 rg BT 399.47 242.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 448.80 242.25 Td (, the unaudited consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.25 Td (financial statements do not include all of the information and footnotes required by GAAP) Tj ET Q q 0 0 0 rg BT 410.98 230.25 Td ( for audited financial statements. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.25 Td (the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. Operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (results for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.99 194.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.97 194.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.41 194.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.08 194.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.90 194.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.73 194.25 Td ( are not necessarily indicative of the results that may be expected for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.25 Td (the year ending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.64 182.25 Td (December 31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.22 182.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 164.25 Td (The consolidated financial statements include the accounts of the Company) Tj ET Q q 0 0 0 rg BT 374.70 164.25 Td (, KBS REIT) Tj ET Q q 0 0 0 rg BT 423.69 164.25 Td ( Holdings, the Operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (Partnership and their direct and indirect wholly owned subsidiaries. ) Tj ET Q q 0 0 0 rg BT 324.16 152.25 Td (All significant intercompany balances and transactions are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.25 Td (eliminated in consolidation.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 122.25 Td (Use of Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 104.25 Td (The preparation of the consolidated financial statements and condensed notes thereto in conformity with GAAP) Tj ET Q q 0 0 0 rg BT 520.22 104.25 Td ( requires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.25 Td (management to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 271.20 92.25 Td (fect the amounts reported in the consolidated financial statements and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.25 Td (accompanying notes. ) Tj ET Q q 0 0 0 rg BT 138.37 80.25 Td (Actual results could materially dif) Tj ET Q q 0 0 0 rg BT 274.81 80.25 Td (fer from those estimates.) Tj ET Q endstream endobj 21 0 obj <>] /Rotate 0 /Contents 22 0 R>> endobj 22 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Reclassifications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 614.25 Td (Certain amounts in the Company’) Tj ET Q q 0 0 0 rg BT 208.48 614.25 Td (s prior period consolidated financial statements have been reclassified to conform to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (current period presentation. ) Tj ET Q q 0 0 0 rg BT 164.55 602.25 Td (These reclassifications have not changed the results of operations of prior periods. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.38 602.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.05 602.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 590.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 590.25 Td (, the Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.93 590.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.60 590.25 Td ( properties \(of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.68 590.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.34 590.25 Td ( were GKK Properties\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.81 590.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.81 590.25 Td ( of which were held ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (for sale as of December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 188.90 578.25 Td (As a result, certain assets and liabilities were reclassified to held for sale on the consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (balance sheets for all periods presented. Operating results of properties that were classified as held for sale in financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (statements prior to January 1, 2014 will remain in discontinued operations on the Company’) Tj ET Q q 0 0 0 rg BT 417.77 554.25 Td (s consolidated statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (operations. Operating results of properties that were disposed of or classified as held for sale in the ordinary course of business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (subsequent to January 1, 2014 that had not been classified as held for sale in financial statements issued for the reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (periods prior to January 1, 2014 are included in continuing operations on the Company’) Tj ET Q q 0 0 0 rg BT 399.98 518.25 Td (s consolidated statements of operations. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 500.25 Td (Per) Tj ET Q q 0 0 0 rg BT 64.30 500.25 Td ( Shar) Tj ET Q q 0 0 0 rg BT 87.19 500.25 Td (e Data) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 482.25 Td (Basic net income \(loss\) per share of common stock is calculated by dividing net income \(loss\) by the weighted-average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (number of shares of common stock issued and outstanding during such period. Diluted net income \(loss\) per share of common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (stock equals basic net income \(loss\) per share of common stock as there were no potentially dilutive securities outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 446.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.81 446.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.25 446.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.92 446.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.74 446.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.57 446.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.01 446.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.01 446.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 352.67 446.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 428.25 Td (Distributions declared per share of common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.32 428.25 Td ($0.025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.82 428.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.26 428.25 Td ($0.050) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.76 428.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.13 428.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.12 428.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.56 428.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.23 428.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.05 428.25 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 416.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.16 416.25 Td (. On March 6, 2015, the Company’) Tj ET Q q 0 0 0 rg BT 264.36 416.25 Td (s board of directors declared a distribution in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.57 416.25 Td ($0.025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.07 416.25 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (share of common stock to stockholders of record as of the close of business on March 20, 2015. On May 13, 2015, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 392.25 Td (s board of directors declared a distribution in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.38 392.25 Td ($0.025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.88 392.25 Td ( per share of common stock to stockholders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (record as of the close of business on June 19, 2015. No distributions were declared during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.36 380.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.34 380.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.78 380.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.45 380.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 368.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0.43137254901960786 0.7490196078431373 rg BT 107.83 368.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 49.50 350.25 Td (Segments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 332.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 133.21 332.25 Td (s segments are based on the Company’) Tj ET Q q 0 0 0 rg BT 288.18 332.25 Td (s method of internal reporting, which classifies its operations by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (investment type: \(i\) real estate, \(ii\) real estate-related and \(iii\) commercial properties primarily leased to financial institutions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (received under the Settlement ) Tj ET Q q 0 0 0 rg BT 170.56 308.25 Td (Agreement, the GKK Properties. For financial data by segment, see Note 12, “Segment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (Information.”) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 278.25 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 118.39 278.25 Td (Accounting Standards Update) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 260.25 Td (In May 2014, the F) Tj ET Q q 0 0 0 rg BT 149.70 260.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 198.60 260.25 Td (ASU No. 2014-09, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 276.65 260.25 Td (Revenue fr) Tj ET Q q 0 0 0 rg BT 319.32 260.25 Td (om Contracts with Customers \(T) Tj ET Q q 0 0 0 rg BT 448.97 260.25 Td (opic 606\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.02 260.25 Td ( \(“ASU No. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.25 Td (2014-09”\). ) Tj ET Q q 0 0 0 rg BT 97.55 248.25 Td (ASU No. 2014-09 requires an entity to recognize the revenue to depict the transfer of promised goods or services to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.25 Td (customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.25 Td (services. ) Tj ET Q q 0 0 0 rg BT 88.66 224.25 Td (ASU No. 2014-09 supersedes the revenue requirements in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 323.88 224.25 Td (Revenue Recognition \(T) Tj ET Q q 0 0 0 rg BT 419.03 224.25 Td (opic 605\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.08 224.25 Td ( and most industry-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.25 Td (specific guidance throughout the Industry ) Tj ET Q q 0 0 0 rg BT 218.44 212.25 Td (T) Tj ET Q q 0 0 0 rg BT 223.85 212.25 Td (opics of the Codification. ) Tj ET Q q 0 0 0 rg BT 329.94 212.25 Td (ASU No. 2014-09 does not apply to lease contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.25 Td (within the scope of) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 125.87 200.25 Td ( Leases \(T) Tj ET Q q 0 0 0 rg BT 166.07 200.25 Td (opic 840\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.11 200.25 Td (. ) Tj ET Q q 0 0 0 rg BT 211.06 200.25 Td (ASU No. 2014-09 is ef) Tj ET Q q 0 0 0 rg BT 303.38 200.25 Td (fective for fiscal years, and interim periods within those years, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.25 Td (beginning after December 15, 2016, and is to be applied retrospectively) Tj ET Q q 0 0 0 rg BT 335.42 188.25 Td (, with early application not permitted. On July 9, 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (the F) Tj ET Q q 0 0 0 rg BT 69.04 176.25 Td (ASB voted to defer the ef) Tj ET Q q 0 0 0 rg BT 171.33 176.25 Td (fective date of ) Tj ET Q q 0 0 0 rg BT 230.46 176.25 Td (ASU No. 2014-09 by one year) Tj ET Q q 0 0 0 rg BT 352.11 176.25 Td (. Early adoption is permitted but not before the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.25 Td (original ef) Tj ET Q q 0 0 0 rg BT 90.69 164.25 Td (fective date. ) Tj ET Q q 0 0 0 rg BT 144.37 164.25 Td (The Company is still evaluating the impact of adopting ) Tj ET Q q 0 0 0 rg BT 366.83 164.25 Td (ASU No. 2014-09 on its financial statements, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (but does not expect the adoption of ) Tj ET Q q 0 0 0 rg BT 191.97 152.25 Td (ASU No. 2014-09 to have a material impact on its financial statements. ) Tj ET Q endstream endobj 23 0 obj <>] /Rotate 0 /Contents 24 0 R>> endobj 24 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (In ) Tj ET Q q 0 0 0 rg BT 83.78 632.10 Td (August 2014, the F) Tj ET Q q 0 0 0 rg BT 159.71 632.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 208.61 632.10 Td (ASU No. 2014-15, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 286.66 632.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 296.29 632.10 Td (esentation of Financial Statements \(Subtopic 205-40\), Disclosur) Tj ET Q q 0 0 0 rg BT 553.39 632.10 Td (e ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (of Uncertainties about an Entity’) Tj ET Q q 0 0 0 rg BT 180.41 620.10 Td (s ) Tj ET Q q 0 0 0 rg BT 186.62 620.10 Td (Ability to Continue as a Going Concern ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.56 620.10 Td (\(“ASU No. 2014-15”\). ) Tj ET Q q 0 0 0 rg BT 441.97 620.10 Td (The amendments in ) Tj ET Q q 0 0 0 rg BT 522.79 620.10 Td (ASU No. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (2014-15 require management to evaluate, for each annual and interim reporting period, whether there are conditions or events, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (considered in the aggregate, that raise substantial doubt about an entity’) Tj ET Q q 0 0 0 rg BT 335.80 596.10 Td (s ability to continue as a going concern within one year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (after the date that the financial statements are issued \(or are available to be issued when applicable\) and, if so, provide related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (disclosures. ) Tj ET Q q 0 0 0 rg BT 98.39 572.10 Td (ASU No. 2014-15 is ef) Tj ET Q q 0 0 0 rg BT 190.70 572.10 Td (fective for annual periods ending after December 15, 2016, and interim periods within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (which the financial statements have not previously been issued. ) Tj ET Q q 0 0 0 rg BT 305.92 548.10 Td (The Company does not expect the adoption of ) Tj ET Q q 0 0 0 rg BT 492.54 548.10 Td (ASU No. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (2014-15 to have a significant impact on its financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 518.10 Td (In January 2015, the F) Tj ET Q q 0 0 0 rg BT 162.46 518.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 211.37 518.10 Td (ASU No. 2015-01, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 289.42 518.10 Td (Income Statement - Extraor) Tj ET Q q 0 0 0 rg BT 399.85 518.10 Td (dinary and Unusual Items \(Subtopic) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.84 518.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (225-20\), Simplifying Income Statement Pr) Tj ET Q q 0 0 0 rg BT 217.70 506.10 Td (esentation by Eliminating the Concept of Extraor) Tj ET Q q 0 0 0 rg BT 414.52 506.10 Td (dinary Items ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.29 506.10 Td (\(“ASU No. 2015-01”\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (The amendments in ) Tj ET Q q 0 0 0 rg BT 130.32 494.10 Td (ASU No. 2015-01 eliminate from GAAP) Tj ET Q q 0 0 0 rg BT 294.37 494.10 Td ( the concept of extraordinary items. ) Tj ET Q q 0 0 0 rg BT 438.49 494.10 Td (Although the amendments will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (eliminate the requirements in Subtopic 225-20 for reporting entities to consider whether an underlying event or transaction is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (extraordinary) Tj ET Q q 0 0 0 rg BT 102.71 470.10 Td (, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ) Tj ET Q q 0 0 0 rg BT 473.25 458.10 Td (ASU No. 2015-01 is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 446.10 Td (fective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. ) Tj ET Q q 0 0 0 rg BT 439.48 434.10 Td (The Company does not expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (the adoption of ) Tj ET Q q 0 0 0 rg BT 111.99 422.10 Td (ASU No. 2015-01 to have a significant impact on its financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 404.10 Td (In ) Tj ET Q q 0 0 0 rg BT 80.78 404.10 Td (April 2015, the F) Tj ET Q q 0 0 0 rg BT 148.92 404.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 197.82 404.10 Td (ASU No. 2015-03, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 275.88 404.10 Td (Inter) Tj ET Q q 0 0 0 rg BT 294.95 404.10 Td (est - Imputation of Inter) Tj ET Q q 0 0 0 rg BT 390.12 404.10 Td (est \(Subtopic 835-30\), Simplifying the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 59.13 392.10 Td (esentation of Debt Issuance Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.67 392.10 Td ( \(“ASU No. 2015-03”\). ) Tj ET Q q 0 0 0 rg BT 293.08 392.10 Td (The amendments in ) Tj ET Q q 0 0 0 rg BT 373.90 392.10 Td (ASU No. 2015-03 require debt issuance costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability) Tj ET Q q 0 0 0 rg BT 494.51 380.10 Td (, consistent with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (the presentation of a debt discount. ) Tj ET Q q 0 0 0 rg BT 193.91 368.10 Td (ASU No. 2015-03 is limited to the presentation of debt issuance costs and does not af) Tj ET Q q 0 0 0 rg BT 535.89 368.10 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (the recognition and measurement of debt issuance costs. ) Tj ET Q q 0 0 0 rg BT 278.88 356.10 Td (ASU No. 2015-03 is ef) Tj ET Q q 0 0 0 rg BT 371.19 356.10 Td (fective for fiscal years, and interim periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (within those years, beginning after December 15, 2015 and is to be applied retrospectively) Tj ET Q q 0 0 0 rg BT 410.69 344.10 Td (. Early adoption is permitted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (financial statements that have not been previously issued. ) Tj ET Q q 0 0 0 rg BT 284.26 332.10 Td (The adoption of ) Tj ET Q q 0 0 0 rg BT 350.08 332.10 Td (ASU No. 2015-03 would change the presentation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (debt issuance costs as the Company presents debt issuance costs as deferred financing costs, prepaid expenses and other assets, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (net on the accompanying consolidated balance sheets. ) Tj ET Q endstream endobj 25 0 obj <>] /Rotate 0 /Contents 26 0 R>> endobj 26 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 33.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 33.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (3. ) Tj ET Q q 0 0 0 rg BT 67.50 632.25 Td (REAL) Tj ET Q q 0 0 0 rg BT 94.73 632.25 Td ( EST) Tj ET Q q 0 0 0 rg BT 115.39 632.25 Td (A) Tj ET Q q 0 0 0 rg BT 121.87 632.25 Td (TE HELD FOR INVESTMENT) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 614.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 614.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 614.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 215.16 614.25 Td (s portfolio of real estate held for investment, including the GKK Properties, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (composed of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.64 602.25 Td (9.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.53 602.25 Td ( rentable square feet and was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.80 602.25 Td (80%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.13 602.25 Td ( occupied. ) Tj ET Q q 0 0 0 rg BT 390.05 602.25 Td (These properties are located in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.27 602.25 Td (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.27 602.25 Td ( states ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (and include of) Tj ET Q q 0 0 0 rg BT 106.52 590.25 Td (fice properties, industrial properties and bank branch properties. Included in the Company’) Tj ET Q q 0 0 0 rg BT 471.97 590.25 Td (s portfolio of real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (estate held for investment was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.07 578.25 Td (5.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.97 578.25 Td ( rentable square feet related to the GKK Properties held for investment, which were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (81%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.83 566.25 Td ( occupied as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.58 566.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.41 566.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 548.25 Td (The following table summarizes the Company’) Tj ET Q q 0 0 0 rg BT 261.51 548.25 Td (s investments in real estate as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.87 548.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.70 548.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.13 548.25 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.72 548.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (\(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 477.75 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.00 477.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 477.75 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 477.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 477.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 477.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 477.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 477.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 477.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 451.75 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.00 451.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 451.75 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 451.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 451.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 451.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 451.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 451.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 451.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 425.75 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.00 425.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 425.75 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 425.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 425.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 425.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 425.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 425.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 425.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 399.75 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.00 399.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 399.75 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 399.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 399.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 399.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 399.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 399.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 399.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 373.75 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.00 373.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 373.75 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 373.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 373.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 373.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 373.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 373.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 373.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 347.75 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.00 347.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 347.75 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 347.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 347.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 347.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 347.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 347.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 347.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 321.75 254.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.00 321.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 321.75 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 321.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 321.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 321.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 321.75 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 321.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 321.75 66.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308 490.75 m 358 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 490.75 m 423 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 490.75 m 493 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 490.75 m 563 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308 438.75 m 358 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 438.75 m 423 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 438.75 m 493 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 438.75 m 563 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308 412.75 m 358 412.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 412.75 m 423 412.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 412.75 m 493 412.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 412.75 m 563 412.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308 400.75 m 358 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308 398.75 m 358 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 400.75 m 423 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 398.75 m 423 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 400.75 m 493 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 398.75 m 493 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 400.75 m 563 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 398.75 m 563 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308 347.75 m 358 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 347.75 m 423 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 347.75 m 493 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 347.75 m 563 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308 321.75 m 358 321.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 321.75 m 423 321.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 321.75 m 493 321.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 321.75 m 563 321.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308 309.75 m 358 309.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308 307.75 m 358 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 309.75 m 423 309.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 307.75 m 423 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 309.75 m 493 309.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 307.75 m 493 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 309.75 m 563 309.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 307.75 m 563 307.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 323.35 494.98 Td (Land) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 368.30 502.98 Td (Buildings and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.15 494.98 Td (Impr) Tj ET Q q 0 0 0 rg BT 384.78 494.98 Td (ovements) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.60 510.98 Td (T) Tj ET Q q 0 0 0 rg BT 452.20 510.98 Td (enant ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.00 502.98 Td (Origination and ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.80 494.98 Td (Absorption Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 500.30 510.98 Td (T) Tj ET Q q 0 0 0 rg BT 504.90 510.98 Td (otal Real Estate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.20 502.98 Td (Held for) Tj ET Q q 0 0 0 rg BT 543.72 502.98 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 510.35 494.98 Td (Investment) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 482.00 Td (As of June 30, 2015:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 469.00 Td (Office) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.50 469.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.75 469.00 Td (68,178) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.50 469.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 469.00 Td (410,719) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.50 469.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.80 469.00 Td (1,563) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.50 469.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 469.00 Td (480,460) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 456.00 Td (Industrial) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.75 456.00 Td (16,787) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.80 456.00 Td (82,667) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.80 456.00 Td (2,244) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 456.00 Td (101,698) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 443.00 Td (GKK Properties) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.75 443.00 Td (180,313) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 443.00 Td (318,647) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 443.00 Td (73,671) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 443.00 Td (572,631) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 430.00 Td (Real estate held for investment, at cost and net of impairment charges) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.75 430.00 Td (265,278) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 430.00 Td (812,033) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 430.00 Td (77,478) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 527.80 430.00 Td (1,154,789) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 417.00 Td (Accumulated depreciation/amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 346.80 417.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.10 417.00 Td (\(158,793) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.80 417.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.10 417.00 Td (\(37,327) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 417.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 531.10 417.00 Td (\(196,120) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 417.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 404.00 Td (Real estate held for investment, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.50 404.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.75 404.00 Td (265,278) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.50 404.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 404.00 Td (653,240) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.50 404.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 404.00 Td (40,151) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.50 404.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 404.00 Td (958,669) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 391.00 Td (As of December 31, 2014:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 378.00 Td (Office) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.50 378.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.75 378.00 Td (68,178) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.50 378.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 378.00 Td (401,083) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.50 378.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.80 378.00 Td (1,825) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.50 378.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 378.00 Td (471,086) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 365.00 Td (Industrial) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.75 365.00 Td (16,787) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.80 365.00 Td (80,565) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.80 365.00 Td (3,137) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 365.00 Td (100,489) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 352.00 Td (GKK Properties) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.75 352.00 Td (180,313) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 352.00 Td (319,228) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 352.00 Td (74,088) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 352.00 Td (573,629) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 339.00 Td (Real estate held for investment, at cost and net of impairment charges) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.75 339.00 Td (265,278) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 339.00 Td (800,876) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 339.00 Td (79,050) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 527.80 339.00 Td (1,145,204) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 326.00 Td (Accumulated depreciation/amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 346.80 326.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.10 326.00 Td (\(141,306) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.80 326.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.10 326.00 Td (\(33,741) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 326.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 531.10 326.00 Td (\(175,047) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 326.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 313.00 Td (Real estate held for investment, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.50 313.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.75 313.00 Td (265,278) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.50 313.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 313.00 Td (659,570) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.50 313.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 313.00 Td (45,309) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.50 313.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 313.00 Td (970,157) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 285.25 Td (Operating Leases) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 267.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 133.21 267.25 Td (s real estate assets are leased to tenants under operating leases for which the terms and expirations vary) Tj ET Q q 0 0 0 rg BT 544.91 267.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.94 255.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.77 255.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 191.16 255.25 Td (s leases, including the GKK Properties held for investment and excluding options to extend, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.25 Td (had remaining terms of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.81 243.25 Td (1) Tj ET Q q 0 0 0 rg BT 172.43 243.25 Td (1.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.93 243.25 Td ( years with a weighted-average remaining term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.52 243.25 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.02 243.25 Td ( years. ) Tj ET Q q 0 0 0 rg BT 429.56 243.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.01 243.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.84 243.25 Td (, leases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 231.25 Td (related to the GKK Properties, excluding options to extend, had remaining terms of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.03 231.25 Td (1) Tj ET Q q 0 0 0 rg BT 412.66 231.25 Td (1.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.16 231.25 Td ( years with a weighted-average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 219.25 Td (remaining term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.20 219.25 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.70 219.25 Td ( years. Some of the Company’) Tj ET Q q 0 0 0 rg BT 260.29 219.25 Td (s leases have provisions to extend the term of the leases, options for early ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.25 Td (termination for all or a part of the leased premises after paying a specified penalty) Tj ET Q q 0 0 0 rg BT 376.50 207.25 Td (, rights of first refusal to purchase the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.25 Td (property at competitive market rates, and other terms and conditions as negotiated. ) Tj ET Q q 0 0 0 rg BT 384.68 195.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 434.58 195.25 Td (, the Company assumed several ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.25 Td (leases related to the GKK Properties which contain shedding rights provisions. ) Tj ET Q q 0 0 0 rg BT 369.16 183.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.61 183.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.44 183.25 Td (, these shedding rights ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.25 Td (totaled approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.47 171.25 Td (33,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.97 171.25 Td ( square feet and can be exercised at various dates during the remainder of 2015 through 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.25 Td (Pursuant to these rights, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.76 159.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.59 159.25 Td (, a tenant had notified the Company of its intent to shed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.27 159.25 Td (30,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.77 159.25 Td ( square feet from its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.25 Td (leased premises in September 2015. ) Tj ET Q q 0 0 0 rg BT 197.89 147.25 Td (The Company retains substantially all of the risks and benefits of ownership of the real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 135.25 Td (estate assets leased to tenants. Generally) Tj ET Q q 0 0 0 rg BT 212.96 135.25 Td (, upon the execution of a lease, the Company requires a security deposit from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 123.25 Td (tenant in the form of a cash deposit and/or a letter of credit. ) Tj ET Q q 0 0 0 rg BT 291.73 123.25 Td (The amount required as a security deposit varies depending upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 111.25 Td (the terms of the respective lease and the creditworthiness of the tenant, but generally is not a significant amount. ) Tj ET Q q 0 0 0 rg BT 503.62 111.25 Td (Therefore, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.25 Td (exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.25 Td (deposits received in cash related to tenant leases are included in other liabilities in the accompanying consolidated balance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.25 Td (sheets and totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.09 75.25 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.98 75.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.42 75.25 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.31 75.25 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.47 75.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.30 75.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.74 75.25 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.32 75.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 470.98 75.25 Td (.) Tj ET Q endstream endobj 27 0 obj <>] /Rotate 0 /Contents 28 0 R>> endobj 28 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 632.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.72 632.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.54 632.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.37 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.81 632.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.81 632.10 Td (, the Company recognized deferred rent from tenants of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.72 632.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.61 632.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 620.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.33 620.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 167.99 620.10 Td (. ) Tj ET Q q 0 0 0 rg BT 175.31 620.10 Td (These excess amounts for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.55 620.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.22 620.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.04 620.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.88 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.31 620.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.31 620.10 Td ( were net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.29 620.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 562.18 620.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 608.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.33 608.10 Td ( of lease incentive amortization, respectively) Tj ET Q q 0 0 0 rg BT 293.49 608.10 Td (. ) Tj ET Q q 0 0 0 rg BT 300.44 608.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.89 608.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.72 608.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.15 608.10 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.74 608.10 Td (, the cumulative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (deferred rent balance was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.44 596.10 Td ($29.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.33 596.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.77 596.10 Td ($27.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.66 596.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 334.32 596.10 Td (, and is included in rents and other receivables on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (accompanying balance sheets. ) Tj ET Q q 0 0 0 rg BT 172.60 584.10 Td (The cumulative deferred rent balance included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.39 584.10 Td ($6.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.29 584.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.72 584.10 Td ($5.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.62 584.10 Td ( of unamortized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (lease incentives as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.69 572.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.52 572.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.96 572.10 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.54 572.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 343.20 572.10 Td (. ) Tj ET Q q 0 0 0 rg BT 350.52 572.10 Td (The Company records property operating expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (reimbursements due from tenants for common area maintenance, real estate taxes and other recoverable costs in the period the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (related expenses are incurred.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 530.10 Td (The future minimum rental income from the Company’) Tj ET Q q 0 0 0 rg BT 294.83 530.10 Td (s properties under non-cancelable operating leases, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (leases subject to shedding rights and excluding options to extend, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.28 518.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.11 518.10 Td ( for the years ending December 31 is as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 489.60 398.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 489.60 115.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 463.60 398.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 463.60 115.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 437.60 398.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 437.60 115.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 411.60 398.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 411.60 115.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 411.6 m 563 411.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 399.6 m 563 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 397.6 m 563 397.6 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 480.86 Td (July 1, 2015 through December 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.50 480.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 480.86 Td (56,749) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 467.86 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 467.86 Td (113,907) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 454.86 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 454.86 Td (105,101) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 441.86 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 441.86 Td (92,065) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 428.86 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 428.86 Td (77,383) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 415.86 Td (Thereafter) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 415.86 Td (198,008) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.50 402.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 402.86 Td (643,213) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 375.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 375.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 375.10 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 215.16 375.10 Td (s highest tenant industry concentration \(greater than 10% of annualized base rent\) was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.10 Td (as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 320.60 238.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 320.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 320.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 320.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 320.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 320.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.00 320.60 106.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 320.6 m 288 320.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 320.6 m 349 320.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 320.6 m 453 320.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 320.6 m 563 320.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 324.83 Td (Industry) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 301.50 332.83 Td (Number) Tj ET Q q 0 0 0 rg BT 329.80 332.83 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 306.55 324.83 Td (T) Tj ET Q q 0 0 0 rg BT 311.15 324.83 Td (enants) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.90 338.68 Td (Annualized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 381.20 330.68 Td (Base Rent ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 417.64 334.31 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.15 322.73 Td (\(in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 486.35 332.83 Td (Per) Tj ET Q q 0 0 0 rg BT 498.19 332.83 Td (centage of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.70 324.83 Td (Annualized Base Rent) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 311.85 Td (Finance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 316.00 311.85 Td (72) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.50 311.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 311.85 Td (56,839) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 311.85 Td (48.6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 311.85 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (_____________________) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 287.50 Td (\(1\) ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 57.62 284.10 Td (Annualized base rent represents annualized contractual base rental income as of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 298.98 284.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 340.86 284.10 Td (, adjusted to straight-line any contractual tenant concessions \(including ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (free rent\), rent increases and rent decreases from the lease's inception through the balance of the lease term. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 251.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 251.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 251.10 Td (, no other tenant industries accounted for more than 10% of the Company’) Tj ET Q q 0 0 0 rg BT 450.64 251.10 Td (s annualized base rent. ) Tj ET Q q 0 0 0 rg BT 543.48 251.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (Company currently has approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.57 239.10 Td (350) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.57 239.10 Td ( tenants over a diverse range of industries and geographical regions. ) Tj ET Q q 0 0 0 rg BT 496.87 239.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.31 239.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 227.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 227.10 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.52 227.10 Td (, the Company had a bad debt expense reserve of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.06 227.10 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.95 227.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.39 227.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.28 227.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 535.95 227.10 Td (. ) Tj ET Q q 0 0 0 rg BT 543.26 227.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 215.10 Td (s bad debt expense reserve as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.95 215.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.78 215.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.21 215.10 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.80 215.10 Td ( included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.23 215.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.12 215.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.56 215.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.45 215.10 Td ( related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (to the GKK Properties, respectively) Tj ET Q q 0 0 0 rg BT 191.87 203.10 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.92 203.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.58 203.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.41 203.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.24 203.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.68 203.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.68 203.10 Td (, the Company recorded bad debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (expense related to its tenant receivables of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.37 191.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.26 191.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.70 191.10 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.59 191.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 391.25 191.10 Td (.) Tj ET Q endstream endobj 29 0 obj <>] /Rotate 0 /Contents 30 0 R>> endobj 30 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 632.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 632.10 Td (, the Company had a concentration of credit risk related to leases with the following tenant that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (represented more than 10% of the Company’) Tj ET Q q 0 0 0 rg BT 228.89 620.10 Td (s annualized base rent:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 553.60 82.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 132.00 553.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 136.00 553.60 37.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 173.00 553.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 553.60 46.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 553.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 553.60 47.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.00 553.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 553.60 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 553.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 553.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 553.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 553.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 553.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 553.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 553.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 553.60 48.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 590.6 m 393 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 590.6 m 397 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 590.6 m 452 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 590.6 m 456 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 590.6 m 511 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 553.6 m 132 553.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 136 553.6 m 173 553.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 553.6 m 223 553.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 553.6 m 274 553.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278 553.6 m 334 553.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 553.6 m 393 553.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 553.6 m 452 553.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 553.6 m 511 553.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 553.6 m 563 553.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 594.85 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 138.50 594.85 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 179.50 594.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 369.85 594.83 Td (Annualized Base Rent Statistics) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 517.50 594.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 78.60 557.83 Td (Tenant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 138.70 557.83 Td (Property) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 187.60 565.83 Td (T) Tj ET Q q 0 0 0 rg BT 192.20 565.83 Td (enant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 184.60 557.83 Td (Industry) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 234.65 565.83 Td (Rentable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 229.50 557.83 Td (Square Feet) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.15 581.83 Td (% of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.35 573.83 Td (Portfolio ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.15 565.83 Td (Rentable ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.00 557.83 Td (Squar) Tj ET Q q 0 0 0 rg BT 305.75 557.83 Td (e Feet) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 345.40 573.83 Td (Annualized ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.70 565.83 Td (Base Rent ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 380.14 569.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 340.65 557.83 Td (\(in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 399.55 573.83 Td (% of Portfolio) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.40 565.83 Td (Annualized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 406.75 557.83 Td (Base Rent) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.40 573.83 Td (Annualized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.05 565.83 Td (Base Rent per) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.05 557.83 Td (Square Foot) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 528.70 565.83 Td (Lease) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.45 557.83 Td (Expirations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 544.85 Td (Bank of America, N.A.) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 141.75 544.85 Td (Various) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.80 544.85 Td (Finance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 234.00 544.85 Td (2,811,855) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.80 544.85 Td (30.7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 326.80 544.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 340.50 544.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 544.85 Td (22,494) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 430.80 544.85 Td (19.2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 444.80 544.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.50 544.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 544.85 Td (8.00) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 535.45 548.96 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (_____________________) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 520.50 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 517.10 Td ( ) Tj ET Q q 0 0 0 rg BT 56.65 517.10 Td (Annualized base rent represents annualized contractual base rental income as of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 298.01 517.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 339.88 517.10 Td (, adjusted to straight-line any contractual tenant concessions \(including ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 508.10 Td (free rent\), rent increases and rent decreases from the lease’) Tj ET Q q 0 0 0 rg BT 225.25 508.10 Td (s inception through the balance of the lease term. ) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 499.50 Td (\(2\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 496.10 Td ( ) Tj ET Q q 0 0 0 rg BT 56.65 496.10 Td (As of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 74.98 496.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 116.85 496.10 Td (, lease expiration dates ranged from the remainder of 2015 through 2026 with a weighted-average remaining term of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 467.78 496.10 Td (4.6) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 477.16 496.10 Td ( years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 472.10 Td (Bank of ) Tj ET Q q 0 0 0 rg BT 107.39 472.10 Td (America Corporation is the guarantor of various leases that its subsidiary) Tj ET Q q 0 0 0 rg BT 398.89 472.10 Td (, Bank of ) Tj ET Q q 0 0 0 rg BT 437.77 472.10 Td (America, N.A., has with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 460.10 Td (Company) Tj ET Q q 0 0 0 rg BT 87.74 460.10 Td (. ) Tj ET Q q 0 0 0 rg BT 95.06 460.10 Td (The condensed consolidated financial information of Bank of ) Tj ET Q q 0 0 0 rg BT 342.76 460.10 Td (America Corporation has been included herein ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 448.10 Td (because of the significant credit concentration the Company has with this guarantor) Tj ET Q q 0 0 0 rg BT 383.01 448.10 Td (. Bank of ) Tj ET Q q 0 0 0 rg BT 424.40 448.10 Td (America Corporation currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 436.10 Td (files its financial statements in reports filed with the SEC, and the following unaudited summary financial data regarding Bank ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 424.10 Td (of ) Tj ET Q q 0 0 0 rg BT 59.78 424.10 Td (America Corporation is taken from its previously filed public reports. For more detailed financial information regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 412.10 Td (Bank of ) Tj ET Q q 0 0 0 rg BT 83.39 412.10 Td (America Corporation, please refer to its financial statements, which are publicly available with the SEC at ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 510.466796875 410.7669921875 m 537.41015625 410.7669921875 l s q 0 0 0 rg BT 510.47 412.10 Td (http:// ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 49.5 398.7669921875 m 102.732421875 398.7669921875 l s q 0 0 0 rg BT 49.50 400.10 Td (www) Tj ET Q q 0 0 0 rg BT 68.77 400.10 Td (.sec.gov) Tj ET Q q 0 0 0 rg BT 100.23 400.10 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 357.60 206.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 357.60 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 357.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 357.60 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 357.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 357.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 357.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 357.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 331.60 206.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 331.60 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 331.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 331.60 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 331.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 331.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 331.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 331.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 272.60 206.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 272.60 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 272.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 272.60 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 272.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 272.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 272.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 272.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 246.60 206.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 246.60 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 246.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 246.60 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 246.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 246.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 246.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 246.60 70.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 370.6 m 484 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 370.6 m 331 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 357.6 m 331 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 370.6 m 335 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 370.6 m 410 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 357.6 m 410 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 370.6 m 484 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 357.6 m 484 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 370.6 m 488 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 357.6 m 488 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 370.6 m 558 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 357.6 m 558 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 357.6 m 331 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 357.6 m 484 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 357.6 m 488 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 357.6 m 558 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 285.6 m 331 285.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 285.6 m 335 285.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 285.6 m 410 285.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 272.6 m 331 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 272.6 m 410 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 272.6 m 331 272.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 374.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 280.85 374.83 Td (Three Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.70 374.83 Td (Six Months Ended June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 361.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.00 361.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 364.00 361.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.50 361.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.50 361.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 348.83 Td (Consolidated Statements of Income \(in millions\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 335.85 Td (Total revenue, net of interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 258.50 335.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 305.80 335.85 Td (22,117) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.50 335.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 335.85 Td (21,747) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.50 335.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 335.85 Td (43,319) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.50 335.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.80 335.85 Td (44,313) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 322.85 Td (Income before income taxes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.80 322.85 Td (7,519) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.80 322.85 Td (2,795) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 322.85 Td (12,261) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.80 322.85 Td (2,114) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 309.85 Td (Net income \(loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.80 309.85 Td (5,320) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.80 309.85 Td (2,291) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.80 309.85 Td (8,677) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.80 309.85 Td (2,015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 323.70 289.83 Td (As of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 269.75 276.83 Td (June 30, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.75 276.83 Td (December 31, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 263.83 Td (Consolidated Balance Sheets \(in millions\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 250.85 Td (Total assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 258.50 250.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 295.80 250.85 Td (2,149,034) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.50 250.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 250.85 Td (2,104,534) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 237.85 Td (Total liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 295.80 237.85 Td (1,897,375) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 237.85 Td (1,861,063) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 224.85 Td (Total stockholders’ equity) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.80 224.85 Td (251,659) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.80 224.85 Td (243,471) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 197.10 Td (No) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.72 197.10 Td ( other tenant represented more than 10% of the Company’) Tj ET Q q 0 0 0 rg BT 317.59 197.10 Td (s annualized base rent.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (Geographic Concentration Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 161.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 161.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 161.10 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 215.16 161.10 Td (s net investments in real estate in ) Tj ET Q q 0 0 0 rg BT 349.66 161.10 Td (V) Tj ET Q q 0 0 0 rg BT 356.28 161.10 Td (ir) Tj ET Q q 0 0 0 rg BT 362.21 161.10 Td (ginia represented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.29 161.10 Td (10.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.12 161.10 Td ( of the Company’) Tj ET Q q 0 0 0 rg BT 528.83 161.10 Td (s total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.10 Td (assets. ) Tj ET Q q 0 0 0 rg BT 79.78 149.10 Td (As a result, the geographic concentration of the Company’) Tj ET Q q 0 0 0 rg BT 313.32 149.10 Td (s portfolio makes it particularly susceptible to adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.10 Td (economic developments in ) Tj ET Q q 0 0 0 rg BT 159.01 137.10 Td (V) Tj ET Q q 0 0 0 rg BT 165.63 137.10 Td (ir) Tj ET Q q 0 0 0 rg BT 171.56 137.10 Td (ginia’) Tj ET Q q 0 0 0 rg BT 194.33 137.10 Td (s real estate market. ) Tj ET Q q 0 0 0 rg BT 278.19 137.10 Td (Any adverse economic or real estate developments in this market, such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.10 Td (as business layof) Tj ET Q q 0 0 0 rg BT 117.09 125.10 Td (fs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.10 Td (any decrease in demand for of) Tj ET Q q 0 0 0 rg BT 170.10 113.10 Td (fice or bank branch space resulting from the local business climate, could adversely af) Tj ET Q q 0 0 0 rg BT 514.79 113.10 Td (fect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.10 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 101.10 Td (s operating results.) Tj ET Q endstream endobj 31 0 obj <>] /Rotate 0 /Contents 32 0 R>> endobj 32 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (4. ) Tj ET Q q 0 0 0 rg BT 67.50 632.25 Td (TENANT) Tj ET Q q 0 0 0 rg BT 108.99 632.25 Td ( ORIGINA) Tj ET Q q 0 0 0 rg BT 155.76 632.25 Td (TION ) Tj ET Q q 0 0 0 rg BT 183.27 632.25 Td (AND ) Tj ET Q q 0 0 0 rg BT 206.88 632.25 Td (ABSORPTION COSTS, ) Tj ET Q q 0 0 0 rg BT 312.74 632.25 Td (ABOVE-MARKET) Tj ET Q q 0 0 0 rg BT 396.46 632.25 Td ( LEASE ) Tj ET Q q 0 0 0 rg BT 433.70 632.25 Td (ASSETS ) Tj ET Q q 0 0 0 rg BT 472.89 632.25 Td (AND BELOW) Tj ET Q q 0 0 0 rg BT 534.47 632.25 Td (-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 620.25 Td (MARKET) Tj ET Q q 0 0 0 rg BT 112.32 620.25 Td ( LEASE LIABILITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 602.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 602.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 602.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.21 602.25 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.80 602.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 313.18 602.25 Td (s tenant origination and absorption costs, above-market lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (assets, and below-market lease liabilities \(excluding fully amortized assets and liabilities and accumulated amortization\) were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 521.75 162.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 521.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 521.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 521.75 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 521.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 521.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 521.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 521.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 521.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 521.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 521.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 521.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 495.75 162.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 495.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 495.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 495.75 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 495.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 495.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 495.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 495.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 495.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 495.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 495.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 495.75 55.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 541.75 m 267 541.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 541.75 m 271 541.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 541.75 m 327 541.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 541.75 m 386 541.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 541.75 m 390 541.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 541.75 m 445 541.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 541.75 m 504 541.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 541.75 m 508 541.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 541.75 m 563 541.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 541.75 m 267 541.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 521.75 m 267 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 541.75 m 327 541.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 521.75 m 327 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 541.75 m 386 541.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 521.75 m 386 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 541.75 m 445 541.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 521.75 m 445 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 541.75 m 504 541.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 521.75 m 504 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 541.75 m 563 541.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 521.75 m 563 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 495.75 m 267 495.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 495.75 m 327 495.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 495.75 m 386 495.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 495.75 m 445 495.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 495.75 m 504 495.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 495.75 m 563 495.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 483.75 m 267 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 481.75 m 267 481.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 483.75 m 327 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 481.75 m 327 481.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 483.75 m 386 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 481.75 m 386 481.