%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 235.55 720.65 Td (UNITED ST) Tj ET Q q 0 0 0 rg BT 330.74 720.65 Td (A) Tj ET Q q 0 0 0 rg BT 342.41 720.65 Td (TES) Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 112.70 699.05 Td (SECURITIES ) Tj ET Q q 0 0 0 rg BT 225.25 699.05 Td (AND EXCHANGE COMMISSION) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 244.15 684.65 Td (W) Tj ET Q q 0 0 0 rg BT 255.49 684.65 Td (ashington, D.C. 20549) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 171.00 672.65 Td (______________________________________________________) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 660.65 Td ( ) Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 257.25 639.05 Td (FORM 10-Q) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 171.00 621.05 Td (______________________________________________________) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 603.05 Td (\(Mark One\)) Tj ET Q /GS0 gs q 12.72 0 0 11.71 53.00 578.34 cm /I1 Do Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 73.00 581.92 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 73.00 569.92 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 195.45 553.05 Td ( For) Tj ET Q q 0 0 0 rg BT 213.32 553.05 Td ( the quarterly period ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 333.03 553.05 Td (September) Tj ET Q q 0 0 0 rg BT 378.95 553.05 Td ( 30, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.45 553.05 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 541.05 Td (OR) Tj ET Q /GS0 gs q 10.69 0 0 11.71 53.00 516.34 cm /I2 Do Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 73.00 519.92 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 73.00 507.92 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 219.80 491.05 Td (For) Tj ET Q q 0 0 0 rg BT 235.17 491.05 Td ( the transition period fr) Tj ET Q q 0 0 0 rg BT 335.53 491.05 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 489.48505859375 m 381.3625 489.48505859375 l s q 0 0 0 rg BT 351.36 491.05 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.36 491.05 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 489.48505859375 m 424.692578125 489.48505859375 l s q 0 0 0 rg BT 394.69 491.05 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.65 479.05 Td (Commission file number) Tj ET Q q 0 0 0 rg BT 335.47 479.05 Td ( 000-54673) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 170.00 467.05 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 172.00 467.05 Td (______________________________________________________) Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 92.35 438.25 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 209.21 438.25 Td ( P) Tj ET Q q 0 0 0 rg BT 223.37 438.25 Td (AR) Tj ET Q q 0 0 0 rg BT 248.73 438.25 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 312.26 438.25 Td (AP) Tj ET Q q 0 0 0 rg BT 334.92 438.25 Td (AR) Tj ET Q q 0 0 0 rg BT 360.28 438.25 Td (TMENT) Tj ET Q q 0 0 0 rg BT 425.97 438.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 473.14 438.25 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 190.45 426.25 Td (\(Exact Name of Registrant as Specified in Its Charter\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 171.00 414.25 Td (______________________________________________________) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 152.60 394.48 Td (Maryland) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.00 395.00 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.80 394.48 Td (27-0668930) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.20 382.70 Td (\(State or Other Jurisdiction of) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 124.75 374.70 Td (Incorporation or Or) Tj ET Q q 0 0 0 rg BT 187.25 374.70 Td (ganization\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.65 382.70 Td (\(I.R.S. Employer) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.20 374.70 Td (Identification No.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 95.45 361.48 Td (800 Newport Center) Tj ET Q q 0 0 0 rg BT 181.91 361.48 Td ( Drive, Suite 700) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 116.60 351.53 Td (Newport Beach, California) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.00 354.00 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 354.43 Td (92660) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 108.75 334.00 Td (\(Address of Principal Executive Offices\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.00 334.00 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.30 334.00 Td (\(Zip Code\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 563.00 330.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.75 318.25 Td (\(949\) 417-6500) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 211.90 308.65 Td (\(Registrant’) Tj ET Q q 0 0 0 rg BT 252.92 308.65 Td (s ) Tj ET Q q 0 0 0 rg BT 257.89 308.65 Td (T) Tj ET Q q 0 0 0 rg BT 262.49 308.65 Td (elephone Number) Tj ET Q q 0 0 0 rg BT 322.42 308.65 Td (, Including ) Tj ET Q q 0 0 0 rg BT 360.89 308.65 Td (Ar) Tj ET Q q 0 0 0 rg BT 370.07 308.65 Td (ea Code\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.00 296.65 Td (______________________________________________________________________ ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 74.00 280.85 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 Securities ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 270.05 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 87.23 270.05 Td (Act of 1934 during the preceding 12 months \(or for such shorter period that the registrant was required to file such reports\), and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 259.25 Td (\(2\) has been subject to such filing requirements for the past 90 days. ) Tj ET Q q 0 0 0 rg BT 304.35 259.25 Td (Y) Tj ET Q q 0 0 0 rg BT 309.95 259.25 Td (es ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 321.95 257.31 cm /I3 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.49 259.25 Td ( No ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 355.99 257.31 cm /I4 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 74.00 242.45 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 495.77 242.45 Td (, every Interactive ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 231.65 Td (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 358.78 231.65 Td ( \(§232.405 of this chapter\) during the preceding 12 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 220.85 Td (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 405.84 220.85 Td (Y) Tj ET Q q 0 0 0 rg BT 411.44 220.85 Td (es ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 423.43 218.91 cm /I5 Do Q /GS0 gs q 9.00 0 0 9.18 432.97 218.91 cm /I6 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.97 220.85 Td (No ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 457.47 218.91 cm /I7 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 74.00 204.05 Td (Indicate by check mark whether the registrant is a lar) Tj ET Q q 0 0 0 rg BT 265.00 204.05 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 333.09 204.05 Td (, an accelerated filer) Tj ET Q q 0 0 0 rg BT 405.67 204.05 Td (, a non-accelerated filer) Tj ET Q q 0 0 0 rg BT 490.25 204.05 Td (, a smaller ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 193.25 Td (reporting company or an emer) Tj ET Q q 0 0 0 rg BT 158.80 193.25 Td (ging growth company) Tj ET Q q 0 0 0 rg BT 237.20 193.25 Td (. See the definitions of “lar) Tj ET Q q 0 0 0 rg BT 334.01 193.25 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 402.09 193.25 Td (,” “accelerated filer) Tj ET Q q 0 0 0 rg BT 471.92 193.25 Td (,” “smaller reporting ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 182.45 Td (company” and “emer) Tj ET Q q 0 0 0 rg BT 126.30 182.45 Td (ging growth company” in Rule 12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 323.50 182.45 Td (Act. \(Check one\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 155.41 Td (Lar) Tj ET Q q 0 0 0 rg BT 65.41 155.41 Td (ge ) Tj ET Q q 0 0 0 rg BT 75.82 155.41 Td (Accelerated Filer) Tj ET Q /GS0 gs q 8.02 0 0 9.78 163.00 153.47 cm /I8 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.00 155.41 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.00 155.41 Td (Accelerated Filer) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.00 155.41 Td ( ) Tj ET Q /GS0 gs q 8.02 0 0 9.78 548.00 153.47 cm /I9 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 138.41 Td (Non-Accelerated ) Tj ET Q q 0 0 0 rg BT 116.71 138.41 Td (Filer) Tj ET Q /GS0 gs q 8.02 0 0 9.78 163.00 136.47 cm /I10 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 180.00 138.41 Td (\(Do ) Tj ET Q q 0 0 0 rg BT 196.25 138.41 Td (not ) Tj ET Q q 0 0 0 rg BT 210.00 138.41 Td (check ) Tj ET Q q 0 0 0 rg BT 233.23 138.41 Td (if ) Tj ET Q q 0 0 0 rg BT 240.98 138.41 Td (a ) Tj ET Q q 0 0 0 rg BT 247.22 138.41 Td (smaller ) Tj ET Q q 0 0 0 rg BT 275.96 138.41 Td (reporting ) Tj ET Q q 0 0 0 rg BT 311.20 138.41 Td (company\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.00 138.41 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.00 138.41 Td (Smaller reporting company) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.00 138.41 Td ( ) Tj ET Q /GS0 gs q 9.54 0 0 9.78 548.00 136.47 cm /I11 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.00 121.41 Td (Emer) Tj ET Q q 0 0 0 rg BT 435.33 121.41 Td (ging ) Tj ET Q q 0 0 0 rg BT 453.58 121.41 Td (growth ) Tj ET Q q 0 0 0 rg BT 481.32 121.41 Td (company) Tj ET Q /GS0 gs q 8.02 0 0 9.78 548.00 119.47 cm /I12 Do Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.50 100.65 Td (If an emer) Tj ET Q q 0 0 0 rg BT 109.31 100.65 Td (ging growth company) Tj ET Q q 0 0 0 rg BT 187.72 100.65 Td (, indicate by check mark if the registrant has elected not to use the extended transition period for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 89.85 Td (complying with any new or revised financial accounting standards provided pursuant to Section 13\(a\) of the Exchange ) Tj ET Q q 0 0 0 rg BT 478.63 89.85 Td (Act. ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 502.87 87.91 cm /I13 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.50 73.05 Td (Indicate by check mark whether the registrant is a shell company \(as defined in Rule 12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 462.62 73.05 Td (Act\). ) Tj ET Q q 0 0 0 rg BT 489.52 73.05 Td (Y) Tj ET Q q 0 0 0 rg BT 495.12 73.05 Td (es ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 507.12 71.11 cm /I14 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 515.14 73.05 Td ( No ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 535.14 71.11 cm /I15 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 56.25 Td ( ) Tj ET Q q 0 0 0 rg BT 51.75 56.25 Td (As ) Tj ET Q q 0 0 0 rg BT 64.01 56.25 Td (of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 73.75 56.25 Td (November 9, ) Tj ET Q q 0 0 0 rg BT 122.99 56.25 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 140.99 56.25 Td (, ) Tj ET Q q 0 0 0 rg BT 145.49 56.25 Td (there ) Tj ET Q q 0 0 0 rg BT 165.73 56.25 Td (were ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 185.46 56.25 Td (21,026,756) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.96 56.25 Td ( ) Tj ET Q q 0 0 0 rg BT 228.21 56.25 Td (outstanding ) Tj ET Q q 0 0 0 rg BT 272.46 56.25 Td (shares ) Tj ET Q q 0 0 0 rg BT 297.20 56.25 Td (of ) Tj ET Q q 0 0 0 rg BT 306.95 56.25 Td (common ) Tj ET Q q 0 0 0 rg BT 340.69 56.25 Td (stock ) Tj ET Q q 0 0 0 rg BT 361.94 56.25 Td (of ) Tj ET Q q 0 0 0 rg BT 371.69 56.25 Td (the ) Tj ET Q q 0 0 0 rg BT 384.93 56.25 Td (registrant.) 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 187.30 742.25 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 742.25 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 742.25 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 742.25 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 742.25 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 742.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 742.25 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 264.25 706.25 Td (September) Tj ET Q q 0 0 0 rg BT 310.17 706.25 Td ( 30, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.67 706.25 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 322.08 688.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 662.32 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 95 660.0833984375 m 219.9072265625 660.0833984375 l s q 0 0 1 rg BT 95.00 661.42 Td (FINANCIAL) Tj ET Q q 0 0 1 rg BT 148.52 661.42 Td ( INFORMA) Tj ET Q q 0 0 1 rg BT 196.03 661.42 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 95.00 647.32 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 137 645.9833984375 m 220.59375 645.9833984375 l s q 0 0 1 rg BT 137.00 647.32 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 137 630.9833984375 m 504.1240234375 630.9833984375 l s q 0 0 1 rg BT 137.00 632.32 Td (Consolidated Balance Sheets as of September 30, 2017 \(unaudited\) and December 31, 2016) 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 137 615.9833984375 m 498.953125 615.9833984375 l s q 0 0 1 rg BT 137.00 617.32 Td (Consolidated Statements of Operations \(unaudited\) for the ) Tj ET Q q 0 0 1 rg BT 373.15 617.32 Td (Three and Nine Months Ended ) 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 137 605.9833984375 m 256.7021484375 605.9833984375 l s q 0 0 1 rg BT 137.00 607.32 Td (September 30, 2017 and 2016) 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 137 590.9833984375 m 413.435546875 590.9833984375 l s q 0 0 1 rg BT 137.00 592.32 Td (Consolidated Statements of Stockholders’) Tj ET Q q 0 0 1 rg BT 304.29 592.32 Td ( Equity for the ) Tj ET Q q 0 0 1 rg BT 364.46 592.32 Td (Y) Tj ET Q q 0 0 1 rg BT 370.68 592.32 Td (ear Ended ) 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 137 580.9833984375 m 461.6435546875 580.9833984375 l s q 0 0 1 rg BT 137.00 582.32 Td (December 31, 2016 and the Nine Months Ended September 30, 2017 \(unaudited\)) 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 137 565.9833984375 m 504.7197265625 565.9833984375 l s q 0 0 1 rg BT 137.00 567.32 Td (Consolidated Statements of Cash Flows \(unaudited\) for the Nine Months Ended September ) 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 137 555.9833984375 m 211.4384765625 555.9833984375 l s q 0 0 1 rg BT 137.00 557.32 Td (30, 2017 and 2016) 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 137 540.9833984375 m 511.931640625 540.9833984375 l s q 0 0 1 rg BT 137.00 542.32 Td (Condensed Notes to Consolidated Financial Statements as of September 30, 2017 \(unaudited\)) 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 95.00 527.32 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 137 525.9833984375 m 495.291015625 525.9833984375 l s q 0 0 1 rg BT 137.00 527.32 Td (Management’) Tj ET Q q 0 0 1 rg BT 191.98 527.32 Td (s Discussion and ) Tj ET Q q 0 0 1 rg BT 261.15 527.32 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 95.00 512.32 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 137 510.9833984375 m 376.3896484375 510.9833984375 l s q 0 0 1 rg BT 137.00 512.32 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 95.00 497.32 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 137 495.9833984375 m 235.3154296875 495.9833984375 l s q 0 0 1 rg BT 137.00 497.32 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 53.00 482.32 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 95 480.9833984375 m 199.7216796875 480.9833984375 l s q 0 0 1 rg BT 95.00 482.32 Td (OTHER INFORMA) Tj ET Q q 0 0 1 rg BT 175.84 482.32 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 95.00 467.32 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 137 465.9833984375 m 211.140625 465.9833984375 l s q 0 0 1 rg BT 137.00 467.32 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 95.00 452.32 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 137 450.9833984375 m 187.2783203125 450.9833984375 l s q 0 0 1 rg BT 137.00 452.32 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 95.00 437.32 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 137 435.9833984375 m 378.6015625 435.9833984375 l s q 0 0 1 rg BT 137.00 437.32 Td (Unregistered Sales of Equity Securities and Use of Proceeds) 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 95.00 422.32 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 137 420.9833984375 m 263.9189453125 420.9833984375 l s q 0 0 1 rg BT 137.00 422.32 Td (Defaults upon Senior Securities) 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 95.00 407.32 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 137 405.9833984375 m 235.3154296875 405.9833984375 l s q 0 0 1 rg BT 137.00 407.32 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 95.00 392.32 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 137 390.9833984375 m 210.0322265625 390.9833984375 l s q 0 0 1 rg BT 137.00 392.32 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 95.00 377.32 Td (Item 6.) 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 137 375.9833984375 m 170.3349609375 375.9833984375 l s q 0 0 1 rg BT 137.00 377.32 Td (Exhibits) 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 53 360.9833984375 m 114.1181640625 360.9833984375 l s q 0 0 1 rg BT 53.00 362.32 Td (SIGNA) Tj ET Q q 0 0 1 rg BT 82.45 362.32 Td (TURES) 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 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 554 660.9833984375 m 559 660.9833984375 l s q 0 0 1 rg BT 554.00 662.32 Td (2) 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 554 645.9833984375 m 559 645.9833984375 l s q 0 0 1 rg BT 554.00 647.32 Td (2) 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 554 630.9833984375 m 559 630.9833984375 l s q 0 0 1 rg BT 554.00 632.32 Td (2) 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 554 615.9833984375 m 559 615.9833984375 l s q 0 0 1 rg BT 554.00 617.32 Td (3) 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 554 590.9833984375 m 559 590.9833984375 l s q 0 0 1 rg BT 554.00 592.32 Td (4) 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 554 565.9833984375 m 559 565.9833984375 l s q 0 0 1 rg BT 554.00 567.32 Td (5) 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 554 540.9833984375 m 559 540.9833984375 l s q 0 0 1 rg BT 554.00 542.32 Td (6) 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 549 525.9833984375 m 559 525.9833984375 l s q 0 0 1 rg BT 549.00 527.32 Td (20) 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 549 510.9833984375 m 559 510.9833984375 l s q 0 0 1 rg BT 549.00 512.32 Td (35) 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 549 495.9833984375 m 559 495.9833984375 l s q 0 0 1 rg BT 549.00 497.32 Td (35) 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 549 480.9833984375 m 559 480.9833984375 l s q 0 0 1 rg BT 549.00 482.32 Td (36) 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 549 465.9833984375 m 559 465.9833984375 l s q 0 0 1 rg BT 549.00 467.32 Td (36) 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 549 450.9833984375 m 559 450.9833984375 l s q 0 0 1 rg BT 549.00 452.32 Td (36) 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 549 435.9833984375 m 559 435.9833984375 l s q 0 0 1 rg BT 549.00 437.32 Td (36) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 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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 549 360.9833984375 m 559 360.9833984375 l s q 0 0 1 rg BT 549.00 362.32 Td (41) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL endstream endobj 7 0 obj <>] /Rotate 0 /Contents 8 0 R>> endobj 8 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 701.25 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 701.25 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 701.25 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 701.25 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 701.25 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 701.25 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 701.25 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 701.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 701.25 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 219.40 683.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 279.22 683.25 Td (TED BALANCE SHEETS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.05 665.25 Td (\(in thousands, except share and per share amounts\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 621.75 358.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 621.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 621.75 73.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 621.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 621.75 73.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 592.75 358.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 592.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 592.75 73.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 592.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 592.75 73.00 -14.00 re f 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0.9333333333333333 1 rg /GS0 gs 485.50 508.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 508.75 73.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 480.75 358.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 480.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 480.75 73.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 480.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 480.75 73.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 452.75 358.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 452.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 452.75 73.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 452.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 452.75 73.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 424.75 358.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 424.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 424.75 73.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 424.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 424.75 73.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 396.75 358.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 396.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 396.75 73.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 396.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 396.75 73.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 368.75 358.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 368.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 368.75 73.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 368.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 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412.50 284.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 284.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 284.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 256.75 358.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 256.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 256.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 256.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 256.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 220.75 358.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 220.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 220.75 73.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 220.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 220.75 73.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 182.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 182.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 182.75 73.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 182.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 182.75 73.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 152.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 152.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 152.75 73.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 152.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 152.75 73.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 634.75 m 485.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 634.75 m 562.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 564.75 m 485.5 564.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 564.75 m 562.5 564.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 536.75 m 485.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 536.75 m 562.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 508.75 m 485.5 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 508.75 m 562.5 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 438.75 m 485.5 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 425.75 m 485.5 425.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 423.75 m 485.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 438.75 m 562.5 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 425.75 m 562.5 425.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 423.75 m 562.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 368.75 m 485.5 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 368.75 m 562.5 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 298.75 m 485.5 298.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 284.75 m 485.5 284.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 298.75 m 562.5 298.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 284.75 m 562.5 284.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 167.75 m 485.5 167.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 167.75 m 562.5 167.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 152.75 m 485.5 152.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 138.75 m 485.5 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 136.75 m 485.5 136.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 152.75 m 562.5 152.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 138.75 m 562.5 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 136.75 m 562.5 136.75 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 639.21 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.10 638.98 Td (September 30, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 493.25 638.98 Td (December 31, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 626.01 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.45 625.98 Td (\(unaudited\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 612.21 Td (Assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 597.21 Td (Real estate held for investment:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 86.00 583.21 Td (Land) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.00 583.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.25 583.21 Td (21,205) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.00 583.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 583.21 Td (21,205) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 86.00 569.21 Td (Buildings and improvements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 569.21 Td (162,858) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 569.21 Td (162,574) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 555.21 Td (Total real estate held for investment, cost) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 555.21 Td (184,063) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 555.21 Td (183,779) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 86.00 541.21 Td (Less accumulated depreciation and amortization) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 454.25 541.21 Td (\(24,182) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.00 541.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.25 541.21 Td (\(20,873) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 541.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 527.21 Td (Total real estate held for investment, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 527.21 Td (159,881) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 527.21 Td (162,906) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 513.21 Td (Real estate held for sale, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 513.21 Td (109,448) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 513.21 Td (203,354) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 499.21 Td (Total real estate, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 499.21 Td (269,329) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 499.21 Td (366,260) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 485.21 Td (Cash and cash equivalents) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.25 485.21 Td (47,547) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 485.21 Td (15,998) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 471.21 Td (Restricted cash) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 461.75 471.21 Td (4,151) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 471.21 Td (5,099) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 457.21 Td (Assets related to real estate held for sale) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.00 457.21 Td (17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 457.21 Td (477) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 443.21 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 461.75 443.21 Td (4,278) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 443.21 Td (4,103) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 429.21 Td (Total assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.00 429.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 429.21 Td (325,322) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.00 429.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 429.21 Td (391,937) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 415.21 Td (Liabilities and stockholders’ equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 401.21 Td (Notes payable:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 86.00 387.21 Td (Notes payable, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.00 387.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 387.21 Td (129,526) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.00 387.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 387.21 Td (131,366) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 86.00 373.21 Td (Notes payable related to real estate held for sale, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.25 373.21 Td (82,397) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 373.21 Td (147,780) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 359.21 Td (Total notes payable, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 359.21 Td (211,923) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 359.21 Td (279,146) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 345.21 Td (Accounts payable and accrued liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 461.75 345.21 Td (4,729) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 345.21 Td (5,566) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 331.21 Td (Due to affiliates) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.50 331.21 Td (260) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 331.21 Td (157) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 317.21 Td (Distributions payable) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.50 317.21 Td (938) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 317.21 Td (1,154) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 303.21 Td (Other liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 461.75 303.21 Td (2,465) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 303.21 Td (2,778) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 289.21 Td (Total liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 289.21 Td (220,315) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 289.21 Td (288,801) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 276.01 Td (Commitments and contingencies \(Note 7\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 261.21 Td (Redeemable common stock) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.50 261.21 Td (482) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 261.21 Td (350) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 248.01 Td (Stockholders’ equity:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 234.21 Td (Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 225.21 Td (outstanding) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.00 225.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 225.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 211.21 Td (Common stock, $.01 par value; 1,000,000,000 shares authorized, 21,026,756 and 20,896,268) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 202.21 Td (shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.50 202.21 Td (210) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 202.21 Td (209) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 187.21 Td (Additional paid-in capital) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 187.21 Td (181,138) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 187.21 Td (180,196) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 68.00 172.21 Td (Cumulative distributions and net losses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 454.25 172.21 Td (\(76,823) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.00 172.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.25 172.21 Td (\(77,619) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 172.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 157.21 Td (Total stockholders’ equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 157.21 Td (104,525) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 157.21 Td (102,786) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 142.21 Td (Total liabilities and stockholders’ equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 415.00 142.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 142.21 Td (325,322) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.00 142.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 142.21 Td (391,937) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 120.25 Td (See accompanying condensed notes to consolidated financial statements.) 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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 50.50 615.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 615.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 615.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 615.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 615.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 615.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 615.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 615.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 585.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 585.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 585.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 585.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 585.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 585.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 585.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 585.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 555.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 555.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 555.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 555.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 555.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 555.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 555.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 555.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 525.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 525.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 525.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 525.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 525.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 525.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 525.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 525.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 495.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 495.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 495.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 495.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 495.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 495.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 495.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 495.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 465.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 465.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 465.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 465.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 465.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 465.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 465.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 465.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 435.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 435.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 435.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 435.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 435.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 435.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 435.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 435.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 405.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 405.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 405.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 405.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 405.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 405.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 405.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 405.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 375.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 375.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 375.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 375.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 375.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 375.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 375.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 375.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 345.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 345.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 345.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 345.75 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 345.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 345.75 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 345.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 345.75 62.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 630.75 m 363.5 630.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 630.75 m 367.5 630.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 630.75 m 430.5 630.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 630.75 m 496.5 630.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 630.75 m 500.5 630.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 630.75 m 562.5 630.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 630.75 m 363.5 630.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 615.75 m 363.5 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 630.75 m 430.5 630.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 615.75 m 430.5 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 630.75 m 496.5 630.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 615.75 m 496.5 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 630.75 m 500.5 630.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 630.75 m 562.5 630.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 615.75 m 562.5 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 585.75 m 363.5 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 585.75 m 430.5 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 585.75 m 496.5 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 585.75 m 562.5 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 570.75 m 363.5 570.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 585.75 m 430.5 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 570.75 m 430.5 570.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 570.75 m 496.5 570.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 585.75 m 562.5 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 570.75 m 562.5 570.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 450.75 m 363.5 450.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 450.75 m 430.5 450.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 450.75 m 496.5 450.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 450.75 m 562.5 450.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 435.75 m 363.5 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 435.75 m 430.5 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 435.75 m 496.5 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 435.75 m 562.5 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 375.75 m 363.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 375.75 m 430.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 375.75 m 496.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 375.75 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 300.5 375.75 m 363.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 360.75 m 363.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 375.75 m 430.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 360.75 m 430.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 360.75 m 496.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 360.75 m 562.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 346.75 m 363.5 346.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 344.75 m 363.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 346.75 m 430.5 346.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 344.75 m 430.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 346.75 m 496.5 346.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 344.75 m 496.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 346.75 m 562.5 346.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 344.75 m 562.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 331.75 m 363.5 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 329.75 m 363.5 329.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 344.75 m 430.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 346.75 m 430.5 346.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 331.75 m 430.5 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 329.75 m 430.5 329.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 331.75 m 496.5 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 329.75 m 496.5 329.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 344.75 m 562.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 346.75 m 562.5 346.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 331.75 m 562.5 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 329.75 m 562.5 329.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 329.75 m 363.5 329.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 331.75 m 363.5 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 308.75 m 363.5 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 306.75 m 363.5 306.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 329.75 m 430.5 329.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 331.75 m 430.5 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 308.75 m 430.5 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 306.75 m 430.5 306.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 329.75 m 496.5 329.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 331.75 m 496.5 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 308.75 m 496.5 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 306.75 m 496.5 306.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 329.75 m 562.5 329.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 331.75 m 562.5 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 308.75 m 562.5 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 306.75 m 562.5 306.75 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 635.21 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 303.25 634.98 Td (Three Months Ended September 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.40 634.98 Td (Nine Months Ended September 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 323.50 619.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.50 619.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.00 619.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.00 619.98 Td (2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 605.21 Td (Revenues:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 590.21 Td (Rental income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 303.00 590.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.25 590.21 Td (10,111) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.00 590.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.25 590.21 Td (11,498) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.00 590.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.25 590.21 Td (31,458) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.00 590.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 590.21 Td (34,019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 575.21 Td (Total revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.25 575.21 Td (10,111) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.25 575.21 Td (11,498) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.25 575.21 Td (31,458) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 575.21 Td (34,019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 560.21 Td (Expenses:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 545.21 Td (Operating, maintenance, and management) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.75 545.21 Td (1,528) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.75 545.21 Td (1,671) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.75 545.21 Td (4,435) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 545.21 Td (4,854) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 530.21 Td (Real estate taxes and insurance) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.75 530.21 Td (1,712) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.75 530.21 Td (1,797) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.75 530.21 Td (5,347) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 530.21 Td (5,248) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 515.21 Td (Asset management fees to affiliate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 351.00 515.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 413.50 515.21 Td (104) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.50 515.21 Td (234) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 515.21 Td (343) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 500.21 Td (Property management fees and expenses to affiliate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.75 500.21 Td (1,432) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.75 500.21 Td (1,506) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.75 500.21 Td (4,422) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 500.21 Td (4,359) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 485.21 Td (General and administrative expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.75 485.21 Td (1,082) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 413.50 485.21 Td (473) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.75 485.21 Td (2,190) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 485.21 Td (1,947) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 470.21 Td (Depreciation and amortization) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.75 470.21 Td (2,621) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.75 470.21 Td (3,084) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.75 470.21 Td (8,384) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 470.21 Td (9,201) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 455.21 Td (Interest expense) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.75 455.21 Td (2,320) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.75 455.21 Td (2,588) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.75 455.21 Td (7,180) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 455.21 Td (7,758) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 440.21 Td (Total expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.25 440.21 Td (10,695) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.25 440.21 Td (11,223) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.25 440.21 Td (32,192) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 440.21 Td (33,710) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 425.21 Td (Other income:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 410.21 Td (Interest and other income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 351.00 410.21 Td (31) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.75 410.21 Td (4,765) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.50 410.21 Td (106) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 410.21 Td (4,793) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 395.21 Td (Gain on sale of real estate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.25 395.21 Td (14,653) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.00 395.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.25 395.21 Td (31,123) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 395.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 380.21 Td (Loss from extinguishment of debt) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 343.50 380.21 Td (\(403) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 360.00 380.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.00 380.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.50 380.21 Td (\(671) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 493.00 380.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 380.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 365.21 Td (Total other income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.25 365.21 Td (14,281) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.75 365.21 Td (4,765) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.25 365.21 Td (30,558) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 365.21 Td (4,793) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 350.21 Td (Net income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 303.00 350.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.25 350.21 Td (13,697) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.00 350.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 406.75 350.21 Td (5,040) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.00 350.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.25 350.21 Td (29,824) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.00 350.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 350.21 Td (5,102) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 335.21 Td (Net income per common share, basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 303.00 335.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.25 335.21 Td (0.65) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.00 335.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.25 335.21 Td (0.24) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.00 335.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.25 335.21 Td (1.42) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.00 335.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.25 335.21 Td (0.25) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 321.21 Td (Weighted-average number of common shares outstanding, basic) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 312.21 Td (and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 319.50 312.21 Td (21,010,781) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.50 312.21 Td (20,718,265) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.50 312.21 Td (20,935,670) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.50 312.21 Td (20,601,992) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 290.25 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 713.25 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 713.25 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 713.25 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 713.25 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 713.25 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 713.25 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 713.25 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 713.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 713.25 Td (, INC.) 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 103.80 677.25 Td (For the ) Tj ET Q q 0 0 0 rg BT 134.54 677.25 Td (Y) Tj ET Q q 0 0 0 rg BT 140.76 677.25 Td (ear Ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.51 677.25 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.10 677.25 Td ( and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.25 677.25 Td (Nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.69 677.25 Td ( Months Ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.30 677.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.56 677.25 Td ( \(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.65 662.25 Td (\(dollars in thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 600.75 222.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 600.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 600.75 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 600.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 600.75 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 600.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 600.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 600.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 600.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 600.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 600.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 570.75 222.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 570.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 570.75 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 570.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 570.75 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 570.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 570.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 570.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 570.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 570.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 570.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 540.75 222.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 540.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 540.75 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 540.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 540.75 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 540.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 540.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 540.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 540.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 540.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 540.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 510.75 222.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 510.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 510.75 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 510.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 510.75 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 510.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 510.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 510.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 510.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 510.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 510.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 480.75 222.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 480.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 480.75 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 480.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 480.75 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 480.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 480.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 480.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 480.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 480.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 480.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 450.75 222.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 450.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 450.75 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 450.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 450.75 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 450.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 450.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 450.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 450.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 450.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 450.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 420.75 222.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 420.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 420.75 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 420.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 420.75 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 420.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 420.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 420.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 420.75 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 420.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 420.75 55.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 615.75 m 326.5 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 615.75 m 330.5 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 615.75 m 380.5 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 600.75 m 326.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 600.75 m 380.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 600.75 m 444.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 600.75 m 503.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 600.75 m 562.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 600.75 m 326.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 600.75 m 380.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 600.75 m 444.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 600.75 m 503.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 600.75 m 562.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 510.75 m 326.5 510.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 510.75 m 380.5 510.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 510.75 m 444.5 510.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 510.75 m 503.5 510.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 510.75 m 562.5 510.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 420.75 m 326.5 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 406.75 m 326.5 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 404.75 m 326.5 404.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 420.75 m 380.5 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 406.75 m 380.5 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 404.75 m 380.5 404.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 420.75 m 444.5 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 406.75 m 444.5 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 404.75 m 444.5 404.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 420.75 m 503.5 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 406.75 m 503.5 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 404.75 m 503.5 404.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 420.75 m 562.5 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 406.75 m 562.5 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 404.75 m 562.5 404.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 635.00 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 279.00 635.00 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.00 635.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.75 612.98 Td (Additional ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.85 604.98 Td (Paid-in Capital) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.50 628.98 Td (Cumulative ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.05 620.98 Td (Distributions ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.05 612.98 Td (and Net ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.35 604.98 Td (Income \(Loss\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.75 620.98 Td (T) Tj ET Q q 0 0 0 rg BT 530.35 620.98 Td (otal ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.20 612.98 Td (Stockholders’) Tj ET Q q 0 0 0 rg BT 557.72 612.98 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.90 604.98 Td (Equity) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 620.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 301.65 619.98 Td (Common Stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 605.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.50 604.98 Td (Shares) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.40 604.98 Td (Amounts) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 590.21 Td (Balance, December 31, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 282.50 590.21 Td (20,508,397) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 333.00 590.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.50 590.21 Td (205) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 387.00 590.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.75 590.21 Td (176,476) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 451.00 590.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.25 590.21 Td (\(69,310) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.00 590.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 510.00 590.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 590.21 Td (107,371) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 575.21 Td (Issuance of common stock) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 293.75 575.21 Td (586,585) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 372.50 575.21 Td (6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.75 575.21 Td (5,731) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.00 575.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 575.21 Td (5,737) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 560.21 Td (Redemptions of common stock) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 290.75 560.21 Td (\(198,714) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 323.00 560.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.50 560.21 Td (\(2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.00 560.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.75 560.21 Td (\(2,017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.00 560.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.00 560.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 560.21 Td (\(2,019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 560.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 545.21 Td (Distributions declared) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.00 545.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 545.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.00 545.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.25 545.21 Td (\(13,430) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.00 545.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.25 545.21 Td (\(13,430) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 545.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 530.21 Td (Other offering costs) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.00 530.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 530.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.50 530.21 Td (6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.00 530.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 530.21 Td (6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 515.21 Td (Net income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.00 515.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 515.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.00 515.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.75 515.21 Td (5,121) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 515.21 Td (5,121) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 500.21 Td (Balance, December 31, 2016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 282.50 500.21 Td (20,896,268) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.50 500.21 Td (209) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.75 500.21 Td (180,196) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.25 500.21 Td (\(77,619) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.00 500.