%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 235.55 734.85 Td (UNITED ST) Tj ET Q q 0 0 0 rg BT 330.74 734.85 Td (A) Tj ET Q q 0 0 0 rg BT 342.41 734.85 Td (TES) Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 112.70 713.25 Td (SECURITIES ) Tj ET Q q 0 0 0 rg BT 225.25 713.25 Td (AND EXCHANGE COMMISSION) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 244.15 698.85 Td (W) Tj ET Q q 0 0 0 rg BT 255.49 698.85 Td (ashington, D.C. 20549) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 171.00 686.85 Td (______________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.85 Td () Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 257.25 653.25 Td (FORM 10-Q) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 171.00 635.25 Td (______________________________________________________) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 617.25 Td (\(Mark One\)) Tj ET Q /GS0 gs q 12.72 0 0 11.71 52.50 592.54 cm /I1 Do Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 82.50 596.12 Td (QUAR) Tj ET Q q 0 0 0 rg BT 117.41 596.12 Td (TERL) Tj ET Q q 0 0 0 rg BT 148.99 596.12 Td (Y) Tj ET Q q 0 0 0 rg BT 157.21 596.12 Td ( REPOR) Tj ET Q q 0 0 0 rg BT 201.79 596.12 Td (T) Tj ET Q q 0 0 0 rg BT 209.57 596.12 Td ( PURSUANT) Tj ET Q q 0 0 0 rg BT 277.69 596.12 Td ( ) Tj ET Q q 0 0 0 rg BT 280.48 596.12 Td (T) Tj ET Q q 0 0 0 rg BT 288.26 596.12 Td (O SECTION 13 OR 15\(d\) OF) Tj ET Q q 0 0 0 rg BT 439.50 596.12 Td ( ) Tj ET Q q 0 0 0 rg BT 442.28 596.12 Td (THE SECURITIES) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 82.50 584.12 Td (EXCHANGE ) Tj ET Q q 0 0 0 rg BT 154.18 584.12 Td (ACT) Tj ET Q q 0 0 0 rg BT 179.30 584.12 Td ( OF) Tj ET Q q 0 0 0 rg BT 198.52 584.12 Td ( 1934) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.35 562.25 Td (For) Tj ET Q q 0 0 0 rg BT 220.72 562.25 Td ( the quarterly period ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 340.43 562.25 Td (Mar) Tj ET Q q 0 0 0 rg BT 359.13 562.25 Td (ch31, 2018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 406.63 562.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.50 545.25 Td (OR) Tj ET Q /GS0 gs q 10.69 0 0 11.71 52.50 520.54 cm /I2 Do Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 82.50 524.12 Td (TRANSITION REPOR) Tj ET Q q 0 0 0 rg BT 203.10 524.12 Td (T) Tj ET Q q 0 0 0 rg BT 210.88 524.12 Td ( PURSUANT) Tj ET Q q 0 0 0 rg BT 279.01 524.12 Td ( ) Tj ET Q q 0 0 0 rg BT 281.79 524.12 Td (T) Tj ET Q q 0 0 0 rg BT 289.58 524.12 Td (O SECTION 13 OR 15\(d\) OF) Tj ET Q q 0 0 0 rg BT 440.81 524.12 Td ( ) Tj ET Q q 0 0 0 rg BT 443.60 524.12 Td (THE SECURITIES) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 82.50 512.12 Td (EXCHANGE ) Tj ET Q q 0 0 0 rg BT 154.18 512.12 Td (ACT) Tj ET Q q 0 0 0 rg BT 179.30 512.12 Td ( OF) Tj ET Q q 0 0 0 rg BT 198.52 512.12 Td ( 1934) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 219.80 490.25 Td (For) Tj ET Q q 0 0 0 rg BT 235.17 490.25 Td ( the transition period fr) Tj ET Q q 0 0 0 rg BT 335.53 490.25 Td (om ) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 351.3625 488.68505859375 m 381.3625 488.68505859375 l s q 0 0 0 rg BT 351.36 490.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.36 490.25 Td ( to ) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 394.692578125 488.68505859375 m 424.692578125 488.68505859375 l s q 0 0 0 rg BT 394.69 490.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 228.15 473.25 Td (Commission file number) Tj ET Q q 0 0 0 rg BT 332.97 473.25 Td ( 333-207471) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 171.00 461.25 Td (______________________________________________________) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 49.50 454.05 Td () Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 146.35 432.45 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 419.05 432.45 Td (, INC.) 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Employer) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.70 364.20 Td (Identification No.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 96.45 350.63 Td (800 Newport Center) Tj ET Q q 0 0 0 rg BT 182.91 350.63 Td ( Drive, Suite 700) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 117.60 340.63 Td (Newport Beach, California) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.00 340.20 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.00 340.63 Td (92660) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 109.75 327.20 Td (\(Address of Principal Executive Of) Tj ET Q q 0 0 0 rg BT 222.53 327.20 Td (fices\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.00 327.20 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 422.80 327.20 Td (\(Zip Code\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.75 311.45 Td (\(949\) 417-6500) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 211.90 301.85 Td (\(Registrant) Tj ET Q q 0 0 0 rg BT 252.92 301.85 Td (s ) Tj ET Q q 0 0 0 rg BT 257.89 301.85 Td (T) Tj ET Q q 0 0 0 rg BT 262.49 301.85 Td (elephone Number) Tj ET Q q 0 0 0 rg BT 322.42 301.85 Td (, Including ) Tj ET Q q 0 0 0 rg BT 360.89 301.85 Td (Ar) Tj ET Q q 0 0 0 rg BT 370.07 301.85 Td (ea Code\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 73.50 287.25 Td (Indicate by check mark whether the registrant: \(1\)has filed all reports required to be filed by Section13 or 15\(d\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 523.34 287.25 Td (Act of 1934 ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 277.65 Td (during the preceding 12months \(or for such shorter period that the registrant was required to file such reports\), and \(2\)has been subject to such filing ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 268.05 Td (requirements for the past 90days.) 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See the definitions of lar) Tj ET Q q 0 0 0 rg BT 221.09 202.05 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 281.61 202.05 Td (, accelerated filer) Tj ET Q q 0 0 0 rg BT 343.68 202.05 Td (, smaller reporting company and emer) Tj ET Q q 0 0 0 rg BT 479.47 202.05 Td (ging growth company in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 192.45 Td (Rule12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 140.81 192.45 Td (Act. \(Check one\):) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 171.20 Td (Lar) Tj ET Q q 0 0 0 rg BT 63.53 171.20 Td (ge) Tj ET Q q 0 0 0 rg BT 72.79 171.20 Td (AcceleratedFiler) Tj ET Q /GS0 gs q 7.13 0 0 7.81 162.50 169.49 cm /I8 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.50 171.20 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.50 171.20 Td (AcceleratedFiler) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.50 171.20 Td () Tj ET Q /GS0 gs q 7.13 0 0 7.81 547.50 169.49 cm /I9 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 154.20 Td (Non-Accelerated ) Tj ET Q q 0 0 0 rg BT 109.13 154.20 Td (Filer) Tj ET Q /GS0 gs q 7.13 0 0 7.81 162.50 152.49 cm /I10 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 179.50 154.20 Td (\(Do ) Tj ET Q q 0 0 0 rg BT 193.94 154.20 Td (not ) Tj ET Q q 0 0 0 rg BT 206.16 154.20 Td (check ) Tj ET Q q 0 0 0 rg BT 226.82 154.20 Td (if ) Tj ET Q q 0 0 0 rg BT 233.70 154.20 Td (a ) Tj ET Q q 0 0 0 rg BT 239.25 154.20 Td (smaller ) Tj ET Q q 0 0 0 rg BT 264.80 154.20 Td (reporting ) Tj ET Q q 0 0 0 rg BT 296.13 154.20 Td (company\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.50 154.20 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.50 154.20 Td (Smallerreportingcompany) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.50 154.20 Td () Tj ET Q /GS0 gs q 8.48 0 0 8.81 547.50 152.49 cm /I11 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.50 137.20 Td (Emer) Tj ET Q q 0 0 0 rg BT 432.68 137.20 Td (ging ) Tj ET Q q 0 0 0 rg BT 448.90 137.20 Td (growth ) Tj ET Q q 0 0 0 rg BT 473.57 137.20 Td (company) Tj ET Q /GS0 gs q 8.48 0 0 8.81 547.50 135.49 cm /I12 Do Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 72.00 117.85 Td (If an emer) Tj ET Q q 0 0 0 rg BT 104.72 117.85 Td (ging growth company) Tj ET Q q 0 0 0 rg BT 174.41 117.85 Td (, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 108.25 Td (new or revised financial accounting standards provided pursuant to Section 13\(a\) of the Exchange ) Tj ET Q q 0 0 0 rg BT 364.51 108.25 Td (Act.) Tj ET Q /GS0 gs q 8.48 0 0 8.27 386.06 106.52 cm /I13 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 89.65 Td (Indicate by check mark whether the registrant is a shell company \(as defined in Rule 12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 396.27 89.65 Td (Act\).) Tj ET Q q 0 0 0 rg BT 420.19 89.65 Td (Y) Tj ET Q q 0 0 0 rg BT 425.16 89.65 Td (es) Tj ET Q /GS0 gs q 7.13 0 0 8.27 435.83 87.92 cm /I14 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 442.96 89.65 Td (No) Tj ET Q /GS0 gs q 8.48 0 0 8.27 464.73 87.92 cm /I15 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 71.05 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.05 71.05 Td (May 4, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 109.72 71.05 Td (, there were ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 149.25 71.05 Td (9,062,672) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 181.25 71.05 Td ( outstanding shares of Class ) Tj ET Q q 0 0 0 rg BT 272.13 71.05 Td (A) Tj ET Q q 0 0 0 rg BT 277.47 71.05 Td (common stock and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.90 71.05 Td (286,698) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.90 71.05 Td ( outstanding shares of Class ) Tj ET Q q 0 0 0 rg BT 459.08 71.05 Td (T) Tj ET Q q 0 0 0 rg BT 463.82 71.05 Td ( common stock of KBS ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 61.45 Td (Growth & Income REIT) Tj ET Q q 0 0 0 rg BT 127.33 61.45 Td (,Inc.) 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Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 142.5 611.1833984375 m 226.09375 611.1833984375 l s q 0 0 1 rg BT 142.50 612.52 Td (Financial Statements) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 142.5 596.1833984375 m 492.958984375 596.1833984375 l s q 0 0 1 rg BT 142.50 597.52 Td (Consolidated Balance Sheets as of March 31, 2018 \(unaudited\) and December31,2017) 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 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 142.5 581.1833984375 m 509.1748046875 581.1833984375 l s q 0 0 1 rg BT 142.50 582.52 Td (Consolidated Statements of Operations \(unaudited\) for the ) Tj ET Q q 0 0 1 rg BT 378.65 582.52 Td (Three Months Ended March 31, ) 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 142.5 571.1833984375 m 201.9384765625 571.1833984375 l s q 0 0 1 rg BT 142.50 572.52 Td (2018 and 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 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 142.5 556.1833984375 m 516.9580078125 556.1833984375 l s q 0 0 1 rg BT 142.50 557.52 Td (Consolidated Statements of Stockholders) Tj ET Q q 0 0 1 rg BT 309.79 557.52 Td ( Equity for the ) Tj ET Q q 0 0 1 rg BT 369.96 557.52 Td (Y) Tj ET Q q 0 0 1 rg BT 376.18 557.52 Td (ear Ended December 31, 2017 and ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 142.5 546.1833984375 m 356.15234375 546.1833984375 l s q 0 0 1 rg BT 142.50 547.52 Td (the ) Tj ET Q q 0 0 1 rg BT 157.04 547.52 Td (Three Months Ended March 31, 2018 \(unaudited\)) 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 142.5 531.1833984375 m 512.2509765625 531.1833984375 l s q 0 0 1 rg BT 142.50 532.52 Td (Consolidated Statements of Cash Flows \(unaudited\) for the ) Tj ET Q q 0 0 1 rg BT 381.73 532.52 Td (Three Months Ended March 31, ) 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 142.5 521.1833984375 m 201.9384765625 521.1833984375 l s q 0 0 1 rg BT 142.50 522.52 Td (2018 and 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 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 142.5 506.1833984375 m 500.7666015625 506.1833984375 l s q 0 0 1 rg BT 142.50 507.52 Td (Condensed Notes to Consolidated Financial Statements as of March 31, 2018 \(unaudited\)) 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 97.50 492.52 Td (Item 2.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 142.5 491.1833984375 m 500.791015625 491.1833984375 l s q 0 0 1 rg BT 142.50 492.52 Td (Management) Tj ET Q q 0 0 1 rg BT 197.48 492.52 Td (s Discussion and ) Tj ET Q q 0 0 1 rg BT 266.65 492.52 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 477.52 Td (Item 3.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 142.5 476.1833984375 m 381.8896484375 476.1833984375 l s q 0 0 1 rg BT 142.50 477.52 Td (Quantitative and Qualitative Disclosures about Market Risk) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 462.52 Td (Item 4.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 142.5 461.1833984375 m 240.8154296875 461.1833984375 l s q 0 0 1 rg BT 142.50 462.52 Td (Controls and Procedures) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 447.52 Td (P) Tj ET Q q 0 0 0 rg BT 57.60 447.52 Td (AR) Tj ET Q q 0 0 0 rg BT 70.73 447.52 Td (T) Tj ET Q q 0 0 0 rg BT 76.45 447.52 Td (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 97.5 446.1833984375 m 202.2216796875 446.1833984375 l s q 0 0 1 rg BT 97.50 447.52 Td (OTHER INFORMA) Tj ET Q q 0 0 1 rg BT 178.34 447.52 Td (TION) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 432.52 Td (Item 1.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 142.5 431.1833984375 m 216.640625 431.1833984375 l s q 0 0 1 rg BT 142.50 432.52 Td (Legal Proceedings) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 417.52 Td (Item1A.) 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 142.5 416.1833984375 m 192.7783203125 416.1833984375 l s q 0 0 1 rg BT 142.50 417.52 Td (Risk Factors) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 402.52 Td (Item 2.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 142.5 401.1833984375 m 384.1015625 401.1833984375 l s q 0 0 1 rg BT 142.50 402.52 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 97.50 387.52 Td (Item 3.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 142.5 386.1833984375 m 269.4189453125 386.1833984375 l s q 0 0 1 rg BT 142.50 387.52 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 97.50 372.52 Td (Item 4.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 142.5 371.1833984375 m 240.8154296875 371.1833984375 l s q 0 0 1 rg BT 142.50 372.52 Td (Mine Safety Disclosures) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 357.52 Td (Item 5.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 142.5 356.1833984375 m 215.5322265625 356.1833984375 l s q 0 0 1 rg BT 142.50 357.52 Td (Other Information) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 342.52 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 142.5 341.1833984375 m 175.8349609375 341.1833984375 l s q 0 0 1 rg BT 142.50 342.52 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 52.5 326.1833984375 m 113.6181640625 326.1833984375 l s q 0 0 1 rg BT 52.50 327.52 Td (SIGNA) Tj ET Q q 0 0 1 rg BT 81.95 327.52 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 553.5 610.2833984375 m 558.5 610.2833984375 l s q 0 0 1 rg BT 553.50 611.62 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 553.5 595.2833984375 m 558.5 595.2833984375 l s q 0 0 1 rg BT 553.50 596.62 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 553.5 570.2833984375 m 558.5 570.2833984375 l s q 0 0 1 rg BT 553.50 571.62 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 553.5 545.2833984375 m 558.5 545.2833984375 l s q 0 0 1 rg BT 553.50 546.62 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 553.5 520.2833984375 m 558.5 520.2833984375 l s q 0 0 1 rg BT 553.50 521.62 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 553.5 505.28339843749995 m 558.5 505.28339843749995 l s q 0 0 1 rg BT 553.50 506.62 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 548.5 490.28339843749995 m 558.5 490.28339843749995 l s q 0 0 1 rg BT 548.50 491.62 Td (23) 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 548.5 475.28339843749995 m 558.5 475.28339843749995 l s q 0 0 1 rg BT 548.50 476.62 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 548.5 460.28339843749995 m 558.5 460.28339843749995 l s q 0 0 1 rg BT 548.50 461.62 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 548.5 445.28339843749995 m 558.5 445.28339843749995 l s q 0 0 1 rg BT 548.50 446.62 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 548.5 430.28339843749995 m 558.5 430.28339843749995 l s q 0 0 1 rg BT 548.50 431.62 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 548.5 415.28339843749995 m 558.5 415.28339843749995 l s q 0 0 1 rg BT 548.50 416.62 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 548.5 400.28339843749995 m 558.5 400.28339843749995 l s q 0 0 1 rg BT 548.50 401.62 Td (38) 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 548.5 385.28339843749995 m 558.5 385.28339843749995 l s q 0 0 1 rg BT 548.50 386.62 Td (39) 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 548.5 370.2833984375 m 558.5 370.2833984375 l s q 0 0 1 rg BT 548.50 371.62 Td (39) 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 548.5 355.2833984375 m 558.5 355.2833984375 l s q 0 0 1 rg BT 548.50 356.62 Td (39) 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 548.5 340.2833984375 m 558.5 340.2833984375 l s q 0 0 1 rg BT 548.50 341.62 Td (40) 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 548.5 325.2833984375 m 558.5 325.2833984375 l s q 0 0 1 rg BT 548.50 326.62 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. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 701.10 Td (KBS GROWTH& INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 701.10 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 219.40 683.10 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 279.22 683.10 Td (TED BALANCE SHEETS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.05 665.10 Td (\(in thousands, except share and per share amounts\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 620.60 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 620.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 620.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 620.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 592.60 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 592.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 592.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 592.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 564.60 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 564.60 90.00 -14.00 re f 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0.9333333333333333 1 rg /GS0 gs 473.00 480.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 452.60 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 452.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 452.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 452.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 424.60 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 424.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 424.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 424.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 396.60 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 396.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 396.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 396.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 368.60 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 368.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 368.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 368.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 340.60 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 340.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 340.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 340.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 312.60 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 312.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 312.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 312.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 284.60 329.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 284.60 90.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 284.60 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 284.60 90.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 226.60 329.00 -34.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 226.60 90.00 -34.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 226.60 4.00 -34.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 226.60 90.00 -34.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 178.60 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 178.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 178.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 178.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 150.60 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 150.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 150.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 150.60 90.00 -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 379 634.6 m 469 634.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 634.6 m 563 634.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 634.6 m 469 634.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 634.6 m 563 634.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 550.6 m 469 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 550.6 m 563 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 522.6 m 469 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 522.6 m 563 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 452.6 m 469 452.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 452.6 m 563 452.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 439.6 m 469 439.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 437.6 m 469 437.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 439.6 m 563 439.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 437.6 m 563 437.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 340.6 m 469 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 340.6 m 563 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 326.6 m 469 326.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 326.6 m 563 326.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 164.60000000000002 m 469 164.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 164.60000000000002 m 563 164.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 150.60000000000002 m 469 150.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 150.60000000000002 m 563 150.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 137.60000000000002 m 469 137.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 135.60000000000002 m 469 135.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 137.60000000000002 m 563 137.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 135.60000000000002 m 563 135.60000000000002 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 393.70 639.05 Td (Mar) Tj ET Q q 0 0 0 rg BT 410.61 639.05 Td (ch 31, 2018) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 481.20 639.05 Td (December) Tj ET Q q 0 0 0 rg BT 520.09 639.05 Td ( 31, 2017) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 400.95 625.05 Td (\(unaudited\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 611.06 Td (Assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 597.06 Td (Real estate:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 70.50 583.06 Td (Land) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.50 583.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.75 583.06 Td (31,309) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 583.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 583.06 Td (31,309) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 70.50 569.06 Td (Building and improvements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.25 569.06 Td (142,704) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 569.06 Td (142,400) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 70.50 555.06 Td (T) Tj ET Q q 0 0 0 rg BT 75.68 555.06 Td (enant origination and absorption costs) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.75 555.06 Td (16,849) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 555.06 Td (17,047) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 541.06 Td (T) Tj ET Q q 0 0 0 rg BT 66.68 541.06 Td (otal real estate, cost) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.25 541.06 Td (190,862) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 541.06 Td (190,756) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 70.50 527.06 Td (Less accumulated depreciation and amortization) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.75 527.06 Td (\(1) Tj ET Q q 0 0 0 rg BT 445.25 527.06 Td (1,567) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 527.