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 483.75 m 445 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 481.75 m 445 481.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 483.75 m 504 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 481.75 m 504 481.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 483.75 m 563 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 481.75 m 563 481.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 546.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 228.65 553.83 Td (T) Tj ET Q q 0 0 0 rg BT 233.25 553.83 Td (enant Origination and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 239.30 545.83 Td (Absorption Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 362.35 553.83 Td (Above-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.25 545.83 Td (Lease ) Tj ET Q q 0 0 0 rg BT 387.36 545.83 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.80 553.83 Td (Below-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.60 545.83 Td (Lease Liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 526.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 215.75 525.98 Td (June 30, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 275.25 533.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.50 525.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 334.75 525.98 Td (June 30, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.75 533.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 409.00 525.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.75 525.98 Td (June 30, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.75 533.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.00 525.83 Td (2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 513.00 Td (Cost, net of impairments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 214.50 513.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 241.80 513.00 Td (77,478) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 513.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.80 513.00 Td (79,050) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.50 513.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.80 513.00 Td (32,685) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.50 513.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.80 513.00 Td (32,796) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.50 513.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.10 513.00 Td (\(70,667) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 513.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.50 513.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 535.10 513.00 Td (\(71,141) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 513.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 500.00 Td (Accumulated amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.10 500.00 Td (\(37,327) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.80 500.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.10 500.00 Td (\(33,741) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.80 500.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.10 500.00 Td (\(13,103) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.80 500.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.10 500.00 Td (\(11,118) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 500.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.80 500.00 Td (37,952) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 500.00 Td (33,066) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 487.00 Td (Net Amount) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 214.50 487.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 241.80 487.00 Td (40,151) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 487.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.80 487.00 Td (45,309) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.50 487.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.80 487.00 Td (19,582) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.50 487.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.80 487.00 Td (21,678) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.50 487.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.10 487.00 Td (\(32,715) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 487.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.50 487.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 535.10 487.00 Td (\(38,075) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 487.00 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 462.25 Td (Increases \(decreases\) in net income as a result of amortization of the Company’) Tj ET Q q 0 0 0 rg BT 391.16 462.25 Td (s tenant origination and absorption costs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.25 Td (above-market lease assets and below-market lease liabilities for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.34 450.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.32 450.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.76 450.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.43 450.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.25 450.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.08 450.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.52 450.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.52 450.25 Td ( were as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 438.25 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 368.75 161.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.50 368.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 368.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 368.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.50 368.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 368.75 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.50 368.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.50 368.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 368.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 368.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 368.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.50 368.75 55.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 401.75 m 266.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266.5 401.75 m 270.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 401.75 m 325.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 401.75 m 383.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 401.75 m 387.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 401.75 m 442.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 401.75 m 501.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 401.75 m 505.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 401.75 m 560.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 401.75 m 266.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 381.75 m 266.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266.5 401.75 m 270.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266.5 381.75 m 270.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 401.75 m 325.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 381.75 m 325.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 401.75 m 383.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 381.75 m 383.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 401.75 m 387.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 381.75 m 387.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 401.75 m 442.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 381.75 m 442.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 401.75 m 501.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 381.75 m 501.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 401.75 m 505.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 381.75 m 505.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 401.75 m 560.5 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 381.75 m 560.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 381.75 m 266.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 368.75 m 266.5 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 381.75 m 325.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 368.75 m 325.5 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 381.75 m 383.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 368.75 m 383.5 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 381.75 m 442.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 368.75 m 442.5 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 381.75 m 501.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 368.75 m 501.5 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 381.75 m 560.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 368.75 m 560.5 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 368.75 m 266.5 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 356.75 m 266.5 356.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 354.75 m 266.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 368.75 m 325.5 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 356.75 m 325.5 356.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 354.75 m 325.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 368.75 m 383.5 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 356.75 m 383.5 356.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 354.75 m 383.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 368.75 m 442.5 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 356.75 m 442.5 356.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.5 354.75 m 442.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 368.75 m 501.5 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 356.75 m 501.5 356.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 354.75 m 501.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 368.75 m 560.5 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 356.75 m 560.5 356.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 354.75 m 560.5 354.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 406.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 226.65 413.83 Td (T) Tj ET Q q 0 0 0 rg BT 231.25 413.83 Td (enant Origination and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 238.30 405.83 Td (Absorption Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.35 413.83 Td (Above-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 364.25 405.83 Td (Lease ) Tj ET Q q 0 0 0 rg BT 385.36 405.83 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.30 413.83 Td (Below-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.10 405.83 Td (Lease Liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 386.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 218.20 393.83 Td (For the Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.75 385.83 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.70 393.83 Td (For the Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.25 385.83 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.20 393.83 Td (For the Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.75 385.83 Td (June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 373.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 230.50 372.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.50 372.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.00 372.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 406.50 372.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.50 372.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.50 372.98 Td (2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 360.00 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 214.00 360.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 242.60 360.00 Td (\(2,581) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.30 360.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.00 360.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.60 360.00 Td (\(3,993) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 322.30 360.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.00 360.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.60 360.00 Td (\(1,303) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.30 360.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.00 360.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.60 360.00 Td (\(1,001) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.30 360.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.00 360.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.30 360.00 Td (3,594) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 508.00 360.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.30 360.00 Td (3,094) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 286.75 163.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 286.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 286.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 286.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 286.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 286.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 286.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 286.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 286.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 286.75 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 286.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 286.75 55.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 319.75 m 268 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 319.75 m 272 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 319.75 m 327 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 319.75 m 386 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 319.75 m 390 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 319.75 m 445 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 319.75 m 504 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 319.75 m 508 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 319.75 m 563 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 319.75 m 268 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 299.75 m 268 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 319.75 m 272 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 299.75 m 272 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 319.75 m 327 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 299.75 m 327 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 319.75 m 386 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 299.75 m 386 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 319.75 m 390 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 299.75 m 390 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 319.75 m 445 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 299.75 m 445 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 319.75 m 504 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 299.75 m 504 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 319.75 m 508 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 299.75 m 508 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 319.75 m 563 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 299.75 m 563 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 299.75 m 268 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 286.75 m 268 286.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 299.75 m 327 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 286.75 m 327 286.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 299.75 m 386 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 286.75 m 386 286.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 299.75 m 445 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 286.75 m 445 286.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 299.75 m 504 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 286.75 m 504 286.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 299.75 m 563 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 286.75 m 563 286.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 274.75 m 268 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 272.75 m 268 272.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 274.75 m 327 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 272.75 m 327 272.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 274.75 m 386 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 272.75 m 386 272.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 274.75 m 445 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 272.75 m 445 272.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 274.75 m 504 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 272.75 m 504 272.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 274.75 m 563 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 272.75 m 563 272.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 324.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 228.15 331.83 Td (T) Tj ET Q q 0 0 0 rg BT 232.75 331.83 Td (enant Origination and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 239.80 323.83 Td (Absorption Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 362.35 331.83 Td (Above-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.25 323.83 Td (Lease ) Tj ET Q q 0 0 0 rg BT 387.36 323.83 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.80 331.83 Td (Below-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.60 323.83 Td (Lease Liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 304.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 224.45 311.83 Td (For the Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 255.25 303.83 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 342.45 311.83 Td (For the Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.25 303.83 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.45 311.83 Td (For the Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.25 303.83 Td (June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 291.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 232.00 290.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 291.00 290.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.00 290.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 409.00 290.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 290.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.00 290.98 Td (2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 278.00 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 215.50 278.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.10 278.00 Td (\(5,405) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 264.80 278.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 274.50 278.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.10 278.00 Td (\(7,827) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.80 278.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.50 278.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.10 278.00 Td (\(2,158) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.80 278.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.50 278.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.10 278.00 Td (\(2,009) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 278.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.50 278.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.80 278.00 Td (6,239) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.50 278.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 278.00 Td (6,115) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 33 0 obj <>] /Rotate 0 /Contents 34 0 R>> endobj 34 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (5. ) Tj ET Q q 0 0 0 rg BT 67.50 632.25 Td (REAL) Tj ET Q q 0 0 0 rg BT 94.73 632.25 Td ( EST) Tj ET Q q 0 0 0 rg BT 115.39 632.25 Td (A) Tj ET Q q 0 0 0 rg BT 121.87 632.25 Td (TE LOANS RECEIV) Tj ET Q q 0 0 0 rg BT 212.27 632.25 Td (ABLE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 614.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 614.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 614.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.21 614.25 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.80 614.25 Td (, the Company) Tj ET Q q 0 0 0 rg BT 309.75 614.25 Td (, through indirect wholly owned subsidiaries, had invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (or originated real estate loans receivable as follows \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 548.75 127.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 548.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 548.75 34.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 215.00 548.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 548.75 29.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 548.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 548.75 35.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 548.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 548.75 48.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 548.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 548.75 46.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 548.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 548.75 46.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 548.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 548.75 38.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 548.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 548.75 36.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.00 548.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.00 548.75 34.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 512.75 127.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 512.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 512.75 34.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 215.00 512.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 512.75 29.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 512.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 512.75 35.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 512.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 512.75 48.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 512.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 512.75 46.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 512.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 512.75 46.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 512.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 512.75 38.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 512.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 512.75 36.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.00 512.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.00 512.75 34.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 476.75 127.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 476.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 476.75 34.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 215.00 476.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 476.75 29.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 476.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 476.75 35.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 476.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 476.75 48.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 476.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 476.75 46.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 476.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 476.75 46.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 476.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 476.75 38.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 476.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 476.75 36.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.00 476.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.00 476.75 34.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 440.75 127.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 440.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 440.75 34.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 215.00 440.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 440.75 29.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 440.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 440.75 35.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 440.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 440.75 48.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 440.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 440.75 46.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 440.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 440.75 46.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 440.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 440.75 38.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 440.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 440.75 36.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 521.00 440.75 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.00 440.75 34.00 -18.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 548.75 m 177 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181 548.75 m 215 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 548.75 m 248 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 252 548.75 m 287 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 548.75 m 339 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 548.75 m 389 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 548.75 m 439 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 548.75 m 481 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 548.75 m 521 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 525 548.75 m 559 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 548.75 m 177 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 476.75 m 339 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 476.75 m 389 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 476.75 m 439 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 440.75 m 339 440.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 440.75 m 389 440.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 440.75 m 439 440.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 423.75 m 339 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 421.75 m 339 421.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 423.75 m 389 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 421.75 m 389 421.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 423.75 m 439 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 421.75 m 439 421.75 l s BT /F2 6.00 Tf ET q 0 0 0 rg BT 52.50 558.59 Td (Loan Name) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 61.50 552.59 Td (Location of Related Pr) Tj ET Q q 0 0 0 rg BT 119.55 552.59 Td (operty or) Tj ET Q q 0 0 0 rg BT 143.26 552.59 Td ( Collateral) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 191.50 564.59 Td (Date) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 184.70 558.59 Td (Acquir) Tj ET Q q 0 0 0 rg BT 202.59 558.59 Td (ed/) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 183.50 552.59 Td (Originated) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 221.55 558.59 Td (Pr) Tj ET Q q 0 0 0 rg BT 227.77 558.59 Td (operty) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 226.70 552.59 Td (T) Tj ET Q q 0 0 0 rg BT 230.26 552.59 Td (ype) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 262.30 558.59 Td (Loan) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 262.70 552.59 Td (T) Tj ET Q q 0 0 0 rg BT 266.26 552.59 Td (ype) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 298.45 570.59 Td (Outstanding) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 302.65 564.59 Td (Principal) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 297.65 558.59 Td (Balance as of ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 294.80 552.59 Td (June 30, 2015) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 329.64 555.31 Td (\(1\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 350.90 570.59 Td (Book ) Tj ET Q q 0 0 0 rg BT 365.63 570.59 Td (V) Tj ET Q q 0 0 0 rg BT 369.41 570.59 Td (alue) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 359.55 564.59 Td (as of) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 354.80 558.59 Td (June 30,) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 355.70 552.59 Td ( 2015 ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 370.70 555.31 Td (\(2\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 400.90 570.59 Td (Book ) Tj ET Q q 0 0 0 rg BT 415.63 570.59 Td (V) Tj ET Q q 0 0 0 rg BT 419.41 570.59 Td (alue) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 409.55 564.59 Td (as of) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 398.05 558.59 Td (December) Tj ET Q q 0 0 0 rg BT 423.93 558.59 Td ( 31,) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 406.45 552.59 Td (2014 ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 419.95 555.31 Td (\(2\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 446.00 564.59 Td (Contractual) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 451.55 558.59 Td (Inter) Tj ET Q q 0 0 0 rg BT 464.44 558.59 Td (est) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 452.45 552.59 Td (Rate ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 465.94 555.31 Td (\(3\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 487.80 570.59 Td (Annualized) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 491.15 564.59 Td (Effective) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 492.55 558.59 Td (Inter) Tj ET Q q 0 0 0 rg BT 505.44 558.59 Td (est) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 493.45 552.59 Td (Rate ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 506.94 555.31 Td (\(3\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 529.80 558.59 Td (Maturity) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 535.50 552.59 Td (Date) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 542.09 Td (Sandmar Mezzanine Loan) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 61.50 534.09 Td (Southeast U.S. ) Tj ET Q BT /F1 6.00 Tf ET BT /F1 3.90 Tf ET q 0 0 0 rg BT 98.50 536.81 Td (\(4\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 183.80 534.59 Td (01/09/2007) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 225.80 534.59 Td (Retail) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 255.80 534.59 Td (Mezzanine) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 293.50 534.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 323.00 534.59 Td (5,110) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 345.50 534.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 373.00 534.59 Td (5,132) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 395.50 534.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 423.00 534.59 Td (5,181) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 455.25 534.59 Td (5.4%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 509.50 534.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 515.50 534.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 528.15 534.59 Td (01/01/2017) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 524.09 Td (Lawrence ) Tj ET Q q 0 0 0 rg BT 77.54 524.09 Td (V) Tj ET Q q 0 0 0 rg BT 81.51 524.09 Td (illage Plaza Loan Origination) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 61.50 516.09 Td (New Castle, Pennsylvania) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 183.80 516.59 Td (08/06/2007) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 225.80 516.59 Td (Retail) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 257.30 516.59 Td (Mortgage) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 323.00 516.59 Td (6,917) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 373.00 516.59 Td (6,917) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 423.00 516.59 Td (6,920) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 455.25 516.59 Td (8.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 508.00 516.59 Td (8.1) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 515.50 516.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 528.15 516.59 Td (09/01/2015) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 506.09 Td (San Diego Of) Tj ET Q q 0 0 0 rg BT 85.39 506.09 Td (fice Portfolio B-Note) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 61.50 498.09 Td (San Diego, California ) Tj ET Q BT /F1 6.00 Tf ET BT /F1 3.90 Tf ET q 0 0 0 rg BT 115.49 500.81 Td (\(5\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 183.80 498.59 Td (10/26/2007) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 225.35 498.59 Td (Office) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 260.15 498.59 Td (B-Note) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 320.00 498.59 Td (20,000) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.00 498.59 Td (17,849) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 420.00 498.59 Td (17,450) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 455.25 498.59 Td (5.8%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.00 498.59 Td (11.2) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 515.50 498.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 528.35 498.59 Td (10/11/2017) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 488.09 Td (4929 ) Tj ET Q q 0 0 0 rg BT 65.89 488.09 Td (W) Tj ET Q q 0 0 0 rg BT 71.31 488.09 Td (ilshire B-Note) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 61.50 480.09 Td (Los ) Tj ET Q q 0 0 0 rg BT 71.67 480.09 Td (Angeles, California) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 183.90 480.59 Td (11/19/2007) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 225.35 480.59 Td (Office) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 260.15 480.59 Td (B-Note) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 323.00 480.59 Td (3,860) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 373.00 480.59 Td (3,431) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 423.00 480.59 Td (3,365) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 455.25 480.59 Td (6.1%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.00 480.59 Td (12.4) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 515.50 480.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 528.35 480.59 Td (07/11/2017) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 293.50 462.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 320.00 462.59 Td (35,887) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 345.50 462.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.00 462.59 Td (33,329) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 395.50 462.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 420.00 462.59 Td (32,916) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 444.59 Td (Reserve for Loan Losses ) Tj ET Q BT /F1 6.00 Tf ET BT /F1 3.90 Tf ET q 0 0 0 rg BT 113.48 447.31 Td (\(6\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 330.50 444.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 371.00 444.59 Td (\(3,994) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 386.50 444.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 421.00 444.59 Td (\(3,994) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 436.50 444.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 293.50 426.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 320.00 426.59 Td (35,887) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 345.50 426.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.00 426.59 Td (29,335) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 395.50 426.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 420.00 426.59 Td (28,922) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.25 Td (_____________________) Tj ET Q BT /F1 6.50 Tf ET BT /F1 4.22 Tf ET q 0 0 0 rg BT 49.50 403.40 Td (\(1\)) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 54.43 400.45 Td ( Outstanding principal balance as of ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 149.73 400.45 Td (June 30, 2015) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 186.02 400.45 Td ( represents original principal balance outstanding under the loan, increased for any subsequent fundings and reduced for any principal ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 49.50 392.65 Td (paydowns.) Tj ET Q BT /F1 6.50 Tf ET BT /F1 4.22 Tf ET q 0 0 0 rg BT 49.50 384.80 Td (\(2\)) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 54.43 381.85 Td ( Book value represents outstanding principal balance, adjusted for unamortized acquisition discounts, origination fees and direct origination and acquisition costs. Loan balances are presented ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 49.50 374.05 Td (gross of any asset-specific reserves.) Tj ET Q BT /F1 6.50 Tf ET BT /F1 4.22 Tf ET q 0 0 0 rg BT 49.50 366.20 Td (\(3\)) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 54.43 363.25 Td ( Contractual interest rate is the stated interest rate on the face of the loan. ) Tj ET Q q 0 0 0 rg BT 247.01 363.25 Td (Annualized ef) Tj ET Q q 0 0 0 rg BT 283.53 363.25 Td (fective interest rate is calculated as the actual interest income recognized in 2015, using the interest ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 49.50 355.45 Td (method, annualized and divided by the average amortized cost basis of the investment during 2015. ) Tj ET Q q 0 0 0 rg BT 311.13 355.45 Td (The contractual interest rates and annualized ef) Tj ET Q q 0 0 0 rg BT 433.73 355.45 Td (fective interest rates presented are as of ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 537.86 355.45 Td (June 30, ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 49.50 347.65 Td (2015) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 62.50 347.65 Td (. ) Tj ET Q BT /F1 6.50 Tf ET BT /F1 4.22 Tf ET q 0 0 0 rg BT 49.50 339.80 Td (\(4\)) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 54.43 336.85 Td ( ) Tj ET Q q 0 0 0 rg BT 55.93 336.85 Td (The Company had recorded an asset-specific loan loss reserve against this investment as of ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 294.57 336.85 Td (June 30, 2015) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 330.86 336.85 Td (. See “—Reserve for Loan Losses.”) Tj ET Q BT /F1 6.50 Tf ET BT /F1 4.22 Tf ET q 0 0 0 rg BT 49.50 329.00 Td (\(5\)) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 54.43 326.05 Td ( ) Tj ET Q q 0 0 0 rg BT 55.93 326.05 Td (The borrower under this note is a wholly owned subsidiary of the Irvine Company) Tj ET Q q 0 0 0 rg BT 269.43 326.05 Td (. Donald Bren, who is the brother of Peter Bren \(one of the Company’) Tj ET Q q 0 0 0 rg BT 452.84 326.05 Td (s executive of) Tj ET Q q 0 0 0 rg BT 488.82 326.05 Td (ficers and sponsors\), is the ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 49.50 318.25 Td (chairman of the Irvine Company) Tj ET Q q 0 0 0 rg BT 133.91 318.25 Td (. During the ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 168.40 318.25 Td (six) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 175.98 318.25 Td ( months ended ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 215.52 318.25 Td (June 30, 2015) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 251.81 318.25 Td (, the Company recognized ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 321.66 318.25 Td ($1.0 million) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 353.44 318.25 Td ( of interest income related to its investment in this loan.) Tj ET Q BT /F1 6.50 Tf ET BT /F1 4.22 Tf ET q 0 0 0 rg BT 49.50 310.40 Td (\(6\)) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 54.43 307.45 Td ( See “—Reserve for Loan Losses.”) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 283.45 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 283.45 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 283.45 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.21 283.45 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.80 283.45 Td (, interest receivable from real estate loans receivable was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.24 283.45 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.13 283.45 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.45 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 271.45 Td (, respectively) Tj ET Q q 0 0 0 rg BT 151.05 271.45 Td (, and is included in rents and other receivables.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 253.45 Td (The following summarizes the activity related to real estate loans receivable for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.20 253.45 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.87 253.45 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.69 253.45 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.52 253.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.45 Td (\(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 224.95 426.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 224.95 87.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 198.95 426.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 198.95 87.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 172.95 426.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 172.95 87.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 172.95000000000005 m 563 172.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 160.95000000000005 m 563 160.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 158.95000000000005 m 563 158.95000000000005 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 216.20 Td (Real estate loans receivable, net - December 31, 2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.50 216.20 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 216.20 Td (28,922) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 203.20 Td (Principal repayments received on real estate loans receivable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 203.20 Td (\(78) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 203.20 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 190.20 Td (Accretion of discounts on purchased real estate loans receivable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 190.20 Td (506) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 177.20 Td (Amortization of origination fees and costs on purchased and originated real estate loans receivable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 177.20 Td (\(15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 177.20 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 164.20 Td (Real estate loans receivable, net - June 30, 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.50 164.20 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 164.20 Td (29,335) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 35 0 obj <>] /Rotate 0 /Contents 36 0 R>> endobj 36 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.61 632.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.59 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.03 632.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.70 632.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.53 632.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.36 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.80 632.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.80 632.10 Td (, interest income from real estate loans receivable consisted of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 577.60 241.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 577.60 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 577.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 577.60 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 577.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 577.60 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 577.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 577.60 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 551.60 241.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 551.60 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 551.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 551.60 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 551.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 551.60 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 551.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 551.60 65.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 590.6 m 356 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 590.6 m 360 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 590.6 m 425 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 590.6 m 494 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 590.6 m 498 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 590.6 m 563 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 590.6 m 356 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 577.6 m 356 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 590.6 m 360 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 590.6 m 425 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 577.6 m 425 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 590.6 m 494 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 577.6 m 494 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 590.6 m 498 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 590.6 m 563 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 577.6 m 563 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 577.6 m 356 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 577.6 m 425 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 577.6 m 494 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 577.6 m 563 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 538.6 m 356 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 538.6 m 425 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 538.6 m 494 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 538.6 m 563 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 538.6 m 356 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 526.6 m 356 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 524.6 m 356 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 538.6 m 425 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 526.6 m 425 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 524.6 m 425 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 526.6 m 494 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 524.6 m 494 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 526.6 m 563 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 524.6 m 563 524.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 594.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 305.85 594.83 Td (Three Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.70 594.83 Td (Six Months Ended June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 581.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 315.00 581.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.00 581.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 581.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 581.83 Td (2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 568.85 Td (Contractual interest income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 568.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 340.80 568.85 Td (491) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.50 568.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.80 568.85 Td (558) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 568.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.80 568.85 Td (976) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 568.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 568.85 Td (1,111) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 555.85 Td (Interest accretion) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 340.80 555.85 Td (258) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.80 555.85 Td (265) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.80 555.85 Td (506) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 555.85 Td (522) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 542.85 Td (Amortization of origination fees and costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 346.10 542.85 Td (\(8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.80 542.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.10 542.85 Td (\(9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.80 542.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.10 542.85 Td (\(15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.80 542.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 542.85 Td (\(18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 542.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 529.85 Td (Interest income from real estate loans receivable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 529.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 340.80 529.85 Td (741) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.50 529.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.80 529.85 Td (814) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 529.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 529.85 Td (1,467) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 529.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 529.85 Td (1,615) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 502.10 Td (The Company generally recognizes income on impaired loans on either a cash basis, where interest income is only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (recorded when received in cash, or on a cost-recovery basis, where all cash receipts are applied against the carrying value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (loan. ) Tj ET Q q 0 0 0 rg BT 74.04 478.10 Td (The Company will resume the accrual of interest if it determines the collection of interest according to the contractual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (terms of the loan is probable. ) Tj ET Q q 0 0 0 rg BT 170.96 466.10 Td (The Company considers the collectibility of the loan’) Tj ET Q q 0 0 0 rg BT 383.96 466.10 Td (s principal balance in determining whether ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (to recognize income on impaired loans on a cash basis or a cost-recovery basis. Beginning in July 2014, interest income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (received on the Sandmar Mezzanine Loan was recorded on a cost-recovery basis. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.46 442.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.13 442.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.96 442.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.79 442.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (the Company recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.97 430.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.86 430.10 Td ( of interest income related to the Sandmar Mezzanine Loan, which has an asset-specific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (reserve. ) Tj ET Q q 0 0 0 rg BT 85.69 418.10 Td (The Company did not recognize any interest income related to the Sandmar Mezzanine Loan during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.32 418.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.99 418.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 406.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 406.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 388.10 Td (Reserve for) Tj ET Q q 0 0 0 rg BT 98.46 388.10 Td ( Loan Losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 370.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 370.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 370.10 Td (, the total reserve for loan losses consisted of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.95 370.10 Td ($4.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.84 370.10 Td ( of asset-specific reserves related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (Sandmar Mezzanine Loan, which had an amortized cost basis of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.69 358.10 Td ($5.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.58 358.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 340.10 Td (The Company did not record a provision for loan loss reserves during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.27 340.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.94 340.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.76 340.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.59 340.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.92 340.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.92 340.10 Td (. ) Tj ET Q q 0 0 0 rg BT 537.87 340.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 328.10 Td (, the borrower under the Sandmar Mezzanine Loan was delinquent and the Company will recognize income on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 316.10 Td (this loan on a cost-recovery basis.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 292.10 Td (6. ) Tj ET Q q 0 0 0 rg BT 67.50 292.10 Td (REAL) Tj ET Q q 0 0 0 rg BT 94.73 292.10 Td ( EST) Tj ET Q q 0 0 0 rg BT 115.39 292.10 Td (A) Tj ET Q q 0 0 0 rg BT 121.87 292.10 Td (TE HELD FOR SALE ) Tj ET Q q 0 0 0 rg BT 220.23 292.10 Td (AND DISCONTINUED OPERA) Tj ET Q q 0 0 0 rg BT 358.95 292.10 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 274.10 Td (In accordance with ) Tj ET Q q 0 0 0 rg BT 151.52 274.10 Td (ASU No. 2014-08, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 229.57 274.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 239.20 274.10 Td (esentation of Financial Statements \(T) Tj ET Q q 0 0 0 rg BT 388.27 274.10 Td (opic 205\) and Pr) Tj ET Q q 0 0 0 rg BT 455.94 274.10 Td (operty) Tj ET Q q 0 0 0 rg BT 480.94 274.10 Td (, Plant, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (Equipment \(T) Tj ET Q q 0 0 0 rg BT 103.30 262.10 Td (opic 360\): Reporting Discontinued Operations and Disclosur) Tj ET Q q 0 0 0 rg BT 349.02 262.10 Td (es of Disposals of Components of an Entity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.52 262.10 Td ( \(“ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (No. 2014-08”\), operating results of properties that are classified as held for sale in the ordinary course of business on or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (subsequent to January 1, 2014 would generally be included in continuing operations on the Company’) Tj ET Q q 0 0 0 rg BT 457.48 238.10 Td (s consolidated statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (of operations. Operating results of properties that were classified as held for sale in financial statements issued for the reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (periods prior to January 1, 2014 will remain in discontinued operations on the Company’) Tj ET Q q 0 0 0 rg BT 404.99 214.10 Td (s consolidated statement of operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (Prior to the adoption of ) Tj ET Q q 0 0 0 rg BT 144.77 202.10 Td (ASU No. 2014-08, the operations of properties held for sale or to be disposed of and the aggregate net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (gains recognized upon their disposition were presented as discontinued operations in the accompanying consolidated statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (of operations for all periods presented. During the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.53 178.10 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.11 178.10 Td (, the Company disposed of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.54 178.10 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.54 178.10 Td ( properties \(of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.44 166.10 Td (1) Tj ET Q q 0 0 0 rg BT 81.07 166.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.07 166.10 Td ( were GKK Properties\), transferred a portfolio of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.61 166.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.15 166.10 Td ( GKK Properties to the lender in satisfaction of the debt and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (other obligations due under the BOA) Tj ET Q q 0 0 0 rg BT 196.98 154.10 Td ( ) Tj ET Q q 0 0 0 rg BT 199.29 154.10 Td (W) Tj ET Q q 0 0 0 rg BT 208.33 154.10 Td (indsor Mortgage Portfolio, terminated its leasehold interest in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.45 154.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.43 154.10 Td ( GKK Properties and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (transferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.31 142.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.31 142.10 Td ( GKK Properties to the lenders in connection with foreclosure proceedings. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.16 142.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.83 142.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 130.10 Td (, the Company disposed of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.76 130.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.43 130.10 Td ( properties \(of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.52 130.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.18 130.10 Td ( were GKK Properties\) and terminated its leasehold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (interest in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.71 118.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.70 118.10 Td ( GKK Properties. ) Tj ET Q q 0 0 0 rg BT 185.86 118.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.30 118.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.13 118.10 Td (, the Company did not own any properties that were classified as held for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (sale.) Tj ET Q endstream endobj 37 0 obj <>] /Rotate 0 /Contents 38 0 R>> endobj 38 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (The following summary presents the major components of assets and liabilities related to real estate held for sale as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.77 620.10 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.35 620.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 590.60 309.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 590.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 590.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 590.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 564.60 309.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 564.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 564.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 564.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 538.60 309.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 538.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 538.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 538.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 512.60 309.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 512.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 512.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 512.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 486.60 309.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 486.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 486.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 486.60 100.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 590.6 m 459 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 590.6 m 563 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 551.6 m 459 551.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 551.6 m 563 551.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 525.6 m 459 525.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 525.6 m 563 525.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 513.6 m 459 513.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 511.6 m 459 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 513.6 m 563 513.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 511.6 m 563 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 473.6 m 459 473.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 473.6 m 563 473.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 461.6 m 459 461.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 459.6 m 459 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 461.6 m 563 461.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 459.6 m 563 459.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 594.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.25 594.83 Td (June 30, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.25 594.83 Td (December 31, 2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 581.85 Td (Assets related to real estate held for sale) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 568.85 Td (Total real estate, at cost and net of impairment charges) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.50 568.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 568.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.50 568.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 568.85 Td (166,715) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 555.85 Td (Accumulated depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 555.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 535.10 555.85 Td (\(18,361) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 555.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 542.85 Td (Real estate held for sale, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 542.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 542.85 Td (148,354) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 529.85 Td (Other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 529.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 529.85 Td (10,462) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 516.85 Td (Total assets related to real estate held for sale) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.50 516.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 516.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.50 516.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 516.85 Td (158,816) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 503.85 Td (Liabilities related to real estate held for sale) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 490.85 Td (Notes payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 490.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 490.85 Td (79,969) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 477.85 Td (Other liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 477.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 477.85 Td (3,087) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 464.85 Td (Total liabilities related to real estate held for sale) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.50 464.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 464.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.50 464.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 464.85 Td (83,056) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 437.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 437.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.72 437.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.54 437.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.37 437.10 Td (, the Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.65 437.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.65 437.10 Td ( historical real estate properties and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.03 437.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.02 437.10 Td ( GKK ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.10 Td (Properties, which properties were not classified as held for sale in financial statements issued for the reporting periods prior to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.10 Td (January 1, 2014. During the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.23 413.10 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.81 413.10 Td (, the Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.09 413.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.75 413.10 Td ( historical real estate properties and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.13 413.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.13 413.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.10 Td (GKK Properties, disposed of a portfolio of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.81 401.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.35 401.10 Td ( properties in connection with a deed-in-lieu of foreclosure, and transferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.57 401.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.57 401.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.10 Td (GKK Properties to the lenders in connection with foreclosure proceedings, which properties were not classified as held for sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.10 Td (in financial statements issued for the reporting periods prior to January 1, 2014. In accordance with ) Tj ET Q q 0 0 0 rg BT 450.77 377.10 Td (ASU No. 2014-08, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td (operations of these properties are included in continuing operations on the Company’) Tj ET Q q 0 0 0 rg BT 390.25 365.10 Td (s consolidated statements of operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (The following table summarizes certain revenues and expenses related to all of these properties, which were included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (continuing operations \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 298.60 257.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.00 298.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 298.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 298.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 298.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 298.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 298.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 298.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 298.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 272.60 257.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.00 272.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 272.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 272.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 272.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 272.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 272.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 272.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 272.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 246.60 257.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.00 246.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 246.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 246.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 246.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 246.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 246.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 246.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 246.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 220.60 257.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.00 220.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 220.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 220.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 220.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 220.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 220.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 220.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 220.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 194.60 257.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.00 194.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 194.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 194.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 194.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 194.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 194.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 194.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 194.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 168.60 257.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.00 168.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 168.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 168.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 168.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 168.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 168.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 168.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 168.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 142.60 257.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.00 142.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 142.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 142.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 142.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 142.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 142.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 142.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 142.60 60.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 311.6 m 371 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 311.6 m 375 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 311.6 m 435 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 311.6 m 499 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 311.6 m 503 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 311.6 m 563 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 311.6 m 371 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 298.6 m 371 298.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 311.6 m 375 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 311.6 m 435 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 298.6 m 435 298.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 311.6 m 499 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 298.6 m 499 298.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 311.6 m 503 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 311.6 m 563 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 298.6 m 563 298.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 259.6 m 371 259.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 259.6 m 435 259.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 259.6 m 371 259.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 246.60000000000002 m 371 246.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 259.6 m 435 259.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 246.60000000000002 m 435 246.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 259.6 m 499 259.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 246.60000000000002 m 499 246.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 259.6 m 563 259.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 246.60000000000002 m 563 246.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 142.60000000000002 m 371 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 142.60000000000002 m 435 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 142.60000000000002 m 371 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 129.60000000000002 m 371 129.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 142.60000000000002 m 435 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 129.60000000000002 m 435 129.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 142.60000000000002 m 499 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 129.60000000000002 m 499 129.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 142.60000000000002 m 563 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 129.60000000000002 m 563 129.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 315.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 320.85 315.83 Td (Three Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.70 315.83 Td (Six Months Ended June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 302.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 332.50 302.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.50 302.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.50 302.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.50 302.83 Td (2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 289.85 Td (Revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 276.85 Td (Rental income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.50 276.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 349.80 276.85 Td (1,518) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.50 276.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 276.85 Td (7,880) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.50 276.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 276.85 Td (6,280) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.50 276.