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 500.21 Td (102,786) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 485.21 Td (Issuance of common stock) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 293.75 485.21 Td (347,390) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 372.50 485.21 Td (3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 420.75 485.21 Td (2,950) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.00 485.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 485.21 Td (2,953) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 470.21 Td (Redemptions of common stock) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 290.75 470.21 Td (\(216,902) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 323.00 470.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 369.50 470.21 Td (\(2) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.00 470.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.75 470.21 Td (\(1,998) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.00 470.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.00 470.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 470.21 Td (\(2,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 470.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 455.21 Td (Distributions declared) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.00 455.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 455.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.00 455.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.25 455.21 Td (\(29,028) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.00 455.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.25 455.21 Td (\(29,028) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 455.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 440.21 Td (Other offering costs) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.00 440.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 440.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.00 440.21 Td (\(10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.00 440.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.00 440.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 440.21 Td (\(10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 440.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 425.21 Td (Net income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.00 425.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.00 425.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.00 425.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.25 425.21 Td (29,824) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 425.21 Td (29,824) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 410.21 Td (Balance, September 30, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 282.50 410.21 Td (21,026,756) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 333.00 410.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.50 410.21 Td (210) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 387.00 410.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.75 410.21 Td (181,138) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 451.00 410.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.25 410.21 Td (\(76,823) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.00 410.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 510.00 410.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 410.21 Td (104,525) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 388.25 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 713.25 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 713.25 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 713.25 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 713.25 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 713.25 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 713.25 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 713.25 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 713.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 713.25 Td (, INC.) 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 50.50 617.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 617.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 617.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 617.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 617.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 589.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 589.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 589.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 589.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 589.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 561.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 561.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 561.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 561.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 561.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 533.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 533.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 533.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 533.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 533.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 505.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 505.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 505.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 505.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 505.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 477.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 477.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 477.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 477.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 477.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 449.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 449.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 449.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 449.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 449.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 421.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 421.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 421.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 421.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 421.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 393.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 393.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 393.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 393.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 393.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 365.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 365.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 365.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 365.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 365.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 337.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 337.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 337.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 337.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 337.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 309.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 309.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 309.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 309.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 309.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 281.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 281.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 281.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 281.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 281.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 253.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 253.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 253.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 253.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 253.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 225.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 225.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 225.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 225.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 225.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 197.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 197.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 197.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 197.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 197.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 169.75 370.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 169.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 169.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 169.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 169.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 141.75 370.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 141.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 141.75 67.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 141.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 141.75 67.00 -20.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 631.75 m 491.5 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 631.75 m 495.5 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 631.75 m 562.5 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 617.75 m 491.5 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 617.75 m 562.5 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 407.75 m 491.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 393.75 m 491.5 393.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 407.75 m 562.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 393.75 m 562.5 393.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 337.75 m 491.5 337.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 337.75 m 562.5 337.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 337.75 m 491.5 337.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 323.75 m 491.5 323.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 337.75 m 562.5 337.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 323.75 m 562.5 323.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 239.75 m 491.5 239.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 225.75 m 491.5 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 239.75 m 562.5 239.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 225.75 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 424.5 197.75 m 491.5 197.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 184.75 m 491.5 184.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 182.75 m 491.5 182.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 197.75 m 562.5 197.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 184.75 m 562.5 184.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 182.75 m 562.5 182.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 156.75 m 491.5 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 154.75 m 491.5 154.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 156.75 m 562.5 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 154.75 m 562.5 154.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 122.75 m 491.5 122.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 120.75 m 491.5 120.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 122.75 m 562.5 122.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 120.75 m 562.5 120.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 120.75 m 491.5 120.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 122.75 m 491.5 122.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 108.75 m 491.5 108.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 106.75 m 491.5 106.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 120.75 m 562.5 120.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 122.75 m 562.5 122.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 108.75 m 562.5 108.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 106.75 m 562.5 106.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.40 635.98 Td (Nine Months Ended September 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 235.00 621.98 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.50 621.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 621.98 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 608.00 Td (Cash Flows from Operating Activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 594.00 Td (Net income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.00 594.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.30 594.00 Td (29,824) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.00 594.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 594.00 Td (5,102) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 580.00 Td (Adjustments to reconcile net income to net cash provided by operating activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.00 566.00 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 566.00 Td (8,384) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 566.00 Td (9,201) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.00 552.00 Td (Bad debt expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.30 552.00 Td (334) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.30 552.00 Td (371) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.00 538.00 Td (Loss due to property damages) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.30 538.00 Td (767) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.30 538.00 Td (145) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.00 524.00 Td (Loss due to extinguishment of debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.30 524.00 Td (671) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 524.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.00 510.00 Td (Amortization of discount on notes payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.30 510.00 Td (66) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 510.00 Td (65) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.00 496.00 Td (Amortization of deferred financing costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.30 496.00 Td (316) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.30 496.00 Td (311) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.00 482.00 Td (Gain on sale of real estate, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.60 482.00 Td (\(31,123) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 482.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 482.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 468.00 Td (Changes in operating assets and liabilities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.00 454.00 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.60 454.00 Td (\(1,382) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 454.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.60 454.00 Td (\(709) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 454.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.00 440.00 Td (Accounts payable and accrued liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.60 440.00 Td (\(844) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 440.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.30 440.00 Td (159) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.00 426.00 Td (Due to affiliates) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.30 426.00 Td (103) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.60 426.00 Td (\(4,615) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 426.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.00 412.00 Td (Other liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.60 412.00 Td (\(181) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 412.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 412.00 Td (89) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 113.00 398.00 Td (Net cash provided by operating activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 398.00 Td (6,935) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 398.00 Td (10,119) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 384.00 Td (Cash Flows from Investing Activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 370.00 Td (Proceeds from sale of real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.30 370.00 Td (121,305) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 370.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 356.00 Td (Improvements to real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.60 356.00 Td (\(1,804) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 356.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.60 356.00 Td (\(1,749) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 356.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 342.00 Td (Insurance proceeds received for property damage) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.30 342.00 Td (742) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.30 342.00 Td (133) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 113.00 328.00 Td (Net cash provided by \(used in\) investing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.30 328.00 Td (120,243) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.60 328.00 Td (\(1,616) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 328.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 314.00 Td (Cash Flows from Financing Activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 300.00 Td (Principal payments on mortgage notes payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.60 300.00 Td (\(67,668) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 300.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.60 300.00 Td (\(4,355) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 300.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 286.00 Td (Prepayment fees related to the extinguishment of debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.60 286.00 Td (\(608) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 286.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 286.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 272.00 Td (Payments to redeem common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.60 272.00 Td (\(2,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 272.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.60 272.00 Td (\(2,019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 272.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 258.00 Td (Payments of other offering costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.60 258.00 Td (\(10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 258.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.30 258.00 Td (7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 244.00 Td (Distributions paid) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.60 244.00 Td (\(26,291) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 244.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.60 244.00 Td (\(5,715) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 244.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 113.00 230.00 Td (Net cash used in financing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.60 230.00 Td (\(96,577) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 230.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.60 230.00 Td (\(12,082) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 230.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 216.00 Td (Net increase \(decrease\) in cash, cash equivalents and restricted cash) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.30 216.00 Td (30,601) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.60 216.00 Td (\(3,579) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 216.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 202.00 Td (Cash, cash equivalents and restricted cash, beginning of period) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.30 202.00 Td (21,097) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 202.00 Td (24,869) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 188.00 Td (Cash, cash equivalents and restricted cash, end of period) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.00 188.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.30 188.00 Td (51,698) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.00 188.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 188.00 Td (21,290) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 174.00 Td (Supplemental Disclosure of Cash Flow Information:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 160.00 Td (Interest paid) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.00 160.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 160.00 Td (6,957) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.00 160.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 160.00 Td (7,413) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 146.00 Td (Supplemental Disclosure of Noncash Transactions:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 133.70 Td (Distributions paid to common stockholders through common stock issuances pursuant to the dividend) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 125.70 Td (reinvestment plan) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.00 126.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 126.00 Td (2,953) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.00 126.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 126.00 Td (4,324) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 112.00 Td (Increase in redeemable common stock payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.00 112.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.30 112.00 Td (132) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.00 112.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.30 112.00 Td (483) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 90.25 Td (See accompanying condensed notes to consolidated financial statements.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 712.60 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 712.60 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 712.60 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 712.60 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 712.60 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 712.60 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 265.85 676.60 Td (September 30, 2017) 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 (6) 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 72.00 629.10 Td (ORGANIZA) Tj ET Q q 0 0 0 rg BT 126.26 629.10 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 611.10 Td (KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 160.59 611.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 227.33 611.10 Td (, Inc. \(the “Company”\) was formed on July 31, 2009 as a Maryland corporation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (that elected to be taxed as a real estate investment trust \(“REIT”\) beginning with the taxable year ended December 31, 2010. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (Substantially all of the Company’) Tj ET Q q 0 0 0 rg BT 183.93 587.10 Td (s business is conducted through KBS Legacy Partners Limited Partnership \(the “Operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (Partnership”\), a Delaware limited partnership formed on ) Tj ET Q q 0 0 0 rg BT 277.20 575.10 Td (August 4, 2009. ) Tj ET Q q 0 0 0 rg BT 345.91 575.10 Td (The Company is the sole general partner of and owns ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.44 563.10 Td (0.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.27 563.10 Td ( partnership interest in the Operating Partnership. KBS Legacy Partners Holdings LLC \(“REIT) Tj ET Q q 0 0 0 rg BT 459.22 563.10 Td ( Holdings”\), a Delaware ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (limited liability company formed on ) Tj ET Q q 0 0 0 rg BT 196.42 551.10 Td (August 4, 2009, owns the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.18 551.10 Td (99.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.01 551.10 Td ( interest in the Operating Partnership and is its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (sole limited partner) Tj ET Q q 0 0 0 rg BT 126.70 539.10 Td (. ) Tj ET Q q 0 0 0 rg BT 134.02 539.10 Td (The Company is the sole member and manager of REIT) Tj ET Q q 0 0 0 rg BT 357.94 539.10 Td ( Holdings. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 521.10 Td (Subject to certain restrictions and limitations, the business of the Company is externally managed by KBS Capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.10 Td (Advisors LLC \(the “Advisor”\), an af) Tj ET Q q 0 0 0 rg BT 196.50 509.10 Td (filiate of the Company) Tj ET Q q 0 0 0 rg BT 286.11 509.10 Td (, pursuant to an advisory agreement the Company renewed with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td (Advisor on January 25, 2017 \(the “Advisory ) Tj ET Q q 0 0 0 rg BT 229.48 497.10 Td (Agreement”\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 479.10 Td (On ) Tj ET Q q 0 0 0 rg BT 86.17 479.10 Td (August 7, 2009, the Company issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.17 479.10 Td (20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.67 479.10 Td ( shares of its common stock to KBS-Legacy ) Tj ET Q q 0 0 0 rg BT 441.97 479.10 Td (Apartment Community REIT) Tj ET Q q 0 0 0 rg BT 559.55 479.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 467.10 Td (enture, LLC \(the “Sub-Advisor”\), an af) Tj ET Q q 0 0 0 rg BT 212.88 467.10 Td (filiate of the Company) Tj ET Q q 0 0 0 rg BT 302.48 467.10 Td (, at a purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.49 467.10 Td ($10.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.99 467.10 Td ( per share. ) Tj ET Q q 0 0 0 rg BT 468.81 467.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.25 467.10 Td (September 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 455.10 Td (, the Sub-Advisor owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.99 455.10 Td (20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.49 455.10 Td ( shares of common stock of the Company) Tj ET Q q 0 0 0 rg BT 365.20 455.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 437.10 Td (The Company invested in and manages a portfolio of high quality apartment complexes located throughout the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.10 Td (States. ) Tj ET Q q 0 0 0 rg BT 80.71 425.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 140.42 425.10 Td (s portfolio consists of “core” apartment complexes that were already well-positioned and producing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.10 Td (rental income at acquisition. ) Tj ET Q q 0 0 0 rg BT 167.24 413.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.69 413.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.95 413.10 Td (, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.21 413.10 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.21 413.10 Td ( apartment complexes, all of which were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.10 Td (under contract to sell. ) Tj ET Q q 0 0 0 rg BT 140.96 401.10 Td (The sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.88 401.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.54 401.10 Td ( of such properties \(the “Core-Portfolio Properties”\) is subject to stockholder approval of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.10 Td (the Plan of Liquidation \(defined below\) and as such, the Core-Portfolio Properties are held for investment. ) Tj ET Q q 0 0 0 rg BT 479.67 389.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.11 389.10 Td (September 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 377.10 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 130.88 377.10 Td (s remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.32 377.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.98 377.10 Td ( properties were held for sale and subsequent to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.97 377.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.23 377.10 Td (, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td (completed the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.24 365.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.23 365.10 Td ( of these properties. See Note 8, “Subsequent Events — Dispositions Subsequent to September 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (2017.”) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 335.10 Td (On ) Tj ET Q q 0 0 0 rg BT 86.17 335.10 Td (August 19, 2009, the Company filed a registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 380.48 335.10 Td (1 with the Securities and Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (Commission \(the “SEC”\) to of) Tj ET Q q 0 0 0 rg BT 172.09 323.10 Td (fer a minimum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.85 323.10 Td (250,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.35 323.10 Td ( shares and a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.10 323.10 Td (280,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.10 323.10 Td ( shares of common stock for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (sale to the public \(the “Initial Of) Tj ET Q q 0 0 0 rg BT 179.28 311.10 Td (fering”\), of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.69 311.10 Td (80,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.69 311.10 Td ( shares would be of) Tj ET Q q 0 0 0 rg BT 376.27 311.10 Td (fered pursuant to the Company’) Tj ET Q q 0 0 0 rg BT 502.90 311.10 Td (s dividend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (reinvestment plan. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 281.10 Td (The SEC declared the Company’) Tj ET Q q 0 0 0 rg BT 203.63 281.10 Td (s registration statement for the Initial Of) Tj ET Q q 0 0 0 rg BT 364.51 281.10 Td (fering ef) Tj ET Q q 0 0 0 rg BT 398.48 281.10 Td (fective on March 12, 2010, and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (Company retained KBS Capital Markets Group LLC \(the “Dealer Manager”\), an af) Tj ET Q q 0 0 0 rg BT 383.09 269.10 Td (filiate of the Company) Tj ET Q q 0 0 0 rg BT 472.70 269.10 Td (, to serve as the dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (manager for the Initial Of) Tj ET Q q 0 0 0 rg BT 152.05 257.10 Td (fering pursuant to a dealer manager agreement dated March 12, 2010 \(the “Initial Dealer Manager ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (Agreement”\). Under the Initial Dealer Manager ) Tj ET Q q 0 0 0 rg BT 244.41 245.10 Td (Agreement, the Dealer Manager was responsible for marketing the Company’) Tj ET Q q 0 0 0 rg BT 555.42 245.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (shares being of) Tj ET Q q 0 0 0 rg BT 109.86 233.10 Td (fered pursuant to the Initial Of) Tj ET Q q 0 0 0 rg BT 231.58 233.10 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 215.10 Td (On May 31, 2012, the Company filed a registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 370.47 215.10 Td (1 with the SEC to register a follow-on public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 203.10 Td (fering \(the “Follow-on Of) Tj ET Q q 0 0 0 rg BT 161.05 203.10 Td (fering” and together with the Initial Of) Tj ET Q q 0 0 0 rg BT 315.82 203.10 Td (fering, the “Of) Tj ET Q q 0 0 0 rg BT 374.22 203.10 Td (ferings”\). Pursuant to the registration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (statement, as amended, the Company registered up to an additional $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.98 191.10 Td (2,000,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.48 191.10 Td ( of shares of common stock for sale to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (public and up to an additional $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.14 179.10 Td (760,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.14 179.10 Td ( of shares of common stock pursuant to the dividend reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 517.01 179.10 Td (The SEC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (declared the Company’) Tj ET Q q 0 0 0 rg BT 142.24 167.10 Td (s registration statement for the Follow-on Of) Tj ET Q q 0 0 0 rg BT 320.92 167.10 Td (fering ef) Tj ET Q q 0 0 0 rg BT 354.88 167.10 Td (fective on March 8, 2013. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 149.10 Td (The Company retained the Dealer Manager to serve as the dealer manager for the Follow-on Of) Tj ET Q q 0 0 0 rg BT 454.72 149.10 Td (fering pursuant to a dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.10 Td (manager agreement dated March 8, 2013 \(the “Follow-on Dealer Manager ) Tj ET Q q 0 0 0 rg BT 349.10 137.10 Td (Agreement” and together with the Initial Dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.10 Td (Manager ) Tj ET Q q 0 0 0 rg BT 86.99 125.10 Td (Agreement, the “Dealer Manager ) Tj ET Q q 0 0 0 rg BT 222.20 125.10 Td (Agreements”\). On March 12, 2013, the Company ceased of) Tj ET Q q 0 0 0 rg BT 462.50 125.10 Td (fering shares pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.10 Td (the Initial Of) Tj ET Q q 0 0 0 rg BT 100.97 113.10 Td (fering and on March 13, 2013, the Company commenced of) Tj ET Q q 0 0 0 rg BT 340.45 113.10 Td (fering shares to the public pursuant to the Follow-on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.10 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 101.10 Td (fering.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 712.60 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 712.60 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 712.60 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 712.60 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 712.60 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 712.60 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 265.85 676.60 Td (September 30, 2017) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (In the Initial Of) Tj ET Q q 0 0 0 rg BT 134.30 632.10 Td (fering, the Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.45 632.10 Td (18,088,084) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.45 632.10 Td ( shares of common stock for gross of) Tj ET Q q 0 0 0 rg BT 431.30 632.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.54 632.10 Td ($179.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 620.10 Td (, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.67 620.10 Td (368,872) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.17 620.10 Td ( shares of common stock under the dividend reinvestment plan for gross of) Tj ET Q q 0 0 0 rg BT 455.36 620.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.60 620.10 Td ($3.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 608.10 Td (. ) Tj ET Q q 0 0 0 rg BT 85.71 608.10 Td (The Company ceased of) Tj ET Q q 0 0 0 rg BT 182.44 608.10 Td (fering shares in the primary Follow-on Of) Tj ET Q q 0 0 0 rg BT 350.00 608.10 Td (fering on March 31, 2014 and completed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (subscription processing procedures on ) Tj ET Q q 0 0 0 rg BT 204.47 596.10 Td (April 30, 2014. In the Follow-on Of) Tj ET Q q 0 0 0 rg BT 350.67 596.10 Td (fering, the Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.82 596.10 Td (3,943,266) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.82 596.10 Td ( shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (common stock for gross of) Tj ET Q q 0 0 0 rg BT 156.53 584.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.77 584.10 Td ($39.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.66 584.10 Td (, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.94 584.10 Td (2,447,068) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.94 584.10 Td ( shares of common stock under the dividend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (reinvestment plan for gross of) Tj ET Q q 0 0 0 rg BT 169.29 572.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.53 572.10 Td ($23.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.43 572.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 554.10 Td (The Company sold an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.73 554.10 Td (22,031,350) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.73 554.10 Td ( shares of common stock in the Of) Tj ET Q q 0 0 0 rg BT 397.02 554.10 Td (ferings for gross of) Tj ET Q q 0 0 0 rg BT 473.22 554.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td ($218.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.39 542.10 Td (, including an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.80 542.10 Td (2,815,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.80 542.10 Td ( shares of common stock under the dividend reinvestment plan for gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 530.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.89 530.10 Td ($27.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.79 530.10 Td (. ) Tj ET Q q 0 0 0 rg BT 194.10 530.10 Td (The Company terminated the dividend reinvestment plan ef) Tj ET Q q 0 0 0 rg BT 432.46 530.10 Td (fective as of ) Tj ET Q q 0 0 0 rg BT 483.27 530.10 Td (August 20, 2017. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (Also, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.05 518.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.32 518.10 Td (, the Company had redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.72 518.10 Td (1,024,594) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.72 518.10 Td ( shares sold in the Of) Tj ET Q q 0 0 0 rg BT 419.25 518.10 Td (ferings for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.67 518.10 Td ($9.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.57 518.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (Plan of Liquidation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 482.10 Td (On ) Tj ET Q q 0 0 0 rg BT 86.17 482.10 Td (August 14, 2017, in connection with a review of potential strategic alternatives available to the Company) Tj ET Q q 0 0 0 rg BT 506.24 482.10 Td (, the board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (directors unanimously approved the sale of all of the Company’) Tj ET Q q 0 0 0 rg BT 304.16 470.10 Td (s properties and the dissolution of the Company pursuant to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (terms of a plan of complete liquidation and dissolution of the Company \(the “Plan of Liquidation”\), pending stockholder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (approval. ) Tj ET Q q 0 0 0 rg BT 89.30 446.10 Td (The principal purpose of the Plan of Liquidation is to maximize stockholder value by selling the Company’) Tj ET Q q 0 0 0 rg BT 518.10 446.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (properties, paying its debts and distributing the net proceeds from liquidation to the Company’) Tj ET Q q 0 0 0 rg BT 427.21 434.10 Td (s stockholders. Pursuant to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 422.10 Td (s charter) Tj ET Q q 0 0 0 rg BT 124.91 422.10 Td (, the af) Tj ET Q q 0 0 0 rg BT 152.21 422.10 Td (firmative vote of a majority of all of the shares of common stock entitled to vote on the Plan of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (Liquidation is required for approval of the Plan of Liquidation. ) Tj ET Q q 0 0 0 rg BT 303.43 410.10 Td (The Company can provide no assurance that the Plan of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (Liquidation will be approved by the Company’) Tj ET Q q 0 0 0 rg BT 237.24 398.10 Td (s stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 380.10 Td (If the Plan of Liquidation is approved by the Company’) Tj ET Q q 0 0 0 rg BT 293.90 380.10 Td (s stockholders, the Company expects to pay liquidating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (distributions to its stockholders during the liquidation process and to pay the final liquidating distribution after the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (sells all of its remaining properties, pays all of its known liabilities and provides for unknown liabilities. ) Tj ET Q q 0 0 0 rg BT 468.42 356.10 Td (The Company expects ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (to complete these activities within 12 months after stockholder approval of the Plan of Liquidation. However) Tj ET Q q 0 0 0 rg BT 485.10 344.10 Td (, there can be no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (assurances regarding the amounts of any liquidating distributions or the timing thereof.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 308.10 Td (2. ) Tj ET Q q 0 0 0 rg BT 72.50 308.10 Td (SUMMAR) Tj ET Q q 0 0 0 rg BT 118.25 308.10 Td (Y) Tj ET Q q 0 0 0 rg BT 125.10 308.10 Td ( OF) Tj ET Q q 0 0 0 rg BT 141.12 308.10 Td ( SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 210.12 308.10 Td ( ) Tj ET Q q 0 0 0 rg BT 212.07 308.10 Td (ACCOUNTING POLICIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 290.10 Td (There have been no significant changes to the Company’) Tj ET Q q 0 0 0 rg BT 299.65 290.10 Td (s accounting policies since it filed its audited financial statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (in its ) Tj ET Q q 0 0 0 rg BT 71.67 278.10 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 268.01 278.10 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.60 278.10 Td (. For further information about the Company’) Tj ET Q q 0 0 0 rg BT 531.01 278.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (accounting policies, refer to the Company’) Tj ET Q q 0 0 0 rg BT 220.50 266.10 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 50.00 254.10 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 254.10 Td ( included in the Company’) Tj ET Q q 0 0 0 rg BT 234.68 254.10 Td (s ) Tj ET Q q 0 0 0 rg BT 240.52 254.10 Td (Annual Report on Form 10-K filed with the Securities and Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (Commission \(“SEC”\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 224.10 Td (Principles of Consolidation and Basis of Pr) Tj ET Q q 0 0 0 rg BT 232.62 224.10 Td (esentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 206.10 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 50.00 194.10 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 50.00 182.10 Td (the Financial ) Tj ET Q q 0 0 0 rg BT 103.88 182.10 Td (Accounting Standards Board \(“F) Tj ET Q q 0 0 0 rg BT 234.50 182.10 Td (ASB”\) ) Tj ET Q q 0 0 0 rg BT 263.67 182.10 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 50.00 170.10 Td (of the SEC, including the instructions to Form 10-Q and ) Tj ET Q q 0 0 0 rg BT 276.93 170.10 Td (Article 10 of Regulation S-X. ) Tj ET Q q 0 0 0 rg BT 399.97 170.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 449.30 170.10 Td (, the unaudited consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (financial statements do not include all of the information and footnotes required by GAAP) Tj ET Q q 0 0 0 rg BT 411.48 158.10 Td ( for audited financial statements. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 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 50.00 134.10 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 50.00 122.10 Td (results for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.49 122.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.47 122.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.91 122.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.13 122.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.95 122.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.21 122.10 Td ( are not necessarily indicative of the results that may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (expected for the year ending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.33 110.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.92 110.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 92.10 Td (The consolidated financial statements include the accounts of the Company) Tj ET Q q 0 0 0 rg BT 373.70 92.10 Td (, REIT) Tj ET Q q 0 0 0 rg BT 400.74 92.10 Td ( Holdings, the Operating Partnership ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 80.10 Td (and their direct and indirect wholly owned subsidiaries. ) Tj ET Q q 0 0 0 rg BT 276.61 80.10 Td (All significant intercompany balances and transactions are eliminated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 68.10 Td (in consolidation. ) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 712.60 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 712.60 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 712.60 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 712.60 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 712.60 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 712.60 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 265.85 676.60 Td (September 30, 2017) 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 31.60 Td (8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.25 Td (Use of Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 609.25 Td (The preparation of the unaudited consolidated financial statements and condensed notes thereto in conformity with GAAP) Tj ET Q q 0 0 0 rg BT 561.16 609.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 597.25 Td (requires management to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 306.41 597.25 Td (fect the amounts reported in the unaudited consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 585.25 Td (financial statements and condensed notes. ) Tj ET Q q 0 0 0 rg BT 221.89 585.25 Td (Actual results could materially dif) Tj ET Q q 0 0 0 rg BT 358.34 585.25 Td (fer from those estimates. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 567.25 Td (Segments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 549.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.94 549.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.21 549.25 Td (, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.47 549.25 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.47 549.25 Td ( apartment complexes, all of which were under contract to sell. ) Tj ET Q q 0 0 0 rg BT 543.86 549.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 537.25 Td (sale of the Core-Portfolio Properties is subject to stockholder approval of the Plan of Liquidation and as such, the Core-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 525.25 Td (Portfolio Properties are held for investment. ) Tj ET Q q 0 0 0 rg BT 230.52 525.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.96 525.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.22 525.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 396.61 525.25 Td (s remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.04 525.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.70 525.25 Td ( properties were held for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 513.25 Td (sale. Substantially all of the Company’) Tj ET Q q 0 0 0 rg BT 207.48 513.25 Td (s revenue and net income \(loss\) is from real estate, and therefore, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 501.25 Td (currently operates in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.69 501.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.13 501.25 Td ( reportable segment. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 483.25 Td (Reclassifications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 465.25 Td (Certain amounts in the Company’) Tj ET Q q 0 0 0 rg BT 207.48 465.25 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 50.00 453.25 Td (current period presentation. ) Tj ET Q q 0 0 0 rg BT 165.05 453.25 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 544.38 453.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.60 453.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 441.25 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.33 441.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.59 441.25 Td (, the Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.86 441.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.85 441.25 Td ( apartment complexes. ) Tj ET Q q 0 0 0 rg BT 383.54 441.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 433.44 441.25 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.10 441.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.37 441.25 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 429.25 Td (Company had classified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.59 429.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.25 429.25 Td ( apartment complexes as held for sale. ) Tj ET Q q 0 0 0 rg BT 322.70 429.25 Td (As a result, certain assets and liabilities were reclassified to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 417.25 Td (held for sale on the consolidated balance sheets for all periods presented. ) Tj ET Q q 0 0 0 rg BT 346.01 417.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 395.91 417.25 Td (, during the year ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 405.25 Td (2016, the Company elected to early adopt ) Tj ET Q q 0 0 0 rg BT 218.84 405.25 Td (ASU No. 2016-18 \(as defined below\). ) Tj ET Q q 0 0 0 rg BT 375.76 405.25 Td (As a result, the Company no longer presents ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 393.25 Td (the changes within restricted cash in the consolidated statements of cash flows. Instead, restricted cash is included with cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 381.25 Td (and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 369.25 Td (statements of cash flows. In addition, during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.46 369.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.68 369.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.50 369.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.77 369.25 Td (, the Company reclassed the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 357.25 Td (prepayment fee incurred related to the repayment of the mortgage loan secured by a real estate property sold in March 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 345.25 Td (previously recorded as interest expense during the three months ended March 31, 2017, to loss from extinguishment of debt.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 327.25 Td (Squar) Tj ET Q q 0 0 0 rg BT 75.94 327.25 Td (e Footage, Occupancy and Other) Tj ET Q q 0 0 0 rg BT 216.03 327.25 Td ( Measur) Tj ET Q q 0 0 0 rg BT 251.11 327.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 309.25 Td (Any references to square footage or occupancy are unaudited and outside the scope of the Company’) Tj ET Q q 0 0 0 rg BT 475.41 309.25 Td (s independent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 297.25 Td (registered public accounting firm’) Tj ET Q q 0 0 0 rg BT 185.79 297.25 Td (s review of the Company’) Tj ET Q q 0 0 0 rg BT 289.10 297.25 Td (s financial statements in accordance with the standards of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 285.25 Td (United States Public Company ) Tj ET Q q 0 0 0 rg BT 175.00 285.25 Td (Accounting Oversight Board.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 267.25 Td (Per) Tj ET Q q 0 0 0 rg BT 64.80 267.25 Td ( Shar) Tj ET Q q 0 0 0 rg BT 87.69 267.25 Td (e Data) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 249.25 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 50.00 237.25 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 50.00 225.25 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 50.00 213.25 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.33 213.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.54 213.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.37 213.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.63 213.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.07 213.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.07 213.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 195.25 Td (Distributions declared per share of common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.32 195.25 Td ($0.137) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.82 195.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.26 195.25 Td ($1.388) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.76 195.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.13 195.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.12 195.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.56 195.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.77 195.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 183.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.26 183.25 Td (. Distributions declared per share of common stock were based on daily record dates for each day during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 171.25 Td (the period commencing January 1, 2017 through February 28, 2017. Distributions declared per share of common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 159.25 Td (assumes each share was issued and outstanding each day during this period. For each day that was a record date for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 147.25 Td (distributions during this period, distributions were calculated at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.04 147.25 Td ($0.00178082) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.54 147.25 Td ( per share per day) Tj ET Q q 0 0 0 rg BT 463.96 147.25 Td (. For the month of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 135.25 Td (March 2017 and for the period from May 2017 through September 2017, the Company’) Tj ET Q q 0 0 0 rg BT 400.48 135.25 Td (s board of directors declared monthly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 123.25 Td (distributions based on a monthly record date. ) Tj ET Q q 0 0 0 rg BT 234.69 123.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 284.59 123.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 345.97 123.25 Td (s board of directors declared a special distribution in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 111.25 Td (the amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.21 111.25 Td ($1.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.71 111.25 Td ( per share of common stock to stockholders of record as of the close of business on ) Tj ET Q q 0 0 0 rg BT 453.80 111.25 Td (April 20, 2017.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 712.60 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 712.60 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 712.60 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 712.60 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 712.60 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 712.60 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 265.85 676.60 Td (September 30, 2017) 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 31.60 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 627.10 Td (Distributions declared per share of common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.32 627.10 Td ($0.164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.82 627.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.26 627.10 Td ($0.486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.76 627.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.13 627.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.12 627.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.56 627.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.77 627.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 615.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.26 615.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 182.92 615.10 Td (. Distributions declared per share of common stock assumes each share was issued and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 603.10 Td (outstanding each day that was a record date for distributions during these periods. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.46 603.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.45 603.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.89 603.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.10 603.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 591.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.26 591.10 Td (, distributions were based on daily record dates and calculated at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.98 591.10 Td ($0.00178082) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.48 591.10 Td ( per share per day) Tj ET Q q 0 0 0 rg BT 548.91 591.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 579.10 Td (Each day during the periods from January 1, 2016 through February 28, 2016 and March 1, 2016 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.08 579.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.34 579.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 567.10 Td (was a record date for distributions. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 549.10 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 118.89 549.10 Td (Accounting Standards Update) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 531.10 Td (In May 2014, the F) Tj ET Q q 0 0 0 rg BT 150.20 531.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 199.10 531.10 Td (ASU No. 2014-09, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 277.15 531.10 Td (Revenue fr) Tj ET Q q 0 0 0 rg BT 319.82 531.10 Td (om Contracts with Customers \(T) Tj ET Q q 0 0 0 rg BT 449.47 531.10 Td (opic 606\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.52 531.10 Td ( \(“ASU No. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 519.10 Td (2014-09”\). ) Tj ET Q q 0 0 0 rg BT 98.05 519.10 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 50.00 507.10 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 50.00 495.10 Td (services. ) Tj ET Q q 0 0 0 rg BT 89.16 495.10 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 324.38 495.10 Td (Revenue Recognition \(T) Tj ET Q q 0 0 0 rg BT 419.53 495.10 Td (opic 605\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.58 495.10 Td ( and most industry-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 483.10 Td (specific guidance throughout the Industry ) Tj ET Q q 0 0 0 rg BT 218.94 483.10 Td (T) Tj ET Q q 0 0 0 rg BT 224.35 483.10 Td (opics of the Codification. ) Tj ET Q q 0 0 0 rg BT 330.44 483.10 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 50.00 471.10 Td (within the scope of) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 126.37 471.10 Td ( Leases \(T) Tj ET Q q 0 0 0 rg BT 166.57 471.10 Td (opic 840\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.11 471.10 Td (ASU No. 2014-09 was to be ef) Tj ET Q q 0 0 0 rg BT 335.53 471.10 Td (fective for fiscal years, and interim periods within those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 459.10 Td (years, beginning after December 15, 2016, and is to be applied retrospectively) Tj ET Q q 0 0 0 rg BT 362.02 459.10 Td (, with early application not permitted. In ) Tj ET Q q 0 0 0 rg BT 528.09 459.10 Td (August ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 447.10 Td (2015, the F) Tj ET Q q 0 0 0 rg BT 94.54 447.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 143.44 447.10 Td (ASU No. 2015-14, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 221.49 447.10 Td (Revenue fr) Tj ET Q q 0 0 0 rg BT 264.16 447.10 Td (om Contracts with Customers \(T) Tj ET Q q 0 0 0 rg BT 393.81 447.10 Td (opic 606\): Deferral of the Effective Date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 435.10 Td (\(“ASU No. 2015-14”\), which defers the ef) Tj ET Q q 0 0 0 rg BT 219.77 435.10 Td (fective date of ) Tj ET Q q 0 0 0 rg BT 278.90 435.10 Td (ASU No. 2014-09 by one year) Tj ET Q q 0 0 0 rg BT 400.55 435.10 Td (. Early adoption is permitted but not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 423.10 Td (before the original ef) Tj ET Q q 0 0 0 rg BT 133.95 423.10 Td (fective date. ) Tj ET Q q 0 0 0 rg BT 185.12 423.10 Td (The primary source of revenue for the Company is generated through leasing arrangements, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 411.10 Td (which are excluded from this standard. ) Tj ET Q q 0 0 0 rg BT 210.32 411.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 270.03 411.10 Td (s revenues that may be impacted by this standard primarily include other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 399.10 Td (operating income, sales of real estate and other ancillary income earned at its properties. In 2016, other operating income and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 387.10 Td (other ancillary income were approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.65 387.10 Td (3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.98 387.10 Td ( of consolidated revenue. ) Tj ET Q q 0 0 0 rg BT 343.32 387.10 Td (The Company is in process of evaluating how this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 375.10 Td (standard will impact sales of real estate. ) Tj ET Q q 0 0 0 rg BT 214.48 375.10 Td (The Company continues to evaluate the impact that the standard will have on its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 363.10 Td (consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 190.05 363.10 Td (The Company expects to adopt the standard using the modified retrospective approach, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 351.10 Td (which requires a cumulative ef) Tj ET Q q 0 0 0 rg BT 173.10 351.10 Td (fect adjustment as of the date of the adoption. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 333.10 Td (In January 2016, the F) Tj ET Q q 0 0 0 rg BT 162.96 333.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 211.87 333.10 Td (ASU No. 2016-01, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 289.92 333.10 Td (Financial Instruments - Overall \(Subtopic 825-10\): Recognition ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.10 Td (and Measur) Tj ET Q q 0 0 0 rg BT 97.68 321.10 Td (ement of Financial ) Tj ET Q q 0 0 0 rg BT 175.54 321.10 Td (Assets and Financial Liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.48 321.10 Td ( \(“ASU No. 2016-01”\). ) Tj ET Q q 0 0 0 rg BT 400.89 321.10 Td (The amendments in ) Tj ET Q q 0 0 0 rg BT 481.71 321.10 Td (ASU No. 2016-01 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 309.10 Td (address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ) Tj ET Q q 0 0 0 rg BT 476.53 309.10 Td (ASU No. 2016-01 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 297.10 Td (primarily af) Tj ET Q q 0 0 0 rg BT 97.30 297.10 Td (fects accounting for equity investments and financial liabilities where the fair value option has been elected. ) Tj ET Q q 0 0 0 rg BT 533.81 297.10 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 285.10 Td (No. 2016-01 also requires entities to present financial assets and financial liabilities separately) Tj ET Q q 0 0 0 rg BT 426.73 285.10 Td (, grouped by measurement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 273.10 Td (category and form of financial asset in the balance sheet or in the accompanying notes to the financial statements. ) Tj ET Q q 0 0 0 rg BT 509.00 273.10 Td (ASU No. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 261.10 Td (2016-01 is ef) Tj ET Q q 0 0 0 rg BT 102.59 261.10 Td (fective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 249.10 Td (Early application of certain provisions of the standard is permitted for financial statements that have not been previously issued. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 237.10 Td (The Company does not expect the adoption of ) Tj ET Q q 0 0 0 rg BT 236.63 237.10 Td (ASU No. 2016-01 to have a significant impact on its financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 219.10 Td (In February 2016, the F) Tj ET Q q 0 0 0 rg BT 167.96 219.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 216.87 219.10 Td (ASU No. 2016-02, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 294.92 219.10 Td (Leases \(T) Tj ET Q q 0 0 0 rg BT 332.62 219.10 Td (opic 842\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.67 219.10 Td ( \(“ASU No. 2016-02”\). ) Tj ET Q q 0 0 0 rg BT 469.08 219.10 Td (The amendments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 207.10 Td (ASU No. 2016-02 change the existing accounting standards for lease accounting, including requiring lessees to recognize most ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 195.10 Td (leases on their balance sheets and making tar) Tj ET Q q 0 0 0 rg BT 229.47 195.10 Td (geted changes to lessor accounting. ) Tj ET Q q 0 0 0 rg BT 372.76 195.10 Td (ASU No. 2016-02 is ef) Tj ET Q q 0 0 0 rg BT 465.08 195.10 Td (fective for annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 183.10 Td (periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of ) Tj ET Q q 0 0 0 rg BT 508.77 183.10 Td (ASU No. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 171.10 Td (2016-02 as of its issuance is permitted. ) Tj ET Q q 0 0 0 rg BT 210.63 171.10 Td (The new leases standard requires a modified retrospective transition approach for all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 159.10 Td (leases existing at, or entered into after) Tj ET Q q 0 0 0 rg BT 201.48 159.10 Td (, the date of initial application, with an option to use certain transition relief. ) Tj ET Q q 0 0 0 rg BT 511.22 159.