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 536.25 527.06 Td (\(9,627) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 527.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 513.06 Td (T) Tj ET Q q 0 0 0 rg BT 66.68 513.06 Td (otal real estate, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.25 513.06 Td (179,295) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 513.06 Td (181,129) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 499.06 Td (Cash and cash equivalents) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 499.06 Td (3,218) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 499.06 Td (2,523) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 485.06 Td (Rent and other receivables) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 485.06 Td (2,512) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 485.06 Td (1,920) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 471.06 Td (Above-market leases, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.00 471.06 Td (172) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 471.06 Td (180) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 457.06 Td (Prepaid expenses and other assets, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 457.06 Td (2,004) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 457.06 Td (1,388) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 443.06 Td (T) Tj ET Q q 0 0 0 rg BT 57.68 443.06 Td (otal assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.50 443.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.25 443.06 Td (187,201) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 443.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 443.06 Td (187,140) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 429.06 Td (Liabilities and stockholders) Tj ET Q q 0 0 0 rg BT 154.64 429.06 Td ( equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 415.06 Td (Notes payable, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.50 415.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.25 415.06 Td (1) Tj ET Q q 0 0 0 rg BT 440.75 415.06 Td (16,595) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 415.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 415.06 Td (1) Tj ET Q q 0 0 0 rg BT 534.75 415.06 Td (12,780) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 401.06 Td (Accounts payable and accrued liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 401.06 Td (1,625) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 401.06 Td (2,717) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 387.06 Td (Due to af) Tj ET Q q 0 0 0 rg BT 94.90 387.06 Td (filiates) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 387.06 Td (2,249) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 387.06 Td (1,787) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 373.06 Td (Distributions payable) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.00 373.06 Td (380) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 373.06 Td (385) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 359.06 Td (Below-market leases, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 359.06 Td (5,455) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 359.06 Td (5,910) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 345.06 Td (Other liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 345.06 Td (2,070) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 345.06 Td (1,828) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 331.06 Td (T) Tj ET Q q 0 0 0 rg BT 57.68 331.06 Td (otal liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.25 331.06 Td (128,374) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 331.06 Td (125,407) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 317.06 Td (Commitments and contingencies \(Note 9\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 303.06 Td (Redeemable common stock) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.50 303.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 303.06 Td (2,314) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 289.06 Td (Stockholders) Tj ET Q q 0 0 0 rg BT 102.16 289.06 Td ( equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 274.06 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 61.50 265.06 Td (outstanding) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.50 265.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 265.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 249.06 Td (Class ) Tj ET Q q 0 0 0 rg BT 83.00 249.06 Td (A) Tj ET Q q 0 0 0 rg BT 89.01 249.06 Td ( common stock, $.01 par value per share; 500,000,000 shares authorized,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 240.06 Td (9,010,139 and 9,149,100 shares issued and outstanding as of March 31, 2018 and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 231.06 Td (December 31, 2017, respectively) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.50 231.06 Td (90) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 231.06 Td (91) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 215.06 Td (Class ) Tj ET Q q 0 0 0 rg BT 83.17 215.06 Td (T) Tj ET Q q 0 0 0 rg BT 88.51 215.06 Td ( common stock, $.01 par value per share; 500,000,000 shares authorized,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 206.06 Td (284,605 shares and 281,537 shares issued and outstanding as of March 31, 2018 and) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 197.06 Td (December 31, 2017, respectively) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 461.00 197.06 Td (3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 555.00 197.06 Td (3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 183.06 Td (Additional paid-in capital) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.75 183.06 Td (76,997) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 183.06 Td (76,265) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 169.06 Td (Cumulative distributions and net losses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.75 169.06 Td (\(18,263) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 169.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.75 169.06 Td (\(16,940) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 169.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 155.06 Td (T) Tj ET Q q 0 0 0 rg BT 57.68 155.06 Td (otal stockholders) Tj ET Q q 0 0 0 rg BT 121.27 155.06 Td ( equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 440.75 155.06 Td (58,827) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 155.06 Td (59,419) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 141.06 Td (T) Tj ET Q q 0 0 0 rg BT 57.37 141.06 Td (otal liabilities and stockholders) Tj ET Q q 0 0 0 rg BT 171.93 141.06 Td ( equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.50 141.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.25 141.06 Td (187,201) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 141.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 141.06 Td (187,140) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 119.10 Td (See accompanying condensed notes to consolidated financial statements.) Tj ET Q endstream endobj 9 0 obj <>] /Rotate 0 /Contents 10 0 R>> endobj 10 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 713.25 Td (KBS GROWTH& INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 713.25 Td (, INC.) 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 1 1 1 rg /GS0 gs 50.00 645.75 329.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 379.00 645.75 184.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 617.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 617.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 617.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 617.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 589.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 589.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 589.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 589.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 561.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 561.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 561.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 561.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 533.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 533.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 533.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 533.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 505.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 505.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 505.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 505.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 477.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 477.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 477.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 477.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 449.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 449.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 449.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 449.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 421.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 421.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 421.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 421.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 394.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 394.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 394.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 394.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 366.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 366.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 366.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 366.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 338.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 338.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 338.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 338.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 310.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 310.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 310.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 310.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 282.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 282.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 282.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 282.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 254.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 254.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 254.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 254.75 90.00 -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 379 631.75 m 469 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 631.75 m 563 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 631.75 m 469 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 617.75 m 469 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 631.75 m 563 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 617.75 m 563 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 561.75 m 469 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 561.75 m 563 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 547.75 m 469 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 547.75 m 563 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 435.75 m 469 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 435.75 m 563 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 421.75 m 469 421.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 421.75 m 563 421.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 394.75 m 469 394.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 380.75 m 469 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 394.75 m 563 394.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 380.75 m 563 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 367.75 m 469 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 365.75 m 469 365.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 367.75 m 563 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 365.75 m 563 365.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 365.75 m 469 365.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 367.75 m 469 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 365.75 m 563 365.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 367.75 m 563 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 325.75 m 469 325.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 323.75 m 469 323.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 325.75 m 563 325.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 323.75 m 563 323.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 311.75 m 469 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 309.75 m 469 309.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 311.75 m 563 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 309.75 m 563 309.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 297.75 m 469 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 295.75 m 469 295.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 297.75 m 563 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 295.75 m 563 295.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 255.75 m 469 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 253.75 m 469 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 255.75 m 563 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 253.75 m 563 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 241.75 m 469 241.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 239.75 m 469 239.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 241.75 m 563 241.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 239.75 m 563 239.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 227.75 m 469 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 225.75 m 469 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 227.75 m 563 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 225.75 m 563 225.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.20 635.98 Td (For) Tj ET Q q 0 0 0 rg BT 414.57 635.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 429.08 635.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 442.28 635.98 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 518.80 635.98 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.50 621.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.50 621.98 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 608.21 Td (Revenues:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 594.21 Td (Rental income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.50 594.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 594.21 Td (4,414) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 594.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 594.21 Td (3,236) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 580.21 Td (T) Tj ET Q q 0 0 0 rg BT 66.68 580.21 Td (enant reimbursements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 580.21 Td (1,128) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 580.21 Td (779) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 566.21 Td (Other operating income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.50 566.21 Td (39) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 566.21 Td (18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 552.21 Td (T) Tj ET Q q 0 0 0 rg BT 57.68 552.21 Td (otal revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 552.21 Td (5,581) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 552.21 Td (4,033) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 538.21 Td (Expenses:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 524.21 Td (Operating, maintenance, and management) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.00 524.21 Td (869) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 524.21 Td (745) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 510.21 Td (Property management fees and expenses to af) Tj ET Q q 0 0 0 rg BT 225.86 510.21 Td (filiate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.50 510.21 Td (42) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 510.21 Td (29) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 496.21 Td (Real estate taxes and insurance) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.00 496.21 Td (751) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 496.21 Td (457) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 482.21 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 164.88 482.21 Td (filiate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.00 482.21 Td (456) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 482.21 Td (214) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 468.21 Td (General and administrative expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.00 468.21 Td (393) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 468.21 Td (341) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 454.21 Td (Depreciation and amortization) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 454.21 Td (2,309) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 454.21 Td (1,718) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 440.21 Td (Interest expense) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.00 440.21 Td (971) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 440.21 Td (743) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 426.21 Td (T) Tj ET Q q 0 0 0 rg BT 57.68 426.21 Td (otal expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 426.21 Td (5,791) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 426.21 Td (4,247) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 412.21 Td (Other income:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 399.01 Td (Interest and other income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 461.00 399.01 Td (5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 399.01 Td (17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 385.21 Td (T) Tj ET Q q 0 0 0 rg BT 57.68 385.21 Td (otal other income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 461.00 385.21 Td (5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 385.21 Td (17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 371.21 Td (Net loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.50 371.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 371.21 Td (\(205) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 371.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 371.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.00 371.21 Td (\(197) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 371.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 343.21 Td (Class ) Tj ET Q q 0 0 0 rg BT 74.00 343.21 Td (A) Tj ET Q q 0 0 0 rg BT 80.01 343.21 Td ( Common Stock:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 329.21 Td (Net loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.50 329.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 449.00 329.21 Td (\(199) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 329.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 329.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.00 329.21 Td (\(189) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 329.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 315.21 Td (Net loss per common share, basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.50 315.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 446.75 315.21 Td (\(0.02) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 315.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 315.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.75 315.21 Td (\(0.02) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 315.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 301.21 Td (W) Tj ET Q q 0 0 0 rg BT 60.63 301.21 Td (eighted-average number of common shares outstanding basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.50 301.21 Td (9,095,165) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.50 301.21 Td (8,964,835) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 273.21 Td (Class ) Tj ET Q q 0 0 0 rg BT 74.17 273.21 Td (T) Tj ET Q q 0 0 0 rg BT 79.51 273.21 Td ( Common Stock:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 259.21 Td (Net loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.50 259.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.00 259.21 Td (\(6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 259.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 259.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 552.00 259.21 Td (\(8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 259.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 245.21 Td (Net loss per common share, basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.50 245.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 446.75 245.21 Td (\(0.02) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 245.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 245.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.75 245.21 Td (\(0.05) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 245.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 231.21 Td (W) Tj ET Q q 0 0 0 rg BT 60.27 231.21 Td (eighted-average number of common shares outstanding basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.25 231.21 Td (283,592) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 231.21 Td (165,947) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 209.25 Td (See accompanying condensed notes to consolidated financial statements.) Tj ET Q endstream endobj 11 0 obj <>] /Rotate 0 /Contents 12 0 R>> endobj 12 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 713.25 Td (KBS GROWTH& INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 713.25 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 110.30 677.25 Td (For the ) Tj ET Q q 0 0 0 rg BT 141.04 677.25 Td (Y) Tj ET Q q 0 0 0 rg BT 147.26 677.25 Td (ear Ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.01 677.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.60 677.25 Td ( and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.57 677.25 Td (Three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.89 677.25 Td ( Months Ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.49 677.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.09 677.25 Td ( \(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.65 665.25 Td (\(dollars in thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 606.75 147.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.00 606.75 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.00 606.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.00 606.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 606.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 606.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 606.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 606.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 606.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 606.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.00 606.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 606.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 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55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 578.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 578.75 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 550.75 147.