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 276.85 Td (15,773) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 263.85 Td (Tenant reimbursements and other operating income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 263.85 Td (37) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 263.85 Td (1,436) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 263.85 Td (1,286) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 263.85 Td (3,191) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 250.85 Td (Total Revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 349.80 250.85 Td (1,555) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 250.85 Td (9,316) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 250.85 Td (7,566) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 250.85 Td (18,964) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 237.85 Td (Expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 224.85 Td (Operating, maintenance, and management) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 224.85 Td (389) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 224.85 Td (2,621) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 224.85 Td (2,753) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 224.85 Td (5,229) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 211.85 Td (Real estate taxes and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 211.85 Td (89) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 211.85 Td (1,279) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 211.85 Td (682) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 211.85 Td (2,419) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 198.85 Td (Asset management fees to affiliate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 198.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.80 198.85 Td (193) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 198.85 Td (98) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 198.85 Td (388) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 185.85 Td (General and administrative expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 185.85 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 185.85 Td (13) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 185.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 185.85 Td (20) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 172.85 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 172.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 172.85 Td (3,446) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 172.85 Td (1,500) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 172.85 Td (6,885) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 159.85 Td (Interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 159.85 Td (402) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 159.85 Td (3,714) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 159.85 Td (1,802) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 159.85 Td (7,442) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 146.85 Td (Impairment of real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 146.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.80 146.85 Td (939) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 146.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 146.85 Td (2,196) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 133.85 Td (Total expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 133.85 Td (882) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.80 133.85 Td (12,205) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 133.85 Td (6,835) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 133.85 Td (24,579) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 39 0 obj <>] /Rotate 0 /Contents 40 0 R>> endobj 40 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (18) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Discontinued Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 617.25 Td (The following table summarizes operating income from discontinued operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.90 617.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.89 617.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.33 617.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.00 617.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 605.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.77 605.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.77 605.25 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 562.75 261.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 562.75 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 562.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 562.75 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 562.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 562.75 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 562.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 562.75 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 536.75 261.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 536.75 60.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 536.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 536.75 60.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 536.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 536.75 60.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 536.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 536.75 60.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 502.75 261.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 502.75 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 502.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 502.75 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 502.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 502.75 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 502.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 502.75 60.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 575.75 m 371 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 575.75 m 375 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 575.75 m 435 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 575.75 m 499 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 575.75 m 503 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 575.75 m 563 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 575.75 m 371 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 562.75 m 371 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 575.75 m 375 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 562.75 m 375 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 575.75 m 435 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 562.75 m 435 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 575.75 m 499 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 562.75 m 499 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 575.75 m 503 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 575.75 m 563 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 562.75 m 563 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 562.75 m 371 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 562.75 m 435 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 562.75 m 499 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 562.75 m 503 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 562.75 m 563 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 536.75 m 371 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 536.75 m 435 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 536.75 m 371 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 536.75 m 435 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 536.75 m 499 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 536.75 m 563 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 489.75 m 371 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 489.75 m 435 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 489.75 m 499 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 489.75 m 563 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 489.75 m 371 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 477.75 m 371 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 475.75 m 371 475.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 489.75 m 375 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 477.75 m 375 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 475.75 m 375 475.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 489.75 m 435 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 477.75 m 435 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 475.75 m 435 475.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 489.75 m 499 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 477.75 m 499 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 475.75 m 499 475.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 489.75 m 503 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 477.75 m 503 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 475.75 m 503 475.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 489.75 m 563 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 477.75 m 563 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 475.75 m 563 475.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 580.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 320.85 579.98 Td (Three Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.70 579.98 Td (Six Months Ended June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 567.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 332.50 566.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.50 566.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.50 566.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.50 566.98 Td (2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 554.00 Td (Total revenues and other income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.50 554.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 554.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.50 554.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.80 554.00 Td (195) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.50 554.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 554.00 Td (45) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.50 554.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 554.00 Td (886) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 541.00 Td (Total expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 541.00 Td (7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.80 541.00 Td (195) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.80 541.00 Td (7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 541.00 Td (652) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 528.00 Td (\(Loss\) income from discontinued operations before gain on sales of real) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 67.50 520.00 Td (estate, net, and impairment charge) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.10 520.00 Td (\(7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 520.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 520.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 520.00 Td (38) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 520.00 Td (234) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 507.00 Td (Gain on sales of real estate, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 507.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 507.00 Td (89) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 507.00 Td (124) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 507.00 Td (3,006) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 494.00 Td (Impairment charge) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 494.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.10 494.00 Td (\(81) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.80 494.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 494.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 494.00 Td (\(81) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 494.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 481.00 Td (\(Loss\) income from discontinued operations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.50 481.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.10 481.00 Td (\(7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 481.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.50 481.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 481.00 Td (8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.50 481.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 481.00 Td (162) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.50 481.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 481.00 Td (3,159) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 453.25 Td (Significant T) Tj ET Q q 0 0 0 rg BT 103.30 453.25 Td (ransactions) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 438.25 Td (101 Independence) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 423.25 Td (On May 1, 2015, the Company) Tj ET Q q 0 0 0 rg BT 197.01 423.25 Td (, through an indirect wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 380.49 423.25 Td (, sold an of) Tj ET Q q 0 0 0 rg BT 424.75 423.25 Td (fice building containing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.78 423.25 Td (565,694) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.28 423.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.25 Td (rentable square feet located in Charlotte, North Carolina \(“101 Independence”\) to a purchaser unaf) Tj ET Q q 0 0 0 rg BT 444.14 411.25 Td (filiated with the Company or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.25 Td (the ) Tj ET Q q 0 0 0 rg BT 63.67 399.25 Td (Advisor for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.55 399.25 Td ($107.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.44 399.25 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.27 399.25 Td ($106.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.16 399.25 Td ( net of concessions and credits. ) Tj ET Q q 0 0 0 rg BT 375.39 399.25 Td (The carrying value of 101 Independence as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.25 Td (the date of sale was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.30 387.25 Td ($69.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.19 387.25 Td (, which was net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.73 387.25 Td ($13.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.62 387.25 Td ( of accumulated depreciation and amortization. ) Tj ET Q q 0 0 0 rg BT 506.69 387.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.25 Td (Company recognized a gain on the disposition of 101 Independence of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.96 375.25 Td ($35.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.85 375.25 Td ( after fees and expenses.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 351.25 Td (7. ) Tj ET Q q 0 0 0 rg BT 67.50 351.25 Td (FORECLOSED REAL) Tj ET Q q 0 0 0 rg BT 166.13 351.25 Td ( EST) Tj ET Q q 0 0 0 rg BT 186.79 351.25 Td (A) Tj ET Q q 0 0 0 rg BT 193.27 351.25 Td (TE HELD FOR SALE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 333.25 Td (In 2006 and 2007, the Company originally made ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.41 333.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.39 333.25 Td ( debt investments \(collectively) Tj ET Q q 0 0 0 rg BT 412.21 333.25 Td (, the “T) Tj ET Q q 0 0 0 rg BT 442.12 333.25 Td (ribeca Loans”\) related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.25 Td (conversion of an eight-story loft building into a 10-story condominium building with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.68 321.25 Td (62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.68 321.25 Td ( units \(the “T) Tj ET Q q 0 0 0 rg BT 454.37 321.25 Td (ribeca Building”\) located ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.25 Td (at 415 Greenwich Street in New ) Tj ET Q q 0 0 0 rg BT 180.20 309.25 Td (Y) Tj ET Q q 0 0 0 rg BT 186.42 309.25 Td (ork, New ) Tj ET Q q 0 0 0 rg BT 225.76 309.25 Td (Y) Tj ET Q q 0 0 0 rg BT 231.98 309.25 Td (ork. On February 19, 2010, the borrowers under the ) Tj ET Q q 0 0 0 rg BT 443.69 309.25 Td (T) Tj ET Q q 0 0 0 rg BT 449.45 309.25 Td (ribeca Loans defaulted and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.25 Td (the Company foreclosed on the ) Tj ET Q q 0 0 0 rg BT 176.79 297.25 Td (T) Tj ET Q q 0 0 0 rg BT 182.54 297.25 Td (ribeca Building by exercising its right to accept ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.71 297.25 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.04 297.25 Td ( of the ownership interest of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.25 Td (borrowers. ) Tj ET Q q 0 0 0 rg BT 97.36 285.25 Td (The Company acquired the remaining unsold condominium units of the ) Tj ET Q q 0 0 0 rg BT 386.01 285.25 Td (T) Tj ET Q q 0 0 0 rg BT 391.77 285.25 Td (ribeca Building \(the residential, retail and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.25 Td (parking space condominium units transferred to the Company are, collectively) Tj ET Q q 0 0 0 rg BT 362.64 273.25 Td (, the “Units” and, individually) Tj ET Q q 0 0 0 rg BT 482.53 273.25 Td (, each is a “Unit”\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.25 Td (and assumed the project liabilities. ) Tj ET Q q 0 0 0 rg BT 192.89 261.25 Td (The Company recorded the ) Tj ET Q q 0 0 0 rg BT 304.34 261.25 Td (T) Tj ET Q q 0 0 0 rg BT 310.10 261.25 Td (ribeca Building at fair value using a discounted cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.25 Td (valuation model based on the net realizable value \(expected sales price less estimated costs to sell the unsold Units\) of the real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.25 Td (estate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 219.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 219.25 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.53 219.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 237.91 219.25 Td (s investment in the ) Tj ET Q q 0 0 0 rg BT 315.50 219.25 Td (T) Tj ET Q q 0 0 0 rg BT 321.25 219.25 Td (ribeca Building consisted of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.23 219.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.23 219.25 Td ( Units with a carrying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.25 Td (value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.49 207.25 Td ($12.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.38 207.25 Td ( and is presented as foreclosed real estate held for sale on the consolidated balance sheet. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.33 207.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.00 207.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.25 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 195.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 195.25 Td (, the Company sold the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.69 195.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.69 195.25 Td ( Units and recognized a gain on sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.69 195.25 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.58 195.25 Td ( \(which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.25 Td (gain on sale has been reduced by disposition fees to the ) Tj ET Q q 0 0 0 rg BT 273.05 183.25 Td (Advisor of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.61 183.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.50 183.25 Td ( related to these two Units\) and recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.25 Td (expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.93 171.25 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.82 171.25 Td ( related to foreclosed real estate held for sale. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.67 171.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.34 171.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.16 171.25 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.99 171.25 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.25 Td (Company did not sell any Units of the ) Tj ET Q q 0 0 0 rg BT 204.30 159.25 Td (T) Tj ET Q q 0 0 0 rg BT 210.06 159.25 Td (ribeca Building and recorded expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.33 159.25 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.22 159.25 Td ( related to foreclosed real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.25 Td (held for sale.) Tj ET Q endstream endobj 41 0 obj <>] /Rotate 0 /Contents 42 0 R>> endobj 42 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (8. ) Tj ET Q q 0 0 0 rg BT 67.50 632.25 Td (NOTES P) Tj ET Q q 0 0 0 rg BT 109.27 632.25 Td (A) Tj ET Q q 0 0 0 rg BT 115.57 632.25 Td (Y) Tj ET Q q 0 0 0 rg BT 121.88 632.25 Td (ABLE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 614.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 614.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 614.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.21 614.25 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.80 614.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 313.18 614.25 Td (s notes payable, including notes payable related to real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (held for sale, consisted of the following \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 562.75 156.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.00 562.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.00 562.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 562.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 562.75 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 562.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 562.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 562.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 562.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 562.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 562.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 536.75 156.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.00 536.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.00 536.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 536.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 536.75 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 536.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 536.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 536.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 536.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 536.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 536.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 510.75 156.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.00 510.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.00 510.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 510.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 510.75 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 510.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 510.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 510.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 510.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 510.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 510.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 478.75 156.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.00 478.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.00 478.75 65.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 478.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 478.75 64.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 478.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 478.75 73.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 478.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 478.75 73.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 478.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 478.75 62.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 446.75 156.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.00 446.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.00 446.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 446.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 446.75 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 446.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 446.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 446.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 446.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 446.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 446.75 62.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 420.75 156.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.00 420.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.00 420.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 420.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 420.75 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 420.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 420.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 420.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 420.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 420.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 420.75 62.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 562.75 m 206 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210 562.75 m 275 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 562.75 m 343 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 562.75 m 420 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 562.75 m 497 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 562.75 m 563 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 562.75 m 206 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210 523.75 m 275 523.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 523.75 m 343 523.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210 510.75 m 275 510.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 510.75 m 343 510.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210 459.75 m 275 459.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 459.75 m 343 459.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210 446.75 m 275 446.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 459.75 m 343 459.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 446.75 m 343 446.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 446.75 m 343 446.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210 420.75 m 275 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 420.75 m 343 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210 408.75 m 275 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210 406.75 m 275 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 408.75 m 343 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 406.75 m 343 406.75 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 52.50 566.81 Td (Loan Type) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 217.20 573.81 Td (Book ) Tj ET Q q 0 0 0 rg BT 234.39 573.81 Td (V) Tj ET Q q 0 0 0 rg BT 238.80 573.81 Td (alue as of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 221.65 566.81 Td (June 30, 2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 285.70 573.81 Td (Book ) Tj ET Q q 0 0 0 rg BT 302.89 573.81 Td (V) Tj ET Q q 0 0 0 rg BT 307.30 573.81 Td (alue as of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 282.25 566.81 Td (December) Tj ET Q q 0 0 0 rg BT 312.44 566.81 Td ( 31, 2014) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 364.90 580.81 Td (Contractual) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 354.35 573.81 Td (Inter) Tj ET Q q 0 0 0 rg BT 369.39 573.81 Td (est Rates as of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 359.15 566.81 Td (June 30, 2015 ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 401.54 569.98 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 432.45 580.81 Td (W) Tj ET Q q 0 0 0 rg BT 439.06 580.81 Td (eighted-A) Tj ET Q q 0 0 0 rg BT 467.71 580.81 Td (verage) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 431.35 573.81 Td (Inter) Tj ET Q q 0 0 0 rg BT 446.39 573.81 Td (est Rates as of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 436.15 566.81 Td (June 30, 2015 ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 478.54 569.98 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 503.95 580.81 Td (W) Tj ET Q q 0 0 0 rg BT 510.56 580.81 Td (eighted-A) Tj ET Q q 0 0 0 rg BT 539.21 580.81 Td (verage) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 506.30 573.81 Td (Remaining ) Tj ET Q q 0 0 0 rg BT 540.59 573.81 Td (T) Tj ET Q q 0 0 0 rg BT 544.62 573.81 Td (erm) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 515.90 566.81 Td (in ) Tj ET Q q 0 0 0 rg BT 523.23 566.81 Td (Y) Tj ET Q q 0 0 0 rg BT 527.51 566.81 Td (ears ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 541.70 569.98 Td (\(2\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 52.50 553.79 Td (Fixed Rate) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 540.80 Td (Mortgage loans) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 212.50 540.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 252.90 540.80 Td (62,200) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 281.50 540.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 320.90 540.80 Td (62,200) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 375.70 540.80 Td (5.9%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 452.70 540.80 Td (5.9%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.10 540.80 Td (1.3) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 527.80 Td (GKK Properties mortgage loans ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 144.26 530.97 Td (\(3\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 249.40 527.80 Td (312,090) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 317.40 527.80 Td (381,179) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 365.50 527.80 Td (5.3% - 6.8%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 452.70 527.80 Td (5.9%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.10 527.80 Td (3.9) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 249.40 514.80 Td (374,290) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 317.40 514.80 Td (443,379) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 52.50 501.79 Td (Variable Rate) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 482.80 Td (Mortgage loans) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 249.40 482.80 Td (164,131) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 317.40 482.80 Td (181,249) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 352.80 489.80 Td (One-month LIBOR +) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 373.95 482.80 Td (1.80%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 452.70 482.80 Td (2.0%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.10 482.80 Td (0.5) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 463.80 Td (GKK Properties mortgage loan ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 141.53 466.97 Td (\(4\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 265.15 463.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 320.90 463.80 Td (40,000) Tj ET Q BT /F1 4.55 Tf ET q 0 0 0 rg BT 380.30 467.37 Td (\(4\)) Tj ET Q BT /F1 4.55 Tf ET q 0 0 0 rg BT 457.30 467.37 Td (\(4\)) Tj ET Q BT /F1 4.55 Tf ET q 0 0 0 rg BT 528.80 467.37 Td (\(4\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 249.40 450.80 Td (164,131) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 317.40 450.80 Td (221,249) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 58.50 437.80 Td (Total notes payable principal outstanding) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 249.40 437.80 Td (538,421) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 317.40 437.80 Td (664,628) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.50 424.80 Td (Discount on notes payable, net) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 156.62 427.97 Td ( \(5\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 254.05 424.80 Td (\(3,677) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 272.15 424.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 322.05 424.85 Td (\(6,530) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 340.15 424.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 58.50 411.80 Td (Total notes payable, net ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 212.50 411.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 249.40 411.80 Td (534,744) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 281.50 411.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 317.40 411.80 Td (658,098) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.25 Td (_____________________) Tj ET Q BT /F1 6.50 Tf ET BT /F1 4.22 Tf ET q 0 0 0 rg BT 49.50 388.40 Td (\(1\)) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 54.43 385.45 Td ( Contractual interest rates as of ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 136.73 385.45 Td (June 30, 2015) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 173.02 385.45 Td ( represent the range of interest rates in ef) Tj ET Q q 0 0 0 rg BT 279.03 385.45 Td (fect under these loans as of ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 351.23 385.45 Td (June 30, 2015) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 387.52 385.45 Td (. ) Tj ET Q q 0 0 0 rg BT 392.27 385.45 Td (W) Tj ET Q q 0 0 0 rg BT 397.89 385.45 Td (eighted-average interest rates as of ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 489.75 385.45 Td (June 30, 2015) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 526.04 385.45 Td ( are ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 49.50 377.65 Td (calculated as the actual interest rates in ef) Tj ET Q q 0 0 0 rg BT 157.49 377.65 Td (fect under these loans as of ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 229.69 377.65 Td (June 30, 2015) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 265.98 377.65 Td ( \(consisting of the contractual interest rates\), using interest rate indices as of ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 465.25 377.65 Td (June 30, 2015) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 501.54 377.65 Td (, where applicable.) Tj ET Q BT /F1 6.50 Tf ET BT /F1 4.22 Tf ET q 0 0 0 rg BT 49.50 369.80 Td (\(2\)) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 54.43 366.85 Td ( ) Tj ET Q q 0 0 0 rg BT 55.93 366.85 Td (W) Tj ET Q q 0 0 0 rg BT 61.55 366.85 Td (eighted-average remaining term in years represents the initial maturity dates or the maturity dates as extended as of ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 362.62 366.85 Td (June 30, 2015) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 398.91 366.85 Td (; subject to certain conditions, the maturity dates of certain ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 49.50 359.05 Td (loans may be further extended.) Tj ET Q BT /F1 6.50 Tf ET BT /F1 4.22 Tf ET q 0 0 0 rg BT 49.50 351.20 Td (\(3\) ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 56.54 348.25 Td ( On May 1, 2015, in connection with the disposition of 101 Independence, the Company repaid the entire ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 331.83 348.25 Td ($65.3 million) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 366.86 348.25 Td ( principal balance and all other sums due under a mortgage loan secured ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 49.50 340.45 Td (by 101 Independence, including a prepayment premium of ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 203.47 340.45 Td ($4.4 million) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 235.25 340.45 Td (, and wrote-of) Tj ET Q q 0 0 0 rg BT 273.40 340.45 Td (f an unamortized discount on note payable of ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 392.53 340.45 Td ($2.0 million) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 424.31 340.45 Td (. ) Tj ET Q BT /F1 6.50 Tf ET BT /F1 4.22 Tf ET q 0 0 0 rg BT 49.50 332.60 Td (\(4\) ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 55.48 329.65 Td ( On May 15, 2015, the Company repaid the entire outstanding principal balance due and all other sums due under this loan. ) Tj ET Q BT /F1 6.50 Tf ET BT /F1 4.22 Tf ET q 0 0 0 rg BT 49.50 321.80 Td (\(5\)) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 54.43 318.85 Td ( Represents the unamortized discounts and premiums on notes payable due to the above- and below-market interest rates when the loans were assumed. ) Tj ET Q q 0 0 0 rg BT 451.97 318.85 Td (The discounts and premiums are ) Tj ET Q BT /F1 6.50 Tf ET q 0 0 0 rg BT 49.50 311.05 Td (amortized over the remaining life of the respective loan.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 287.05 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 287.05 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 287.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.71 287.05 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.30 287.05 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 311.68 287.05 Td (s deferred financing costs were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.57 287.05 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.46 287.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.90 287.05 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.79 287.05 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.05 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 275.05 Td (, net of amortization. ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 183.25 275.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 185.75 275.05 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.29 275.05 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.28 275.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.72 275.05 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.39 275.05 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.21 275.05 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.04 275.05 Td (, the Company incurred interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.05 Td (expense, net of discontinued operations, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.34 263.05 Td ($8.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.23 263.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.67 263.05 Td ($16.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.56 263.05 Td (, respectively) Tj ET Q q 0 0 0 rg BT 398.23 263.05 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.77 263.05 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.76 263.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.20 263.05 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.87 263.05 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.05 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 251.05 Td (, the Company incurred interest expense, net of discontinued operations, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.03 251.05 Td ($13.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.92 251.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.36 251.05 Td ($26.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.25 251.05 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.05 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 239.05 Td (. Included in interest expense was: \(i\) the amortization of deferred financing costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.82 239.05 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.71 239.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.15 239.05 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.04 239.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.05 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 227.05 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.36 227.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.80 227.05 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.47 227.05 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.30 227.05 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.13 227.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.56 227.05 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.46 227.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.89 227.05 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.79 227.05 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.16 227.05 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 227.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.59 227.05 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.26 227.05 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.08 227.05 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.05 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 215.05 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.16 215.05 Td (, and \(ii\) the amortization of discounts and premiums on notes payable, which increased interest expense by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.05 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 203.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.83 203.05 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.72 203.05 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.10 203.05 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.08 203.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.52 203.05 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.19 203.05 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.02 203.05 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.85 203.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.29 203.05 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.18 203.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.62 203.05 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.51 203.05 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.88 203.05 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.87 203.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.05 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 191.05 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.11 191.05 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.93 191.05 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.76 191.05 Td (, respectively) Tj ET Q q 0 0 0 rg BT 247.42 191.05 Td (. ) Tj ET Q q 0 0 0 rg BT 254.37 191.05 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.82 191.05 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.65 191.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.08 191.05 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.67 191.05 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.67 191.05 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.56 191.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 191.05 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.89 191.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.05 Td (of interest was payable, respectively) Tj ET Q q 0 0 0 rg BT 194.07 179.05 Td (.) Tj ET Q endstream endobj 43 0 obj <>] /Rotate 0 /Contents 44 0 R>> endobj 44 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 620.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.16 620.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 603.60 447.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 603.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 577.60 447.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 577.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 551.60 447.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 551.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 525.60 447.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 525.60 66.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 525.6 m 562 525.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 513.6 m 562 513.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 511.6 m 562 511.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 594.85 Td (July 1, 2015 through December 31, 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 594.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 594.85 Td (5,464) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 581.85 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.80 581.85 Td (235,577) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 568.85 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.80 568.85 Td (129,175) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 555.85 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 555.85 Td (8,651) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 542.85 Td (2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.80 542.85 Td (126,044) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 529.85 Td (Thereafter) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.80 529.85 Td (33,510) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 516.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.80 516.85 Td (538,421) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 489.10 Td (The following summarizes the activity related to notes payable for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.46 489.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.13 489.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.96 489.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.79 489.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 472.60 447.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 472.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 446.60 447.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 446.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 420.60 447.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 420.60 66.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 420.6 m 563 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 408.6 m 563 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 406.6 m 563 406.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 463.85 Td (Total notes payable, net - December 31, 2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.50 463.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 463.85 Td (658,098) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 450.85 Td (Principal repayments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 531.10 450.85 Td (\(126,207) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 450.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 437.85 Td (Write-off of discount on notes payable related to sale) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 437.85 Td (1,986) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 424.85 Td (Amortization of discounts and premiums on notes payable, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 424.85 Td (867) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 411.85 Td (Total notes payable, net - June 30, 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.50 411.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 411.85 Td (534,744) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 384.10 Td (Debt Covenants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 366.10 Td (The documents evidencing the Company’) Tj ET Q q 0 0 0 rg BT 240.13 366.10 Td (s outstanding debt obligations typically require that specified loan-to-value and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (debt service coverage ratios be maintained with respect to the financed properties. ) Tj ET Q q 0 0 0 rg BT 382.15 354.10 Td (A) Tj ET Q q 0 0 0 rg BT 388.82 354.10 Td ( breach of the financial covenants in these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (documents may result in the lender imposing additional restrictions on the Company’) Tj ET Q q 0 0 0 rg BT 390.27 342.10 Td (s operations, such as restrictions on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 330.10 Td (s ability to incur additional debt, or may allow the lender to impose “cash traps” with respect to cash flow from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (property securing the loan. In addition, such a breach may constitute an event of default and the lender could require the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (Company to repay the debt immediately) Tj ET Q q 0 0 0 rg BT 209.64 306.10 Td (. If the Company fails to make such repayment in a timely manner) Tj ET Q q 0 0 0 rg BT 476.94 306.10 Td (, the lender may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (entitled to take possession of any property securing the loan. Except as described below) Tj ET Q q 0 0 0 rg BT 402.36 294.10 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.02 294.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.85 294.10 Td (, the Company was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (in compliance with these debt covenants. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 264.10 Td (BBD2 Loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 246.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 246.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 246.10 Td (, the borrower under the BBD2 Loan was out of debt service coverage compliance. ) Tj ET Q q 0 0 0 rg BT 490.05 246.10 Td (As a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (such non-compliance, the loan servicer may impose a “cash trap,” which restricts distributions to the Company to the budgeted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (property operating expenses.) Tj ET Q endstream endobj 45 0 obj <>] /Rotate 0 /Contents 46 0 R>> endobj 46 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (9. ) Tj ET Q q 0 0 0 rg BT 67.50 632.25 Td (F) Tj ET Q q 0 0 0 rg BT 72.87 632.25 Td (AIR ) Tj ET Q q 0 0 0 rg BT 93.52 632.25 Td (V) Tj ET Q q 0 0 0 rg BT 99.45 632.25 Td (ALUE DISCLOSURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 614.25 Td (Under GAAP) Tj ET Q q 0 0 0 rg BT 127.11 614.25 Td (, the Company is required to measure certain financial instruments at fair value on a recurring basis. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (addition, the Company is required to measure other financial instruments and balances at fair value on a non-recurring basis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (\(e.g., carrying value of impaired real estate loans receivable and long-lived assets\). Fair value is defined as the price that would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (measurement date. ) Tj ET Q q 0 0 0 rg BT 129.29 566.25 Td (The GAAP) Tj ET Q q 0 0 0 rg BT 174.19 566.25 Td ( fair value framework uses a three-tiered approach. Fair value measurements are classified and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (disclosed in one of the following three categories:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 536.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 536.25 Td (Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 524.25 Td (liabilities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 509.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 509.25 Td (Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 497.25 Td (markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 485.25 Td (observable in active markets; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 470.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 470.25 Td (Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 458.25 Td (significant to the fair value measurement and unobservable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 437.25 Td (The fair value for certain financial instruments is derived using a combination of market quotes, pricing models and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.25 Td (valuation techniques that involve significant management judgment. ) Tj ET Q q 0 0 0 rg BT 327.86 425.25 Td (The price transparency of financial instruments is a key ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.25 Td (determinant of the degree of judgment involved in determining the fair value of the Company’) Tj ET Q q 0 0 0 rg BT 426.61 413.25 Td (s financial instruments. Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.25 Td (instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (or consist of non-orderly trades. ) Tj ET Q q 0 0 0 rg BT 182.34 377.25 Td (The Company evaluates several factors when determining if a market is inactive or when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.25 Td (market transactions are not orderly) Tj ET Q q 0 0 0 rg BT 188.24 365.25 Td (. ) Tj ET Q q 0 0 0 rg BT 195.56 365.25 Td (The following is a summary of the methods and assumptions used by management in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.25 Td (estimating the fair value of each class of assets and liabilities for which it is practicable to estimate the fair value:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 335.25 Td (Cash and cash equivalents, r) Tj ET Q q 0 0 0 rg BT 188.95 335.25 Td (estricted cash, r) Tj ET Q q 0 0 0 rg BT 252.74 335.25 Td (ent and other r) Tj ET Q q 0 0 0 rg BT 312.08 335.25 Td (eceivables, and accounts payable and accrued liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.74 335.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.25 Td (These balances approximate their fair values due to the short maturities of these items.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 305.25 Td (Real estate loans r) Tj ET Q q 0 0 0 rg BT 147.84 305.25 Td (eceivable:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.92 305.25 Td ( ) Tj ET Q q 0 0 0 rg BT 191.24 305.25 Td (These instruments are presented in the accompanying consolidated balance sheets at their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.25 Td (amortized cost net of recorded loan loss reserves and not at fair value. ) Tj ET Q q 0 0 0 rg BT 333.93 293.25 Td (The fair values of real estate loans receivable were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.25 Td (estimated using an internal valuation model that considered the expected cash flows for the loans, underlying collateral values ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.25 Td (\(for collateral-dependent loans\) and estimated yield requirements of institutional investors for loans with similar characteristics, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.25 Td (including remaining loan term, loan-to-value, type of collateral and other credit enhancements. ) Tj ET Q q 0 0 0 rg BT 433.62 257.25 Td (The Company classifies these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.25 Td (inputs as Level 3 inputs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 227.25 Td (Notes payable:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.76 227.25 Td ( ) Tj ET Q q 0 0 0 rg BT 136.08 227.25 Td (The fair values of the Company’) Tj ET Q q 0 0 0 rg BT 265.77 227.25 Td (s notes payable are estimated using a discounted cash flow analysis based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.25 Td (on management’) Tj ET Q q 0 0 0 rg BT 115.87 215.25 Td (s estimates of current market interest rates for instruments with similar characteristics, including remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.25 Td (loan term, loan-to-value ratio, type of collateral and other credit enhancements. ) Tj ET Q q 0 0 0 rg BT 370.76 203.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 420.66 203.25 Td (, when determining the fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.25 Td (of a liability in circumstances in which a quoted price in an active market for an identical liability is not available, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.25 Td (measures fair value using \(i\) a valuation technique that uses the quoted price of the identical liability when traded as an asset or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.25 Td (quoted prices for similar liabilities when traded as assets or \(ii\) another valuation technique that is consistent with the principles ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.25 Td (of fair value measurement, such as the income approach or the market approach. ) Tj ET Q q 0 0 0 rg BT 376.40 155.25 Td (The Company classifies these inputs as Level ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.25 Td (3 inputs.) Tj ET Q endstream endobj 47 0 obj <>] /Rotate 0 /Contents 48 0 R>> endobj 48 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (The following were the face values, carrying amounts and fair values of the Company’) Tj ET Q q 0 0 0 rg BT 420.05 632.10 Td (s real estate loans receivable and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (notes payable as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.36 620.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.19 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.63 620.10 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.21 620.10 Td (, which carrying amounts generally do not approximate the fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (values \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 558.60 162.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 558.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 558.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 558.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 558.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 558.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 558.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 558.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 558.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 558.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 558.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 558.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 532.60 162.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 532.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 532.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 532.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 532.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 532.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 532.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 532.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 532.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 532.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 532.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 532.60 55.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 578.6 m 267 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 578.6 m 271 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 578.6 m 326 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 578.6 m 330 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 578.6 m 385 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 578.6 m 444 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 578.6 m 448 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 578.6 m 503 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 578.6 m 507 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 578.6 m 562 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 558.6 m 267 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 558.6 m 326 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 558.6 m 385 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 558.6 m 444 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 558.6 m 503 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 558.6 m 562 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 558.6 m 385 558.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 582.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 274.75 582.83 Td (June 30, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.75 582.83 Td (December 31, 2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 562.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 220.40 562.83 Td (Face Value ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.20 570.68 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 283.95 562.68 Td (Amount ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.15 562.83 Td (Fair Value ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 397.40 562.83 Td (Face Value ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.20 570.68 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.95 562.68 Td (Amount ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.15 562.83 Td (Fair Value ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 549.85 Td (Financial assets:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 536.85 Td (Real estate loans receivable ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 155.12 540.48 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 214.50 536.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 241.80 536.85 Td (35,887) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 536.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 300.80 536.85 Td (29,335) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.50 536.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 536.85 Td (26,763) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.50 536.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.80 536.85 Td (35,966) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 450.50 536.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 536.85 Td (28,922) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 509.50 536.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.80 536.85 Td (25,818) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 523.85 Td (Financial liabilities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 510.85 Td (Notes payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 214.50 510.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 237.75 510.85 Td (538,421) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 510.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 296.75 510.85 Td (534,744) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.50 510.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.75 510.85 Td (555,327) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.50 510.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 414.75 510.85 Td (664,628) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 450.50 510.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.75 510.85 Td (658,098) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 509.50 510.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.75 510.85 Td (688,374) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.10 Td (_____________________) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 486.50 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 483.10 Td ( Carrying amount of real estate loans receivable includes loan loss reserves.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 459.10 Td (Disclosure of the fair values of financial instruments is based on pertinent information available to the Company as of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.10 Td (period end and requires a significant amount of judgment. ) Tj ET Q q 0 0 0 rg BT 286.20 447.10 Td (The actual value of these investments could be materially dif) Tj ET Q q 0 0 0 rg BT 529.54 447.10 Td (ferent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.10 Td (from the Company’) Tj ET Q q 0 0 0 rg BT 127.82 435.10 Td (s estimate of value.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 411.10 Td (10. ) Tj ET Q q 0 0 0 rg BT 67.50 411.10 Td (RELA) Tj ET Q q 0 0 0 rg BT 94.54 411.10 Td (TED P) Tj ET Q q 0 0 0 rg BT 122.97 411.10 Td (AR) Tj ET Q q 0 0 0 rg BT 137.06 411.10 Td (TY) Tj ET Q q 0 0 0 rg BT 150.58 411.10 Td ( ) Tj ET Q q 0 0 0 rg BT 152.90 411.10 Td (TRANSACTIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 393.10 Td (The Company has entered into an ) Tj ET Q q 0 0 0 rg BT 210.13 393.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 249.30 393.10 Td (Agreement with the ) Tj ET Q q 0 0 0 rg BT 330.67 393.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 362.49 393.10 Td (, which entitles the ) Tj ET Q q 0 0 0 rg BT 439.97 393.10 Td (Advisor to specified fees for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.10 Td (the management and disposition of investments, among other services, as well as to reimbursement for certain costs incurred by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.10 Td (the ) Tj ET Q q 0 0 0 rg BT 63.67 369.10 Td (Advisor in providing services to the Company) Tj ET Q q 0 0 0 rg BT 247.99 369.10 Td (. In addition, the ) Tj ET Q q 0 0 0 rg BT 318.26 369.10 Td (Advisor is entitled to certain other fees, including an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.10 Td (incentive fee upon achieving certain performance goals, as detailed in the ) Tj ET Q q 0 0 0 rg BT 345.49 357.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 384.66 357.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 436.40 357.10 Td (The Company has also entered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.10 Td (into a fee reimbursement agreement \(the “AIP) Tj ET Q q 0 0 0 rg BT 234.05 345.10 Td ( Reimbursement ) Tj ET Q q 0 0 0 rg BT 301.82 345.10 Td (Agreement”\) with the Dealer Manager pursuant to which the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.10 Td (Company agreed to reimburse the Dealer Manager for certain fees and expenses it incurs for administering the Company’) Tj ET Q q 0 0 0 rg BT 535.72 333.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.10 Td (participation in the DTCC ) Tj ET Q q 0 0 0 rg BT 156.15 321.10 Td (Alternative Investment Product Platform with respect to certain accounts of the Company’) Tj ET Q q 0 0 0 rg BT 517.44 321.10 Td (s investors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.10 Td (serviced through the platform. ) Tj ET Q q 0 0 0 rg BT 175.39 309.10 Td (The ) Tj ET Q q 0 0 0 rg BT 192.89 309.10 Td (Advisor also serves, and the Dealer Manager also serves or served, as the advisor and dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.10 Td (manager) Tj ET Q q 0 0 0 rg BT 83.52 297.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 136.18 297.10 Td (, for KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 271.81 297.10 Td (T) Tj ET Q q 0 0 0 rg BT 277.57 297.10 Td (rust II, Inc., KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 443.46 297.10 Td (T) Tj ET Q q 0 0 0 rg BT 449.22 297.10 Td (rust III, Inc., KBS Strategic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.10 Td (Opportunity REIT) Tj ET Q q 0 0 0 rg BT 122.36 285.10 Td (, Inc., KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 236.22 285.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 302.96 285.10 Td (, Inc., KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 461.65 285.10 Td ( II, Inc. and KBS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.10 Td (Growth & Income REIT) Tj ET Q q 0 0 0 rg BT 146.79 273.10 Td (, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 255.10 Td (On January 6, 2014, the Company) Tj ET Q q 0 0 0 rg BT 209.77 255.10 Td (, together with KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 386.78 255.10 Td (T) Tj ET Q q 0 0 0 rg BT 392.54 255.10 Td (rust II, Inc., KBS Real Estate Investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 243.10 Td (rust III, Inc., KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 240.87 243.10 Td (, Inc., KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 354.73 243.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 421.47 243.10 Td (, Inc., KBS Strategic Opportunity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 231.10 Td (REIT) Tj ET Q q 0 0 0 rg BT 71.54 231.10 Td ( II, Inc., the Dealer Manager) Tj ET Q q 0 0 0 rg BT 184.96 231.10 Td (, the ) Tj ET Q q 0 0 0 rg BT 204.13 231.10 Td (Advisor and other KBS-af) Tj ET Q q 0 0 0 rg BT 309.21 231.10 Td (filiated entities, entered into an errors and omissions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 219.10 Td (directors and of) Tj ET Q q 0 0 0 rg BT 112.07 219.10 Td (ficers liability insurance program where the lower tiers of such insurance coverage are shared. ) Tj ET Q q 0 0 0 rg BT 493.40 219.10 Td (The cost of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.10 Td (lower tiers is allocated by the ) Tj ET Q q 0 0 0 rg BT 168.91 207.10 Td (Advisor and its insurance broker among each of the various entities covered by the program, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.10 Td (is billed directly to each entity) Tj ET Q q 0 0 0 rg BT 170.20 195.10 Td (. ) Tj ET Q q 0 0 0 rg BT 177.52 195.10 Td (The allocation of these shared coverage costs is proportionate to the pricing by the insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.10 Td (marketplace for the first tiers of directors and of) Tj ET Q q 0 0 0 rg BT 241.46 183.10 Td (ficers liability coverage purchased individually by each REIT) Tj ET Q q 0 0 0 rg BT 487.02 183.10 Td (. ) Tj ET Q q 0 0 0 rg BT 494.34 183.10 Td (The ) Tj ET Q q 0 0 0 rg BT 511.83 183.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 544.43 183.10 Td (’) Tj ET Q q 0 0 0 rg BT 547.21 183.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.10 Td (and the Dealer Manager) Tj ET Q q 0 0 0 rg BT 146.21 171.10 Td (’) Tj ET Q q 0 0 0 rg BT 148.99 171.10 Td (s portion of the shared lower tiers’) Tj ET Q q 0 0 0 rg BT 285.98 171.10 Td ( cost is proportionate to the respective entities’) Tj ET Q q 0 0 0 rg BT 472.13 171.10 Td ( prior cost for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.10 Td (errors and omissions insurance. In June 2015, KBS Growth & Income REIT) Tj ET Q q 0 0 0 rg BT 356.49 159.10 Td (, Inc. was added to the insurance program at terms ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.10 Td (similar to those described above.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 129.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 129.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.72 129.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.54 129.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.37 129.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.81 129.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.81 129.10 Td (, no other business transactions occurred between the Company and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.10 Td (the other KBS-sponsored programs. On May 18, 2012, KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 406.78 117.10 Td (, Inc. made an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.64 117.10 Td ($8.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.53 117.10 Td ( investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.10 Td (in a joint venture in which the Company indirectly owns a participation interest through another joint venture investment. ) Tj ET Q endstream endobj 49 0 obj <>] /Rotate 0 /Contents 50 0 R>> endobj 50 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (Pursuant to the terms of the ) Tj ET Q q 0 0 0 rg BT 185.71 632.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 224.88 632.10 Td (Agreement and the ) Tj ET Q q 0 0 0 rg BT 302.90 632.10 Td (AIP) Tj ET Q q 0 0 0 rg BT 318.65 632.10 Td ( Reimbursement ) Tj ET Q q 0 0 0 rg BT 386.42 632.10 Td (Agreement, summarized below are the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (related-party costs incurred by the Company for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.88 620.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.86 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.30 620.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.97 620.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.79 620.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.62 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.06 620.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.06 620.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 518.72 620.10 Td (, and any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (related amounts payable as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.84 608.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.67 608.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.11 608.10 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.70 608.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 552.60 189.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 552.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.00 552.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 552.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 552.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 552.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 552.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 552.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 552.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 552.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 552.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 552.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 526.60 189.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 526.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.00 526.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 526.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 526.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 526.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 526.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 526.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 526.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 526.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 526.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 526.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 500.60 189.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 500.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.00 500.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 500.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 500.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 500.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 500.