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 147.10 Td (Company is currently evaluating the impact of adopting the new leases standard on its consolidated 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 712.60 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 712.60 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 712.60 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 712.60 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 712.60 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 712.60 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 265.85 676.60 Td (September 30, 2017) 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 31.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 627.10 Td (In ) Tj ET Q q 0 0 0 rg BT 84.28 627.10 Td (August 2016, the F) Tj ET Q q 0 0 0 rg BT 160.21 627.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 209.11 627.10 Td (ASU No. 2016-15, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 287.16 627.10 Td (Statement of Cash Flows \(T) Tj ET Q q 0 0 0 rg BT 397.36 627.10 Td (opic 230\): Classification of Certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.10 Td (Cash Receipts and Cash Payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.87 615.10 Td ( \(“ASU No. 2016-15”\). ) Tj ET Q q 0 0 0 rg BT 286.91 615.10 Td (ASU No. 2016-15 is intended to reduce diversity in practice in how ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 603.10 Td (certain transactions are classified in the statement of cash flows. ) Tj ET Q q 0 0 0 rg BT 311.39 603.10 Td (The amendments in ) Tj ET Q q 0 0 0 rg BT 392.21 603.10 Td (ASU No. 2016-15 provide guidance on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 591.10 Td (eight specific cash flow issues, including the following that are or may be relevant to the Company: \(a\) Cash payments for debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 579.10 Td (prepayment or debt extinguishment costs should be classified as cash outflows for financing activities; \(b\) Cash payments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 567.10 Td (relating to contingent consideration made soon after an acquisition’) Tj ET Q q 0 0 0 rg BT 319.37 567.10 Td (s consummation date \(i.e., approximately three months or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 555.10 Td (less\) should be classified as cash outflows for investing activities. Payments made thereafter should be classified as cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 543.10 Td (outflows for financing activities up to the amount of the original contingent consideration liability) Tj ET Q q 0 0 0 rg BT 441.21 543.10 Td (. Payments made in excess of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 531.10 Td (the amount of the original contingent consideration liability should be classified as cash outflows for operating activities; \(c\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 519.10 Td (Cash payments received from the settlement of insurance claims should be classified on the basis of the nature of the loss \(or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 507.10 Td (each component loss, if an entity receives a lump-sum settlement\); and \(d\) In the absence of specific guidance, an entity should ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 495.10 Td (classify each separately identifiable cash source and use on the basis of the nature of the underlying cash flows. For cash flows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 483.10 Td (with aspects of more than one class that cannot be separated, the classification should be based on the activity that is likely to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 471.10 Td (be the predominant source or use of cash flow) Tj ET Q q 0 0 0 rg BT 233.74 471.10 Td (. ) Tj ET Q q 0 0 0 rg BT 240.68 471.10 Td (ASU No. 2016-15 is ef) Tj ET Q q 0 0 0 rg BT 333.00 471.10 Td (fective for fiscal years beginning after December 15, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 459.10 Td (2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. ) Tj ET Q q 0 0 0 rg BT 538.05 459.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 447.10 Td (Company is still evaluating the impact of adopting ) Tj ET Q q 0 0 0 rg BT 254.41 447.10 Td (ASU No. 2016-15 on its financial statements, but does not expect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 435.10 Td (adoption of ) Tj ET Q q 0 0 0 rg BT 97.77 435.10 Td (ASU No. 2016-15 to have a material impact on its financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 417.10 Td (In November 2016, the F) Tj ET Q q 0 0 0 rg BT 174.07 417.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 222.97 417.10 Td (ASU No. 2016-18, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 301.03 417.10 Td (Statement of Cash Flows \(T) Tj ET Q q 0 0 0 rg BT 411.23 417.10 Td (opic 230\): Restricted Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.71 417.10 Td ( \(“ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 405.10 Td (No. 2016-18”\). ) Tj ET Q q 0 0 0 rg BT 115.27 405.10 Td (ASU No. 2016-18 requires that a statement of cash flows explain the change during the period in the total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 393.10 Td (cash, cash equivalents, restricted cash and restricted cash equivalents. ) Tj ET Q q 0 0 0 rg BT 333.32 393.10 Td (Therefore, amounts generally described as restricted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 381.10 Td (cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 369.10 Td (amounts shown on the statement of cash flows. ) Tj ET Q q 0 0 0 rg BT 243.31 369.10 Td (ASU No. 2016-18 is ef) Tj ET Q q 0 0 0 rg BT 335.62 369.10 Td (fective for annual periods beginning after December 15, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 357.10 Td (2017, including interim periods within those fiscal years. ) Tj ET Q q 0 0 0 rg BT 282.83 357.10 Td (The Company elected to early adopt ) Tj ET Q q 0 0 0 rg BT 430.00 357.10 Td (ASU No. 2016-18 for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 345.10 Td (reporting period ended December 31, 2016 and applied it retrospectively) Tj ET Q q 0 0 0 rg BT 340.36 345.10 Td (. ) Tj ET Q q 0 0 0 rg BT 347.31 345.10 Td (As a result of the adoption of ) Tj ET Q q 0 0 0 rg BT 465.90 345.10 Td (ASU No. 2016-18, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 333.10 Td (Company no longer presents the changes within restricted cash in the consolidated statements of cash flows. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 309.10 Td (3. ) Tj ET Q q 0 0 0 rg BT 72.00 309.10 Td (REAL) Tj ET Q q 0 0 0 rg BT 99.23 309.10 Td ( EST) Tj ET Q q 0 0 0 rg BT 119.89 309.10 Td (A) Tj ET Q q 0 0 0 rg BT 126.37 309.10 Td (TE) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 291.10 Td (Real Estate Held for) Tj ET Q q 0 0 0 rg BT 136.24 291.10 Td ( Investment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 273.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 273.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 273.10 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 238.09 273.10 Td (s portfolio of real estate held for investment consisted of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.08 273.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.74 273.10 Td ( Core-Portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.10 Td (Properties \(further described in the table below\), all of which were under contract to sell. ) Tj ET Q q 0 0 0 rg BT 409.74 261.10 Td (The sale of the Core-Portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.10 Td (Properties is subject to stockholder approval of the Plan of Liquidation and as such, the Core-Portfolio Properties are held for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.10 Td (investment. ) Tj ET Q q 0 0 0 rg BT 100.70 237.10 Td (These properties contained ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.94 237.10 Td (1,273) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.44 237.10 Td ( units and encompassing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.98 237.10 Td (1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.87 237.10 Td ( rentable square feet, and were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.52 237.10 Td (93%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.85 237.10 Td ( occupied. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 225.10 Td (The following table provides summary information regarding the properties that were held for investment by the Company as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 213.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 213.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.59 213.10 Td ( \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 168.60 123.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 173.00 168.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 168.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.00 168.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 168.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 168.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 168.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 168.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 168.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 168.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 168.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 140.60 123.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 173.00 140.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 140.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.00 140.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 140.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 140.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 140.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 140.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 140.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 140.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 140.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 112.60 123.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 173.00 112.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 112.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.00 112.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 112.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 112.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 112.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 112.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 112.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 112.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 112.60 75.00 -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 50 168.60000000000002 m 173 168.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 168.60000000000002 m 242 168.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246 168.60000000000002 m 326 168.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 168.60000000000002 m 405 168.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 168.60000000000002 m 484 168.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 168.60000000000002 m 563 168.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 168.60000000000002 m 405 168.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 112.60000000000002 m 405 112.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 112.60000000000002 m 484 112.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 112.60000000000002 m 563 112.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 99.60000000000002 m 405 99.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 97.60000000000002 m 405 97.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 99.60000000000002 m 484 99.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 97.60000000000002 m 484 97.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 99.60000000000002 m 563 99.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 97.60000000000002 m 563 97.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 172.83 Td (Property Name) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 184.25 172.83 Td (Date Acquired) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 270.35 172.83 Td (Location) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.25 180.83 Td (T) Tj ET Q q 0 0 0 rg BT 362.85 180.83 Td (otal ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 337.75 172.83 Td (Real Estate, Cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.30 188.68 Td (Accumulated ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 416.60 180.68 Td (Depr) Tj ET Q q 0 0 0 rg BT 433.78 180.68 Td (eciation and ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.10 172.68 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.25 180.83 Td (T) Tj ET Q q 0 0 0 rg BT 520.85 180.83 Td (otal ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.55 172.83 Td (Real Estate, Net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 158.85 Td (Legacy at Valley Ranch) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 190.75 158.85 Td (10/26/2010) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.45 158.85 Td (Irving, TX) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.50 158.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 379.80 158.85 Td (36,636) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.50 158.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.10 158.85 Td (\(5,813) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.80 158.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.50 158.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 158.85 Td (30,823) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 144.85 Td (The Residence at Waterstone) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 190.75 144.85 Td (04/06/2012) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 261.25 144.85 Td (Pikesville, MD) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 379.80 144.85 Td (65,213) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.10 144.85 Td (\(8,658) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.80 144.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 144.85 Td (56,555) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 130.85 Td (Crystal Park at Waterford) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 190.75 130.85 Td (05/08/2013) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 261.70 130.85 Td (Frederick, MD) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 379.80 130.85 Td (46,224) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.10 130.85 Td (\(6,253) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.80 130.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 130.85 Td (39,971) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 116.85 Td (Lofts at the Highlands) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 190.75 116.85 Td (02/25/2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 262.60 116.85 Td (St. Louis, MO) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 379.80 116.85 Td (35,990) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.10 116.85 Td (\(3,458) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.80 116.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 116.85 Td (32,532) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.50 102.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 102.85 Td (184,063) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.50 102.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.10 102.85 Td (\(24,182) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.80 102.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.50 102.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 102.85 Td (159,881) Tj ET Q BT /F1 10.00 Tf ET 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 712.60 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 712.60 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 712.60 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 712.60 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 712.60 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 712.60 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 265.85 676.60 Td (September 30, 2017) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 121.90 632.10 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.56 632.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.83 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.26 632.10 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.85 632.10 Td (, the Company had recorded unamortized tax abatement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (intangible assets relating to its real estate held for investment, which are included in prepaid expenses and other assets in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (accompanying balance sheets, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.61 608.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.50 608.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.94 608.10 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.83 608.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 353.49 608.10 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.54 608.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.53 608.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.96 608.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.18 608.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 596.10 Td (, the Company recorded amortization expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.92 596.10 Td ($41,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.42 596.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.86 596.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.75 596.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 480.41 596.10 Td (, related to tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (abatement intangible assets. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.96 584.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.94 584.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.38 584.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.60 584.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.42 584.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.69 584.10 Td (, the Company recorded amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.04 572.10 Td ($65,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.54 572.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.98 572.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.87 572.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 248.53 572.10 Td (, related to tax abatement intangible assets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (Real Estate Held for) Tj ET Q q 0 0 0 rg BT 136.24 554.10 Td ( Sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 536.10 Td (In accordance with ) Tj ET Q q 0 0 0 rg BT 151.52 536.10 Td (ASU No. 2014-08, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 229.57 536.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 239.20 536.10 Td (esentation of Financial Statements \(T) Tj ET Q q 0 0 0 rg BT 388.27 536.10 Td (opic 205\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.31 536.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 428.81 536.10 Td (and Pr) Tj ET Q q 0 0 0 rg BT 455.94 536.10 Td (operty) Tj ET Q q 0 0 0 rg BT 480.94 536.10 Td (, Plant, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (Equipment \(T) Tj ET Q q 0 0 0 rg BT 103.30 524.10 Td (opic 360\): Reporting Discontinued Operations and Disclosur) Tj ET Q q 0 0 0 rg BT 349.02 524.10 Td (es of Disposals of Components of an Entity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.52 524.10 Td ( \(“ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (No. 2014-08”\), results of operations from properties that are classified as held for sale in the ordinary course of business would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (generally be included in continuing operations on the Company’) Tj ET Q q 0 0 0 rg BT 306.66 500.10 Td (s consolidated statements of operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 482.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.05 482.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.26 482.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.09 482.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.35 482.10 Td (, the Company disposed of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.79 482.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.77 482.10 Td ( apartment complexes. ) Tj ET Q q 0 0 0 rg BT 498.46 482.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 548.37 482.10 Td (, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 470.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.59 470.10 Td (, the Company had classified Poplar Creek, Legacy at Martin’) Tj ET Q q 0 0 0 rg BT 388.02 470.10 Td (s Point, Millennium ) Tj ET Q q 0 0 0 rg BT 469.70 470.10 Td (Apartment Homes and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (Legacy Grand at Concord as held for sale and subsequent to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.48 458.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.74 458.10 Td (, the Company completed the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.59 458.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.58 458.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (these properties. See Note 8, “Subsequent Events — Dispositions Subsequent to September 30, 2017.” ) Tj ET Q q 0 0 0 rg BT 467.59 446.10 Td (The results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (operations for the properties sold during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.51 434.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.73 434.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.55 434.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.82 434.10 Td ( and the properties held for sale as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 422.10 Td ( are included in continuing operations on the Company’) Tj ET Q q 0 0 0 rg BT 352.49 422.10 Td (s consolidated statements of operations. ) Tj ET Q q 0 0 0 rg BT 516.44 422.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (following table summarizes certain revenues and expenses related to these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.39 410.10 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.16 410.10 Td ( properties, which were included in continuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (operations \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 346.60 267.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.00 346.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 346.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 346.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 346.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 346.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 346.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 346.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 346.60 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 320.60 267.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.00 320.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 320.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 320.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 320.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 320.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 320.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 320.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 320.60 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 294.60 267.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.00 294.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 294.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 294.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 294.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 294.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 294.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 294.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 294.60 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 268.60 267.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.00 268.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 268.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 268.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 268.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 268.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 268.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 268.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 268.60 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 242.60 267.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.00 242.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 242.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 242.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 242.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 242.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 242.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 242.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 242.60 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 216.60 267.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.00 216.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 216.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 216.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 216.60 58.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 216.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 216.60 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 216.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 216.60 56.00 -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 321 359.6 m 380 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 359.6 m 384 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 359.6 m 442 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 359.6 m 503 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 359.6 m 507 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 359.6 m 563 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 359.6 m 380 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 346.6 m 380 346.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 359.6 m 442 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 346.6 m 442 346.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 359.6 m 503 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 346.6 m 503 346.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 359.6 m 563 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 346.6 m 563 346.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 346.6 m 380 346.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 346.6 m 442 346.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 346.6 m 503 346.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 346.6 m 563 346.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 320.6 m 380 320.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 307.6 m 380 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 320.6 m 442 320.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 307.6 m 442 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 320.6 m 503 320.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 307.6 m 503 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 320.6 m 563 320.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 307.6 m 563 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 203.60000000000002 m 380 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 190.60000000000002 m 380 190.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 203.60000000000002 m 442 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 190.60000000000002 m 442 190.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 203.60000000000002 m 503 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 190.60000000000002 m 503 190.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 203.60000000000002 m 563 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 190.60000000000002 m 563 190.60000000000002 l s BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 363.96 Td ( ) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 342.30 372.44 Td (Three Months Ended) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 355.10 363.94 Td (September 30,) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 467.60 372.44 Td (Nine Months Ended) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 478.10 363.94 Td (September 30,) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 350.96 Td ( ) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 341.50 350.94 Td (2017) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 404.00 350.94 Td (2016) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 465.50 350.94 Td (2017) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 526.00 350.94 Td (2016) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 337.96 Td (Revenues) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 64.50 324.96 Td (Rental income) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 323.50 324.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 357.50 324.96 Td (4,968) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 386.50 324.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 419.50 324.96 Td (6,271) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 448.50 324.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 476.25 324.96 Td (15,903) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 509.50 324.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 536.25 324.96 Td (18,583) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 311.96 Td (Total revenues) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 357.50 311.96 Td (4,968) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 419.50 311.96 Td (6,271) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 476.25 311.96 Td (15,903) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 536.25 311.96 Td (18,583) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 298.96 Td (Expenses) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 64.50 285.96 Td (Operating, maintenance, and management) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 363.90 285.96 Td (714) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 425.90 285.96 Td (875) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 480.50 285.96 Td (2,220) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 540.50 285.96 Td (2,564) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 64.50 272.96 Td (Real estate taxes and insurance) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 363.90 272.96 Td (896) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 425.90 272.96 Td (918) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 480.50 272.96 Td (2,918) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 540.50 272.96 Td (2,911) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 64.50 259.96 Td (Asset management fees to affiliate) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 368.15 259.96 Td (—) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 425.90 259.96 Td (174) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 486.90 259.96 Td (138) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 546.90 259.96 Td (174) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 64.50 246.96 Td (Property management fees to affiliate) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 363.90 246.96 Td (767) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 425.90 246.96 Td (843) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 480.50 246.96 Td (2,390) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 540.50 246.96 Td (2,415) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 64.50 233.96 Td (General and administrative expenses) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 368.15 233.96 Td (55) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 430.15 233.96 Td (—) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 491.15 233.96 Td (99) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 555.40 233.96 Td (7) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 64.50 220.96 Td (Depreciation and amortization) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 357.50 220.96 Td (1,279) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 419.50 220.96 Td (1,755) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 480.50 220.96 Td (4,361) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 540.50 220.96 Td (5,237) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 64.50 207.96 Td (Interest expense) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 357.50 207.96 Td (1,048) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 419.50 207.96 Td (1,293) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 480.50 207.96 Td (3,645) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 540.50 207.96 Td (3,876) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 194.96 Td (Total expenses) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 323.50 194.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 357.50 194.96 Td (4,759) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 386.50 194.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 419.50 194.96 Td (5,858) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 448.50 194.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 476.25 194.96 Td (15,771) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 509.50 194.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 536.25 194.96 Td (17,184) Tj ET Q BT /F1 10.00 Tf ET 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 712.60 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 712.60 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 712.60 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 712.60 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 712.60 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 712.60 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 265.85 676.60 Td (September 30, 2017) 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 70.50 632.10 Td (The following summary presents the major components of assets and liabilities related to the Company’) Tj ET Q q 0 0 0 rg BT 485.96 632.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.36 632.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.02 632.10 Td ( real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (properties held for sale as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.57 620.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.83 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.27 620.10 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.86 620.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 590.60 312.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 590.60 98.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.00 590.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 590.60 99.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 564.60 312.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 564.60 98.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.00 564.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 564.60 99.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 538.60 312.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 538.60 98.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.00 538.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 538.60 99.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 512.60 312.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 512.60 98.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.00 512.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 512.60 99.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 486.60 312.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 486.60 98.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.00 486.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 486.60 99.00 -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 362 590.6 m 460 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 590.6 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 362 551.6 m 460 551.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 551.6 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 362 525.6 m 460 525.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 525.6 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 362 513.6 m 460 513.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 511.6 m 460 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 513.6 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 464 511.6 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 362 486.6 m 460 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 486.6 m 563 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 474.6 m 460 474.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 472.6 m 460 472.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 474.6 m 563 474.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 472.6 m 563 472.6 l s BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 594.96 Td ( ) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 375.00 594.94 Td (September 30, 2017) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 478.70 594.94 Td (December 31, 2016) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 581.96 Td (Assets related to real estate held for sale) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 58.50 568.96 Td (Total real estate, at cost) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 364.50 568.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 429.00 568.96 Td (125,737) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 466.50 568.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 532.00 568.96 Td (230,072) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 58.50 555.96 Td (Accumulated depreciation and amortization) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 430.40 555.96 Td (\(16,289) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 456.65 555.96 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 533.40 555.96 Td (\(26,718) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 559.65 555.96 Td (\)) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 58.50 542.96 Td (Real estate held for sale, net) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 429.00 542.96 Td (109,448) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 532.00 542.96 Td (203,354) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 58.50 529.96 Td (Other assets) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 448.15 529.96 Td (17) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 546.90 529.96 Td (477) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 516.96 Td (Total assets related to real estate held for sale) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 364.50 516.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 429.00 516.96 Td (109,465) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 466.50 516.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 532.00 516.96 Td (203,831) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 503.96 Td (Liabilities related to real estate held for sale) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 58.50 490.96 Td (Notes payable, net) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 433.25 490.96 Td (82,397) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 532.00 490.96 Td (147,780) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 477.96 Td (Total liabilities related to real estate held for sale) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 364.50 477.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 433.25 477.96 Td (82,397) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 466.50 477.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 532.00 477.96 Td (147,780) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 450.10 Td (4. ) Tj ET Q q 0 0 0 rg BT 72.00 450.10 Td (NOTES P) Tj ET Q q 0 0 0 rg BT 113.77 450.10 Td (A) Tj ET Q q 0 0 0 rg BT 120.07 450.10 Td (Y) Tj ET Q q 0 0 0 rg BT 126.38 450.10 Td (ABLE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 432.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 432.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 432.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.15 432.10 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.73 432.10 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 336.11 432.10 Td (s notes payable, including notes payable related to real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 420.10 Td (estate held for sale, consisted of the following \(dollars in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 371.60 158.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.00 371.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 371.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 371.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 371.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 371.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 371.60 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 371.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 371.60 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 371.60 9.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 371.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 549.00 371.60 14.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 345.60 158.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.00 345.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 345.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 345.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 345.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 345.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 345.60 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 345.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 345.60 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 345.60 9.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 345.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 549.00 345.60 14.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 319.60 158.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.00 319.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 319.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 319.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 319.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 319.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 319.60 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 319.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 319.60 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 319.60 9.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 319.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 549.00 319.60 14.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 293.60 158.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.00 293.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 293.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 293.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 293.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 293.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 293.60 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 293.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 293.60 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 293.60 9.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 293.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 549.00 293.60 14.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 267.60 158.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.00 267.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 267.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 267.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 267.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 267.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 267.60 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 267.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 267.60 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 267.60 9.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 267.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 549.00 267.60 14.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 241.60 158.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.00 241.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 241.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 241.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 241.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 241.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 241.60 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 241.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 241.60 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 241.60 9.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 241.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 549.00 241.60 14.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 215.60 158.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.00 215.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 215.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 215.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 215.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 215.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 215.60 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 215.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 215.60 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 215.60 9.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 215.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 549.00 215.60 14.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 189.60 158.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.00 189.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 189.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 189.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 189.60 63.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 189.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 189.60 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 189.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 189.60 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 189.60 9.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 189.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 549.00 189.60 14.00 -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 212 371.6 m 278 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 371.6 m 345 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 371.6 m 414 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 371.6 m 491 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 371.6 m 549 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 228.60000000000002 m 278 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 228.60000000000002 m 345 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 189.60000000000002 m 278 189.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 189.60000000000002 m 345 189.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 177.60000000000002 m 278 177.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 175.60000000000002 m 278 175.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 177.60000000000002 m 345 177.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 175.60000000000002 m 345 175.60000000000002 l s BT /F2 7.50 Tf ET q 0 0 0 rg BT 217.90 390.72 Td (Book Value as of) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 221.65 383.22 Td (September 30,) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 237.00 375.72 Td (2017) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 286.40 390.72 Td (Book ) Tj ET Q q 0 0 0 rg BT 304.81 390.72 Td (V) Tj ET Q q 0 0 0 rg BT 309.54 390.72 Td (alue as of ) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 291.20 383.22 Td (December) Tj ET Q q 0 0 0 rg BT 323.55 383.22 Td ( 31, ) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 305.50 375.72 Td (2016) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 361.60 396.02 Td (Contractual ) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 351.80 388.52 Td (Inter) Tj ET Q q 0 0 0 rg BT 367.91 388.52 Td (est Rate as of ) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 358.15 381.02 Td (September) Tj ET Q q 0 0 0 rg BT 392.59 381.02 Td ( 30, ) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 373.50 373.57 Td (2017) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 431.10 375.72 Td (Payment Type) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 509.40 383.22 Td (Maturity) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 516.50 375.72 Td (Date) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 58.50 362.75 Td (Legacy at Valley Ranch Mortgage Loan) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 214.50 362.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 254.35 362.75 Td (30,493) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 284.50 362.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 321.35 362.75 Td (30,958) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 373.15 362.75 Td (3.9%) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 424.40 362.75 Td (Principal & Interest) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 506.90 362.75 Td (04/01/2019) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 58.50 349.75 Td (Poplar Creek Mortgage Loan) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 254.35 349.75 Td (19,125) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 321.35 349.75 Td (19,414) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 373.15 349.75 Td (4.0%) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 424.40 349.75 Td (Principal & Interest) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 506.90 349.75 Td (03/01/2019) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 551.50 353.59 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 58.50 336.75 Td (The Residence at Waterstone Mortgage Loan) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 254.35 336.75 Td (44,955) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 321.35 336.75 Td (45,653) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 373.15 336.75 Td (3.8%) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 424.40 336.75 Td (Principal & Interest) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 506.90 336.75 Td (05/01/2019) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 551.50 340.59 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 58.50 323.75 Td (Legacy Crescent Park Mortgage Loan ) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 174.50 327.15 Td (\(2\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 267.50 323.75 Td (—) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 321.35 323.75 Td (13,560) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 378.15 327.59 Td (\(2\)) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 451.15 327.59 Td (\(2\)) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 521.15 327.59 Td (\(2\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 58.50 310.75 Td (Legacy at Martin’s Point Mortgage Loan) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 254.35 310.75 Td (21,506) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 321.35 310.75 Td (21,866) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 373.15 310.75 Td (3.3%) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 424.40 310.75 Td (Principal & Interest) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 506.90 310.75 Td (06/01/2019) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 551.50 314.59 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 58.50 297.75 Td (W) Tj ET Q q 0 0 0 rg BT 64.98 297.75 Td (esley ) Tj ET Q q 0 0 0 rg BT 82.13 297.75 Td (V) Tj ET Q q 0 0 0 rg BT 87.10 297.75 Td (illage Mortgage Loan ) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 153.95 301.15 Td (\(3\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 267.50 297.75 Td (—) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 321.35 297.75 Td (26,862) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 378.15 301.59 Td (\(3\)) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 451.15 301.59 Td (\(3\)) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 521.15 301.59 Td (\(3\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 58.50 284.75 Td (W) Tj ET Q q 0 0 0 rg BT 64.98 284.75 Td (atertower Mortgage Loan ) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 143.49 288.15 Td (\(4\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 267.50 284.75 Td (—) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 321.35 284.75 Td (23,943) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 378.15 288.59 Td (\(4\)) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 451.15 288.59 Td (\(4\)) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 521.15 288.59 Td (\(4\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 58.50 271.75 Td (Crystal Park Mortgage Loan) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 254.35 271.75 Td (26,477) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 321.35 271.75 Td (27,013) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 373.15 271.75 Td (2.5%) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 424.40 271.75 Td (Principal & Interest) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 506.90 271.75 Td (06/01/2018) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 551.50 275.59 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 58.50 258.75 Td (Millennium Mortgage Loan) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 254.35 258.75 Td (19,806) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 321.35 258.75 Td (20,190) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 373.15 258.75 Td (2.7%) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 424.40 258.75 Td (Principal & Interest) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 506.90 258.75 Td (07/01/2018) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 551.50 262.59 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 58.50 245.75 Td (Legacy Grand at Concord Mortgage Loan) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 254.35 245.75 Td (22,158) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 321.35 245.75 Td (22,392) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 373.15 245.75 Td (4.1%) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 424.40 245.75 Td (Principal & Interest) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 506.90 245.75 Td (12/01/2050) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 551.50 249.59 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 58.50 232.75 Td (Lofts at the Highlands Mortgage Loan) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 254.35 232.75 Td (30,417) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 321.35 232.75 Td (30,754) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 373.15 232.75 Td (3.4%) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 424.40 232.75 Td (Principal & Interest) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 506.90 232.75 Td (08/01/2052) Tj ET Q BT /F1 4.87 Tf ET q 0 0 0 rg BT 551.50 236.59 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 219.75 Td (Total notes payable principal outstanding) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 214.50 219.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 250.60 219.75 Td (214,937) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 284.50 219.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 317.60 219.75 Td (282,605) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 82.50 206.75 Td (Discount on note payable, net) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 255.60 206.75 Td (\(2,578) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.00 206.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 322.60 206.75 Td (\(2,644) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 342.00 206.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 82.50 193.75 Td (Deferred financing costs, net) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 261.25 193.75 Td (\(436) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 275.00 193.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 328.25 193.75 Td (\(815) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 342.00 193.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 180.75 Td (Total notes payable, net) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 214.50 180.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 250.60 180.75 Td (211,923) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 284.50 180.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 317.60 180.75 Td (279,146) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.10 Td (____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 156.13 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 152.50 Td ( ) Tj ET Q q 0 0 0 rg BT 58.72 152.50 Td (The Company has the right to repay the loan subject to certain conditions and prepayment penalties.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 143.52 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.16 139.90 Td (On September 29, 2017, in connection with the disposition of Legacy Crescent Park, the Company paid of) Tj ET Q q 0 0 0 rg BT 398.62 139.90 Td (f the Legacy Crescent Park Mortgage Loan.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 130.92 Td (\(3\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.16 127.30 Td (On March 9, 2017, in connection with the disposition of ) Tj ET Q q 0 0 0 rg BT 239.77 127.30 Td (W) Tj ET Q q 0 0 0 rg BT 246.68 127.30 Td (esley ) Tj ET Q q 0 0 0 rg BT 264.97 127.30 Td (V) Tj ET Q q 0 0 0 rg BT 270.27 127.30 Td (illage, the Company paid of) Tj ET Q q 0 0 0 rg BT 359.22 127.30 Td (f the ) Tj ET Q q 0 0 0 rg BT 375.51 127.30 Td (W) Tj ET Q q 0 0 0 rg BT 382.42 127.30 Td (esley ) Tj ET Q q 0 0 0 rg BT 400.71 127.30 Td (V) Tj ET Q q 0 0 0 rg BT 406.01 127.30 Td (illage Mortgage Loan. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 118.33 Td (\(4\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.16 114.70 Td (On September 12, 2017, in connection with the disposition of ) Tj ET Q q 0 0 0 rg BT 257.10 114.70 Td (W) Tj ET Q q 0 0 0 rg BT 264.01 114.70 Td (atertower ) Tj ET Q q 0 0 0 rg BT 295.78 114.70 Td (Apartments, the Company paid of) Tj ET Q q 0 0 0 rg BT 404.28 114.70 Td (f the ) Tj ET Q q 0 0 0 rg BT 420.57 114.70 Td (W) Tj ET Q q 0 0 0 rg BT 427.48 114.70 Td (atertower Mortgage Loan.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 712.60 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 712.60 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 712.60 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 712.60 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 712.60 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 712.60 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 265.85 676.60 Td (September 30, 2017) 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 72.00 632.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 632.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 632.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.19 632.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.01 632.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.28 632.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.20 632.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.09 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.53 632.10 Td ($7.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.42 632.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (interest expense, respectively) Tj ET Q q 0 0 0 rg BT 166.30 620.10 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.35 620.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.33 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.77 620.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.99 620.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.81 620.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.08 620.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.00 620.10 Td ($2.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 608.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 608.10 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.72 608.10 Td ( of interest expense, respectively) Tj ET Q q 0 0 0 rg BT 276.85 608.10 Td (. Included in interest expense for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.63 608.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.62 608.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.06 608.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.28 608.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 596.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.19 596.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.08 596.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.52 596.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.41 596.10 Td ( of amortization of deferred financing costs, respectively) Tj ET Q q 0 0 0 rg BT 497.34 596.10 Td (. Included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (interest expense for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.02 584.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.00 584.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.44 584.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.66 584.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.48 584.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.75 584.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.18 584.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.07 584.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.51 584.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.40 584.10 Td ( of amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (deferred financing costs, respectively) Tj ET Q q 0 0 0 rg BT 198.23 572.10 Td (. ) Tj ET Q q 0 0 0 rg BT 205.18 572.10 Td (Also included in interest expense for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.30 572.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.29 572.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.72 572.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.94 572.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.77 572.10 Td (September 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 560.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.93 560.10 Td ($22,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.43 560.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.87 560.10 Td ($66,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.37 560.10 Td ( of amortization of discount on a note payable, respectively) Tj ET Q q 0 0 0 rg BT 414.86 560.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.80 560.10 Td ($22,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.30 560.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.74 560.10 Td ($65,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.24 560.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (amortization of discount on a note payable for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.38 548.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.37 548.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.80 548.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.02 548.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.85 548.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.11 548.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 501.77 548.10 Td (. ) Tj ET Q q 0 0 0 rg BT 508.72 548.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 536.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.20 536.10 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.79 536.10 Td (, the Company recorded interest payable of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.72 536.10 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.61 536.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.05 536.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.94 536.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 524.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 506.10 Td (The following is a schedule of maturities, including principal payments, for the Company’) Tj ET Q q 0 0 0 rg BT 433.03 506.10 Td (s notes payable outstanding as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 494.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.59 494.10 Td ( \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 477.60 446.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 477.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 449.60 446.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 449.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 421.60 446.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 421.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 393.60 446.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 393.60 67.00 -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 496 393.6 m 563 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 380.6 m 563 380.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 378.6 m 563 378.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 467.85 Td (October 1, 2017 through December 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 467.