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.00 550.75 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.00 550.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.00 550.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 550.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 550.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 550.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 550.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 550.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 550.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.00 550.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 550.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 550.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 550.75 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 522.75 147.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.00 522.75 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.00 522.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.00 522.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 522.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 522.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 522.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 522.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 522.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 522.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.00 522.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 522.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 522.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 522.75 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 479.75 147.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.00 479.75 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.00 479.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.00 479.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 479.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 479.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 479.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 479.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 479.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 479.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.00 479.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 479.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 479.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 479.75 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 451.75 147.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.00 451.75 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.00 451.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 242.00 451.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 451.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 451.75 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 451.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 451.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 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/GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 395.75 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 395.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 395.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.00 395.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 395.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 395.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 395.75 59.00 -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 197 634.75 m 238 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 634.75 m 242 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 634.75 m 282 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 634.75 m 286 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 634.75 m 331 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 634.75 m 335 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 634.75 m 377 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 620.75 m 238 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 620.75 m 282 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 620.75 m 331 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 620.75 m 377 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 620.75 m 238 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 606.75 m 238 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 620.75 m 242 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 620.75 m 282 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 606.75 m 282 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 620.75 m 331 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 606.75 m 331 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 620.75 m 335 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 620.75 m 377 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 606.75 m 377 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 606.75 m 441 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 606.75 m 500 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 606.75 m 563 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 606.75 m 238 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 606.75 m 282 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 606.75 m 377 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 606.75 m 441 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 606.75 m 500 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 606.75 m 563 606.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 465.75 m 238 465.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 465.75 m 282 465.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 465.75 m 331 465.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 465.75 m 377 465.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 465.75 m 441 465.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 465.75 m 500 465.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 465.75 m 563 465.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 465.75 m 331 465.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 465.75 m 377 465.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 381.75 m 238 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 368.75 m 238 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 366.75 m 238 366.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 381.75 m 282 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 368.75 m 282 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 366.75 m 282 366.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 381.75 m 331 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 368.75 m 331 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 366.75 m 331 366.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 381.75 m 377 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 368.75 m 377 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 366.75 m 377 366.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 381.75 m 441 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 368.75 m 441 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 366.75 m 441 366.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 381.75 m 500 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 368.75 m 500 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 366.75 m 500 366.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 381.75 m 563 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 368.75 m 563 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 366.75 m 563 366.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 260.15 638.98 Td (Common Stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 392.25 618.98 Td (Additional ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.35 610.98 Td (Paid-in Capital) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 634.98 Td (Cumulative) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.55 626.98 Td (Distributions) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.55 618.98 Td (and Net) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.85 610.98 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.25 626.98 Td (T) Tj ET Q q 0 0 0 rg BT 529.22 626.98 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.70 618.98 Td (Stockholders) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.40 610.98 Td (Equity) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 226.40 624.98 Td (Class ) Tj ET Q q 0 0 0 rg BT 246.41 624.98 Td (A) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 318.35 624.98 Td (Class ) Tj ET Q q 0 0 0 rg BT 338.50 624.98 Td (T) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.50 610.98 Td (Shar) Tj ET Q q 0 0 0 rg BT 221.88 610.98 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 245.90 610.98 Td (Amounts) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.50 610.98 Td (Shar) Tj ET Q q 0 0 0 rg BT 312.88 610.98 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.90 610.98 Td (Amounts) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 597.00 Td (Balance, December 31, 2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.75 597.00 Td (8,846,164) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.50 597.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.50 597.00 Td (88) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 305.50 597.00 Td (94,018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.50 597.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.50 597.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.50 597.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.80 597.00 Td (71,992) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.50 597.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 597.00 Td (\(9,451) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 597.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 506.50 597.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 597.00 Td (62,630) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 583.00 Td (Net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.80 583.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.50 583.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.50 583.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.50 583.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.80 583.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 583.00 Td (\(2,199) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 583.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 583.00 Td (\(2,199) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 583.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 569.00 Td (Issuance of common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.75 569.00 Td (380,538) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 274.50 569.00 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.50 569.00 Td (185,845) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.50 569.00 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.80 569.00 Td (5,417) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.50 569.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 569.00 Td (5,421) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 555.00 Td (T) Tj ET Q q 0 0 0 rg BT 57.25 555.00 Td (ransfers to redeemable common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.80 555.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.50 555.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.50 555.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.50 555.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.10 555.00 Td (\(523) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 555.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.50 555.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 555.00 Td (\(523) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 555.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 541.00 Td (Redemptions of common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 206.10 541.00 Td (\(145,214) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 234.80 541.00 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.50 541.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.50 541.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 364.50 541.21 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.10 541.00 Td (\(1,210) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 541.00 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.50 541.21 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 541.00 Td (\(1,210) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 541.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 527.00 Td (Stock dividends issued) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 212.75 527.00 Td (67,612) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 274.50 527.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.50 527.00 Td (1,674) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.50 527.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.80 527.00 Td (706) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.80 527.00 Td (\(707) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 527.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 527.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 513.00 Td (Distributions declared) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.80 513.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.50 513.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.50 513.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.50 513.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.80 513.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 513.00 Td (\(4,583) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 513.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 513.00 Td (\(4,583) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 513.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 500.00 Td (Commissions on stock sales, related dealer) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 492.00 Td (manager fees and stockholder servicing) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 484.00 Td (fees to af) Tj ET Q q 0 0 0 rg BT 81.74 484.00 Td (filiate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.80 484.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.50 484.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.50 484.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.50 484.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.10 484.00 Td (\(103) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 484.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.50 484.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 484.00 Td (\(103) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 484.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 470.00 Td (Other of) Tj ET Q q 0 0 0 rg BT 79.31 470.00 Td (fering costs to af) Tj ET Q q 0 0 0 rg BT 132.70 470.00 Td (filiate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.80 470.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.50 470.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.50 470.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.50 470.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.10 470.00 Td (\(14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 470.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.50 470.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 470.00 Td (\(14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 470.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 456.00 Td (Balance, December 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.75 456.00 Td (9,149,100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.50 456.00 Td (91) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.50 456.00 Td (281,537) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.50 456.00 Td (3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.80 456.00 Td (76,265) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.80 456.00 Td (\(16,940) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 456.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 456.00 Td (59,419) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 442.00 Td (Net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.80 442.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.50 442.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.50 442.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.50 442.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.80 442.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.80 442.00 Td (\(205) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 442.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 442.00 Td (\(205) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 442.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 428.00 Td (Issuance of common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.75 428.00 Td (138,1) Tj ET Q q 0 0 0 rg BT 226.75 428.00 Td (1) Tj ET Q q 0 0 0 rg BT 230.75 428.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 274.50 428.00 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.50 428.00 Td (3,068) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.50 428.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.80 428.00 Td (1,240) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.50 428.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 428.00 Td (1,242) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 414.00 Td (T) Tj ET Q q 0 0 0 rg BT 57.25 414.00 Td (ransfers from redeemable common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.80 414.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.50 414.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.50 414.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.50 414.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.80 414.00 Td (1,803) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.50 414.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 414.00 Td (1,803) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 400.00 Td (Redemptions of common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 206.10 400.00 Td (\(277,072) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 234.80 400.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 271.80 400.00 Td (\(3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 278.50 400.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.50 400.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.50 400.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.10 400.00 Td (\(2,31) Tj ET Q q 0 0 0 rg BT 433.76 400.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 400.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.50 400.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 400.00 Td (\(2,314) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 400.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 386.00 Td (Distributions declared) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 226.80 386.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.50 386.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.50 386.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.50 386.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.80 386.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 386.00 Td (\(1,1) Tj ET Q q 0 0 0 rg BT 488.46 386.00 Td (18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 386.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 386.00 Td (\(1,1) Tj ET Q q 0 0 0 rg BT 551.76 386.00 Td (18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 386.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 372.00 Td (Balance, March 31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.75 372.00 Td (9,010,139) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.50 372.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.50 372.00 Td (90) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.50 372.00 Td (284,605) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.50 372.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.50 372.00 Td (3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.50 372.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.80 372.00 Td (76,997) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.50 372.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.80 372.00 Td (\(18,263) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 372.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 506.50 372.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 372.00 Td (58,827) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 350.25 Td (See accompanying condensed notes to consolidated financial statements.) Tj ET Q endstream endobj 13 0 obj <>] /Rotate 0 /Contents 14 0 R>> endobj 14 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 713.25 Td (KBS GROWTH& INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 713.25 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 50.00 620.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 620.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 620.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 620.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 592.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 592.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 592.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 592.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 564.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 564.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 564.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 564.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 536.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 536.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 536.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 536.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 508.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 508.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 508.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 508.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 480.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 480.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 480.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 480.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 452.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 452.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 452.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 452.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 424.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 424.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 424.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 424.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 396.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 396.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 396.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 396.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 368.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 368.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 368.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 368.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 340.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 340.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 340.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 340.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 312.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 312.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 312.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 312.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 284.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 284.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 284.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 284.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 250.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 250.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 250.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 250.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 222.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 222.