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 500.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 500.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 500.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 500.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 500.60 50.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 578.6 m 289 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 578.6 m 293 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 578.6 m 343 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 578.6 m 347 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 578.6 m 397 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 578.6 m 401 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 578.6 m 451 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 578.6 m 505 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 578.6 m 509 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 578.6 m 559 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 578.6 m 289 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 578.6 m 505 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 578.6 m 559 578.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 552.6 m 289 552.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 552.6 m 343 552.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 552.6 m 397 552.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 552.6 m 451 552.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 552.6 m 505 552.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 552.6 m 559 552.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 500.6 m 289 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 500.6 m 343 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 500.6 m 397 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 500.6 m 451 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 500.6 m 505 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 500.6 m 559 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 500.6 m 289 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 488.6 m 289 488.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 486.6 m 289 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 500.6 m 343 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 488.6 m 343 488.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 486.6 m 343 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 500.6 m 397 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 488.6 m 397 488.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 486.6 m 397 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 500.6 m 451 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 488.6 m 451 488.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 486.6 m 451 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 488.6 m 505 488.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 486.6 m 505 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 488.6 m 559 488.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 486.6 m 559 486.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 582.85 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 331.10 582.66 Td (Incurred) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 494.60 582.66 Td (Payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 569.85 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 245.30 569.66 Td (Three Months Ended June 30,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 357.55 569.66 Td (Six Months Ended June 30,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 467.05 569.66 Td (June 30,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 513.15 569.66 Td (December 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 556.85 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 256.50 556.66 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 310.50 556.66 Td (2014) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 364.50 556.66 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 418.50 556.66 Td (2014) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 472.50 556.66 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 526.50 556.66 Td (2014) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 543.83 Td (Expensed) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 530.85 Td (Asset management fees) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 128.03 534.48 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 241.50 530.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 267.75 530.85 Td (2,346) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 295.50 530.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 321.75 530.85 Td (2,530) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 349.50 530.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.75 530.85 Td (4,766) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.50 530.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.75 530.85 Td (5,046) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.50 530.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 530.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 530.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 530.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 517.85 Td (Reimbursement of operating expenses) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 174.91 521.48 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 277.80 517.85 Td (52) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.80 517.85 Td (54) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 385.80 517.85 Td (99) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 517.85 Td (103) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 517.85 Td (33) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 517.85 Td (45) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 504.85 Td (Disposition fees) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 104.27 508.48 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 267.75 504.85 Td (1,068) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 327.80 504.85 Td (399) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.75 504.85 Td (2,253) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 504.85 Td (775) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 504.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.80 504.85 Td (399) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 241.50 491.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 267.75 491.85 Td (3,466) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 295.50 491.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 321.75 491.85 Td (2,983) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 349.50 491.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.75 491.85 Td (7,118) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.50 491.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.75 491.85 Td (5,924) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.50 491.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 491.85 Td (33) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 491.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.80 491.85 Td (444) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (_____________________) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 467.50 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 464.10 Td ( ) Tj ET Q q 0 0 0 rg BT 56.65 464.10 Td (Amounts include asset management fees from discontinued operations totaling ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 295.14 464.10 Td ($17,000) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 319.51 464.10 Td ( for the ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 343.05 464.10 Td (six) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 351.80 464.10 Td ( months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 397.42 464.10 Td (June 30, 2014) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 439.29 464.10 Td (.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 455.50 Td (\(2\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 452.10 Td ( ) Tj ET Q q 0 0 0 rg BT 56.92 452.10 Td (The ) Tj ET Q q 0 0 0 rg BT 70.05 452.10 Td (Advisor may seek reimbursement for certain employee costs under the ) Tj ET Q q 0 0 0 rg BT 283.32 452.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 312.70 452.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 351.51 452.10 Td (The Company reimburses the ) Tj ET Q q 0 0 0 rg BT 441.49 452.10 Td (Advisor for the Company’) Tj ET Q q 0 0 0 rg BT 520.44 452.10 Td (s allocable ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (portion of the salaries, benefits and overhead of internal audit department personnel providing services to the Company) Tj ET Q q 0 0 0 rg BT 407.04 443.10 Td (. ) Tj ET Q q 0 0 0 rg BT 412.53 443.10 Td (These amounts totaled ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 481.89 443.10 Td ($50,000) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 506.27 443.10 Td ( and ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 520.85 443.10 Td ($54,000) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 545.22 443.10 Td ( for ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (the ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 60.54 434.10 Td (three) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 75.53 434.10 Td ( months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 121.15 434.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 163.02 434.10 Td ( and ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 177.60 434.10 Td (2014) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 192.60 434.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 232.10 434.10 Td (, and ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 248.55 434.10 Td ($95,000) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 272.93 434.10 Td ( and ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 287.51 434.10 Td ($0.1 million) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 324.18 434.10 Td ( for the ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 347.71 434.10 Td (six) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 356.46 434.10 Td ( months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 402.08 434.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 443.96 434.10 Td ( and ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 458.53 434.10 Td (2014) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 473.53 434.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 513.03 434.10 Td (. ) Tj ET Q q 0 0 0 rg BT 518.52 434.10 Td (These were ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 425.10 Td (the only type of employee costs reimbursed under the ) Tj ET Q q 0 0 0 rg BT 211.76 425.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 241.13 425.10 Td (Agreement for the ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 297.99 425.10 Td (three) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 312.98 425.10 Td ( and ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 327.56 425.10 Td (six) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 336.31 425.10 Td ( months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 381.93 425.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 423.80 425.10 Td ( and ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 438.38 425.10 Td (2014) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 453.38 425.10 Td (. ) Tj ET Q q 0 0 0 rg BT 458.87 425.10 Td (The Company will not reimburse ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (for employee costs in connection with services for which the ) Tj ET Q q 0 0 0 rg BT 233.21 416.10 Td (Advisor earns disposition fees \(other than reimbursement of travel and communication expenses\) or for the ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (salaries or benefits the ) Tj ET Q q 0 0 0 rg BT 118.23 407.10 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 167.05 407.10 Td (filiates may pay to the Company’) Tj ET Q q 0 0 0 rg BT 266.82 407.10 Td (s executive of) Tj ET Q q 0 0 0 rg BT 308.34 407.10 Td (ficers.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 398.50 Td (\(3\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 395.10 Td ( Disposition fees with respect to real estate sold are included in the gain on sales of real estate in the accompanying consolidated statements of operations. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 90.34 371.10 Td (Agr) Tj ET Q q 0 0 0 rg BT 106.82 371.10 Td (eement ) Tj ET Q q 0 0 0 rg BT 139.30 371.10 Td (Amendment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 353.10 Td (On January 15, 2015, the Company and the ) Tj ET Q q 0 0 0 rg BT 249.03 353.10 Td (Advisor entered into an amendment to the ) Tj ET Q q 0 0 0 rg BT 419.26 353.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 458.43 353.10 Td (Agreement to amend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (certain terms related to the disposition fee payable to the ) Tj ET Q q 0 0 0 rg BT 277.76 341.10 Td (Advisor by the Company) Tj ET Q q 0 0 0 rg BT 377.93 341.10 Td (. In accordance with the ) Tj ET Q q 0 0 0 rg BT 475.67 341.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 514.84 341.10 Td (Agreement, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (for substantial assistance in connection with the sale of properties, loans or other investments as determined by the conflicts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (committee of the Company’) Tj ET Q q 0 0 0 rg BT 161.42 317.10 Td (s board of directors, the Company pays the ) Tj ET Q q 0 0 0 rg BT 334.99 317.10 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 400.08 317.10 Td (filiates a disposition fee of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.67 317.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.00 317.10 Td ( of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (contract sales price of the properties, loans or other investments sold. However) Tj ET Q q 0 0 0 rg BT 364.84 305.10 Td (, in no event may the total commissions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (\(including such disposition fees\) paid to the ) Tj ET Q q 0 0 0 rg BT 226.42 293.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 258.24 293.10 Td (, its af) Tj ET Q q 0 0 0 rg BT 282.78 293.10 Td (filiates and unaf) Tj ET Q q 0 0 0 rg BT 347.01 293.10 Td (filiated third parties exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.63 293.10 Td (6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.96 293.10 Td ( of the contract sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (price of the property) Tj ET Q q 0 0 0 rg BT 130.76 281.10 Td (, loan or other investment sold or exceed a competitive real estate commission. Pursuant to the amendment, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (the disposition fee related to the sales of GKK Properties has been modified to provide that the conflicts committee will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (determine in its sole discretion the amount of the disposition fee related to the sale of GKK Properties upon the terms set forth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (below) Tj ET Q q 0 0 0 rg BT 73.29 245.10 Td (, which disposition fee may be an amount not to exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.23 245.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.56 245.10 Td ( of the contract sales price, which maximum amount is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (consistent with the fixed percentage applicable to the sales of other properties, loans and other investments under the ) Tj ET Q q 0 0 0 rg BT 518.52 233.10 Td (Advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.10 Td (Agreement.) Tj ET Q endstream endobj 51 0 obj <>] /Rotate 0 /Contents 52 0 R>> endobj 52 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (The amendment provides that with respect to sales of the GKK Properties, and provided that the conflicts committee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (determines that the ) Tj ET Q q 0 0 0 rg BT 127.53 620.10 Td (Advisor has provided a substantial amount of services in connection with the sale of each GKK Property for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (which the payment of a disposition fee is requested by the ) Tj ET Q q 0 0 0 rg BT 283.61 608.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 315.43 608.10 Td (, then:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 590.10 Td (\(a\) ) Tj ET Q q 0 0 0 rg BT 85.50 590.10 Td (W) Tj ET Q q 0 0 0 rg BT 94.54 590.10 Td (ith respect to portfolio or single asset sales of GKK Properties designated by the conflicts committee in its sole ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 578.10 Td (discretion at or about the time of the sale, the Company will pay the ) Tj ET Q q 0 0 0 rg BT 359.04 578.10 Td (Advisor a fee in an amount not to exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.93 578.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.26 578.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 566.10 Td (the contract sales price and subject to other limitations and conditions set forth in the ) Tj ET Q q 0 0 0 rg BT 426.80 566.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 465.97 566.10 Td (Agreement, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 554.10 Td (determined by the conflicts committee in its sole discretion, which fee will be payable upon the respective closing; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 539.10 Td (\(b\) ) Tj ET Q q 0 0 0 rg BT 85.50 539.10 Td (W) Tj ET Q q 0 0 0 rg BT 94.54 539.10 Td (ith respect to sales of all other GKK Properties for which a disposition fee has not yet been paid, if, upon the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 527.10 Td (the final GKK Property) Tj ET Q q 0 0 0 rg BT 179.00 527.10 Td (, the conflicts committee determines in its sole discretion that the Company has recovered its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 515.10 Td (entire investment related to the GKK Mezzanine Loan and the GKK Properties subsequent to the Settlement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 503.10 Td (Agreement, after taking into consideration the net cash flow received by the Company from the investment, whether in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 491.10 Td (the form of \(i\) net proceeds from the sales or other dispositions or transfers of the GKK Properties, \(ii\) the net cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 479.10 Td (flow related to the GKK Mezzanine Loan, \(iii\) the net cash flow related to the GKK Properties subsequent to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 467.10 Td (Settlement ) Tj ET Q q 0 0 0 rg BT 130.22 467.10 Td (Agreement and/or \(iv\) other proceeds related to the assets and liabilities received under the Settlement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 455.10 Td (Agreement, then the Company will pay the ) Tj ET Q q 0 0 0 rg BT 259.90 455.10 Td (Advisor a fee in an amount not to exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.79 455.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.12 455.10 Td ( of the contract sales price and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 443.10 Td (subject to other conditions set forth in the ) Tj ET Q q 0 0 0 rg BT 253.81 443.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 292.98 443.10 Td (Agreement, as determined by the conflicts committee in its sole ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 431.10 Td (discretion, which fee will be payable promptly upon such determination by the conflicts committee.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 410.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 410.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 410.10 Td (, the Company had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.99 410.10 Td (160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.99 410.10 Td ( GKK Properties for an aggregate contract sales price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.11 410.10 Td ($213.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 398.10 Td ( for which the Company had not paid or accrued a disposition fee. If the conflicts committee determines the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (has recovered its entire investment related to the GKK Mezzanine Loan and the GKK Properties upon the sale of the final GKK ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (Property) Tj ET Q q 0 0 0 rg BT 83.29 374.10 Td (, the conflicts committee may authorize the Company to pay the ) Tj ET Q q 0 0 0 rg BT 341.55 374.10 Td (Advisor a disposition fee of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.92 374.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.25 374.10 Td ( of the aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (contract sales price of these GKK Properties sold as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.54 362.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.38 362.10 Td (, which amount would be determined by the conflicts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (committee in its sole discretion.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (1) Tj ET Q q 0 0 0 rg BT 53.95 326.10 Td (1. ) Tj ET Q q 0 0 0 rg BT 67.50 326.10 Td (SUPPLEMENT) Tj ET Q q 0 0 0 rg BT 135.10 326.10 Td (AL) Tj ET Q q 0 0 0 rg BT 148.44 326.10 Td ( CASH FLOW) Tj ET Q q 0 0 0 rg BT 211.60 326.10 Td ( ) Tj ET Q q 0 0 0 rg BT 213.54 326.10 Td (AND SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 304.21 326.10 Td ( NONCASH ) Tj ET Q q 0 0 0 rg BT 359.03 326.10 Td (TRANSACTION DISCLOSURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 308.10 Td (Supplemental cash flow and significant noncash transaction disclosures were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 265.60 369.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 265.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 265.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 265.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 239.60 369.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 239.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 239.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 239.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 213.60 369.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 213.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 213.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 213.60 70.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 278.6 m 489 278.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 278.6 m 493 278.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 278.6 m 563 278.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 278.6 m 489 278.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 265.6 m 489 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 278.6 m 563 278.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 265.6 m 563 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 240.60000000000002 m 489 240.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 238.60000000000002 m 489 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 240.60000000000002 m 563 240.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 238.60000000000002 m 563 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 214.60000000000002 m 489 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 212.60000000000002 m 489 212.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 214.60000000000002 m 563 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 212.60000000000002 m 563 212.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 201.60000000000002 m 489 201.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 199.60000000000002 m 489 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 201.60000000000002 m 563 201.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 199.60000000000002 m 563 199.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 282.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.20 282.83 Td (For the Six Months Ended June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 269.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.50 269.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.50 269.83 Td (2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 256.85 Td (Supplemental Disclosure of Cash Flow Information:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 243.85 Td (Interest paid) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 243.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.80 243.85 Td (13,671) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 243.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 243.85 Td (23,313) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 230.85 Td (Supplemental Disclosure of Significant Noncash Transactions:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 217.85 Td (Mortgage loans extinguished in connection with foreclosures and deed in lieu of foreclosure) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 217.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 217.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 217.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 217.85 Td (6,134) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 204.85 Td (Increase in lease incentives payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 204.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.80 204.85 Td (423) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 204.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 204.85 Td (1,925) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 564.50 201.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 566.50 201.10 Td ( ) Tj ET Q endstream endobj 53 0 obj <>] /Rotate 0 /Contents 54 0 R>> endobj 54 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (25) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (12. ) Tj ET Q q 0 0 0 rg BT 67.50 632.25 Td (SEGMENT) Tj ET Q q 0 0 0 rg BT 117.33 632.25 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 167.97 632.25 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 614.25 Td (The Company presently operates in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.18 614.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.17 614.25 Td ( business segments based on its investment types: real estate, real estate-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (and commercial properties primarily leased to financial institutions received under the Settlement ) Tj ET Q q 0 0 0 rg BT 441.59 602.25 Td (Agreement, or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (GKK Properties. Under the real estate segment, the Company has invested primarily in of) Tj ET Q q 0 0 0 rg BT 410.89 590.25 Td (fice and industrial properties located ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (throughout the United States. ) Tj ET Q q 0 0 0 rg BT 171.53 578.25 Td (The real estate segment excludes all real estate properties that were classified as discontinued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (operations. Under the real estate-related segment, the Company has invested in or originated mortgage loans, mezzanine loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (and other real estate-related assets, including real estate securities. ) Tj ET Q q 0 0 0 rg BT 319.20 554.25 Td (The GKK Properties segment consists of primarily of) Tj ET Q q 0 0 0 rg BT 533.15 554.25 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (properties, bank branch properties, operations centers and other properties located in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.21 542.25 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.21 542.25 Td ( states but excludes GKK Properties that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (were classified as discontinued operations. ) Tj ET Q q 0 0 0 rg BT 224.73 530.25 Td (All revenues earned from the Company’) Tj ET Q q 0 0 0 rg BT 385.51 530.25 Td (s three reporting segments were from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (external customers and there were no intersegment sales or transfers. ) Tj ET Q q 0 0 0 rg BT 329.77 518.25 Td (The Company does not allocate corporate-level accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (to its reporting segments. Corporate-level accounts include corporate general and administrative expenses, asset management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (fees, non-operating interest income and other corporate-level expenses. ) Tj ET Q q 0 0 0 rg BT 339.48 494.25 Td (The accounting policies of the reporting segments are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (consistent with those described in Note 2, “Summary of Significant ) Tj ET Q q 0 0 0 rg BT 321.40 482.25 Td (Accounting Policies.”) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 464.25 Td (The Company evaluates the performance of its segments based upon net operating income from continuing operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.25 Td (\(“NOI”\), which is a non-GAAP) Tj ET Q q 0 0 0 rg BT 176.04 452.25 Td ( supplemental financial measure. ) Tj ET Q q 0 0 0 rg BT 312.48 452.25 Td (The Company defines NOI for its real estate segment and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.25 Td (GKK Properties segment as operating revenues \(rental income, tenant reimbursements and other operating income\) less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (property and related expenses \(property operating expenses, real estate taxes, insurance and provision for bad debt\) less interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (expense. ) Tj ET Q q 0 0 0 rg BT 89.03 416.25 Td (The Company defines NOI for its real estate-related segment as interest income and income from its unconsolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (joint venture investment less loan servicing costs \(if applicable\) and interest expense \(if applicable\). NOI excludes certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (items that are not considered to be controllable in connection with the management of an asset such as non-property income and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (expenses, depreciation and amortization, asset management fees and corporate general and administrative expenses. ) Tj ET Q q 0 0 0 rg BT 518.30 380.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (Company uses NOI to evaluate the operating performance of the Company’) Tj ET Q q 0 0 0 rg BT 352.19 368.25 Td (s real estate investments, real estate-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (investments and the GKK Properties and to make decisions about resource allocations. ) Tj ET Q q 0 0 0 rg BT 401.45 356.25 Td (The Company believes that net income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.25 Td (is the GAAP) Tj ET Q q 0 0 0 rg BT 100.24 344.25 Td ( measure that is most directly comparable to NOI; however) Tj ET Q q 0 0 0 rg BT 336.71 344.25 Td (, NOI should not be considered as an alternative to net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (income as the primary indicator of operating performance as it excludes the items described above. ) Tj ET Q q 0 0 0 rg BT 450.19 332.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 500.09 332.25 Td (, NOI as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (defined above may not be comparable to other REIT) Tj ET Q q 0 0 0 rg BT 259.28 320.25 Td (s or companies as their definitions of NOI may dif) Tj ET Q q 0 0 0 rg BT 460.44 320.25 Td (fer from the Company’) Tj ET Q q 0 0 0 rg BT 552.36 320.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (definition. During the year ended December 31, 2014, the Company revised its definition of NOI to exclude asset management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (fees, which the Company does not consider to be controllable in connection with the management of each property or real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (estate-related asset and is viewed by the chief operating decision makers as a corporate-level administrative expense. NOI for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.25 Td (all prior periods presented has been adjusted to conform to the current period definition.) Tj ET Q endstream endobj 55 0 obj <>] /Rotate 0 /Contents 56 0 R>> endobj 56 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (The following tables summarize total revenues, interest expense and NOI for each reportable segment for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.50 632.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.49 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.17 620.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 620.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.83 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.26 620.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.26 620.10 Td (, and total assets and total liabilities for each reportable segment as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.73 620.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.56 620.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 608.10 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.02 608.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 567.60 192.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.00 567.60 77.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 567.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 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j 3 M 405 567.6 m 482 567.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 579.6 m 563 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 567.6 m 563 567.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 519.6 m 319 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 519.6 m 400 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 519.6 m 482 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 519.6 m 563 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 519.6 m 319 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 508.6 m 319 508.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 506.6 m 319 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 519.6 m 400 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 508.6 m 400 508.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 506.6 m 400 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 519.6 m 482 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 508.6 m 482 508.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 506.6 m 482 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 519.6 m 563 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 508.6 m 563 508.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 506.6 m 563 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 459.6 m 319 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 459.6 m 400 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 459.6 m 482 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 459.6 m 563 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 459.6 m 319 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 448.6 m 319 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 446.6 m 319 446.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 459.6 m 400 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 448.6 m 400 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 446.6 m 400 446.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 459.6 m 482 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 448.6 m 482 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 446.6 m 482 446.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 459.6 m 563 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 448.6 m 563 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 446.6 m 563 446.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 399.6 m 319 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 399.6 m 400 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 399.6 m 482 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 399.6 m 563 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 399.6 m 319 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 388.6 m 319 388.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 386.6 m 319 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 399.6 m 400 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 388.6 m 400 388.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 386.6 m 400 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 399.6 m 482 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 388.6 m 482 388.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 386.6 m 482 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 399.6 m 563 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 388.6 m 563 388.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 386.6 m 563 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 355.6 m 319 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 355.6 m 400 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 307.6 m 319 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 307.6 m 400 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 259.6 m 319 259.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 259.6 m 400 259.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 248.60000000000002 m 319 248.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 246.60000000000002 m 319 246.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 248.60000000000002 m 400 248.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 246.60000000000002 m 400 246.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 199.60000000000002 m 319 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 199.60000000000002 m 400 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 163.60000000000002 m 319 163.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 163.60000000000002 m 400 163.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 152.60000000000002 m 319 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 150.60000000000002 m 319 150.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 152.60000000000002 m 400 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 150.60000000000002 m 400 150.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 583.55 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 255.45 583.68 Td (For the Three Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.20 583.68 Td (For the Six Months Ended June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 571.55 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 272.00 571.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.00 571.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 435.00 571.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.00 571.68 Td (2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 559.55 Td (Revenues:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 547.55 Td (Real estate segment ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 136.03 551.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.50 547.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.80 547.55 Td (16,488) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.50 547.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 547.55 Td (18,231) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 547.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.15 547.55 Td (34,329) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.50 547.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.15 547.55 Td (37,151) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 535.55 Td (Real estate-related segment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.80 535.55 Td (741) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 535.55 Td (815) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.15 535.55 Td (1,467) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.15 535.55 Td (1,615) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 523.55 Td (GKK Properties segment ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 152.93 527.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.80 523.55 Td (27,737) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 523.55 Td (35,415) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.15 523.55 Td (58,748) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.15 523.55 Td (69,702) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 511.55 Td (Total revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.50 511.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.80 511.55 Td (44,966) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.50 511.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 511.55 Td (54,461) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 511.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.15 511.55 Td (94,544) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.50 511.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.15 511.55 Td (108,468) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 499.55 Td (Interest expense:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 487.55 Td (Real estate segment ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 136.03 491.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.50 487.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 297.80 487.55 Td (2,036) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.50 487.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.80 487.55 Td (2,321) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 487.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.15 487.55 Td (4,244) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.50 487.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.15 487.55 Td (5,287) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 475.55 Td (Real estate-related segment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 307.80 475.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.80 475.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.15 475.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.15 475.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 463.55 Td (GKK Properties segment ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 152.93 467.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 297.80 463.55 Td (6,048) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 463.55 Td (10,715) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.15 463.55 Td (12,572) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.15 463.55 Td (21,294) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 451.55 Td (Total interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.50 451.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 297.80 451.55 Td (8,084) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.50 451.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 451.55 Td (13,036) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 451.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.15 451.55 Td (16,816) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.50 451.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.15 451.55 Td (26,581) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 439.55 Td (NOI:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 427.55 Td (Real estate segment ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 136.03 431.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.50 427.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 297.80 427.55 Td (6,660) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.50 427.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.80 427.55 Td (8,381) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 427.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.15 427.55 Td (13,055) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.50 427.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.15 427.55 Td (15,945) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 415.55 Td (Real estate-related segment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.80 415.55 Td (741) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 415.55 Td (679) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.15 415.55 Td (1,466) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.15 415.55 Td (1,479) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 403.55 Td (GKK Properties segment ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 152.93 407.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 297.80 403.55 Td (5,773) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.80 403.55 Td (4,176) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.15 403.55 Td (10,728) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.15 403.55 Td (7,435) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 391.55 Td (Total NOI) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.50 391.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.80 391.55 Td (13,174) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.50 391.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 391.55 Td (13,236) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 391.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.15 391.55 Td (25,249) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.50 391.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.15 391.55 Td (24,859) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 371.55 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 255.95 371.68 Td (As of June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 327.95 371.68 Td (As of December 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 359.55 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 272.00 359.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.00 359.68 Td (2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 347.55 Td (Assets:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 335.55 Td (Real estate segment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.50 335.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.80 335.55 Td (548,572) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.50 335.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.80 335.55 Td (542,512) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 323.55 Td (Real estate-related segment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.80 323.55 Td (29,488) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 323.55 Td (29,096) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 311.55 Td (GKK Properties segment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.80 311.55 Td (571,907) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.80 311.55 Td (598,907) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 88.50 299.55 Td (Total segment assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 283.80 299.55 Td (1,149,967) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.80 299.55 Td (1,170,515) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 287.55 Td (Real estate held for sale) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 307.80 287.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.80 287.55 Td (158,816) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 275.55 Td (Foreclosed real estate held for sale) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 307.80 275.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 275.55 Td (12,045) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 263.55 Td (Corporate-level ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 122.70 267.18 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.80 263.55 Td (100,448) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 263.55 Td (34,791) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 251.55 Td (Total assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.50 251.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 283.80 251.55 Td (1,250,415) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.50 251.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.80 251.55 Td (1,376,167) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 239.55 Td (Liabilities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 227.55 Td (Real estate segment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.50 227.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.80 227.55 Td (243,804) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.50 227.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.80 227.55 Td (240,965) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 215.55 Td (Real estate-related segment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.80 215.55 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.80 215.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 203.55 Td (GKK Properties segment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.80 203.55 Td (377,045) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.80 203.55 Td (433,735) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 88.50 191.55 Td (Total segment liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.80 191.55 Td (620,851) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.80 191.55 Td (674,700) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 179.55 Td (Real estate held for sale) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 307.80 179.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 179.55 Td (83,056) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 167.55 Td (Corporate-level ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 122.70 171.18 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.80 167.55 Td (932) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.80 167.55 Td (5,638) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 155.55 Td (Total liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.50 155.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.80 155.55 Td (621,783) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.50 155.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.80 155.55 Td (763,394) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (_____________________) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 125.50 Td (\(1\) ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 56.40 122.10 Td (Amounts include certain properties in continuing operations that were sold as of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 298.85 122.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 340.72 122.10 Td (. See Note 6, “Real Estate Held for Sale and Discontinued Operations” ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 113.10 Td (for more information.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 104.50 Td (\(2\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 101.10 Td ( ) Tj ET Q q 0 0 0 rg BT 56.92 101.10 Td (T) Tj ET Q q 0 0 0 rg BT 60.98 101.10 Td (otal corporate-level assets consisted primarily of cash and cash equivalents of approximately ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 340.90 101.10 Td ($100.2 million) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 385.07 101.10 Td ( and ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 399.65 101.10 Td ($34.2 million) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 440.07 101.10 Td ( as of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 458.19 101.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 500.06 101.10 Td ( and ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 514.64 101.10 Td (December 31, ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 92.10 Td (2014) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 64.50 92.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 104.00 92.10 Td (.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 83.50 Td (\(3\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 80.10 Td ( ) Tj ET Q q 0 0 0 rg BT 56.65 80.10 Td (As of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 74.98 80.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 116.85 80.10 Td (, corporate-level liabilities consisted primarily of accounts payable and accrued liabilities for general and administrative expenses. ) Tj ET Q q 0 0 0 rg BT 510.69 80.10 Td (As of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 71.10 Td (December 31, 2014) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 108.44 71.10 Td (, corporate-level liabilities consisted primarily of distributions payable.) Tj ET Q endstream endobj 57 0 obj <>] /Rotate 0 /Contents 58 0 R>> endobj 58 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (The following table reconciles the Company’) Tj ET Q q 0 0 0 rg BT 254.28 632.10 Td (s net income \(loss\) to its NOI for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.42 632.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.41 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.85 632.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.52 632.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.34 632.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 620.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 620.10 Td ( \(amounts in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 577.60 241.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 577.60 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 577.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 577.60 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 577.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 577.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 577.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 577.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 551.60 241.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 551.60 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 551.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 551.60 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 551.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 551.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 551.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 551.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 525.60 241.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 525.60 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 525.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 525.60 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 525.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 525.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 525.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 525.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 499.60 241.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 499.60 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 499.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 499.60 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 499.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 499.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 499.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 499.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 473.60 241.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 473.60 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 473.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 473.60 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 473.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 473.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 473.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 473.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 447.60 241.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 447.60 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 447.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 447.60 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 447.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 447.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 447.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 447.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 421.60 241.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 421.60 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 421.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 421.60 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 421.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 421.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 421.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 421.60 63.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 590.6 m 358 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 590.6 m 362 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 590.6 m 429 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 590.6 m 496 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 590.6 m 500 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 590.6 m 563 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 590.6 m 358 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 577.6 m 358 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 590.6 m 362 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 590.6 m 429 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 577.6 m 429 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 590.6 m 496 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 577.6 m 496 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 590.6 m 563 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 577.6 m 563 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 577.6 m 358 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 577.6 m 429 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 577.6 m 496 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 577.6 m 563 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 421.6 m 358 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 421.6 m 429 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 421.6 m 496 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 421.6 m 563 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 421.6 m 358 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 409.6 m 358 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 407.6 m 358 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 421.6 m 429 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 409.6 m 429 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 407.6 m 429 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 421.6 m 496 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 409.6 m 496 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 407.6 m 496 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 421.6 m 563 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 409.6 m 563 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 407.6 m 563 407.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 594.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 294.45 594.83 Td (For the Three Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.20 594.83 Td (For the Six Months Ended June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 581.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 316.00 581.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.00 581.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.00 581.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.00 581.83 Td (2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 568.85 Td (Net income \(loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 568.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.80 568.85 Td (19,751) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.50 568.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.10 568.85 Td (\(7,652) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.80 568.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.50 568.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 568.85 Td (28,340) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.50 568.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 535.10 568.85 Td (\(12,168) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 568.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 555.85 Td (Gain on sales of real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 330.10 555.85 Td (\(35,093) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.80 555.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.10 555.85 Td (\(2,041) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.80 555.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.10 555.85 Td (\(49,059) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 555.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 555.85 Td (\(2,041) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 555.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 542.85 Td (Gain on sales of real estate securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 346.80 542.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.10 542.85 Td (\(662) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.80 542.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.80 542.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 542.85 Td (\(4,410) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 542.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 529.85 Td (Loss \(gain\) from extinguishment of debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.80 529.85 Td (6,385) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.10 529.85 Td (\(3,297) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.80 529.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 474.80 529.85 Td (6,376) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 529.85 Td (\(5,112) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 529.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 516.85 Td (Gain on sale of foreclosed real estate held for sale) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 346.80 516.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.80 516.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.10 516.85 Td (\(2,509) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 516.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 516.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 503.85 Td (Other income and interest income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 340.10 503.85 Td (\(474) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.80 503.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.10 503.85 Td (\(192) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.80 503.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.10 503.85 Td (\(590) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 503.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 503.85 Td (\(662) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 503.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 490.85 Td (Asset management fees to affiliate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.80 490.85 Td (2,346) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 490.85 Td (2,530) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 474.80 490.85 Td (4,766) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 490.85 Td (5,029) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 477.85 Td (General and administrative expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.80 477.85 Td (6,047) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 477.85 Td (3,685) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 474.80 477.85 Td (8,277) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 477.85 Td (7,329) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 464.85 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.80 464.85 Td (14,205) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 464.85 Td (17,961) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 464.85 Td (29,810) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 464.85 Td (35,884) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 451.85 Td (Impairment charge on real estate held for investment) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 346.80 451.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 451.85 Td (939) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.80 451.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 451.85 Td (2,196) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 438.85 Td (Provision for loan losses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 346.80 438.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 438.85 Td (1,973) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.80 438.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 438.85 Td (1,973) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 425.85 Td (Total loss \(income\) from discontinued operations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 350.80 425.85 Td (7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.10 425.85 Td (\(8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.80 425.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.10 425.85 Td (\(162) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 425.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 425.85 Td (\(3,159) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 425.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 412.85 Td (NOI ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 68.72 416.48 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 412.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.80 412.85 Td (13,174) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.50 412.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 412.85 Td (13,236) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.50 412.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 412.85 Td (25,249) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.50 412.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 412.85 Td (24,859) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.10 Td (_____________________) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 388.50 Td (\(1\) ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 56.40 385.10 Td (Amounts include certain properties in continuing operations that were sold as of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 298.85 385.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 340.72 385.10 Td (. See Note 6, “Real Estate Held for Sale and Discontinued Operations” ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 376.10 Td (for more information.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 352.10 Td (13. ) Tj ET Q q 0 0 0 rg BT 67.50 352.10 Td (COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 149.45 352.10 Td (AND CONTINGENCIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (Lease Obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 316.10 Td (Pursuant to the Settlement ) Tj ET Q q 0 0 0 rg BT 180.71 316.10 Td (Agreement, the Company indirectly received leasehold interests in certain commercial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.10 Td (properties, pursuant to leases between the owner of the property) Tj ET Q q 0 0 0 rg BT 304.88 304.10 Td (, as landlord, and the Company) Tj ET Q q 0 0 0 rg BT 428.92 304.10 Td (, as tenant. ) Tj ET Q q 0 0 0 rg BT 476.51 304.10 Td (The ground leases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.10 Td (have expiration dates from 2017 through 2042 and the building leases have expiration dates from 2018 through 2085. ) Tj ET Q q 0 0 0 rg BT 524.21 292.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.10 Td (lease obligations generally contain rent increases and renewal options. In certain instances, the rent owed by the Company to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.10 Td (the owner of the property under the lease is greater than the revenue received by the Company from the tenants occupying the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.10 Td (property) Tj ET Q q 0 0 0 rg BT 82.73 256.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 238.10 Td (Future minimum lease payments owed by the Company under non-cancelable operating building and ground leases as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 226.10 Td ( were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 209.60 412.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 209.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 183.60 412.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 183.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 157.60 412.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 157.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 131.60 412.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 131.60 100.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 131.60000000000002 m 562 131.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 131.60000000000002 m 562 131.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 119.60000000000002 m 562 119.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 117.60000000000002 m 562 117.60000000000002 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 200.86 Td (July 1, 2015 through December 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.50 200.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.25 200.86 Td (8,460) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 187.86 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.75 187.86 Td (16,455) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 174.86 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.75 174.86 Td (12,425) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 161.86 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.25 161.86 Td (2,413) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 148.86 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.25 148.86 Td (1,766) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 135.86 Td (Thereafter) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.75 135.86 Td (31,469) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.50 122.86 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 533.75 122.86 Td (72,988) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 59 0 obj <>] /Rotate 0 /Contents 60 0 R>> endobj 60 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 195.70 712.60 Td (KBS REAL) Tj ET Q q 0 0 0 rg BT 245.44 712.60 Td ( EST) Tj ET Q q 0 0 0 rg BT 266.10 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 272.58 712.60 Td (TE INVESTMENT) Tj ET Q q 0 0 0 rg BT 355.48 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 357.79 712.60 Td (TRUST) Tj ET Q q 0 0 0 rg BT 390.40 712.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Economic Dependency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 614.25 Td (The Company is dependent on the ) Tj ET Q q 0 0 0 rg BT 212.36 614.25 Td (Advisor for certain services that are essential to the Company) Tj ET Q q 0 0 0 rg BT 458.02 614.25 Td (, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (management of the Company’) Tj ET Q q 0 0 0 rg BT 170.30 602.25 Td (s real estate and real estate-related investment portfolio; the disposition of real estate and real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (estate-related investments; and other general and administrative responsibilities. In the event that the ) Tj ET Q q 0 0 0 rg BT 456.32 590.25 Td (Advisor is unable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (provide any of these services, the Company will be required to obtain such services from other sources. ) Tj ET Q q 0 0 0 rg BT 468.09 578.25 Td (The Company is also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (dependent on the Property Manager for the Services under the ) Tj ET Q q 0 0 0 rg BT 299.97 566.25 Td (Amended Services ) Tj ET Q q 0 0 0 rg BT 377.18 566.25 Td (Agreement, including the operations, leasing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (and eventual dispositions of the GKK Properties.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (Envir) Tj ET Q q 0 0 0 rg BT 73.77 536.25 Td (onmental) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 518.25 Td (As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (Although there can be no assurance, the Company is not aware of any environmental liability that could have a material adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 494.25 Td (fect on its financial condition or results of operations. However) Tj ET Q q 0 0 0 rg BT 312.45 494.25 Td (, changes in applicable environmental laws and regulations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (the uses and conditions of properties in the vicinity of the Company’) Tj ET Q q 0 0 0 rg BT 323.62 482.25 Td (s properties, the activities of its tenants and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (environmental conditions of which the Company is unaware with respect to the properties could result in future environmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (liabilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 440.25 Td (Under the Settlement ) Tj ET Q q 0 0 0 rg BT 160.42 440.25 Td (Agreement, the Company indirectly took title to or) Tj ET Q q 0 0 0 rg BT 363.31 440.25 Td (, with respect to a limited number of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (GKK Properties, indirectly took a leasehold interest in, the GKK Properties on an “as is” basis. ) Tj ET Q q 0 0 0 rg BT 434.42 428.25 Td (As such, the Company was not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (able to inspect the GKK Properties or conduct standard due diligence on certain of the GKK Properties before the transfers of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (the properties. ) Tj ET Q q 0 0 0 rg BT 111.15 404.