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 467.85 Td (1,125) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 453.85 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 453.85 Td (49,291) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 439.85 Td (2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 439.85 Td (113,752) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 425.85 Td (2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 425.85 Td (852) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 411.85 Td (2021) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 411.85 Td (884) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 397.85 Td (Thereafter) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 397.85 Td (49,033) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 383.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 383.85 Td (214,937) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (5. ) Tj ET Q q 0 0 0 rg BT 72.00 356.10 Td (F) Tj ET Q q 0 0 0 rg BT 77.37 356.10 Td (AIR ) Tj ET Q q 0 0 0 rg BT 98.02 356.10 Td (V) Tj ET Q q 0 0 0 rg BT 103.95 356.10 Td (ALUE DISCLOSURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 338.10 Td (Under GAAP) Tj ET Q q 0 0 0 rg BT 127.11 338.10 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 49.50 326.10 Td (addition, the Company is required to measure other non-financial and financial assets at fair value on a non-recurring basis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (\(e.g., carrying value of impaired long-lived assets\). Fair value, as defined under GAAP) Tj ET Q q 0 0 0 rg BT 398.84 314.10 Td (, is the price that would be received ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (date. ) Tj ET Q q 0 0 0 rg BT 73.47 290.10 Td (The GAAP) Tj ET Q q 0 0 0 rg BT 118.38 290.10 Td ( fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (one of the following three categories:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 260.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 260.10 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 85.50 248.10 Td (liabilities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 233.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 233.10 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 85.50 221.10 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 85.50 209.10 Td (observable in active markets; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 194.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 194.10 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 85.50 182.10 Td (significant to the fair value measurement and unobservable.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 712.60 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 712.60 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 712.60 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 712.60 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 712.60 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 712.60 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 265.85 676.60 Td (September 30, 2017) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (The fair value for certain financial instruments is derived using valuation techniques that involve significant management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (judgment. ) Tj ET Q q 0 0 0 rg BT 94.59 620.10 Td (The price transparency of financial instruments is a key determinant of the degree of judgment involved in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (determining the fair value of the Company’) Tj ET Q q 0 0 0 rg BT 222.78 608.10 Td (s financial instruments. Financial instruments for which actively quoted prices or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (transparency than financial instruments for which markets are inactive or consist of non-orderly trades. ) Tj ET Q q 0 0 0 rg BT 466.40 584.10 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (evaluates several factors when determining if a market is inactive or when market transactions are not orderly) Tj ET Q q 0 0 0 rg BT 487.57 572.10 Td (. ) Tj ET Q q 0 0 0 rg BT 494.89 572.10 Td (The following is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (a summary of the methods and assumptions used by management in estimating the fair value of each class of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (instrument 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 72.00 530.10 Td (Cash and cash equivalents, r) Tj ET Q q 0 0 0 rg BT 187.45 530.10 Td (estricted cash, and accounts payable and accrued liabilities: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.24 530.10 Td (These balances approximate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (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 72.00 500.10 Td (Notes payable: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.76 500.10 Td (The fair value of the Company’) Tj ET Q q 0 0 0 rg BT 260.55 500.10 Td (s notes payable is estimated using a discounted cash flow analysis based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (management’) Tj ET Q q 0 0 0 rg BT 103.37 488.10 Td (s estimates of current market interest rates for instruments with similar characteristics, including remaining loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (term, loan-to-value ratio, type of collateral and other credit enhancements. ) Tj ET Q q 0 0 0 rg BT 351.04 476.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 400.95 476.10 Td (, when determining the fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (liabilities 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 49.50 452.10 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 49.50 440.10 Td (quoted prices for similar liabilities or similar liabilities when traded as assets or \(ii\) another valuation technique that is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (consistent with the principles of fair value measurement, such as the income approach or the market approach. ) Tj ET Q q 0 0 0 rg BT 495.83 428.10 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (classifies these inputs as Level 3 inputs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 398.10 Td (The following were the face value, carrying amount and fair value of the Company’) Tj ET Q q 0 0 0 rg BT 406.87 398.10 Td (s notes payable as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.13 398.10 Td (September 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 386.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 386.10 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.52 386.10 Td ( \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 341.60 117.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 167.00 341.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.00 341.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.00 341.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.00 341.60 76.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.00 341.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.00 341.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.00 341.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 341.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 341.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 341.60 76.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 341.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 341.60 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 171 355.6 m 226 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226 355.6 m 230 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230 355.6 m 306 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 355.6 m 310 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 355.6 m 365 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369 355.6 m 424 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 355.6 m 428 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 355.6 m 504 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 355.6 m 508 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 355.6 m 563 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 171 341.6 m 226 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230 341.6 m 306 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 341.6 m 365 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369 341.6 m 424 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 341.6 m 504 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 341.6 m 563 341.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 234.10 359.83 Td (September 30, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.25 359.83 Td (December 31, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 179.40 345.83 Td (Face Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 236.90 345.83 Td (Carrying Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 319.15 345.83 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.40 345.83 Td (Face Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.90 345.83 Td (Carrying Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.15 345.83 Td (Fair Value) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 331.85 Td (Financial liabilities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 317.85 Td (Notes payable) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 116.04 321.48 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 173.50 317.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 196.75 317.85 Td (214,937) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 232.50 317.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 276.80 317.85 Td (211,923) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.50 317.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 335.75 317.85 Td (217,106) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.50 317.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 394.75 317.85 Td (282,605) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 430.50 317.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 474.80 317.85 Td (279,146) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.50 317.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.75 317.85 Td (279,258) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 290.10 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 49.50 278.10 Td (period end and requires a significant amount of judgment. Low levels of transaction volume for certain financial instruments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (have made the estimation of fair values dif) Tj ET Q q 0 0 0 rg BT 220.09 266.10 Td (ficult and, therefore, both the actual results and the Company’) Tj ET Q q 0 0 0 rg BT 467.51 266.10 Td (s estimate of value at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (future date could be materially dif) Tj ET Q q 0 0 0 rg BT 185.65 254.10 Td (ferent. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 45.00 230.10 Td (6. ) Tj ET Q q 0 0 0 rg BT 67.50 230.10 Td (RELA) Tj ET Q q 0 0 0 rg BT 94.54 230.10 Td (TED P) Tj ET Q q 0 0 0 rg BT 122.97 230.10 Td (AR) Tj ET Q q 0 0 0 rg BT 137.06 230.10 Td (TY) Tj ET Q q 0 0 0 rg BT 150.58 230.10 Td ( ) Tj ET Q q 0 0 0 rg BT 152.90 230.10 Td (TRANSACTIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 212.10 Td (The Company has entered into the ) Tj ET Q q 0 0 0 rg BT 206.91 212.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 246.08 212.10 Td (Agreement with the ) Tj ET Q q 0 0 0 rg BT 327.45 212.10 Td (Advisor and the Follow-on Dealer Manager ) Tj ET Q q 0 0 0 rg BT 504.62 212.10 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 200.10 Td (with the Dealer Manager) Tj ET Q q 0 0 0 rg BT 144.13 200.10 Td (. ) Tj ET Q q 0 0 0 rg BT 151.45 200.10 Td (These agreements entitled the ) Tj ET Q q 0 0 0 rg BT 272.51 200.10 Td (Advisor and/or the Dealer Manager to specified fees upon the provision ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 188.10 Td (of certain services with regard to the Follow-on Of) Tj ET Q q 0 0 0 rg BT 248.09 188.10 Td (fering and entitle the ) Tj ET Q q 0 0 0 rg BT 333.06 188.10 Td (Advisor to specified fees upon the provision of certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 176.10 Td (services with regard to the management and disposition of the Company’) Tj ET Q q 0 0 0 rg BT 337.15 176.10 Td (s real estate properties, among other services, as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 164.10 Td (reimbursement of or) Tj ET Q q 0 0 0 rg BT 126.46 164.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 195.70 164.10 Td (fering costs incurred by the ) Tj ET Q q 0 0 0 rg BT 307.06 164.10 Td (Advisor and the Dealer Manager on behalf of the Company) Tj ET Q q 0 0 0 rg BT 544.38 164.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 152.10 Td (such as expenses related to the dividend reinvestment plan, which the Company terminated ef) Tj ET Q q 0 0 0 rg BT 419.71 152.10 Td (fective as of ) Tj ET Q q 0 0 0 rg BT 470.52 152.10 Td (August 20, 2017, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 140.10 Td (certain costs incurred by the ) Tj ET Q q 0 0 0 rg BT 159.68 140.10 Td (Advisor in providing services to the Company) Tj ET Q q 0 0 0 rg BT 344.01 140.10 Td (, such as certain operating costs. ) Tj ET Q q 0 0 0 rg BT 475.45 140.10 Td (The Company has also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 128.10 Td (entered into a fee reimbursement agreement with the Dealer Manager pursuant to which the Company agreed to reimburse the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 116.10 Td (Dealer Manager for certain fees and expenses it incurs for administering the Company’) Tj ET Q q 0 0 0 rg BT 393.21 116.10 Td (s participation in the DTCC ) Tj ET Q q 0 0 0 rg BT 506.25 116.10 Td (Alternative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 104.10 Td (Investment Product Platform with respect to certain accounts of the Company’) Tj ET Q q 0 0 0 rg BT 358.81 104.10 Td (s investors serviced through the platform. ) Tj ET Q q 0 0 0 rg BT 529.70 104.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 92.10 Td (Advisor and Dealer Manager also serve or served as the advisor and dealer manager) Tj ET Q q 0 0 0 rg BT 380.85 92.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 433.51 92.10 Td (, for KBS Real Estate Investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 80.10 Td (T) Tj ET Q q 0 0 0 rg BT 50.76 80.10 Td (rust, Inc. \(“KBS REIT) Tj ET Q q 0 0 0 rg BT 140.28 80.10 Td ( I”\), KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 275.35 80.10 Td (T) Tj ET Q q 0 0 0 rg BT 281.10 80.10 Td (rust II, Inc., KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 447.00 80.10 Td (T) Tj ET Q q 0 0 0 rg BT 452.75 80.10 Td (rust III, Inc., KBS Strategic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 68.10 Td (Opportunity REIT) Tj ET Q q 0 0 0 rg BT 117.86 68.10 Td (, Inc., KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 276.55 68.10 Td ( II, Inc. and KBS Growth & Income REIT) Tj ET Q q 0 0 0 rg BT 444.66 68.10 Td (, Inc. ) Tj ET Q 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 712.60 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 712.60 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 712.60 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 712.60 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 712.60 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 712.60 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 265.85 676.60 Td (September 30, 2017) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 632.10 Td (On January 6, 2014, the Company) Tj ET Q q 0 0 0 rg BT 203.77 632.10 Td (, together with KBS REIT) Tj ET Q q 0 0 0 rg BT 308.31 632.10 Td ( I, KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 435.60 632.10 Td (T) Tj ET Q q 0 0 0 rg BT 441.36 632.10 Td (rust II, Inc., KBS Real Estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 620.10 Td (Investment ) Tj ET Q q 0 0 0 rg BT 91.75 620.10 Td (T) Tj ET Q q 0 0 0 rg BT 97.51 620.10 Td (rust III, Inc., KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 283.13 620.10 Td (, Inc., KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 441.81 620.10 Td ( II, Inc., the Dealer Manager) Tj ET Q q 0 0 0 rg BT 555.24 620.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 608.10 Td (the ) Tj ET Q q 0 0 0 rg BT 59.17 608.10 Td (Advisor and other KBS-af) Tj ET Q q 0 0 0 rg BT 164.24 608.10 Td (filiated entities, entered into an errors and omissions and directors and of) Tj ET Q q 0 0 0 rg BT 455.64 608.10 Td (ficers liability insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 596.10 Td (program where the lower tiers of such insurance coverage are shared. ) Tj ET Q q 0 0 0 rg BT 327.19 596.10 Td (The cost of these lower tiers is allocated by the ) Tj ET Q q 0 0 0 rg BT 517.13 596.10 Td (Advisor and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 584.10 Td (its insurance broker among each of the various entities covered by the program, and is billed directly to each entity) Tj ET Q q 0 0 0 rg BT 503.64 584.10 Td (. ) Tj ET Q q 0 0 0 rg BT 510.96 584.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 572.10 Td (allocation of these shared coverage costs is proportionate to the pricing by the insurance marketplace for the first tiers of directors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 560.10 Td (and of) Tj ET Q q 0 0 0 rg BT 70.09 560.10 Td (ficers liability coverage purchased individually by each REIT) Tj ET Q q 0 0 0 rg BT 315.64 560.10 Td (. ) Tj ET Q q 0 0 0 rg BT 322.96 560.10 Td (The ) Tj ET Q q 0 0 0 rg BT 340.46 560.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 373.05 560.10 Td (’) Tj ET Q q 0 0 0 rg BT 375.83 560.10 Td (s and the Dealer Manager) Tj ET Q q 0 0 0 rg BT 478.93 560.10 Td (’) Tj ET Q q 0 0 0 rg BT 481.71 560.10 Td (s portion of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 548.10 Td (shared lower tiers’) Tj ET Q q 0 0 0 rg BT 118.67 548.10 Td ( cost is proportionate to the respective entities’) Tj ET Q q 0 0 0 rg BT 304.82 548.10 Td ( prior cost for the errors and omissions insurance. In June 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 536.10 Td (KBS Growth & Income REIT) Tj ET Q q 0 0 0 rg BT 164.24 536.10 Td (, Inc. was added to the insurance program at terms similar to those described above. In June 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 524.10 Td (the Company renewed its participation in the program, and the program is ef) Tj ET Q q 0 0 0 rg BT 351.12 524.10 Td (fective through June 30, 2018. ) Tj ET Q q 0 0 0 rg BT 477.21 524.10 Td (As KBS REIT) Tj ET Q q 0 0 0 rg BT 534.81 524.10 Td ( I is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 512.10 Td (implementing its plan of liquidation, at renewal in June 2017, KBS REIT) Tj ET Q q 0 0 0 rg BT 337.83 512.10 Td ( I elected to cease participation in the program and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 500.10 Td (obtain separate insurance coverage. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 482.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.05 482.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.03 482.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.47 482.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.69 482.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.51 482.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.78 482.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.21 482.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.21 482.10 Td (, no other business transactions occurred between the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 470.10 Td (Company and KBS REIT) Tj ET Q q 0 0 0 rg BT 147.31 470.10 Td ( I, KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 274.61 470.10 Td (T) Tj ET Q q 0 0 0 rg BT 280.37 470.10 Td (rust II, Inc., KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 446.26 470.10 Td (T) Tj ET Q q 0 0 0 rg BT 452.02 470.10 Td (rust III, Inc., KBS Strategic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 458.10 Td (Opportunity REIT) Tj ET Q q 0 0 0 rg BT 117.86 458.10 Td (, Inc., KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 276.55 458.10 Td ( II, Inc. and KBS Growth & Income REIT) Tj ET Q q 0 0 0 rg BT 444.66 458.10 Td (, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 440.10 Td (Pursuant to the terms of these agreements and the property management agreements discussed below) Tj ET Q q 0 0 0 rg BT 470.89 440.10 Td (, summarized below are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 428.10 Td (the related-party costs incurred by the Company for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.09 428.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.08 428.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.52 428.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.73 428.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.56 428.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.82 428.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.26 428.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.26 428.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 558.92 428.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 416.10 Td (and any related amounts payable as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.22 416.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.48 416.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.92 416.10 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.51 416.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 351.60 175.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 351.60 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 351.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 351.60 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.50 351.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 351.60 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 351.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 351.60 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 351.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 351.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.50 351.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.50 351.60 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 323.60 175.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 323.60 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 323.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 323.60 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.50 323.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 323.60 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 323.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 323.60 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 323.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 323.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.50 323.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.50 323.60 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 295.60 175.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 295.60 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 295.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 295.60 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.50 295.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.50 295.60 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 295.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 295.60 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 295.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 295.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.50 295.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.50 295.60 54.00 -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 220.5 385.6 m 274.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 385.6 m 278.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 385.6 m 332.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 385.6 m 336.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 385.6 m 390.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 385.6 m 394.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 385.6 m 448.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 385.6 m 452.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 385.6 m 509.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 385.6 m 513.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 385.6 m 567.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 385.6 m 274.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 385.6 m 390.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 385.6 m 452.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 385.6 m 509.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 385.6 m 567.5 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 351.6 m 274.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 351.6 m 278.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 351.6 m 332.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 351.6 m 390.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 351.6 m 448.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 351.6 m 509.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 351.6 m 567.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 351.6 m 274.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 351.6 m 278.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 351.6 m 332.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 351.6 m 390.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 351.6 m 448.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 281.6 m 274.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 281.6 m 332.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 281.6 m 390.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 281.6 m 448.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 281.6 m 509.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 281.6 m 567.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 281.6 m 274.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 268.6 m 274.5 268.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 266.6 m 274.5 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 281.6 m 332.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 268.6 m 332.5 268.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278.5 266.6 m 332.5 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 281.6 m 390.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 268.6 m 390.5 268.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 266.6 m 390.5 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 281.6 m 448.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 268.6 m 448.5 268.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 266.6 m 448.5 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 281.6 m 509.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 268.6 m 509.5 268.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 266.6 m 509.5 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 281.6 m 567.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 268.6 m 567.5 268.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 266.6 m 567.5 266.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 318.70 389.83 Td (Incurred) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.05 389.83 Td (Payable as of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 239.60 377.28 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 251.60 369.28 Td (September 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 357.75 377.28 Td (Nine Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.60 369.28 Td (September 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.10 373.28 Td (September 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.75 373.28 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 239.00 355.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.00 355.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 355.00 355.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 413.00 355.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.50 355.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.00 355.83 Td (2016) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 48.00 341.83 Td (Expensed) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 327.85 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 125.53 331.48 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 223.00 327.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.30 327.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 281.00 327.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 317.30 327.85 Td (104) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 339.00 327.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.30 327.85 Td (234) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.00 327.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.30 327.85 Td (343) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.00 327.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.30 327.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 516.00 327.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 556.30 327.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 313.85 Td (Reimbursable operating expenses) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 155.52 317.48 Td ( \(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.30 313.85 Td (68) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 321.30 313.85 Td (68) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.30 313.85 Td (192) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.30 313.85 Td (184) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.30 313.85 Td (24) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 556.30 313.85 Td (15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 299.85 Td (Property management fees and expenses ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 179.73 303.48 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.30 299.85 Td (1,432) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.30 299.85 Td (1,506) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.30 299.85 Td (4,422) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.30 299.85 Td (4,359) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.30 299.85 Td (236) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.30 299.85 Td (142) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 285.85 Td (Disposition fees ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 101.77 289.48 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.30 285.85 Td (436) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 321.30 285.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.30 285.85 Td (807) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.30 285.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.30 285.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 556.30 285.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 223.00 271.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.30 271.85 Td (1,936) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 281.00 271.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.30 271.85 Td (1,678) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 339.00 271.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.30 271.85 Td (5,655) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.00 271.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.30 271.85 Td (4,886) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.00 271.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.30 271.85 Td (260) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 516.00 271.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.30 271.85 Td (157) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 256.10 Td (____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 45.00 247.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.06 243.50 Td ( See “Advisory ) Tj ET Q q 0 0 0 rg BT 101.50 243.50 Td (Agreement – ) Tj ET Q q 0 0 0 rg BT 144.60 243.50 Td (Asset Management Fee” below) Tj ET Q q 0 0 0 rg BT 244.27 243.50 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 45.00 234.52 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.06 230.90 Td ( Reimbursable operating expenses primarily consist of marketing research costs and property site visit expenses incurred by the Sub-Advisor and internal audit ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 45.00 221.30 Td (personnel costs, accounting software and cybersecurity related expenses incurred by the ) Tj ET Q q 0 0 0 rg BT 328.01 221.30 Td (Advisor under the ) Tj ET Q q 0 0 0 rg BT 387.33 221.30 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 418.67 221.30 Td (Agreement. Beginning July 1, 2010, the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 45.00 211.70 Td (Company has reimbursed the ) Tj ET Q q 0 0 0 rg BT 140.09 211.70 Td (Advisor for the Company’) Tj ET Q q 0 0 0 rg BT 224.30 211.70 Td (s allocable portion of the salaries, benefits and overhead of internal audit department personnel providing ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 45.00 202.10 Td (services to the Company) Tj ET Q q 0 0 0 rg BT 123.35 202.10 Td (. ) Tj ET Q q 0 0 0 rg BT 129.21 202.10 Td (These amounts totaled ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 203.19 202.10 Td ($47,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 229.19 202.10 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.74 202.10 Td ($48,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.74 202.10 Td ( for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 295.84 202.10 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.83 202.10 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.49 202.10 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 424.70 202.10 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 440.25 202.10 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.25 202.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 498.38 202.10 Td (, and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 515.93 202.10 Td ($1) Tj ET Q q 0 0 0 rg BT 523.63 202.10 Td (19,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.63 202.10 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 45.00 192.50 Td ($123,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 75.00 192.50 Td ( for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 100.10 192.50 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 113.88 192.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 162.54 192.50 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.75 192.50 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 242.30 192.50 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 258.30 192.50 Td (, respectively) Tj ET Q q 0 0 0 rg BT 300.43 192.50 Td (, and were the only type of employee costs reimbursed under the ) Tj ET Q q 0 0 0 rg BT 508.59 192.50 Td (Advisory ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 45.00 182.90 Td (Agreement through ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 109.43 182.90 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 173.64 182.90 Td (. ) Tj ET Q q 0 0 0 rg BT 179.49 182.90 Td (The Company does not reimburse for employee costs in connection with services for which the ) Tj ET Q q 0 0 0 rg BT 485.86 182.90 Td (Advisor earns ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 45.00 173.30 Td (acquisition or disposition fees \(other than reimbursement of travel and communication expenses\) or for the salaries or benefits the ) Tj ET Q q 0 0 0 rg BT 462.43 173.30 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 514.50 173.30 Td (filiates may pay ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 45.00 163.70 Td (to the Company’) Tj ET Q q 0 0 0 rg BT 98.33 163.70 Td (s executive of) Tj ET Q q 0 0 0 rg BT 142.61 163.70 Td (ficers. In addition to the amounts above, the Company reimburses the ) Tj ET Q q 0 0 0 rg BT 368.78 163.70 Td (Advisor and Sub-Advisor for certain of the Company’) Tj ET Q q 0 0 0 rg BT 541.86 163.70 Td (s direct ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 45.00 154.10 Td (property operating costs incurred from third parties that were initially paid by the ) Tj ET Q q 0 0 0 rg BT 306.48 154.10 Td (Advisor and Sub-Advisor on behalf of the Company) Tj ET Q q 0 0 0 rg BT 473.71 154.10 Td (. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 45.00 145.13 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.06 141.50 Td ( Property management fees and expenses are all paid to Legacy Partners, Inc. \(“LPI”\), an af) Tj ET Q q 0 0 0 rg BT 344.57 141.50 Td (filiate of the Sub-Advisor) Tj ET Q q 0 0 0 rg BT 426.23 141.50 Td (, and consist of \(i\) reimbursable on-site ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 45.00 131.90 Td (salary and related benefits expenses for personnel at the managed properties, and \(ii\) fees for account maintenance and bookkeeping services. See “— Property ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 45.00 122.30 Td (Management ) Tj ET Q q 0 0 0 rg BT 88.32 122.30 Td (Agreements.”) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 45.00 113.33 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.06 109.70 Td ( Disposition fees with respect to real estate sold are included in the gain on sale of real estate, net, in the accompanying consolidated statements of operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 85.70 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.05 85.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.26 85.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.09 85.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.35 85.70 Td (, the ) Tj ET Q q 0 0 0 rg BT 290.52 85.70 Td (Advisor reimbursed the Company for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.93 85.70 Td ($27,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.43 85.70 Td ( property insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 73.70 Td (rebate. ) Tj ET Q 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 712.60 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 712.60 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 712.60 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 712.60 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 712.60 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 712.60 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 265.85 676.60 Td (September 30, 2017) 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 67.50 632.10 Td (In connection with the Follow-on Of) Tj ET Q q 0 0 0 rg BT 214.24 632.10 Td (fering, the Company’) Tj ET Q q 0 0 0 rg BT 299.50 632.10 Td (s sponsors agreed to provide additional indemnification to one of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 620.10 Td (the participating broker) Tj ET Q q 0 0 0 rg BT 138.65 620.10 Td (-dealers. ) Tj ET Q q 0 0 0 rg BT 177.62 620.10 Td (The Company agreed to add supplemental coverage to its directors’) Tj ET Q q 0 0 0 rg BT 447.62 620.10 Td ( and of) Tj ET Q q 0 0 0 rg BT 475.21 620.10 Td (ficers’) Tj ET Q q 0 0 0 rg BT 500.00 620.10 Td ( insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 608.10 Td (coverage to insure the sponsors’) Tj ET Q q 0 0 0 rg BT 173.11 608.10 Td ( obligations under this indemnification agreement in exchange for reimbursement by the sponsors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 596.10 Td (to the Company for all costs, expenses and premiums related to this supplemental coverage. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.95 596.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.17 596.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 584.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.26 584.10 Td (, the ) Tj ET Q q 0 0 0 rg BT 144.43 584.10 Td (Advisor incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.97 584.10 Td ($61,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.47 584.10 Td ( for the costs of the supplemental coverage obtained by the Company) Tj ET Q q 0 0 0 rg BT 523.68 584.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 563.10 Td (On March 9, 2017, the Company sold ) Tj ET Q q 0 0 0 rg BT 220.91 563.10 Td (W) Tj ET Q q 0 0 0 rg BT 229.55 563.10 Td (esley ) Tj ET Q q 0 0 0 rg BT 252.42 563.10 Td (V) Tj ET Q q 0 0 0 rg BT 259.04 563.10 Td (illage to the Purchaser) Tj ET Q q 0 0 0 rg BT 347.62 563.10 Td (. Gary ) Tj ET Q q 0 0 0 rg BT 377.43 563.10 Td (T) Tj ET Q q 0 0 0 rg BT 382.80 563.10 Td (. Kachadurian, one of the Company’) Tj ET Q q 0 0 0 rg BT 528.03 563.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 551.10 Td (independent directors, is also a director of a real estate investment trust sponsored by the purchaser of ) Tj ET Q q 0 0 0 rg BT 454.13 551.10 Td (W) Tj ET Q q 0 0 0 rg BT 462.77 551.10 Td (esley ) Tj ET Q q 0 0 0 rg BT 485.63 551.10 Td (V) Tj ET Q q 0 0 0 rg BT 492.26 551.10 Td (illage \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 539.10 Td (“Purchaser REIT”\) and is ) Tj ET Q q 0 0 0 rg BT 149.78 539.10 Td (V) Tj ET Q q 0 0 0 rg BT 156.40 539.10 Td (ice Chairman of the manager of the Purchaser REIT) Tj ET Q q 0 0 0 rg BT 364.47 539.10 Td ( and as such, Mr) Tj ET Q q 0 0 0 rg BT 429.74 539.10 Td (. Kachadurian \(i\) recused himself ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 527.10 Td (from all of the Company’) Tj ET Q q 0 0 0 rg BT 146.65 527.10 Td (s deliberations relating to the disposition of ) Tj ET Q q 0 0 0 rg BT 322.27 527.10 Td (W) Tj ET Q q 0 0 0 rg BT 330.91 527.10 Td (esley ) Tj ET Q q 0 0 0 rg BT 353.77 527.10 Td (V) Tj ET Q q 0 0 0 rg BT 360.40 527.10 Td (illage, and \(ii\) informed the Company and its board ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 515.10 Td (of directors that he recused himself from all of the Purchaser REIT’) Tj ET Q q 0 0 0 rg BT 315.19 515.10 Td (s and its manager) Tj ET Q q 0 0 0 rg BT 385.26 515.10 Td (’) Tj ET Q q 0 0 0 rg BT 388.04 515.10 Td (s deliberations relating to the acquisition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 503.10 Td (W) Tj ET Q q 0 0 0 rg BT 53.64 503.10 Td (esley ) Tj ET Q q 0 0 0 rg BT 76.50 503.10 Td (V) Tj ET Q q 0 0 0 rg BT 83.13 503.10 Td (illage.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 45.00 482.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 85.84 482.10 Td (Agr) Tj ET Q q 0 0 0 rg BT 102.32 482.10 Td (eement - ) Tj ET Q q 0 0 0 rg BT 140.63 482.10 Td (Asset Management Fee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 464.10 Td (Pursuant to the ) Tj ET Q q 0 0 0 rg BT 129.44 464.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 168.61 464.10 Td (Agreement, the asset management fee payable by the Company to the ) Tj ET Q q 0 0 0 rg BT 449.63 464.10 Td (Advisor with respect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 452.10 Td (investments in real estate is a monthly fee equal to the lesser of one-twelfth of \(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.56 452.10 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.39 452.10 Td ( of the amount paid or allocated to fund the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 440.10 Td (acquisition, development, construction or improvement of the property \(whether at or subsequent to acquisition\), including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 428.10 Td (acquisition expenses and budgeted capital improvement costs \(regardless of the level of debt used to finance the investment\), and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 416.10 Td (\(ii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.72 416.10 Td (2.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.55 416.10 Td ( of the amount paid or allocated to fund the acquisition, development, construction or improvement of the property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 404.10 Td (\(whether at or subsequent to acquisition\), including acquisition expenses and budgeted capital improvement costs, less any debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 392.10 Td (used to finance the investment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 374.10 Td (The ) Tj ET Q q 0 0 0 rg BT 85.00 374.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 124.17 374.10 Td (Agreement defers the Company’) Tj ET Q q 0 0 0 rg BT 254.40 374.10 Td (s obligation to pay asset management fees, without interest, accruing from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 362.10 Td (February 1, 2013 through July 31, 2013. ) Tj ET Q q 0 0 0 rg BT 211.20 362.10 Td (The Company will only be obligated to pay the ) Tj ET Q q 0 0 0 rg BT 402.00 362.10 Td (Advisor such deferred amounts if and to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 350.10 Td (the extent that the Company’) Tj ET Q q 0 0 0 rg BT 160.53 350.10 Td (s funds from operations, as such term is defined by the National ) Tj ET Q q 0 0 0 rg BT 417.97 350.10 Td (Association of Real Estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 338.10 Td (Investment ) Tj ET Q q 0 0 0 rg BT 91.75 338.10 Td (T) Tj ET Q q 0 0 0 rg BT 97.51 338.10 Td (rusts and interpreted by the Company) Tj ET Q q 0 0 0 rg BT 247.10 338.10 Td (, as adjusted for the ef) Tj ET Q q 0 0 0 rg BT 335.22 338.10 Td (fects of straight-line rents and acquisition costs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 326.10 Td (expenses \(“AFFO”\) for the immediately preceding month exceeds the amount of distributions declared for record dates of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 314.10 Td (prior month \(an “AFFO Surplus”\). ) Tj ET Q q 0 0 0 rg BT 188.42 314.10 Td (The amount of any ) Tj ET Q q 0 0 0 rg BT 266.18 314.10 Td (AFFO Surplus in a given month shall be applied first to pay to the ) Tj ET Q q 0 0 0 rg BT 532.82 314.10 Td (Advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 302.10 Td (asset management fees currently due with respect to such month \(including any that would otherwise have been deferred for that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 290.10 Td (month in accordance with the ) Tj ET Q q 0 0 0 rg BT 165.24 290.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 204.41 290.10 Td (Agreement\) and then to pay asset management fees previously deferred by the ) Tj ET Q q 0 0 0 rg BT 519.85 290.10 Td (Advisor in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 278.10 Td (accordance with the ) Tj ET Q q 0 0 0 rg BT 126.90 278.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 166.07 278.10 Td (Agreement that remain unpaid. ) Tj ET Q q 0 0 0 rg BT 294.92 278.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.37 278.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.63 278.10 Td (, the Company had deferred payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 266.10 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.89 266.10 Td ( of asset management fees for the period from February 2013 through July 2013, but did not record an accrual on its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 254.10 Td (books as the Company believed that the chance of payment of this amount to the ) Tj ET Q q 0 0 0 rg BT 369.64 254.10 Td (Advisor is remote. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 236.10 Td (In addition, the ) Tj ET Q q 0 0 0 rg BT 130.27 236.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 169.44 236.10 Td (Agreement defers without interest under certain circumstances, the Company’) Tj ET Q q 0 0 0 rg BT 481.27 236.10 Td (s obligation to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 224.10 Td (asset management fees accruing from ) Tj ET Q q 0 0 0 rg BT 197.44 224.10 Td (August 1, 2013. Specifically) Tj ET Q q 0 0 0 rg BT 313.44 224.10 Td (, the ) Tj ET Q q 0 0 0 rg BT 332.60 224.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 371.77 224.10 Td (Agreement defers the Company’) Tj ET Q q 0 0 0 rg BT 502.01 224.10 Td (s obligation to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 212.10 Td (pay an asset management fee for any month in which the Company’) Tj ET Q q 0 0 0 rg BT 316.87 212.10 Td (s modified funds from operations \(“MFFO”\) for such month, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 200.10 Td (as such term is defined in the practice guideline issued by the Investment Program ) Tj ET Q q 0 0 0 rg BT 376.03 200.10 Td (Association \(“IP) Tj ET Q q 0 0 0 rg BT 441.48 200.10 Td (A”\) in November 2010 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 188.10 Td (interpreted by the Company) Tj ET Q q 0 0 0 rg BT 156.26 188.10 Td (, excluding asset management fees, does not exceed the amount of distributions declared by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 176.10 Td (Company for record dates of that month. ) Tj ET Q q 0 0 0 rg BT 210.33 176.10 Td (The Company remains obligated to pay the ) Tj ET Q q 0 0 0 rg BT 385.01 176.10 Td (Advisor an asset management fee in any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 164.10 Td (month in which the Company’) Tj ET Q q 0 0 0 rg BT 166.66 164.10 Td (s MFFO, excluding asset management fees, for such month exceeds the amount of distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 152.10 Td (declared for the record dates of that month \(such excess amount, an “MFFO Surplus”\); however) Tj ET Q q 0 0 0 rg BT 429.21 152.10 Td (, any amount of such asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 140.10 Td (management fee in excess of the MFFO Surplus is also deferred under the ) Tj ET Q q 0 0 0 rg BT 343.54 140.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 382.71 140.10 Td (Agreement. If the MFFO Surplus for any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 128.10 Td (month exceeds the amount of the asset management fee payable for such month, any remaining MFFO Surplus will not be applied ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 116.10 Td (to pay asset management fee amounts previously deferred by the ) Tj ET Q q 0 0 0 rg BT 306.03 116.10 Td (Advisor in accordance with the ) Tj ET Q q 0 0 0 rg BT 432.93 116.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 472.10 116.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 523.47 116.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 104.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.26 104.10 Td (, the Company had deferred payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.88 104.10 Td ($8.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.77 104.10 Td ( of asset management fees for the period from ) Tj ET Q q 0 0 0 rg BT 521.53 104.10 Td (August ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 92.10 Td (2013 through December 2016, but did not record an accrual on its books as the Company believed that the chance of payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 80.10 Td (this amount to the ) Tj ET Q q 0 0 0 rg BT 118.89 80.10 Td (Advisor is remote. ) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 712.60 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 712.60 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 712.60 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 712.60 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 712.60 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 712.60 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 265.85 676.60 Td (September 30, 2017) 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 67.50 632.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.05 632.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.26 632.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.09 632.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.35 632.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.27 632.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.16 632.10 Td ( of asset management fees. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 620.10 Td (However) Tj ET Q q 0 0 0 rg BT 81.25 620.10 Td (, the Company only recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.11 620.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.00 620.10 Td ( pursuant to the limitations in the ) Tj ET Q q 0 0 0 rg BT 383.15 620.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 422.32 620.10 Td (Agreement as noted above. ) Tj ET Q q 0 0 0 rg BT 535.99 620.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 608.10 Td (Company did not accrue the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.29 608.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.18 608.10 Td ( of these asset management fees as it is not expected that any of these amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 596.10 Td (will be paid in the future. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.63 596.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.85 596.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.67 596.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.94 596.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.86 596.10 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.75 596.10 Td ( of asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 584.10 Td (management fees. However) Tj ET Q q 0 0 0 rg BT 158.44 584.10 Td (, the Company only recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.29 584.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.19 584.10 Td ( pursuant to the limitations in the ) Tj ET Q q 0 0 0 rg BT 460.34 584.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 499.51 584.10 Td (Agreement as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 572.10 Td (noted above. ) Tj ET Q q 0 0 0 rg BT 100.91 572.10 Td (The Company did not accrue the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.25 572.10 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.14 572.10 Td ( of these asset management fees as it is not expected that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 560.10 Td (any of these amounts will be paid in the future. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 542.10 Td (However) Tj ET Q q 0 0 0 rg BT 103.75 542.10 Td (, notwithstanding any of the foregoing, any and all deferred asset management fees shall be immediately due and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 530.10 Td (payable at such time as the Company’) Tj ET Q q 0 0 0 rg BT 196.63 530.10 Td (s stockholders have received, together as a collective group, aggregate distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 518.10 Td (\(including distributions that may constitute a return of capital for federal income tax purposes\) suf) Tj ET Q q 0 0 0 rg BT 437.49 518.10 Td (ficient to provide \(i\) a return of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 506.10 Td (their net invested capital, or the amount calculated by multiplying the total number of shares purchased by stockholders by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 494.10 Td (issue price, reduced by any amounts to repurchase shares pursuant to the Company’) Tj ET Q q 0 0 0 rg BT 379.63 494.10 Td (s share redemption plan, and \(ii\) an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.47 494.10 Td (8.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 494.10 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 482.10 Td (year cumulative, non-compounded return on such net invested capital \(the “Stockholders’) Tj ET Q q 0 0 0 rg BT 403.31 482.10 Td ( 8% Return”\). ) Tj ET Q q 0 0 0 rg BT 461.45 482.10 Td (The Stockholders’) Tj ET Q q 0 0 0 rg BT 534.30 482.10 Td ( 8% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 470.10 Td (Return is not based on the return provided to any individual stockholder) Tj ET Q q 0 0 0 rg BT 332.45 470.10 Td (. ) Tj ET Q q 0 0 0 rg BT 336.89 470.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 386.23 470.10 Td (, it is not necessary for each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 458.10 Td (Company’) Tj ET Q q 0 0 0 rg BT 86.67 458.10 Td (s stockholders to have received any minimum return in order for the ) Tj ET Q q 0 0 0 rg BT 361.03 458.10 Td (Advisor to receive deferred asset management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 446.10 Td (fees.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 45.00 428.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 55.37 428.10 Td (operty Management ) Tj ET Q q 0 0 0 rg BT 143.68 428.10 Td (Agr) Tj ET Q q 0 0 0 rg BT 160.16 428.10 Td (eements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 410.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 123.78 410.10 Td (, through indirect wholly owned subsidiaries \(each, a “Property Owner”\), entered into property management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 398.10 Td (agreements with LPI \(each a “Property Management ) Tj ET Q q 0 0 0 rg BT 257.42 398.10 Td (Agreement”\), pursuant to which LPI provides or provided, among other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 386.10 Td (services, general property management services, including bookkeeping and accounting services, construction management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 374.10 Td (services and budgeting and business plans for the Company’) Tj ET Q q 0 0 0 rg BT 286.62 374.10 Td (s properties, as follows: ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 343.60 254.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.50 343.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.50 343.60 140.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 343.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 343.60 120.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 315.60 254.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.50 315.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.50 315.60 140.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 315.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 315.60 120.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 287.60 254.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.50 287.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.50 287.60 140.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 287.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 287.60 120.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 259.60 254.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.50 259.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.50 259.60 140.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 259.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 259.60 120.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 231.60 254.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.50 231.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.50 231.60 140.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 231.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 231.60 120.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 203.60 254.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.50 203.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.50 203.60 140.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 203.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 203.60 120.00 -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 45.5 343.6 m 299.5 343.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303.5 343.6 m 443.5 343.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 343.6 m 567.5 343.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303.5 343.6 m 443.5 343.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 48.00 347.83 Td (Property Name) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.90 347.83 Td (Effective Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.75 347.83 Td (Management Fee Percentage) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 333.85 Td (W) Tj ET Q q 0 0 0 rg BT 54.91 333.85 Td (atertower ) Tj ET Q q 0 0 0 rg BT 86.67 333.85 Td (Apartments ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 126.00 337.48 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.75 333.85 Td (04/07/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.65 333.85 Td (2.75%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 319.85 Td (Crystal Park at Waterford) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.75 319.85 Td (04/14/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.65 319.85 Td (3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 305.85 Td (The Residence at Waterstone) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.75 305.85 Td (04/28/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.65 305.85 Td (3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 291.85 Td (Lofts at the Highlands) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.75 291.85 Td (05/05/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.65 291.85 Td (3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 277.85 Td (Legacy at Martin’s Point) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.75 277.85 Td (05/12/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.65 277.85 Td (3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 263.85 Td (Poplar Creek) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.75 263.85 Td (05/14/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.65 263.85 Td (3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 249.85 Td (W) Tj ET Q q 0 0 0 rg BT 54.91 249.85 Td (esley ) Tj ET Q q 0 0 0 rg BT 73.20 249.85 Td (V) Tj ET Q q 0 0 0 rg BT 78.50 249.85 Td (illage ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 98.27 253.48 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.75 249.85 Td (05/19/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.65 249.85 Td (3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 235.85 Td (Legacy Grand at Concord) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.75 235.85 Td (05/21/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.65 235.85 Td (3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 221.85 Td (Millennium ) Tj ET Q q 0 0 0 rg BT 87.34 221.85 Td (Apartment Homes ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 148.21 225.48 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.75 221.85 Td (05/27/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.65 221.85 Td (3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 207.85 Td (Legacy Crescent Park ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 120.19 211.48 Td (\(3\) \(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.75 207.85 Td (05/29/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.65 207.85 Td (3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 193.85 Td (Legacy at Valley Ranch) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.75 193.85 Td (06/09/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.65 193.85 Td (3.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 178.10 Td (____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 45.00 169.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.06 165.50 Td ( On September 12, 2017, the Company sold ) Tj ET Q q 0 0 0 rg BT 193.13 165.50 Td (W) Tj ET Q q 0 0 0 rg BT 200.04 165.50 Td (atertower ) Tj ET Q q 0 0 0 rg BT 231.80 165.50 Td (Apartments. ) Tj ET Q q 0 0 0 rg BT 274.98 165.50 Td (The Property Management ) Tj ET Q q 0 0 0 rg BT 362.29 165.50 Td (Agreement for ) Tj ET Q q 0 0 0 rg BT 411.01 165.50 Td (W) Tj ET Q q 0 0 0 rg BT 417.92 165.50 Td (atertower ) Tj ET Q q 0 0 0 rg BT 449.68 165.50 Td (Apartments was terminated ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 45.00 155.90 Td (ef) Tj ET Q q 0 0 0 rg BT 51.07 155.90 Td (fective as of September 12, 2017. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 45.00 146.92 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.06 143.30 Td ( On March 9, 2017, the Company sold ) Tj ET Q q 0 0 0 rg BT 175.79 143.30 Td (W) Tj ET Q q 0 0 0 rg BT 182.70 143.30 Td (esley ) Tj ET Q q 0 0 0 rg BT 201.00 143.30 Td (V) Tj ET Q q 0 0 0 rg BT 206.29 143.30 Td (illage. ) Tj ET Q q 0 0 0 rg BT 229.92 143.30 Td (The Property Management ) Tj ET Q q 0 0 0 rg BT 317.23 143.30 Td (Agreement for ) Tj ET Q q 0 0 0 rg BT 365.95 143.30 Td (W) Tj ET Q q 0 0 0 rg BT 372.86 143.30 Td (esley ) Tj ET Q q 0 0 0 rg BT 391.15 143.30 Td (V) Tj ET Q q 0 0 0 rg BT 396.45 143.30 Td (illage was terminated ef) Tj ET Q q 0 0 0 rg BT 472.94 143.30 Td (fective as of March 9, 2017. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 45.00 134.33 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.06 130.70 Td ( Under the Property Management ) Tj ET Q q 0 0 0 rg BT 159.70 130.70 Td (Agreement, the Property Owner pays or paid LPI the Management Fee Percentage in an amount equal to the greater of \(a\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.45 130.70 Td (3%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 563.11 130.70 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 45.00 121.10 Td (of the Gross Monthly Collections \(as defined in the Property Management ) Tj ET Q q 0 0 0 rg BT 284.29 121.10 Td (Agreement\) or \(b\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 344.48 121.10 Td ($4,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.48 121.10 Td ( per month.