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 222.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 222.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 194.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 194.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 194.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 194.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 166.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 166.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 166.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 166.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 138.75 329.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 138.75 90.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 138.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 138.75 90.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 111.75 329.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 111.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 111.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 111.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 84.75 329.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 84.75 90.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 84.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 84.75 90.00 -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 379 634.75 m 469 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 634.75 m 563 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 634.75 m 469 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 620.75 m 469 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 634.75 m 563 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 620.75 m 563 620.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 410.75 m 469 410.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 410.75 m 563 410.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 410.75 m 469 410.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 396.75 m 469 396.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 410.75 m 563 410.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 396.75 m 563 396.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 396.75 m 469 396.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 396.75 m 563 396.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 368.75 m 469 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 354.75 m 469 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 368.75 m 563 368.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 354.75 m 563 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 208.75 m 469 208.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 208.75 m 563 208.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 208.75 m 469 208.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 194.75 m 469 194.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 208.75 m 563 208.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 194.75 m 563 194.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 166.75 m 469 166.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 166.75 m 563 166.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 166.75 m 469 166.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 153.75 m 469 153.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 151.75 m 469 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 166.75 m 563 166.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 153.75 m 563 153.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 151.75 m 563 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 126.75 m 469 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 124.75 m 469 124.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 126.75 m 563 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 124.75 m 563 124.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 98.75 m 469 98.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 96.75 m 469 96.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 98.75 m 563 98.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 96.75 m 563 96.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 85.75 m 469 85.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 83.75 m 469 83.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 85.75 m 563 85.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 83.75 m 563 83.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 65.75 m 469 65.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 63.75 m 469 63.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 65.75 m 563 65.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 63.75 m 563 63.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.60 638.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 428.86 638.98 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 505.38 638.98 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.50 624.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.50 624.98 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 611.00 Td (Cash Flows from Operating ) Tj ET Q q 0 0 0 rg BT 143.38 611.00 Td (Activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 597.00 Td (Net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 597.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 597.00 Td (\(205) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 597.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 597.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 597.00 Td (\(197) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 597.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 583.00 Td (Adjustments to reconcile net loss to net cash \(used in\) provided by operating activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 569.00 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 569.00 Td (2,309) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 569.00 Td (1,718) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 555.00 Td (Deferred rents) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 555.00 Td (\(446) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 555.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 555.00 Td (\(187) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 555.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 541.00 Td (Allowance for doubtful accounts) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.10 541.00 Td (\(84) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 541.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 553.10 541.00 Td (\(5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 541.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 527.00 Td (Amortization of above and below-market leases, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 527.00 Td (\(447) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 527.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 527.00 Td (\(343) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 527.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 513.00 Td (Amortization of deferred financing costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 513.00 Td (82) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 513.00 Td (103) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 499.00 Td (Unrealized gain on derivative instrument) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 499.00 Td (\(372) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 499.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 499.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 485.00 Td (Changes in operating assets and liabilities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 471.00 Td (Rents and other receivables) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.10 471.00 Td (\(82) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 471.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 471.00 Td (\(18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 471.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 457.00 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 457.00 Td (\(310) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 457.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 457.00 Td (\(1) Tj ET Q q 0 0 0 rg BT 551.76 457.00 Td (17) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 457.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 443.00 Td (Accounts payable and accrued liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.10 443.00 Td (\(1,039) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 443.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 443.00 Td (\(965) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 443.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 429.00 Td (Due to af) Tj ET Q q 0 0 0 rg BT 106.19 429.00 Td (filiates) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 429.00 Td (462) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 553.10 429.00 Td (\(5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 429.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 415.00 Td (Other liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 415.00 Td (\(442) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 415.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 415.00 Td (99) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.50 401.00 Td (Net cash \(used in\) provided by operating activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 401.00 Td (\(574) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 401.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 401.00 Td (83) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 387.00 Td (Cash Flows from Investing ) Tj ET Q q 0 0 0 rg BT 141.17 387.00 Td (Activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 373.00 Td (Improvements to real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 373.00 Td (\(530) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 373.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 373.00 Td (\(75) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 373.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.50 359.00 Td (Net cash used in investing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 359.00 Td (\(530) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 359.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 359.00 Td (\(75) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 359.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 345.00 Td (Cash Flows from Financing ) Tj ET Q q 0 0 0 rg BT 143.39 345.00 Td (Activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 331.00 Td (Proceeds from notes payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 443.80 331.00 Td (45,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 331.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 317.00 Td (Principal payments on notes payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.10 317.00 Td (\(41,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 317.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 317.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 303.00 Td (Payments of deferred financing costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 459.10 303.00 Td (\(6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 303.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 303.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 289.00 Td (Proceeds from issuance of common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 289.00 Td (731) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 289.00 Td (1,734) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 275.00 Td (Payments to redeem common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.10 275.00 Td (\(2,314) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 275.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 275.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 262.70 Td (Payments of commissions on stock sales, related dealer manager fees to af) Tj ET Q q 0 0 0 rg BT 314.58 262.70 Td (filiate and other) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 254.70 Td (of) Tj ET Q q 0 0 0 rg BT 83.09 254.70 Td (fering costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 255.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 255.00 Td (\(147) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 255.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 241.00 Td (Reimbursements of other of) Tj ET Q q 0 0 0 rg BT 165.96 241.00 Td (fering costs from af) Tj ET Q q 0 0 0 rg BT 228.69 241.00 Td (filiates) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 241.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 241.00 Td (71) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 227.00 Td (Payments of other of) Tj ET Q q 0 0 0 rg BT 143.30 227.00 Td (fering costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 227.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 227.00 Td (\(23) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 227.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 213.00 Td (Distributions paid to common stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 213.00 Td (\(612) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 213.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 213.00 Td (\(516) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 213.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.50 199.00 Td (Net cash provided by financing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 199.00 Td (1,799) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 199.00 Td (1,1) Tj ET Q q 0 0 0 rg BT 551.80 199.00 Td (19) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 185.00 Td (Net increase in cash and cash equivalents) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 185.00 Td (695) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 185.00 Td (1,127) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 171.00 Td (Cash and cash equivalents, beginning of period) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 171.00 Td (2,523) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 171.00 Td (15,666) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 157.00 Td (Cash and cash equivalents, end of period) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 157.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 157.00 Td (3,218) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 157.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 157.00 Td (16,793) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 143.00 Td (Supplemental Disclosure of Cash Flow Information) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 130.00 Td (Interest paid) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 130.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 130.00 Td (1,233) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 130.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 130.00 Td (627) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 116.00 Td (Supplemental Disclosure of Noncash Investing and Financing ) Tj ET Q q 0 0 0 rg BT 252.24 116.00 Td (Activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 102.00 Td (Stock dividends issued) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 102.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 102.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 102.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 102.00 Td (236) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 89.00 Td (Increase in cash distributions payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 89.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 89.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 89.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 89.00 Td (1) Tj ET Q q 0 0 0 rg BT 555.80 89.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 76.70 Td (Dividends paid to common stockholders through common stock issuances pursuant to the) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 68.70 Td (distribution reinvestment plan) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 69.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 69.00 Td (51) Tj ET Q q 0 0 0 rg BT 461.80 69.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 69.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 69.00 Td (588) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 47.25 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. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) 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 Growth& Income REIT) Tj ET Q q 0 0 0 rg BT 191.24 611.10 Td (, Inc. \(the Company\) was formed on January 12, 2015 as a Maryland corporation that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (elected to be taxed as a real estate investment trust \(REIT\) beginning with the taxable year ended December 31, 2015. ) 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 Growth& Income 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 January 14, 2015. ) Tj ET Q q 0 0 0 rg BT 353.67 575.10 Td (The Company is the sole general partner of, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (owns a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.05 563.10 Td (0.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.88 563.10 Td ( partnership interest in, the Operating Partnership. KBS Growth& Income REIT) Tj ET Q q 0 0 0 rg BT 425.63 563.10 Td ( Holdings LLC \(REIT) Tj ET Q q 0 0 0 rg BT 518.49 563.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (Holdings\), a Delaware limited liability company formed on January 14, 2015, owns the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.12 551.10 Td (99.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.95 551.10 Td ( partnership interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (in the Operating Partnership and is the sole limited partner) Tj ET Q q 0 0 0 rg BT 283.05 539.10 Td (. ) Tj ET Q q 0 0 0 rg BT 290.37 539.10 Td (The Company is the sole member and manager of REIT) Tj ET Q q 0 0 0 rg BT 514.29 539.10 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 between the Company and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td (Advisor initially entered into on June 1) Tj ET Q q 0 0 0 rg BT 205.77 497.10 Td (1, 2015, and amended at various times thereafter \(the Advisory ) Tj ET Q q 0 0 0 rg BT 464.58 497.10 Td (Agreement\). ) Tj ET Q q 0 0 0 rg BT 524.09 497.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.10 Td (Advisor conducts the Company) Tj ET Q q 0 0 0 rg BT 178.65 485.10 Td (s operations and manages its portfolio of core real estate properties. On January 27, 2015, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.10 Td (Company issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.39 473.10 Td (20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.89 473.10 Td ( shares of its common stock to the ) Tj ET Q q 0 0 0 rg BT 284.20 473.10 Td (Advisor at a purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.93 473.10 Td ($10.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.43 473.10 Td ( per share. On June 1) Tj ET Q q 0 0 0 rg BT 520.98 473.10 Td (1, 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.10 Td (these outstanding shares of common stock were designated Class ) Tj ET Q q 0 0 0 rg BT 311.95 461.10 Td (A) Tj ET Q q 0 0 0 rg BT 318.62 461.10 Td ( shares of common stock. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 443.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 443.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 443.10 Td (, the Company had invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.19 443.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.85 443.10 Td ( of) Tj ET Q q 0 0 0 rg BT 311.50 443.10 Td (fice properties. ) Tj ET Q q 0 0 0 rg BT 376.29 443.10 Td (The Company intends to invest in a diverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (portfolio of core real estate properties. ) Tj ET Q q 0 0 0 rg BT 207.59 431.10 Td (The Company considers core properties to be existing properties with at least ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.17 431.10 Td (80%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.50 431.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (occupancy) Tj ET Q q 0 0 0 rg BT 91.60 419.10 Td (. Based on the current market outlook, the Company expects its core focus in the U.S. of) Tj ET Q q 0 0 0 rg BT 447.73 419.10 Td (fice sector to reflect a value-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (creating core strategy) Tj ET Q q 0 0 0 rg BT 134.92 407.10 Td (, which is also known as a core-plus strategy) Tj ET Q q 0 0 0 rg BT 312.83 407.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 389.10 Td (The Company commenced a private placement of) Tj ET Q q 0 0 0 rg BT 271.18 389.10 Td (fering exempt from registration pursuant to Rule 506\(b\) of Regulation D ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.10 Td (of the Securities ) Tj ET Q q 0 0 0 rg BT 116.43 377.10 Td (Act of 1933, as amended, on June 1) Tj ET Q q 0 0 0 rg BT 259.08 377.10 Td (1, 2015, pursuant to which the Company of) Tj ET Q q 0 0 0 rg BT 432.49 377.10 Td (fered a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td ($105,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.50 365.10 Td ( in shares of its Class ) Tj ET Q q 0 0 0 rg BT 191.17 365.10 Td (A) Tj ET Q q 0 0 0 rg BT 197.83 365.10 Td ( common stock for sale to accredited investors \(the Initial Private Of) Tj ET Q q 0 0 0 rg BT 476.17 365.10 Td (fering\), of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td ($5,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 353.10 Td ( of Class ) Tj ET Q q 0 0 0 rg BT 131.45 353.10 Td (A) Tj ET Q q 0 0 0 rg BT 138.12 353.10 Td ( shares were of) Tj ET Q q 0 0 0 rg BT 198.19 353.10 Td (fered pursuant to the Company) Tj ET Q q 0 0 0 rg BT 324.82 353.10 Td (s distribution reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 456.01 353.10 Td (The Company ceased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 341.10 Td (fering shares in the primary portion of the Initial Private Of) Tj ET Q q 0 0 0 rg BT 295.18 341.10 Td (fering on ) Tj ET Q q 0 0 0 rg BT 333.50 341.10 Td (April 27, 2016 and processed subscriptions for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (primary Initial Private Of) Tj ET Q q 0 0 0 rg BT 151.23 329.10 Td (fering dated on or prior to ) Tj ET Q q 0 0 0 rg BT 256.76 329.10 Td (April 27, 2016 through May 30, 2016. KBS Capital Markets Group LLC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (\(the Dealer Manager\), an af) Tj ET Q q 0 0 0 rg BT 168.96 317.10 Td (filiate of the ) Tj ET Q q 0 0 0 rg BT 219.78 317.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 251.60 317.10 Td (, served as the dealer manager of the Initial Private Of) Tj ET Q q 0 0 0 rg BT 467.72 317.10 Td (fering pursuant to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (dealer manager agreement dated June 1) Tj ET Q q 0 0 0 rg BT 207.10 305.10 Td (1, 2015 \(the Initial Private Of) Tj ET Q q 0 0 0 rg BT 329.67 305.10 Td (fering Dealer Manager ) Tj ET Q q 0 0 0 rg BT 422.67 305.10 Td (Agreement\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 287.10 Td (On February 4, 2015, the Company filed a registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 383.24 287.10 Td (1 with the Securities and Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (Commission \(the SEC\) to register an initial public of) Tj ET Q q 0 0 0 rg BT 269.84 275.10 Td (fering of its common stock to of) Tj ET Q q 0 0 0 rg BT 398.52 275.10 Td (fer a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.94 275.10 Td ($1,500,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.44 275.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (shares of common stock for sale to the public in a primary of) Tj ET Q q 0 0 0 rg BT 293.14 263.10 Td (fering, consisting of two classes of shares: Class ) Tj ET Q q 0 0 0 rg BT 490.89 263.10 Td (A) Tj ET Q q 0 0 0 rg BT 497.56 263.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 540.99 263.10 Td (T) Tj ET Q q 0 0 0 rg BT 546.92 263.