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 161.05 404.25 Td (, the Company did not receive representations, warranties and indemnities relating to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (GKK Properties from Gramercy and/or its af) Tj ET Q q 0 0 0 rg BT 228.71 392.25 Td (filiates. ) Tj ET Q q 0 0 0 rg BT 263.24 392.25 Td (Thus, the value of the GKK Properties may decline if the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (subsequently discovers environmental problems with the GKK Properties.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (Legal Matters) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 344.25 Td (From time to time, the Company is party to legal proceedings that arise in the ordinary course of its business. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (Management is not aware of any legal proceedings the outcome of which is probable or reasonably possible to have a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.13 320.25 Td (fect on the Company’) Tj ET Q q 0 0 0 rg BT 176.49 320.25 Td (s results of operations or financial condition, which would require accrual or disclosure of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (contingency and possible range of loss. ) Tj ET Q q 0 0 0 rg BT 211.14 308.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 261.04 308.25 Td (, the Company has not recorded any loss contingencies related to legal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (proceedings in which the potential loss is deemed to be remote.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 272.25 Td (14. ) Tj ET Q q 0 0 0 rg BT 68.00 272.25 Td (SUBSEQUENT) Tj ET Q q 0 0 0 rg BT 135.07 272.25 Td ( EVENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 254.25 Td (The Company evaluates subsequent events up until the date the consolidated financial statements are issued.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 236.25 Td (Distribution Declar) Tj ET Q q 0 0 0 rg BT 132.87 236.25 Td (ed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 218.25 Td (On ) Tj ET Q q 0 0 0 rg BT 86.67 218.25 Td (August 1) Tj ET Q q 0 0 0 rg BT 122.69 218.25 Td (1, 2015, the Company’) Tj ET Q q 0 0 0 rg BT 214.07 218.25 Td (s board of directors declared a distribution in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.28 218.25 Td ($0.025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.78 218.25 Td ( per share of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.25 Td (common stock to stockholders of record as of the close of business on September 18, 2015. ) Tj ET Q q 0 0 0 rg BT 420.02 206.25 Td (The Company expects to pay this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.25 Td (distribution on or about September 25, 2015.) Tj ET Q endstream endobj 61 0 obj <>] /Rotate 0 /Contents 62 0 R>> endobj 62 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (The following discussion and analysis should be read in conjunction with the accompanying financial statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 165.96 692.10 Td (T) Tj ET Q q 0 0 0 rg BT 171.72 692.10 Td (rust, Inc. and the notes thereto. ) Tj ET Q q 0 0 0 rg BT 299.47 692.10 Td (As used herein, the terms “we,” “our” and “us” refer to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 165.96 680.10 Td (T) Tj ET Q q 0 0 0 rg BT 171.72 680.10 Td (rust, Inc., a Maryland corporation, and, as required by context, KBS Limited Partnership, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (Delaware limited partnership, which we refer to as the “Operating Partnership,” and to their subsidiaries.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (Forward-Looking Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (Certain statements included in this Quarterly Report on Form 10-Q are forward-looking statements. ) Tj ET Q q 0 0 0 rg BT 476.83 632.10 Td (Those statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (include statements regarding the intent, belief or current expectations of KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 456.14 620.10 Td (T) Tj ET Q q 0 0 0 rg BT 461.89 620.10 Td (rust, Inc. and members ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (of words such as “may) Tj ET Q q 0 0 0 rg BT 139.94 596.10 Td (,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should” or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (similar expressions. ) Tj ET Q q 0 0 0 rg BT 133.38 584.10 Td (Actual results may dif) Tj ET Q q 0 0 0 rg BT 221.79 584.10 Td (fer materially from those contemplated by such forward-looking statements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (Further) Tj ET Q q 0 0 0 rg BT 78.54 572.10 Td (, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (operating results over time, unless required by law) Tj ET Q q 0 0 0 rg BT 251.02 548.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 530.10 Td (The following are some of the risks and uncertainties, although not all of the risks and uncertainties, that could cause our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (actual results to dif) Tj ET Q q 0 0 0 rg BT 125.69 518.10 Td (fer materially from those presented in our forward-looking statements:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 500.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 500.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 500.10 Td (e are the first publicly of) Tj ET Q q 0 0 0 rg BT 197.03 500.10 Td (fered investment program sponsored by the af) Tj ET Q q 0 0 0 rg BT 380.68 500.10 Td (filiates of our external advisor) Tj ET Q q 0 0 0 rg BT 500.80 500.10 Td (, KBS Capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 488.10 Td (Advisors LLC, which makes our future performance dif) Tj ET Q q 0 0 0 rg BT 313.64 488.10 Td (ficult to predict. Our stockholders should not assume that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 476.10 Td (performance will be similar to the past performance of other real estate investment programs sponsored by af) Tj ET Q q 0 0 0 rg BT 526.33 476.10 Td (filiates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 464.10 Td (of our advisor) Tj ET Q q 0 0 0 rg BT 145.55 464.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 449.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 449.10 Td (All of our executive of) Tj ET Q q 0 0 0 rg BT 180.90 449.10 Td (ficers and some of our directors and other key real estate and debt finance professionals are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 437.10 Td (also of) Tj ET Q q 0 0 0 rg BT 116.76 437.10 Td (ficers, directors, managers, key professionals and/or holders of a direct or indirect controlling interest in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 425.10 Td (advisor) Tj ET Q q 0 0 0 rg BT 119.04 425.10 Td (, the entity that acted as our dealer manager and/or other KBS-af) Tj ET Q q 0 0 0 rg BT 377.09 425.10 Td (filiated entities. ) Tj ET Q q 0 0 0 rg BT 443.74 425.10 Td (As a result, they face ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 413.10 Td (conflicts of interest, including significant conflicts created by our advisor) Tj ET Q q 0 0 0 rg BT 383.62 413.10 Td (’) Tj ET Q q 0 0 0 rg BT 386.40 413.10 Td (s compensation arrangements with us and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 401.10 Td (other KBS-sponsored programs and KBS-advised investors and conflicts in allocating time among us and these other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 389.10 Td (programs and investors. ) Tj ET Q q 0 0 0 rg BT 190.63 389.10 Td (These conflicts could result in unanticipated actions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 374.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 374.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 374.10 Td (e pay substantial fees to and expenses of our advisor and its af) Tj ET Q q 0 0 0 rg BT 347.28 374.10 Td (filiates. ) Tj ET Q q 0 0 0 rg BT 381.81 374.10 Td (These payments increase the risk that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 362.10 Td (stockholders will not earn a profit on their investment in us and increase the risk of loss to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 347.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 347.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 347.10 Td (e depend on tenants for the revenue generated by our real estate investments and, accordingly) Tj ET Q q 0 0 0 rg BT 472.01 347.10 Td (, the revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 335.10 Td (generated by our real estate investments is dependent upon the success and economic viability of our tenants. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 323.10 Td (Revenues from our properties could decrease due to a reduction in occupancy \(caused by factors including, but not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 311.10 Td (limited to, tenant defaults, tenant insolvency) Tj ET Q q 0 0 0 rg BT 266.81 311.10 Td (, early termination of tenant leases and non-renewal of existing tenant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 299.10 Td (leases\) and/or lower rental rates, making it more dif) Tj ET Q q 0 0 0 rg BT 296.69 299.10 Td (ficult for us to meet our debt service obligations and reducing our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 287.10 Td (stockholders’) Tj ET Q q 0 0 0 rg BT 143.13 287.10 Td ( returns.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 272.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 272.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 272.10 Td (e may not be able to refinance some or all of our existing indebtedness or to obtain additional debt financing on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 260.10 Td (attractive terms. If we are not able to refinance existing indebtedness on attractive terms at or prior to its maturity) Tj ET Q q 0 0 0 rg BT 545.02 260.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 248.10 Td (may be forced to dispose of our assets sooner than we otherwise would and/or our lenders may take action against us. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 233.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 233.10 Td (Our investments in real estate and real estate loans may be af) Tj ET Q q 0 0 0 rg BT 333.89 233.10 Td (fected by unfavorable real estate market and general ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 221.10 Td (economic conditions, which could decrease the value of those assets and reduce the investment return to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 209.10 Td (stockholders. Revenues from our real property investments could decrease, making it more dif) Tj ET Q q 0 0 0 rg BT 469.99 209.10 Td (ficult for us to meet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 197.10 Td (our debt service obligations. Revenues from the properties and other assets directly or indirectly securing our loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 185.10 Td (investments could decrease, making it more dif) Tj ET Q q 0 0 0 rg BT 278.93 185.10 Td (ficult for the borrowers under those loans to meet their payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 173.10 Td (obligations to us. In addition, decreases in revenues from the properties directly or indirectly securing our loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 161.10 Td (investments could result in decreased valuations for those properties, which could make it dif) Tj ET Q q 0 0 0 rg BT 463.05 161.10 Td (ficult for our borrowers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 149.10 Td (to repay or refinance their obligations to us. ) Tj ET Q q 0 0 0 rg BT 269.77 149.10 Td (These factors could make it more dif) Tj ET Q q 0 0 0 rg BT 416.75 149.10 Td (ficult for us to meet our debt service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 137.10 Td (obligations and could reduce our stockholders’) Tj ET Q q 0 0 0 rg BT 276.71 137.10 Td ( return.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 122.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 122.10 Td (Disruptions in the financial markets and uncertain economic conditions could adversely af) Tj ET Q q 0 0 0 rg BT 451.10 122.10 Td (fect our ability to meet our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 110.10 Td (debt service obligations and cash needs, reducing the value of our stockholders’) Tj ET Q q 0 0 0 rg BT 408.60 110.10 Td ( investment in us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 95.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 95.10 Td (Certain of our debt obligations have variable interest rates and related payments that vary with the movement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 83.10 Td (LIBOR or other indexes. Increases in these indexes could increase the amount of our debt payments and reduce our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 71.10 Td (stockholders’) Tj ET Q q 0 0 0 rg BT 143.13 71.10 Td ( return.) Tj ET Q endstream endobj 63 0 obj <>] /Rotate 0 /Contents 64 0 R>> endobj 64 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 704.10 Td (Our share redemption program provides only for redemptions sought upon a stockholder) Tj ET Q q 0 0 0 rg BT 445.01 704.10 Td (’) Tj ET Q q 0 0 0 rg BT 447.79 704.10 Td (s death, “qualifying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 692.10 Td (disability” or “determination of incompetence” \(each as defined in the share redemption program and, together with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 680.10 Td (redemptions in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 272.83 680.10 Td (’) Tj ET Q q 0 0 0 rg BT 275.61 680.10 Td (s death, “special redemptions”\). ) Tj ET Q q 0 0 0 rg BT 407.88 680.10 Td (The dollar amounts available for such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 668.10 Td (redemptions are determined by our board of directors and may be reviewed and adjusted from time to time. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 656.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 139.90 656.10 Td (, redemptions are further subject to limitations described in our share redemption program. ) Tj ET Q q 0 0 0 rg BT 507.39 656.10 Td (W) Tj ET Q q 0 0 0 rg BT 516.03 656.10 Td (e currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 644.10 Td (do not expect to have funds available for ordinary redemptions in the future. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 629.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 629.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 629.10 Td (e may not be able to successfully operate and/or sell the GKK Properties \(defined below\) given current economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 617.10 Td (conditions and the concentration of the GKK Properties in the financial services sector) Tj ET Q q 0 0 0 rg BT 436.16 617.10 Td (, the significant debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 605.10 Td (obligations we have assumed with respect to such GKK Properties, and our advisor) Tj ET Q q 0 0 0 rg BT 423.91 605.10 Td (’) Tj ET Q q 0 0 0 rg BT 426.69 605.10 Td (s limited experience operating, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 593.10 Td (managing and selling bank branch properties. Moreover) Tj ET Q q 0 0 0 rg BT 316.20 593.10 Td (, we depend upon GKK Realty ) Tj ET Q q 0 0 0 rg BT 441.45 593.10 Td (Advisors LLC \(the “Property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 581.10 Td (Manager”\), an af) Tj ET Q q 0 0 0 rg BT 157.83 581.10 Td (filiate of Gramercy \(defined below\), to manage and conduct the operations of the GKK Properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 569.10 Td (and any adverse changes in or the termination of our relationship with the Property Manager could hinder the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 557.10 Td (performance of the GKK Properties and the return on our stockholders’) Tj ET Q q 0 0 0 rg BT 375.28 557.10 Td ( investment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 542.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 542.10 Td (As a result of the transfer of the GKK Properties to us, a significant portion of our properties are leased to financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 530.10 Td (institutions, making us more economically vulnerable in the event of a downturn in the banking industry) Tj ET Q q 0 0 0 rg BT 507.05 530.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 512.10 Td (All forward-looking statements should be read in light of the risks identified in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 450.93 512.10 Td ( of our ) Tj ET Q q 0 0 0 rg BT 479.54 512.10 Td (Annual Report on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (Form 10-K for the year ended December 31, 2014 herein and filed with the Securities and Exchange Commission \(the “SEC”\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 464.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 464.10 Td (e are a Maryland corporation that was formed on June 13, 2005 to invest in a diverse portfolio of real estate properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (and real estate-related investments. ) Tj ET Q q 0 0 0 rg BT 194.81 452.10 Td (W) Tj ET Q q 0 0 0 rg BT 203.45 452.10 Td (e elected to be taxed as a real estate investment trust \(“REIT”\) beginning with the taxable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (year ended December 31, 2006 and we intend to continue to operate in such a manner) Tj ET Q q 0 0 0 rg BT 392.16 440.10 Td (. ) Tj ET Q q 0 0 0 rg BT 399.48 440.10 Td (W) Tj ET Q q 0 0 0 rg BT 408.11 440.10 Td (e own substantially all of our assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (and conduct our operations through our Operating Partnership, of which we are the sole general partner) Tj ET Q q 0 0 0 rg BT 462.70 428.10 Td (. Subject to certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (restrictions and limitations, our business is managed by KBS Capital ) Tj ET Q q 0 0 0 rg BT 326.42 416.10 Td (Advisors pursuant to an advisory agreement. Our advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (owns 20,000 shares of our common stock. ) Tj ET Q q 0 0 0 rg BT 223.19 404.10 Td (W) Tj ET Q q 0 0 0 rg BT 231.82 404.10 Td (e have no paid employees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 386.10 Td (On January 27, 2006, we launched our initial public of) Tj ET Q q 0 0 0 rg BT 291.88 386.10 Td (fering of up to 200,000,000 shares of common stock in our primary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 374.10 Td (fering and 80,000,000 shares of common stock under our dividend reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 405.17 374.10 Td (W) Tj ET Q q 0 0 0 rg BT 413.81 374.10 Td (e ceased of) Tj ET Q q 0 0 0 rg BT 458.04 374.10 Td (fering shares of common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (stock in our primary of) Tj ET Q q 0 0 0 rg BT 141.52 362.10 Td (fering on May 30, 2008. ) Tj ET Q q 0 0 0 rg BT 243.55 362.10 Td (W) Tj ET Q q 0 0 0 rg BT 252.19 362.10 Td (e terminated our dividend reinvestment plan ef) Tj ET Q q 0 0 0 rg BT 439.16 362.10 Td (fective ) Tj ET Q q 0 0 0 rg BT 468.31 362.10 Td (April 10, 2012. ) Tj ET Q q 0 0 0 rg BT 534.24 362.10 Td (W) Tj ET Q q 0 0 0 rg BT 542.88 362.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.67 350.10 Td (171,109,494) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.67 350.10 Td ( shares in our primary of) Tj ET Q q 0 0 0 rg BT 217.07 350.10 Td (fering for gross of) Tj ET Q q 0 0 0 rg BT 289.37 350.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.62 350.10 Td ($1.7 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.73 350.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.17 350.10 Td (28,306,086) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.17 350.10 Td ( shares under our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (dividend reinvestment plan for gross of) Tj ET Q q 0 0 0 rg BT 206.79 338.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.03 338.10 Td ($233.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.92 338.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 320.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 320.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 320.10 Td (, we owned or) Tj ET Q q 0 0 0 rg BT 210.02 320.10 Td (, with respect to a limited number of properties, held a leasehold interest in, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.66 320.10 Td (392) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.66 320.10 Td ( real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (estate properties, including the GKK Properties. In addition, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.21 308.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.04 308.10 Td (, we owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.37 308.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.03 308.10 Td ( real estate loans receivable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (and a participation interest with respect to a real estate joint venture.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 278.10 Td (On September 1, 201) Tj ET Q q 0 0 0 rg BT 158.11 278.10 Td (1, we, through indirect wholly owned subsidiaries \(collectively) Tj ET Q q 0 0 0 rg BT 409.91 278.10 Td (, “KBS”\), entered into a Collateral ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 266.10 Td (ransfer and Settlement ) Tj ET Q q 0 0 0 rg BT 147.17 266.10 Td (Agreement \(the “Settlement ) Tj ET Q q 0 0 0 rg BT 261.30 266.10 Td (Agreement”\) with, among other parties, GKK Stars ) Tj ET Q q 0 0 0 rg BT 469.30 266.10 Td (Acquisition LLC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (\(“GKK Stars”\), the wholly owned subsidiary of Gramercy Property ) Tj ET Q q 0 0 0 rg BT 322.03 254.10 Td (T) Tj ET Q q 0 0 0 rg BT 327.79 254.10 Td (rust, Inc. \(“Gramercy”\) that indirectly owned the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (Gramercy real estate portfolio, to ef) Tj ET Q q 0 0 0 rg BT 192.59 242.10 Td (fect the orderly transfer of certain assets and liabilities of the Gramercy real estate portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (to KBS in satisfaction of certain debt obligations under a mezzanine loan owed by wholly owned subsidiaries of Gramercy to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (KBS \(the “GKK Mezzanine Loan”\). ) Tj ET Q q 0 0 0 rg BT 200.10 218.10 Td (The Settlement ) Tj ET Q q 0 0 0 rg BT 262.86 218.10 Td (Agreement resulted in the transfer of the equity interests in certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (subsidiaries of Gramercy \(the “Equity Interests”\) that indirectly owned or) Tj ET Q q 0 0 0 rg BT 343.72 206.10 Td (, with respect to a limited number of properties, held a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (leasehold interest in, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.48 194.10 Td (867) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.48 194.10 Td ( properties \(the “GKK Properties”\), consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.31 194.10 Td (576) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.31 194.10 Td ( bank branch properties and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.88 194.10 Td (291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.88 194.10 Td ( of) Tj ET Q q 0 0 0 rg BT 502.53 194.10 Td (fice buildings, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (operations centers and other properties. For a further discussion of the Settlement ) Tj ET Q q 0 0 0 rg BT 379.41 182.10 Td (Agreement, the transfers of the GKK ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (Properties and the debt related to these properties, see our ) Tj ET Q q 0 0 0 rg BT 282.48 170.10 Td (Annual Report on Form 10-K for the year ended December 31, 201) Tj ET Q q 0 0 0 rg BT 552.03 170.10 Td (1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (filed with the SEC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 140.10 Td (Our focus in 2015 is to manage our existing investment portfolio, which includes strategically selling assets and exploring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (value-add opportunities for existing assets \(primarily certain of the GKK Properties\), refinancing upcoming maturities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (paying down debt, and distributing available cash to stockholders.) Tj ET Q endstream endobj 65 0 obj <>] /Rotate 0 /Contents 66 0 R>> endobj 66 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (Our charter requires that we seek stockholder approval of our liquidation if our shares of common stock are not listed on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (a national securities exchange by November 2012, unless a majority of our independent directors determines that liquidation is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (not then in the best interest of our stockholders. Pursuant to our charter requirement, the conflicts committee assessed our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (portfolio of investments and related debt financings, including the assets and liabilities transferred to us under the Settlement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (Agreement in satisfaction of certain debt obligations owed to us by wholly owned subsidiaries of Gramercy) Tj ET Q q 0 0 0 rg BT 479.58 656.10 Td (. ) Tj ET Q q 0 0 0 rg BT 486.90 656.10 Td (The conflicts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (committee also considered the prepayment penalties associated with certain debt obligations assumed by us under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (Settlement ) Tj ET Q q 0 0 0 rg BT 94.22 632.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 145.96 632.10 Td (T) Tj ET Q q 0 0 0 rg BT 151.37 632.10 Td (aking into consideration our portfolio and current market conditions, in November 2012, November ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (2013 and November 2014, the conflicts committee unanimously determined that liquidation is not now in the best interests of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (our stockholders. Our charter requires that the conflicts committee revisit the issue of liquidation at least annually) Tj ET Q q 0 0 0 rg BT 505.94 608.10 Td (. Given the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (factors noted above, the conflicts committee believes it may reach the same conclusion next year) Tj ET Q q 0 0 0 rg BT 436.30 596.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (Market Outlook – Real Estate and Real Estate Finance Markets) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (The following discussion is based on management’) Tj ET Q q 0 0 0 rg BT 252.09 560.10 Td (s beliefs, observations and expectations with r) Tj ET Q q 0 0 0 rg BT 436.42 560.10 Td (espect to the r) Tj ET Q q 0 0 0 rg BT 492.42 560.10 Td (eal estate and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (r) Tj ET Q q 0 0 0 rg BT 53.02 548.10 Td (eal estate finance markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 530.10 Td (The global capital markets remain volatile as the world’) Tj ET Q q 0 0 0 rg BT 296.76 530.10 Td (s economic growth has been af) Tj ET Q q 0 0 0 rg BT 420.15 530.10 Td (fected by geopolitical and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (economic events in Europe, the Middle East and ) Tj ET Q q 0 0 0 rg BT 245.28 518.10 Td (Asia throughout the summer of 2015, such as the Greek sovereign debt crisis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (and the fall of the Chinese stock markets. ) Tj ET Q q 0 0 0 rg BT 219.83 506.10 Td (The rise of the Islamic State and the struggle between the Ukrainian government and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (pro-Russian rebels have kept the U.S. and its allies engaged in international conflicts. ) Tj ET Q q 0 0 0 rg BT 396.17 494.10 Td (The slowdown in global economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (growth, and in particular the slowing of the Chinese economy) Tj ET Q q 0 0 0 rg BT 296.01 482.10 Td (, has had a ripple ef) Tj ET Q q 0 0 0 rg BT 374.13 482.10 Td (fect through the ener) Tj ET Q q 0 0 0 rg BT 456.97 482.10 Td (gy and commodity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (markets. Decreasing demand for commodities and in particular oil, has led to a steep price decline in most commodity market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (prices which has, in turn, threatened the economies of commodity dependent nations. In the United States, the Federal Reserve ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (seeks to normalize interest rates with the anticipated increase in rates in 2015. In this type of economic environment the level of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (uncertainty and volatility has increased. ) Tj ET Q q 0 0 0 rg BT 213.43 434.10 Td (While the U.S. economy has rebounded from the recent recession, the remainder of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (world’) Tj ET Q q 0 0 0 rg BT 75.61 422.10 Td (s industrialized and emer) Tj ET Q q 0 0 0 rg BT 175.67 422.10 Td (ging economies have struggled to maintain even low levels of economic growth.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 404.10 Td (Central bank interventions continue to bolster the global economy) Tj ET Q q 0 0 0 rg BT 337.23 404.10 Td (. In 2012, Japan embarked on a massive quantitative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (easing \(“QE”\) program designed to kickstart its economy) Tj ET Q q 0 0 0 rg BT 278.50 392.10 Td (. ) Tj ET Q q 0 0 0 rg BT 285.82 392.10 Td (T) Tj ET Q q 0 0 0 rg BT 291.23 392.10 Td (o date, the program has led to lower Japanese interest rates, a run ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (up in the Japanese stock markets and a devaluation of the yen. In Europe, the European Central Bank \(ECB\) announced its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (own QE program in January 2015. ) Tj ET Q q 0 0 0 rg BT 192.63 368.10 Td (The long awaited announcement has led to lower European interest rates and a weakening ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (of the Euro against other currencies. In China, the central government has struggled to control its shadow banking system. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (Recent crackdowns on corruption and the intervention of the government into the country’) Tj ET Q q 0 0 0 rg BT 411.06 344.10 Td (s falling stock market have increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (the level of investor uncertainty) Tj ET Q q 0 0 0 rg BT 176.03 332.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 314.10 Td (The Federal Reserve has maintained an accommodative monetary policy since the beginning of the 2008 financial crisis. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (Through a variety of monetary tools and programs, the Federal Reserve injected trillions of U.S. dollars into the global financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (markets. ) Tj ET Q q 0 0 0 rg BT 88.47 290.10 Td (The U.S. QE program focused on the purchase of U.S. treasury bonds and mortgage backed securities. In October ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (2014, the Federal Reserve concluded the most recent phase of QE. ) Tj ET Q q 0 0 0 rg BT 320.34 278.10 Td (The end of this program shifted investor focus to the timing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (of an eventual interest rate increase by the Federal Reserve. ) Tj ET Q q 0 0 0 rg BT 292.54 266.10 Td (While it is unclear whether such an increase will happen in 2015 or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (2016, it now appears likely that an increase is in the Federal Reserve’) Tj ET Q q 0 0 0 rg BT 326.91 254.10 Td (s plans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 236.10 Td (In the United States, recent economic data has shown moderate economic growth. ) Tj ET Q q 0 0 0 rg BT 406.27 236.10 Td (The labor force participation rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (continues to be low and personal income growth has remained stagnant. However) Tj ET Q q 0 0 0 rg BT 378.73 224.10 Td (, slow and steady growth in the labor markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (has driven unemployment down to 5.3% as of June 2015. Consumer spending in the United States has increased, and is being ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (driven by lower debt service burdens, record high stock market valuations, rebounding home prices and a dramatic decrease in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (the cost of gasoline. Consumer confidence levels are starting to reach levels last seen in the 1990s. U.S. gross domestic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (product \(“U.S. GDP”\) has continued to grow at a moderate annualized rate. On an annual basis, U.S. GDP) Tj ET Q q 0 0 0 rg BT 477.35 176.10 Td ( growth in 2014 was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (2.4%, which was an improvement over 2013’) Tj ET Q q 0 0 0 rg BT 231.13 164.10 Td (s growth rate of 1.5%. In the second half of 2014, the U.S. dollar began to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (appreciate against the currencies of other nations. However) Tj ET Q q 0 0 0 rg BT 288.72 152.10 Td (, the ef) Tj ET Q q 0 0 0 rg BT 316.02 152.10 Td (fects of a strong dollar and weak international economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (growth began to materialize in the form of reduced corporate earnings in the fourth quarter of 2014. ) Tj ET Q q 0 0 0 rg BT 453.34 140.10 Td (This trend continued in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (first quarter of 2015, where U.S. GDP) Tj ET Q q 0 0 0 rg BT 201.60 128.10 Td ( increased at an annual rate of 0.6%.) Tj ET Q endstream endobj 67 0 obj <>] /Rotate 0 /Contents 68 0 R>> endobj 68 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (The U.S. dollar has remained a safe haven currency and the U.S. commercial real estate market has benefited from an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (inflow of foreign capital. Initially) Tj ET Q q 0 0 0 rg BT 182.98 692.10 Td (, gateway markets such as New ) Tj ET Q q 0 0 0 rg BT 310.62 692.10 Td (Y) Tj ET Q q 0 0 0 rg BT 316.84 692.10 Td (ork City and San Francisco benefited from a high demand ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (for commercial properties. In 2014, the commercial real estate market recovery spread to secondary and tertiary markets, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (most asset classes. ) Tj ET Q q 0 0 0 rg BT 125.97 668.10 Td (The U.S. commercial real estate market has gained favor as an alternative investment class and capital flows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (continue to improve. In 2015, commercial property values have continued to rise and the U.S. commercial real estate market is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (currently on pace to set a record in transaction volume. However) Tj ET Q q 0 0 0 rg BT 310.67 644.10 Td (, the recovery in commercial real estate is expected to remain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (uneven across geographies and among property types.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 614.10 Td (As the dollar strengthens, the flow of capital into the United States could be curtailed. International demand for U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (assets has been driven, in part, by the perception that U.S. real assets and the U.S. dollar are safe havens from some market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (risks. ) Tj ET Q q 0 0 0 rg BT 75.34 590.10 Td (A) Tj ET Q q 0 0 0 rg BT 82.01 590.10 Td ( decrease in flow of capital into the United States could lead to a decrease in the demand for U.S. commercial real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (estate assets, and result in a decline in commercial real estate values.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 560.10 Td (After several years of improving market conditions, the recovery in the U.S. residential real estate market has slowed. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (The initial recovery was driven by low interest rates, pent-up demand from the consumer sector and institutional investors in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (the form of buy-to-rent portfolios. In 2015, investor demand for homes has slowed and the housing market appears to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (heading into a consolidation phase as several institutional investors seek an exit to repay investors. ) Tj ET Q q 0 0 0 rg BT 448.58 524.10 Td (All cash purchases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (homes, an indicator of institutional investor activity) Tj ET Q q 0 0 0 rg BT 255.75 512.10 Td (, has dropped dramatically) Tj ET Q q 0 0 0 rg BT 361.18 512.10 Td (. New home construction numbers have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (driven lar) Tj ET Q q 0 0 0 rg BT 87.91 500.10 Td (gely by the construction of multifamily projects.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 482.10 Td (Overall, despite indications of recovery in the United States, uncertainties abound. China’) Tj ET Q q 0 0 0 rg BT 432.29 482.10 Td (s export-based economy has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (slowed and the Japanese government continues to experiment with QE. ) Tj ET Q q 0 0 0 rg BT 339.80 470.10 Td (The EU is faced with the economic collapse of Greece, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (another recession and military conflict in the Ukraine. In the United States, the Federal Reserve completed the latest phase of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (QE in 2014 and is now faced with the impact of a strong dollar and the anticipation of increasing interest rates. In the short-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (term, we anticipate that market conditions will continue to remain strong and volatile. ) Tj ET Q q 0 0 0 rg BT 397.56 434.10 Td (When combined with a challenging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (global macro-economic environment, these conditions may interfere with the implementation of our business strategy and/or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (force us to modify it.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (Impact on Our Real Estate Investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 377.10 Td (The economic events that have occurred since the onset of the recession in 2008 have no precedent. ) Tj ET Q q 0 0 0 rg BT 476.78 377.10 Td (While current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td (forecasts for the U.S. economy are positive, there is a level of uncertainty inherent to this outlook. Currently) Tj ET Q q 0 0 0 rg BT 484.29 365.10 Td (, both the investing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (and leasing environments are highly competitive. ) Tj ET Q q 0 0 0 rg BT 251.49 353.10 Td (While there has been an increase in the amount of capital flowing into U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (real estate markets, which has resulted in an increase in real estate values in certain markets, the uncertainty regarding the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (economic environment has made businesses reluctant to make long-term commitments or changes in their business plans. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (Possible future declines in rental rates, slower or potentially negative net absorption of leased space and expectations of future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (rental concessions, including free rent to renew tenants early) Tj ET Q q 0 0 0 rg BT 291.26 305.10 Td (, to retain tenants who are up for renewal or to attract new tenants, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (may result in decreases in cash flows. Historically low interest rates could help of) Tj ET Q q 0 0 0 rg BT 378.39 293.10 Td (fset some of the impact of these potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (decreases in operating cash flow for properties financed with variable rate mortgages; however) Tj ET Q q 0 0 0 rg BT 428.94 281.10 Td (, interest rates likely will not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (remain at these historically low levels for the remaining life of many of our investments. Interest rates have become more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (volatile as the global capital markets react to increasing economic and geopolitical risks.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (Impact on Our Real Estate-Related Investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 224.10 Td (All of our real estate-related investments are directly or indirectly secured by commercial real estate. ) Tj ET Q q 0 0 0 rg BT 480.82 224.10 Td (As a result, our real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (estate-related investments, in general, have been and likely will continue to be impacted by the same factors impacting our real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (estate investments. ) Tj ET Q q 0 0 0 rg BT 129.86 200.10 Td (The higher yields and the improving credit position of many U.S. tenants and borrowers have attracted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (global capital. However) Tj ET Q q 0 0 0 rg BT 147.40 188.10 Td (, the real estate and capital markets are fluid, and the positive trends can reverse quickly) Tj ET Q q 0 0 0 rg BT 498.55 188.10 Td (. Economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (conditions remain relatively unstable and can have a negative impact on the performance of collateral securing our loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (investments, and therefore may impact the ability of some borrowers under our loans to make contractual interest payments to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 134.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 134.10 Td (e have fixed rate real estate-related loan investments with a total book value \(excluding asset-specific loan loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (reserves\) of $33.3 million. ) Tj ET Q q 0 0 0 rg BT 159.76 122.10 Td (Assuming our real estate-related loans are fully extended under the terms of the respective loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (agreements and excluding our loan investment with an asset-specific loan loss reserve, we have a real estate-related loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (investment with a book value of $6.9 million maturing within one year from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.22 98.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.05 98.10 Td (. ) Tj ET Q q 0 0 0 rg BT 420.00 98.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.44 98.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.27 98.10 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.98 86.10 Td ($4.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.87 86.10 Td ( of reserves for loan losses related to one of our real estate-related investments. ) Tj ET Q endstream endobj 69 0 obj <>] /Rotate 0 /Contents 70 0 R>> endobj 70 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (33) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Impact on Our Financing ) Tj ET Q q 0 0 0 rg BT 158.60 704.25 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 689.25 Td (In light of the risks associated with potentially volatile operating cash flows from some of our real estate properties, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (may have dif) Tj ET Q q 0 0 0 rg BT 101.52 677.25 Td (ficulty refinancing some of our debt obligations prior to or at maturity or we may not be able to refinance these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (obligations at terms as favorable as the terms of our existing indebtedness. Recent financial market conditions have improved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (from the bottom of the economic cycle, but material risks are still present. Market conditions can change quickly) Tj ET Q q 0 0 0 rg BT 502.60 653.25 Td (, potentially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td (negatively impacting the value of our investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 623.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 623.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 623.25 Td (, we had a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.91 623.25 Td ($374.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.81 623.25 Td ( of fixed rate notes payable and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.81 623.25 Td ($164.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.70 623.25 Td ( of variable rate notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.25 Td (payable. ) Tj ET Q q 0 0 0 rg BT 87.91 611.25 Td (W) Tj ET Q q 0 0 0 rg BT 96.55 611.25 Td (e have $164.1 million of debt maturing \(including principal amortization payments\) during the 12 months ending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.25 Td (June 30, 2016. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 581.25 Td (Liquidity and Capital Resour) Tj ET Q q 0 0 0 rg BT 175.18 581.25 Td (ces) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 563.25 Td (Our principal demands for funds during the short- and long-term are for: the payment of operating expenses, capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.25 Td (expenditures and general and administrative expenses; refinancing upcoming maturities and paying down debt obligations; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.25 Td (special redemptions of common stock pursuant to our share redemption program; and the payment of distributions to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.25 Td (stockholders. ) Tj ET Q q 0 0 0 rg BT 107.37 527.25 Td (T) Tj ET Q q 0 0 0 rg BT 112.78 527.25 Td (o date, we have had six primary sources of capital for meeting our cash requirements:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 509.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 509.25 Td (Proceeds from our primary of) Tj ET Q q 0 0 0 rg BT 208.67 509.25 Td (fering, which closed in 2008;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 494.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 494.25 Td (Debt financings, including mortgage loans, repurchase agreements and credit facilities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 479.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 479.25 Td (Proceeds from common stock issued under our dividend reinvestment plan \(which terminated ef) Tj ET Q q 0 0 0 rg BT 474.72 479.25 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 467.25 Td (April 10, 2012\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 452.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 452.25 Td (Cash flow generated by our real estate and real estate-related investments;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 437.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 437.25 Td (Proceeds from the sales of real estate, real estate loans receivable and real estate securities; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 422.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 422.25 Td (Principal repayments on our real estate loans receivable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 401.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 401.25 Td (e ceased of) Tj ET Q q 0 0 0 rg BT 126.37 401.25 Td (fering shares of common stock in our primary of) Tj ET Q q 0 0 0 rg BT 320.58 401.25 Td (fering on May 30, 2008. ) Tj ET Q q 0 0 0 rg BT 422.61 401.25 Td (W) Tj ET Q q 0 0 0 rg BT 431.25 401.25 Td (e do not currently plan to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (acquire or originate additional real estate or real estate-related investments. ) Tj ET Q q 0 0 0 rg BT 354.74 389.25 Td (W) Tj ET Q q 0 0 0 rg BT 363.38 389.25 Td (e intend to use our cash on hand, proceeds from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (asset sales and principal repayments on our real estate loans receivable as our primary sources of immediate and long-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.25 Td (liquidity) Tj ET Q q 0 0 0 rg BT 82.74 365.25 Td (. ) Tj ET Q q 0 0 0 rg BT 90.06 365.25 Td (T) Tj ET Q q 0 0 0 rg BT 95.47 365.25 Td (o the extent available, we also intend to use cash flow generated by our real estate and real estate-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.25 Td (investments and funds available under our credit facilities. However) Tj ET Q q 0 0 0 rg BT 324.56 353.25 Td (, we have suf) Tj ET Q q 0 0 0 rg BT 377.14 353.25 Td (fered declines in cash flows from these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.25 Td (sources. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 323.25 Td (Our share redemption program provides only for special redemptions. Such redemptions are subject to an annual dollar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.25 Td (limitation. On December 9, 2014, our board of directors approved an annual dollar limitation for redemptions of $10.0 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.25 Td (in the aggregate for the calendar year 2015 \(subject to review and adjustment during the year by our board of directors\), and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.25 Td (further subject to the limitations described in the share redemption program document. Based on historical redemption activity) Tj ET Q q 0 0 0 rg BT 557.60 287.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.25 Td (we believe the $10.0 million redemption limitation for the calendar year 2015 will be suf) Tj ET Q q 0 0 0 rg BT 405.05 275.25 Td (ficient for these special redemptions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.25 Td (During each calendar year) Tj ET Q q 0 0 0 rg BT 154.31 263.25 Td (, the annual dollar limitation for our share redemption program will be reviewed and adjusted from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.25 Td (time to time, if necessary) Tj ET Q q 0 0 0 rg BT 149.65 251.25 Td (. ) Tj ET Q q 0 0 0 rg BT 156.97 251.25 Td (W) Tj ET Q q 0 0 0 rg BT 165.61 251.25 Td (e currently do not expect to have funds available for ordinary redemptions in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 233.25 Td (Our focus in 2015 is: to manage our existing investment portfolio, which includes strategically selling assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.25 Td (exploring value-add opportunities for existing assets \(primarily certain of the GKK Properties\), refinancing upcoming ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.25 Td (maturities and paying down debt; and distributing available cash to stockholders. Reducing our debt will allow us to hold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.25 Td (certain assets in our portfolio to improve their value and the returns to our stockholders. ) Tj ET Q q 0 0 0 rg BT 405.62 197.25 Td (W) Tj ET Q q 0 0 0 rg BT 414.26 197.25 Td (e plan to make certain strategic asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.25 Td (sales and, from time to time, may declare special distributions to our stockholders that would be funded with the net proceeds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.25 Td (from those asset sales or from cash flow from other sources. ) Tj ET Q q 0 0 0 rg BT 295.09 173.25 Td (W) Tj ET Q q 0 0 0 rg BT 303.72 173.25 Td (e will continue our existing strategy of selling assets when we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.25 Td (believe the assets have reached the stage that disposition will assist in improving returns to our stockholders. Our board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.25 Td (directors currently expects to authorize and declare distributions on a quarterly basis based on cash flow generated by our real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.25 Td (estate and real estate-related investments. On March 6, 2015, our board of directors declared a distribution in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.25 Td ($0.025 per share of common stock to stockholders of record as of the close of business on March 20, 2015. ) Tj ET Q q 0 0 0 rg BT 482.56 125.25 Td (W) Tj ET Q q 0 0 0 rg BT 491.19 125.25 Td (e paid this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.25 Td (distribution on March 25, 2015. On May 13, 2015, our board of directors declared a distribution in the amount of $0.025 per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.25 Td (share of common stock to stockholders of record as of the close of business on June 19, 2015. ) Tj ET Q q 0 0 0 rg BT 429.52 101.25 Td (W) Tj ET Q q 0 0 0 rg BT 438.16 101.25 Td (e paid this distribution on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.25 Td (June 26, 2015. ) Tj ET Q q 0 0 0 rg BT 112.65 89.25 Td (W) Tj ET Q q 0 0 0 rg BT 121.29 89.25 Td (e funded these distributions with cash flow from operations from the current period and prior periods. ) Tj ET Q q 0 0 0 rg BT 532.67 89.25 Td (W) Tj ET Q q 0 0 0 rg BT 541.31 89.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.25 Td (intend to maintain adequate cash reserves for liquidity) Tj ET Q q 0 0 0 rg BT 265.73 77.25 Td (, capital expenditures, debt repayments, future share redemptions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.25 Td (other future capital needs.) Tj ET Q endstream endobj 71 0 obj <>] /Rotate 0 /Contents 72 0 R>> endobj 72 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (Our investments in real estate generate cash flow in the form of rental revenues and tenant reimbursements, which are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (reduced by operating expenditures, debt service payments, the payment of asset management fees and corporate general and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (administrative expenses. Cash flow from operations from our real estate investments is primarily dependent upon the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (occupancy level of our portfolio, the net ef) Tj ET Q q 0 0 0 rg BT 220.36 668.10 Td (fective rental rates on our leases, the collectibility of rent and operating recoveries ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (from our tenants and how well we manage our expenditures. ) Tj ET Q q 0 0 0 rg BT 296.10 656.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.54 656.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.37 656.10 Td (, our real estate held for investment was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.26 656.10 Td (80%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.59 656.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (occupied.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 626.10 Td (Our real estate-related investments generate cash flow in the form of interest income, which is reduced by the payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (asset management fees and corporate general and administrative expenses. Cash flow from operations from our real estate-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (related investments is primarily dependent on the operating performance of the underlying collateral and the borrowers’) Tj ET Q q 0 0 0 rg BT 528.31 602.10 Td ( ability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (to make debt service payments. ) Tj ET Q q 0 0 0 rg BT 179.74 590.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.18 590.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.01 590.10 Td (, the borrower under the Sandmar Mezzanine Loan was delinquent.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 572.10 Td (As a result of the factors described above, we may experience declines in future cash flow from our real estate and real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (estate-related investments and we expect an increased need for capital to cover leasing costs and capital improvements needed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (to improve the performance of our real estate assets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 530.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.61 530.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.28 530.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.10 530.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.93 530.10 Td (, we met our cash needs for leasing costs, capital expenditures and the payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (debt obligations with cash on hand and proceeds from asset sales. ) Tj ET Q q 0 0 0 rg BT 316.76 518.10 Td (W) Tj ET Q q 0 0 0 rg BT 325.39 518.10 Td (e met our operating cash needs during the same period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (through cash flow generated by our real estate and real estate-related investments. ) Tj ET Q q 0 0 0 rg BT 381.96 506.10 Td (W) Tj ET Q q 0 0 0 rg BT 390.60 506.10 Td (e believe that potential proceeds from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (sale of real estate, cash flow from operations, potential proceeds from the sale or payof) Tj ET Q q 0 0 0 rg BT 396.97 494.10 Td (f of real estate loans receivable and cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (on hand will be suf) Tj ET Q q 0 0 0 rg BT 125.97 482.10 Td (ficient to meet our liquidity needs for the remainder of 2015. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (Cash Flows from Operating ) Tj ET Q q 0 0 0 rg BT 166.93 464.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 449.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 449.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 449.10 Td (, we owned or) Tj ET Q q 0 0 0 rg BT 210.02 449.10 Td (, with respect to a limited number of properties, held a leasehold interest in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.16 449.10 Td (392) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.16 449.10 Td ( real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.10 Td (estate properties. In addition, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.51 437.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.34 437.10 Td (, we owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.66 437.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.32 437.10 Td ( real estate loans receivable and a participation interest with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.10 Td (respect to a real estate joint venture.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 407.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 407.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.72 407.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.54 407.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.37 407.10 Td (, net cash provided by operating activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.82 407.10 Td ($18.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.71 407.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td ($1) Tj ET Q q 0 0 0 rg BT 59.13 395.10 Td (1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.02 395.10 Td ( of net cash provided by operating activities during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.07 395.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.74 395.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.57 395.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.40 395.10 Td (. Net cash from operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (increased in 2015 primarily due to the timing of payments for operating expenses, and a decrease in interest paid as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (debt refinancing and restructuring and debt payof) Tj ET Q q 0 0 0 rg BT 247.02 371.10 Td (fs, which resulted in an overall decrease in ef) Tj ET Q q 0 0 0 rg BT 427.60 371.10 Td (fective interest rates and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (decrease in principal outstanding. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (Cash Flows from Investing ) Tj ET Q q 0 0 0 rg BT 163.60 341.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 326.10 Td (Net cash provided by investing activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.07 326.10 Td ($203.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.96 326.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.34 326.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.01 326.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.83 326.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.66 326.10 Td (. ) Tj ET Q q 0 0 0 rg BT 482.98 326.10 Td (The significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (sources and uses of net cash provided by investing activities were as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 296.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 296.10 Td ($204.9 million of cash provided from the sale of real estate; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 281.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 281.10 Td ($19.0 million of cash used for improvements to real estate; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 266.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 266.10 Td ($14.2 million of cash provided from the sale of foreclosed real estate held for sale; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 251.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 251.10 Td (a $3.7 million decrease in restricted cash for capital expenditures.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (Cash Flows from Financing ) Tj ET Q q 0 0 0 rg BT 168.61 230.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 215.10 Td (Net cash used in financing activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.73 215.10 Td ($147.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.62 215.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.00 215.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.67 215.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.49 215.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.32 215.10 Td (. ) Tj ET Q q 0 0 0 rg BT 464.64 215.10 Td (The significant sources ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (and uses of cash for financing activities were as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 185.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 185.10 Td ($126.2 million of principal payments on notes payable; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 170.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 170.10 Td ($14.1 million of cash used for distributions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 155.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 155.10 Td ($4.4 million of cash used for prepayment premium on the repayment of debt;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 140.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 140.10 Td ($3.1 million of cash used for redemptions of common stock; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 125.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 125.10 Td (a $0.8 million decrease in restricted cash for debt service obligations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 104.10 Td (In addition to using our capital resources to meet our debt service obligations, for leasing costs, for capital expenditures, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.10 Td (for operating costs, to fund special redemptions pursuant to our share redemption program and to pay distributions to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.10 Td (stockholders, we use our capital resources to make certain payments to our advisor) Tj ET Q q 0 0 0 rg BT 380.23 80.10 Td (. ) Tj ET Q q 0 0 0 rg BT 387.55 80.10 Td (W) Tj ET Q q 0 0 0 rg BT 396.19 80.10 Td (e also reimburse our advisor and dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 68.10 Td (manager for certain costs they incur on our behalf. ) Tj ET Q q 0 0 0 rg BT 256.18 68.10 Td (W) Tj ET Q q 0 0 0 rg BT 264.82 68.10 Td (e pay our advisor fees in connection with the management and disposition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 56.10 Td (of our assets.) Tj ET Q endstream endobj 73 0 obj <>] /Rotate 0 /Contents 74 0 R>> endobj 74 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (Among the fees payable to our advisor is an asset management fee. ) Tj ET Q q 0 0 0 rg BT 347.12 704.10 Td (W) Tj ET Q q 0 0 0 rg BT 356.16 704.10 Td (ith respect to investments in real estate, we pay our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (advisor a monthly asset management fee equal to one-twelfth of 0.75% of the amount actually paid or allocated to acquire the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (investment, plus the cost of any subsequent development, construction or improvements to the property) Tj ET Q q 0 0 0 rg BT 462.93 680.10 Td (. ) Tj ET Q q 0 0 0 rg BT 470.25 680.10 Td (This amount includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (any portion of the investment that was debt financed and is inclusive of acquisition fees and expenses related thereto. In the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (case of investments made through joint ventures, the asset management fee is determined based on our proportionate share of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (the underlying investment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 626.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.54 626.10 Td (ith respect to investments in loans and any investments other than real estate, we pay our advisor a monthly asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (management fee calculated, each month, as one-twelfth of 0.75% of the lesser of \(i\) the amount actually paid or allocated to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (acquire or fund the loan or other investment \(which amount includes any portion of the investment that was debt financed and is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (inclusive of acquisition or origination fees and expenses related thereto\) and \(ii\) the outstanding principal amount of such loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (or other investment, plus the acquisition or origination fees and expenses related to the acquisition or funding of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (investment, as of the time of calculation. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 548.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.54 548.10 Td (ith respect to an investment that has suf) Tj ET Q q 0 0 0 rg BT 240.38 548.10 Td (fered an impairment in value, reduction in cash flow or other negative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (circumstances, such investment may either be excluded from the calculation of the asset management fee described above or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (included in such calculation at a reduced value that is recommended by our advisor and our management and then approved by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (a majority of our independent directors, and this change in the fee shall be applicable to an investment upon the earlier to occur ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (of the date on which \(i\) such investment is sold, \(ii\) such investment is surrendered to a person other than the company) Tj ET Q q 0 0 0 rg BT 524.29 500.10 Td (, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (direct or indirect wholly owned subsidiary or a joint venture or partnership in which we have an interest, \(iii\) our advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (determines that it will no longer pursue collection or other remedies related to such investment, or \(iv\) our advisor recommends ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (a revised fee arrangement with respect to such investment. ) Tj ET Q q 0 0 0 rg BT 288.03 464.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.47 464.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.30 464.10 Td (, we excluded our interest in an unconsolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (joint venture from the calculation of asset management fees. ) Tj ET Q q 0 0 0 rg BT 295.62 452.10 Td (W) Tj ET Q q 0 0 0 rg BT 304.26 452.10 Td (e also calculate the asset management fee for the GKK ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (Properties based on the original cost of our investment in the GKK Mezzanine Loan, rather than on the gross value of the GKK ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (Properties we own or in which we hold a leasehold interest. However) Tj ET Q q 0 0 0 rg BT 329.30 428.10 Td (, once the gross value of the GKK properties falls below ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (the original cost of our investment in the GKK Mezzanine Loan, we will calculate the asset management fee based on the gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (value of the GKK Properties. ) Tj ET Q q 0 0 0 rg BT 170.86 404.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.31 404.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.14 404.10 Td (, we had not determined to calculate the asset management fee at an adjusted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (value for any other investments or to exclude any other investments from the calculation of the asset management fee.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 374.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 374.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 374.10 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.87 374.10 Td ($133.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.76 374.10 Td ( of cash and cash equivalents. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 356.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 356.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 356.10 Td (, our borrowings and other liabilities were approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.54 356.10 Td (40%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.88 356.10 Td ( of both the cost \(before deducting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (depreciation or other noncash reserves\) and book value \(before deducting depreciation\) of our tangible assets. ) Tj ET Q q 0 0 0 rg BT 493.32 344.10 Td (W) Tj ET Q q 0 0 0 rg BT 501.96 344.10 Td (e limit our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (total liabilities to 75% of the cost \(before deducting depreciation or other non-cash reserves\) of our tangible assets; however) Tj ET Q q 0 0 0 rg BT 545.05 332.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (may exceed that limit if a majority of the conflicts committee approves each borrowing in excess of that limitation and we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (disclose such borrowing to our stockholders in our next quarterly report with an explanation from the conflicts committee of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (justification for exceeding the total liabilities limitation. ) Tj ET Q endstream endobj 75 0 obj <>] /Rotate 0 /Contents 76 0 R>> endobj 76 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (36) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Contractual Commitments and Contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 686.25 Td (The following is a summary of our contractual obligations as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.94 686.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.77 686.25 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 641.75 186.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.00 641.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 240.00 641.75 62.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.00 641.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.00 641.75 71.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 641.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 641.75 58.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 641.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 641.75 58.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 641.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 641.75 58.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 593.75 186.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.00 593.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 240.00 593.75 62.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.00 593.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.00 593.75 71.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 593.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 593.75 58.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 593.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 593.75 58.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 593.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 593.75 58.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 545.75 186.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.00 545.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 240.00 545.75 62.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.00 545.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.00 545.75 71.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 545.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 545.75 58.