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 45.00 112.13 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.06 108.50 Td ( On September 29, 2017, the Company sold Legacy Crescent Park. ) Tj ET Q q 0 0 0 rg BT 269.32 108.50 Td (The Property Management ) Tj ET Q q 0 0 0 rg BT 356.63 108.50 Td (Agreement for Legacy Crescent Park was terminated ef) Tj ET Q q 0 0 0 rg BT 534.40 108.50 Td (fective as ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 45.00 98.90 Td (of September 29, 2017. ) Tj ET Q 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 712.60 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 712.60 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 712.60 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 712.60 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 712.60 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 712.60 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 265.85 676.60 Td (September 30, 2017) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 632.10 Td (Under the Property Management ) Tj ET Q q 0 0 0 rg BT 200.80 632.10 Td (Agreements for the Company’) Tj ET Q q 0 0 0 rg BT 322.15 632.10 Td (s remaining properties, each Property Owner pays or paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 620.10 Td (LPI: \(i\) a monthly fee based on a percentage \(as described in the table above, the “Management Fee Percentage”\) of the Gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 608.10 Td (Monthly Collections \(as defined in each Property Management ) Tj ET Q q 0 0 0 rg BT 298.83 608.10 Td (Agreement\), \(ii\) a construction supervision fee equal to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 596.10 Td (percentage of construction costs to the extent overseen by LPI and as further detailed in each Property Management ) Tj ET Q q 0 0 0 rg BT 509.84 596.10 Td (Agreement, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 584.10 Td (\(iii\) a leasing commission at a rate to be agreed upon between the Property Owner and LPI for executed retail leases that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 572.10 Td (procured or obtained by LPI, \(iv\) certain reimbursements if included in an approved capital budget and \(v\) certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 560.10 Td (reimbursements if included in the approved operating budget, including the reimbursement of the salaries and benefits for on-site ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 548.10 Td (personnel. Unless otherwise provided for in an approved operating budget, LPI is responsible for all expenses that it incurs in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 536.10 Td (rendering services pursuant to each Property Management ) Tj ET Q q 0 0 0 rg BT 279.64 536.10 Td (Agreement. Each Property Management ) Tj ET Q q 0 0 0 rg BT 445.14 536.10 Td (Agreement had an initial term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 524.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.83 524.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.27 524.10 Td ( year and each has continued on a month-to-month basis pursuant to its terms. Either party may terminate a Property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 512.10 Td (Management ) Tj ET Q q 0 0 0 rg BT 99.15 512.10 Td (Agreement provided it gives ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.79 512.10 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.79 512.10 Td ( days’) Tj ET Q q 0 0 0 rg BT 249.20 512.10 Td ( prior written notice of its desire to terminate such agreement. ) Tj ET Q q 0 0 0 rg BT 500.88 512.10 Td (The Property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 500.10 Td (Owner may also terminate the Property Management ) Tj ET Q q 0 0 0 rg BT 259.10 500.10 Td (Agreement with cause immediately upon notice to LPI and the expiration of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 488.10 Td (any applicable cure period. LPI may terminate each Property Management ) Tj ET Q q 0 0 0 rg BT 347.66 488.10 Td (Agreement at any time without cause upon prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 476.10 Td (written notice to the Property Owner which, depending upon the terms of the particular Property Management ) Tj ET Q q 0 0 0 rg BT 487.38 476.10 Td (Agreement, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 464.10 Td (requires either ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.97 464.10 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.97 464.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.97 464.10 Td (60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.97 464.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.30 464.10 Td (90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.30 464.10 Td ( days prior written notice. LPI may terminate the Property Management ) Tj ET Q q 0 0 0 rg BT 444.61 464.10 Td (Agreement for cause if a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 452.10 Td (Property Owner commits any material default under the Property Management ) Tj ET Q q 0 0 0 rg BT 362.13 452.10 Td (Agreement and the default continues for a period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 440.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.83 440.10 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.83 440.10 Td ( days after notice from LPI to a Property Owner for a default or) Tj ET Q q 0 0 0 rg BT 319.51 440.10 Td (, in the case of Lofts at the Highlands, Legacy Grand at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 428.10 Td (Concord, and Millennium ) Tj ET Q q 0 0 0 rg BT 150.55 428.10 Td (Apartment Homes, if a monetary default continues for a period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.02 428.10 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.02 428.10 Td ( days after notice of such monetary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 416.10 Td (default.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (7. ) Tj ET Q q 0 0 0 rg BT 72.00 392.10 Td (COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 153.95 392.10 Td (AND CONTINGENCIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (Economic Dependency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 356.10 Td (The Company is dependent on the ) Tj ET Q q 0 0 0 rg BT 210.86 356.10 Td (Advisor and the Sub-Advisor for certain services that are essential to the Company) Tj ET Q q 0 0 0 rg BT 541.79 356.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (including the management of the daily operations of the Company’) Tj ET Q q 0 0 0 rg BT 317.49 344.10 Td (s investment portfolio; the disposition of investments; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (other general and administrative responsibilities. ) Tj ET Q q 0 0 0 rg BT 248.99 332.10 Td (The Company is also dependent on LPI to provide the property management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (services under the Property Management ) Tj ET Q q 0 0 0 rg BT 215.28 320.10 Td (Agreements. In the event that these companies are unable to provide any of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (respective services, the Company will be required to obtain such services from other sources. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (Envir) Tj ET Q q 0 0 0 rg BT 73.77 290.10 Td (onmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 272.10 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 49.50 260.10 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 49.50 248.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 248.10 Td (fect on its financial condition or results of operations. However) Tj ET Q q 0 0 0 rg BT 312.45 248.10 Td (, changes in applicable environmental laws and regulations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (the uses and conditions of properties in the vicinity of the Company’) Tj ET Q q 0 0 0 rg BT 323.62 236.10 Td (s property) Tj ET Q q 0 0 0 rg BT 363.24 236.10 Td (, the activities of its tenants and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (environmental conditions of which the Company is unaware with respect to the property could result in future environmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (liabilities. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (Legal Matters) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 176.10 Td (From time to time, the Company may become 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 49.50 164.10 Td (Management is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.13 152.10 Td (fect on the Company’) Tj ET Q q 0 0 0 rg BT 176.49 152.10 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 49.50 140.10 Td (contingency and possible range of loss. ) Tj ET Q q 0 0 0 rg BT 211.14 140.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 261.04 140.10 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 49.50 128.10 Td (proceedings in which the potential loss is deemed to be remote. ) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.30 712.60 Td (KBS LEGACY) Tj ET Q q 0 0 0 rg BT 252.22 712.60 Td ( P) Tj ET Q q 0 0 0 rg BT 260.09 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 274.18 712.60 Td (TNERS ) Tj ET Q q 0 0 0 rg BT 309.47 712.60 Td (AP) Tj ET Q q 0 0 0 rg BT 322.06 712.60 Td (AR) Tj ET Q q 0 0 0 rg BT 336.15 712.60 Td (TMENT) Tj ET Q q 0 0 0 rg BT 372.64 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 398.85 712.60 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 265.85 676.60 Td (September 30, 2017) 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 72.00 632.25 Td (SUBSEQUENT) Tj ET Q q 0 0 0 rg BT 139.07 632.25 Td ( EVENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 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 49.50 596.25 Td (Distributions Paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 578.25 Td (On October 2, 2017, the Company paid distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.58 578.25 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.48 578.25 Td (, which related to distributions declared for September ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (2017 in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.32 566.25 Td ($0.04460959) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.82 566.25 Td ( per share of common stock to stockholders of record as of the close of business on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (September 20, 2017. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (Dispositions Subsequent to September) Tj ET Q q 0 0 0 rg BT 212.40 536.25 Td ( 30, 2017) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (Disposition of Legacy Grand at Concord) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 503.25 Td (On February 18, 2014, the Company) Tj ET Q q 0 0 0 rg BT 218.27 503.25 Td (, through an indirect wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 401.76 503.25 Td (, purchased a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.74 503.25 Td (240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.74 503.25 Td (-unit apartment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (complex \(“Legacy Grand at Concord”\) on approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.80 491.25 Td (18.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.30 491.25 Td ( acres of land located in Concord, North Carolina. On October ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (30, 2017, the Company completed the sale of Legacy Grand at Concord to an unaf) Tj ET Q q 0 0 0 rg BT 379.22 479.25 Td (filiated buyer for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.47 479.25 Td ($32.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.36 479.25 Td (, net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (closing costs and fees. In connection with the disposition of Legacy Grand at Concord, the Company repaid the entire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.49 467.25 Td ($22.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 455.25 Td ( principal balance and all other sums due under the mortgage loan secured by Legacy Grand at Concord, including a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.25 Td (prepayment fee of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.74 443.25 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.63 443.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 425.25 Td (Disposition of Millennium ) Tj ET Q q 0 0 0 rg BT 160.54 425.25 Td (Apartment Homes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 410.25 Td (On June 7, 2013, the Company) Tj ET Q q 0 0 0 rg BT 195.51 410.25 Td (, through an indirect wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 378.99 410.25 Td (, purchased a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.97 410.25 Td (305) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.97 410.25 Td (-unit apartment complex ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (\(“Millennium ) Tj ET Q q 0 0 0 rg BT 106.44 398.25 Td (Apartment Homes”\) on approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.06 398.25 Td (32.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.56 398.25 Td ( acres of land located in Greenville, South Carolina. On October 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (2017, the Company completed the sale of Millennium ) Tj ET Q q 0 0 0 rg BT 267.52 386.25 Td (Apartment Homes to an unaf) Tj ET Q q 0 0 0 rg BT 383.42 386.25 Td (filiated buyer for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.67 386.25 Td ($35.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.56 386.25 Td (, net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (closing costs and fees. In connection with the disposition of Millennium ) Tj ET Q q 0 0 0 rg BT 342.52 374.25 Td (Apartment Homes, the Company repaid the entire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td ($19.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 362.25 Td ( principal balance and all other sums due under the mortgage loan secured by Millennium ) Tj ET Q q 0 0 0 rg BT 464.12 362.25 Td (Apartment Homes, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.25 Td (including a prepayment fee of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.95 350.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.84 350.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (Disposition of Legacy at Martin’) Tj ET Q q 0 0 0 rg BT 183.20 332.25 Td (s Point) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 317.25 Td (On May 31, 2012, the Company) Tj ET Q q 0 0 0 rg BT 200.51 317.25 Td (, through an indirect wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 383.99 317.25 Td (, purchased a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.97 317.25 Td (256) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.97 317.25 Td (-unit apartment complex ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.25 Td (\(“Legacy at Martin’) Tj ET Q q 0 0 0 rg BT 128.90 305.25 Td (s Point”\) on approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.44 305.25 Td (13.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.94 305.25 Td ( acres of land located in the Chicago suburb of Lombard, Illinois. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.25 Td (October 31, 2017, the Company completed the sale of Legacy at Martin’) Tj ET Q q 0 0 0 rg BT 339.69 293.25 Td (s Point to an unaf) Tj ET Q q 0 0 0 rg BT 409.50 293.25 Td (filiated buyer for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.75 293.25 Td ($37.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.65 293.25 Td (, net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.25 Td (closing costs and fees. In connection with the disposition of Legacy at Martin’) Tj ET Q q 0 0 0 rg BT 364.98 281.25 Td (s Point, the Company repaid the entire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.06 281.25 Td ($21.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 269.25 Td ( principal balance and all other sums due under the mortgage loan secured by Legacy at Martin’) Tj ET Q q 0 0 0 rg BT 461.58 269.25 Td (s Point, including a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.25 Td (prepayment fee of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.74 257.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.63 257.25 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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 90.50 730.60 Td (Management’) Tj ET Q q 0 0 0 rg BT 149.56 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 221.54 730.60 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 (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 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 Legacy Partners ) Tj ET Q q 0 0 0 rg BT 138.09 692.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 204.83 692.10 Td (, Inc. and the notes thereto. ) Tj ET Q q 0 0 0 rg BT 317.58 692.10 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 Legacy Partners ) Tj ET Q q 0 0 0 rg BT 138.09 680.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 204.83 680.10 Td (, Inc., a Maryland corporation, and, as required by context, KBS Legacy Partners ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (Limited Partnership, a 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 72.00 632.10 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 475.33 632.10 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 Legacy Partners ) Tj ET Q q 0 0 0 rg BT 428.26 620.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 495.00 620.10 Td (, Inc. and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (members of our management team, as well as the assumptions on which such statements are based, and generally are identified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (by the use of words such as “may) Tj ET Q q 0 0 0 rg BT 182.99 596.10 Td (,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (“should” or similar expressions. ) Tj ET Q q 0 0 0 rg BT 182.26 584.10 Td (Actual results may dif) Tj ET Q q 0 0 0 rg BT 270.67 584.10 Td (fer materially from those contemplated by such forward-looking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (statements. Further) Tj ET Q q 0 0 0 rg BT 128.25 572.10 Td (, forward-looking statements speak only as of the date they are made, and we undertake no obligation to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (to future operating results over time, unless required by law) Tj ET Q q 0 0 0 rg BT 287.67 548.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 530.10 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 dependent on KBS Capital ) Tj ET Q q 0 0 0 rg BT 229.16 500.10 Td (Advisors LLC \(“KBS Capital ) Tj ET Q q 0 0 0 rg BT 349.71 500.10 Td (Advisors”\), our advisor) Tj ET Q q 0 0 0 rg BT 443.46 500.10 Td (, and our sub-advisor to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 488.10 Td (manage our investments and to provide certain other services. ) Tj ET Q q 0 0 0 rg BT 342.24 488.10 Td (W) Tj ET Q q 0 0 0 rg BT 350.87 488.10 Td (e are dependent on Legacy Partners, Inc., formerly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 476.10 Td (known as Legacy Partners Residential, Inc. \(“LPI”\), an af) Tj ET Q q 0 0 0 rg BT 320.57 476.10 Td (filiate of our sub-advisor) Tj ET Q q 0 0 0 rg BT 419.31 476.10 Td (, to provide property management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 464.10 Td (services for our remaining real estate properties.) 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, some of our directors and other key real estate professionals are also of) Tj ET Q q 0 0 0 rg BT 492.27 449.10 Td (ficers, managers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 437.10 Td (directors, key professionals and/or holders of a controlling interest in our advisor) Tj ET Q q 0 0 0 rg BT 413.41 437.10 Td (, the sub-advisor) Tj ET Q q 0 0 0 rg BT 479.38 437.10 Td (, our dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 425.10 Td (manager) Tj ET Q q 0 0 0 rg BT 124.02 425.10 Td (, our property manager and other sponsor) Tj ET Q q 0 0 0 rg BT 289.05 425.10 Td (-af) Tj ET Q q 0 0 0 rg BT 299.97 425.10 Td (filiated entities. ) Tj ET Q q 0 0 0 rg BT 366.62 425.10 Td (As a result, they face conflicts of interest, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 413.10 Td (including significant conflicts created by our advisor) Tj ET Q q 0 0 0 rg BT 301.42 413.10 Td (’) Tj ET Q q 0 0 0 rg BT 304.20 413.10 Td (s compensation arrangements with us and other programs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 401.10 Td (investors advised by our sponsors. Fees paid to our advisor in connection with the management of our properties are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 389.10 Td (based on the cost of the property) Tj ET Q q 0 0 0 rg BT 219.87 389.10 Td (, not on the quality of the services rendered to us. ) Tj ET Q q 0 0 0 rg BT 421.86 389.10 Td (This arrangement could result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 377.10 Td (unanticipated actions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 362.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 362.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 362.10 Td (e pay substantial fees to and expenses of our advisor and its af) Tj ET Q q 0 0 0 rg BT 347.28 362.10 Td (filiates and our property manager and, in connection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 350.10 Td (with our public of) Tj ET Q q 0 0 0 rg BT 161.75 350.10 Td (ferings, we paid substantial fees to participating broker) Tj ET Q q 0 0 0 rg BT 381.48 350.10 Td (-dealers. ) Tj ET Q q 0 0 0 rg BT 417.95 350.10 Td (These payments increase the risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 338.10 Td (that our 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 72.00 323.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 323.10 Td (Disruptions in the financial markets and uncertain economic conditions could adversely af) Tj ET Q q 0 0 0 rg BT 451.10 323.10 Td (fect our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 311.10 Td (implement our business strategy and generate returns to stockholders. ) 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 (W) Tj ET Q q 0 0 0 rg BT 98.64 296.10 Td (e depend on tenants for our revenue. Revenues from our real property investments could decrease due to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 284.10 Td (reduction in tenants \(caused by factors including, but not limited to, tenant defaults or early termination or non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 272.10 Td (renewal of existing tenant leases\) and/or lower rental rates, limiting our ability to pay distributions to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 260.10 Td (stockholders. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 245.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 245.10 Td (Although our board of directors has approved the sale of all of our assets and our dissolution pursuant to the terms of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 233.10 Td (a plan of complete liquidation and dissolution \(the “Plan of Liquidation”\), we can give no assurance whether we will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 221.10 Td (be able to obtain the stockholder approvals required to consummate the Plan of Liquidation or) Tj ET Q q 0 0 0 rg BT 466.17 221.10 Td (, if we do receive such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 209.10 Td (approval, whether we will be able to successfully implement the Plan of Liquidation and sell our assets, pay our debts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 197.10 Td (and distribute the net proceeds from liquidation to our stockholders as we expect.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 182.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 182.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 182.10 Td (e can give no assurance regarding the timing of asset dispositions and the sale prices we will receive for assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 170.10 Td (the amount and timing of liquidating distributions to be received by our stockholders.) 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 (W) Tj ET Q q 0 0 0 rg BT 98.64 155.10 Td (e may face unanticipated dif) Tj ET Q q 0 0 0 rg BT 211.73 155.10 Td (ficulties, delays or expenditures relating to our implementation of the Plan of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 143.10 Td (Liquidation, which may reduce or delay our payment liquidating distributions.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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 90.50 730.60 Td (Management’) Tj ET Q q 0 0 0 rg BT 149.56 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 221.54 730.60 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 (21) 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 (W) Tj ET Q q 0 0 0 rg BT 98.64 704.10 Td (e may face risks associated with legal proceedings, including stockholder litigation, that may be instituted against ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 692.10 Td (us related to the Plan of Liquidation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 677.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 677.10 Td (If our stockholders do not approve the Plan of Liquidation, we may sell the rest of our properties, other than the Core-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 665.10 Td (Portfolio Properties \(defined below\), which would cause our general and administrative expenses to increase relative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 653.10 Td (to our revenue, result in lower distributions to our stockholders if we begin paying regular monthly distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 641.10 Td (again and could adversely af) Tj ET Q q 0 0 0 rg BT 204.21 641.10 Td (fect stockholder returns.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 626.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 626.10 Td (During any calendar year) Tj ET Q q 0 0 0 rg BT 190.94 626.10 Td (, once we have redeemed $1.5 million of shares under our share redemption program, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 614.10 Td (including shares redeemed in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 330.02 614.10 Td (’) Tj ET Q q 0 0 0 rg BT 332.80 614.10 Td (s death, “qualifying disability) Tj ET Q q 0 0 0 rg BT 450.46 614.10 Td (,” or “determination of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 602.10 Td (incompetence” \(both as defined in the share redemption program and together with redemptions in connection with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 590.10 Td (stockholder) Tj ET Q q 0 0 0 rg BT 137.03 590.10 Td (’) Tj ET Q q 0 0 0 rg BT 139.80 590.10 Td (s death, “Special Redemptions”\), the remaining $0.5 million of the $2.0 million annual redemption limit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 578.10 Td (shall be reserved exclusively for Special Redemptions. In January 2017, we exhausted the $1.5 million of funds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 566.10 Td (available for redemptions for 2017 and in ) Tj ET Q q 0 0 0 rg BT 258.01 566.10 Td (August 2017, we exhausted $0.5 million of funds available for Special ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 554.10 Td (Redemptions for 2017. ) Tj ET Q q 0 0 0 rg BT 186.75 554.10 Td (Therefore, we have no funds available for redemptions for the remainder of 2017. ) Tj ET Q q 0 0 0 rg BT 518.30 554.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 542.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.26 542.10 Td (, we had a total of $3.6 million of outstanding and unfulfilled ordinary redemption and Special ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 530.10 Td (Redemptions requests. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 506.10 Td (All forward-looking statements should be read in light of the risks identified herein, in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 479.41 506.10 Td ( of our ) Tj ET Q q 0 0 0 rg BT 508.02 506.10 Td (Annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (Report on Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.90 494.10 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.48 494.10 Td (, filed with the Securities and Exchange Commission \(the “SEC”\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (on March 10, 2017 and in our Definitive Proxy Statement, as filed with the SEC on September 22, 2017 \(the “Proxy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (Statement”\). ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 434.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 434.10 Td (e were formed on July 31, 2009 as a Maryland corporation that elected to be taxed as a real estate investment trust ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (\(“REIT”\) beginning with the taxable year ended December 31, 2010 and intend to continue to operate in such a manner) Tj ET Q q 0 0 0 rg BT 527.11 422.10 Td (. ) Tj ET Q q 0 0 0 rg BT 534.43 422.10 Td (W) Tj ET Q q 0 0 0 rg BT 543.07 422.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (conduct our business primarily through our Operating Partnership, of which we are the sole general partner) Tj ET Q q 0 0 0 rg BT 477.71 410.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 392.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 392.10 Td (e invested in and manage a portfolio of high quality apartment complexes located throughout the United States. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (portfolio consists of “core” apartment complexes that were already well-positioned and producing rental income at acquisition. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.94 368.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.21 368.10 Td (, we owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.53 368.10 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.52 368.10 Td ( apartment complexes, all of which were under contract to sell. ) Tj ET Q q 0 0 0 rg BT 478.91 368.10 Td (The sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.84 368.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.50 368.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (such properties \(the “Core-Portfolio Properties”\) is subject to stockholder approval of the Plan of Liquidation and as such, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (Core-Portfolio Properties are held for investment. ) Tj ET Q q 0 0 0 rg BT 252.79 344.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.23 344.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.49 344.10 Td (, our remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.37 344.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.03 344.10 Td ( properties were held for sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (and subsequent to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.66 332.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.92 332.10 Td (, we completed the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.82 332.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.81 332.10 Td ( of these properties. See “—Subsequent Events — ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (Dispositions Subsequent to September 30, 2017.”) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 302.10 Td (As our advisor) Tj ET Q q 0 0 0 rg BT 130.48 302.10 Td (, KBS Capital ) Tj ET Q q 0 0 0 rg BT 188.26 302.10 Td (Advisors is responsible for managing our day-to-day operations and our portfolio of real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (estate assets. Subject to the terms of the advisory agreement between KBS Capital ) Tj ET Q q 0 0 0 rg BT 383.03 290.10 Td (Advisors and us, KBS Capital ) Tj ET Q q 0 0 0 rg BT 505.25 290.10 Td (Advisors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (delegates certain advisory duties to a sub-advisor) Tj ET Q q 0 0 0 rg BT 245.71 278.10 Td (, KBS-Legacy ) Tj ET Q q 0 0 0 rg BT 304.86 278.10 Td (Apartment Community REIT) Tj ET Q q 0 0 0 rg BT 422.44 278.10 Td ( ) Tj ET Q q 0 0 0 rg BT 424.76 278.10 Td (V) Tj ET Q q 0 0 0 rg BT 430.88 278.10 Td (enture, LLC \(the “Sub-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (Advisor”\), which is a joint venture between KBS Capital ) Tj ET Q q 0 0 0 rg BT 279.46 266.10 Td (Advisors and Legacy Partners Residential Realty LLC \(“LPRR ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (LLC”\). Notwithstanding such delegation to the Sub-Advisor) Tj ET Q q 0 0 0 rg BT 291.01 254.10 Td (, KBS Capital ) Tj ET Q q 0 0 0 rg BT 348.79 254.10 Td (Advisors retains ultimate responsibility for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (performance of all the matters entrusted to it under the advisory agreement. KBS Capital ) Tj ET Q q 0 0 0 rg BT 408.84 242.10 Td (Advisors made recommendations on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (all investments to our board of directors. ) Tj ET Q q 0 0 0 rg BT 216.41 230.10 Td (A) Tj ET Q q 0 0 0 rg BT 223.08 230.10 Td ( majority of our board of directors, including a majority of our independent directors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (acting through the conflicts committee, approved our investments. KBS Capital ) Tj ET Q q 0 0 0 rg BT 372.49 218.10 Td (Advisors, either directly or through the Sub-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 81.32 206.10 Td (, also provides asset-management, marketing, investor) Tj ET Q q 0 0 0 rg BT 298.28 206.10 Td (-relations and other administrative services on our behalf. LPI is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (the property manager for our real estate property investments. Our Sub-Advisor owns 20,000 shares of our common stock. ) Tj ET Q q 0 0 0 rg BT 547.26 194.10 Td (W) Tj ET Q q 0 0 0 rg BT 555.90 194.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (have no paid employees. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 164.10 Td (On March 12, 2010, we commenced our initial public of) Tj ET Q q 0 0 0 rg BT 298.10 164.10 Td (fering of 280,000,000 shares of common stock for sale to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (public, of which 80,000,000 shares were of) Tj ET Q q 0 0 0 rg BT 222.33 152.10 Td (fered pursuant to our dividend reinvestment plan \(the “Initial Of) Tj ET Q q 0 0 0 rg BT 479.02 152.10 Td (fering”\). ) Tj ET Q q 0 0 0 rg BT 517.98 152.10 Td (W) Tj ET Q q 0 0 0 rg BT 526.62 152.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (retained KBS Capital Markets Group LLC \(“KBS Capital Markets Group”\), an af) Tj ET Q q 0 0 0 rg BT 376.46 140.10 Td (filiate of our advisor) Tj ET Q q 0 0 0 rg BT 457.98 140.10 Td (, to serve as the dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (manager for the Initial Of) Tj ET Q q 0 0 0 rg BT 152.05 128.10 Td (fering pursuant to a dealer manager agreement dated March 12, 2010 \(the “Initial Dealer Manager ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (Agreement”\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 98.10 Td (On May 31, 2012, we filed a registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 329.03 98.10 Td (1 with the SEC to register a follow-on public of) Tj ET Q q 0 0 0 rg BT 519.65 98.10 Td (fering \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (“Follow-on Of) Tj ET Q q 0 0 0 rg BT 108.48 86.10 Td (fering” and together with the Initial Of) Tj ET Q q 0 0 0 rg BT 263.25 86.10 Td (fering, the “Of) Tj ET Q q 0 0 0 rg BT 321.65 86.10 Td (ferings”\). Pursuant to the Follow-on Of) Tj ET Q q 0 0 0 rg BT 481.72 86.10 Td (fering registration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (statement, as amended, we registered up to an additional $2,000,000,000 of shares of common stock for sale to the public and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (up to an additional $760,000,000 of shares pursuant to our dividend reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 401.76 62.10 Td (The SEC declared our registration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 50.10 Td (statement for the Follow-on Of) Tj ET Q q 0 0 0 rg BT 173.74 50.10 Td (fering ef) Tj ET Q q 0 0 0 rg BT 207.70 50.10 Td (fective on March 8, 2013.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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 90.50 730.60 Td (Management’) Tj ET Q q 0 0 0 rg BT 149.56 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 221.54 730.60 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 (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 704.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 704.10 Td (e retained KBS Capital Markets Group to serve as the dealer manager for the Follow-on Of) Tj ET Q q 0 0 0 rg BT 446.12 704.10 Td (fering pursuant to a dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (manager agreement dated March 8, 2013 \(the “Follow-on Dealer Manager ) Tj ET Q q 0 0 0 rg BT 349.10 692.10 Td (Agreement” and together with the Initial Dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (Manager ) Tj ET Q q 0 0 0 rg BT 86.99 680.10 Td (Agreement, the “Dealer Manager ) Tj ET Q q 0 0 0 rg BT 222.20 680.10 Td (Agreements”\). On March 12, 2013, we ceased of) Tj ET Q q 0 0 0 rg BT 420.55 680.10 Td (fering shares pursuant to the Initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 668.10 Td (fering and on March 13, 2013, we commenced of) Tj ET Q q 0 0 0 rg BT 257.41 668.10 Td (fering shares to the public pursuant to the Follow-on Of) Tj ET Q q 0 0 0 rg BT 480.24 668.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 508.93 668.10 Td (W) Tj ET Q q 0 0 0 rg BT 517.57 668.10 Td (e ceased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 656.10 Td (fering shares of common stock in the primary Follow-on Of) Tj ET Q q 0 0 0 rg BT 297.14 656.10 Td (fering on March 31, 2014 and completed subscription processing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (procedures on ) Tj ET Q q 0 0 0 rg BT 107.82 644.10 Td (April 30, 2014. ) Tj ET Q q 0 0 0 rg BT 173.74 644.10 Td (W) Tj ET Q q 0 0 0 rg BT 182.38 644.10 Td (e terminated our dividend reinvestment plan ef) Tj ET Q q 0 0 0 rg BT 369.36 644.10 Td (fective as of ) Tj ET Q q 0 0 0 rg BT 420.17 644.10 Td (August 20, 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 626.10 Td (Through its completion on March 12, 2013, we sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.31 626.10 Td (18,088,084) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.31 626.10 Td ( shares of common stock in the Initial Of) Tj ET Q q 0 0 0 rg BT 491.98 626.10 Td (fering for gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 614.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.89 614.10 Td ($179.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.79 614.10 Td (, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.06 614.10 Td (368,872) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.56 614.10 Td ( shares of common stock under our dividend reinvestment plan for gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 602.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.89 602.10 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.79 602.10 Td (. In our primary Follow-on Of) Tj ET Q q 0 0 0 rg BT 304.64 602.10 Td (fering, we sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.85 602.10 Td (3,943,266) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.85 602.10 Td ( shares of common stock for gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 590.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.89 590.10 Td ($39.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.79 590.10 Td (, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.06 590.10 Td (2,447,068) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.06 590.10 Td ( shares of common stock under the dividend reinvestment plan for gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 578.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.89 578.10 Td ($23.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.79 578.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 560.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 560.10 Td (e sold an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.88 560.10 Td (22,031,350) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.88 560.10 Td ( shares of common stock in the Of) Tj ET Q q 0 0 0 rg BT 353.17 560.10 Td (ferings for gross of) Tj ET Q q 0 0 0 rg BT 429.36 560.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.60 560.10 Td ($218.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 548.10 Td (, including an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.80 548.10 Td (2,815,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.80 548.10 Td ( shares of common stock under our dividend reinvestment plan for gross of) Tj ET Q q 0 0 0 rg BT 528.10 548.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.37 536.10 Td ($27.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.26 536.10 Td (. ) Tj ET Q q 0 0 0 rg BT 159.21 536.10 Td (Also, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.76 536.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.02 536.10 Td (, we had redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.48 536.10 Td (1,024,594) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.48 536.10 Td ( shares sold in the Of) Tj ET Q q 0 0 0 rg BT 487.01 536.10 Td (ferings for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.44 536.10 Td ($9.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 524.10 Td (. ) Tj ET Q q 0 0 0 rg BT 85.71 524.10 Td (W) Tj ET Q q 0 0 0 rg BT 94.35 524.10 Td (e have used substantially all of the net proceeds from the primary Of) Tj ET Q q 0 0 0 rg BT 368.52 524.10 Td (ferings to invest in and manage a portfolio of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (high quality apartment communities located throughout the United States as described above. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (Plan of Liquidation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 479.10 Td (On ) Tj ET Q q 0 0 0 rg BT 86.67 479.10 Td (August 14, 2017, in connection with a review of potential strategic alternatives available to us, our board of directors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (unanimously approved the sale of all of our properties and our dissolution pursuant to the terms of the Plan of Liquidation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (pending stockholder approval. ) Tj ET Q q 0 0 0 rg BT 173.18 455.10 Td (The principal purpose of the Plan of Liquidation is to maximize stockholder value by selling our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (properties, paying our debts and distributing the net proceeds from liquidation to our stockholders. Pursuant to our charter) Tj ET Q q 0 0 0 rg BT 537.05 443.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 431.10 Td (firmative vote of a majority of all of the shares of common stock entitled to vote on the Plan of Liquidation is required for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (approval of the Plan of Liquidation. ) Tj ET Q q 0 0 0 rg BT 195.12 419.10 Td (W) Tj ET Q q 0 0 0 rg BT 203.76 419.10 Td (e can provide no assurance that the Plan of Liquidation will be approved by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 389.10 Td (If the Plan of Liquidation is approved by our stockholders, we expect to pay liquidating distributions to our stockholders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.10 Td (during the liquidation process and to pay the final liquidating distribution after we sell all of our remaining properties, pay all of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td (our known liabilities and provide for unknown liabilities. ) Tj ET Q q 0 0 0 rg BT 280.67 365.10 Td (W) Tj ET Q q 0 0 0 rg BT 289.31 365.10 Td (e expect to complete these activities within 12 months after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (stockholder approval of the Plan of Liquidation. However) Tj ET Q q 0 0 0 rg BT 280.71 353.10 Td (, there can be no assurances regarding the amounts of any liquidating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (distributions or the timing thereof.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (Market Outlook - Multifamily Real Estate and Finance Markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 305.10 Td (Strong demand and trailing supply have been dominant themes for professionally managed, multifamily rental real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (\(“Multifamily”\) in the United States since the recession of 2008-2009. ) Tj ET Q q 0 0 0 rg BT 338.04 293.10 Td (Although the U.S. Multifamily outlook remains ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (positive, supply and af) Tj ET Q q 0 0 0 rg BT 139.86 281.10 Td (fordability are becoming concerns in a growing number of urban core markets, most notably) Tj ET Q q 0 0 0 rg BT 509.10 281.10 Td (, New ) Tj ET Q q 0 0 0 rg BT 535.11 281.10 Td (Y) Tj ET Q q 0 0 0 rg BT 541.33 281.10 Td (ork ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (City) Tj ET Q q 0 0 0 rg BT 66.08 269.10 Td (, San Francisco, Los ) Tj ET Q q 0 0 0 rg BT 149.40 269.10 Td (Angeles, Miami and other prominent coastal cities. ) Tj ET Q q 0 0 0 rg BT 358.61 269.10 Td (The beneficiaries of these “urban-core concerns” ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (have increasingly been suburban markets. ) Tj ET Q q 0 0 0 rg BT 221.76 257.10 Td (W) Tj ET Q q 0 0 0 rg BT 230.80 257.10 Td (ith more renters opting for the suburbs, vacancy has been declining and rents ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (increasing in suburban markets. ) Tj ET Q q 0 0 0 rg BT 181.51 245.10 Td (This trend is likely to continue, assuming the economy continues to grow and suburban ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (markets remain af) Tj ET Q q 0 0 0 rg BT 121.51 233.10 Td (fordable compared to their urban counterparts. ) Tj ET Q q 0 0 0 rg BT 314.86 233.10 Td (These factors bode well for our portfolio, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.10 Td (predominantly located in suburban markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 203.10 Td (It is approaching eight years since the recession of 2008-2009. Since that time, the U.S. economy has experienced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (modest, but sustained, real GDP) Tj ET Q q 0 0 0 rg BT 178.00 191.10 Td ( and job growth. ) Tj ET Q q 0 0 0 rg BT 248.37 191.10 Td (The pace of growth eased in 2016 however) Tj ET Q q 0 0 0 rg BT 420.40 191.10 Td (, as compared to 2014 and 2015. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (Real GDP) Tj ET Q q 0 0 0 rg BT 89.96 179.10 Td ( growth in 2014 and 2015 was 2.4% and 2.6%, respectively) Tj ET Q q 0 0 0 rg BT 327.32 179.10 Td (, versus 1.6% for 2016. It is noteworthy that the easing of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (economic growth in 2016 occurred predominantly in the first half of the year) Tj ET Q q 0 0 0 rg BT 356.63 167.10 Td (. Following annualized real GDP) Tj ET Q q 0 0 0 rg BT 490.68 167.10 Td ( growth of 0.8% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (and 1.4% in the first and second quarters of 2016, real GDP) Tj ET Q q 0 0 0 rg BT 288.24 155.10 Td ( growth spiked in the third quarter to 3.5% and again eased to 2.1% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (in the fourth quarter) Tj ET Q q 0 0 0 rg BT 129.20 143.10 Td (. In 2017, annualized real GDP) Tj ET Q q 0 0 0 rg BT 255.46 143.10 Td ( increased 1.2% and 3.1% in the first and second quarters, respectively) Tj ET Q q 0 0 0 rg BT 537.49 143.10 Td (. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (terms of job growth, the United States added 3.0 and 2.7 million jobs in 2014 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 450.73 131.10 Td (, versus 2.2 million jobs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (gained in 2016. Over the course of the first three quarters of 2017, the United States added an estimated 1.3 million jobs.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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 90.50 730.60 Td (Management’) Tj ET Q q 0 0 0 rg BT 149.56 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 221.54 730.60 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 (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 704.10 Td (U.S. construction of new multifamily units was at historical lows following the recession, as demand was anemic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (stemming from the loss of approximately 8.6 million jobs. ) Tj ET Q q 0 0 0 rg BT 287.26 692.10 Td (A) Tj ET Q q 0 0 0 rg BT 293.93 692.10 Td ( historical high of prime-age renters \(20-34 year olds\) were living ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (with their parents waiting for the job market to recover at the time. In anticipation of the economic recovery and a release of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (this pent-up demand, multifamily developers began increasing the number of new construction units, rebounding from 98,000 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (in 2009 to over 350,000 units in 2015. In 2016, Multifamily starts remained in the 350,000 units range, outpacing demand, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (albeit only slightly) Tj ET Q q 0 0 0 rg BT 123.85 644.10 Td (, for the first time since the recession.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 626.10 Td (As with many Multifamily experts, we see the 2016 supply imbalance as a temporary phenomenon and unrelated to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (portfolio. Supply concerns are predominantly focused in a limited number of urban core markets, and our portfolio is suburban ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (weighted. ) Tj ET Q q 0 0 0 rg BT 93.10 602.10 Td (Also, the majority of the new construction pipeline in 2017 is focused in urban core markets. Moreover) Tj ET Q q 0 0 0 rg BT 505.93 602.10 Td (, Multifamily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (supply is projected to slow towards historic norms over the next 1-2 years, as banks have been gradually tightening their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (construction lending standards and equity investors have been becoming more selective about the developments they pursue. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (point of fact, for the first seven months of 2017, multifamily construction starts were down 10% as compared to the same ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (period in 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 536.10 Td (Demand remains strong and is projected to sustain Multifamily fundamentals for the next few years. ) Tj ET Q q 0 0 0 rg BT 478.60 536.10 Td (V) Tj ET Q q 0 0 0 rg BT 484.72 536.10 Td (acancy was 4.8% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (and 4.6% in 2014 and 2015, respectfully) Tj ET Q q 0 0 0 rg BT 211.04 524.10 Td (, and remained at 4.6% in 2016. ) Tj ET Q q 0 0 0 rg BT 343.32 524.10 Td (V) Tj ET Q q 0 0 0 rg BT 349.44 524.10 Td (acancy was 4.3% at the end of the second quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (2017 and is projected to remain in the 4.3% to 4.5% range through 2020, as demand continues to absorb new unit deliveries and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (the rate of new construction eases. Such vacancy levels compare favorably to the historical equilibrium vacancy rate of 5.6%. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.54 488.10 Td (ith more supply generally in recent years, Multifamily rent growth eased somewhat in 2016. Rent growth was 3.4% for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (year) Tj ET Q q 0 0 0 rg BT 66.31 476.10 Td (, as compared to 4.2% and 5.0% in 2014 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 320.32 476.10 Td (. Rent growth was down to 3.0% at the end of the second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (quarter of 2017; however) Tj ET Q q 0 0 0 rg BT 150.45 464.10 Td (, with persistent demand and easing supply as noted, rent growth is projected to increase to 3.7% by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (the end of 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 434.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.54 434.10 Td (ith Multifamily supply and af) Tj ET Q q 0 0 0 rg BT 199.12 434.10 Td (fordability concerns centered primarily in urban core markets, particularly with regard to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (lar) Tj ET Q q 0 0 0 rg BT 59.87 422.10 Td (ge coastal cities, more and more renters are opting for the suburbs. ) Tj ET Q q 0 0 0 rg BT 330.61 422.10 Td (According to CBRE Research, the least af) Tj ET Q q 0 0 0 rg BT 498.99 422.10 Td (fordable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (Multifamily markets in the U.S. in 201) Tj ET Q q 0 0 0 rg BT 204.67 410.10 Td (1 have become even more unaf) Tj ET Q q 0 0 0 rg BT 329.15 410.10 Td (fordable in the years since then. Furthermore, according ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (to the latest data available from the U.S. Census Bureau, 1.8 million more people moved to the suburbs than to urban cores. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (This shift of demand towards the suburbs is projected to continue and well located, relatively af) Tj ET Q q 0 0 0 rg BT 431.99 386.10 Td (fordable \(as compared to their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (urban core counterparts\) suburban apartments are likely to continue to perform well in the short-term \(2-3 years\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 356.10 Td (In the medium- and long-term, we believe the prospects for Multifamily real estate investment continue to be promising. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 344.10 Td (e expect several positive demographic trends, as noted below) Tj ET Q q 0 0 0 rg BT 302.13 344.10 Td (, will drive the demand for Multifamily housing for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (remainder of this decade and well into the next.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 314.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 314.10 Td (U.S. population growth - ) Tj ET Q q 0 0 0 rg BT 192.04 314.10 Td (The U.S. Census Bureau projects that the U.S. population will increase by approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 302.10 Td (38 million \(12%\) between 2015 and 2030. Note that, currently) Tj ET Q q 0 0 0 rg BT 341.51 302.10 Td (, about 36% of people choose to rent as opposed to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 290.10 Td (own a home. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 275.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 275.10 Td (Baby Boomers downsizing - ) Tj ET Q q 0 0 0 rg BT 206.47 275.10 Td (The population age 65 and over is increasing, driven by Baby Boomers, from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 263.10 Td (approximately 48 million in 2015 to about 74 million in 2030. Despite generally having enough income to purchase a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 251.10 Td (home, many Baby Boomers are downsizing, opting for the convenience and amenities of Multifamily properties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 236.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 236.10 Td (Echo Boom - ) Tj ET Q q 0 0 0 rg BT 145.64 236.10 Td (The children of the Baby Boom generation, dubbed the Echo Boomers, will have increased the prime ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 224.10 Td (rental age group, 20 to 34 year olds, by 2 million \(69 million total\) from 2015 to 2020. ) Tj ET Q q 0 0 0 rg BT 440.88 224.10 Td (This age cohort is expected to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 212.10 Td (remain at this elevated level, up 4 million from 2010, through 2030 according to the U.S. Census Bureau.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 191.10 Td (Finally) Tj ET Q q 0 0 0 rg BT 100.19 191.10 Td (, with regard to the Multifamily investment market, although interest rates increased in 2016 and again in the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (half of 2017, Multifamily capitalization rates have changed very little and values have remained stable. Increasing interest rates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (have historically had a negative ef) Tj ET Q q 0 0 0 rg BT 186.20 167.10 Td (fect on Multifamily values. However) Tj ET Q q 0 0 0 rg BT 336.32 167.10 Td (, three key factors are buoying values. First, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (Multifamily market fundamentals, as described above, are strong and their forecast promising. Secondly) Tj ET Q q 0 0 0 rg BT 468.73 155.10 Td (, the spread between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (10-year U.S. ) Tj ET Q q 0 0 0 rg BT 102.64 143.10 Td (T) Tj ET Q q 0 0 0 rg BT 108.40 143.10 Td (reasuries and capitalization rates has been atypically wide in recent years and can therefore absorb modest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (interest rate hikes without increasing capitalization rates. Lastly) Tj ET Q q 0 0 0 rg BT 306.26 131.10 Td (, U.S. commercial real estate, including Multifamily) Tj ET Q q 0 0 0 rg BT 514.45 131.10 Td (, is a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (favored investment for foreign capital due to the lack of attractive risk-adjusted returns in the foreseeable future elsewhere.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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 90.50 730.60 Td (Management’) Tj ET Q q 0 0 0 rg BT 149.56 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 221.54 730.60 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 (24) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Liquidity and Capital Resour) Tj ET Q q 0 0 0 rg BT 175.18 704.25 Td (ces) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 686.25 Td (Our principal demands for funds during the short and long-term are and will be for the payment of operating expenses, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (capital expenditures and general and administrative expenses including expenses in connection with the Plan of Liquidation if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (approved by our stockholders; payments under debt obligations; redemptions of common stock; and payments of certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (distributions to stockholders. ) Tj ET Q q 0 0 0 rg BT 167.65 650.25 Td (T) Tj ET Q q 0 0 0 rg BT 173.06 650.25 Td (o date, we have had the following sources of capital for meeting our cash requirements:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 632.25 Td (Proceeds from our now-terminated primary Of) Tj ET Q q 0 0 0 rg BT 276.70 632.25 Td (ferings; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 617.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 617.25 Td (Proceeds from our now-terminated dividend reinvestment plan;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 602.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 602.25 Td (Proceeds from asset sales;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 587.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 587.25 Td (Debt financings; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 572.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 572.25 Td (Cash flow generated by our real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 551.25 Td (As described above under “ — Overview — Plan of Liquidation,” our board of directors unanimously approved the sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.25 Td (of all of our assets and our dissolution pursuant to the terms of the Plan of Liquidation. If the Plan of Liquidation is approved by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.25 Td (our stockholders, we expect to sell all of our assets, pay all of our known liabilities, provide for unknown liabilities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.25 Td (distribute the net proceeds from liquidation to our stockholders. ) Tj ET Q q 0 0 0 rg BT 306.49 515.25 Td (There can be no assurances regarding the amounts of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.25 Td (liquidating distributions or the timing thereof. ) Tj ET Q q 0 0 0 rg BT 237.63 503.25 Td (W) Tj ET Q q 0 0 0 rg BT 246.27 503.25 Td (e sold an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.51 503.25 Td (22,031,350) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.51 503.25 Td ( shares of common stock in the Of) Tj ET Q q 0 0 0 rg BT 518.80 503.25 Td (ferings for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (gross of) Tj ET Q q 0 0 0 rg BT 81.26 491.25 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.51 491.25 Td ($218.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.40 491.25 Td (, including an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.80 491.25 Td (2,815,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.80 491.25 Td ( shares of common stock under our dividend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (reinvestment plan for gross of) Tj ET Q q 0 0 0 rg BT 169.29 479.25 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.53 479.25 Td ($27.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.43 479.25 Td (. ) Tj ET Q q 0 0 0 rg BT 305.37 479.25 Td (Also as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.43 479.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.69 479.25 Td (, we had redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.15 479.25 Td (1,024,594) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.15 479.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (shares sold in the Of) Tj ET Q q 0 0 0 rg BT 131.53 467.25 Td (ferings for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.96 467.25 Td ($9.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.85 467.25 Td (. ) Tj ET Q q 0 0 0 rg BT 232.17 467.25 Td (W) Tj ET Q q 0 0 0 rg BT 240.80 467.25 Td (e intend to use our cash on hand, cash flow generated by our real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.25 Td (operations and proceeds from the sale of real estate properties as our primary sources of immediate and long-term liquidity) Tj ET Q q 0 0 0 rg BT 540.35 455.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 437.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 437.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 437.25 Td (, we owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.03 437.25 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.02 437.25 Td ( apartment complexes, all of which were under contract to sell. ) Tj ET Q q 0 0 0 rg BT 501.41 437.25 Td (The sale of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.25 Td (Core-Portfolio Properties is subject to stockholder approval of the Plan of Liquidation and as such, the Core-Portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.25 Td (Properties are held for investment. ) Tj ET Q q 0 0 0 rg BT 191.96 413.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.40 413.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.67 413.25 Td (, our remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.54 413.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.20 413.25 Td ( properties were held for sale and subsequent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.25 Td (to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.78 401.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.04 401.25 Td (, we completed the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.95 401.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.93 401.25 Td ( of these properties. See “—Subsequent Events — Dispositions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (Subsequent to September 30, 2017.” Our real estate investments generate cash flow in the form of rental revenues, which are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (reduced by operating expenditures, debt service payments, the payment of property management and asset management fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.25 Td (and corporate general and administrative expenses. Cash flows from operations from our real estate investments is primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.25 Td (dependent upon the occupancy level of our properties, the net ef) Tj ET Q q 0 0 0 rg BT 306.17 353.25 Td (fective rental rates on our leases, the collectibility of rent and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.25 Td (how well we manage our expenditures. Cash flows from operations from our real estate investments has been reduced as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.25 Td (result of real estate property sales and will continue to be reduced as we sell additional real estate properties. ) Tj ET Q q 0 0 0 rg BT 487.95 329.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 317.25 Td (, real estate held for investment was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.82 317.25 Td (93%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.15 317.25 Td ( occupied. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 299.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 299.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 299.25 Td (, our total debt outstanding was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.74 299.25 Td ($214.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.64 299.25 Td (. ) Tj ET Q q 0 0 0 rg BT 370.96 299.25 Td (W) Tj ET Q q 0 0 0 rg BT 379.59 299.25 Td (e limit our total liabilities to 75% of the cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.25 Td (\(before deducting depreciation and other non-cash reserves\) of our tangible assets; however) Tj ET Q q 0 0 0 rg BT 415.90 287.25 Td (, we may exceed that limit if a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.25 Td (majority of the conflicts committee approves each borrowing in excess of this limitation and we disclose such borrowing to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.25 Td (stockholders in our next quarterly report with an explanation from the conflicts committee of the justification for the excess ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.25 Td (borrowing. ) Tj ET Q q 0 0 0 rg BT 98.11 251.