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (\(the Primary Of) Tj ET Q q 0 0 0 rg BT 117.07 251.10 Td (fering\) and a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.48 251.10 Td ($800,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.48 251.10 Td ( in both classes of shares of its common stock pursuant to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 239.10 Td (s distribution reinvestment plan \(the DRP) Tj ET Q q 0 0 0 rg BT 261.60 239.10 Td ( Of) Tj ET Q q 0 0 0 rg BT 274.48 239.10 Td (fering and, together with the Primary Of) Tj ET Q q 0 0 0 rg BT 440.08 239.10 Td (fering, the Public Of) Tj ET Q q 0 0 0 rg BT 526.54 239.10 Td (fering\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (The SEC declared the Company) Tj ET Q q 0 0 0 rg BT 181.13 227.10 Td (s registration statement ef) Tj ET Q q 0 0 0 rg BT 283.97 227.10 Td (fective on ) Tj ET Q q 0 0 0 rg BT 325.62 227.10 Td (April 28, 2016 and the Company retained the Dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (Manager to serve as the dealer manager of the Public Of) Tj ET Q q 0 0 0 rg BT 274.78 215.10 Td (fering pursuant to a dealer manager agreement dated ) Tj ET Q q 0 0 0 rg BT 486.91 215.10 Td (April 28, 2016 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (\(the Public Of) Tj ET Q q 0 0 0 rg BT 110.41 203.10 Td (fering Dealer Manager ) Tj ET Q q 0 0 0 rg BT 203.42 203.10 Td (Agreement\). ) Tj ET Q q 0 0 0 rg BT 260.43 203.10 Td (The Company terminated the Primary Of) Tj ET Q q 0 0 0 rg BT 424.93 203.10 Td (fering ef) Tj ET Q q 0 0 0 rg BT 458.89 203.10 Td (fective June 30, 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 185.10 Td (The Company continues to of) Tj ET Q q 0 0 0 rg BT 190.69 185.10 Td (fer shares of common stock pursuant to the DRP) Tj ET Q q 0 0 0 rg BT 384.72 185.10 Td ( Of) Tj ET Q q 0 0 0 rg BT 397.60 185.10 Td (fering. In some states, the Company will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.10 Td (need to renew the registration statement annually to continue the DRP) Tj ET Q q 0 0 0 rg BT 329.61 173.10 Td ( Of) Tj ET Q q 0 0 0 rg BT 342.48 173.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 371.17 173.10 Td (The Company may terminate the DRP) Tj ET Q q 0 0 0 rg BT 524.38 173.10 Td ( Of) Tj ET Q q 0 0 0 rg BT 537.25 173.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.10 Td (at any time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 143.10 Td (On October3, 2017, the Company launched a private placement of) Tj ET Q q 0 0 0 rg BT 340.07 143.10 Td (fering exempt from registration pursuant to Rule 506) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (\(c\) of Regulation D of the Securities ) Tj ET Q q 0 0 0 rg BT 196.96 131.10 Td (Act pursuant to which the Company is currently of) Tj ET Q q 0 0 0 rg BT 400.07 131.10 Td (fering a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.27 131.10 Td ($1,000,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.77 131.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (shares of its Class ) Tj ET Q q 0 0 0 rg BT 123.39 119.10 Td (A) Tj ET Q q 0 0 0 rg BT 130.06 119.10 Td ( common stock to accredited investors \(the Second Private Of) Tj ET Q q 0 0 0 rg BT 381.75 119.10 Td (fering\). Prior to the launch of the Second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (Private Of) Tj ET Q q 0 0 0 rg BT 90.70 107.10 Td (fering, on September 29, 2017, the Company entered into a dealer manager agreement \(the NCPS Dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (Agreement\) with the ) Tj ET Q q 0 0 0 rg BT 138.64 95.10 Td (Advisor and North Capital Private Securities Corporation \(NCPS\) in connection with the Second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.10 Td (Private Of) Tj ET Q q 0 0 0 rg BT 90.70 83.10 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. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) 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 72.00 627.60 Td (The Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.60 627.60 Td (8,548,972) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.60 627.60 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 255.04 627.60 Td (A) Tj ET Q q 0 0 0 rg BT 261.71 627.60 Td ( common stock for gross of) Tj ET Q q 0 0 0 rg BT 371.24 627.60 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.48 627.60 Td ($76.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.37 627.60 Td ( in the Initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 615.60 Td (Private Of) Tj ET Q q 0 0 0 rg BT 90.70 615.60 Td (fering, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.85 615.60 Td (74,744) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.35 615.60 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 251.79 615.60 Td (A) Tj ET Q q 0 0 0 rg BT 258.46 615.60 Td ( common stock under its distribution reinvestment plan for gross of) Tj ET Q q 0 0 0 rg BT 527.68 615.60 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 603.60 Td (proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.37 603.60 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.26 603.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 585.60 Td (The Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.60 585.60 Td (122,721) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.10 585.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.54 585.60 Td (270,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.04 585.60 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 299.48 585.60 Td (A) Tj ET Q q 0 0 0 rg BT 306.15 585.60 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 349.58 585.60 Td (T) Tj ET Q q 0 0 0 rg BT 355.51 585.60 Td ( common stock in the Primary Of) Tj ET Q q 0 0 0 rg BT 489.19 585.60 Td (fering for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 573.60 Td (aggregate gross of) Tj ET Q q 0 0 0 rg BT 122.63 573.60 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.87 573.60 Td ($3.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.76 573.60 Td (. ) Tj ET Q q 0 0 0 rg BT 251.21 573.60 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.65 573.60 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.25 573.60 Td (, the Company had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.46 573.60 Td (410,149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.96 573.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.40 573.60 Td (12,417) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.90 573.60 Td ( shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 561.60 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.12 561.60 Td (A) Tj ET Q q 0 0 0 rg BT 79.79 561.60 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 123.22 561.60 Td (T) Tj ET Q q 0 0 0 rg BT 129.14 561.60 Td ( common stock in the DRP) Tj ET Q q 0 0 0 rg BT 236.82 561.60 Td ( Of) Tj ET Q q 0 0 0 rg BT 249.70 561.60 Td (fering for aggregate gross of) Tj ET Q q 0 0 0 rg BT 363.36 561.60 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.60 561.60 Td ($4.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.49 561.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 543.60 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 543.60 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 543.60 Td (, the Company had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.25 543.60 Td (125,322) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.75 543.60 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 354.19 543.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.86 543.60 Td ( common stock in the Second Private Of) Tj ET Q q 0 0 0 rg BT 522.60 543.60 Td (fering for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 531.60 Td (aggregate gross of) Tj ET Q q 0 0 0 rg BT 122.63 531.60 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.87 531.60 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.76 531.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 513.60 Td (As of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 513.60 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 513.60 Td (, the Company had redeemed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.45 513.60 Td (422,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.95 513.60 Td ( Class ) Tj ET Q q 0 0 0 rg BT 338.06 513.60 Td (A) Tj ET Q q 0 0 0 rg BT 344.73 513.60 Td ( shares for) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.88 513.60 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.78 513.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 495.60 Td (On ) Tj ET Q q 0 0 0 rg BT 86.17 495.60 Td (August 1) Tj ET Q q 0 0 0 rg BT 122.19 495.60 Td (1, 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.19 495.60 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.19 495.60 Td ( of the individuals who own and control the Company) Tj ET Q q 0 0 0 rg BT 390.77 495.60 Td (s sponsor) Tj ET Q q 0 0 0 rg BT 427.87 495.60 Td (, Charles J. Schreiber) Tj ET Q q 0 0 0 rg BT 512.73 495.60 Td (, Jr) Tj ET Q q 0 0 0 rg BT 524.40 495.60 Td (. \(who ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.60 Td (also acts as chief executive of) Tj ET Q q 0 0 0 rg BT 168.43 483.60 Td (ficer) Tj ET Q q 0 0 0 rg BT 186.35 483.60 Td (, the chairman of the board and a director of the Company\) and Peter M. Bren \(who also acts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.60 Td (as president and director of the Company\), purchased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.82 471.60 Td (21,181.2380) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.82 471.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.26 471.60 Td (21,181.2390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.26 471.60 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 449.70 471.60 Td (A) Tj ET Q q 0 0 0 rg BT 456.37 471.60 Td ( common stock, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.60 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 459.60 Td (, each for an aggregate purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.79 459.60 Td ($172,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.29 459.60 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.62 459.60 Td ($8.144) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.12 459.60 Td ( per share. ) Tj ET Q q 0 0 0 rg BT 383.81 459.60 Td (The per share purchase price reflects an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.60 Td (8.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.33 447.60 Td ( discount to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.21 447.60 Td ($8.90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.71 447.60 Td ( of) Tj ET Q q 0 0 0 rg BT 167.36 447.60 Td (fering price in the Private Of) Tj ET Q q 0 0 0 rg BT 282.42 447.60 Td (fering in ef) Tj ET Q q 0 0 0 rg BT 326.66 447.60 Td (fect on the date of their purchase because selling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.60 Td (commissions and dealer manager fees were not paid in connection with the sales. Mr) Tj ET Q q 0 0 0 rg BT 388.29 435.60 Td (. Bren) Tj ET Q q 0 0 0 rg BT 415.51 435.60 Td (s investment was made on behalf of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.60 Td (and for the account of three of his children, and he has disclaimed beneficial ownership of the shares. ) Tj ET Q q 0 0 0 rg BT 456.95 423.60 Td (The Company issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.60 Td (these shares in private transactions exempt from the registration requirements pursuant to Section 4\(a\)\(2\) of the Securities ) Tj ET Q q 0 0 0 rg BT 539.08 411.60 Td (Act ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.60 Td (of 1933. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 381.60 Td (As described above, the Company intends to use substantially all of the net proceeds from its private and public of) Tj ET Q q 0 0 0 rg BT 529.49 381.60 Td (ferings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.60 Td (to invest in a diverse portfolio of core real estate properties. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 345.60 Td (2. ) Tj ET Q q 0 0 0 rg BT 72.00 345.60 Td (SUMMAR) Tj ET Q q 0 0 0 rg BT 117.75 345.60 Td (Y) Tj ET Q q 0 0 0 rg BT 124.60 345.60 Td ( OF) Tj ET Q q 0 0 0 rg BT 140.62 345.60 Td ( SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 209.62 345.60 Td ( ) Tj ET Q q 0 0 0 rg BT 211.57 345.60 Td (ACCOUNTING POLICIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 327.60 Td (There have been no significant changes to the Company) Tj ET Q q 0 0 0 rg BT 299.15 327.60 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 49.50 315.60 Td (in its ) Tj ET Q q 0 0 0 rg BT 71.17 315.60 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 267.51 315.60 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.10 315.60 Td (, except for the Company) Tj ET Q q 0 0 0 rg BT 450.23 315.60 Td (s adoption of the revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.60 Td (recognition standards issued by the Financial ) Tj ET Q q 0 0 0 rg BT 231.69 303.60 Td (Accounting Standards Board \(F) Tj ET Q q 0 0 0 rg BT 362.31 303.60 Td (ASB\) ef) Tj ET Q q 0 0 0 rg BT 399.62 303.60 Td (fective on January 1, 2018. For further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 291.60 Td (information about the Company) Tj ET Q q 0 0 0 rg BT 180.31 291.60 Td (s accounting policies, refer to the Company) Tj ET Q q 0 0 0 rg BT 357.21 291.60 Td (s consolidated financial statements and notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 279.60 Td (thereto for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.72 279.60 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.31 279.60 Td ( included in the Company) Tj ET Q q 0 0 0 rg BT 339.40 279.60 Td (s ) Tj ET Q q 0 0 0 rg BT 345.24 279.60 Td (Annual Report on Form 10-K filed with the Securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.60 Td (and Exchange Commission \(SEC\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 249.60 Td (Principles of Consolidation and Basis of Pr) Tj ET Q q 0 0 0 rg BT 232.12 249.60 Td (esentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 231.60 Td (The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 219.60 Td (accordance with U.S. generally accepted accounting principles \(GAAP\) for interim financial information as contained within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.60 Td (the F) Tj ET Q q 0 0 0 rg BT 69.04 207.60 Td (ASB ) Tj ET Q q 0 0 0 rg BT 90.44 207.60 Td (Accounting Standards Codification \(ASC\) and the rules and regulations of the SEC, including the instructions to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.60 Td (Form 10-Q and ) Tj ET Q q 0 0 0 rg BT 113.11 195.60 Td (Article10 of RegulationS-X. ) Tj ET Q q 0 0 0 rg BT 236.15 195.60 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 285.48 195.60 Td (, the unaudited consolidated financial statements do not include all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.60 Td (of the information and footnotes required by GAAP) Tj ET Q q 0 0 0 rg BT 256.58 183.60 Td ( for audited financial statements. In the opinion of management, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.60 Td (financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.60 Td (nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.19 159.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.17 159.60 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.60 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 147.60 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.48 147.60 Td ( are not necessarily indicative of the results that may be expected for the year ending December31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.04 147.60 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.04 147.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 129.60 Td (The consolidated financial statements include the accounts of the Company) Tj ET Q q 0 0 0 rg BT 373.20 129.60 Td (, REIT) Tj ET Q q 0 0 0 rg BT 400.24 129.60 Td ( Holdings, the Operating Partnership, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.60 Td (and their direct and indirect wholly owned subsidiaries. ) Tj ET Q q 0 0 0 rg BT 276.11 117.60 Td (All significant intercompany balances and transactions are eliminated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.60 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. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Use of Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (The preparation of the consolidated financial statements and the accompanying notes thereto in conformity with GAAP) Tj ET Q q 0 0 0 rg BT 549.54 614.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (requires management to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 305.91 602.25 Td (fect the amounts reported in the consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (statements and accompanying notes. ) Tj ET Q q 0 0 0 rg BT 197.52 590.25 Td (Actual results could materially dif) Tj ET Q q 0 0 0 rg BT 333.96 590.25 Td (fer from those estimates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (Segments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 554.25 Td (The Company had invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.48 554.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.14 554.25 Td ( of) Tj ET Q q 0 0 0 rg BT 221.79 554.25 Td (fice properties as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.42 554.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.01 554.25 Td (. Substantially all of the Company) Tj ET Q q 0 0 0 rg BT 508.94 554.25 Td (s revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (and net loss is from real estate, and therefore, the Company currently operates in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.39 542.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.83 542.25 Td ( reportable segment.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 506.25 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.26 506.25 Td (fective January 1, 2018, the Company adopted ) Tj ET Q q 0 0 0 rg BT 269.27 506.25 Td (ASU No. 2014-09, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 347.32 506.25 Td (Revenue fr) Tj ET Q q 0 0 0 rg BT 389.98 506.25 Td (om Contracts with Customers \(T) Tj ET Q q 0 0 0 rg BT 519.64 506.25 Td (opic 606\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.68 506.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (\(ASU No. 2014-09\) using the modified retrospective approach, which requires a cumulative ef) Tj ET Q q 0 0 0 rg BT 436.97 494.25 Td (fect adjustment as of the date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (of the Company) Tj ET Q q 0 0 0 rg BT 116.71 482.25 Td (s adoption. Under the modified retrospective approach, an entity may also elect to apply this standard to either ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (\(i\) all contracts as of January 1, 2018 or \(ii\) only to contracts that were not completed as of January 1, 2018. ) Tj ET Q q 0 0 0 rg BT 486.04 470.25 Td (A) Tj ET Q q 0 0 0 rg BT 492.71 470.25 Td ( completed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (contract is a contract for which all \(or substantially all\) of the revenue was recognized under legacy GAAP) Tj ET Q q 0 0 0 rg BT 476.47 458.25 Td ( that was in ef) Tj ET Q q 0 0 0 rg BT 532.38 458.25 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (before the date of initial application. ) Tj ET Q q 0 0 0 rg BT 197.32 446.25 Td (The Company elected to apply this standard only to contracts that were not completed as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (of January 1, 2018. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 416.25 Td (Based on the Company) Tj ET Q q 0 0 0 rg BT 167.82 416.25 Td (s evaluation of contracts within the scope of ) Tj ET Q q 0 0 0 rg BT 346.11 416.25 Td (ASU No. 2014-09, revenue that is impacted by ) Tj ET Q q 0 0 0 rg BT 536.07 416.25 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (No. 2014-09 includes revenue generated by sales of real estate, other operating income and tenant reimbursements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (substantial services earned at the Company) Tj ET Q q 0 0 0 rg BT 224.72 392.25 Td (s properties. ) Tj ET Q q 0 0 0 rg BT 275.92 392.25 Td (The recognition of such revenue will occur when the services are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (provided and the performance obligations are satisfied. For the three months ended March 31, 2018, tenant reimbursements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (substantial services accounted for under ) Tj ET Q q 0 0 0 rg BT 211.39 368.25 Td (ASU No. 2014-09 was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.00 368.25 Td ($36,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.50 368.25 Td ( which was included in tenant reimbursements on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (accompanying statements of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 338.25 Td (Sales of Real Estate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 323.25 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.26 323.25 Td (fective January 1, 2018, the Company adopted the guidance of ) Tj ET Q q 0 0 0 rg BT 333.41 323.25 Td (ASC 610-20, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 388.69 323.25 Td (Other Income - Gains and Losses fr) Tj ET Q q 0 0 0 rg BT 531.64 323.25 Td (om the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 311.25 Td (Der) Tj ET Q q 0 0 0 rg BT 64.68 311.25 Td (ecognition of Nonfinancial ) Tj ET Q q 0 0 0 rg BT 174.21 311.25 Td (Assets \(ASC 610-20\),) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.60 311.25 Td ( which applies to sales or transfers to noncustomers of nonfinancial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.25 Td (assets or in substance nonfinancial assets that do not meet the definition of a business. Generally) Tj ET Q q 0 0 0 rg BT 437.37 299.25 Td (, the Company) Tj ET Q q 0 0 0 rg BT 498.75 299.25 Td (s sales of real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.25 Td (estate would be considered a sale of a nonfinancial asset as defined by ) Tj ET Q q 0 0 0 rg BT 332.45 287.25 Td (ASC 610-20.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 269.25 Td (ASC 610-20 refers to the revenue recognition principles under ) Tj ET Q q 0 0 0 rg BT 323.88 269.25 Td (ASU No. 2014-09. Under ) Tj ET Q q 0 0 0 rg BT 431.37 269.25 Td (ASC 610-20, if the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.25 Td (determines it does not have a controlling financial interest in the entity that holds the asset and the arrangement meets the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.25 Td (criteria to be accounted for as a contract, the Company would derecognize the asset and recognize a gain or loss on the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.25 Td (the real estate when control of the underlying asset transfers to the buyer) Tj ET Q q 0 0 0 rg BT 339.40 233.25 Td (. ) Tj ET Q q 0 0 0 rg BT 346.35 233.25 Td (As a result of the adoption of ) Tj ET Q q 0 0 0 rg BT 464.94 233.25 Td (ASU 610-20, there was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.25 Td (no impact to the Company) Tj ET Q q 0 0 0 rg BT 158.37 221.25 Td (s consolidated financial statements of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.86 221.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.85 221.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.67 221.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.27 221.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 209.25 Td ( since the Company did not sell any real estate properties for those periods.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 191.25 Td (Per) Tj ET Q q 0 0 0 rg BT 64.30 191.25 Td ( Shar) Tj ET Q q 0 0 0 rg BT 87.19 191.25 Td (e Data) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 173.25 Td (Basic net income \(loss\) per share of common stock is calculated by dividing net income \(loss\) by the weighted-average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.25 Td (number of shares of common stock issued and outstanding during such period. Diluted net income \(loss\) per share of common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.25 Td (stock equals basic net income \(loss\) per share of common stock as there were no potentially dilutive securities outstanding for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.25 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 137.