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 545.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 545.75 58.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 545.75 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 545.75 58.00 -24.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 655.75 m 302 655.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302 655.75 m 306 655.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 655.75 m 377 655.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 655.75 m 381 655.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 655.75 m 439 655.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 655.75 m 443 655.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 655.75 m 501 655.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 655.75 m 505 655.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 655.75 m 563 655.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 641.75 m 236 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 641.75 m 302 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 641.75 m 377 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 641.75 m 439 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 641.75 m 501 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 641.75 m 563 641.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 660.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.75 659.98 Td (Payments Due During the Years Ending December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 645.98 Td (Contractual Obligations) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 261.75 645.98 Td (Total ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.60 645.98 Td (Remainder of 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 392.15 645.98 Td (2016-2017 ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.15 645.98 Td (2018-2019 ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.20 645.98 Td (Thereafter ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 630.00 Td (Outstanding debt obligations related to historical ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 622.00 Td (portfolio) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 89.50 625.63 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 242.50 622.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 272.80 622.00 Td (226,331) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.50 622.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 622.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.50 622.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.75 622.00 Td (226,331) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.50 622.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 622.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 507.50 622.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 622.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 606.00 Td (Outstanding debt obligations related to the GKK ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 598.00 Td (Properties) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 93.94 601.63 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 242.50 598.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 272.80 598.00 Td (312,090) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.50 598.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 598.00 Td (5,464) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.50 598.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.75 598.00 Td (138,421) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.50 598.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.75 598.00 Td (134,695) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 507.50 598.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 598.00 Td (33,510) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 582.00 Td (Interest payments on outstanding debt obligations ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 574.00 Td (related to historical portfolio) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 153.25 577.63 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 242.50 574.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.80 574.00 Td (6,275) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.50 574.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 574.00 Td (3,451) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.50 574.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.80 574.00 Td (2,824) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.50 574.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 574.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 507.50 574.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 574.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 558.00 Td (Interest payments on outstanding debt obligations ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 550.00 Td (related to the GKK Properties) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 157.03 553.63 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 242.50 550.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 276.80 550.00 Td (65,121) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.50 550.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.80 550.00 Td (10,406) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.50 550.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 550.00 Td (32,896) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.50 550.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 550.00 Td (17,233) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 507.50 550.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 550.00 Td (4,586) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 526.00 Td (Operating leases) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 105.59 529.63 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 242.50 526.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 276.80 526.00 Td (72,988) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.50 526.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 526.00 Td (8,460) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.50 526.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 526.00 Td (28,880) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.50 526.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 526.00 Td (4,179) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 507.50 526.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 526.00 Td (31,469) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.25 Td (_____________________) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 501.65 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 498.25 Td ( ) Tj ET Q q 0 0 0 rg BT 56.65 498.25 Td (Amounts include principal payments under notes payable based on maturity dates of debt obligations as of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 378.25 498.25 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 420.12 498.25 Td (. ) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 489.65 Td (\(2\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 486.25 Td ( Projected interest payments are based on the outstanding principal amounts and weighted-average interest rates as of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 409.04 486.25 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 450.91 486.25 Td (. ) Tj ET Q q 0 0 0 rg BT 456.40 486.25 Td (W) Tj ET Q q 0 0 0 rg BT 462.88 486.25 Td (e incurred interest expense of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 477.25 Td ($14.6 million, excluding amortization of deferred financing costs and the amortization of debt discount and premium totaling $2.2 million, during the ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 500.04 477.25 Td (six) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 508.79 477.25 Td ( months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 468.25 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 91.37 468.25 Td (. ) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 459.65 Td (\(3\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 456.25 Td ( ) Tj ET Q q 0 0 0 rg BT 56.65 456.25 Td (Amounts relate to future minimum lease payments under non-cancelable building and ground leases.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 432.25 Td (Debt Covenants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 417.25 Td (The documents evidencing our outstanding debt obligations typically require that specified loan-to-value and debt service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 405.25 Td (coverage ratios be maintained with respect to the financed properties. ) Tj ET Q q 0 0 0 rg BT 331.61 405.25 Td (A) Tj ET Q q 0 0 0 rg BT 338.28 405.25 Td ( breach of the financial covenants in these documents ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.25 Td (may result in the lender imposing additional restrictions on our operations, such as restrictions on our ability to incur additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.25 Td (debt, or may allow the lender to impose “cash traps” with respect to cash flow from the property securing the loan. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.25 Td (such a breach may constitute an event of default and the lender could require us to repay the debt immediately) Tj ET Q q 0 0 0 rg BT 489.52 369.25 Td (. If we fail to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.25 Td (make such repayment in a timely manner) Tj ET Q q 0 0 0 rg BT 214.04 357.25 Td (, the lender may be entitled to take possession of any property securing the loan. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.25 Td (Except as described below) Tj ET Q q 0 0 0 rg BT 155.20 345.25 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.86 345.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.69 345.25 Td (, we were in compliance with these debt covenants.) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 72 325.9169921875 m 119.5 325.9169921875 l s q 0 0 0 rg BT 72.00 327.25 Td (BBD2 Loan) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 119.50 327.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 312.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 312.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 312.25 Td (, the borrower under the BBD2 Loan was out of debt service coverage compliance. ) Tj ET Q q 0 0 0 rg BT 490.05 312.25 Td (As a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.25 Td (such non-compliance, the loan servicer may impose a “cash trap,” which restricts distributions to us to the budgeted property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.25 Td (operating expenses. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 270.25 Td (Asset Management Services ) Tj ET Q q 0 0 0 rg BT 166.62 270.25 Td (Agreement Related to the GKK Properties) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 255.25 Td (On December 19, 2013, we, through an indirect wholly owned subsidiary \(“KBS ) Tj ET Q q 0 0 0 rg BT 399.27 255.25 Td (Acquisition Sub”\), entered into an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.25 Td (amended and restated asset management services agreement \(the “Amended Services ) Tj ET Q q 0 0 0 rg BT 392.69 243.25 Td (Agreement”\) with the Property Manager ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 231.25 Td (with respect to the GKK Properties. ) Tj ET Q q 0 0 0 rg BT 195.12 231.25 Td (The ef) Tj ET Q q 0 0 0 rg BT 220.75 231.25 Td (fective date of the ) Tj ET Q q 0 0 0 rg BT 294.61 231.25 Td (Amended Services ) Tj ET Q q 0 0 0 rg BT 371.81 231.25 Td (Agreement was December 1, 2013. Pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 219.25 Td (the ) Tj ET Q q 0 0 0 rg BT 63.67 219.25 Td (Amended Services ) Tj ET Q q 0 0 0 rg BT 140.87 219.25 Td (Agreement, the Property Manager agreed to provide, among other services: standard asset management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.25 Td (services, assistance related to dispositions, accounting services and budgeting and business plans for the GKK Properties \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.25 Td (“Services”\). ) Tj ET Q q 0 0 0 rg BT 100.40 195.25 Td (The Property Manager is not af) Tj ET Q q 0 0 0 rg BT 225.46 195.25 Td (filiated with us or KBS ) Tj ET Q q 0 0 0 rg BT 320.18 195.25 Td (Acquisition Sub. ) Tj ET Q q 0 0 0 rg BT 389.36 195.25 Td (As compensation for the Services, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.25 Td (agreed to pay the Property Manager: \(i\) an annual fee of $7.5 million plus all GKK Property-related expenses incurred by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.25 Td (Property Manager) Tj ET Q q 0 0 0 rg BT 121.58 171.25 Td (, \(ii\) subject to certain terms and conditions in the ) Tj ET Q q 0 0 0 rg BT 322.36 171.25 Td (Amended Services ) Tj ET Q q 0 0 0 rg BT 399.56 171.25 Td (Agreement, a profit participation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.25 Td (interest based on a percentage \(ranging from 10% to 30%\) of the amount by which the gross fair market value or gross sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.25 Td (price of certain identified portfolios of GKK Properties exceeds the sum of \(a\) an agreed-upon baseline value for such GKK ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 135.25 Td (Property portfolios plus \(b\) new capital expended to increase the value of GKK Properties within the portfolios and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 123.25 Td (expenditures made to pay for tenant improvements and leasing commissions related to these GKK Properties as of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 111.25 Td (measurement date, and \(iii\) a monthly construction oversight fee equal to a percentage of construction costs for certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.25 Td (construction projects at the GKK Properties overseen by the Property Manager) Tj ET Q q 0 0 0 rg BT 364.41 99.25 Td (.) Tj ET Q endstream endobj 77 0 obj <>] /Rotate 0 /Contents 78 0 R>> endobj 78 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 704.10 Td (The ) Tj ET Q q 0 0 0 rg BT 85.00 704.10 Td (Amended Services ) Tj ET Q q 0 0 0 rg BT 162.20 704.10 Td (Agreement will terminate on December 31, 2016, with a one-year extension option at our option, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (subject to certain terms and conditions contained in the ) Tj ET Q q 0 0 0 rg BT 271.94 692.10 Td (Amended Services ) Tj ET Q q 0 0 0 rg BT 349.14 692.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 400.89 692.10 Td (The ) Tj ET Q q 0 0 0 rg BT 418.38 692.10 Td (Amended Services ) Tj ET Q q 0 0 0 rg BT 495.58 692.10 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (supersedes and replaces all prior agreements related to the Services among us and our af) Tj ET Q q 0 0 0 rg BT 402.52 680.10 Td (filiates and the Property Manager and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (its af) Tj ET Q q 0 0 0 rg BT 69.04 668.10 Td (filiates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (Results of Operations) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 617.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 617.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 617.10 Td (, we owned or) Tj ET Q q 0 0 0 rg BT 210.02 617.10 Td (, with respect to a limited number of properties, held a leasehold interest in, 41) Tj ET Q q 0 0 0 rg BT 524.29 617.10 Td (1 real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.10 Td (estate properties, four real estate loans receivable \(one of which was impaired\), a participation interest with respect to a real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.10 Td (estate joint venture and the ) Tj ET Q q 0 0 0 rg BT 159.56 593.10 Td (T) Tj ET Q q 0 0 0 rg BT 165.32 593.10 Td (ribeca Building with 62 condominium units acquired through foreclosure, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.10 Td (three condominium units were owned by us and were held for sale. Subsequent to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.64 581.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.47 581.10 Td (, we sold two historical of) Tj ET Q q 0 0 0 rg BT 541.17 581.10 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.10 Td (properties and 10 GKK Properties; terminated the lease of five GKK Properties in which we held a leasehold interest; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.10 Td (transferred two GKK Properties to the lenders in connection with foreclosure proceedings; and sold the remaining three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.10 Td (condominium units of the ) Tj ET Q q 0 0 0 rg BT 154.87 545.10 Td (T) Tj ET Q q 0 0 0 rg BT 160.62 545.10 Td (ribeca Building. ) Tj ET Q q 0 0 0 rg BT 229.50 545.10 Td (As a result, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.93 545.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.76 545.10 Td (, we owned or) Tj ET Q q 0 0 0 rg BT 411.01 545.10 Td (, with respect to a limited number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.10 Td (properties, held a leasehold interest in, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.12 533.10 Td (392) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.12 533.10 Td ( real estate properties, four real estate loans receivable \(one of which was impaired\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.10 Td (and a participation interest with respect to a real estate joint venture.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 503.10 Td (In accordance with ) Tj ET Q q 0 0 0 rg BT 151.52 503.10 Td (ASU No. 2014-08, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 229.57 503.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 239.20 503.10 Td (esentation of Financial Statements \(T) Tj ET Q q 0 0 0 rg BT 388.27 503.10 Td (opic 205\) and Pr) Tj ET Q q 0 0 0 rg BT 455.94 503.10 Td (operty) Tj ET Q q 0 0 0 rg BT 480.94 503.10 Td (, Plant, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (Equipment \(T) Tj ET Q q 0 0 0 rg BT 103.30 491.10 Td (opic 360\): Reporting Discontinued Operations and Disclosur) Tj ET Q q 0 0 0 rg BT 349.02 491.10 Td (es of Disposals of Components of an Entity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.52 491.10 Td ( \(“ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (No. 2014-08”\), operating results of properties that are classified as held for sale in the ordinary course of business on or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (subsequent to January 1, 2014 would generally be included in continuing operations on our consolidated statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (operations. Operating results of properties that were classified as held for sale in financial statements issued for the reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (periods prior to reporting periods beginning January 1, 2014 will remain in discontinued operations on our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (statement of operations. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.85 431.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.52 431.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.35 431.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.18 431.10 Td (, we sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.51 431.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.51 431.10 Td ( historical real estate properties and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.89 431.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.88 431.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (GKK Properties, which properties were not classified as held for sale in financial statements issued for the reporting periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (prior to January 1, 2014. During the year ended December 31, 2014, we sold four historical real estate properties and two GKK ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (Properties, transferred a portfolio of five GKK Properties to the lender in satisfaction of the debt and other obligations due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (under the BOA) Tj ET Q q 0 0 0 rg BT 110.05 383.10 Td ( ) Tj ET Q q 0 0 0 rg BT 112.37 383.10 Td (W) Tj ET Q q 0 0 0 rg BT 121.40 383.10 Td (indsor Mortgage Portfolio, and transferred two GKK Properties to the lenders in connection with foreclosure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (proceedings, which properties were not classified as held for sale in financial statements issued for the reporting periods prior to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (January 1, 2014. In accordance with ) Tj ET Q q 0 0 0 rg BT 198.62 359.10 Td (ASU No. 2014-08, the operations of these properties are included in continuing operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (on our consolidated statements of operations. Our results of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.09 347.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.08 347.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.52 347.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.19 347.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.01 347.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.84 347.10 Td ( are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.10 Td (not indicative of those expected in future periods due to anticipated asset sales. In general, we expect that our revenues and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (expenses related to our portfolio will decrease in future periods due to disposition activity) Tj ET Q q 0 0 0 rg BT 407.92 323.10 Td (. ) Tj ET Q endstream endobj 79 0 obj <>] /Rotate 0 /Contents 80 0 R>> endobj 80 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (38) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 72 702.7669921875 m 148.9482421875 702.7669921875 l s q 0 0 0 rg BT 72.00 704.10 Td (Comparison of the ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 148.9482421875 702.7669921875 m 169.1240234375 702.7669921875 l s q 0 0 0 rg BT 148.95 704.10 Td (thr) Tj ET Q q 0 0 0 rg BT 160.25 704.10 Td (ee) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 169.1240234375 702.7669921875 m 229.392578125 702.7669921875 l s q 0 0 0 rg BT 169.12 704.10 Td ( months ended ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 229.392578125 702.7669921875 m 285.76953125 702.7669921875 l s q 0 0 0 rg BT 229.39 704.10 Td (June 30, 2015) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 285.76953125 702.7669921875 m 331.0380859375 702.7669921875 l s q 0 0 0 rg BT 285.77 704.10 Td ( versus the ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 331.0380859375 702.7669921875 m 351.2138671875 702.7669921875 l s q 0 0 0 rg BT 331.04 704.10 Td (thr) Tj ET Q q 0 0 0 rg BT 342.34 704.10 Td (ee) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 351.2138671875 702.7669921875 m 411.482421875 702.7669921875 l s q 0 0 0 rg BT 351.21 704.10 Td ( months ended ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 411.482421875 702.7669921875 m 467.859375 702.7669921875 l s q 0 0 0 rg BT 411.48 704.10 Td (June 30, 2014) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 467.86 704.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 689.10 Td (The following table provides summary information about our results of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.75 689.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.74 689.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.56 689.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 677.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 677.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 677.10 Td ( \(dollar amounts in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 626.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 626.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 626.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 626.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 626.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 626.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 626.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 626.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 626.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 626.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 626.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 626.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 600.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 600.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 600.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 600.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 600.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 600.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 600.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 600.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 600.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 600.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 600.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 600.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 574.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 574.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 574.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 574.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 574.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 574.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 574.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 574.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 574.60 4.00 -13.00 re f 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1 rg /GS0 gs 506.00 522.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 496.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 496.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 496.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 496.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 496.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 496.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 496.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 496.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 496.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 496.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 496.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 496.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 470.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 470.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 470.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 470.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 470.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 470.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 470.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 470.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 470.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 470.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 470.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 470.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 444.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 444.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 444.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 444.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 444.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 444.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 444.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 444.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 444.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 444.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 444.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 444.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 418.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 418.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 418.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 418.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 418.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 418.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 418.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 418.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 418.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 418.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 418.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 418.60 57.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246 654.6 m 299 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 654.6 m 303 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 654.6 m 356 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246 654.6 m 299 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246 626.6 m 299 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 654.6 m 356 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 626.6 m 356 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 626.6 m 401 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 626.6 m 444 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 626.6 m 502 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 626.6 m 563 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246 626.6 m 299 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 626.6 m 356 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 626.6 m 502 626.6 l s BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 658.65 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 255.30 658.66 Td (Three Months Ended June 30,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 367.40 637.66 Td (Incr) Tj ET Q q 0 0 0 rg BT 380.10 637.66 Td (ease) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 364.30 630.66 Td (\(Decr) Tj ET Q q 0 0 0 rg BT 380.88 630.66 Td (ease\) ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 407.50 637.66 Td (Per) Tj ET Q q 0 0 0 rg BT 417.86 637.66 Td (centage ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 412.50 630.66 Td (Change) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 460.40 644.66 Td ($ Change ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 464.65 637.66 Td (Due to ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 452.85 630.66 Td (Dispositions ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 490.78 633.83 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 509.20 658.66 Td ($ Change Due to ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 514.35 651.66 Td (Pr) Tj ET Q q 0 0 0 rg BT 521.61 651.66 Td (operties or) Tj ET Q q 0 0 0 rg BT 553.55 651.66 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 516.75 644.66 Td (Loans Held ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 515.95 637.66 Td (Thr) Tj ET Q q 0 0 0 rg BT 527.49 637.66 Td (oughout ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 511.10 630.66 Td (Both Periods ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 551.54 633.83 Td (\(2\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 630.65 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 265.00 630.66 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 322.00 630.66 Td (2014) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 617.65 Td (Rental income) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 248.50 617.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 276.90 617.65 Td (32,432) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 305.50 617.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 333.90 617.65 Td (38,618) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 617.70 Td (\(6,186) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 617.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 425.95 617.65 Td (\(16) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 617.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 450.50 617.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 617.70 Td (\(6,362) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 617.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 508.50 617.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.65 617.65 Td (176) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 604.65 Td (Tenant reimbursements) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 276.90 604.65 Td (11,133) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 333.90 604.65 Td (14,073) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 604.70 Td (\(2,940) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 604.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 425.95 604.65 Td (\(21) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 604.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 604.70 Td (\(1,112) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 604.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.05 604.70 Td (\(1,828) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 604.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 591.65 Td (Interest income from real estate loans receivable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 285.65 591.65 Td (741) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 342.65 591.65 Td (814) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 388.80 591.70 Td (\(73) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 591.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 429.45 591.65 Td (\(9) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 591.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 492.15 591.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 550.80 591.70 Td (\(73) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 591.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 578.65 Td (Parking revenues and other operating income) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 285.65 578.65 Td (660) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 342.65 578.65 Td (956) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 385.30 578.70 Td (\(296) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 578.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 425.95 578.65 Td (\(31) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 578.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.30 578.70 Td (\(287) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 578.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 554.30 578.70 Td (\(9) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 578.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 565.65 Td (Operating, maintenance and management costs) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 276.90 565.65 Td (17,843) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 333.90 565.65 Td (21,431) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 565.70 Td (\(3,588) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 565.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 425.95 565.65 Td (\(17) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 565.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 565.70 Td (\(2,231) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 565.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.05 565.70 Td (\(1,357) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 565.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 552.65 Td (Real estate taxes, property-related taxes and insurance) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 280.40 552.65 Td (5,865) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 552.65 Td (6,758) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 385.30 552.70 Td (\(893) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 552.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 425.95 552.65 Td (\(13) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 552.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 552.70 Td (\(1,191) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 552.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.65 552.65 Td (298) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 539.65 Td (Asset management fees to affiliate) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 280.40 539.65 Td (2,346) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 539.65 Td (2,530) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 385.30 539.70 Td (\(184) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 539.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 429.45 539.65 Td (\(7) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 539.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.30 539.70 Td (\(193) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 539.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 556.65 539.65 Td (9) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 526.65 Td (General and administrative expenses) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 280.40 526.65 Td (6,047) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 526.65 Td (3,685) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 382.40 526.65 Td (2,362) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 428.30 526.65 Td (64) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.65 526.65 Td (%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.80 526.65 Td (N/A) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 547.80 526.65 Td (N/A) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 513.65 Td (Depreciation and amortization expense) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 276.90 513.65 Td (14,205) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 333.90 513.65 Td (17,961) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 513.70 Td (\(3,756) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 513.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 425.95 513.65 Td (\(21) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 513.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 513.70 Td (\(3,446) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 513.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 547.30 513.70 Td (\(310) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 513.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 500.65 Td (Interest expense) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 280.40 500.65 Td (8,084) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 333.90 500.65 Td (13,036) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 500.70 Td (\(4,952) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 500.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 425.95 500.65 Td (\(38) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 500.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 500.70 Td (\(3,312) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 500.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.05 500.70 Td (\(1,640) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 500.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 487.65 Td (Impairment charge on real estate held for investment) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 289.15 487.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 342.65 487.65 Td (939) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 385.30 487.70 Td (\(939) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 487.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 422.45 487.65 Td (\(100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 487.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.30 487.70 Td (\(939) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 487.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 553.15 487.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 474.65 Td (Provision for loan losses) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 289.15 474.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 474.65 Td (1,973) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 474.70 Td (\(1,973) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 474.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 422.45 474.65 Td (\(100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 474.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 492.15 474.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.05 474.70 Td (\(1,973) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 474.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 461.65 Td (Gain on sales of real estate securities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 289.15 461.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 342.65 461.65 Td (662) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 385.30 461.70 Td (\(662) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 461.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 422.45 461.65 Td (\(100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 461.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.30 461.70 Td (\(662) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 461.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 553.15 461.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 448.65 Td (Gain on sales of real estate, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 276.90 448.65 Td (35,093) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 448.65 Td (2,041) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 378.90 448.65 Td (33,052) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 419.55 448.65 Td (1,619) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.65 448.65 Td (%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 479.90 448.65 Td (33,052) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 553.15 448.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 435.65 Td (\(Loss\) gain from extinguishment of debt) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 278.05 435.65 Td (\(6,385) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 296.15 435.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 435.65 Td (3,297) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 435.70 Td (\(9,682) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 435.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 422.45 435.65 Td (\(294) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 435.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 435.70 Td (\(6,385) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 435.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.05 435.70 Td (\(3,297) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 435.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 422.65 Td (Gain on sales of real estate, net \(discontinued operations\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 289.15 422.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 346.15 422.65 Td (89) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 388.80 422.70 Td (\(89) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 422.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 422.45 422.65 Td (\(100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 422.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.80 422.70 Td (\(89) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 422.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 553.15 422.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 409.65 Td (Loss from discontinued operations) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 290.30 409.65 Td (\(7) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 296.15 409.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 346.15 409.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 392.30 409.70 Td (\(7) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 409.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 424.80 409.65 Td (100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.65 409.65 Td (%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.30 409.70 Td (\(7) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 409.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 553.15 409.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 396.65 Td (Impairment charge on discontinued operations) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 289.15 396.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 343.80 396.70 Td (\(81) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 353.15 396.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 391.15 396.65 Td (81) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 422.45 396.65 Td (\(100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 396.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 492.15 396.65 Td (81) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 553.15 396.65 Td (—) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.10 Td (_____________________) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 372.50 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 369.10 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 227.40 369.10 Td (three) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 242.39 369.10 Td ( months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 288.01 369.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 329.89 369.10 Td ( compared to the ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 381.95 369.10 Td (three) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 396.94 369.10 Td ( months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 442.56 369.10 Td (June 30, 2014) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 484.44 369.10 Td ( related to investments ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 360.10 Td (disposed of on or after ) Tj ET Q q 0 0 0 rg BT 118.44 360.10 Td (April 1, 2014. ) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 351.50 Td (\(2\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 348.10 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 227.40 348.10 Td (three) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 242.39 348.10 Td ( months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 288.01 348.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 329.89 348.10 Td ( compared to the ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 381.95 348.10 Td (three) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 396.94 348.10 Td ( months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 442.56 348.10 Td (June 30, 2014) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 484.44 348.10 Td ( related to real estate and ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 339.10 Td (real estate-related investments owned by us throughout both periods presented. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 315.10 Td (Rental income from our real estate properties decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.95 315.10 Td ($6.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.85 315.10 Td ( primarily due to properties sold, the results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.10 Td (which are included in income from continuing operations. Overall, we expect rental income to decrease in future periods due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 291.10 Td (anticipated real estate property sales. Our rental income in future periods will also vary in lar) Tj ET Q q 0 0 0 rg BT 423.35 291.10 Td (ge part based on the occupancy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 279.10 Td (rates and rental rates of the properties in our portfolio. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 261.10 Td (T) Tj ET Q q 0 0 0 rg BT 78.91 261.10 Td (enant reimbursements from our real estate properties decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.85 261.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.75 261.10 Td ( due to properties sold, the results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.10 Td (which are included in income from continuing operations, and adjustments to prior year property tax recoveries related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.10 Td (GKK Properties held throughout both periods. Our tenant reimbursements in future periods will vary based on several factors, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 225.10 Td (including the occupancy rates of the properties in our portfolio, changes in base year terms, and changes in reimbursable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 213.10 Td (operating expenses. Generally) Tj ET Q q 0 0 0 rg BT 172.14 213.10 Td (, as new leases are negotiated, the base year resets to operating expenses incurred in the year the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 201.10 Td (lease is signed and the tenant generally only reimburses operating expenses to the extent and by the amount that its allocable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 189.10 Td (share of the building’) Tj ET Q q 0 0 0 rg BT 134.76 189.10 Td (s operating expenses in future years increases from its base year) Tj ET Q q 0 0 0 rg BT 390.22 189.10 Td (. ) Tj ET Q q 0 0 0 rg BT 397.17 189.10 Td (As a result, as new leases are executed, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.10 Td (tenant reimbursements would generally decrease. Rental income may or may not change by amounts corresponding to changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.10 Td (in tenant reimbursements due to new leases. Overall, we expect tenant reimbursements to decrease in future periods due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.10 Td (anticipated real estate property sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 135.10 Td (Interest income from real estate loans receivable decreased slightly from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 135.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.04 135.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.42 135.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.41 135.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.23 135.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 123.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 123.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.28 123.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.17 123.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.55 123.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.53 123.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.36 123.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.19 123.10 Td (, due to the decrease in interest recognized from an impaired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 111.10 Td (loan, the Sandmar Mezzanine Loan. In general, we expect interest income in future periods to remain fairly constant, but to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.10 Td (decrease to the extent that we receive principal repayments on or make dispositions of real estate loans receivable. Interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.10 Td (income from real estate loans receivable in future periods may also be af) Tj ET Q q 0 0 0 rg BT 339.75 87.10 Td (fected by potential loan impairments as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.10 Td (current or future market conditions. ) Tj ET Q q 0 0 0 rg BT 196.40 75.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.84 75.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.67 75.10 Td (, the borrower under the Sandmar Mezzanine Loan was delinquent.) Tj ET Q endstream endobj 81 0 obj <>] /Rotate 0 /Contents 82 0 R>> endobj 82 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (If any of the borrowers under our real estate loans receivable are unable to repay their loans at maturity or default on their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (loan, the impact to future interest income and loan recoveries may be significant and will depend on several factors unique to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (each individual loan. In general, if we have a first priority lien on the collateral securing a loan, we may agree to extend the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (loan at similar terms, modify the terms of the loan, or foreclose on the collateral. If we foreclose on the collateral, we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (either operate the property) Tj ET Q q 0 0 0 rg BT 154.63 656.10 Td (, resulting in our receipt of any cash flows generated by the property or our payment of any cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (shortfalls related to the property) Tj ET Q q 0 0 0 rg BT 177.14 644.10 Td (, or sell the property for whatever amount we are able to obtain, which may or may not be equal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (to the loan balance prior to foreclosure. In general, if we own a mezzanine loan or a B-Note and the borrower is unable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (repay its loan at maturity) Tj ET Q q 0 0 0 rg BT 148.82 620.10 Td (, we may have more restrictions and fewer options regarding the resolution of our investment. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (certain circumstances, the senior lenders, in conjunction with us, may be willing to grant the borrower extensions or may grant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (extensions in exchange for more favorable terms \(such as higher interest rates, a partial payof) Tj ET Q q 0 0 0 rg BT 423.34 596.10 Td (f, or the entitlement to a portion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (a junior lender) Tj ET Q q 0 0 0 rg BT 108.18 584.10 Td (’) Tj ET Q q 0 0 0 rg BT 110.96 584.10 Td (s interest income, etc.\). If the senior lenders will not grant the borrower an extension, we, as the mezzanine ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (lender) Tj ET Q q 0 0 0 rg BT 74.08 572.10 Td (, may foreclose on the ownership interests of the borrower and indirectly take legal title to the property subject to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (existing senior loans or we may negotiate a discounted repayment. ) Tj ET Q q 0 0 0 rg BT 320.35 560.10 Td (W) Tj ET Q q 0 0 0 rg BT 328.99 560.10 Td (e could attempt to negotiate an extension or modification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (with the senior lenders as the new borrower; however) Tj ET Q q 0 0 0 rg BT 263.47 548.10 Td (, if the senior lenders were not willing to extend or modify the loans and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (we were not able to repay the senior loans, we would most likely relinquish our interests or rights in the investment to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (holders of the senior loans. ) Tj ET Q q 0 0 0 rg BT 161.98 524.10 Td (Actual outcomes may dif) Tj ET Q q 0 0 0 rg BT 262.61 524.10 Td (fer significantly from the above based on factors specific to individual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (loans and situations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 494.10 Td (Property operating, maintenance and management costs from our real estate properties decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.67 494.10 Td ($3.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.57 494.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (primarily due to properties sold, the results of which are included in income from continuing operations, and a decrease in bad ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (debt write-of) Tj ET Q q 0 0 0 rg BT 101.24 470.10 Td (fs related to properties held throughout both periods. Overall, we expect property operating, maintenance and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (management costs to decrease in future periods due to anticipated real estate property sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 440.10 Td (Real estate taxes, property-related taxes and insurance from our real estate properties decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.70 440.10 Td ($6.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.59 440.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 428.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.31 428.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.14 428.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.92 428.10 Td ($5.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.81 428.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.19 428.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.17 428.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.00 428.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.83 428.10 Td ( primarily due to properties sold, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (results of which are included in income from continuing operations. Overall, we expect real estate taxes, property-related taxes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (and insurance to decrease in future periods due to anticipated real estate property sales. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 386.10 Td (Asset management fees decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.26 386.10 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.15 386.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.53 386.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.52 386.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.34 386.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.17 386.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.95 386.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.84 386.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 374.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.31 374.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.14 374.10 Td ( primarily due to properties sold or disposed of other than by sale, the results of which are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (included in income from continuing operations. Overall, we expect asset management fees to decrease in future periods due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (anticipated asset sales or payof) Tj ET Q q 0 0 0 rg BT 173.16 350.10 Td (fs. See “Liquidity and Capital Resources.”) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 332.10 Td (General and administrative expenses increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.64 332.10 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.54 332.10 Td ( primarily due to an increase of $2.8 million in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (estimated profit participation interest related to the GKK Properties under the ) Tj ET Q q 0 0 0 rg BT 361.35 320.10 Td (Amended Services ) Tj ET Q q 0 0 0 rg BT 438.55 320.10 Td (Agreement, partially of) Tj ET Q q 0 0 0 rg BT 531.95 320.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (a decrease of $0.4 million related to lower legal fees, accounting fees, transfer agent fees and other professional fees. General ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (and administrative expenses consist primarily of management fees related to the ) Tj ET Q q 0 0 0 rg BT 371.90 296.10 Td (Amended Services ) Tj ET Q q 0 0 0 rg BT 449.10 296.10 Td (Agreement, legal fees, audit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (fees, transfer agent fees, state and local income taxes and other professional fees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 266.10 Td (Depreciation and amortization expense from our real estate properties decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.74 266.10 Td ($3.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.63 266.10 Td ( primarily due to real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (estate property sales and decreased amortization of tenant origination and absorption costs resulting from lease expirations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (related to properties held throughout both periods. Upon classifying a property as held for sale, we cease depreciation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (amortization expense for that property) Tj ET Q q 0 0 0 rg BT 202.13 230.10 Td (. Overall, we expect depreciation and amortization expense to decrease in future periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (due to anticipated real estate property sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 200.10 Td (Interest expense from the financing of our portfolio decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.18 200.10 Td ($5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.07 200.10 Td (, primarily due to a decrease in the average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (loan balance as a result of principal repayments and debt extinguishments subsequent to June 30, 2014. Included in interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (expense is the amortization of deferred financing costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.36 176.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.25 176.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.69 176.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.58 176.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.96 176.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.63 176.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.45 176.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.28 176.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 164.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.27 164.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 174.93 164.10 Td (. Interest expense in future periods will vary based on fluctuations in one-month LIBOR, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (level of future borrowings and our ability to refinance existing indebtedness at similar rates. ) Tj ET Q q 0 0 0 rg BT 421.99 152.10 Td (W) Tj ET Q q 0 0 0 rg BT 430.63 152.10 Td (e do not currently plan to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (acquire or originate more real estate or real estate-related assets and, therefore, do not plan to enter into any purchase financing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (in the future. However) Tj ET Q q 0 0 0 rg BT 142.12 128.10 Td (, we may need to refinance our existing indebtedness in the future. Overall, we expect interest expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (to decrease in future periods due to anticipated asset sales and principal paydowns.) Tj ET Q endstream endobj 83 0 obj <>] /Rotate 0 /Contents 84 0 R>> endobj 84 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 704.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.03 704.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.86 704.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.69 704.10 Td (, due to a change in cash flow estimates and the estimated hold period, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (recorded a non-cash impairment char) Tj ET Q q 0 0 0 rg BT 198.14 692.10 Td (ge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.91 692.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.80 692.10 Td ( to write-down the carrying value of one of our historical of) Tj ET Q q 0 0 0 rg BT 508.15 692.10 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (properties held for investment to its estimated fair value. ) Tj ET Q q 0 0 0 rg BT 280.64 680.10 Td (W) Tj ET Q q 0 0 0 rg BT 289.28 680.10 Td (e measured this property at estimated fair value, as this property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (was impaired and the carrying value of the property was adjusted to estimated fair value. ) Tj ET Q q 0 0 0 rg BT 409.47 668.10 Td (W) Tj ET Q q 0 0 0 rg BT 418.11 668.10 Td (e estimated the fair value for this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (impaired real estate property held for investment based on an estimated sales price. ) Tj ET Q q 0 0 0 rg BT 386.70 656.10 Td (W) Tj ET Q q 0 0 0 rg BT 395.33 656.10 Td (e did not record an impairment char) Tj ET Q q 0 0 0 rg BT 538.43 656.10 Td (ge on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (real estate held for investment during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.83 644.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.82 644.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.64 644.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.47 644.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 626.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 626.10 Td (e recorded a provision for loan loss reserves of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.80 626.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.69 626.10 Td ( related to the Sandmar Mezzanine Loan during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.67 626.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 626.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 614.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 614.10 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.70 614.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.69 614.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.51 614.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.34 614.10 Td (, we did not record provision for loan loss reserves.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 596.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 596.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.03 596.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.86 596.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.69 596.10 Td (, we sold 235,259 shares of common stock of Gramercy and recognized a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (gain on the sale of real estate securities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.15 584.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.04 584.10 Td (. ) Tj ET Q q 0 0 0 rg BT 275.36 584.10 Td (W) Tj ET Q q 0 0 0 rg BT 284.00 584.10 Td (e did not own or sell any shares of common stock of Gramercy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 572.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.81 572.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.64 572.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.47 572.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 554.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 554.10 Td (e recognized a gain on sales of real estate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.94 554.10 Td ($35.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.83 554.10 Td ( related to the disposition of two GKK Properties during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 542.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.31 542.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.14 542.10 Td ( that were included in income from continuing operations. ) Tj ET Q q 0 0 0 rg BT 423.40 542.10 Td (W) Tj ET Q q 0 0 0 rg BT 432.03 542.10 Td (e recognized a gain on sales of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 530.10 Td ( related to the disposition of four historical industrial properties and one GKK Property during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.75 530.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.74 530.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 518.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 518.10 Td ( that were included in income from continuing operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 500.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 500.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.03 500.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.86 500.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.69 500.10 Td (, we recognized a loss on extinguishment of debt of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.25 500.10 Td ($6.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.14 500.10 Td ( related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (the early pay-of) Tj ET Q q 0 0 0 rg BT 112.62 488.10 Td (f of the 101 Independence Mortgage Loan. On May 1, 2015, in connection with the disposition of 101 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (Independence, we repaid the entire $65.3 million principal balance and all other sums due on the 101 Independence Mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (Loan, including a prepayment premium of $4.4 million, and we wrote of) Tj ET Q q 0 0 0 rg BT 339.80 464.10 Td (f an unamortized discount on note payable of $2.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (million. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.44 452.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.42 452.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.25 452.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.08 452.10 Td (, we recognized a gain on extinguishment of debt of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.29 452.10 Td ($3.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.19 452.10 Td ( related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (to the discounted payof) Tj ET Q q 0 0 0 rg BT 142.91 440.10 Td (f of the Bridgeway ) Tj ET Q q 0 0 0 rg BT 220.48 440.10 Td (T) Tj ET Q q 0 0 0 rg BT 225.89 440.10 Td (echnology Center Mortgage Loan, which matured on ) Tj ET Q q 0 0 0 rg BT 440.28 440.10 Td (August 1, 2013. On ) Tj ET Q q 0 0 0 rg BT 523.34 440.10 Td (April 14, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (2014, we entered into an agreement with the lender to satisfy all amounts owed under the Bridgeway ) Tj ET Q q 0 0 0 rg BT 455.31 428.10 Td (T) Tj ET Q q 0 0 0 rg BT 460.72 428.10 Td (echnology Center ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (Mortgage Loan, including the outstanding principal balance of $26.8 million and accrued and unpaid interest of $2.1 million, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (a discounted payof) Tj ET Q q 0 0 0 rg BT 124.85 404.10 Td (f amount of $25.6 million.) Tj ET Q endstream endobj 85 0 obj <>] /Rotate 0 /Contents 86 0 R>> endobj 86 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (41) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 72 702.7669921875 m 148.9482421875 702.7669921875 l s q 0 0 0 rg BT 72.00 704.10 Td (Comparison of the ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 148.9482421875 702.7669921875 m 160.056640625 702.7669921875 l s q 0 0 0 rg BT 148.95 704.10 Td (six) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 160.056640625 702.7669921875 m 220.3251953125 702.7669921875 l s q 0 0 0 rg BT 160.06 704.10 Td ( months ended ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 220.3251953125 702.7669921875 m 276.7021484375 702.7669921875 l s q 0 0 0 rg BT 220.33 704.10 Td (June 30, 2015) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 276.7021484375 702.7669921875 m 321.970703125 702.7669921875 l s q 0 0 0 rg BT 276.70 704.10 Td ( versus the ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 321.970703125 702.7669921875 m 333.0791015625 702.7669921875 l s q 0 0 0 rg BT 321.97 704.10 Td (six) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 333.0791015625 702.7669921875 m 393.34765625 702.7669921875 l s q 0 0 0 rg BT 333.08 704.10 Td ( months ended ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 393.34765625 702.7669921875 m 449.724609375 702.7669921875 l s q 0 0 0 rg BT 393.35 704.10 Td (June 30, 2014) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 449.72 704.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 689.10 Td (The following table provides summary information about our results of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.25 689.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.92 689.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.75 689.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.58 689.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 677.10 Td ( \(dollar amounts in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 626.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 626.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 626.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 626.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 626.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 626.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 626.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 626.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 626.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 626.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 626.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 626.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 600.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 600.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 600.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 600.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 600.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 600.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 600.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 600.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 600.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 600.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 600.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 600.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 574.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 574.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 574.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 574.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 574.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 574.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 574.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 574.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 574.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 574.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 574.