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.55 251.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.82 251.25 Td (, our borrowings and other liabilities were approximately 59% of the cost \(before ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.25 Td (deducting depreciation and other non-cash reserves\) of our tangible assets. ) Tj ET Q q 0 0 0 rg BT 352.18 239.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.62 239.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.88 239.25 Td (, we had a total of $162.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.25 Td (million of debt obligations scheduled to mature within the next two years. Subsequent to September 30, 2017, we repaid $63.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.25 Td (million of debt in connection with the dispositions of three of our properties. See “—Subsequent Events — Dispositions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.25 Td (Subsequent to September 30, 2017.”) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 185.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 185.25 Td (e paid distributions to our stockholders during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.28 185.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.50 185.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.32 185.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.58 185.25 Td ( using a combination of cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.25 Td (flows from operations and proceeds from the disposition of one real estate asset, ) Tj ET Q q 0 0 0 rg BT 373.12 173.25 Td (W) Tj ET Q q 0 0 0 rg BT 381.76 173.25 Td (esley ) Tj ET Q q 0 0 0 rg BT 404.62 173.25 Td (V) Tj ET Q q 0 0 0 rg BT 411.24 173.25 Td (illage. ) Tj ET Q q 0 0 0 rg BT 440.40 173.25 Td (As described in the Proxy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.25 Td (Statement, subsequent to our payment of the September 2017 monthly distribution, we ceased paying regular monthly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.25 Td (distributions. ) Tj ET Q q 0 0 0 rg BT 106.82 149.25 Td (W) Tj ET Q q 0 0 0 rg BT 115.46 149.25 Td (e do not expect to pay regular monthly distributions. However) Tj ET Q q 0 0 0 rg BT 366.39 149.25 Td (, if the Plan of Liquidation is not approved by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.25 Td (our stockholders, we intend to pursue a longer) Tj ET Q q 0 0 0 rg BT 234.26 137.25 Td (-term business plan for the Core-Portfolio Properties and sell our remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.25 Td (properties. ) Tj ET Q q 0 0 0 rg BT 96.80 125.25 Td (W) Tj ET Q q 0 0 0 rg BT 105.44 125.25 Td (e would likely distribute a portion of the net proceeds from such property sales to our stockholders. ) Tj ET Q q 0 0 0 rg BT 507.11 125.25 Td (W) Tj ET Q q 0 0 0 rg BT 515.75 125.25 Td (e may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.25 Td (begin paying regular monthly distributions again, but such distributions likely would be at an amount less than our previous ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.25 Td (regular monthly distributions, as would be appropriate for our smaller size. ) Tj ET Q q 0 0 0 rg BT 354.25 101.25 Td (W) Tj ET Q q 0 0 0 rg BT 362.88 101.25 Td (e can give no assurance, however) Tj ET Q q 0 0 0 rg BT 496.31 101.25 Td (, that these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.25 Td (expectations would be realized. ) Tj ET Q q 0 0 0 rg BT 180.38 89.25 Td (W) Tj ET Q q 0 0 0 rg BT 189.02 89.25 Td (e believe that our cash flows from operations, cash on hand and proceeds from asset sales are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.25 Td (suf) Tj ET Q q 0 0 0 rg BT 61.54 77.25 Td (ficient to meet our liquidity needs for the foreseeable future.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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 90.50 730.60 Td (Management’) Tj ET Q q 0 0 0 rg BT 149.56 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 221.54 730.60 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 (25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (Under our charter) Tj ET Q q 0 0 0 rg BT 142.67 704.10 Td (, we are required to limit our total operating expenses to the greater of 2% of our average invested assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (or 25% of our net income for the four most recently completed fiscal quarters, as these terms are defined in our charter) Tj ET Q q 0 0 0 rg BT 523.92 692.10 Td (, unless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (the conflicts committee has determined that such excess expenses were justified based on unusual and non-recurring factors. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (Operating expenses for the four fiscal quarters ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.86 668.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.12 668.10 Td ( did not exceed the charter) Tj ET Q q 0 0 0 rg BT 449.71 668.10 Td (-imposed limitation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 650.10 Td (On ) Tj ET Q q 0 0 0 rg BT 86.17 650.10 Td (April 5, 2017, our board of directors approved an estimated value per share of our common stock of $8.35, ef) Tj ET Q q 0 0 0 rg BT 523.36 650.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (April 20, 2017. ) Tj ET Q q 0 0 0 rg BT 115.43 638.10 Td (The estimated value per share is equal to the estimated value per share of our common stock of $9.35 approved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (by our board of directors on December 9, 2016, reduced for the impact of the special distribution of $1.00 per share paid to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (stockholders of record as of the close of business on ) Tj ET Q q 0 0 0 rg BT 260.01 614.10 Td (April 20, 2017, which was paid on May 1, 2017 and funded from the net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (proceeds from the sale of ) Tj ET Q q 0 0 0 rg BT 152.89 602.10 Td (W) Tj ET Q q 0 0 0 rg BT 161.53 602.10 Td (esley ) Tj ET Q q 0 0 0 rg BT 184.39 602.10 Td (V) Tj ET Q q 0 0 0 rg BT 191.01 602.10 Td (illage \(the “Special Distribution”\). ) Tj ET Q q 0 0 0 rg BT 333.20 602.10 Td (Any future special distributions we pay from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (proceeds of future dispositions will further reduce our estimated value per share.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (Cash Flows from Operating ) Tj ET Q q 0 0 0 rg BT 166.93 572.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 557.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 557.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 557.10 Td (, we owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.03 557.10 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.02 557.10 Td ( apartment complexes, all of which were under contract to sell. ) Tj ET Q q 0 0 0 rg BT 501.41 557.10 Td (The sale of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.10 Td (Core-Portfolio Properties is subject to stockholder approval of the Plan of Liquidation and as such, the Core-Portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.10 Td (Properties are held for investment. ) Tj ET Q q 0 0 0 rg BT 191.96 533.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.40 533.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.67 533.10 Td (, our remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.54 533.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.20 533.10 Td ( properties were held for sale and subsequent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.10 Td (to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.78 521.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.04 521.10 Td (, we completed the sale of three of these properties. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.34 521.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.56 521.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.38 521.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.65 521.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.10 Td (net cash provided by operating activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.95 509.10 Td ($6.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.84 509.10 Td (. ) Tj ET Q q 0 0 0 rg BT 288.16 509.10 Td (W) Tj ET Q q 0 0 0 rg BT 296.79 509.10 Td (e expect our cash flows from operations to decrease as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td (prior disposition and anticipated dispositions of real estate investments.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (Cash Flows from Investing ) Tj ET Q q 0 0 0 rg BT 163.60 479.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 464.10 Td (Net cash provided by investing activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.57 464.10 Td ($120.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.46 464.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.84 464.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.05 464.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.88 464.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.14 464.10 Td ( and consisted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (primarily of the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 434.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 434.10 Td ($121.3 million of proceeds from the sale of three apartment complexes; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 419.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 419.10 Td ($1.8 million used for improvements to real estate.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (Cash Flows from Financing ) Tj ET Q q 0 0 0 rg BT 168.61 398.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 383.10 Td (Net cash used in financing activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.23 383.10 Td ($96.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.12 383.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.50 383.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.71 383.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.54 383.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.80 383.10 Td ( and consisted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (primarily of the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 353.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 353.10 Td ($67.7 million of principal payments on our mortgage notes payable;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 338.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 338.10 Td ($26.3 million of net cash distributions, after giving ef) Tj ET Q q 0 0 0 rg BT 303.67 338.10 Td (fect to dividends reinvested by stockholders of $3.0 million; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 323.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 323.10 Td ($2.0 million of cash used for redemptions of common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 302.10 Td (In addition to using our capital resources to meet our debt service obligations, for capital expenditures and for operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (costs, we use our capital resources to make certain payments to our advisor) Tj ET Q q 0 0 0 rg BT 349.69 290.10 Td (. ) Tj ET Q q 0 0 0 rg BT 354.50 290.10 Td (W) Tj ET Q q 0 0 0 rg BT 363.14 290.10 Td (e paid our advisor fees in connection with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (management and disposition of our assets and for certain costs incurred by our advisor in providing services to us. ) Tj ET Q q 0 0 0 rg BT 508.29 278.10 Td (Among the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (fees payable to our advisor is an asset management fee.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 87.74 248.10 Td (Agreement - ) Tj ET Q q 0 0 0 rg BT 140.69 248.10 Td (Asset Management Fee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 233.10 Td (Pursuant to the advisory agreement, the asset management fee payable by us to our advisor with respect to investments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.10 Td (real estate is a monthly fee equal to the lesser of one-twelfth of \(i\) 1.0% of the amount paid or allocated to fund the acquisition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.10 Td (development, construction or improvement of the property \(whether at or subsequent to acquisition\), including acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.10 Td (expenses and budgeted capital improvement costs \(regardless of the level of debt used to finance the investment\), and \(ii\) 2.0% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (of the amount paid or allocated to fund the acquisition, development, construction or improvement of the property \(whether at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.10 Td (or subsequent to acquisition\), including acquisition expenses and budgeted capital improvement costs, less any debt used to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.10 Td (finance the investment.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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 90.50 730.60 Td (Management’) Tj ET Q q 0 0 0 rg BT 149.56 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 221.54 730.60 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 (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (The advisory agreement defers our obligation to pay asset management fees, without interest, accruing from February 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (2013 through July 31, 2013. ) Tj ET Q q 0 0 0 rg BT 167.10 692.10 Td (W) Tj ET Q q 0 0 0 rg BT 175.74 692.10 Td (e will only be obligated to pay our advisor such deferred amounts if and to the extent that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (funds from operations, as such term is defined by the National ) Tj ET Q q 0 0 0 rg BT 300.55 680.10 Td (Association of Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 455.61 680.10 Td (T) Tj ET Q q 0 0 0 rg BT 461.37 680.10 Td (rusts \(“NAREIT”\) and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (interpreted by us, as adjusted for the ef) Tj ET Q q 0 0 0 rg BT 204.82 668.10 Td (fects of straight-line rents and acquisition costs and expenses \(“AFFO”\) for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (immediately preceding month exceeds the amount of distributions declared for record dates of such prior month \(an “AFFO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (Surplus”\). ) Tj ET Q q 0 0 0 rg BT 95.15 644.10 Td (The amount of any ) Tj ET Q q 0 0 0 rg BT 172.91 644.10 Td (AFFO Surplus in a given month shall be applied first to pay our advisor) Tj ET Q q 0 0 0 rg BT 460.75 644.10 Td (’) Tj ET Q q 0 0 0 rg BT 463.53 644.10 Td (s asset management fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (currently due with respect to such month \(including any that would otherwise have been deferred for that month in accordance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (with the advisory agreement\) and then to pay asset management fees previously deferred by our advisor in accordance with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (advisory agreement that remain unpaid. ) Tj ET Q q 0 0 0 rg BT 212.50 608.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.95 608.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.21 608.10 Td (, we had deferred payment of $1.5 million of asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (management fees for the period from February 2013 through July 2013, but did not record an accrual on our books as we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (believed that the chance of payment of this amount to our advisor is remote. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 566.10 Td (In addition, the advisory agreement defers without interest under certain circumstances, our obligation to pay asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (management fees accruing from ) Tj ET Q q 0 0 0 rg BT 180.00 554.10 Td (August 1, 2013. Specifically) Tj ET Q q 0 0 0 rg BT 296.00 554.10 Td (, the advisory agreement defers our obligation to pay an asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (management fee for any month in which our modified funds from operations \(“MFFO”\) for such month, as such term is defined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (in the practice guideline issued by the Investment Program ) Tj ET Q q 0 0 0 rg BT 286.38 530.10 Td (Association \(“IP) Tj ET Q q 0 0 0 rg BT 351.84 530.10 Td (A”\) in November 2010 and interpreted by us, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (excluding asset management fees, does not exceed the amount of distributions declared by us for record dates of that month. ) Tj ET Q q 0 0 0 rg BT 549.17 518.10 Td (W) Tj ET Q q 0 0 0 rg BT 557.81 518.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (remain obligated to pay our advisor an asset management fee in any month in which our MFFO, excluding asset management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (fees, for such month exceeds the amount of distributions declared for the record dates of that month \(such excess amount, an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (“MFFO Surplus”\); however) Tj ET Q q 0 0 0 rg BT 161.31 482.10 Td (, any amount of such asset management fee in excess of the MFFO Surplus is also deferred under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (the advisory agreement. If the MFFO Surplus for any month exceeds the amount of the asset management fee payable for such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (month, any remaining MFFO Surplus will not be applied to pay asset management fee amounts previously deferred by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (advisor in accordance with the advisory agreement. ) Tj ET Q q 0 0 0 rg BT 259.70 446.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.14 446.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.41 446.10 Td (, we had deferred payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.08 446.10 Td ($8.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.97 446.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (asset management fees for the period from ) Tj ET Q q 0 0 0 rg BT 221.94 434.10 Td (August 2013 through December 2016, but did not record an accrual on our books as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (we do not expect to pay this amount to our advisor) Tj ET Q q 0 0 0 rg BT 251.69 422.10 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.73 422.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.95 422.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.78 422.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.04 422.10 Td (, we incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.02 422.10 Td ($2.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 410.10 Td ( of asset management fees. However) Tj ET Q q 0 0 0 rg BT 227.10 410.10 Td (, we only recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.01 410.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.90 410.10 Td ( pursuant to the limitations in the advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (agreement as noted above. ) Tj ET Q q 0 0 0 rg BT 157.88 398.10 Td (W) Tj ET Q q 0 0 0 rg BT 166.52 398.10 Td (e did not accrue the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.36 398.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.25 398.10 Td ( of these deferred asset management fees as it is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (expected that any of these amounts will be paid in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 368.10 Td (However) Tj ET Q q 0 0 0 rg BT 108.25 368.10 Td (, notwithstanding any of the foregoing, any and all deferred asset management fees shall be immediately due and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (payable at such time as our stockholders have received, together as a collective group, aggregate distributions \(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (distributions that may constitute a return of capital for federal income tax purposes\) suf) Tj ET Q q 0 0 0 rg BT 398.38 344.10 Td (ficient to provide \(i\) a return of their net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (invested capital, or the amount calculated by multiplying the total number of shares purchased by stockholders by the issue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (price, reduced by any amounts to repurchase shares pursuant to our share redemption plan, and \(ii\) an 8.0% per year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (cumulative, non-compounded return on such net invested capital \(the “Stockholders’) Tj ET Q q 0 0 0 rg BT 388.10 308.10 Td ( 8% Return”\). ) Tj ET Q q 0 0 0 rg BT 446.24 308.10 Td (The Stockholders’) Tj ET Q q 0 0 0 rg BT 519.09 308.10 Td ( 8% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (Return is not based on the return provided to any individual stockholder) Tj ET Q q 0 0 0 rg BT 336.95 296.10 Td (. ) Tj ET Q q 0 0 0 rg BT 341.39 296.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 390.73 296.10 Td (, it is not necessary for each of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (stockholders to have received any minimum return in order for our advisor to receive deferred asset management fees. During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (the year ended December 31, 2016, we reversed, as described above, an aggregate of $4.8 million of deferred asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (management fees that were previously accrued. ) Tj ET Q q 0 0 0 rg BT 244.23 260.10 Td (W) Tj ET Q q 0 0 0 rg BT 252.87 260.10 Td (e believed the the chance of payment of the deferred asset management fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (is remote based on the estimated value per share and management’) Tj ET Q q 0 0 0 rg BT 316.07 248.10 Td (s current projection of cash flow and distributions to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (stockholders. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (Contractual Commitments and Contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 200.10 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 324.94 200.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.21 200.10 Td ( \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 146.60 200.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 146.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 146.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.00 146.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 146.60 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 146.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 146.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.00 146.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 146.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 146.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 146.60 57.00 -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 318 169.60000000000002 m 379 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 169.60000000000002 m 383 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383 169.60000000000002 m 440 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 169.60000000000002 m 444 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 169.60000000000002 m 501 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 169.60000000000002 m 505 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 169.60000000000002 m 562 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 146.60000000000002 m 250 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 146.60000000000002 m 314 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 146.60000000000002 m 379 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383 146.60000000000002 m 440 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 146.60000000000002 m 501 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 146.60000000000002 m 562 146.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 347.25 173.83 Td (Payments Due During the Years Ending December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 108.05 150.83 Td (Contractual Obligations) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 274.75 150.83 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 324.60 158.83 Td (Remainder of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 340.00 150.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.65 150.83 Td (2018-2019) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.65 150.83 Td (2020-2021) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.70 150.83 Td (Thereafter) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 136.85 Td (Outstanding debt obligations) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 144.94 140.48 Td ( \(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 256.50 136.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 284.80 136.85 Td (214,937) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 320.50 136.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.80 136.85 Td (1,125) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 385.50 136.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 136.85 Td (163,043) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 446.50 136.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 136.85 Td (1,736) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 507.50 136.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.80 136.85 Td (49,033) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 122.85 Td (Interest payments on outstanding debt obligations) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 211.81 126.48 Td ( \(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.80 122.85 Td (47,840) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.80 122.85 Td (1,892) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 414.80 122.85 Td (10,435) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 122.85 Td (3,670) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.80 122.85 Td (31,843) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 98.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 94.50 Td ( ) Tj ET Q q 0 0 0 rg BT 57.12 94.50 Td (Amounts include principal payments only) Tj ET Q q 0 0 0 rg BT 190.80 94.50 Td (. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 85.52 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 81.90 Td ( Projected interest payments are based on the outstanding principal amounts, maturity dates and interest rates in ef) Tj ET Q q 0 0 0 rg BT 420.64 81.90 Td (fect as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.96 81.90 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 516.17 81.90 Td (. ) Tj ET Q q 0 0 0 rg BT 522.03 81.90 Td (W) Tj ET Q q 0 0 0 rg BT 528.94 81.90 Td (e incurred ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 72.30 Td (interest expense of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 111.48 72.30 Td ($6.8 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 150.59 72.30 Td (, excluding amortization of deferred financing costs and discount on notes payable of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.17 72.30 Td ($0.4 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.29 72.30 Td (, for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.39 72.30 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.16 72.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 62.70 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 113.71 62.70 Td (.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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 90.50 730.60 Td (Management’) Tj ET Q q 0 0 0 rg BT 149.56 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 221.54 730.60 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 (27) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Results of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 686.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 686.25 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 686.25 Td (, we owned 1) Tj ET Q q 0 0 0 rg BT 229.66 686.25 Td (1 apartment complexes. Subsequent to September 30, 2016, we sold three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (apartment complexes. ) Tj ET Q q 0 0 0 rg BT 141.69 674.25 Td (As a result, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.12 674.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.38 674.25 Td (, we owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.71 674.25 Td (eight) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.70 674.25 Td ( apartment complexes, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.21 674.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.87 674.25 Td ( apartment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (complexes were held for sale. ) Tj ET Q q 0 0 0 rg BT 173.44 662.25 Td (The results of operations presented for the three and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.19 662.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.41 662.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.23 662.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.50 662.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 650.25 Td ( are not directly comparable due to the dispositions of three apartment complexes subsequent to January 1, 2017. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.25 Td (Our results of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.52 632.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.74 632.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.56 632.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.83 632.25 Td ( are not indicative of those expected in future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.25 Td (periods due to asset sales and anticipated asset sales. If the Plan of Liquidation is approved by our stockholders, we will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.25 Td (undertake an orderly liquidation by selling all of our assets, paying our known liabilities, providing for unknown liabilities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.25 Td (distributing the net proceeds from liquidation to our stockholders. ) Tj ET Q q 0 0 0 rg BT 317.33 596.25 Td (There can be no assurances regarding the amounts of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.25 Td (liquidating distributions or the timing thereof. In general, we expect that our revenues and expenses related to our portfolio will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (decrease in future periods due to anticipated disposition activity) Tj ET Q q 0 0 0 rg BT 304.33 572.25 Td (.) 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 72 552.9169921875 m 148.9482421875 552.9169921875 l s q 0 0 0 rg BT 72.00 554.25 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 552.9169921875 m 169.1240234375 552.9169921875 l s q 0 0 0 rg BT 148.95 554.25 Td (thr) Tj ET Q q 0 0 0 rg BT 160.25 554.25 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 552.9169921875 m 229.392578125 552.9169921875 l s q 0 0 0 rg BT 169.12 554.25 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 552.9169921875 m 309.099609375 552.9169921875 l s q 0 0 0 rg BT 229.39 554.25 Td (September 30, 2017) 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 309.099609375 552.9169921875 m 354.3681640625 552.9169921875 l s q 0 0 0 rg BT 309.10 554.25 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 354.3681640625 552.9169921875 m 374.5439453125 552.9169921875 l s q 0 0 0 rg BT 354.37 554.25 Td (thr) Tj ET Q q 0 0 0 rg BT 365.67 554.25 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 374.5439453125 552.9169921875 m 434.8125 552.9169921875 l s q 0 0 0 rg BT 374.54 554.25 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 434.8125 552.9169921875 m 514.51953125 552.9169921875 l s q 0 0 0 rg BT 434.81 554.25 Td (September 30, 2016) Tj ET Q BT /F3 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 539.25 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 432.75 539.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.74 539.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 527.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.20 527.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.20 527.25 Td ( \(dollar amounts in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 471.75 177.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 471.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 471.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 471.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 471.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 471.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 471.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 471.75 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 471.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 471.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 471.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 471.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 443.75 177.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 443.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 443.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 443.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 443.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 443.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 443.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 443.75 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 443.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 443.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 443.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 443.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 415.75 177.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 415.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 415.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 415.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 415.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 415.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 415.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 415.75 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 415.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 415.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 415.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 415.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 387.75 177.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 387.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 387.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 387.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 387.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 387.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 387.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 387.75 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 387.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 387.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 387.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 387.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 359.75 177.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 359.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 359.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 359.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 359.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 359.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 359.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 359.75 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 359.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 359.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 359.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 359.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 331.75 177.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 331.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 331.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 331.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 331.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 331.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 331.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 331.75 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 331.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 331.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 331.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 331.75 63.00 -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 227 489.75 m 279 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 489.75 m 283 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 489.75 m 335 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 489.75 m 279 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 471.75 m 279 471.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 489.75 m 335 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 471.75 m 335 471.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 471.75 m 381 471.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 471.75 m 429 471.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 471.75 m 496 471.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 471.75 m 563 471.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 471.75 m 279 471.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 471.75 m 335 471.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 494.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 244.10 501.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 257.29 501.98 Td (ee Months Ended ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 256.10 493.98 Td (September) Tj ET Q q 0 0 0 rg BT 292.83 493.98 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 345.10 483.98 Td (Increase) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.55 475.98 Td (\(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.65 483.98 Td (Per) Tj ET Q q 0 0 0 rg BT 399.49 483.98 Td (centage ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.35 475.98 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 435.65 483.98 Td ($ Change Due to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.25 475.98 Td (Dispositions ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 482.60 479.61 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.65 499.98 Td ($ Change Due to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.05 491.98 Td (Pr) Tj ET Q q 0 0 0 rg BT 512.34 491.98 Td (operties Held ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 510.35 483.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 523.54 483.98 Td (oughout ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.85 475.98 Td (Both Periods ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 551.07 479.61 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 476.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 244.50 475.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 300.50 475.98 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 462.00 Td (Rental income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 229.50 462.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 462.00 Td (10,111) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.50 462.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.75 462.00 Td (11,498) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.50 462.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.10 462.00 Td (\(1,387) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 462.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.45 462.00 Td (\(12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 462.00 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.50 462.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.10 462.00 Td (\(1,305) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 462.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.50 462.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 462.00 Td (\(82) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 462.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 448.00 Td (Operating, maintenance, and management costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 448.00 Td (1,528) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.80 448.00 Td (1,671) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.10 448.00 Td (\(143) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 448.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.45 448.00 Td (\(9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 448.00 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.10 448.00 Td (\(229) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 448.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 448.00 Td (86) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 434.00 Td (Real estate taxes and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 434.00 Td (1,712) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.80 434.00 Td (1,797) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.10 434.00 Td (\(85) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 434.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.45 434.00 Td (\(5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 434.00 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.10 434.00 Td (\(104) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 434.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 434.00 Td (19) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 420.00 Td (Asset management fees to affiliate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 267.80 420.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.80 420.00 Td (104) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.10 420.00 Td (\(104) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 420.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.45 420.00 Td (\(100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 420.00 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.70 420.00 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 420.00 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 406.00 Td (Property management fees and expenses to affiliate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 406.00 Td (1,432) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.80 406.00 Td (1,506) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.10 406.00 Td (\(74) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 406.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.45 406.00 Td (\(5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 406.00 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.10 406.00 Td (\(61) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 406.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 406.00 Td (\(13) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 406.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 392.00 Td (General and administrative expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 392.00 Td (1,082) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.80 392.00 Td (473) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.75 392.00 Td (609) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.15 392.00 Td (129) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.75 392.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.70 392.00 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 392.00 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 378.00 Td (Depreciation and amortization expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 378.00 Td (2,621) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.80 378.00 Td (3,084) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.10 378.00 Td (\(463) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 378.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.45 378.00 Td (\(15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 378.00 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.10 378.00 Td (\(342) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 378.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 378.00 Td (\(121) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 378.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 364.00 Td (Interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 364.00 Td (2,320) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.80 364.00 Td (2,588) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.10 364.00 Td (\(268) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 364.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.45 364.00 Td (\(10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 364.00 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.10 364.00 Td (\(228) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 364.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 364.00 Td (\(40) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 364.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 350.00 Td (Interest and other income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 267.80 350.00 Td (31) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.80 350.00 Td (4,765) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.10 350.00 Td (\(4,734) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 350.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.45 350.00 Td (\(99) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 350.00 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.80 350.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 350.00 Td (\(4,734) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 350.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 336.00 Td (Gain on sale of real estate, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 336.00 Td (14,653) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.80 336.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.75 336.00 Td (14,653) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.15 336.00 Td (100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.75 336.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 336.00 Td (14,653) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 336.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 322.00 Td (Loss from extinguishment of debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 261.10 322.00 Td (\(403) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 275.80 322.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.80 322.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.10 322.00 Td (\(403) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 322.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.45 322.00 Td (\(100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 322.00 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.10 322.00 Td (\(403) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 322.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 322.00 Td (—) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 297.27 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 293.65 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 293.65 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.25 293.65 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.91 293.65 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 368.12 293.65 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.65 293.65 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.64 293.65 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 293.65 Td (September 30, 2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.51 293.65 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 284.05 Td (related to real estate disposed of on or after July 1, 2016. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 275.08 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 271.45 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 271.45 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.25 271.45 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.91 271.45 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 368.12 271.45 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.65 271.45 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.64 271.45 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 271.45 Td (September 30, 2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.51 271.45 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 261.85 Td (related to real estate owned by us throughout both periods presented. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 237.85 Td (Rental income decreased from $1) Tj ET Q q 0 0 0 rg BT 206.02 237.85 Td (1.5 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.29 237.85 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.27 237.85 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.10 237.85 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.36 237.85 Td ( to $10.1 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.41 237.85 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.39 237.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 225.85 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 225.85 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 225.85 Td (, primarily due to the dispositions of three apartment complexes subsequent to July 1, 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 213.85 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 213.85 Td (e expect rental income to decrease as a result of anticipated dispositions of real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 195.85 Td (Operating, maintenance and management costs and real estate taxes and insurance decreased from $3.5 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.85 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 183.85 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.31 183.85 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.57 183.85 Td ( to $3.2 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.62 183.85 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.61 183.85 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.43 183.85 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.70 183.85 Td ( primarily due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.85 Td (dispositions of three apartment complexes subsequent to July 1, 2016. ) Tj ET Q q 0 0 0 rg BT 334.55 171.85 Td (W) Tj ET Q q 0 0 0 rg BT 343.19 171.85 Td (e expect operating, maintenance and management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.85 Td (costs and real estate taxes and insurance to decrease as a result of anticipated dispositions of real estate investments.) Tj ET Q 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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 90.50 730.60 Td (Management’) Tj ET Q q 0 0 0 rg BT 149.56 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 221.54 730.60 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 (28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 186.78 704.10 Td (filiate with respect to our real estate investments was $0.1 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.14 704.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.13 704.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 692.10 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.81 692.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.80 692.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.62 692.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.88 692.10 Td (, we incurred $0.7 million of asset management fees, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (of which $0.1 million was recorded based on certain payment limitations in the advisory agreement. ) Tj ET Q q 0 0 0 rg BT 454.76 680.10 Td (The remaining $0.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (million of asset management fees were deferred but not accrued as it is not expected that any of these amounts will be paid in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (the future. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.14 656.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.13 656.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.95 656.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.21 656.10 Td (, we incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.19 656.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.08 656.10 Td ( of asset management fees, none of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (which was recorded based on certain payment limitations in the advisory agreement. ) Tj ET Q q 0 0 0 rg BT 392.54 644.10 Td (The entire $0.7 million of asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (management fees were deferred but not accrued as it is not expected that any of these amounts will be paid in the future. For a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (discussion of the asset management fee payable by us to our advisor and the deferrals of the asset management fee, see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (“Liquidity and Capital Resources — ) Tj ET Q q 0 0 0 rg BT 197.53 608.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 236.70 608.10 Td (Agreement — ) Tj ET Q q 0 0 0 rg BT 295.57 608.10 Td (Asset Management Fee” herein.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 590.10 Td (Property management fees and expenses to af) Tj ET Q q 0 0 0 rg BT 254.53 590.10 Td (filiate decreased from $1.5 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.47 590.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.46 590.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 578.10 Td ( to $1.4 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.81 578.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.80 578.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.62 578.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.88 578.10 Td ( primarily due to the dispositions of three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (apartment complexes subsequent to July 1, 2016. ) Tj ET Q q 0 0 0 rg BT 250.95 566.10 Td (W) Tj ET Q q 0 0 0 rg BT 259.59 566.10 Td (e expect our property management fees and expenses to af) Tj ET Q q 0 0 0 rg BT 492.92 566.10 Td (filiate to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (decrease as a result of anticipated dispositions of real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 536.10 Td (General and administrative expenses increased from $0.5 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.85 536.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.84 536.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.66 536.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.92 536.10 Td ( to $1.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.77 524.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.75 524.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.58 524.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.84 524.10 Td (. ) Tj ET Q q 0 0 0 rg BT 278.16 524.10 Td (This increase was primarily due to legal fees incurred related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (liquidation matters and anticipated dispositions of real estate investments and an increase in other professional fees related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (the engagement of Robert ) Tj ET Q q 0 0 0 rg BT 155.02 500.10 Td (A. Stanger & Co., Inc. \(“Stanger”\) by the special committee of our board of directors to act as our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (financial advisor in connection with the exploration of strategic alternatives. Overall, we expect general and administrative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (expenses to vary in future periods pending the approval of our dissolution pursuant to the terms of the Plan of Liquidation by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (majority of our stockholders and anticipated dispositions of real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 446.10 Td (Depreciation and amortization expense decreased from $3.1 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.94 446.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.93 446.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.75 446.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.02 446.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td ($2.6 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.77 434.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.75 434.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.58 434.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.84 434.10 Td ( primarily due to the dispositions of three apartment complexes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (subsequent to July 1, 2016 and four apartment complexes that were classified as held for sale as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.33 422.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.59 422.10 Td (. Upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (classifying a property as held for sale, we cease depreciation and amortization expense for that property) Tj ET Q q 0 0 0 rg BT 463.68 410.10 Td (. Overall, we expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (depreciation and amortization expense to decrease in future periods as a result of anticipated dispositions of real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 368.10 Td (Interest expense decreased from $2.6 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.31 368.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.30 368.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.12 368.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.39 368.10 Td ( to $2.3 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.43 368.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.42 368.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 356.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 356.10 Td ( primarily due to an overall decrease in our total debt outstanding due to loan repayments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (connection with the dispositions of three apartment complexes subsequent to July 1, 2016. In general, we expect our interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (expense to decrease in future periods as a result of anticipated dispositions of real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 314.10 Td (Interest and other income decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.26 314.10 Td ($4.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.15 314.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.53 314.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.51 314.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.34 314.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 314.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.38 314.10 Td ($31,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.88 314.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 302.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.31 302.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.57 302.10 Td (. Interest and other income for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.36 302.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.34 302.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.17 302.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.43 302.10 Td ( of $4.8 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (million relates to the reversal of previously deferred and accrued asset management fees of $1.5 million for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (February 2013 through July 2013 and $3.3 million for the period from ) Tj ET Q q 0 0 0 rg BT 332.52 278.10 Td (August 2013 through December 2014 as we do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (expect to pay these amounts to our advisor) Tj ET Q q 0 0 0 rg BT 219.74 266.10 Td (. For a discussion of the asset management fee payable by us to our advisor and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (deferrals of the asset management fee, see “—Liquidity and Capital Resources — ) Tj ET Q q 0 0 0 rg BT 378.55 254.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 417.72 254.10 Td (Agreement — ) Tj ET Q q 0 0 0 rg BT 476.59 254.10 Td (Asset Management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (Fee” herein.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 224.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 224.10 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 255.55 224.10 Td ($14.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.44 224.10 Td (, net of disposition fees of $0.4 million paid to our advisor) Tj ET Q q 0 0 0 rg BT 542.07 224.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (related to the dispositions of two apartment complexes during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.88 212.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.87 212.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.70 212.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.96 212.10 Td (. ) Tj ET Q q 0 0 0 rg BT 482.28 212.10 Td (W) Tj ET Q q 0 0 0 rg BT 490.92 212.10 Td (e did not sell any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (real estate properties during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.06 200.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.04 200.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.87 200.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.13 200.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 182.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 182.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 182.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.36 182.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.62 182.10 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 487.18 182.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.07 182.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (related to the repayment of the mortgage loans secured by a real estate property we sold. ) Tj ET Q q 0 0 0 rg BT 408.07 170.10 Td (W) Tj ET Q q 0 0 0 rg BT 416.71 170.10 Td (e did not recognize any loss on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (extinguishment of debt during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.53 158.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.52 158.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.34 158.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.61 158.10 Td (.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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 90.50 730.60 Td (Management’) Tj ET Q q 0 0 0 rg BT 149.56 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 221.54 730.60 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 (29) 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 166.1650390625 702.7669921875 l s q 0 0 0 rg BT 148.95 704.10 Td (nine) 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 166.1650390625 702.7669921875 m 226.43359375 702.7669921875 l s q 0 0 0 rg BT 166.17 704.10 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 226.43359375 702.7669921875 m 306.140625 702.7669921875 l s q 0 0 0 rg BT 226.43 704.10 Td (September 30, 2017) 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 306.140625 702.7669921875 m 351.4091796875 702.7669921875 l s q 0 0 0 rg BT 306.14 704.10 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 351.4091796875 702.7669921875 m 368.6259765625 702.7669921875 l s q 0 0 0 rg BT 351.41 704.10 Td (nine) 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 368.6259765625 702.7669921875 m 428.89453125 702.7669921875 l s q 0 0 0 rg BT 368.63 704.10 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 428.89453125 702.7669921875 m 508.6015625 702.7669921875 l s q 0 0 0 rg BT 428.89 704.10 Td (September 30, 2016) Tj ET Q BT /F3 10.00 Tf ET 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 (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.97 689.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 677.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.20 677.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.20 677.10 Td ( \(dollar amounts in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 621.60 177.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 621.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 621.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 621.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 621.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 621.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 621.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 621.60 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 621.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 621.60 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 621.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 621.60 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 593.60 177.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 593.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 593.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 593.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 593.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 593.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 593.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 593.60 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 593.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 593.60 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 593.