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.20 137.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.03 137.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.63 137.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.06 137.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.06 137.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 300.73 137.25 Td (. For the purpose of determining the weighted average number ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.25 Td (of shares outstanding, stock dividends issued during the period presented are adjusted retroactively and treated as if they were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.25 Td (issued and outstanding for all periods presented. ) Tj ET Q endstream endobj 21 0 obj <>] /Rotate 0 /Contents 22 0 R>> endobj 22 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (During the three months ended March 31, 2017, the Company declared stock distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.37 632.10 Td (0.00249999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.87 632.10 Td ( shares per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (outstanding and issued a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.15 620.10 Td (22,685) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.65 620.10 Td ( shares. ) Tj ET Q q 0 0 0 rg BT 240.96 620.10 Td (The Company ceased issuing stock dividends to all stockholders on September ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (5, 2017. Stock dividends had been declared on a monthly basis and the amount declared per share outstanding assumed the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (share was issued and outstanding each date that was a record date for stock dividends during the periods presented. Stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (dividends were issued in the same class of shares as the shares for which such stockholder received the stock dividend.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 566.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 566.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 566.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.36 566.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.96 566.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.39 566.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.39 566.10 Td (, aggregate cash distributions declared per share of Class ) Tj ET Q q 0 0 0 rg BT 530.21 566.10 Td (A) Tj ET Q q 0 0 0 rg BT 536.88 566.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.53 554.10 Td ($0.1) Tj ET Q q 0 0 0 rg BT 149.66 554.10 Td (1920680) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.66 554.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.10 554.10 Td ($0.12328740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.60 554.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 309.26 554.10 Td (, assuming the share was issued and outstanding each date that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (was a record date for distributions during the period. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.77 542.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.75 542.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.58 542.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.18 542.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.61 542.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.61 542.10 Td (, aggregate cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (distributions declared per share of Class ) Tj ET Q q 0 0 0 rg BT 212.05 530.10 Td (T) Tj ET Q q 0 0 0 rg BT 217.98 530.10 Td ( common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.51 530.10 Td ($0.1) Tj ET Q q 0 0 0 rg BT 320.64 530.10 Td (1920680) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.64 530.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.08 530.10 Td ($0.09880255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.58 530.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 480.24 530.10 Td (, assuming the share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (was issued and outstanding each date that was a record date for distributions during the period. Distributions for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (January 1, 2017 through March 31, 2017 were calculated at a rate of \(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.17 506.10 Td ($0.00136986) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.67 506.10 Td ( per share per day) Tj ET Q q 0 0 0 rg BT 460.10 506.10 Td (, less \(ii\) the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (daily class-specific stockholder servicing fees accrued for and allocable to any class of common stock, divided by the number ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (of shares of common stock of such class outstanding as of the close of business on each respective record date. Distributions for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (the period from January 1, 2018 through March 31, 2018 were calculated at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.93 470.10 Td ($0.00132452) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.43 470.10 Td ( per share per day) Tj ET Q q 0 0 0 rg BT 512.86 470.10 Td (. Each day ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 458.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.81 458.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.64 458.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.23 458.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.67 458.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.67 458.10 Td ( was a record date for distributions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 440.10 Td (In accordance with F) Tj ET Q q 0 0 0 rg BT 156.89 440.10 Td (ASB ) Tj ET Q q 0 0 0 rg BT 178.29 440.10 Td (ASC ) Tj ET Q q 0 0 0 rg BT 200.06 440.10 Td (T) Tj ET Q q 0 0 0 rg BT 205.47 440.10 Td (opic 260-10-45, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 271.85 440.10 Td (Earnings Per Shar) Tj ET Q q 0 0 0 rg BT 346.48 440.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.92 440.10 Td (, the Company uses the two-class method to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (calculate earnings per share. Basic earnings per share is calculated based on dividends declared \(distributed earnings\) and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (rights of common shares and participating securities in any undistributed earnings, which represents net income remaining after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (deduction of dividends declared during the period. ) Tj ET Q q 0 0 0 rg BT 253.70 404.10 Td (The undistributed earnings are allocated to all outstanding common shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (based on the relative percentage of each class of shares to the total number of outstanding shares. ) Tj ET Q q 0 0 0 rg BT 440.29 392.10 Td (The Company does not have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (any participating securities outstanding other than Class ) Tj ET Q q 0 0 0 rg BT 275.29 380.10 Td (A) Tj ET Q q 0 0 0 rg BT 281.96 380.10 Td ( Common Stock and Class ) Tj ET Q q 0 0 0 rg BT 390.39 380.10 Td (T) Tj ET Q q 0 0 0 rg BT 396.32 380.10 Td ( Common Stock during the periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (presented.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 350.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 131.71 350.10 Td (s calculated earnings per share for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.25 350.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.24 350.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.06 350.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.66 350.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.10 350.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.10 350.10 Td ( were as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (thousands, except share and per share amounts\):) Tj ET Q 1 1 1 rg /GS0 gs 378.00 321.60 185.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 293.60 328.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 293.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 293.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 293.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 265.60 328.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 265.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 265.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 265.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 237.60 328.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 237.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 237.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 237.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 209.60 328.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 209.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 209.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 209.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 181.60 328.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 181.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 181.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 181.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 153.60 328.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 153.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 153.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 153.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 125.60 328.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 125.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 125.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 125.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 97.60 328.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 97.60 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 97.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 97.60 90.00 -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 378 307.6 m 468 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 307.6 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 378 307.6 m 468 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 293.6 m 468 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 307.6 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 473 293.6 m 563 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 293.6 m 468 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 293.6 m 563 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 251.60000000000002 m 563 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 251.60000000000002 m 468 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 238.60000000000002 m 468 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 236.60000000000002 m 468 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 251.60000000000002 m 563 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 238.60000000000002 m 563 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 236.60000000000002 m 563 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 195.60000000000002 m 468 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 195.60000000000002 m 563 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 195.60000000000002 m 468 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 182.60000000000002 m 468 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 180.60000000000002 m 468 180.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 195.60000000000002 m 563 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 182.60000000000002 m 563 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 180.60000000000002 m 563 180.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 168.60000000000002 m 468 168.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 166.60000000000002 m 468 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 180.60000000000002 m 563 180.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 182.60000000000002 m 563 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 168.60000000000002 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 473 166.60000000000002 m 563 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 166.60000000000002 m 468 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 168.60000000000002 m 468 168.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 154.60000000000002 m 468 154.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 152.60000000000002 m 468 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 166.60000000000002 m 563 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 168.60000000000002 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 473 154.60000000000002 m 563 154.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 152.60000000000002 m 563 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 111.60000000000002 m 468 111.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 111.60000000000002 m 563 111.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 111.60000000000002 m 468 111.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 98.60000000000002 m 468 98.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 96.60000000000002 m 468 96.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 111.60000000000002 m 563 111.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 98.60000000000002 m 563 98.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 96.60000000000002 m 563 96.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 96.60000000000002 m 468 96.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 98.60000000000002 m 468 98.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 84.60000000000002 m 468 84.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 82.60000000000002 m 468 82.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 96.60000000000002 m 563 96.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 98.60000000000002 m 563 98.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 84.60000000000002 m 563 84.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 82.60000000000002 m 563 82.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 82.60000000000002 m 468 82.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 84.60000000000002 m 468 84.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 70.60000000000002 m 468 70.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 68.60000000000002 m 468 68.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 82.60000000000002 m 563 82.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 84.60000000000002 m 563 84.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 70.60000000000002 m 563 70.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 68.60000000000002 m 563 68.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.70 311.83 Td (For) Tj ET Q q 0 0 0 rg BT 414.07 311.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 428.58 311.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 441.78 311.83 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 518.30 311.83 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 414.50 297.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.50 297.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 283.85 Td (Net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.50 283.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 450.10 283.85 Td (\(205) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.80 283.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 283.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 283.85 Td (\(197) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 283.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 269.85 Td (Less: Class ) Tj ET Q q 0 0 0 rg BT 90.50 269.85 Td (A) Tj ET Q q 0 0 0 rg BT 95.84 269.85 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 446.80 269.85 Td (1,084) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 269.85 Td (1,099) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 255.85 Td (Less: Class ) Tj ET Q q 0 0 0 rg BT 90.65 255.85 Td (T) Tj ET Q q 0 0 0 rg BT 95.39 255.85 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.80 255.85 Td (34) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 255.85 Td (16) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 241.85 Td (Undistributed net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.50 241.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 444.10 241.85 Td (\(1,323) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.80 241.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 241.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 241.85 Td (\(1,312) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 241.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 227.85 Td (Class ) Tj ET Q q 0 0 0 rg BT 71.62 227.85 Td (A) Tj ET Q q 0 0 0 rg BT 76.95 227.85 Td ( Common Stock:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 213.85 Td (Undistributed net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.50 213.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 444.10 213.85 Td (\(1,283) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.80 213.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 213.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 213.85 Td (\(1,288) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 213.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 199.85 Td (Class ) Tj ET Q q 0 0 0 rg BT 80.62 199.85 Td (A) Tj ET Q q 0 0 0 rg BT 85.95 199.85 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 446.80 199.85 Td (1,084) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 199.85 Td (1,099) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 185.85 Td (Net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.50 185.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 450.10 185.85 Td (\(199) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.80 185.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 185.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 185.85 Td (\(189) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 185.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 171.85 Td (Net loss per common share, basic and diluted) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.50 171.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 448.10 171.85 Td (\(0.02) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.80 171.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 171.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.10 171.85 Td (\(0.02) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 171.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 157.85 Td (W) Tj ET Q q 0 0 0 rg BT 68.73 157.85 Td (eighted-average number of common shares outstanding, basic and diluted) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 432.80 157.85 Td (9,095,165) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 527.80 157.85 Td (8,964,835) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 143.85 Td (Class ) Tj ET Q q 0 0 0 rg BT 71.69 143.85 Td (T) Tj ET Q q 0 0 0 rg BT 76.43 143.85 Td ( Common Stock:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 129.85 Td (Undistributed net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.50 129.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.10 129.85 Td (\(40) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.80 129.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 129.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 129.85 Td (\(24) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 129.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 115.85 Td (Class ) Tj ET Q q 0 0 0 rg BT 80.76 115.85 Td (T) Tj ET Q q 0 0 0 rg BT 85.51 115.85 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.80 115.85 Td (34) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 115.85 Td (16) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 101.85 Td (Net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.50 101.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.10 101.85 Td (\(6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.80 101.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 101.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 553.10 101.85 Td (\(8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 101.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 87.85 Td (Net loss per common share, basic and diluted) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.50 87.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 448.10 87.85 Td (\(0.02) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.80 87.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 87.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.10 87.85 Td (\(0.05) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 87.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 73.85 Td (W) Tj ET Q q 0 0 0 rg BT 68.41 73.85 Td (eighted-average number of common shares outstanding, basic and diluted) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 438.80 73.85 Td (283,592) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 73.85 Td (165,947) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 23 0 obj <>] /Rotate 0 /Contents 24 0 R>> endobj 24 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Squar) Tj ET Q q 0 0 0 rg BT 75.44 632.25 Td (e Footage, Occupancy and Other) Tj ET Q q 0 0 0 rg BT 215.53 632.25 Td ( Measur) Tj ET Q q 0 0 0 rg BT 250.61 632.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 614.25 Td (Square footage, occupancy) Tj ET Q q 0 0 0 rg BT 180.36 614.25 Td (, number of tenants and other measures, including annualized base rent and annualized base ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (rent per square foot, or amounts derived from such measures, used to describe real estate investments included in these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (Condensed Notes to Consolidated Financial Statements are presented on an unaudited basis.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 118.39 572.25 Td (Accounting Standards Update) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 554.25 Td (In February 2016, the F) Tj ET Q q 0 0 0 rg BT 165.96 554.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 214.87 554.25 Td (ASU No. 2016-02, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 292.92 554.25 Td (Leases \(T) Tj ET Q q 0 0 0 rg BT 330.62 554.25 Td (opic 842\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.67 554.25 Td ( \(ASU No. 2016-02\). ) Tj ET Q q 0 0 0 rg BT 467.08 554.25 Td (The amendments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 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 49.50 530.25 Td (leases on their balance sheets and making tar) Tj ET Q q 0 0 0 rg BT 228.97 530.25 Td (geted changes to lessor accounting. ) Tj ET Q q 0 0 0 rg BT 372.63 530.25 Td (The standard requires lessors to identify lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (and non-lease components under their leasing arrangements and allocate the total consideration in the lease agreement to these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (lease and non-lease components based on their relative standalone selling prices. Non-lease components will be subject to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (new revenue recognition standard upon the Company) Tj ET Q q 0 0 0 rg BT 266.11 494.25 Td (s adoption of the new leasing standard on January 1, 2019. ) Tj ET Q q 0 0 0 rg BT 504.95 494.25 Td (ASU No. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (2016-02 is ef) Tj ET Q q 0 0 0 rg BT 102.09 482.25 Td (fective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (Early adoption of ) Tj ET Q q 0 0 0 rg BT 121.43 470.25 Td (ASU No. 2016-02 as of its issuance is permitted. ) Tj ET Q q 0 0 0 rg BT 321.78 470.25 Td (The new leases standard requires a modified retrospective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (transition approach for all leases existing at, or entered into after) Tj ET Q q 0 0 0 rg BT 307.06 458.25 Td (, the date of initial application, with an option to use certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (transition relief. In March 2018, the F) Tj ET Q q 0 0 0 rg BT 202.33 446.25 Td (ASB af) Tj ET Q q 0 0 0 rg BT 231.87 446.25 Td (firmed a proposed amendment to the leases ) Tj ET Q q 0 0 0 rg BT 407.10 446.25 Td (ASU, which would add a transition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (option to the new leases standard that would allow entities to apply the transition provisions of the new standard at its adoption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (date instead of the earliest comparative periods presented in its financial statements. ) Tj ET Q q 0 0 0 rg BT 387.81 422.25 Td (The F) Tj ET Q q 0 0 0 rg BT 410.68 422.25 Td (ASB also tentatively approved a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (practical expedient that would permit lessors to not separate lease and non-lease components if certain conditions are met. ) Tj ET Q q 0 0 0 rg BT 539.98 410.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (Company is currently evaluating the impact of adopting the new leases standard on its consolidated financial statements and if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (adopted by the F) Tj ET Q q 0 0 0 rg BT 115.69 386.25 Td (ASB, applying the transition option and electing the practical expedient of the proposed amendment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 368.25 Td (In June 2016, the F) Tj ET Q q 0 0 0 rg BT 149.70 368.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 198.60 368.25 Td (ASU No. 2016-13, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 276.65 368.25 Td (Financial Instruments - Cr) Tj ET Q q 0 0 0 rg BT 383.78 368.25 Td (edit Losses \(T) Tj ET Q q 0 0 0 rg BT 438.42 368.25 Td (opic 326\): Measur) Tj ET Q q 0 0 0 rg BT 512.48 368.25 Td (ement of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (Cr) Tj ET Q q 0 0 0 rg BT 59.69 356.25 Td (edit Losses of Financial Instruments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.74 356.25 Td (\(ASU No. 2016-13\). ) Tj ET Q q 0 0 0 rg BT 303.28 356.25 Td (ASU No. 2016-13 af) Tj ET Q q 0 0 0 rg BT 386.43 356.25 Td (fects entities holding financial assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.25 Td (net investments in leases that are not accounted for at fair value through net income. ) Tj ET Q q 0 0 0 rg BT 391.15 344.25 Td (The amendments in ) Tj ET Q q 0 0 0 rg BT 471.96 344.25 Td (ASU No. 2016-13 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (require a financial asset \(or a group of financial assets\) measured at amortized cost basis to be presented at the net amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (expected to be collected. ) Tj ET Q q 0 0 0 rg BT 153.16 320.25 Td (The allowance for credit losses is a valuation account that is deducted from the amortized cost basis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (of the financial asset\(s\) to present the net carrying value at the amount expected to be collected on the financial asset. ) Tj ET Q q 0 0 0 rg BT 522.93 308.25 Td (ASU No. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (2016-13 also amends the impairment model for available-for) Tj ET Q q 0 0 0 rg BT 292.83 296.25 Td (-sale securities. ) Tj ET Q q 0 0 0 rg BT 358.92 296.25 Td (An entity will recognize an allowance for credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (losses on available-for) Tj ET Q q 0 0 0 rg BT 139.27 284.25 Td (-sale debt securities as a contra-account to the amortized cost basis rather than as a direct reduction of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.25 Td (amortized cost basis of the investment, as is currently required.) Tj ET Q q 0 0 0 rg BT 306.38 272.25 Td (ASU No. 2016-13 also requires new disclosures. For financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.25 Td (assets measured at amortized cost, an entity will be required to disclose information about how it developed its allowance for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.25 Td (credit losses, including changes in the factors that influenced management) Tj ET Q q 0 0 0 rg BT 349.40 248.25 Td (s estimate of expected credit losses and the reasons ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.25 Td (for those changes. For financing receivables and net investments in leases measured at amortized cost, an entity will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.25 Td (required to further disaggregate the information it currently discloses about the credit quality of these assets by year of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.25 Td (asset) Tj ET Q q 0 0 0 rg BT 71.72 212.25 Td (s origination for as many as five annual periods. For available for sale securities, an entity will be required to provide a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.25 Td (roll-forward of the allowance for credit losses and an aging analysis for securities that are past due. ) Tj ET Q q 0 0 0 rg BT 450.19 200.25 Td (ASU No. 2016-13 is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 188.25 Td (fective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.25 Td (The Company is still evaluating the impact of adopting ) Tj ET Q q 0 0 0 rg BT 271.96 164.25 Td (ASU No. 2016-13 on its financial statements, but does not expect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (adoption of ) Tj ET Q q 0 0 0 rg BT 97.27 152.25 Td (ASU No. 2016-13 to have a material impact on its financial statements.) Tj ET Q endstream endobj 25 0 obj <>] /Rotate 0 /Contents 26 0 R>> endobj 26 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 33.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 33.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (3. ) Tj ET Q q 0 0 0 rg BT 72.00 632.25 Td (REAL) Tj ET Q q 0 0 0 rg BT 99.23 632.25 Td ( EST) Tj ET Q q 0 0 0 rg BT 119.89 632.25 Td (A) Tj ET Q q 0 0 0 rg BT 126.37 632.25 Td (TE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 614.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 614.25 Td (, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.31 614.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.97 614.25 Td ( of) Tj ET Q q 0 0 0 rg BT 277.62 614.25 Td (fice properties containing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.30 614.25 Td (683,952) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.80 614.25 Td ( rentable square feet, which were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (collectively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.65 602.25 Td (97%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.98 602.25 Td ( occupied. ) Tj ET Q q 0 0 0 rg BT 162.89 602.25 Td (The following table provides summary information regarding the properties owned by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (Company as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.55 590.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.15 590.25 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 546.75 112.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 162.00 546.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.00 546.75 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 546.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 546.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 546.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 546.75 24.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.00 546.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 546.75 38.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 546.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 546.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 546.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 546.75 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 546.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 546.75 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 518.75 112.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 162.00 518.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.00 518.75 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 518.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 518.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 518.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 518.75 24.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.00 518.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 518.75 38.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 518.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 518.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 518.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 518.75 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 518.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 518.75 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 490.75 112.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 162.00 490.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.00 490.75 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 490.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 490.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 490.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 490.75 24.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 304.00 490.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 490.75 38.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 490.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 490.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 490.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 490.75 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 490.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 490.75 70.00 -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 50 546.75 m 162 546.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 166 546.75 m 223 546.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 546.75 m 276 546.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 546.75 m 304 546.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308 546.75 m 346 546.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 546.75 m 415 546.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 546.75 m 489 546.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 546.75 m 563 546.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 546.75 m 415 546.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 546.75 m 489 546.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 490.75 m 415 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 490.75 m 489 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 490.75 m 415 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 477.75 m 415 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 475.75 m 415 475.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 490.75 m 489 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 477.75 m 489 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 475.75 m 489 475.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 490.75 m 563 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 477.75 m 563 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 475.75 m 563 475.75 l s BT /F2 7.50 Tf ET q 0 0 0 rg BT 91.15 550.87 Td (Pr) Tj ET Q q 0 0 0 rg BT 98.99 550.87 Td (operty) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 170.80 550.87 Td (Date ) Tj ET Q q 0 0 0 rg BT 187.46 550.87 Td (Acquir) Tj ET Q q 0 0 0 rg BT 209.69 550.87 Td (ed) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 244.10 550.87 Td (City) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 283.35 550.87 Td (State) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 312.15 558.37 Td (Pr) Tj ET Q q 0 0 0 rg BT 319.99 558.37 Td (operty) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 318.65 550.87 Td (T) Tj ET Q q 0 0 0 rg BT 323.37 550.87 Td (ype) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 354.60 558.37 Td (T) Tj ET Q q 0 0 0 rg BT 359.26 558.37 Td (otal Real Estate) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 370.60 550.87 Td (at Cost) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 432.25 565.87 Td (Accumulated ) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 432.90 558.37 Td (Depr) Tj ET Q q 0 0 0 rg BT 449.01 558.37 Td (eciation) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 425.25 550.87 Td (and ) Tj ET Q q 0 0 0 rg BT 438.80 550.87 Td (Amortization) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 499.20 558.37 Td (T) Tj ET Q q 0 0 0 rg BT 503.51 558.37 Td (otal Real Estate,) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 521.85 550.87 Td (Net) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 536.90 Td (V) Tj ET Q q 0 0 0 rg BT 57.43 536.90 Td (on Karman ) Tj ET Q q 0 0 0 rg BT 92.29 536.90 Td (T) Tj ET Q q 0 0 0 rg BT 96.54 536.90 Td (ech Center) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 176.90 536.90 Td (08/12/2015) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 242.00 536.90 Td (Irvine) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 286.45 536.90 Td (CA) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 316.95 536.90 Td (Of) Tj ET Q q 0 0 0 rg BT 324.80 536.90 Td (fice) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 352.50 536.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 391.35 536.90 Td (20,825) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 421.50 536.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.60 536.90 Td (\(1,833) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 486.00 536.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 495.50 536.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.35 536.90 Td (18,992) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 522.90 Td (Commonwealth Building) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 176.90 522.90 Td (06/30/2016) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.25 522.90 Td (Portland) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 286.25 522.90 Td (OR) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 316.95 522.90 Td (Of) Tj ET Q q 0 0 0 rg BT 324.80 522.90 Td (fice) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 391.35 522.90 Td (76,531) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.60 522.90 Td (\(5,524) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 486.00 522.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.35 522.90 Td (71,007) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 508.90 Td (The Of) Tj ET Q q 0 0 0 rg BT 73.88 508.90 Td (fices at Greenhouse) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 177.05 508.90 Td (1) Tj ET Q q 0 0 0 rg BT 180.66 508.90 Td (1/14/2016) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.25 508.90 Td (Houston) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 286.50 508.90 Td (TX) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 316.95 508.90 Td (Of) Tj ET Q q 0 0 0 rg BT 324.80 508.90 Td (fice) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 391.35 508.90 Td (47,241) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.60 508.90 Td (\(3,313) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 486.00 508.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.35 508.90 Td (43,928) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 494.90 Td (Institute Property) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 177.05 494.90 Td (1) Tj ET Q q 0 0 0 rg BT 180.66 494.90 Td (1/09/2017) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 238.50 494.90 Td (Chicago) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 288.05 494.90 Td (IL) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 316.95 494.90 Td (Of) Tj ET Q q 0 0 0 rg BT 324.73 494.90 Td (fice) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 391.35 494.90 Td (46,265) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 472.25 494.90 Td (\(897) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 486.00 494.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.35 494.90 Td (45,368) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 352.50 480.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 387.60 480.90 Td (190,862) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 421.50 480.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 462.85 480.90 Td (\(1) Tj ET Q q 0 0 0 rg BT 469.10 480.90 Td (1,567) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 486.00 480.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 495.50 480.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 535.60 480.90 Td (179,295) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 453.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 453.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.54 453.25 Td (, the following properties represented more than 10% of the Company) Tj ET Q q 0 0 0 rg BT 444.52 453.25 Td (s total assets:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 405.75 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 137.00 405.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 405.75 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 195.00 405.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 199.00 405.75 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 405.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 405.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.00 405.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 405.75 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 405.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 405.75 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 405.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 405.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 405.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.00 405.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 377.75 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 137.00 377.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 377.75 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 195.00 377.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 199.00 377.75 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 377.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 377.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.00 377.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 377.75 54.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 377.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 377.75 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 377.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 453.00 377.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 377.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.00 377.75 51.00 -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 50 405.75 m 137 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 141 405.75 m 195 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199 405.75 m 246 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250 405.75 m 317 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 405.75 m 375 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 405.75 m 449 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 405.75 m 508 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 405.75 m 563 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 405.75 m 137 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 141 405.75 m 195 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199 405.75 m 246 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250 405.75 m 317 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 405.75 m 375 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 405.75 m 449 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 405.75 m 508 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 405.75 m 563 405.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 77.70 409.98 Td (Pr) Tj ET Q q 0 0 0 rg BT 86.07 409.98 Td (operty) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 152.35 409.98 Td (Location) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 206.65 417.98 Td (Rentable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 201.50 409.98 Td (Squar) Tj ET Q q 0 0 0 rg BT 222.33 409.98 Td (e Feet) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 252.80 425.98 Td (T) Tj ET Q q 0 0 0 rg BT 257.40 425.98 Td (otal Real Estate, ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 277.00 417.98 Td (Net ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 258.65 409.98 Td (\(in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 324.35 417.98 Td (Per) Tj ET Q q 0 0 0 rg BT 336.19 417.98 Td (centage of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 327.30 409.98 Td (T) Tj ET Q q 0 0 0 rg BT 331.90 409.98 Td (otal ) Tj ET Q q 0 0 0 rg BT 346.35 409.98 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.90 425.98 Td (Annualized Base ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.25 417.98 Td (Rent) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.10 409.98 Td (\(in thousands\)) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 434.79 413.61 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.05 433.98 Td (A) Tj ET Q q 0 0 0 rg BT 471.53 433.98 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.40 425.98 Td (Annualized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.05 417.98 Td (Base Rent per) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 470.55 409.98 Td (sq. ft.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.85 409.98 Td (Occupancy) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 395.90 Td (V) Tj ET Q q 0 0 0 rg BT 57.43 395.90 Td (on Karman ) Tj ET Q q 0 0 0 rg BT 92.29 395.90 Td (T) Tj ET Q q 0 0 0 rg BT 96.54 395.90 Td (ech Center) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 150.60 396.00 Td (Irvine, CA) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 216.75 396.00 Td (101,161) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 252.50 396.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 291.80 396.00 Td (18,992) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 396.00 Td (10.1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 396.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 396.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 396.00 Td (2,243) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.50 396.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.80 396.00 Td (22.83) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 396.00 Td (97.1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 396.00 Td (%) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 381.90 Td (Commonwealth Building) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 146.35 382.00 Td (Portland, OR) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 216.75 382.00 Td (224,122) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 291.80 382.00 Td (71,007) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 382.00 Td (37.9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 382.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 382.00 Td (5,575) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.80 382.00 Td (26.02) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 382.00 Td (95.6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 382.00 Td (%) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 367.90 Td (The Of) Tj ET Q q 0 0 0 rg BT 73.88 367.90 Td (fices at Greenhouse) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 146.65 368.00 Td (Houston, ) Tj ET Q q 0 0 0 rg BT 177.69 368.00 Td (TX) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 216.75 368.00 Td (203,284) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 291.80 368.00 Td (43,928) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 368.00 Td (23.5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 368.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 368.00 Td (4,201) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.80 368.00 Td (20.66) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.75 368.00 Td (100.0) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 368.00 Td (%) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 353.90 Td (Institute Property) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 148.50 354.00 Td (Chicago, IL) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 216.75 354.00 Td (155,385) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 291.80 354.00 Td (45,368) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 354.00 Td (24.2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 354.