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 574.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 548.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 548.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 548.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 548.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 548.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 548.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 548.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 548.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 548.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 548.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 548.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 548.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 522.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 522.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 522.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 522.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 522.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 522.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 522.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 522.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 522.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 522.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 522.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 522.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 496.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 496.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 496.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 496.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 496.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 496.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 496.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 496.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 496.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 496.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 496.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 496.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 470.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 470.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 470.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 470.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 470.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 470.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 470.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 470.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 470.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 470.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 470.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 470.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 444.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 444.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 444.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 444.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 444.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 444.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 444.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 444.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 444.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 444.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 444.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 444.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 418.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 418.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 418.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 418.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 418.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 418.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 418.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 418.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 418.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 418.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 418.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 418.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 392.60 196.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 392.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 392.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 392.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 392.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 392.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 392.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 392.60 39.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 392.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 392.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 392.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 392.60 57.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246 654.6 m 299 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 654.6 m 303 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 654.6 m 356 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246 654.6 m 299 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246 626.6 m 299 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 654.6 m 356 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 626.6 m 356 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 626.6 m 401 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 626.6 m 444 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 626.6 m 502 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 626.6 m 563 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246 626.6 m 299 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 626.6 m 356 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 626.6 m 401 626.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 626.6 m 502 626.6 l s BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 658.65 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 259.55 658.66 Td (Six Months Ended June 30,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 367.40 637.66 Td (Incr) Tj ET Q q 0 0 0 rg BT 380.10 637.66 Td (ease) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 364.30 630.66 Td (\(Decr) Tj ET Q q 0 0 0 rg BT 380.88 630.66 Td (ease\) ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 407.50 637.66 Td (Per) Tj ET Q q 0 0 0 rg BT 417.86 637.66 Td (centage ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 412.50 630.66 Td (Change) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 460.40 644.66 Td ($ Change ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 464.65 637.66 Td (Due to ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 452.85 630.66 Td (Dispositions ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 490.78 633.83 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 509.20 658.66 Td ($ Change Due to ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 514.35 651.66 Td (Pr) Tj ET Q q 0 0 0 rg BT 521.61 651.66 Td (operties or) Tj ET Q q 0 0 0 rg BT 553.55 651.66 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 516.75 644.66 Td (Loans Held ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 515.95 637.66 Td (Thr) Tj ET Q q 0 0 0 rg BT 527.49 637.66 Td (oughout ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 511.10 630.66 Td (Both Periods ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 551.54 633.83 Td (\(2\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 630.65 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 265.00 630.66 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 322.00 630.66 Td (2014) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 617.65 Td (Rental income) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 248.50 617.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 276.90 617.65 Td (67,797) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 305.50 617.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 333.90 617.65 Td (77,762) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.50 617.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 617.70 Td (\(9,965) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 617.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 425.95 617.65 Td (\(13) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 617.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 450.50 617.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 617.70 Td (\(9,492) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 617.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 508.50 617.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 547.30 617.70 Td (\(473) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 617.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 604.65 Td (Tenant reimbursements) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 276.90 604.65 Td (23,688) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 333.90 604.65 Td (27,131) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 604.70 Td (\(3,443) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 604.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 425.95 604.65 Td (\(13) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 604.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 604.70 Td (\(1,491) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 604.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.05 604.70 Td (\(1,952) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 604.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 591.65 Td (Interest income from real estate loans receivable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 280.40 591.65 Td (1,467) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 591.65 Td (1,615) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 385.30 591.70 Td (\(148) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 591.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 429.45 591.65 Td (\(9) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 591.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 492.15 591.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 547.30 591.70 Td (\(148) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 591.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 578.65 Td (Parking revenues and other operating income) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 280.40 578.65 Td (1,592) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 578.65 Td (1,960) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 385.30 578.70 Td (\(368) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 578.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 425.95 578.65 Td (\(19) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 578.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.30 578.70 Td (\(414) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 578.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 553.15 578.65 Td (46) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 565.65 Td (Operating, maintenance and management costs) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 276.90 565.65 Td (39,833) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 333.90 565.65 Td (42,830) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 565.70 Td (\(2,997) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 565.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 429.45 565.65 Td (\(7) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 565.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 565.70 Td (\(2,473) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 565.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 547.30 565.70 Td (\(524) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 565.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 552.65 Td (Real estate taxes, property-related taxes and insurance) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 276.90 552.65 Td (12,646) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 333.90 552.65 Td (14,198) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 552.70 Td (\(1,552) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 552.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 425.95 552.65 Td (\(11) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 552.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 552.70 Td (\(1,737) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 552.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.65 552.65 Td (185) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 539.65 Td (Asset management fees to affiliate) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 280.40 539.65 Td (4,766) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 539.65 Td (5,029) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 385.30 539.70 Td (\(263) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 539.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 429.45 539.65 Td (\(5) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 539.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.30 539.70 Td (\(291) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 539.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 553.15 539.65 Td (28) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 526.65 Td (General and administrative expenses) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 280.40 526.65 Td (8,277) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 526.65 Td (7,329) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 387.65 526.65 Td (948) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 428.30 526.65 Td (13) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.65 526.65 Td (%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.80 526.65 Td (N/A) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 547.80 526.65 Td (N/A) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 513.65 Td (Depreciation and amortization expense) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 276.90 513.65 Td (29,810) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 333.90 513.65 Td (35,884) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 513.70 Td (\(6,074) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 513.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 425.95 513.65 Td (\(17) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 513.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 513.70 Td (\(5,385) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 513.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 547.30 513.70 Td (\(689) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 513.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 500.65 Td (Interest expense) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 276.90 500.65 Td (16,816) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 333.90 500.65 Td (26,581) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 500.70 Td (\(9,765) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 500.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 425.95 500.65 Td (\(37) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 500.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 500.70 Td (\(5,640) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 500.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.05 500.70 Td (\(4,125) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 500.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 487.65 Td (Impairment charge on real estate held for investment) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 289.15 487.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 487.65 Td (2,196) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 487.70 Td (\(2,196) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 487.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 422.45 487.65 Td (\(100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 487.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 487.70 Td (\(2,196) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 487.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 553.15 487.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 474.65 Td (Provision for loan losses) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 289.15 474.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 474.65 Td (1,973) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 474.70 Td (\(1,973) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 474.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 422.45 474.65 Td (\(100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 474.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 492.15 474.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.05 474.70 Td (\(1,973) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 474.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 461.65 Td (Gain on sales of real estate securities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 289.15 461.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 461.65 Td (4,410) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 461.70 Td (\(4,410) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 461.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 422.45 461.65 Td (\(100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 461.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 461.70 Td (\(4,410) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 461.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 553.15 461.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 448.65 Td (Gain on sales of real estate, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 276.90 448.65 Td (49,059) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 448.65 Td (2,041) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 378.90 448.65 Td (47,018) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 419.55 448.65 Td (2,304) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.65 448.65 Td (%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 479.90 448.65 Td (47,018) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 553.15 448.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 435.65 Td (Gain on sale of foreclosed real estate held for sale) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 280.40 435.65 Td (2,509) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 346.15 435.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 382.40 435.65 Td (2,509) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 424.80 435.65 Td (100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.65 435.65 Td (%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.40 435.65 Td (2,509) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 553.15 435.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 422.65 Td (\(Loss\) gain from extinguishment of debt) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 278.05 422.65 Td (\(6,376) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 296.15 422.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 422.65 Td (5,112) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 376.55 422.70 Td (\(11,488) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 422.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 422.45 422.65 Td (\(225) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 422.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 422.70 Td (\(8,191) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 422.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.05 422.70 Td (\(3,297) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.15 422.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 409.65 Td (Gain on sales of real estate, net \(discontinued operations\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 285.65 409.65 Td (124) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 337.40 409.65 Td (3,006) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.05 409.70 Td (\(2,882) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 409.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 425.95 409.65 Td (\(96) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 409.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.05 409.70 Td (\(2,882) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 409.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 553.15 409.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 396.65 Td (Income from discontinued operations) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 289.15 396.65 Td (38) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 342.65 396.65 Td (234) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 385.30 396.70 Td (\(196) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 398.15 396.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 425.95 396.65 Td (\(84) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 396.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.30 396.70 Td (\(196) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.15 396.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 553.15 396.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 383.65 Td (Impairment charge on discontinued operations) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 289.15 383.65 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 343.80 383.70 Td (\(81) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 353.15 383.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 391.15 383.65 Td (81) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 422.45 383.65 Td (\(100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 435.30 383.65 Td (\)%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 492.15 383.65 Td (81) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 553.15 383.65 Td (—) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (_____________________) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 359.50 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 356.10 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 227.40 356.10 Td (six) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 235.57 356.10 Td ( months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 281.19 356.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 323.07 356.10 Td ( compared to the ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 375.13 356.10 Td (six) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 383.30 356.10 Td ( months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 428.92 356.10 Td (June 30, 2014) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.79 356.10 Td ( related to investments ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (disposed of on or after January 1, 2014. ) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 338.50 Td (\(2\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 335.10 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 227.40 335.10 Td (six) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 235.57 335.10 Td ( months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 281.19 335.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 323.07 335.10 Td ( compared to the ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 375.13 335.10 Td (six) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 383.30 335.10 Td ( months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 428.92 335.10 Td (June 30, 2014) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.79 335.10 Td ( related to real estate and real ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (estate-related investments owned by us throughout both periods presented. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 302.10 Td (Rental income from our real estate properties decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.95 302.10 Td ($10.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.85 302.10 Td ( primarily due to properties sold or disposed of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (other than by sale, the results of which are included in income from continuing operations, and slightly lower occupancy \(as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (result of tenants vacating or tenants reducing leased space\) at certain properties. Overall, we expect rental income to decrease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (in future periods due to anticipated real estate property sales. Our rental income in future periods will also vary in lar) Tj ET Q q 0 0 0 rg BT 519.16 266.10 Td (ge part ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (based on the occupancy rates and rental rates of the properties in our portfolio. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 236.10 Td (T) Tj ET Q q 0 0 0 rg BT 78.91 236.10 Td (enant reimbursements from our real estate properties decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.85 236.10 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.75 236.10 Td ( primarily due to properties sold or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (disposed of other than by sale, the results of which are included in income from continuing operations, and adjustments to prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (year property tax recoveries related to the GKK Properties held throughout both periods, partially of) Tj ET Q q 0 0 0 rg BT 450.58 212.10 Td (fset by an increase in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (property tax recoveries related to our historical real estate properties held throughout both periods. Our tenant reimbursements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (in future periods will vary based on several factors discussed above under “ —Comparison of the three months ended June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (2015 versus the three months ended June 30, 2014.”) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 158.10 Td (Interest income from real estate loans receivable decreased slightly from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 158.10 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.04 158.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.42 158.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.09 158.10 Td ( months ended June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 146.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.28 146.10 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.17 146.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.55 146.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.22 146.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.04 146.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.87 146.10 Td (, due to the decrease in interest recognized from an impaired loan, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (the Sandmar Mezzanine Loan. In general, we expect interest income in future periods to remain fairly constant, but to decrease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (to the extent that we receive principal repayments on or make dispositions of real estate loans receivable. Interest income from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (real estate loans receivable in future periods may also be af) Tj ET Q q 0 0 0 rg BT 285.88 110.10 Td (fected by potential loan impairments as a result of current or future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (market conditions. ) Tj ET Q q 0 0 0 rg BT 128.38 98.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.82 98.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.65 98.10 Td (, the borrower under the Sandmar Mezzanine Loan was delinquent.) Tj ET Q endstream endobj 87 0 obj <>] /Rotate 0 /Contents 88 0 R>> endobj 88 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (Please see “ —Comparison of the three months ended June 30, 2015 versus the three months ended June 30, 2014” above ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (for a discussion of the impact of potential loan impairments on interest income and a discussion of the impact to us if any of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (borrowers under our real estate loans receivable are unable to repay their loans at maturity or default on their loan. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 662.10 Td (Property operating, maintenance and management costs from our real estate properties decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.67 662.10 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.57 662.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (primarily due to properties sold or disposed of other than by sale, the results of which are included in income from continuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (operations, and a decrease in utility expenses and bad debt write-of) Tj ET Q q 0 0 0 rg BT 317.83 638.10 Td (fs related to properties held throughout both periods, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.47 626.10 Td (fset by an increase in HV) Tj ET Q q 0 0 0 rg BT 193.53 626.10 Td (AC repairs and snow removal expenses related to our real estate properties located in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (midwestern and northeastern regions of the United States due to record snow fall during the first quarter 2015. Overall, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (expect property operating, maintenance and management costs to decrease in future periods due to anticipated real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (property sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 572.10 Td (Real estate taxes, property-related taxes and insurance from our real estate properties decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.70 572.10 Td ($14.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.59 572.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.17 560.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 560.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.83 560.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.60 560.10 Td ($12.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.50 560.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.87 560.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.54 560.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.37 560.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.20 560.10 Td ( primarily due to properties sold or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (disposed of other than by sale, the results of which are included in income from continuing operations, and property tax refunds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (received related to the GKK Properties, partially of) Tj ET Q q 0 0 0 rg BT 254.24 536.10 Td (fset by an increase in consulting fees for property taxes. Overall, we expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (real estate taxes, property-related taxes and insurance to decrease in future periods due to anticipated real estate property sales. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 506.10 Td (Asset management fees decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.26 506.10 Td ($5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.15 506.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.53 506.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.20 506.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.03 506.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.86 506.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.63 506.10 Td ($4.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.53 506.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.90 506.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.57 506.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 494.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 494.10 Td ( primarily due to properties sold or disposed of other than by sale, the results of which are included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (in income from continuing operations. Overall, we expect asset management fees to decrease in future periods due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (anticipated asset sales or payof) Tj ET Q q 0 0 0 rg BT 173.16 470.10 Td (fs. See “Liquidity and Capital Resources.”) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 452.10 Td (General and administrative expenses increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.64 452.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.54 452.10 Td ( primarily due to an increase of $1.7 million in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (estimated profit participation interest related to the GKK Properties under the ) Tj ET Q q 0 0 0 rg BT 361.35 440.10 Td (Amended Services ) Tj ET Q q 0 0 0 rg BT 438.55 440.10 Td (Agreement, partially of) Tj ET Q q 0 0 0 rg BT 531.95 440.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (a decrease of $0.8 million related to lower legal fees, accounting fees, transfer agent fees and other professional fees. See “— ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (Contractual Commitments and Contingencies — ) Tj ET Q q 0 0 0 rg BT 246.42 416.10 Td (Asset Management Services ) Tj ET Q q 0 0 0 rg BT 361.67 416.10 Td (Agreement Related to the GKK Properties” for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (more information. General and administrative expenses consist primarily of management fees related to the ) Tj ET Q q 0 0 0 rg BT 483.80 404.10 Td (Amended Services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (Agreement, legal fees, audit fees, transfer agent fees, state and local income taxes and other professional fees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 374.10 Td (Depreciation and amortization expense from our real estate properties decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.74 374.10 Td ($6.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.63 374.10 Td ( primarily due to real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (estate property sales or disposition other than by sale and decreased amortization of tenant origination and absorption costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (resulting from lease expirations related to properties held throughout both periods. Upon classifying a property as held for sale, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (we cease depreciation and amortization expense for that property) Tj ET Q q 0 0 0 rg BT 309.29 338.10 Td (. Overall, we expect depreciation and amortization expense to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (decrease in future periods due to anticipated real estate property sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 308.10 Td (Interest expense from the financing of our portfolio decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.18 308.10 Td ($9.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.07 308.10 Td (, primarily due to a decrease in the average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (loan balance as a result of principal repayments and debt extinguishments subsequent to June 30, 2014. Included in interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (expense is the amortization of deferred financing costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.36 284.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.25 284.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.69 284.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.58 284.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.96 284.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.63 284.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.45 284.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.28 284.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 272.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.27 272.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 174.93 272.10 Td (. Interest expense in future periods will vary based on fluctuations in one-month LIBOR, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (level of future borrowings and our ability to refinance existing indebtedness at similar rates. ) Tj ET Q q 0 0 0 rg BT 421.99 260.10 Td (W) Tj ET Q q 0 0 0 rg BT 430.63 260.10 Td (e do not currently plan to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (acquire or originate more real estate or real estate-related assets and, therefore, do not plan to enter into any purchase financing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (in the future. However) Tj ET Q q 0 0 0 rg BT 142.12 236.10 Td (, we may need to refinance our existing indebtedness in the future. Overall, we expect interest expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (to decrease in future periods due to anticipated asset sales and principal paydowns.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 206.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 206.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.72 206.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.54 206.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.37 206.10 Td (, due to a change in cash flow estimates and the estimated hold period, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (recorded a non-cash impairment char) Tj ET Q q 0 0 0 rg BT 198.14 194.10 Td (ge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.91 194.10 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.80 194.10 Td ( to write-down the carrying value of one of our historical industrial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (properties sold and one historical of) Tj ET Q q 0 0 0 rg BT 192.89 182.10 Td (fice property held for investment to their estimated fair values. ) Tj ET Q q 0 0 0 rg BT 448.18 182.10 Td (W) Tj ET Q q 0 0 0 rg BT 456.82 182.10 Td (e measured these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (properties at their estimated fair values, as these properties were impaired and the carrying values of these properties were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (adjusted to their estimated fair values. ) Tj ET Q q 0 0 0 rg BT 206.49 158.10 Td (W) Tj ET Q q 0 0 0 rg BT 215.13 158.10 Td (e estimated the fair values for these impaired real estate properties sold or held for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (investment based on their estimated sales price. ) Tj ET Q q 0 0 0 rg BT 244.54 146.10 Td (W) Tj ET Q q 0 0 0 rg BT 253.18 146.10 Td (e did not record an impairment char) Tj ET Q q 0 0 0 rg BT 396.27 146.10 Td (ge on real estate held for investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 134.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.50 134.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.32 134.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.15 134.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 116.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 116.10 Td (e recorded a provision for loan loss reserves of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.80 116.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.69 116.10 Td ( related to the Sandmar Mezzanine Loan during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.67 116.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.34 116.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 104.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 104.10 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.70 104.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.37 104.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.20 104.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.03 104.10 Td (, we did not record provision for loan loss reserves.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 86.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 86.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.72 86.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.54 86.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.37 86.10 Td (, we sold 1,386,602 shares of common stock of Gramercy and recognized a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (gain on the sale of real estate securities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.15 74.10 Td ($4.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.04 74.10 Td (. ) Tj ET Q q 0 0 0 rg BT 275.36 74.10 Td (W) Tj ET Q q 0 0 0 rg BT 284.00 74.10 Td (e did not own or sell any shares of common stock of Gramercy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 62.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.50 62.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.32 62.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.15 62.10 Td (.) Tj ET Q endstream endobj 89 0 obj <>] /Rotate 0 /Contents 90 0 R>> endobj 90 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 704.10 Td (e recognized a gain on sales of real estate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.94 704.10 Td ($49.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.83 704.10 Td ( related to the disposition of two historical industrial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (properties and three GKK Properties during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.95 692.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.62 692.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.44 692.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.27 692.10 Td ( that were included in income from continuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (operations. ) Tj ET Q q 0 0 0 rg BT 98.47 680.10 Td (W) Tj ET Q q 0 0 0 rg BT 107.11 680.10 Td (e recognized a gain on sales of real estate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.92 680.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.81 680.10 Td ( related to the disposition of four historical industrial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (properties and one GKK Property during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.29 668.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.96 668.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.79 668.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.62 668.10 Td ( that were included in income from continuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 638.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 638.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.72 638.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.54 638.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.37 638.10 Td (, we sold the remaining two condominium units of the ) Tj ET Q q 0 0 0 rg BT 466.33 638.10 Td (T) Tj ET Q q 0 0 0 rg BT 472.08 638.10 Td (ribeca Building and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (recognized a gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.35 626.10 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.24 626.10 Td ( on the sales of foreclosed real estate held for sale. ) Tj ET Q q 0 0 0 rg BT 388.36 626.10 Td (W) Tj ET Q q 0 0 0 rg BT 397.00 626.10 Td (e did not sell any condominium units of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (the ) Tj ET Q q 0 0 0 rg BT 64.04 614.10 Td (T) Tj ET Q q 0 0 0 rg BT 69.79 614.10 Td (ribeca Building during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.55 614.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.22 614.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.04 614.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.87 614.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 596.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 596.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.72 596.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.54 596.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.37 596.10 Td (, we recognized a loss on extinguishment of debt of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.93 596.10 Td ($6.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.82 596.10 Td ( related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (early pay-of) Tj ET Q q 0 0 0 rg BT 97.90 584.10 Td (f of the 101 Independence Mortgage Loan. On May 1, 2015, in connection with the disposition of 101 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (Independence, we repaid the entire $65.3 million principal balance and all other sums due on the 101 Independence Mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (Loan, including a prepayment premium of $4.4 million, and we wrote-of) Tj ET Q q 0 0 0 rg BT 340.63 560.10 Td (f an unamortized discount on note payable of $2.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (million. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.44 548.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.11 548.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.93 548.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.76 548.10 Td (, we recognized a gain on extinguishment of debt of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.98 548.10 Td ($5.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.87 548.10 Td (. ) Tj ET Q q 0 0 0 rg BT 523.69 548.10 Td (The gain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (on extinguishment of debt consisted of \(i\) a $1.8 million gain related to the BOA) Tj ET Q q 0 0 0 rg BT 372.50 536.10 Td ( ) Tj ET Q q 0 0 0 rg BT 374.82 536.10 Td (W) Tj ET Q q 0 0 0 rg BT 383.86 536.10 Td (indsor Mortgage Portfolio Loan, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (matured on October 31, 2012 and \(ii\) a $3.3 million gain related to the discounted payof) Tj ET Q q 0 0 0 rg BT 402.28 524.10 Td (f of the Bridgeway ) Tj ET Q q 0 0 0 rg BT 479.86 524.10 Td (T) Tj ET Q q 0 0 0 rg BT 485.27 524.10 Td (echnology Center ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (Mortgage Loan, which matured on ) Tj ET Q q 0 0 0 rg BT 190.57 512.10 Td (August 1, 2013. On February 21, 2014, we entered into agreements for deed-in-lieu of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (foreclosure and transferred the properties securing the BOA) Tj ET Q q 0 0 0 rg BT 288.58 500.10 Td ( ) Tj ET Q q 0 0 0 rg BT 290.90 500.10 Td (W) Tj ET Q q 0 0 0 rg BT 299.93 500.10 Td (indsor Mortgage Portfolio Loan to the lender in full satisfaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (of the debt and other obligations due under the loan. ) Tj ET Q q 0 0 0 rg BT 263.15 488.10 Td (The gain on extinguishment of debt represents the dif) Tj ET Q q 0 0 0 rg BT 476.80 488.10 Td (ference between the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (carrying amount of the outstanding debt and other liabilities of $7.0 million and the carrying value of the real estate properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (and other assets of approximately $5.2 million. On ) Tj ET Q q 0 0 0 rg BT 256.97 464.10 Td (April 14, 2014, we entered into an agreement with the lender to satisfy all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (amounts owed under the Bridgeway ) Tj ET Q q 0 0 0 rg BT 196.23 452.10 Td (T) Tj ET Q q 0 0 0 rg BT 201.64 452.10 Td (echnology Center Mortgage Loan, including the outstanding principal balance of $26.8 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (million and accrued and unpaid interest of $2.1 million, at a discounted payof) Tj ET Q q 0 0 0 rg BT 359.79 440.10 Td (f amount of $25.6 million. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 422.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 422.10 Td (e recognized a gain on sale of real estate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.05 422.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.94 422.10 Td ( in discontinued operations related to the disposition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (one GKK Property during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.87 410.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.54 410.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.36 410.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.19 410.10 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.24 410.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.91 410.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.73 410.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.56 410.10 Td (, we recognized a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (gain on sales of real estate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.06 398.10 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.96 398.10 Td ( related to the disposition of one historical of) Tj ET Q q 0 0 0 rg BT 396.18 398.10 Td (fice property and five GKK Properties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 380.10 Td (Income from discontinued operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.56 380.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.23 380.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.05 380.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.88 380.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.32 380.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.32 380.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.88 380.10 Td ($38,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.38 380.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.81 380.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.71 380.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 368.10 Td (. Income from discontinued operations is composed of the results of operations from properties sold and properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (designated as held for sale prior to January 1, 2014. ) Tj ET Q q 0 0 0 rg BT 260.65 356.10 Td (T) Tj ET Q q 0 0 0 rg BT 266.06 356.10 Td (otal revenues and other income from discontinued operations decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.44 344.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.33 344.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.16 344.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.83 344.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.65 344.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.48 344.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.26 344.10 Td ($45,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.76 344.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.58 344.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.25 344.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.08 344.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.91 344.10 Td (. ) Tj ET Q q 0 0 0 rg BT 521.23 344.10 Td (T) Tj ET Q q 0 0 0 rg BT 526.64 344.10 Td (otal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (expenses from discontinued operations decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.65 332.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.54 332.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.37 332.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.04 332.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.86 332.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.69 332.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.47 332.10 Td ($7,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.97 332.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 320.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.50 320.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.32 320.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.15 320.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 302.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 302.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.72 302.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.54 302.10 Td (June 30, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.37 302.10 Td (, we recognized an impairment char) Tj ET Q q 0 0 0 rg BT 390.46 302.10 Td (ge on real estate from discontinued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (operations of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.49 290.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.38 290.10 Td ( with respect to one GKK Property sold. ) Tj ET Q q 0 0 0 rg BT 319.28 290.10 Td (W) Tj ET Q q 0 0 0 rg BT 327.92 290.10 Td (e did not recognize an impairment char) Tj ET Q q 0 0 0 rg BT 484.34 290.10 Td (ge on real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (from discontinued operations during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.52 278.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.19 278.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.02 278.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.85 278.10 Td (. ) Tj ET Q endstream endobj 91 0 obj <>] /Rotate 0 /Contents 92 0 R>> endobj 92 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (44) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Funds fr) Tj ET Q q 0 0 0 rg BT 86.27 704.25 Td (om Operations and Modified Funds fr) Tj ET Q q 0 0 0 rg BT 249.16 704.25 Td (om Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 686.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 686.25 Td (e believe that funds from operations \(“FFO”\) is a beneficial indicator of the performance of an equity REIT) Tj ET Q q 0 0 0 rg BT 511.52 686.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 674.25 Td (e compute FFO in accordance with the current National ) Tj ET Q q 0 0 0 rg BT 282.79 674.25 Td (Association of Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 437.84 674.25 Td (T) Tj ET Q q 0 0 0 rg BT 443.60 674.25 Td (rusts \(“NAREIT”\) definition. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (FFO represents net income, excluding gains and losses from sales of operating real estate assets \(which can vary among owners ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (of identical assets in similar conditions based on historical cost accounting and useful-life estimates\), impairment losses on real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (estate assets, depreciation and amortization of real estate assets, and adjustments for unconsolidated partnerships and joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (ventures. In connection with NAREIT’) Tj ET Q q 0 0 0 rg BT 207.80 626.25 Td (s ) Tj ET Q q 0 0 0 rg BT 213.64 626.25 Td (Accounting and Financial Standards Hot ) Tj ET Q q 0 0 0 rg BT 378.70 626.25 Td (T) Tj ET Q q 0 0 0 rg BT 384.11 626.25 Td (opics, we are excluding impairment char) Tj ET Q q 0 0 0 rg BT 546.64 626.25 Td (ges ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (on real estate assets from our calculation of FFO. ) Tj ET Q q 0 0 0 rg BT 251.21 614.25 Td (W) Tj ET Q q 0 0 0 rg BT 259.85 614.25 Td (e have also restated FFO from prior periods to exclude these impairment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (char) Tj ET Q q 0 0 0 rg BT 66.53 602.25 Td (ges. NAREIT) Tj ET Q q 0 0 0 rg BT 123.84 602.25 Td ( believes that impairment char) Tj ET Q q 0 0 0 rg BT 244.72 602.25 Td (ges on real estate assets are often early recognition of losses on prospective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (sales of properties, and therefore, the exclusion of these impairments is consistent with the exclusion of gains and losses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (recognized from the sales of real estate. ) Tj ET Q q 0 0 0 rg BT 212.48 578.25 Td (Although these losses are included in the calculation of net income \(loss\), we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (excluded these impairment char) Tj ET Q q 0 0 0 rg BT 176.77 566.25 Td (ges in our calculation of FFO because impairments do not impact the current operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (performance of our investments, and may or may not provide an indication of future operating performance. ) Tj ET Q q 0 0 0 rg BT 487.22 554.25 Td (W) Tj ET Q q 0 0 0 rg BT 495.86 554.25 Td (e believe FFO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (facilitates comparisons of operating performance between periods and among other REIT) Tj ET Q q 0 0 0 rg BT 407.00 542.25 Td (s. However) Tj ET Q q 0 0 0 rg BT 454.65 542.25 Td (, our computation of FFO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (may not be comparable to other REIT) Tj ET Q q 0 0 0 rg BT 200.42 530.25 Td (s that do not define FFO in accordance with the current NAREIT) Tj ET Q q 0 0 0 rg BT 460.44 530.25 Td ( definition or that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (interpret the current NAREIT) Tj ET Q q 0 0 0 rg BT 167.88 518.25 Td ( definition dif) Tj ET Q q 0 0 0 rg BT 222.69 518.25 Td (ferently than we do. Our management believes that historical cost accounting for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (real estate assets in accordance with U.S. generally accepted accounting principles \(“GAAP”\) implicitly assumes that the value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (conditions, many industry investors and analysts have considered the presentation of operating results for real estate companies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (that use historical cost accounting to be insuf) Tj ET Q q 0 0 0 rg BT 229.55 470.25 Td (ficient by themselves. ) Tj ET Q q 0 0 0 rg BT 321.48 470.25 Td (As a result, we believe that the use of FFO, together with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (the required GAAP) Tj ET Q q 0 0 0 rg BT 126.89 458.25 Td ( presentations, provides a more complete understanding of our performance relative to our competitors and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (provides a more informed and appropriate basis on which to make decisions involving operating, financing, and investing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 416.25 Td (Changes in accounting rules have resulted in a substantial increase in the number of non-operating and non-cash items ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (included in the calculation of FFO. ) Tj ET Q q 0 0 0 rg BT 193.92 404.25 Td (As a result, our management also uses modified funds from operations \(“MFFO”\) as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (indicator of our ongoing performance. MFFO excludes from FFO: acquisition fees and expenses; adjustments related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (contingent purchase price obligations; amounts relating to straight-line rents and amortization of above and below market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (intangible lease assets and liabilities; accretion of discounts and amortization of premiums on debt investments; amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (closing costs relating to debt investments; impairments of real estate-related investments; mark-to-market adjustments included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.25 Td (in net income; and gains or losses included in net income for the extinguishment or sale of debt or hedges. ) Tj ET Q q 0 0 0 rg BT 479.22 344.25 Td (W) Tj ET Q q 0 0 0 rg BT 487.85 344.25 Td (e compute MFFO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (in accordance with the definition of MFFO included in the practice guideline issued by the Investment Program ) Tj ET Q q 0 0 0 rg BT 498.00 332.25 Td (Association ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (\(“IP) Tj ET Q q 0 0 0 rg BT 65.24 320.25 Td (A”\) in November 2010 as interpreted by management. Our computation of MFFO may not be comparable to other REIT) Tj ET Q q 0 0 0 rg BT 549.97 320.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (that do not compute MFFO in accordance with the current IP) Tj ET Q q 0 0 0 rg BT 292.97 308.25 Td (A) Tj ET Q q 0 0 0 rg BT 299.64 308.25 Td ( definition or that interpret the current IP) Tj ET Q q 0 0 0 rg BT 461.72 308.25 Td (A) Tj ET Q q 0 0 0 rg BT 468.39 308.25 Td ( definition dif) Tj ET Q q 0 0 0 rg BT 523.20 308.25 Td (ferently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (than we do. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 278.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 278.25 Td (e believe that MFFO is helpful as a measure of ongoing operating performance because it excludes non-operating items ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.25 Td (included in FFO. MFFO also excludes non-cash items such as straight-line rental revenue. ) Tj ET Q q 0 0 0 rg BT 417.49 266.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 467.39 266.25 Td (, we believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.25 Td (MFFO provides investors with supplemental performance information that is consistent with the performance indicators and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.25 Td (analysis used by management, in addition to net income and cash flows from operating activities as defined by GAAP) Tj ET Q q 0 0 0 rg BT 520.78 242.25 Td (, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.25 Td (evaluate the sustainability of our operating performance. MFFO provides comparability in evaluating the operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.25 Td (performance of our portfolio with other non-traded REIT) Tj ET Q q 0 0 0 rg BT 277.34 218.25 Td (s, which typically have limited lives with short and defined acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (periods and tar) Tj ET Q q 0 0 0 rg BT 108.74 206.25 Td (geted exit strategies. MFFO, or an equivalent measure, is routinely reported by non-traded REIT) Tj ET Q q 0 0 0 rg BT 496.55 206.25 Td (s, and we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (believe often used by analysts and investors for comparison purposes.) Tj ET Q endstream endobj 93 0 obj <>] /Rotate 0 /Contents 94 0 R>> endobj 94 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (FFO and MFFO are non-GAAP) Tj ET Q q 0 0 0 rg BT 200.91 704.10 Td ( financial measures and do not represent net income as defined by GAAP) Tj ET Q q 0 0 0 rg BT 493.05 704.10 Td (. Net income as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (defined by GAAP) Tj ET Q q 0 0 0 rg BT 121.34 692.10 Td ( is the most relevant measure in determining our operating performance because FFO and MFFO include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (adjustments that investors may deem subjective, such as adding back expenses such as depreciation and amortization and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (other items described above. ) Tj ET Q q 0 0 0 rg BT 168.35 668.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 217.69 668.10 Td (, FFO and MFFO should not be considered as alternatives to net income as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (indicator of our current and historical operating performance. In addition, FFO and MFFO do not represent cash flows from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (operating activities determined in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 280.72 644.10 Td ( and should not be considered an indication of our liquidity) Tj ET Q q 0 0 0 rg BT 516.69 644.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 632.10 Td (e believe FFO and MFFO, in addition to net income and cash flows from operating activities as defined by GAAP) Tj ET Q q 0 0 0 rg BT 513.61 632.10 Td (, are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (meaningful supplemental performance measures. During periods of significant disposition activity) Tj ET Q q 0 0 0 rg BT 445.14 620.10 Td (, FFO and MFFO are much ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (more limited as measures of future performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 590.10 Td (Although MFFO includes other adjustments, the exclusion of straight-line rent, amortization of above- and below-market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (leases, gain \(loss\) from extinguishment of debt, impairment char) Tj ET Q q 0 0 0 rg BT 307.59 578.10 Td (ges on real estate loans receivable and the net amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (discounts and premiums on mortgage loans related to the GKK Properties are the most significant adjustments to us at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (present time. ) Tj ET Q q 0 0 0 rg BT 105.97 554.10 Td (W) Tj ET Q q 0 0 0 rg BT 114.61 554.10 Td (e have excluded these items based on the following economic considerations:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 536.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 536.10 Td (Adjustments for straight-line r) Tj ET Q q 0 0 0 rg BT 211.02 536.10 Td (ent) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.24 536.10 Td (. ) Tj ET Q q 0 0 0 rg BT 230.56 536.10 Td (These are adjustments to rental revenue as required by GAAP) Tj ET Q q 0 0 0 rg BT 477.60 536.10 Td ( to recognize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 524.10 Td (contractual lease payments on a straight-line basis over the life of the respective lease. ) Tj ET Q q 0 0 0 rg BT 439.68 524.10 Td (W) Tj ET Q q 0 0 0 rg BT 448.32 524.10 Td (e have excluded these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 512.10 Td (adjustments in our calculation of MFFO to more appropriately reflect the current economic impact of our in-place ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 500.10 Td (leases, while also providing investors with a useful supplemental metric that addresses core operating performance by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 488.10 Td (removing rent we expect to receive in a future period or rent that was received in a prior period;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 473.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 473.10 Td (Amortization of above- and below-market leases.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.64 473.10 Td ( Similar to depreciation and amortization of real estate assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 461.10 Td (lease related costs that are excluded from FFO, GAAP) Tj ET Q q 0 0 0 rg BT 307.62 461.10 Td ( implicitly assumes that the value of intangible lease assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 449.10 Td (liabilities diminishes predictably over time and requires that these char) Tj ET Q q 0 0 0 rg BT 372.79 449.10 Td (ges be recognized currently in revenue. Since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 437.10 Td (market lease rates in the aggregate have historically risen or fallen with local market conditions, management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 425.10 Td (believes that by excluding these char) Tj ET Q q 0 0 0 rg BT 237.27 425.10 Td (ges, MFFO provides useful supplemental information on the operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 413.10 Td (performance of the real estate;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 398.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 398.10 Td (Gain \(loss\) fr) Tj ET Q q 0 0 0 rg BT 143.52 398.10 Td (om extinguishment of debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.78 398.10 Td (. ) Tj ET Q q 0 0 0 rg BT 255.73 398.10 Td (A) Tj ET Q q 0 0 0 rg BT 262.40 398.10 Td ( gain \(loss\) from extinguishment of debt represents the dif) Tj ET Q q 0 0 0 rg BT 494.66 398.10 Td (ference between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 386.10 Td (the carrying value of any consideration transferred to the lender in return for the extinguishment of a debt and the net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 374.10 Td (carrying value of the debt at the time of settlement. ) Tj ET Q q 0 0 0 rg BT 299.19 374.10 Td (W) Tj ET Q q 0 0 0 rg BT 307.83 374.10 Td (e have excluded the gain \(loss\) from extinguishment of debt in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 362.10 Td (our calculation of MFFO because these gains \(losses\) do not impact the current operating performance of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 350.10 Td (investments and do not provide an indication of future operating performance; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 335.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 335.10 Td (Impairment char) Tj ET Q q 0 0 0 rg BT 157.12 335.10 Td (ges on r) Tj ET Q q 0 0 0 rg BT 188.97 335.10 Td (eal estate loans r) Tj ET Q q 0 0 0 rg BT 257.20 335.10 Td (eceivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.95 335.10 Td (. ) Tj ET Q q 0 0 0 rg BT 301.90 335.10 Td (An impairment char) Tj ET Q q 0 0 0 rg BT 382.25 335.10 Td (ge on a real estate loan receivable represents ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 323.10 Td (a write-down of the carrying value of a real estate loan to reflect the current valuation of the asset, whether or not the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 311.10 Td (asset is intended to be held long-term. ) Tj ET Q q 0 0 0 rg BT 243.86 311.10 Td (Although these losses are included in the calculation of net income \(loss\), we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 299.10 Td (have excluded these impairment char) Tj ET Q q 0 0 0 rg BT 238.64 299.10 Td (ges in our calculation of MFFO because impairments do not impact the current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 287.10 Td (operating performance of our investments, and may or may not provide an indication of future operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 275.10 Td (performance. ) Tj ET Q q 0 0 0 rg BT 147.84 275.10 Td (W) Tj ET Q q 0 0 0 rg BT 156.48 275.10 Td (e believe it is useful to investors to have a supplemental metric that addresses core operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 263.10 Td (performance directly and therefore excludes such adjustments as impairment char) Tj ET Q q 0 0 0 rg BT 416.63 263.10 Td (ges on real estate loans receivable; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 251.10 Td (and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 236.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 236.10 Td (Net amortization of discounts and pr) Tj ET Q q 0 0 0 rg BT 236.58 236.10 Td (emiums on mortgage loans r) Tj ET Q q 0 0 0 rg BT 350.65 236.10 Td (elated to the GKK Pr) Tj ET Q q 0 0 0 rg BT 435.27 236.10 Td (operties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.49 236.10 Td ( Discounts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 224.10 Td (premiums on debt are amortized over the term of the loan as an adjustment to interest expense. ) Tj ET Q q 0 0 0 rg BT 473.86 224.10 Td (This application ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 212.10 Td (results in interest expense recognition that is dif) Tj ET Q q 0 0 0 rg BT 281.16 212.10 Td (ferent than the underlying contractual terms of the debt. ) Tj ET Q q 0 0 0 rg BT 508.96 212.10 Td (W) Tj ET Q q 0 0 0 rg BT 517.59 212.10 Td (e have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 200.10 Td (excluded the amortization of discounts and premiums related to the debt assumed in connection with the Settlement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 188.10 Td (Agreement in our calculation of MFFO to more appropriately reflect the economic impact of our debt as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 176.10 Td (amortization of discounts and premiums has no ongoing economic impact on our operations. ) Tj ET Q q 0 0 0 rg BT 465.58 176.10 Td (The debt assumed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 164.10 Td (related to the GKK Properties was marked to market as of the date we entered into Settlement ) Tj ET Q q 0 0 0 rg BT 467.38 164.10 Td (Agreement, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 152.10 Td (resulted in discounts and premiums related to the debt assumed. ) Tj ET Q q 0 0 0 rg BT 350.32 152.10 Td (W) Tj ET Q q 0 0 0 rg BT 358.96 152.10 Td (e believe excluding these items provides investors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 140.10 Td (with a useful supplemental metric that directly addresses core operating performance.) Tj ET Q endstream endobj 95 0 obj <>] /Rotate 0 /Contents 96 0 R>> endobj 96 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (Our calculation of FFO and MFFO is presented in the table below for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.00 704.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.98 704.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.42 704.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.09 704.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.92 704.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.75 704.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 692.10 Td (, respectively \(in thousands\). No conclusions or comparisons should be made from the presentation of these periods. ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 640.60 281.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 640.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 640.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 640.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 640.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 640.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 640.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 640.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 614.60 281.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 614.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 614.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 614.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 614.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 614.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 614.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 614.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 588.60 281.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 588.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 588.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 588.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 588.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 588.