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 593.60 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 565.60 177.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 565.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 565.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 565.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 565.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 565.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 565.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 565.60 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 565.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 565.60 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 565.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 565.60 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 537.60 177.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 537.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 537.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 537.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 537.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 537.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 537.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 537.60 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 537.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 537.60 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 537.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 537.60 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 509.60 177.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 509.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 509.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 509.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 509.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 509.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 509.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 509.60 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 509.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 509.60 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 509.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 509.60 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 481.60 177.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 481.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 481.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 481.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 481.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 481.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 481.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 481.60 44.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 481.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 481.60 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 481.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 481.60 63.00 -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 227 639.6 m 279 639.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 639.6 m 283 639.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 639.6 m 335 639.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 639.6 m 279 639.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 621.6 m 279 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 639.6 m 335 639.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 621.6 m 335 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 621.6 m 381 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 621.6 m 429 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 621.6 m 496 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 621.6 m 563 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 621.6 m 279 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 621.6 m 335 621.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 643.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 246.25 651.83 Td (Nine Months Ended ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 256.10 643.83 Td (September) Tj ET Q q 0 0 0 rg BT 292.83 643.83 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 345.10 633.83 Td (Increase) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.55 625.83 Td (\(Decrease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.65 633.83 Td (Per) Tj ET Q q 0 0 0 rg BT 399.49 633.83 Td (centage ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.35 625.83 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 435.65 633.83 Td ($ Change Due to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.25 625.83 Td (Dispositions ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 482.60 629.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.65 649.83 Td ($ Change Due to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.05 641.83 Td (Pr) Tj ET Q q 0 0 0 rg BT 512.34 641.83 Td (operties Held ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 510.35 633.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 523.54 633.83 Td (oughout ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.85 625.83 Td (Both Periods ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 551.07 629.46 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 625.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 244.50 625.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 300.50 625.83 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 611.85 Td (Rental income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 229.50 611.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 611.85 Td (31,458) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.50 611.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.75 611.85 Td (34,019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.50 611.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.10 611.85 Td (\(2,561) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 611.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.45 611.85 Td (\(8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 611.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.50 611.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.10 611.85 Td (\(2,633) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 611.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.50 611.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 611.85 Td (72) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 597.85 Td (Operating, maintenance, and management costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 597.85 Td (4,435) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.80 597.85 Td (4,854) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.10 597.85 Td (\(419) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 597.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.45 597.85 Td (\(9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 597.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.10 597.85 Td (\(399) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 597.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 597.85 Td (\(20) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 597.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 583.85 Td (Real estate taxes and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 583.85 Td (5,347) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.80 583.85 Td (5,248) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.80 583.85 Td (99) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.15 583.85 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.75 583.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.10 583.85 Td (\(155) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 583.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 583.85 Td (254) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 569.85 Td (Asset management fees to affiliate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.80 569.85 Td (234) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.80 569.85 Td (343) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.10 569.85 Td (\(109) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 569.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.45 569.85 Td (\(32) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 569.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.70 569.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 569.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 555.85 Td (Property management fees and expenses to affiliate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 555.85 Td (4,422) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.80 555.85 Td (4,359) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.80 555.85 Td (63) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.15 555.85 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.75 555.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.10 555.85 Td (\(17) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 555.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 555.85 Td (80) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 541.85 Td (General and administrative expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 541.85 Td (2,190) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.80 541.85 Td (1,947) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.75 541.85 Td (243) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.15 541.85 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.75 541.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.70 541.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 541.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 527.85 Td (Depreciation and amortization expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 527.85 Td (8,384) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.80 527.85 Td (9,201) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.10 527.85 Td (\(817) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 527.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.45 527.85 Td (\(9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 527.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.10 527.85 Td (\(759) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 527.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 527.85 Td (\(58) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 527.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 513.85 Td (Interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 513.85 Td (7,180) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.80 513.85 Td (7,758) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.10 513.85 Td (\(578) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 513.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.45 513.85 Td (\(7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 513.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.10 513.85 Td (\(447) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 513.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 513.85 Td (\(131) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 513.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 499.85 Td (Interest and other income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.80 499.85 Td (106) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.80 499.85 Td (4,793) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.10 499.85 Td (\(4,687) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 499.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.45 499.85 Td (\(98) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 499.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.80 499.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 499.85 Td (\(4,687) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 499.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 485.85 Td (Gain on sale of real estate, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 485.85 Td (31,123) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.80 485.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.75 485.85 Td (31,123) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.15 485.85 Td (100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.75 485.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 485.85 Td (31,123) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 485.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 471.85 Td (Loss from extinguishment of debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 261.10 471.85 Td (\(671) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 275.80 471.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.80 471.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.10 471.85 Td (\(671) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.80 471.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.45 471.85 Td (\(100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.15 471.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.10 471.85 Td (\(671) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 471.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 471.85 Td (—) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 456.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 447.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 443.50 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 443.50 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.03 443.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.69 443.50 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.90 443.50 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.44 443.50 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.21 443.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.87 443.50 Td (September 30, 2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.08 443.50 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 433.90 Td (related to real estate disposed of on or after January 1, 2016. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 424.93 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 421.30 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 421.30 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.03 421.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.69 421.30 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.90 421.30 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.44 421.30 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.21 421.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.87 421.30 Td (September 30, 2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.08 421.30 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 411.70 Td (related to real estate owned by us throughout both periods presented. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 387.70 Td (Rental income decreased from $34.0 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.66 387.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.88 387.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.70 387.70 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.96 387.70 Td ( to $31.5 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.01 387.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.23 387.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.70 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 375.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 375.70 Td (, primarily due to the dispositions of three apartment complexes during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.41 375.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.62 375.70 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.70 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 363.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.14 363.70 Td (. ) Tj ET Q q 0 0 0 rg BT 163.46 363.70 Td (W) Tj ET Q q 0 0 0 rg BT 172.10 363.70 Td (e expect rental income to decrease as a result of anticipated dispositions of real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 351.70 Td (investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 333.70 Td (Operating, maintenance and management costs and real estate taxes and insurance decreased from $10.1 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.72 321.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.54 321.70 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.81 321.70 Td ( to $9.8 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.85 321.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.07 321.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.89 321.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.16 321.70 Td ( primarily due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.70 Td (dispositions of three apartment complexes during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.17 309.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.39 309.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.21 309.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.48 309.70 Td (, partially of) Tj ET Q q 0 0 0 rg BT 471.45 309.70 Td (fset by an increase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.70 Td (due to property tax reassessments. ) Tj ET Q q 0 0 0 rg BT 191.23 297.70 Td (W) Tj ET Q q 0 0 0 rg BT 199.87 297.70 Td (e expect operating, maintenance and management costs and real estate taxes and insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.70 Td (to decrease as a result of anticipated dispositions of real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 267.70 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 186.78 267.70 Td (filiate with respect to our real estate investments decreased slightly from $0.3 million to $0.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.70 Td (million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.77 255.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.99 255.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.81 255.70 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.07 255.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.51 255.70 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.51 255.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 360.17 255.70 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.22 255.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.44 255.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.26 255.70 Td (September 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.70 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 243.70 Td (, we incurred $2.2 million of asset management fees, of which $0.3 million was recorded based on certain payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 231.70 Td (limitations in the advisory agreement. ) Tj ET Q q 0 0 0 rg BT 205.67 231.70 Td (The remaining $1.9 million of asset management fees were deferred but not accrued as it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 219.70 Td (is not expected that any of these amounts will be paid in the future. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.31 219.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.53 219.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.35 219.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.61 219.70 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.70 Td (incurred $2.0 million of asset management fees, of which $0.2 million was recorded based on certain payment limitations in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.70 Td (advisory agreement. ) Tj ET Q q 0 0 0 rg BT 135.40 195.70 Td (The remaining $1.8 million of asset management fees were deferred but not accrued as it is not expected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.70 Td (that any of these amounts will be paid in the future. For a discussion of the asset management fee payable by us to our advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.70 Td (and the deferrals of the asset management fee, see “Liquidity and Capital Resources — ) Tj ET Q q 0 0 0 rg BT 400.21 171.70 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 439.38 171.70 Td (Agreement — ) Tj ET Q q 0 0 0 rg BT 498.25 171.70 Td (Asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.70 Td (Management Fee” herein.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 141.70 Td (General and administrative expenses increased from $1.9 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.85 141.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.07 141.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.89 141.70 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.16 141.70 Td ( to $2.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.70 Td (million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.77 129.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.99 129.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.81 129.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.07 129.70 Td (. ) Tj ET Q q 0 0 0 rg BT 275.39 129.70 Td (This increase was primarily due to legal fees incurred related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.70 Td (liquidation matters and anticipated dispositions of real estate investments and a net increase in other professional fees related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.70 Td (the engagement of Stanger by the special committee of our board of directors to act as our financial advisor) Tj ET Q q 0 0 0 rg BT 478.80 105.70 Td (. Overall, we expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.70 Td (general and administrative expenses to vary in future periods pending the approval of our dissolution pursuant to the terms of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.70 Td (the Plan of Liquidation by a majority of our stockholders and anticipated dispositions of real estate investments.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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 90.50 730.60 Td (Management’) Tj ET Q q 0 0 0 rg BT 149.56 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 221.54 730.60 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 (Depreciation and amortization expense decreased from $9.2 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.94 704.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.16 704.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.99 704.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.25 704.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td ($8.4 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.77 692.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.99 692.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.81 692.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.07 692.10 Td ( primarily due to the dispositions of three apartment complexes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 680.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.04 680.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.87 680.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.13 680.10 Td (. Overall, we expect depreciation and amortization expense to decrease in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (future periods as a result of anticipated dispositions of real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 650.10 Td (Interest expense decreased from $7.8 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.31 650.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.53 650.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.36 650.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.62 650.10 Td ( to $7.2 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.67 650.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.88 650.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 638.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 638.10 Td (. ) Tj ET Q q 0 0 0 rg BT 195.41 638.10 Td (The decrease in interest expense is primarily due to an overall decrease in our total debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (outstanding due to loan repayments in connection with the dispositions of three apartment complexes during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.51 626.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.73 626.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 614.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.14 614.10 Td (, and an overall decrease in the average loan balance of our existing notes payable related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (properties held throughout both periods. In general, we expect our interest expense to decrease in future periods as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (anticipated dispositions of real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 572.10 Td (Interest and other income decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.26 572.10 Td ($4.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.15 572.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.53 572.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.51 572.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.34 572.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.60 572.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.38 572.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.27 572.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 560.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.20 560.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.03 560.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.29 560.10 Td (. Interest and other income for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.07 560.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.29 560.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.11 560.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.38 560.10 Td ( of $4.8 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (million relates to the reversal of previously deferred and accrued asset management fees of $1.5 million for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (February 2013 through July 2013 and $3.3 million for the period from ) Tj ET Q q 0 0 0 rg BT 332.52 536.10 Td (August 2013 through December 2014 as we do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (expect to pay these amounts to our advisor) Tj ET Q q 0 0 0 rg BT 219.74 524.10 Td (. For a discussion of the asset management fee payable by us to our advisor and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (deferrals of the asset management fee, see “—Liquidity and Capital Resources — ) Tj ET Q q 0 0 0 rg BT 378.55 512.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 417.72 512.10 Td (Agreement — ) Tj ET Q q 0 0 0 rg BT 476.59 512.10 Td (Asset Management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (Fee” herein.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 482.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 482.10 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 255.55 482.10 Td ($31.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.44 482.10 Td (, net of disposition fees of $0.8 million paid to our advisor) Tj ET Q q 0 0 0 rg BT 542.07 482.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (related to the dispositions of three apartment complexes during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.87 470.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.09 470.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.91 470.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.18 470.10 Td (. ) Tj ET Q q 0 0 0 rg BT 484.50 470.10 Td (W) Tj ET Q q 0 0 0 rg BT 493.13 470.10 Td (e did not sell any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (real estate properties during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.06 458.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.28 458.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.10 458.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.37 458.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 440.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 440.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.76 440.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.59 440.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.85 440.10 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 484.41 440.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 440.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (related to the repayment of the mortgage loans secured by two real estate properties we sold. ) Tj ET Q q 0 0 0 rg BT 424.74 428.10 Td (W) Tj ET Q q 0 0 0 rg BT 433.38 428.10 Td (e did not recognize any loss on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (extinguishment of debt during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.53 416.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.75 416.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.57 416.10 Td (September 30, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.84 416.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (Funds fr) Tj ET Q q 0 0 0 rg BT 86.27 398.10 Td (om Operations and Modified Funds fr) Tj ET Q q 0 0 0 rg BT 249.16 398.10 Td (om Operations and ) Tj ET Q q 0 0 0 rg BT 333.34 398.10 Td (Adjusted MFFO) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 380.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 380.10 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 510.02 380.10 Td (. ) Tj ET Q q 0 0 0 rg BT 517.34 380.10 Td (W) Tj ET Q q 0 0 0 rg BT 525.97 380.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (compute FFO in accordance with the current NAREIT) Tj ET Q q 0 0 0 rg BT 267.31 368.10 Td ( definition. FFO represents net income, excluding gains and losses from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (sales of operating real estate assets \(which can vary among owners of identical assets in similar conditions based on historical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (cost accounting and useful-life estimates\), impairment losses on real estate assets, depreciation and amortization of real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (assets, and adjustments for unconsolidated partnerships and joint ventures. ) Tj ET Q q 0 0 0 rg BT 352.59 332.10 Td (W) Tj ET Q q 0 0 0 rg BT 361.23 332.10 Td (e believe FFO facilitates comparisons of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (operating performance between periods and among other REIT) Tj ET Q q 0 0 0 rg BT 301.76 320.10 Td (s. However) Tj ET Q q 0 0 0 rg BT 349.40 320.10 Td (, our computation of FFO may not be comparable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (other REIT) Tj ET Q q 0 0 0 rg BT 94.07 308.10 Td (s that do not define FFO in accordance with the current NAREIT) Tj ET Q q 0 0 0 rg BT 354.09 308.10 Td ( definition or that interpret the current NAREIT) Tj ET Q q 0 0 0 rg BT 544.68 308.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (definition dif) Tj ET Q q 0 0 0 rg BT 101.81 296.10 Td (ferently than we do. Our management believes that historical cost accounting for real estate assets in accordance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (with U.S. generally accepted accounting principles \(“GAAP”\) implicitly assumes that the value of real estate assets diminishes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (and analysts have considered the presentation of operating results for real estate companies that use historical cost accounting to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (be insuf) Tj ET Q q 0 0 0 rg BT 81.26 248.10 Td (ficient by themselves. ) Tj ET Q q 0 0 0 rg BT 173.18 248.10 Td (As a result, we believe that the use of FFO, together with the required GAAP) Tj ET Q q 0 0 0 rg BT 481.63 248.10 Td ( presentations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (provides a more complete understanding of our performance relative to our competitors and provides a more informed and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (appropriate basis on which to make decisions involving operating and financing activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 206.10 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 49.50 194.10 Td (included in the calculation of FFO. ) Tj ET Q q 0 0 0 rg BT 193.92 194.10 Td (As a result, our management also uses MFFO as an indicator of our ongoing performance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (MFFO excludes from FFO: acquisition fees and expenses \(to the extent that such fees and expenses have been recorded as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (operating expenses\); adjustments related to contingent purchase price obligations; amounts relating to straight-line rents and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (amortization of above and below market intangible lease assets and liabilities; accretion of discounts and amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (premiums on debt investments; amortization of closing costs relating to debt investments; impairments of real estate-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (investments; mark-to-market adjustments included in net income; and gains or losses included in net income for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (extinguishment or sale of debt or hedges. ) Tj ET Q q 0 0 0 rg BT 219.00 122.10 Td (W) Tj ET Q q 0 0 0 rg BT 227.64 122.10 Td (e compute MFFO in accordance with the definition of MFFO included in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (practice guideline issued by the IP) Tj ET Q q 0 0 0 rg BT 186.04 110.10 Td (A) Tj ET Q q 0 0 0 rg BT 192.71 110.10 Td ( in November 2010 as interpreted by management. Our computation of MFFO may not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (comparable to other REIT) Tj ET Q q 0 0 0 rg BT 153.48 98.10 Td (s that do not compute MFFO in accordance with the current IP) Tj ET Q q 0 0 0 rg BT 403.34 98.10 Td (A) Tj ET Q q 0 0 0 rg BT 410.01 98.10 Td ( definition or that interpret the current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (IP) Tj ET Q q 0 0 0 rg BT 57.47 86.10 Td (A) Tj ET Q q 0 0 0 rg BT 64.14 86.10 Td ( definition dif) Tj ET Q q 0 0 0 rg BT 118.95 86.10 Td (ferently than we do. ) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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 90.50 730.60 Td (Management’) Tj ET Q q 0 0 0 rg BT 149.56 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 221.54 730.60 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 72.00 704.10 Td (In addition, our management uses an adjusted MFFO \(“Adjusted MFFO”\) as an indicator of our ongoing performance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (Adjusted MFFO provides an adjustment to MFFO to exclude a reversal of accrued asset management fees, which management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (does not believe reflects the operating performance of our investments and does not provide an indication of future operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 650.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 650.10 Td (e believe that MFFO and ) Tj ET Q q 0 0 0 rg BT 182.57 650.10 Td (Adjusted MFFO are helpful measures of ongoing operating performance because they exclude ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (non-operating items included in FFO. ) Tj ET Q q 0 0 0 rg BT 204.76 638.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 254.67 638.10 Td (, we believe that MFFO and ) Tj ET Q q 0 0 0 rg BT 368.82 638.10 Td (Adjusted MFFO provide investors with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (supplemental performance information that is consistent with the performance indicators and analysis used by management, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (addition to net income and cash flows from operating activities as defined by GAAP) Tj ET Q q 0 0 0 rg BT 386.37 614.10 Td (, to evaluate the sustainability of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (operating performance. MFFO and ) Tj ET Q q 0 0 0 rg BT 193.91 602.10 Td (Adjusted MFFO provide comparability in evaluating the operating performance of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (portfolio with other non-traded REIT) Tj ET Q q 0 0 0 rg BT 197.65 590.10 Td (s which typically have limited lives with short and defined acquisition periods and tar) Tj ET Q q 0 0 0 rg BT 539.90 590.10 Td (geted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (exit strategies. MFFO, or an equivalent measure, is routinely reported by non-traded REIT) Tj ET Q q 0 0 0 rg BT 413.15 578.10 Td (s, and we believe often used by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (analysts and investors for comparison purposes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 548.10 Td (FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 141.47 548.10 Td (Adjusted MFFO are non-GAAP) Tj ET Q q 0 0 0 rg BT 269.71 548.10 Td ( financial measures and do not represent net income as defined by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (GAAP) Tj ET Q q 0 0 0 rg BT 75.62 536.10 Td (. Net income as defined by GAAP) Tj ET Q q 0 0 0 rg BT 214.66 536.10 Td ( is the most relevant measure in determining our operating performance because FFO, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (MFFO and ) Tj ET Q q 0 0 0 rg BT 95.62 524.10 Td (Adjusted MFFO include adjustments that investors may deem subjective, such as adding back expenses such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (depreciation and amortization and the other items described above. ) Tj ET Q q 0 0 0 rg BT 321.90 512.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 371.24 512.10 Td (, FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 445.71 512.10 Td (Adjusted MFFO should not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (be considered as alternatives to net income as an indicator of our current and historical operating performance. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 118.97 488.10 Td (Adjusted MFFO do not represent cash flows from operating activities determined in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 552.38 488.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (and should not be considered an indication of our liquidity) Tj ET Q q 0 0 0 rg BT 282.97 476.10 Td (. ) Tj ET Q q 0 0 0 rg BT 290.29 476.10 Td (W) Tj ET Q q 0 0 0 rg BT 298.93 476.10 Td (e believe FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 406.71 476.10 Td (Adjusted MFFO, in addition to net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (income and cash flows from operations as defined by GAAP) Tj ET Q q 0 0 0 rg BT 291.39 464.10 Td (, are meaningful supplemental performance measures; however) Tj ET Q q 0 0 0 rg BT 544.50 464.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (neither FFO, MFFO nor ) Tj ET Q q 0 0 0 rg BT 148.12 452.10 Td (Adjusted MFFO reflects adjustments for the operations of properties sold or held for sale during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (periods presented. During periods of significant disposition activity) Tj ET Q q 0 0 0 rg BT 321.30 440.10 Td (, FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 395.77 440.10 Td (Adjusted MFFO are much more limited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (measures of future performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 410.10 Td (For the periods presented, MFFO adjustments consist of the exclusion of the amortization of a discount on a note payable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (and the exclusion of loss from the extinguishment of debt. ) Tj ET Q q 0 0 0 rg BT 287.05 398.10 Td (W) Tj ET Q q 0 0 0 rg BT 295.69 398.10 Td (e have excluded these items based on the following economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (considerations:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 368.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 368.10 Td (Amortization of a discount on a note payable. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.26 368.10 Td ( Discounts on debt are amortized over the term of the loan as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 356.10 Td (adjustment to interest expense. ) Tj ET Q q 0 0 0 rg BT 218.12 356.10 Td (This application results in interest expense recognition that is dif) Tj ET Q q 0 0 0 rg BT 476.49 356.10 Td (ferent than the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 344.10 Td (underlying contractual terms of the debt. ) Tj ET Q q 0 0 0 rg BT 257.54 344.10 Td (W) Tj ET Q q 0 0 0 rg BT 266.18 344.10 Td (e have excluded the amortization of a discount in our calculation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 332.10 Td (MFFO to more appropriately reflect the economic impact of our debt as the amortization of a discount has no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 320.10 Td (ongoing economic impact on our operations. ) Tj ET Q q 0 0 0 rg BT 273.67 320.10 Td (W) Tj ET Q q 0 0 0 rg BT 282.30 320.10 Td (e believe excluding this item provides investors with a useful ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 308.10 Td (supplemental metric that directly addresses core operating performance; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 293.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 293.10 Td (Loss fr) Tj ET Q q 0 0 0 rg BT 117.14 293.10 Td (om extinguishment of debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.40 293.10 Td (. ) Tj ET Q q 0 0 0 rg BT 226.85 293.10 Td (A) Tj ET Q q 0 0 0 rg BT 233.52 293.10 Td ( loss from extinguishment of debt, which includes prepayment fees related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 281.10 Td (extinguishment of debt, represents the dif) Tj ET Q q 0 0 0 rg BT 255.89 281.10 Td (ference between the carrying value of any consideration transferred to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 269.10 Td (lender in return for the extinguishment of a debt and the net carrying value of the debt at the time of settlement. ) Tj ET Q q 0 0 0 rg BT 537.72 269.10 Td (W) Tj ET Q q 0 0 0 rg BT 546.36 269.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 257.10 Td (have excluded the loss from extinguishment of debt in our calculation of MFFO because these losses do not impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 245.10 Td (the current operating performance of our investments and do not provide an indication of future operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 233.10 Td (performance. ) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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 90.50 730.60 Td (Management’) Tj ET Q q 0 0 0 rg BT 149.56 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 221.54 730.60 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 72.00 704.10 Td (Our calculation of FFO, which we believe is consistent with the calculation of FFO as defined by NAREIT) Tj ET Q q 0 0 0 rg BT 499.50 704.10 Td (, is presented in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (the following table, along with our calculation of MFFO and ) Tj ET Q q 0 0 0 rg BT 294.18 692.10 Td (Adjusted MFFO, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.90 692.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.89 692.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.33 692.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.54 692.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 680.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.20 680.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.20 680.10 Td (, respectively \(in thousands\). No conclusions or comparisons should be made from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (presentation of these periods. ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 616.60 225.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 616.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 616.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 616.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 616.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 616.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 616.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 616.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 588.60 225.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 588.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 588.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 588.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 588.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 560.60 225.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 560.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 560.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 560.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 560.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 560.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 560.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 560.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 532.60 225.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 532.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 532.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 532.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 532.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 532.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 532.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 532.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 504.60 225.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 504.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 504.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 504.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 504.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 504.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 504.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 504.60 68.00 -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 275 630.6 m 345 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 630.6 m 349 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 630.6 m 419 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 630.6 m 491 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 630.6 m 495 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 630.6 m 563 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 630.6 m 345 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 616.6 m 345 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 630.6 m 349 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 630.6 m 419 630.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 616.6 m 419 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 616.6 m 491 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 616.6 m 563 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 616.6 m 345 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 616.6 m 419 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 616.6 m 491 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 616.6 m 563 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 560.6 m 345 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 560.6 m 419 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 560.6 m 491 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 560.6 m 563 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 560.6 m 345 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 560.6 m 419 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 560.6 m 491 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 560.6 m 563 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 518.6 m 345 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 518.6 m 419 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 518.6 m 491 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 518.6 m 563 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 490.6 m 345 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 477.6 m 345 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 475.6 m 345 475.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 490.6 m 419 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 477.6 m 419 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 475.6 m 419 475.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 490.6 m 491 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 477.6 m 491 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 475.6 m 491 475.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 490.6 m 563 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 477.6 m 563 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 475.6 m 563 475.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.70 642.83 Td (For the Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.10 634.83 Td (September 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.75 642.83 Td (For the Nine Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.10 634.83 Td (September 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 301.50 620.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.50 620.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.50 620.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 620.83 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 606.85 Td (Net income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 277.50 606.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.80 606.85 Td (13,697) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.50 606.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.80 606.85 Td (5,040) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.50 606.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 606.85 Td (29,824) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.50 606.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 606.85 Td (5,102) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 592.85 Td (Depreciation of real estate assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.80 592.85 Td (2,620) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.80 592.85 Td (3,083) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 592.85 Td (8,381) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 592.85 Td (9,199) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 578.85 Td (Amortization of lease-related costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.80 578.85 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.80 578.85 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 578.85 Td (3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 578.85 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 564.85 Td (Gain on sale of real estate, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 317.10 564.85 Td (\(14,653) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.80 564.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 564.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.10 564.85 Td (\(31,123) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 564.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 564.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 550.85 Td (FFO) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.80 550.85 Td (1,665) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.80 550.85 Td (8,124) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 550.85 Td (7,085) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 550.85 Td (14,303) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 536.85 Td (Amortization of discount on note payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.80 536.85 Td (22) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 536.85 Td (22) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 536.85 Td (66) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 536.85 Td (65) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 522.85 Td (Loss from extinguishment of debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.80 522.85 Td (403) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 522.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 522.85 Td (671) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 522.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 508.85 Td (MFFO) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.80 508.85 Td (2,090) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.80 508.85 Td (8,146) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 508.85 Td (7,822) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 508.85 Td (14,368) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 494.85 Td (Reversal of accrued asset management fees) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 197.32 498.48 Td ( \(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.80 494.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 395.10 494.85 Td (\(4,752) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.80 494.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 494.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 494.85 Td (\(4,752) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 494.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 480.85 Td (Adjusted MFFO) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 277.50 480.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.80 480.85 Td (2,090) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.50 480.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.80 480.85 Td (3,394) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.50 480.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 480.85 Td (7,822) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.50 480.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 480.85 Td (9,616) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 465.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 456.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 452.50 Td ( Relates to reversal of previously deferred and accrued asset management fees of $1.5 million for the period from February 2013 through July 2013 and $3.3 ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 442.90 Td (million for the period from ) Tj ET Q q 0 0 0 rg BT 137.26 442.90 Td (August 2013 through December 2014 as we do not expect to pay these amounts to our advisor) Tj ET Q q 0 0 0 rg BT 438.54 442.90 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 418.90 Td (FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 141.47 418.90 Td (Adjusted MFFO may also be used to fund all or a portion of certain capitalizable items that are excluded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.90 Td (from FFO and 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 49.50 388.90 Td (Distributions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 370.90 Td (From time to time during our operational stage, we may not be able to pay distributions solely from our cash flows from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.90 Td (operations or FFO, in which case distributions may be paid in whole or in part from cash on hand, proceeds from asset sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.90 Td (and/or from proceeds from our dividend reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 291.47 346.90 Td (W) Tj ET Q q 0 0 0 rg BT 300.11 346.90 Td (e terminated our dividend reinvestment plan ef) Tj ET Q q 0 0 0 rg BT 487.09 346.90 Td (fective as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.90 Td (August 20, 2017. Distributions declared, distributions paid and cash flows from operations were as follows for the first, second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.90 Td (and third quarters of 2017 \(in thousands, except per share amounts\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 278.40 103.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 153.00 278.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 157.00 278.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 217.00 278.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 221.00 278.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 278.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 278.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 278.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 278.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 278.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 278.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 278.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 278.40 85.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 250.40 103.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 153.00 250.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 157.00 250.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 217.00 250.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 221.00 250.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 250.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 250.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 250.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 250.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 250.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 250.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 250.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 250.40 85.00 -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 285 292.4 m 345 292.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 292.4 m 349 292.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 292.4 m 409 292.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 292.4 m 413 292.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 292.4 m 473 292.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 278.4 m 153 278.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157 278.4 m 217 278.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 278.4 m 281 278.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 278.4 m 345 278.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 278.4 m 409 278.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 278.4 m 473 278.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 278.4 m 562 278.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157 278.4 m 217 278.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 278.4 m 281 278.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 278.4 m 345 278.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 278.4 m 409 278.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 278.4 m 473 278.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 278.4 m 562 278.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157 236.39999999999998 m 217 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 236.39999999999998 m 281 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 236.39999999999998 m 345 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 236.39999999999998 m 409 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 236.39999999999998 m 562 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157 236.39999999999998 m 217 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157 223.39999999999998 m 217 223.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 157 221.39999999999998 m 217 221.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 236.39999999999998 m 281 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 223.39999999999998 m 281 223.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 221.39999999999998 m 281 221.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 236.39999999999998 m 345 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 223.39999999999998 m 345 223.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 221.39999999999998 m 345 221.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 236.39999999999998 m 409 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 223.39999999999998 m 409 223.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349 221.39999999999998 m 409 221.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 236.39999999999998 m 473 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 223.39999999999998 m 473 223.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 221.39999999999998 m 473 221.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 236.39999999999998 m 562 236.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 223.39999999999998 m 562 223.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 221.39999999999998 m 562 221.39999999999998 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 89.65 282.63 Td (Period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 164.05 290.63 Td (Distributions ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 167.55 282.63 Td (Declar) Tj ET Q q 0 0 0 rg BT 190.06 282.63 Td (ed) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 198.06 286.26 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 229.60 298.48 Td (Distribution ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 228.30 290.48 Td (Declar) Tj ET Q q 0 0 0 rg BT 250.81 290.48 Td (ed Per) Tj ET Q q 0 0 0 rg BT 272.65 290.48 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 236.85 282.48 Td (Shar) Tj ET Q q 0 0 0 rg BT 253.15 282.48 Td (e) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 256.71 286.11 Td ( \(1\) ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.55 296.63 Td (Distributions Paid) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 406.01 300.26 Td ( \(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 489.95 290.63 Td (Cash Flows from) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.85 282.63 Td (Operations) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 305.80 282.63 Td (Cash) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.80 282.63 Td (Reinvested) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.75 282.63 Td (Total) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 268.65 Td (First Quarter 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 159.50 268.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 195.80 268.65 Td (3,346) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 223.50 268.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.80 268.65 Td (0.160) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 287.50 268.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.80 268.65 Td (1,983) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.50 268.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 387.80 268.65 Td (1,365) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.50 268.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.80 268.65 Td (3,348) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.50 268.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 268.65 Td (1,753) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 254.65 Td (Second Quarter 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 191.80 254.65 Td (22,807) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.80 254.65 Td (1.091) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.80 254.65 Td (22,184) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 254.65 Td (841) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 254.65 Td (23,025) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 254.65 Td (3,995) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 240.65 Td (Third Quarter 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 195.80 240.65 Td (2,875) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.80 240.65 Td (0.137) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.80 240.65 Td (2,124) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 240.65 Td (747) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.80 240.65 Td (2,871) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 240.65 Td (1,187) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 159.50 226.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 191.80 226.65 Td (29,028) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 223.50 226.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.80 226.65 Td (1.388) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 287.50 226.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.80 226.65 Td (26,291) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.50 226.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 387.80 226.65 Td (2,953) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.50 226.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 226.65 Td (29,244) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.50 226.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 226.65 Td (6,935) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.90 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 201.92 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 198.30 Td (Distributions declared per share of common stock were based on daily record dates for each day during the period commencing January 1, 2017 through ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 188.70 Td (February 28, 2017. For each day that was a record date for distributions during this period, distributions were calculated at a rate of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.60 188.70 Td ($0.00178082) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 515.60 188.70 Td ( per share per ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (day) Tj ET Q q 0 0 0 rg BT 60.53 179.10 Td (. For the month of March 2017 and for the period from May 2017 through September 2017, the Company’) Tj ET Q q 0 0 0 rg BT 402.91 179.10 Td (s board of directors declared monthly ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 169.50 Td (distributions based on a monthly record date. ) Tj ET Q q 0 0 0 rg BT 197.25 169.50 Td (Additionally) Tj ET Q q 0 0 0 rg BT 237.17 169.50 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 286.28 169.50 Td (s board of directors declared a special distribution in the amount ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.99 169.50 Td ($1.00) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.99 169.50 Td ( per share of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 159.90 Td (common stock to stockholders of record as of the close of business on ) Tj ET Q q 0 0 0 rg BT 275.01 159.90 Td (April 20, 2017. Distributions declared per share of common stock assumes each share ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 150.30 Td (was issued and outstanding each day that was a record date for distributions during the period presented. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 141.33 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 137.70 Td ( Other than special distributions, distributions were paid on a monthly basis. In general, distributions for all record dates of a given month are paid on or ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (about the first business day of the following month) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 212.59 128.10 Td (.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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 90.50 730.60 Td (Management’) Tj ET Q q 0 0 0 rg BT 149.56 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 221.54 730.60 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 /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.11 704.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.33 704.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.15 704.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.41 704.10 Td (, we paid aggregate distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.99 704.10 Td ($29.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.88 704.10 Td (, including $26.3 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (of distributions paid in cash and $2.9 million of distributions reinvested through our dividend reinvestment plan. FFO for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.72 680.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.54 680.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.81 680.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.36 680.10 Td ($7.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.25 680.10 Td ( and cash flows from operations was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.82 680.10 Td ($6.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.71 680.10 Td (. ) Tj ET Q q 0 0 0 rg BT 482.03 680.10 Td (W) Tj ET Q q 0 0 0 rg BT 490.67 680.10 Td (e funded our total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (distributions paid, which includes net cash distributions and distributions reinvested by stockholders, with $20.9 million from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (the proceeds from the sale of ) Tj ET Q q 0 0 0 rg BT 167.61 656.10 Td (W) Tj ET Q q 0 0 0 rg BT 176.24 656.10 Td (esley ) Tj ET Q q 0 0 0 rg BT 199.11 656.10 Td (V) Tj ET Q q 0 0 0 rg BT 205.73 656.10 Td (illage and $8.3 million of cash flows from operations and cash on hand. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (purposes of determining the source of our distributions paid, we assume first that we use cash flows from operations from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (relevant periods to fund distribution payments. ) Tj ET Q q 0 0 0 rg BT 241.14 632.10 Td (All non-operating expenses \(including general and administrative expenses to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (the extent not covered by cash flows from operations\), debt service and other obligations are assumed to be paid from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (dividend reinvestment plan as permitted by our of) Tj ET Q q 0 0 0 rg BT 248.99 608.10 Td (fering documents and loan agreements. See the reconciliation of FFO to net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (income above. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 578.10 Td (As described in the Proxy Statement, subsequent to our payment of the September 2017 monthly distribution, we ceased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (paying regular monthly distributions. ) Tj ET Q q 0 0 0 rg BT 203.19 566.10 Td (W) Tj ET Q q 0 0 0 rg BT 211.83 566.10 Td (e do not expect to pay regular monthly distributions. However) Tj ET Q q 0 0 0 rg BT 462.76 566.10 Td (, if the Plan of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (Liquidation is not approved by our stockholders, we intend to pursue a longer) Tj ET Q q 0 0 0 rg BT 360.07 554.10 Td (-term business plan for the Core-Portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (Properties and sell our remaining properties. ) Tj ET Q q 0 0 0 rg BT 232.05 542.10 Td (W) Tj ET Q q 0 0 0 rg BT 240.69 542.10 Td (e would likely distribute a portion of the net proceeds from such property sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (to our stockholders. ) Tj ET Q q 0 0 0 rg BT 133.47 530.10 Td (W) Tj ET Q q 0 0 0 rg BT 142.11 530.10 Td (e may begin paying regular monthly distributions again, but such distributions likely would be at an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (amount less than our previous regular monthly distributions, as would be appropriate for our smaller size. ) Tj ET Q q 0 0 0 rg BT 476.73 518.10 Td (W) Tj ET Q q 0 0 0 rg BT 485.36 518.10 Td (e can give no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (assurance, however) Tj ET Q q 0 0 0 rg BT 127.40 506.10 Td (, that these expectations would be realized.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 488.10 Td (From inception through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.49 488.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.75 488.10 Td (, we paid aggregate distributions of $86.0 million, and our cumulative net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (income for the same period was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.46 476.10 Td ($10.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.35 476.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 458.10 Td (In addition, our operating performance cannot be accurately predicted and may deteriorate in the future due to numerous ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (factors, including those discussed under “Forward - Looking Statements,” “Market Outlook — MultiFamily Real Estate and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (Finance Markets,” “Liquidity and Capital Resources” and “Results of Operations” herein, the risks discussed in Part II, Item 1A) Tj ET Q q 0 0 0 rg BT 561.32 434.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (“Risk Factors” herein, the risks in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 246.96 422.10 Td ( of our ) Tj ET Q q 0 0 0 rg BT 275.57 422.10 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 471.91 422.10 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.49 422.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (as filed with the SEC on March 10, 2017, and in the Proxy Statement. ) Tj ET Q q 0 0 0 rg BT 333.72 410.10 Td (Those factors include: the future operating performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (of our investments in the existing real estate and financial environment, our ability to refinance existing indebtedness at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (comparable terms and our ability to successfully dispose of some of our assets pursuant to our execution of our strategic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (alternatives. In the event our FFO and/or cash flows from operations decrease further in the future as a result of the disposition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (of additional real estate investments, the level of our distributions may also decrease. In addition, future distributions declared ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (and paid may exceed FFO and/or cash flows from operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (Critical ) Tj ET Q q 0 0 0 rg BT 84.21 332.10 Td (Accounting Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 314.10 Td (Our consolidated interim financial statements and condensed notes thereto have been prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 557.29 314.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (and in conjunction with the rules and regulations of the SEC. ) Tj ET Q q 0 0 0 rg BT 298.44 302.10 Td (The preparation of our financial statements requires significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (management judgments, assumptions and estimates about matters that are inherently uncertain. ) Tj ET Q q 0 0 0 rg BT 434.77 290.10 Td (These judgments af) Tj ET Q q 0 0 0 rg BT 512.90 290.10 Td (fect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities as of the dates of the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (statements and the reported amounts of revenue and expenses during the reporting periods. ) Tj ET Q q 0 0 0 rg BT 417.82 266.10 Td (W) Tj ET Q q 0 0 0 rg BT 426.86 266.10 Td (ith dif) Tj ET Q q 0 0 0 rg BT 450.84 266.10 Td (ferent estimates or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (assumptions, materially dif) Tj ET Q q 0 0 0 rg BT 157.91 254.10 Td (ferent amounts could be reported in our financial statements. ) Tj ET Q q 0 0 0 rg BT 405.33 254.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 455.24 254.10 Td (, other companies may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (utilize dif) Tj ET Q q 0 0 0 rg BT 87.92 242.10 Td (ferent estimates that may impact the comparability of our results of operations to those of companies in similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (businesses. ) Tj ET Q q 0 0 0 rg BT 98.67 230.10 Td (A) Tj ET Q q 0 0 0 rg BT 105.34 230.10 Td ( discussion of the accounting policies that management considers critical in that they involve significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (management judgments, assumptions and estimates is included in our ) Tj ET Q q 0 0 0 rg BT 330.01 218.10 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 49.50 206.10 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 206.10 Td ( filed with the SEC. ) Tj ET Q q 0 0 0 rg BT 212.06 206.10 Td (There have been no significant changes to our policies during 2017. ) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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 90.50 730.60 Td (Management’) Tj ET Q q 0 0 0 rg BT 149.56 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 221.54 730.60 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 /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Subsequent Events) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 686.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 686.25 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 49.50 668.25 Td (Distributions Paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 653.25 Td (On October 2, 2017, we paid distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.64 653.25 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.53 653.25 Td (, which related to distributions declared for September 2017 in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td (the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.54 641.25 Td ($0.04460959) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 641.25 Td ( per share of common stock to stockholders of record as of the close of business on September 20, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (2017. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 611.25 Td (Dispositions Subsequent to September 30, 2017) 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 72 594.9169921875 m 235.7939453125 594.9169921875 l s q 0 0 0 rg BT 72.00 596.25 Td (Disposition of Legacy Grand at Concor) Tj ET Q q 0 0 0 rg BT 230.79 596.25 Td (d) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 581.25 Td (On February 18, 2014, we, through an indirect wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 360.47 581.25 Td (, purchased a 240-unit apartment complex ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.25 Td (\(“Legacy Grand at Concord”\) on approximately 18.4 acres of land located in Concord, North Carolina. On October 30, 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.25 Td (we completed the sale of Legacy Grand at Concord to an unaf) Tj ET Q q 0 0 0 rg BT 297.28 557.25 Td (filiated buyer for $32.9 million, net of closing costs and fees. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.25 Td (connection with the disposition of Legacy Grand at Concord, we repaid the entire $22.1 million principal balance and all other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.25 Td (sums due under the mortgage loan secured by Legacy Grand at Concord, including a prepayment fee of $0.9 million.) 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 72 513.9169921875 m 251.8095703125 513.9169921875 l s q 0 0 0 rg BT 72.00 515.25 Td (Disposition of Millennium ) Tj ET Q q 0 0 0 rg BT 179.32 515.25 Td (Apartment Homes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 500.25 Td (On June 7, 2013, we, through an indirect wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 337.70 500.25 Td (, purchased a 305-unit apartment complex ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (\(“Millennium ) Tj ET Q q 0 0 0 rg BT 106.44 488.25 Td (Apartment Homes”\) on approximately 32.9 acres of land located in Greenville, South Carolina. On October 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.25 Td (2017, we completed the sale of Millennium ) Tj ET Q q 0 0 0 rg BT 225.57 476.25 Td (Apartment Homes to an unaf) Tj ET Q q 0 0 0 rg BT 341.47 476.25 Td (filiated buyer for $35.6 million, net of closing costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.25 Td (and fees. In connection with the disposition of Millennium ) Tj ET Q q 0 0 0 rg BT 288.63 464.25 Td (Apartment Homes, we repaid the entire $19.8 million principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.25 Td (balance and all other sums due under the mortgage loan secured by Millennium ) Tj ET Q q 0 0 0 rg BT 369.69 452.25 Td (Apartment Homes, including a prepayment fee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.25 Td (of $0.2 million.) 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 72 420.9169921875 m 230.427734375 420.9169921875 l s q 0 0 0 rg BT 72.00 422.25 Td (Disposition of Legacy at Martin’) Tj ET Q q 0 0 0 rg BT 202.37 422.25 Td (s Point) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 407.25 Td (On May 31, 2012, we, through an indirect wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 342.70 407.25 Td (, purchased a 256-unit apartment complex \(“Legacy at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.25 Td (Martin’) Tj ET Q q 0 0 0 rg BT 79.50 395.25 Td (s Point”\) on approximately 13.2 acres of land located in the Chicago suburb of Lombard, Illinois. On October 31, 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.25 Td (we completed the sale of Legacy at Martin’) Tj ET Q q 0 0 0 rg BT 223.04 383.25 Td (s Point to an unaf) Tj ET Q q 0 0 0 rg BT 292.85 383.25 Td (filiated buyer for $37.6 million, net of closing costs and fees. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.25 Td (connection with the disposition of Legacy at Martin’) Tj ET Q q 0 0 0 rg BT 259.73 371.25 Td (s Point, we repaid the entire $21.5 million principal balance and all other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.25 Td (sums due under the mortgage loan secured by Legacy at Martin’) Tj ET Q q 0 0 0 rg BT 306.64 359.25 Td (s Point, including a prepayment fee of $0.5 million.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 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. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Quantitative and Qualitative Disclosur) Tj ET Q q 0 0 0 rg BT 255.60 730.60 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 (35) 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 maintain liquidity to fund the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (renovation and refinancing of our real estate investment portfolio and to fund our operations. Our profitability and the value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (our investment portfolio may be adversely af) Tj ET Q q 0 0 0 rg BT 229.27 680.10 Td (fected during any period as a result of interest rate changes. Our interest rate risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (management objectives are to limit the impact of interest rate changes on earnings, prepayment penalties and cash flows and to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (lower overall borrowing costs. ) Tj ET Q q 0 0 0 rg BT 176.51 656.10 Td (W) Tj ET Q q 0 0 0 rg BT 185.15 656.10 Td (e may manage interest rate risk by maintaining a ratio of fixed rate, long-term debt such that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (floating rate exposure is kept at an acceptable level. In addition, we may utilize a variety of financial instruments, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (interest rate caps, floors, and swap agreements, in order to limit the ef) Tj ET Q q 0 0 0 rg BT 328.39 632.10 Td (fects of changes in interest rates on our operations. If we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (use these types of derivatives to hedge the risk of interest-earning assets or interest-bearing liabilities, we may be subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (certain risks, including the risk that losses on a hedge position will reduce the funds available for the payment of distributions to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (our 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 72.00 578.10 Td (Interest rate fluctuations will generally not af) Tj ET Q q 0 0 0 rg BT 252.31 578.10 Td (fect our future earnings or cash flows related to our fixed rate debt unless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (such instruments mature or are otherwise terminated. However) Tj ET Q q 0 0 0 rg BT 303.18 566.10 Td (, interest rate changes will af) Tj ET Q q 0 0 0 rg BT 417.95 566.10 Td (fect the fair value of our fixed rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (instruments. ) Tj ET Q q 0 0 0 rg BT 103.11 554.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.56 554.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.82 554.10 Td (, the fair value estimate of our fixed rate debt was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.85 554.10 Td ($217.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.74 554.10 Td ( and the outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (principal balance of our fixed rate debt was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.54 542.10 Td ($214.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.43 542.10 Td (. ) Tj ET Q q 0 0 0 rg BT 291.75 542.10 Td (The fair value estimate of our fixed rate debt was estimated using a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (discounted cash flow analysis utilizing rates we would expect to pay for debt of a similar type and remaining maturity if the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (loans were originated as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.74 518.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.00 518.10 Td (. ) Tj ET Q q 0 0 0 rg BT 247.32 518.10 Td (W) Tj ET Q q 0 0 0 rg BT 256.36 518.10 Td (ith respect to our fixed rate instruments, we do not expect that fluctuations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (in interest rates, and the resulting change in fair value of our fixed rate instruments, would have a significant impact on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (ongoing operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 476.10 Td (Conversely) Tj ET Q q 0 0 0 rg BT 116.90 476.10 Td (, to the extent we have any variable rate debt, movements in interest rates on variable rate debt would change ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (our future earnings and cash flows, but generally not significantly af) Tj ET Q q 0 0 0 rg BT 322.85 464.10 Td (fect the fair value of those instruments. However) Tj ET Q q 0 0 0 rg BT 520.44 464.10 Td (, changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (in required risk premiums would result in changes in the fair value of variable rate instruments. ) Tj ET Q q 0 0 0 rg BT 434.95 452.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.39 452.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.66 452.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (did not have any variable rate debt outstanding.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 422.10 Td (The weighted-average interest rate of our fixed rate debt as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.60 422.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.87 422.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.42 422.10 Td (3.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.25 422.10 Td (. ) Tj ET Q q 0 0 0 rg BT 450.57 422.10 Td (The weighted-average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (interest rate represents the actual interest rate in ef) Tj ET Q q 0 0 0 rg BT 250.33 410.10 Td (fect as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.48 410.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.74 410.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 392.10 Td (For a discussion of the interest rate risks related to the current capital and credit markets, see the risks discussed in Part I, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (Item 1A) Tj ET Q q 0 0 0 rg BT 82.00 380.10 Td ( of our ) Tj ET Q q 0 0 0 rg BT 110.60 380.10 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 306.94 380.10 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.53 380.10 Td (, as filed with the SEC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 356.10 Td (Item 4. ) Tj ET Q q 0 0 0 rg BT 90.50 356.10 Td (Contr) Tj ET Q q 0 0 0 rg BT 115.87 356.10 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 159.03 356.10 Td (ocedur) Tj ET Q q 0 0 0 rg BT 188.29 356.10 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (Disclosur) Tj ET Q q 0 0 0 rg BT 89.82 338.10 Td (e Contr) Tj ET Q q 0 0 0 rg BT 122.13 338.10 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 165.29 338.10 Td (ocedur) Tj ET Q q 0 0 0 rg BT 194.55 338.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 320.10 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 473.86 320.10 Td (ficer and principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 308.10 Td (financial of) Tj ET Q q 0 0 0 rg BT 95.63 308.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 113.54 308.10 Td (, evaluated the ef) Tj ET Q q 0 0 0 rg BT 181.66 308.10 Td (fectiveness of the design and operation of our disclosure controls and procedures. Based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 296.10 Td (upon, and as of the date of, the evaluation, our principal executive of) Tj ET Q q 0 0 0 rg BT 325.00 296.10 Td (ficer and principal financial of) Tj ET Q q 0 0 0 rg BT 446.43 296.10 Td (ficer concluded that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 284.10 Td (disclosure controls and procedures were ef) Tj ET Q q 0 0 0 rg BT 220.59 284.10 Td (fective as of the end of the period covered by this report to ensure that information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 272.10 Td (required to be disclosed in the reports we file and submit under the Exchange ) Tj ET Q q 0 0 0 rg BT 361.02 272.10 Td (Act is recorded, processed, summarized and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 260.10 Td (reported as and when required. Disclosure controls and procedures include, without limitation, controls and procedures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 248.10 Td (designed to ensure that 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 529.04 248.10 Td (Act is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 236.10 Td (accumulated and communicated to our management, including our principal executive of) Tj ET Q q 0 0 0 rg BT 406.64 236.10 Td (ficer and our principal financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 224.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 224.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 76.06 224.10 Td (, as appropriate to allow timely decisions regarding required disclosure.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 112.87 206.10 Td (ol Over) Tj ET Q q 0 0 0 rg BT 144.62 206.10 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 188.10 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 50.00 176.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.26 176.10 Td ( that have materially af) Tj ET Q q 0 0 0 rg BT 222.26 176.10 Td (fected, or are reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 409.21 176.10 Td (fect, our internal control over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 164.10 Td (financial reporting.) 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 ( II. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.26 748.60 Td (TION) 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 50.00 719.25 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 719.25 Td (Legal Pr) Tj ET Q q 0 0 0 rg BT 127.25 719.25 Td (oceedings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 701.25 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 677.25 Td (Item 1A. ) Tj ET Q q 0 0 0 rg BT 90.50 677.25 Td (Risk Factors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 659.25 Td (Please see the risks discussed below) Tj ET Q q 0 0 0 rg BT 216.54 659.25 Td (, in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 291.25 659.25 Td ( of our ) Tj ET Q q 0 0 0 rg BT 319.86 659.25 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 50.00 647.25 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 647.25 Td (, as filed with the SEC on March 10, 2017, and in the Proxy Statement.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 629.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 629.25 Td (e exhausted funds available for all redemptions for the remainder of 2017 in ) Tj ET Q q 0 0 0 rg BT 374.73 629.25 Td (August 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 614.25 Td (Because of limitations on the dollar value of shares that may be redeemed under our share redemption program as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.25 Td (described below) Tj ET Q q 0 0 0 rg BT 114.60 602.25 Td (, we exhausted funds available for all redemptions for the remainder of 2017 in January 2017 and funds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.25 Td (available for Special Redemptions for the remainder of 2017 in ) Tj ET Q q 0 0 0 rg BT 304.92 590.25 Td (August 2017. ) Tj ET Q q 0 0 0 rg BT 363.26 590.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.71 590.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.97 590.25 Td (, we had a total of $3.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.25 Td (million of outstanding and unfulfilled ordinary redemption and Special Redemptions requests. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.00 554.25 Td (Unr) Tj ET Q q 0 0 0 rg BT 107.04 554.25 Td (egister) Tj ET Q q 0 0 0 rg BT 135.18 554.25 Td (ed Sales of Equity Securities and Use of Pr) Tj ET Q q 0 0 0 rg BT 316.10 554.25 Td (oceeds) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 536.25 Td (a\) ) Tj ET Q q 0 0 0 rg BT 108.00 536.25 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 108.00 524.25 Td (the Securities ) Tj ET Q q 0 0 0 rg BT 164.10 524.25 Td (Act of 1933. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 506.25 Td (b\) ) Tj ET Q q 0 0 0 rg BT 108.00 506.25 Td (Not applicable. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 488.25 Td (c\) ) Tj ET Q q 0 0 0 rg BT 108.00 488.25 Td (W) Tj ET Q q 0 0 0 rg BT 116.64 488.25 Td (e have a share redemption program that may enable stockholders to sell their shares to us in limited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 476.25 Td (circumstances.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 458.25 Td (Pursuant to our share redemption program, there are several limitations on our ability to redeem shares:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 440.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 440.25 Td (Unless the shares are being redeemed in connection with a Special Redemption, we may not redeem shares until ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 428.25 Td (the stockholder has held his or her shares for one year) Tj ET Q q 0 0 0 rg BT 327.43 428.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 413.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 413.25 Td (During any calendar year) Tj ET Q q 0 0 0 rg BT 213.44 413.25 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 112.50 401.25 Td (outstanding during the prior calendar year) Tj ET Q q 0 0 0 rg BT 279.95 401.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 386.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 386.25 Td (W) Tj ET Q q 0 0 0 rg BT 121.14 386.25 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 112.50 374.25 Td (Maryland law) Tj ET Q q 0 0 0 rg BT 167.67 374.25 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 112.50 362.25 Td (solvency) Tj ET Q q 0 0 0 rg BT 147.40 362.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 347.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 347.25 Td (W) Tj ET Q q 0 0 0 rg BT 121.14 347.25 Td (e may redeem only the number of shares that we could purchase with the amount of the net proceeds from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 335.25 Td (sale of shares under our dividend reinvestment plan during the prior calendar year; provided that we may not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 323.25 Td (redeem more than $2.0 million of shares in the aggregate during any calendar year) Tj ET Q q 0 0 0 rg BT 441.82 323.25 Td (. Furthermore, during any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 311.25 Td (calendar year) Tj ET Q q 0 0 0 rg BT 165.67 311.25 Td (, once we have redeemed $1.5 million of shares under our share redemption program, including in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 299.25 Td (connection with Special Redemptions, the remaining $0.5 million of the $2.0 million annual redemption limit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 287.25 Td (shall be reserved exclusively for shares being redeemed in connection with a Special Redemption. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 275.25 Td (Notwithstanding anything contained in this paragraph to the contrary) Tj ET Q q 0 0 0 rg BT 387.90 275.25 Td (, we may increase or decrease the funding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 263.25 Td (available for the redemption of shares pursuant to our share redemption program upon ten business days’) Tj ET Q q 0 0 0 rg BT 531.92 263.25 Td ( notice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 251.25 Td (to our stockholders. ) Tj ET Q q 0 0 0 rg BT 196.47 251.25 Td (W) Tj ET Q q 0 0 0 rg BT 205.11 251.25 Td (e may provide this notice by including such information \(a\) in a Current Report on Form ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 239.25 Td (8-K or in our annual or quarterly reports, all publicly filed with the SEC or \(b\) in a separate mailing to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 227.25 Td (stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 206.25 Td (Because of limitations on the dollar value of shares that may be redeemed under our share redemption program, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 194.25 Td (exhausted the funds available for all redemptions for the remainder of 2017 in January 2017, and in ) Tj ET Q q 0 0 0 rg BT 489.88 194.25 Td (August 2017, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 182.25 Td (exhausted the funds available for Special Redemptions for the remainder of 2017. ) Tj ET Q q 0 0 0 rg BT 421.57 182.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.01 182.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.27 182.25 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 170.25 Td (a total of $3.6 million of outstanding and unfulfilled ordinary redemption and Special Redemptions requests.) 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 ( 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 90.50 730.60 Td (Unr) Tj ET Q q 0 0 0 rg BT 107.54 730.60 Td (egister) Tj ET Q q 0 0 0 rg BT 135.68 730.60 Td (ed Sales of Equity Securities and Use of Pr) Tj ET Q q 0 0 0 rg BT 316.60 730.60 Td (oceeds \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 704.10 Td (Pursuant to our share redemption program, redemptions made in connection with a Special Redemption are made at a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 692.10 Td (price per share equal to the most recent estimated value per share of our common stock as of the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 680.10 Td (redemption date. ) Tj ET Q q 0 0 0 rg BT 159.52 680.10 Td (The price at which we redeem all other shares eligible for redemption is as follows: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 662.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 662.10 Td (For those shares held by the redeeming stockholder for at least one year) Tj ET Q q 0 0 0 rg BT 399.23 662.10 Td (, 92.5% of our most recent estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 650.10 Td (value per share as of the applicable redemption date; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 635.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 635.10 Td (For those shares held by the redeeming stockholder for at least two years, 95.0% of our most recent estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 623.10 Td (value per share as of the applicable redemption date; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 608.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 608.10 Td (For those shares held by the redeeming stockholder for at least three years, 97.5% of our most recent estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 596.10 Td (value per share as of the applicable redemption date; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 581.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 581.10 Td (For those shares held by the redeeming stockholder for at least four years, 100% of our most recent estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 569.10 Td (value per share as of the applicable redemption date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 548.10 Td (If we cannot redeem all shares presented for redemption in any month because of the limitations on redemptions set ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 536.10 Td (forth in our share redemption program, then we will honor redemption requests on a pro rata basis, except that if a pro ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 524.10 Td (rata redemption would result in a stockholder owning less than the minimum purchase requirement described in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 512.10 Td (currently ef) Tj ET Q q 0 0 0 rg BT 136.18 512.10 Td (fective, or the most recently ef) Tj ET Q q 0 0 0 rg BT 258.17 512.10 Td (fective, registration statement as such registration statement has been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 500.10 Td (amended or supplemented, then we would redeem all of such stockholder) Tj ET Q q 0 0 0 rg BT 384.45 500.10 Td (’) Tj ET Q q 0 0 0 rg BT 387.23 500.10 Td (s shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 482.10 Td (Upon a transfer of shares, any pending redemption requests with respect to such transferred shares will be canceled as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 470.10 Td (of the date we accept the transfer) Tj ET Q q 0 0 0 rg BT 221.60 470.10 Td (. Stockholders wishing us to continue to consider a redemption request related to any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 458.10 Td (transferred shares must resubmit their redemption request.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 440.10 Td (On December 9, 2016, our board of directors approved an estimated value per share of our common stock of $9.35 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 428.10 Td (\(unaudited\) based on the estimated value of our assets less the estimated value of our liabilities divided by the number ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 416.10 Td (of shares outstanding, all as of September 30, 2016. For a full description of the assumptions and methodologies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 404.10 Td (used to value our assets and liabilities in connection with the calculation of the December 2016 estimated value per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 392.10 Td (share, see Part II, Item 5, “Market for Registrant’) Tj ET Q q 0 0 0 rg BT 286.32 392.10 Td (s Common Equity) Tj ET Q q 0 0 0 rg BT 358.45 392.10 Td (, Related Stockholder Matters and Issuer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 380.10 Td (Purchases of Equity Securities — Market Information” of our ) Tj ET Q q 0 0 0 rg BT 339.11 380.10 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 90.00 368.10 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.58 368.10 Td (, filed with the SEC on March 10, 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 350.10 Td (On ) Tj ET Q q 0 0 0 rg BT 104.17 350.10 Td (April 5, 2017, our board of directors approved an estimated value per share of our common stock of $8.35, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 338.10 Td (ef) Tj ET Q q 0 0 0 rg BT 97.59 338.10 Td (fective ) Tj ET Q q 0 0 0 rg BT 126.74 338.10 Td (April 20, 2017. ) Tj ET Q q 0 0 0 rg BT 190.17 338.10 Td (The estimated value per share is equal to the December 2016 estimated value per share of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 326.10 Td (the our common stock of $9.35, reduced for the impact of the Special Distribution. For a full description of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 314.10 Td (methodologies and assumptions used in the determination of the ) Tj ET Q q 0 0 0 rg BT 349.13 314.10 Td (April 2017 estimated value per share, see our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 302.10 Td (Current Report on Form 8-K, filed with the SEC on ) Tj ET Q q 0 0 0 rg BT 298.59 302.10 Td (April 1) Tj ET Q q 0 0 0 rg BT 326.83 302.10 Td (1, 2017. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 284.10 Td (Our board of directors may amend, suspend or terminate the program without stockholder approval upon 30 days’) Tj ET Q q 0 0 0 rg BT 545.53 284.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 272.10 Td (notice, provided that we may increase or decrease the funding available for the redemption of shares pursuant to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 260.10 Td (share redemption program upon ten business days’) Tj ET Q q 0 0 0 rg BT 292.54 260.10 Td ( notice to our stockholders. ) Tj ET Q q 0 0 0 rg BT 403.45 260.10 Td (W) Tj ET Q q 0 0 0 rg BT 412.09 260.10 Td (e may provide this notice by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 248.10 Td (including such information \(a\) in a Current Report on Form 8-K or in our annual or quarterly reports, all publicly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 236.10 Td (filed with the SEC or \(b\) in a separate mailing to our stockholders.) 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 ( 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 90.50 730.60 Td (Unr) Tj ET Q q 0 0 0 rg BT 107.54 730.60 Td (egister) Tj ET Q q 0 0 0 rg BT 135.68 730.60 Td (ed Sales of Equity Securities and Use of Pr) Tj ET Q q 0 0 0 rg BT 316.60 730.60 Td (oceeds \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 704.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.55 704.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.76 704.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.59 704.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.85 704.10 Td (, we funded redemptions under our share redemption program with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 692.10 Td (the net proceeds from our dividend reinvestment plan, which we terminated ef) Tj ET Q q 0 0 0 rg BT 403.05 692.10 Td (fective as of ) Tj ET Q q 0 0 0 rg BT 453.86 692.10 Td (August 20, 2017, and we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 680.10 Td (redeemed shares pursuant to our share redemption program as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 631.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 631.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 631.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 631.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 631.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 631.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 631.60 117.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 631.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 631.60 159.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 601.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 601.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 601.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 601.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 601.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 601.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 601.60 117.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 601.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 601.60 159.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 571.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 571.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 571.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 571.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 571.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 571.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 571.60 117.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 571.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 571.60 159.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 541.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 541.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 541.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 541.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 541.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 541.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 541.60 117.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 541.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 541.60 159.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 511.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 511.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 511.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 511.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 511.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.50 511.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.50 511.60 117.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 511.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 511.60 159.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 631.6 m 156.5 631.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 631.6 m 220.5 631.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224.5 631.6 m 278.5 631.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 631.6 m 399.5 631.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399.5 631.6 m 403.5 631.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 631.6 m 562.5 631.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 631.6 m 399.5 631.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 496.6 m 220.5 496.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 482.6 m 220.5 482.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 480.6 m 220.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 496.6 m 399.5 496.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 482.6 m 399.5 482.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282.5 480.6 m 399.5 480.6 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 109.95 636.05 Td (Month) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 163.10 654.05 Td (T) Tj ET Q q 0 0 0 rg BT 168.28 654.05 Td (otal Number) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 172.20 645.05 Td (of Shar) Tj ET Q q 0 0 0 rg BT 200.29 645.05 Td (es) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 165.45 636.05 Td (Redeemed ) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 207.69 640.13 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 235.30 654.05 Td (A) Tj ET Q q 0 0 0 rg BT 241.13 654.05 Td (verage) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 231.10 645.05 Td (Price Paid) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 227.50 636.05 Td (Per) Tj ET Q q 0 0 0 rg BT 240.82 636.05 Td ( Shar) Tj ET Q q 0 0 0 rg BT 261.42 636.05 Td (e ) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 267.66 640.13 Td (\(2\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 294.70 654.05 Td (Total Number of Shares) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 293.55 645.05 Td (Purchased as Part of the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 286.40 636.05 Td (Share Redemption Program) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 412.95 654.05 Td (Appr) Tj ET Q q 0 0 0 rg BT 433.29 654.05 Td (oximate Dollar) Tj ET Q q 0 0 0 rg BT 490.36 654.05 Td ( ) Tj ET Q q 0 0 0 rg BT 492.45 654.05 Td (V) Tj ET Q q 0 0 0 rg BT 498.12 654.05 Td (alue of Shar) Tj ET Q q 0 0 0 rg BT 544.47 654.05 Td (es) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 409.95 645.05 Td (A) Tj ET Q q 0 0 0 rg BT 415.78 645.05 Td (vailable ) Tj ET Q q 0 0 0 rg BT 447.87 645.05 Td (That May ) Tj ET Q q 0 0 0 rg BT 488.04 645.05 Td (Y) Tj ET Q q 0 0 0 rg BT 493.54 645.05 Td (et Be Redeemed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 408.00 636.05 Td (Under) Tj ET Q q 0 0 0 rg BT 432.34 636.05 Td ( the Shar) Tj ET Q q 0 0 0 rg BT 467.18 636.05 Td (e Redemption Pr) Tj ET Q q 0 0 0 rg BT 532.00 636.05 Td (ogram) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 621.06 Td (January 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 187.75 621.06 Td (182,847) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 227.00 621.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 621.06 Td (9.33) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 366.75 621.06 Td (182,847) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 479.05 625.70 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 606.06 Td (February 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 196.75 606.06 Td (6,738) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 606.06 Td (9.35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.75 606.06 Td (6,738) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 479.05 610.70 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 591.06 Td (March 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 196.75 591.06 Td (3,207) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 591.06 Td (9.35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.75 591.06 Td (3,207) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 479.05 595.70 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 576.06 Td (April 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 203.50 576.06 Td (200) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 576.06 Td (8.35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.50 576.06 Td (200) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 479.05 580.70 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 561.06 Td (May 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 196.75 561.06 Td (8,198) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 561.06 Td (8.35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.75 561.06 Td (8,198) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 479.05 565.70 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 546.06 Td (June 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 192.25 546.06 Td (10,357) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 546.06 Td (8.35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 371.25 546.06 Td (10,357) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 479.05 550.70 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 531.06 Td (July 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 196.75 531.06 Td (4,016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 531.06 Td (8.35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.75 531.06 Td (4,016) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 479.05 535.70 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 516.06 Td (August 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 196.75 516.06 Td (1,339) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 259.25 516.06 Td (8.35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.75 516.06 Td (1,339) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 479.05 520.70 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 501.06 Td (September 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 208.00 501.06 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 266.00 501.06 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 387.00 501.06 Td (—) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 479.05 505.70 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 111.00 486.06 Td (Total) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 187.75 486.06 Td (216,902) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 366.75 486.06 Td (216,902) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 470.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 90.00 461.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.06 457.50 Td ( ) Tj ET Q q 0 0 0 rg BT 97.92 457.50 Td (W) Tj ET Q q 0 0 0 rg BT 104.83 457.50 Td (e announced the adoption and commencement of the program on March 12, 2010. ) Tj ET Q q 0 0 0 rg BT 371.27 457.50 Td (W) Tj ET Q q 0 0 0 rg BT 378.18 457.50 Td (e announced amendments to the program on January 18, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 447.90 Td (2013 \(which amendment became ef) Tj ET Q q 0 0 0 rg BT 204.03 447.90 Td (fective on February 17, 2013\), on February 26, 2013 \(which amendment became ef) Tj ET Q q 0 0 0 rg BT 470.25 447.90 Td (fective on March 28, 2013\), ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 438.30 Td (on January 28, 2014 \(which amendment became ef) Tj ET Q q 0 0 0 rg BT 252.91 438.30 Td (fective on February 27, 2014\) and on October 17, 2014 \(which amendment became ef) Tj ET Q q 0 0 0 rg BT 527.56 438.30 Td (fective on ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 428.70 Td (November 16, 2014\).) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 90.00 419.73 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.06 416.10 Td ( ) Tj ET Q q 0 0 0 rg BT 97.92 416.10 Td (The prices at which we redeem shares under our share redemption program are set forth above.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 90.00 407.13 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.06 403.50 Td ( ) Tj ET Q q 0 0 0 rg BT 97.92 403.50 Td (W) Tj ET Q q 0 0 0 rg BT 104.83 403.50 Td (e limit the dollar value of shares that may be redeemed under our share redemption program as described above. In January 2017, we ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 393.90 Td (exhausted the $1.5 million of funds available for all redemptions in 2017 and in ) Tj ET Q q 0 0 0 rg BT 346.61 393.90 Td (August 2017, we exhausted $0.5 million of funds available for ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 384.30 Td (Special Redemptions for 2017. ) Tj ET Q q 0 0 0 rg BT 192.65 384.30 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 212.21 384.30 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 276.42 384.30 Td (, we had a total of $3.6 million outstanding and unfulfilled ordinary redemption and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 374.70 Td (Special Redemptions requests, representing 444,284 shares. ) Tj ET Q q 0 0 0 rg BT 285.37 374.70 Td (W) Tj ET Q q 0 0 0 rg BT 292.28 374.70 Td (e recorded $1.5 million of redemptions payable in other liabilities on the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 365.10 Td (accompanying consolidated balance sheets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 341.10 Td (Item 3. ) Tj ET Q q 0 0 0 rg BT 90.50 341.10 Td (Defaults upon Senior) Tj ET Q q 0 0 0 rg BT 180.33 341.10 Td ( Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 323.10 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (Item 4. ) Tj ET Q q 0 0 0 rg BT 90.00 299.10 Td (Mine Safety Disclosur) Tj ET Q q 0 0 0 rg BT 183.70 299.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 281.10 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (Item 5. ) Tj ET Q q 0 0 0 rg BT 90.00 257.10 Td (Other) Tj ET Q q 0 0 0 rg BT 115.37 257.10 Td ( Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 239.10 Td (None.) 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 ( II. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 6. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Exhibits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (39) 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 563 697.5 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 10.00 Tf ET q 0 0 0 rg BT 107.50 701.07 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 (2.1) 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 111.5 682.7333984375 m 526.978515625 682.7333984375 l s q 0 0 1 rg BT 111.50 684.07 Td (Plan of Complete Liquidation and Dissolution, incorporated by reference to ) Tj ET Q q 0 0 1 rg BT 416.15 684.07 Td (Annex ) Tj ET Q q 0 0 1 rg BT 444.76 684.07 Td (A) Tj ET Q q 0 0 1 rg BT 451.43 684.07 Td ( to the Company’) Tj ET Q q 0 0 1 rg BT 520.59 684.07 Td (s ) 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 111.5 672.7333984375 m 398.3896484375 672.7333984375 l s q 0 0 1 rg BT 111.50 674.07 Td (Definitive Proxy Statement on Schedule 14A, filed September 22, 2017) 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 52.50 655.07 Td (3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 655.07 Td ( ) 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 111.5 653.7333984375 m 550.2548828125 653.7333984375 l s q 0 0 1 rg BT 111.50 655.07 Td (Articles of ) Tj ET Q q 0 0 1 rg BT 155.93 655.07 Td (Amendment and Restatement as adopted on January 8, 2010, incorporated by reference to Exhibit ) 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 111.5 643.7333984375 m 548.6826171875 643.7333984375 l s q 0 0 1 rg BT 111.50 645.07 Td (3.1 to Pre-Ef) Tj ET Q q 0 0 1 rg BT 162.70 645.07 Td (fective ) Tj ET Q q 0 0 1 rg BT 191.85 645.07 Td (Amendment No. 4 to the Company’) Tj ET Q q 0 0 1 rg BT 335.16 645.07 Td (s Registration Statement on Form S-1) Tj ET Q q 0 0 1 rg BT 485.62 645.07 Td (1, Commission ) 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 111.5 633.7333984375 m 289.5322265625 633.7333984375 l s q 0 0 1 rg BT 111.50 635.07 Td (File No. 333-161449, filed January 12, 2010) 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 52.50 617.07 Td (3.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 617.07 Td ( ) 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 111.5 615.7333984375 m 544.44921875 615.7333984375 l s q 0 0 1 rg BT 111.50 617.07 Td (Second ) Tj ET Q q 0 0 1 rg BT 142.89 617.07 Td (Amended and Restated Bylaws, incorporated by reference to Exhibit 3.1 to the Company’) Tj ET Q q 0 0 1 rg BT 502.23 617.07 Td (s Periodic ) 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 111.5 605.7333984375 m 298.970703125 605.7333984375 l s q 0 0 1 rg BT 111.50 607.07 Td (Report on Form 8-K, filed November 17, 2016) 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 52.50 588.07 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 588.07 Td ( ) 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 111.5 586.7333984375 m 555.240234375 586.7333984375 l s q 0 0 1 rg BT 111.50 588.07 Td (Statement regarding restrictions on transferability of shares of common stock \(to appear on stock certificate or ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 576.7333984375 m 554.25390625 576.7333984375 l s q 0 0 1 rg BT 111.50 578.07 Td (to be sent upon request and without char) Tj ET Q q 0 0 1 rg BT 273.22 578.07 Td (ge to stockholders issued shares without certificates\), incorporated by ) 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 111.5 566.7333984375 m 554 566.7333984375 l s q 0 0 1 rg BT 111.50 568.07 Td (reference to Exhibit 4.2 to Pre-Ef) Tj ET Q q 0 0 1 rg BT 244.60 568.07 Td (fective ) Tj ET Q q 0 0 1 rg BT 273.75 568.07 Td (Amendment No. 1 to the Company’) Tj ET Q q 0 0 1 rg BT 417.07 568.07 Td (s Registration Statement on Form ) 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 111.5 556.7333984375 m 362.2275390625 556.7333984375 l s q 0 0 1 rg BT 111.50 558.07 Td (S-1) Tj ET Q q 0 0 1 rg BT 125.02 558.07 Td (1, Commission File No. 333-161449, filed October 2, 2009) 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 52.50 539.07 Td (4.3) 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 111.5 537.7333984375 m 542.7841796875 537.7333984375 l s q 0 0 1 rg BT 111.50 539.07 Td (Fourth ) Tj ET Q q 0 0 1 rg BT 140.12 539.07 Td (Amended and Restated Dividend Reinvestment Plan, incorporated by reference to Exhibit 4.3 to the ) 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 111.5 527.7333984375 m 523.3505859375 527.7333984375 l s q 0 0 1 rg BT 111.50 529.07 Td (Company’) Tj ET Q q 0 0 1 rg BT 153.17 529.07 Td (s ) Tj ET Q q 0 0 1 rg BT 159.00 529.07 Td (Annual Report on Form 10-K for the year ended December 31, 2016, filed March 10, 2017) 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 52.50 510.07 Td (10.1) 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 111.5 508.7333984375 m 556.724609375 508.7333984375 l s q 0 0 1 rg BT 111.50 510.07 Td (Agreement for Purchase and Sale - Legacy at ) Tj ET Q q 0 0 1 rg BT 295.13 510.07 Td (V) Tj ET Q q 0 0 1 rg BT 301.24 510.07 Td (alley Ranch ) Tj ET Q q 0 0 1 rg BT 350.67 510.07 Td (Apartments, by and between KBS Legacy Partners ) 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 111.5 498.7333984375 m 521.9638671875 498.7333984375 l s q 0 0 1 rg BT 111.50 500.07 Td (Dakota Hill LLC and RREF III-P) Tj ET Q q 0 0 1 rg BT 245.28 500.07 Td ( Elite ) Tj ET Q q 0 0 1 rg BT 268.98 500.07 Td (V) Tj ET Q q 0 0 1 rg BT 275.09 500.07 Td (enture, LLC, made and entered into as of September 5, 2017, ) 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 111.5 488.7333984375 m 550.8408203125 488.7333984375 l s q 0 0 1 rg BT 111.50 490.07 Td (incorporated by reference to Exhibit 10.1 to the Company’) Tj ET Q q 0 0 1 rg BT 345.60 490.07 Td (s Periodic Report on Form 8-K, filed September 8, ) 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 111.5 478.7333984375 m 131.5 478.7333984375 l s q 0 0 1 rg BT 111.50 480.07 Td (2017) 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 52.50 461.07 Td (10.2) 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 111.5 459.7333984375 m 528.4384765625 459.7333984375 l s q 0 0 1 rg BT 111.50 461.07 Td (Agreement for Purchase and Sale - Crystal Park at ) Tj ET Q q 0 0 1 rg BT 315.42 461.07 Td (W) Tj ET Q q 0 0 1 rg BT 324.06 461.07 Td (aterford ) Tj ET Q q 0 0 1 rg BT 357.65 461.07 Td (Apartments, by and between KBS Legacy ) 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 111.5 449.7333984375 m 539.185546875 449.7333984375 l s q 0 0 1 rg BT 111.50 451.07 Td (Partners Crystal LLC and RREF III-P) Tj ET Q q 0 0 1 rg BT 262.50 451.07 Td ( Elite ) Tj ET Q q 0 0 1 rg BT 286.20 451.07 Td (V) Tj ET Q q 0 0 1 rg BT 292.32 451.07 Td (enture, LLC, made and entered into as of September 5, 2017, ) 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 111.5 439.7333984375 m 550.8408203125 439.7333984375 l s q 0 0 1 rg BT 111.50 441.07 Td (incorporated by reference to Exhibit 10.2 to the Company’) Tj ET Q q 0 0 1 rg BT 345.60 441.07 Td (s Periodic Report on Form 8-K, filed September 8, ) 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 111.5 429.7333984375 m 131.5 429.7333984375 l s q 0 0 1 rg BT 111.50 431.07 Td (2017) 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 52.50 412.07 Td (10.3) 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 111.5 410.7333984375 m 550.8212890625 410.7333984375 l s q 0 0 1 rg BT 111.50 412.07 Td (Agreement for Purchase and Sale - Lofts at the Highlands ) Tj ET Q q 0 0 1 rg BT 344.77 412.07 Td (Apartments, by and between KBS Legacy Partners ) 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 111.5 400.7333984375 m 561.6708984375 400.7333984375 l s q 0 0 1 rg BT 111.50 402.07 Td (Lofts LLC and RREF III-P) Tj ET Q q 0 0 1 rg BT 219.45 402.07 Td ( Elite ) Tj ET Q q 0 0 1 rg BT 243.16 402.07 Td (V) Tj ET Q q 0 0 1 rg BT 249.27 402.07 Td (enture, LLC, made and entered into as of September 5, 2017, incorporated by ) 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 111.5 390.7333984375 m 505.30859375 390.7333984375 l s q 0 0 1 rg BT 111.50 392.07 Td (reference to Exhibit 10.3 to the Company’) Tj ET Q q 0 0 1 rg BT 280.06 392.07 Td (s Periodic Report on Form 8-K, filed September 8, 2017) 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 52.50 373.07 Td (10.4) 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 111.5 371.7333984375 m 559.5322265625 371.7333984375 l s q 0 0 1 rg BT 111.50 373.07 Td (Agreement for Purchase and Sale - Residence at ) Tj ET Q q 0 0 1 rg BT 306.80 373.07 Td (W) Tj ET Q q 0 0 1 rg BT 315.44 373.07 Td (aterstone ) Tj ET Q q 0 0 1 rg BT 353.48 373.07 Td (Apartments, by and between KBS Legacy Partners ) 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 111.5 361.7333984375 m 514.4736328125 361.7333984375 l s q 0 0 1 rg BT 111.50 363.07 Td (Pikesville LLC and RREF III-P) Tj ET Q q 0 0 1 rg BT 237.79 363.07 Td ( Elite ) Tj ET Q q 0 0 1 rg BT 261.49 363.07 Td (V) Tj ET Q q 0 0 1 rg BT 267.60 363.07 Td (enture, LLC, made and entered into as of September 5, 2017, ) 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 111.5 351.7333984375 m 550.8408203125 351.7333984375 l s q 0 0 1 rg BT 111.50 353.07 Td (incorporated by reference to Exhibit 10.4 to the Company’) Tj ET Q q 0 0 1 rg BT 345.60 353.07 Td (s Periodic Report on Form 8-K, filed September 8, ) 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 111.5 341.7333984375 m 131.5 341.7333984375 l s q 0 0 1 rg BT 111.50 343.07 Td (2017) 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 52.50 324.07 Td (10.5) 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 111.5 322.7333984375 m 549.52734375 322.7333984375 l s q 0 0 1 rg BT 111.50 324.07 Td (First ) Tj ET Q q 0 0 1 rg BT 131.79 324.07 Td (Amendment to ) Tj ET Q q 0 0 1 rg BT 193.45 324.07 Td (Agreement for Purchase and Sale - Legacy at ) Tj ET Q q 0 0 1 rg BT 377.08 324.07 Td (V) Tj ET Q q 0 0 1 rg BT 383.19 324.07 Td (alley Ranch ) Tj ET Q q 0 0 1 rg BT 432.62 324.07 Td (Apartments, by and between ) 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 111.5 312.7333984375 m 528.6337890625 312.7333984375 l s q 0 0 1 rg BT 111.50 314.07 Td (KBS Legacy Partners Dakota Hill LLC and RREF III-P) Tj ET Q q 0 0 1 rg BT 334.42 314.07 Td ( Elite ) Tj ET Q q 0 0 1 rg BT 358.13 314.07 Td (V) Tj ET Q q 0 0 1 rg BT 364.24 314.07 Td (enture, LLC, dated as of October 2, 2017) 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 52.50 295.07 Td (10.6) 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 111.5 293.7333984375 m 556.509765625 293.7333984375 l s q 0 0 1 rg BT 111.50 295.07 Td (First ) Tj ET Q q 0 0 1 rg BT 131.79 295.07 Td (Amendment to ) Tj ET Q q 0 0 1 rg BT 193.45 295.07 Td (Agreement for Purchase and Sale - Crystal Park at ) Tj ET Q q 0 0 1 rg BT 397.37 295.07 Td (W) Tj ET Q q 0 0 1 rg BT 406.01 295.07 Td (aterford ) Tj ET Q q 0 0 1 rg BT 439.60 295.07 Td (Apartments, by and between ) 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 111.5 283.7333984375 m 510.5869140625 283.7333984375 l s q 0 0 1 rg BT 111.50 285.07 Td (KBS Legacy Partners Crystal LLC and RREF III-P) Tj ET Q q 0 0 1 rg BT 316.38 285.07 Td ( Elite ) Tj ET Q q 0 0 1 rg BT 340.08 285.07 Td (V) Tj ET Q q 0 0 1 rg BT 346.19 285.07 Td (enture, LLC, dated as of October 2, 2017) 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 52.50 266.07 Td (10.7) 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 111.5 264.7333984375 m 543.6240234375 264.7333984375 l s q 0 0 1 rg BT 111.50 266.07 Td (First ) Tj ET Q q 0 0 1 rg BT 131.79 266.07 Td (Amendment to ) Tj ET Q q 0 0 1 rg BT 193.45 266.07 Td (Agreement for Purchase and Sale - Lofts at the Highlands ) Tj ET Q q 0 0 1 rg BT 426.71 266.07 Td (Apartments, by and between ) 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 111.5 254.7333984375 m 502.80859375 254.7333984375 l s q 0 0 1 rg BT 111.50 256.07 Td (KBS Legacy Partners Lofts LLC and RREF III-P) Tj ET Q q 0 0 1 rg BT 308.60 256.07 Td ( Elite ) Tj ET Q q 0 0 1 rg BT 332.30 256.07 Td (V) Tj ET Q q 0 0 1 rg BT 338.41 256.07 Td (enture, LLC, dated as of October 2, 2017) 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 52.50 237.07 Td (10.8) 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 111.5 235.7333984375 m 552.3349609375 235.7333984375 l s q 0 0 1 rg BT 111.50 237.07 Td (First ) Tj ET Q q 0 0 1 rg BT 131.79 237.07 Td (Amendment to ) Tj ET Q q 0 0 1 rg BT 193.45 237.07 Td (Agreement for Purchase and Sale - Residence at ) Tj ET Q q 0 0 1 rg BT 388.75 237.07 Td (W) Tj ET Q q 0 0 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