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 588.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 588.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 562.60 281.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 562.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 562.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 562.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 562.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 562.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 562.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 562.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 536.60 281.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 536.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 536.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 536.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 536.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 536.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 536.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 536.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 510.60 281.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 510.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 510.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 510.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 510.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 510.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 510.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 510.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 484.60 281.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 484.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 484.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 484.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 484.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 484.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 484.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 484.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 458.60 281.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 458.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 458.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 458.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 458.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 458.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 458.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 458.60 55.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 654.6 m 386 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 654.6 m 390 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 654.6 m 445 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 654.6 m 504 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 654.6 m 508 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 654.6 m 563 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 654.6 m 386 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 640.6 m 386 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 654.6 m 390 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 654.6 m 445 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 640.6 m 445 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 654.6 m 504 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 640.6 m 504 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 654.6 m 563 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 640.6 m 563 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 640.6 m 386 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 640.6 m 445 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 640.6 m 504 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 640.6 m 563 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 523.6 m 386 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 523.6 m 445 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 523.6 m 504 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 523.6 m 563 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 523.6 m 386 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 523.6 m 445 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 445.6 m 504 445.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 445.6 m 563 445.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 445.6 m 386 445.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 433.6 m 386 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 431.6 m 386 431.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 445.6 m 445 445.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 433.6 m 445 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 431.6 m 445 431.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 433.6 m 504 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 431.6 m 504 431.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 433.6 m 563 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 431.6 m 563 431.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 658.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 337.70 666.83 Td (For the Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.25 658.83 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.45 666.83 Td (For the Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.25 658.83 Td (June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 644.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.00 644.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 409.00 644.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 644.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.00 644.83 Td (2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 631.85 Td (Net income \(loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.50 631.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.80 631.85 Td (19,751) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.50 631.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.10 631.85 Td (\(7,652) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 631.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.50 631.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.80 631.85 Td (28,340) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.50 631.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 535.10 631.85 Td (\(12,168) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 631.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 618.85 Td (Depreciation of real estate assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.80 618.85 Td (9,228) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.80 618.85 Td (10,477) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.80 618.85 Td (19,243) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 618.85 Td (21,094) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 605.85 Td (Amortization of lease-related costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.80 605.85 Td (4,977) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 605.85 Td (7,484) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.80 605.85 Td (10,567) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 605.85 Td (14,790) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 592.85 Td (Impairment charges on real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 592.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.80 592.85 Td (939) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 592.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 592.85 Td (2,196) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 579.85 Td (Impairment charges on real estate - discontinued operations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 579.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 579.85 Td (81) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 579.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 579.85 Td (81) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 566.85 Td (Gain on foreclosed real estate held for sale) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 566.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 566.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.10 566.85 Td (\(2,509) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 566.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 566.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 553.85 Td (Gain on sales of real estate, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.10 553.85 Td (\(35,093) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.80 553.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.10 553.85 Td (\(2,041) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 553.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.10 553.85 Td (\(49,059) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 553.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 553.85 Td (\(2,041) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 553.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 540.85 Td (Gain on sales of real estate, net - discontinued operations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 540.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.10 540.85 Td (\(89) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 540.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.10 540.85 Td (\(124) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 540.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 540.85 Td (\(3,006) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 540.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 527.85 Td (Gain on sales of real estate securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 527.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.10 527.85 Td (\(662) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 527.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 527.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 527.85 Td (\(4,410) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 527.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 514.85 Td (FFO) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.10 514.85 Td (\(1,137) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.80 514.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 514.85 Td (8,537) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.80 514.85 Td (6,458) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 514.85 Td (16,536) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 501.85 Td (Straight-line rent and amortization of above- and below-market leases) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.10 501.85 Td (\(2,731) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.80 501.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.10 501.85 Td (\(3,330) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 501.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.10 501.85 Td (\(5,016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 501.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 501.85 Td (\(5,998) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 501.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 488.85 Td (Loss \(gain\) from extinguishment of debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.80 488.85 Td (6,385) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.10 488.85 Td (\(3,297) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 488.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.80 488.85 Td (6,376) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 488.85 Td (\(5,112) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 488.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 475.85 Td (Impairment charges on real estate loans receivable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 475.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 475.85 Td (1,973) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 475.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 475.85 Td (1,973) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 462.85 Td (Amortization of discounts and closing costs on real estate loans receivable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 368.10 462.85 Td (\(250) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.80 462.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.10 462.85 Td (\(256) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 462.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.10 462.85 Td (\(491) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 462.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 462.85 Td (\(504) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 462.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 449.85 Td (Amortization of discounts and premiums on GKK notes payable, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.80 449.85 Td (356) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 449.85 Td (1,498) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.80 449.85 Td (867) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 449.85 Td (2,137) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 436.85 Td (MFFO) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.50 436.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.80 436.85 Td (2,623) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.50 436.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 436.85 Td (5,125) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.50 436.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.80 436.85 Td (8,194) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.50 436.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 436.85 Td (9,032) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 409.10 Td (FFO and MFFO may be used to fund all or a portion of certain capitalizable items that are excluded from FFO and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.10 Td (MFFO, such as tenant improvements, building improvements and deferred leasing costs. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 379.10 Td (Distributions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 361.10 Td (Distributions declared, distributions paid and cash flow from operations were as follows for the first and second quarters ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 349.10 Td (of 2015 \(in thousands, except per share amounts\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 300.60 170.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 300.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 300.60 80.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.50 300.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.50 300.60 80.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 300.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 300.60 86.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 300.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 300.60 80.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 274.60 170.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 274.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 274.60 80.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.50 274.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.50 274.60 80.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 274.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 274.60 86.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 274.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 274.60 80.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 300.6 m 220.5 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224.5 300.6 m 304.5 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308.5 300.6 m 388.5 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 300.6 m 478.5 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 300.6 m 562.5 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224.5 274.6 m 304.5 274.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224.5 262.6 m 304.5 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224.5 260.6 m 304.5 260.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308.5 274.6 m 388.5 274.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308.5 262.6 m 388.5 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308.5 260.6 m 388.5 260.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 274.6 m 478.5 274.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 262.6 m 478.5 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 260.6 m 478.5 260.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 274.6 m 562.5 274.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 262.6 m 562.5 262.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 260.6 m 562.5 260.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 123.65 304.83 Td (Period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 241.55 312.83 Td (Distributions ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 244.70 304.83 Td (Declar) Tj ET Q q 0 0 0 rg BT 267.21 304.83 Td (ed ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 277.21 308.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 325.55 320.83 Td (Distributions ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 325.80 312.83 Td (Declar) Tj ET Q q 0 0 0 rg BT 348.31 312.83 Td (ed Per) Tj ET Q q 0 0 0 rg BT 370.15 312.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.35 304.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 346.65 304.83 Td (e ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 352.21 308.46 Td (\(1\) \(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.85 312.83 Td (Cash Flow ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.40 304.83 Td (Fr) Tj ET Q q 0 0 0 rg BT 500.69 304.83 Td (om Operations) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.05 304.83 Td (Distributions Paid ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 460.51 308.46 Td (\(1\) \(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 291.85 Td (First Quarter 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 227.00 291.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 283.30 291.85 Td (4,690) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.00 291.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.30 291.85 Td (0.025) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 395.00 291.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.30 291.85 Td (9,389) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.00 291.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 291.85 Td (6,809) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 278.85 Td (Second Quarter 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 283.30 278.85 Td (4,682) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.30 278.85 Td (0.025) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.30 278.85 Td (4,682) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 278.85 Td (11,236) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 227.00 265.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 283.30 265.85 Td (9,372) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.00 265.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.30 265.85 Td (0.050) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 395.00 265.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.30 265.85 Td (14,071) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.00 265.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 265.85 Td (18,045) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (_____________________) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 50.00 241.50 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.68 238.10 Td ( Distributions consist of the following, as applicable: ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 68.00 226.10 Td (• ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 86.00 226.10 Td (On December 9, 2014, our board of directors declared a distribution in the amount of $0.025 per share of common stock to stockholders of record as of the ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 86.00 217.10 Td (close of business on December 29, 2014. ) Tj ET Q q 0 0 0 rg BT 212.51 217.10 Td (This distribution totaled approximately $4.7 million and was paid on January 2, 2015.) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 68.00 205.10 Td (• ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 86.00 205.10 Td (On March 6, 2015, our board of directors declared a distribution in the amount of $0.025 per share of common stock to stockholders of record as of the close ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 86.00 196.10 Td (of business on March 20, 2015. ) Tj ET Q q 0 0 0 rg BT 183.98 196.10 Td (This distribution totaled approximately $4.7 million and was paid on March 25, 2015.) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 68.00 184.10 Td (• ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 86.00 184.10 Td (On May 13, 2015, our board of directors declared a distribution in the amount of $0.025 per share of common stock to stockholders of record as of the close ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 86.00 175.10 Td (of business on June 19, 2015. ) Tj ET Q q 0 0 0 rg BT 178.16 175.10 Td (This distribution totaled approximately $4.7 million and was paid on June 26, 2015.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 50.00 166.50 Td (\(2\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.68 163.10 Td ( ) Tj ET Q q 0 0 0 rg BT 57.15 163.10 Td (Assumes share was issued and outstanding each day that was a record date during the period presented. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 139.10 Td ( For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.61 139.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.28 139.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.10 139.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.93 139.10 Td (, we paid aggregate cash distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.78 139.10 Td ($14.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.67 139.10 Td (. FFO and cash flow from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 127.10 Td (operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.03 127.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.70 127.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.53 127.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.36 127.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.79 127.10 Td ($6.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.68 127.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.12 127.10 Td ($18.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.01 127.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 450.67 127.10 Td (. ) Tj ET Q q 0 0 0 rg BT 457.99 127.10 Td (W) Tj ET Q q 0 0 0 rg BT 466.63 127.10 Td (e funded our total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 115.10 Td (distributions paid with $1) Tj ET Q q 0 0 0 rg BT 152.13 115.10 Td (1.5 million of current period cash flow from operations and $2.6 million of cash flow from operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 103.10 Td (in excess of distributions paid during the year ended December 31, 2014. For purposes of determining the source of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 91.10 Td (distributions paid, we assume first that we use cash flow from operations from the relevant periods to fund distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 79.10 Td (payments. See the reconciliation of FFO to net income above. For information on our liquidity and distribution policies, see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 67.10 Td (“– Liquidity and Capital Resources.”) Tj ET Q endstream endobj 97 0 obj <>] /Rotate 0 /Contents 98 0 R>> endobj 98 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management’) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (47) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Critical ) Tj ET Q q 0 0 0 rg BT 84.21 704.25 Td (Accounting Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 686.25 Td (Our consolidated interim financial statements have been prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 443.27 686.25 Td ( and in conjunction with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (rules and regulations of the SEC. ) Tj ET Q q 0 0 0 rg BT 186.52 674.25 Td (The preparation of our financial statements requires significant management judgments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (assumptions and estimates about matters that are inherently uncertain. ) Tj ET Q q 0 0 0 rg BT 334.51 662.25 Td (These judgments af) Tj ET Q q 0 0 0 rg BT 412.64 662.25 Td (fect the reported amounts of assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (and liabilities and our disclosure of contingent assets and liabilities as of the dates of the financial statements and the reported ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (amounts of revenue and expenses during the reporting periods. ) Tj ET Q q 0 0 0 rg BT 305.64 638.25 Td (W) Tj ET Q q 0 0 0 rg BT 314.68 638.25 Td (ith dif) Tj ET Q q 0 0 0 rg BT 338.66 638.25 Td (ferent estimates or assumptions, materially dif) Tj ET Q q 0 0 0 rg BT 523.43 638.25 Td (ferent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (amounts could be reported in our financial statements. ) Tj ET Q q 0 0 0 rg BT 271.11 626.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 321.01 626.25 Td (, other companies may utilize dif) Tj ET Q q 0 0 0 rg BT 452.45 626.25 Td (ferent estimates that may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (impact the comparability of our results of operations to those of companies in similar businesses. ) Tj ET Q q 0 0 0 rg BT 441.92 614.25 Td (A) Tj ET Q q 0 0 0 rg BT 448.59 614.25 Td ( discussion of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (accounting policies that management considers critical in that they involve significant management judgments, assumptions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (estimates is included in our ) Tj ET Q q 0 0 0 rg BT 160.87 590.25 Td (Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC. ) Tj ET Q q 0 0 0 rg BT 519.77 590.25 Td (There ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (have been no significant changes to our policies during 2015. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 560.25 Td (Subsequent Events) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 542.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 542.25 Td (e evaluate subsequent events up until the date the consolidated financial statements are issued.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (Distribution Declared) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 509.25 Td (On ) Tj ET Q q 0 0 0 rg BT 86.17 509.25 Td (August 1) Tj ET Q q 0 0 0 rg BT 122.19 509.25 Td (1, 2015, our board of directors declared a distribution in the amount of $0.025 per share of common stock to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.25 Td (stockholders of record as of the close of business on September 18, 2015. ) Tj ET Q q 0 0 0 rg BT 348.14 497.25 Td (W) Tj ET Q q 0 0 0 rg BT 356.78 497.25 Td (e expect to pay this distribution on or about ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.25 Td (September 25, 2015.) Tj ET Q endstream endobj 99 0 obj <>] /Rotate 0 /Contents 100 0 R>> endobj 100 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 3. Quantitative and Qualitative Disclosur) Tj ET Q q 0 0 0 rg BT 250.09 730.60 Td (es about Market Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 704.10 Td (e are exposed to the ef) Tj ET Q q 0 0 0 rg BT 170.13 704.10 Td (fects of interest rate changes as a result of borrowings used to \(i\) maintain liquidity) Tj ET Q q 0 0 0 rg BT 501.61 704.10 Td (, \(ii\) fund the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (financing and refinancing of our real estate investment portfolio, and \(iii\) fund operations and payments on the debt assumed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (connection with the Settlement ) Tj ET Q q 0 0 0 rg BT 175.58 680.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 227.33 680.10 Td (W) Tj ET Q q 0 0 0 rg BT 235.96 680.10 Td (e are also exposed to the ef) Tj ET Q q 0 0 0 rg BT 344.07 680.10 Td (fects of changes in interest rates as a result of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (investments in mortgage, mezzanine and other real estate loans receivable. Our profitability and the value of our investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (portfolio may be adversely af) Tj ET Q q 0 0 0 rg BT 167.05 656.10 Td (fected during any period as a result of interest rate changes. Our interest rate risk management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (objectives are to limit the impact of interest rate changes on earnings, prepayment penalties and cash flows and to lower overall ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (borrowing costs. ) Tj ET Q q 0 0 0 rg BT 120.98 632.10 Td (W) Tj ET Q q 0 0 0 rg BT 129.62 632.10 Td (e have managed and will continue to manage interest rate risk by maintaining a ratio of fixed rate, long-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (term debt such that variable rate exposure is kept at an acceptable level. In addition, we may utilize a variety of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (instruments, including interest rate caps, floors, and swap agreements, in order to limit the ef) Tj ET Q q 0 0 0 rg BT 420.33 608.10 Td (fects of changes in interest rates on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (our operations. ) Tj ET Q q 0 0 0 rg BT 114.30 596.10 Td (When we use these types of derivatives to hedge the risk of interest-earning assets or interest-bearing liabilities, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (we may be subject to certain risks, including the risk that losses on a hedge position will reduce the overall returns to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (stockholders and that the losses may exceed the amount we invested in the instruments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 554.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 554.10 Td (e borrow funds and made investments at a combination of fixed and variable rates. Interest rate fluctuations will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (generally not af) Tj ET Q q 0 0 0 rg BT 112.07 542.10 Td (fect our future earnings or cash flows on our fixed rate debt or fixed rate real estate loans receivable unless such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (instruments mature or are otherwise terminated. However) Tj ET Q q 0 0 0 rg BT 282.35 530.10 Td (, interest rate changes will af) Tj ET Q q 0 0 0 rg BT 397.12 530.10 Td (fect the fair value of our fixed rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (instruments. ) Tj ET Q q 0 0 0 rg BT 103.11 518.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.56 518.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.39 518.10 Td (, the fair value and book value of our fixed rate real estate loans receivable were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.29 518.10 Td ($26.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.18 518.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 506.10 Td ($29.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.33 506.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 172.99 506.10 Td (. ) Tj ET Q q 0 0 0 rg BT 180.31 506.10 Td (The fair value estimate of our real estate loans receivable is calculated using an internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (valuation model that considers the expected cash flows for the loans, underlying collateral values \(for collateral-dependent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (loans\) and the estimated yield requirements of institutional investors for loans with similar characteristics, including remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (loan term, loan-to-value, type of collateral and other credit enhancements. ) Tj ET Q q 0 0 0 rg BT 349.93 470.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.38 470.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.21 470.10 Td (, the fair value of our fixed rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (debt was $391.2 million and the carrying value of our fixed rate debt was $370.6 million. ) Tj ET Q q 0 0 0 rg BT 411.46 458.10 Td (The fair value estimate of our fixed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (rate debt was calculated using a discounted cash flow analysis utilizing rates we would expect to pay for debt of a similar type ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (and remaining maturity if the loans were originated as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.43 434.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.26 434.10 Td (. ) Tj ET Q q 0 0 0 rg BT 342.21 434.10 Td (As we expect to hold our fixed rate instruments to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (maturity and the amounts due under such instruments would be limited to the outstanding principal balance and any accrued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (and unpaid interest, we do not expect that fluctuations in interest rates, and the resulting changes in fair value of our fixed rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (instruments, would have a significant impact on our operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 380.10 Td (Conversely) Tj ET Q q 0 0 0 rg BT 118.40 380.10 Td (, movements in interest rates on variable rate debt would change our future earnings and cash flows, but would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (not significantly af) Tj ET Q q 0 0 0 rg BT 124.86 368.10 Td (fect the fair value of those instruments. However) Tj ET Q q 0 0 0 rg BT 322.44 368.10 Td (, changes in required risk premiums would result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (changes in the fair value of variable rate instruments. ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 1 rg BT 264.42 356.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 266.37 356.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.81 356.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.64 356.10 Td (, we were exposed to market risks related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (fluctuations in interest rates on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.13 344.10 Td ($164.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.02 344.10 Td ( of variable rate debt outstanding. Based on interest rates as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.83 344.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.66 344.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (if interest rates are 100 basis points higher during the 12 months ending June 30, 2016, interest expense on our variable rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (debt outstanding would increase by approximately $1.6 million. ) Tj ET Q q 0 0 0 rg BT 309.73 320.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.18 320.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.01 320.10 Td (, one-month LIBOR was 0.18650% and if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (this index was reduced to 0% during the 12 months ending June 30, 2016, interest expense on our variable rate debt would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (decrease by $0.3 million. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 278.10 Td (The weighted-average annual ef) Tj ET Q q 0 0 0 rg BT 201.86 278.10 Td (fective interest rate of our fixed rate real estate loans receivable as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.77 278.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.60 278.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (8.9%. ) Tj ET Q q 0 0 0 rg BT 77.65 266.10 Td (The weighted-average annual ef) Tj ET Q q 0 0 0 rg BT 206.01 266.10 Td (fective interest rate represents the ef) Tj ET Q q 0 0 0 rg BT 350.47 266.10 Td (fective interest rate as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.25 266.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.08 266.10 Td (, using the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (interest method, which we use to recognize interest income on our real estate loans receivable without asset-specific loan loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (reserves. ) Tj ET Q q 0 0 0 rg BT 89.58 242.10 Td (The weighted-average interest rates of our fixed rate debt and variable rate debt as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.92 242.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.75 242.10 Td ( were 5.9% and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (2.0%, respectively) Tj ET Q q 0 0 0 rg BT 122.99 230.10 Td (. ) Tj ET Q q 0 0 0 rg BT 130.31 230.10 Td (The weighted-average interest rate represents the actual interest rate in ef) Tj ET Q q 0 0 0 rg BT 422.76 230.10 Td (fect as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 230.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.73 230.10 Td (, using ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (interest rate indices as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.40 218.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.23 218.10 Td (, where applicable.) Tj ET Q endstream endobj 101 0 obj <>] /Rotate 0 /Contents 102 0 R>> endobj 102 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 4. Contr) Tj ET Q q 0 0 0 rg BT 110.36 730.60 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 153.52 730.60 Td (ocedur) Tj ET Q q 0 0 0 rg BT 182.78 730.60 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (49) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Disclosur) Tj ET Q q 0 0 0 rg BT 89.32 704.25 Td (e Contr) Tj ET Q q 0 0 0 rg BT 121.63 704.25 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 164.79 704.25 Td (ocedur) Tj ET Q q 0 0 0 rg BT 194.05 704.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 686.25 Td (As of the end of the period covered by this report, management, including our principal executive of) Tj ET Q q 0 0 0 rg BT 474.86 686.25 Td (ficer and principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (financial of) Tj ET Q q 0 0 0 rg BT 95.13 674.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 113.04 674.25 Td (, evaluated the ef) Tj ET Q q 0 0 0 rg BT 181.16 674.25 Td (fectiveness of the design and operation of our disclosure controls and procedures. Based upon, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (and as of the date of, the evaluation, our principal executive of) Tj ET Q q 0 0 0 rg BT 299.50 662.25 Td (ficer and principal financial of) Tj ET Q q 0 0 0 rg BT 420.93 662.25 Td (ficer concluded that the disclosure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (controls and procedures were ef) Tj ET Q q 0 0 0 rg BT 177.04 650.25 Td (fective as of the end of the period covered by this report to ensure that information required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (be disclosed in the reports we file and submit under the Exchange ) Tj ET Q q 0 0 0 rg BT 314.43 638.25 Td (Act is recorded, processed, summarized and reported as and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (when required. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (information required to be disclosed by us in the reports we file and submit under the Exchange ) Tj ET Q q 0 0 0 rg BT 434.12 614.25 Td (Act is accumulated and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (communicated to our management, including our principal executive of) Tj ET Q q 0 0 0 rg BT 336.17 602.25 Td (ficer and our principal financial of) Tj ET Q q 0 0 0 rg BT 473.43 602.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 491.34 602.25 Td (, as appropriate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (to allow timely decisions regarding required disclosure. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 112.37 572.25 Td (ol Over) Tj ET Q q 0 0 0 rg BT 144.12 572.25 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 554.25 Td (There have been no changes in our internal control over financial reporting that occurred during the quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 542.25 Td ( that have materially af) Tj ET Q q 0 0 0 rg BT 197.33 542.25 Td (fected, or are reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 384.28 542.25 Td (fect, our internal control over financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (reporting. ) Tj ET Q endstream endobj 103 0 obj <>] /Rotate 0 /Contents 104 0 R>> endobj 104 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( II. OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.99 748.60 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (50) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 719.25 Td (Item 1. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 719.25 Td (Legal Pr) Tj ET Q q 0 0 0 rg BT 122.25 719.25 Td (oceedings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 701.25 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (Item 1A. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 94.50 677.25 Td (Risk Factors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 659.25 Td (In addition to the risks discussed below) Tj ET Q q 0 0 0 rg BT 230.61 659.25 Td (, see the risks in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 356.70 659.25 Td ( of our ) Tj ET Q q 0 0 0 rg BT 385.31 659.25 Td (Annual Report on Form 10-K for the year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.25 Td (ended December 31, 2014 filed with the SEC on March 10, 2015.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (Because of the concentration of a significant portion of our assets in V) Tj ET Q q 0 0 0 rg BT 340.64 629.25 Td (irginia, any adverse economic, real estate or business ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 617.25 Td (conditions in V) Tj ET Q q 0 0 0 rg BT 111.75 617.25 Td (irginia could adversely af) Tj ET Q q 0 0 0 rg BT 216.28 617.25 Td (fect our operating results and stockholders’) Tj ET Q q 0 0 0 rg BT 394.71 617.25 Td ( return.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 602.25 Td (As of June 30, 2015, our real estate investments in ) Tj ET Q q 0 0 0 rg BT 277.72 602.25 Td (V) Tj ET Q q 0 0 0 rg BT 284.34 602.25 Td (ir) Tj ET Q q 0 0 0 rg BT 290.27 602.25 Td (ginia, excluding properties held for sale, represented 9.6% of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (total annualized base rent. ) Tj ET Q q 0 0 0 rg BT 158.35 590.25 Td (As a result, the geographic concentration of our portfolio makes it particularly susceptible to adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (economic developments in ) Tj ET Q q 0 0 0 rg BT 159.01 578.25 Td (V) Tj ET Q q 0 0 0 rg BT 165.63 578.25 Td (ir) Tj ET Q q 0 0 0 rg BT 171.56 578.25 Td (ginia’) Tj ET Q q 0 0 0 rg BT 194.33 578.25 Td (s real estate market. ) Tj ET Q q 0 0 0 rg BT 278.19 578.25 Td (Any adverse economic or real estate developments in this market, such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (as business layof) Tj ET Q q 0 0 0 rg BT 117.09 566.25 Td (fs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (any decrease in demand for of) Tj ET Q q 0 0 0 rg BT 170.10 554.25 Td (fice or bank space resulting from the local business climate, could adversely af) Tj ET Q q 0 0 0 rg BT 485.08 554.25 Td (fect our operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (results and our stockholders’) Tj ET Q q 0 0 0 rg BT 164.01 542.25 Td ( return.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (Item 2. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 518.25 Td (Unr) Tj ET Q q 0 0 0 rg BT 102.54 518.25 Td (egister) Tj ET Q q 0 0 0 rg BT 130.68 518.25 Td (ed Sales of Equity Securities and Use of Pr) Tj ET Q q 0 0 0 rg BT 311.60 518.25 Td (oceeds) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 500.25 Td (a\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 500.25 Td (During the period covered by this Form 10-Q, we did not sell any equity securities that were not registered under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 488.25 Td (the Securities ) Tj ET Q q 0 0 0 rg BT 159.60 488.25 Td (Act of 1933.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 470.25 Td (b\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 470.25 Td (Not applicable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 452.25 Td (c\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 452.25 Td (W) Tj ET Q q 0 0 0 rg BT 112.14 452.25 Td (e have a share redemption program pursuant to which stockholders may only sell their shares to us in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 440.25 Td (connection with a stockholder) Tj ET Q q 0 0 0 rg BT 224.12 440.25 Td (’) Tj ET Q q 0 0 0 rg BT 226.89 440.25 Td (s death, “qualifying disability” or “determination of incompetence” \(each as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 428.25 Td (defined in the share redemption program and together with redemptions sought in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 553.48 428.25 Td (’) Tj ET Q q 0 0 0 rg BT 556.25 428.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 416.25 Td (death, “special redemptions”\). Such redemptions are subject to an annual dollar limitation and are further subject ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 404.25 Td (to the other limitations described in our share redemption program, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 386.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 386.25 Td (During each calendar year) Tj ET Q q 0 0 0 rg BT 226.31 386.25 Td (, special redemptions are limited to an annual amount determined by our board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 374.25 Td (directors. ) Tj ET Q q 0 0 0 rg BT 163.80 374.25 Td (The annual dollar limitation for our share redemption program may be reviewed and adjusted from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 362.25 Td (time to time during the year) Tj ET Q q 0 0 0 rg BT 232.31 362.25 Td (. On December 9, 2014, our board of directors approved an annual dollar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 350.25 Td (limitation of $10.0 million in the aggregate for the calendar year 2015 \(subject to review and adjustment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 338.25 Td (during the year by our board of directors\), and further subject to the limitations described in our share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 326.25 Td (redemption program.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 311.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 311.25 Td (During any calendar year) Tj ET Q q 0 0 0 rg BT 222.44 311.25 Td (, we may redeem no more than 5% of the weighted-average number of shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 299.25 Td (outstanding during the prior calendar year) Tj ET Q q 0 0 0 rg BT 288.95 299.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 284.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 284.25 Td (W) Tj ET Q q 0 0 0 rg BT 130.14 284.25 Td (e have no obligation to redeem shares if the redemption would violate the restrictions on distributions under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 272.25 Td (Maryland law) Tj ET Q q 0 0 0 rg BT 176.67 272.25 Td (, which prohibits distributions that would cause a corporation to fail to meet statutory tests of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 260.25 Td (solvency) Tj ET Q q 0 0 0 rg BT 156.40 260.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 239.25 Td (W) Tj ET Q q 0 0 0 rg BT 112.14 239.25 Td (e do not currently expect to have funds available for ordinary redemptions in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 221.25 Td (If we cannot repurchase all shares presented for redemption in any month because of the limitations on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 209.25 Td (redemptions set forth in our share redemption program, then we will honor redemption requests on a pro rata ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 197.25 Td (basis, except that if a pro rata redemption would result in a stockholder owning less than the minimum purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 185.25 Td (requirement described in our most recently ef) Tj ET Q q 0 0 0 rg BT 285.47 185.25 Td (fective registration statement, as amended or supplemented, then we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 173.25 Td (would redeem all of such stockholder) Tj ET Q q 0 0 0 rg BT 254.11 173.25 Td (’) Tj ET Q q 0 0 0 rg BT 256.88 173.25 Td (s shares. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 155.25 Td (The complete share redemption program document is filed as an exhibit to our ) Tj ET Q q 0 0 0 rg BT 419.24 155.25 Td (Annual Report on Form 10-K for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 143.25 Td (the year ended December 31, 2012 and is available at the SEC’) Tj ET Q q 0 0 0 rg BT 355.63 143.25 Td (s website at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 404.79 143.25 Td (http:) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 423.67578125 141.9169921875 m 480.70703125 141.9169921875 l s q 0 0 0 rg BT 423.68 143.25 Td (//www) Tj ET Q q 0 0 0 rg BT 448.50 143.25 Td (.sec.gov) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.71 143.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 125.25 Td (The only redemptions we made under our share redemption program during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.52 125.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.19 125.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.01 125.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.84 125.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 113.25 Td (were those that qualified as, and met the requirements for) Tj ET Q q 0 0 0 rg BT 333.02 113.25 Td (, special redemptions under our share redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 101.25 Td (program. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.99 101.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.66 101.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.48 101.25 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.31 101.25 Td (, we fulfilled all redemption requests that qualified as special ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 89.25 Td (redemptions under our share redemption program with a combination of proceeds from cash flow from operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 77.25 Td (and the sale of properties in 2014 and 2015.) Tj ET Q endstream endobj 105 0 obj <>] /Rotate 0 /Contents 106 0 R>> endobj 106 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( II. OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.99 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 86.00 730.60 Td (Unr) Tj ET Q q 0 0 0 rg BT 103.04 730.60 Td (egister) Tj ET Q q 0 0 0 rg BT 131.18 730.60 Td (ed Sales of Equity Securities and Use of Pr) Tj ET Q q 0 0 0 rg BT 312.10 730.60 Td (oceeds \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 704.10 Td (W) Tj ET Q q 0 0 0 rg BT 112.14 704.10 Td (e may amend, suspend or terminate the program upon 30 days’) Tj ET Q q 0 0 0 rg BT 363.27 704.10 Td ( notice to our stockholders. ) Tj ET Q q 0 0 0 rg BT 476.68 704.10 Td (W) Tj ET Q q 0 0 0 rg BT 485.32 704.10 Td (e may provide this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 692.10 Td (notice by including such information in a Current Report on Form 8-K or in our annual or quarterly reports, all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 680.10 Td (publicly filed with the SEC, or by a separate mailing to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 662.10 Td (On December 9, 2014, our board of directors approved an estimated value per share of our common stock of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 650.10 Td ($4.52 per share \(unaudited\), based on the estimated value of our assets less the estimated value of our liabilities, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 638.10 Td (divided by the number of shares outstanding, all as of September 30, 2014. ) Tj ET Q q 0 0 0 rg BT 405.48 638.10 Td (The change in redemption price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 626.10 Td (became ef) Tj ET Q q 0 0 0 rg BT 144.12 626.10 Td (fective for the December 2014 redemption date and will be ef) Tj ET Q q 0 0 0 rg BT 390.50 626.10 Td (fective until the estimated value per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 614.10 Td (is updated. For a full description of the methodologies and assumptions used to value our assets and liabilities in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 602.10 Td (connection with the calculation of the estimated value per share, see Part II, Item 5, “Market for Registrant’) Tj ET Q q 0 0 0 rg BT 533.34 602.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 590.10 Td (Common Equity) Tj ET Q q 0 0 0 rg BT 169.24 590.10 Td (, Related Stockholder Matters and Issuer Purchases of Equity Securities - Market Information” of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 578.10 Td (our ) Tj ET Q q 0 0 0 rg BT 118.78 578.10 Td (Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 10, 2015. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 566.10 Td (W) Tj ET Q q 0 0 0 rg BT 112.14 566.10 Td (e currently expect to utilize our advisor and/or an independent valuation firm to update the estimated value per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 554.10 Td (share in December of each year) Tj ET Q q 0 0 0 rg BT 229.26 554.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 536.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.05 536.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.72 536.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.54 536.10 Td (June 30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.37 536.10 Td (, we redeemed shares pursuant to our share redemption program as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 524.10 Td (follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 104.00 478.60 104.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.00 478.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 478.60 90.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.00 478.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.00 478.60 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 478.60 15.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 478.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 478.60 153.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 104.00 452.60 104.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.00 452.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 452.60 90.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.00 452.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.00 452.60 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 452.60 15.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 452.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 452.60 153.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 104.00 426.60 104.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.00 426.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 426.60 90.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.00 426.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.00 426.60 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 426.60 15.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 426.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 426.60 153.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 104.00 400.60 104.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.00 400.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 400.60 90.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.00 400.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.00 400.60 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 400.60 15.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 400.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 400.60 153.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 104 478.6 m 208 478.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 478.6 m 302 478.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 478.6 m 391 478.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391 478.6 m 406 478.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 478.6 m 563 478.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 104 478.6 m 208 478.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 478.6 m 302 478.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 478.6 m 391 478.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 478.6 m 563 478.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 400.6 m 302 400.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 388.6 m 302 388.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 386.6 m 302 386.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 106.50 482.83 Td (Month) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 232.60 490.83 Td (T) Tj ET Q q 0 0 0 rg BT 237.20 490.83 Td (otal Number) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 217.85 482.83 Td (of Shar) Tj ET Q q 0 0 0 rg BT 242.82 482.83 Td (es Redeemed ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 289.03 486.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.70 490.83 Td (A) Tj ET Q q 0 0 0 rg BT 336.88 490.83 Td (verage Price ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 329.85 482.83 Td (Paid Per) Tj ET Q q 0 0 0 rg BT 359.25 482.83 Td ( Shar) Tj ET Q q 0 0 0 rg BT 377.56 482.83 Td (e) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 424.20 498.83 Td (Appr) Tj ET Q q 0 0 0 rg BT 442.28 498.83 Td (oximate Dollar) Tj ET Q q 0 0 0 rg BT 493.01 498.83 Td ( ) Tj ET Q q 0 0 0 rg BT 494.87 498.83 Td (V) Tj ET Q q 0 0 0 rg BT 499.91 498.83 Td (alue of Shar) Tj ET Q q 0 0 0 rg BT 541.10 498.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.25 490.83 Td (A) Tj ET Q q 0 0 0 rg BT 445.43 490.83 Td (vailable ) Tj ET Q q 0 0 0 rg BT 473.96 490.83 Td (That May ) Tj ET Q q 0 0 0 rg BT 509.66 490.83 Td (Y) Tj ET Q q 0 0 0 rg BT 514.55 490.83 Td (et Be) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.80 482.83 Td (Redeemed Under) Tj ET Q q 0 0 0 rg BT 492.98 482.83 Td ( the Pr) Tj ET Q q 0 0 0 rg BT 515.93 482.83 Td (ogram) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 106.50 469.85 Td (January 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 272.80 469.85 Td (126,394) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.50 469.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 469.85 Td (4.52) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 393.50 473.96 Td (\(2\)) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 482.95 473.96 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 106.50 456.85 Td (February 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 272.80 456.85 Td (117,979) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.50 456.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 456.85 Td (4.52) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 393.50 460.96 Td (\(2\)) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 482.95 460.96 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 106.50 443.85 Td (March 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 272.80 443.85 Td (100,367) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.50 443.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 443.85 Td (4.52) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 393.50 447.96 Td (\(2\)) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 482.95 447.96 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 106.50 430.85 Td (April 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 272.80 430.85 Td (115,515) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.50 430.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 430.85 Td (4.52) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 393.50 434.96 Td (\(2\)) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 482.95 434.96 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 106.50 417.85 Td (May 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 276.80 417.85 Td (92,672) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.50 417.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 417.85 Td (4.52) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 393.50 421.96 Td (\(2\)) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 482.95 421.96 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 106.50 404.85 Td (June 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 272.80 404.85 Td (134,795) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.50 404.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 404.85 Td (4.52) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 393.50 408.96 Td (\(2\)) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 482.95 408.96 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 124.50 391.85 Td (Total) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 272.80 391.85 Td (687,722) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 376.10 Td (_____________________) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 103.50 367.50 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 109.18 364.10 Td ( ) Tj ET Q q 0 0 0 rg BT 110.92 364.10 Td (W) Tj ET Q q 0 0 0 rg BT 117.40 364.10 Td (e announced commencement of our share redemption program on ) Tj ET Q q 0 0 0 rg BT 316.30 364.10 Td (April 6, 2006 and amendments to the program on ) Tj ET Q q 0 0 0 rg BT 465.86 364.10 Td (August 16, 2006 \(which ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 103.50 355.10 Td (amendment became ef) Tj ET Q q 0 0 0 rg BT 170.83 355.10 Td (fective on December 14, 2006\), ) Tj ET Q q 0 0 0 rg BT 267.26 355.10 Td (August 1, 2007 \(which amendment became ef) Tj ET Q q 0 0 0 rg BT 405.21 355.10 Td (fective on September 13, 2007\), ) Tj ET Q q 0 0 0 rg BT 502.90 355.10 Td (August 14, 2008 ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 103.50 346.10 Td (\(which amendment became ef) Tj ET Q q 0 0 0 rg BT 193.53 346.10 Td (fective on September 13, 2008\), March 26, 2009 \(which amendment became ef) Tj ET Q q 0 0 0 rg BT 431.24 346.10 Td (fective on ) Tj ET Q q 0 0 0 rg BT 462.48 346.10 Td (April 26, 2009\), May 13, 2009 ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 103.50 337.10 Td (\(which amendment became ef) Tj ET Q q 0 0 0 rg BT 193.53 337.10 Td (fective on June 12, 2009\), March 26, 2012 \(which amendment became ef) Tj ET Q q 0 0 0 rg BT 412.91 337.10 Td (fective on ) Tj ET Q q 0 0 0 rg BT 444.15 337.10 Td (April 25, 2012\) and March 13, 2013 ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 103.50 328.10 Td (\(which amendment became ef) Tj ET Q q 0 0 0 rg BT 193.53 328.10 Td (fective on ) Tj ET Q q 0 0 0 rg BT 224.77 328.10 Td (April 12, 2013\).) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 103.50 319.50 Td (\(2\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 109.18 316.10 Td ( In accordance with our share redemption program, the redemption price for all stockholders is equal to the most recent estimated value per share of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 103.50 307.10 Td (our common stock as of the redemption date \(described above\). ) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 103.50 298.50 Td (\(3\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 109.18 295.10 Td ( ) Tj ET Q q 0 0 0 rg BT 110.92 295.10 Td (W) Tj ET Q q 0 0 0 rg BT 117.40 295.10 Td (e limit the dollar value of shares that may be redeemed under our share redemption program as described above. During the ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 492.07 295.10 Td (six) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 500.83 295.10 Td ( months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 103.50 286.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 145.37 286.10 Td (, we redeemed ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 190.77 286.10 Td ($3.1 million) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 227.44 286.10 Td ( of shares of common stock. ) Tj ET Q q 0 0 0 rg BT 315.62 286.10 Td (The only redemptions we made under our share redemption program during the ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 103.50 277.10 Td (six) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 112.25 277.10 Td ( months ended ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 157.87 277.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 199.75 277.10 Td ( were those that qualified as, and met the requirements for) Tj ET Q q 0 0 0 rg BT 373.77 277.10 Td (, special redemptions under our share redemption program. ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 103.50 268.10 Td (On December 9, 2014, our board of directors approved an annual dollar limitation for redemptions of $10.0 million in the aggregate for calendar year ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 103.50 259.10 Td (2015. Based on this redemption limitation and those described above and redemptions through ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 391.16 259.10 Td (June 30, 2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 433.03 259.10 Td (, we may redeem up to $6.9 million of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 103.50 250.10 Td (shares that meet the requirements for special redemptions for the remainder of 2015.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (Item 3. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 226.10 Td (Defaults upon Senior) Tj ET Q q 0 0 0 rg BT 175.33 226.10 Td ( Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 208.10 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 184.10 Td (Item 4. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 184.10 Td (Mine Safety Disclosur) Tj ET Q q 0 0 0 rg BT 179.20 184.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 166.10 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (Item 5. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 85.50 142.10 Td (Other) Tj ET Q q 0 0 0 rg BT 110.87 142.10 Td ( Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 124.10 Td (None.) Tj ET Q endstream endobj 107 0 obj <>] /Rotate 0 /Contents 108 0 R>> endobj 108 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( II. OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.99 748.60 Td (TION) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 6. Exhibits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (52) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 697.5 m 105 697.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 109 697.5 m 325 697.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 697.5 m 561 697.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 701.23 Td (Ex.) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 107.50 701.75 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 111.50 701.23 Td (Description) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 684.07 Td (3.1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 107.50 685.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 684.07 Td (Articles of Amendment and Restatement of the Company, incorporated by reference to Exhibit 3.1 to the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 674.07 Td (Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2006) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 655.07 Td (3.2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 107.50 656.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 655.07 Td (Amended and Restated Bylaws of the Company, incorporated by reference to Exhibit 3.2 to the Company’s) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 645.07 Td (Quarterly Report on Form 10-Q for the period ended March 31, 2006) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 626.07 Td (4.1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 107.50 627.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 626.07 Td (Statement regarding restrictions on transferability of shares of common stock \(to appear on stock certificate or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 616.07 Td (to be sent upon request and without charge to stockholders issued shares without certificates\), incorporated by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 606.07 Td (reference to Exhibit 4.2 to the Company’s Registration Statement on Form S-11, Commission File) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 596.07 Td (No. 333-126087) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 577.07 Td (31.1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 107.50 578.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 577.07 Td (Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 558.07 Td (31.2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 107.50 559.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 558.07 Td (Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 539.07 Td (32.1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 107.50 540.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 539.07 Td (Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as created by Section 906 of the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 529.07 Td (Sarbanes-Oxley Act of 2002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 510.07 Td (32.2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 107.50 511.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 510.07 Td (Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as created by Section 906 of the Sarbanes-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 500.07 Td (Oxley Act of 2002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 481.07 Td (99.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 481.07 Td (Amended and Restated Share Redemption Program, dated March 6, 2013, incorporated by reference to Exhibit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 471.07 Td (99.2 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 452.07 Td (101.INS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 452.07 Td (XBRL Instance Document) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 433.07 Td (101.SCH) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 433.07 Td (XBRL Taxonomy Extension Schema) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 414.07 Td (101.CAL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 414.07 Td (XBRL Taxonomy Extension Calculation Linkbase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 395.07 Td (101.DEF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 395.07 Td (XBRL Taxonomy Extension Definition Linkbase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 376.07 Td (101.LAB) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 376.07 Td (XBRL Taxonomy Extension Label Linkbase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 357.07 Td (101.PRE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.50 357.07 Td (XBRL Taxonomy Extension Presentation Linkbase) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 109 0 obj <>] /Rotate 0 /Contents 110 0 R>> endobj 110 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (53) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.85 742.25 Td (SIGNA) Tj ET Q q 0 0 0 rg BT 304.78 742.25 Td (TURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 721.25 Td (Pursuant to the requirements of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 276.05 721.25 Td (Act of 1934, the registrant has duly caused this report to be signed on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 709.25 Td (its behalf by the undersigned thereunto duly authorized.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 642.75 m 562.5 642.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 563.75 m 562.5 563.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 268.00 677.43 Td (KBS REAL ESTATE INVESTMENT TRUST, INC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 647.42 Td (Date:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 648.32 Td (August 12, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.00 647.42 Td (By:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.00 647.42 Td (/) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 294.78 647.42 Td (S) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.23 647.42 Td (/ C) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.18 647.42 Td (HARLES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.29 647.42 Td ( J. 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Schreiber, Jr.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 292.00 618.31 Td (Chairman of the Board,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 292.00 608.36 Td (Chief Executive Officer and Director) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.00 596.37 Td (\(principal executive officer\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 568.42 Td (Date:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 569.32 Td (August 12, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.00 568.42 Td (By:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.00 568.42 Td (/) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 294.78 568.42 Td (S) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.23 568.42 Td (/ J) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.40 568.42 Td (EFFREY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.18 568.42 Td ( K. ) Tj ET Q q 0 0 0 rg BT 352.72 568.42 Td (W) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.16 568.42 Td (ALDVOGEL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.71 568.42 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.00 553.43 Td (Jeffrey K. 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