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 354.00 Td (3,767) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.80 354.00 Td (25.37) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 354.00 Td (95.5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 354.00 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 329.27 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 325.65 Td (Annualized base rent represents annualized contractual base rental income as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.30 325.65 Td (March31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.18 325.65 Td (, adjusted to straight-line any contractual tenant concessions ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 316.05 Td (\(including free rent\), rent increases and rent decreases from the lease) Tj ET Q q 0 0 0 rg BT 271.84 316.05 Td (s inception through the balance of the lease term.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 292.05 Td (Operating Leases) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 274.05 Td (The Company) Tj ET Q q 0 0 0 rg BT 131.71 274.05 Td (s real estate properties are leased to tenants under operating leases for which the terms and expirations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.05 Td (vary) Tj ET Q q 0 0 0 rg BT 66.62 262.05 Td (. ) Tj ET Q q 0 0 0 rg BT 73.57 262.05 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.01 262.05 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.61 262.05 Td (, the leases had remaining terms, excluding options to extend, of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.32 262.05 Td (9.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.82 262.05 Td ( years with a weighted-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.05 Td (average remaining term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.78 250.05 Td (4.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.28 250.05 Td (years. Some of the leases have provisions to extend the term of the leases, options for early ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.05 Td (termination for all or a part of the leased premises after paying a specified penalty) Tj ET Q q 0 0 0 rg BT 376.50 238.05 Td (, and other terms and conditions as negotiated. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.05 Td (The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.05 Td (Generally) Tj ET Q q 0 0 0 rg BT 88.27 214.05 Td (, upon the execution of a lease, the Company requires a security deposit from the tenant in the form of a cash deposit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.05 Td (and/or a letter of credit. ) Tj ET Q q 0 0 0 rg BT 148.44 202.05 Td (The amount required as a security deposit varies depending upon the terms of the respective lease and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.05 Td (the creditworthiness of the tenant, but generally is not a significant amount. ) Tj ET Q q 0 0 0 rg BT 356.18 190.05 Td (Therefore, exposure to credit risk exists to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.05 Td (extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.05 Td (tenant leases are included in other liabilities in the accompanying consolidated balance sheets and totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.96 166.05 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.85 166.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.29 166.05 Td ($1.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.05 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 154.05 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.55 154.05 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.15 154.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.59 154.05 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.17 154.05 Td (, respectively) Tj ET Q q 0 0 0 rg BT 316.83 154.05 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 136.05 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 136.05 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 136.05 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.36 136.05 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.96 136.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.39 136.05 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.39 136.05 Td (, the Company recognized deferred rent from tenants, net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.05 Td (lease incentive amortization, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.50 124.05 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.39 124.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.83 124.05 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.72 124.05 Td (, respectively) Tj ET Q q 0 0 0 rg BT 347.39 124.05 Td (. ) Tj ET Q q 0 0 0 rg BT 354.33 124.05 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.78 124.05 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.38 124.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.81 124.05 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.40 124.05 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.05 Td (cumulative deferred rent balance was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.37 112.05 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.26 112.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.70 112.05 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.59 112.05 Td (, respectively) Tj ET Q q 0 0 0 rg BT 371.25 112.05 Td (, and is included in rents and other receivables ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.05 Td (on the accompanying balance sheets. ) Tj ET Q q 0 0 0 rg BT 199.82 100.05 Td (The cumulative deferred rent balance included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.61 100.05 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.50 100.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.94 100.05 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.83 100.05 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 88.05 Td (unamortized lease incentives as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.17 88.05 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.77 88.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.21 88.05 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.79 88.05 Td (, respectively) Tj ET Q q 0 0 0 rg BT 403.45 88.05 Td (.) Tj ET Q endstream endobj 27 0 obj <>] /Rotate 0 /Contents 28 0 R>> endobj 28 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) 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 72.00 632.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 632.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 632.10 Td (, the future minimum rental income from the Company) Tj ET Q q 0 0 0 rg BT 383.04 632.10 Td (s properties under its non-cancelable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (operating leases was as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 609.60 361.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 609.60 152.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 581.60 361.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 581.60 152.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 553.60 361.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 553.60 152.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 525.60 361.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 525.60 152.00 -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 411 525.6 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 411 525.6 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 411 512.6 m 563 512.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 510.6 m 563 510.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 601.55 Td (April 1, 2018 through December 31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.50 599.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 599.85 Td (1) Tj ET Q q 0 0 0 rg BT 541.80 599.85 Td (1,109) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 587.55 Td (2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 585.85 Td (14,132) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 573.55 Td (2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 571.85 Td (13,292) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 559.55 Td (2021) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 557.85 Td (1) Tj ET Q q 0 0 0 rg BT 541.80 557.85 Td (1,527) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 545.55 Td (2022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 543.85 Td (9,808) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 531.55 Td (Thereafter) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 529.85 Td (13,084) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.50 515.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 515.85 Td (72,952) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 488.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 488.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 488.10 Td (, the Company had a concentration of credit risk related to ) Tj ET Q q 0 0 0 rg BT 394.96 488.10 Td (AECOM, a tenant in ) Tj ET Q q 0 0 0 rg BT 480.05 488.10 Td (The Of) Tj ET Q q 0 0 0 rg BT 508.46 488.10 Td (fices at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (Greenhouse in the engineering industry) Tj ET Q q 0 0 0 rg BT 206.58 476.10 Td (, which represented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.11 476.10 Td (19%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.44 476.10 Td ( of the Company) Tj ET Q q 0 0 0 rg BT 375.15 476.10 Td (s annualized base rent. ) Tj ET Q q 0 0 0 rg BT 470.49 476.10 Td (The tenant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (individually occupied ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.92 464.10 Td (140,922) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.42 464.10 Td ( rentable square feet or approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.80 464.10 Td (21%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.13 464.10 Td ( of the total rentable square feet of the Company) Tj ET Q q 0 0 0 rg BT 540.45 464.10 Td (s real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (estate portfolio. Of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.03 452.10 Td (140,922) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.53 452.10 Td ( rentable square feet, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.31 452.10 Td (5,195) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.81 452.10 Td ( rentable square feet expires on July 24, 2019, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.42 452.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.42 452.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.92 452.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.91 452.10 Td (-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (extension options, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.71 440.10 Td (135,727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.21 440.10 Td ( rentable square feet expires on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.38 440.10 Td (December31, 2024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.96 440.10 Td (, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.24 440.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.24 440.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.74 440.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.28 440.10 Td (-year extension options. ) Tj ET Q q 0 0 0 rg BT 538.54 440.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.10 428.10 Td (, the annualized base rent for this tenant was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.29 428.10 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.19 428.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.52 428.10 Td ($21.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.02 428.10 Td ( per square foot. No other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (tenant represented more than 10% of the Company) Tj ET Q q 0 0 0 rg BT 255.82 416.10 Td (s annualized base rent. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 398.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 398.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 398.10 Td (, the Company) Tj ET Q q 0 0 0 rg BT 221.42 398.10 Td (s real estate properties were leased to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.00 398.10 Td (80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.00 398.10 Td ( tenants over a diverse range ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (of industries. ) Tj ET Q q 0 0 0 rg BT 106.54 386.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 166.25 386.10 Td (s highest tenant industry concentration \(greater than 10%of annualized base rent\) was as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 354.60 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 354.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 354.60 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.00 354.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.00 354.60 103.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 354.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 354.60 103.00 -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 50 354.6 m 283 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 354.6 m 348 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 354.6 m 455 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 354.6 m 562 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 354.6 m 283 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 354.6 m 348 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 354.6 m 455 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 354.6 m 562 354.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 358.83 Td (Industry) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 298.50 366.83 Td (Number) Tj ET Q q 0 0 0 rg BT 326.87 366.83 Td (of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 303.55 358.83 Td (T) Tj ET Q q 0 0 0 rg BT 308.52 358.83 Td (enants) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.15 366.83 Td (Annualized BaseRent ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 438.71 370.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.65 358.83 Td (\(in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.50 366.83 Td (Per) Tj ET Q q 0 0 0 rg BT 478.34 366.83 Td (centageof ) Tj ET Q q 0 0 0 rg BT 514.33 366.83 Td (Annualized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.75 358.83 Td (Base Rent) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 344.85 Td (Professional, scientific and technical) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.00 344.85 Td (15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.50 344.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 344.85 Td (5,972) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 344.85 Td (37.8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 344.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 330.85 Td (Information technology) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 315.00 330.85 Td (9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 330.85 Td (2,168) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 330.85 Td (13.7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 330.85 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 306.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 302.50 Td ( ) Tj ET Q q 0 0 0 rg BT 57.12 302.50 Td (Annualized base rent represents annualized contractual base rental income as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.56 302.50 Td (March31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.44 302.50 Td (, adjusted to straight-line any contractual tenant concessions ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 292.90 Td (\(including free rent\), rent increases and rent decreases from the lease) Tj ET Q q 0 0 0 rg BT 271.84 292.90 Td (s inception through the balance of the lease term. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 268.90 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 268.90 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 268.90 Td (, no other tenant industries accounted for more than 10% of annualized base rent. No material tenant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.90 Td (credit issues have been identified at this time. ) Tj ET Q endstream endobj 29 0 obj <>] /Rotate 0 /Contents 30 0 R>> endobj 30 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) 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 /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (4. ) Tj ET Q q 0 0 0 rg BT 72.00 632.25 Td (TENANT) Tj ET Q q 0 0 0 rg BT 113.49 632.25 Td ( ORIGINA) Tj ET Q q 0 0 0 rg BT 160.26 632.25 Td (TION ) Tj ET Q q 0 0 0 rg BT 187.77 632.25 Td (AND ) Tj ET Q q 0 0 0 rg BT 211.38 632.25 Td (ABSORPTION COSTS, ) Tj ET Q q 0 0 0 rg BT 317.24 632.25 Td (ABOVE-MARKET) Tj ET Q q 0 0 0 rg BT 400.96 632.25 Td ( LEASE ) Tj ET Q q 0 0 0 rg BT 438.20 632.25 Td (ASSETS ) Tj ET Q q 0 0 0 rg BT 477.39 632.25 Td (AND BELOW) Tj ET Q q 0 0 0 rg BT 538.97 632.25 Td (-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 620.25 Td (MARKET) Tj ET Q q 0 0 0 rg BT 116.82 620.25 Td ( LEASE LIABILITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 602.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 602.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 602.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.48 602.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.06 602.25 Td (, the Company) Tj ET Q q 0 0 0 rg BT 319.45 602.25 Td (s tenant origination and absorption costs, above-market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (lease assets and below-market lease liabilities \(excluding fully amortized assets and liabilities and accumulated amortization\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 526.75 97.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 147.00 526.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.00 526.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.00 526.75 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 526.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 526.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 526.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.00 526.75 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 526.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 526.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 526.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 526.75 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 498.75 97.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 147.00 498.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.00 498.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.00 498.75 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 498.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 498.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 498.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.00 498.75 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 498.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 498.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 498.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 498.75 72.00 -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 147 540.75 m 207 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207 540.75 m 211 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 540.75 m 283 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 540.75 m 347 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 540.75 m 351 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 540.75 m 423 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 540.75 m 487 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 540.75 m 491 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 540.75 m 563 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147 540.75 m 207 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147 526.75 m 207 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 540.75 m 283 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 526.75 m 283 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 540.75 m 347 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 526.75 m 347 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 540.75 m 351 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 540.75 m 423 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 526.75 m 423 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 540.75 m 487 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 526.75 m 487 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 540.75 m 563 540.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 526.75 m 563 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147 526.75 m 207 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 526.75 m 283 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 526.75 m 347 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 526.75 m 423 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 526.75 m 487 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 526.75 m 563 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147 498.75 m 207 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 498.75 m 283 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 498.75 m 347 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 498.75 m 423 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 498.75 m 487 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 498.75 m 563 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147 498.75 m 207 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147 485.75 m 207 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147 483.75 m 207 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 498.75 m 283 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 485.75 m 283 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 483.75 m 283 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 498.75 m 347 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 485.75 m 347 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 483.75 m 347 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 498.75 m 423 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 485.75 m 423 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 483.75 m 423 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 498.75 m 487 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 485.75 m 487 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 483.75 m 487 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 498.75 m 563 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 485.75 m 563 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 483.75 m 563 483.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 545.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 174.15 552.98 Td (T) Tj ET Q q 0 0 0 rg BT 178.75 552.98 Td (enant Origination and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 184.80 544.98 Td (Absorption Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 329.35 552.98 Td (Above-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.25 544.98 Td (Lease ) Tj ET Q q 0 0 0 rg BT 354.36 544.98 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.80 552.98 Td (Below-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.60 544.98 Td (Lease Liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 150.00 530.98 Td (Mar) Tj ET Q q 0 0 0 rg BT 165.03 530.98 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 214.25 530.98 Td (December) Tj ET Q q 0 0 0 rg BT 248.82 530.98 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.00 530.98 Td (Mar) Tj ET Q q 0 0 0 rg BT 305.03 530.98 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.25 530.98 Td (December) Tj ET Q q 0 0 0 rg BT 388.82 530.98 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.00 530.98 Td (Mar) Tj ET Q q 0 0 0 rg BT 445.03 530.98 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.25 530.98 Td (December) Tj ET Q q 0 0 0 rg BT 528.75 530.98 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 517.00 Td (Cost) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 149.50 517.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 181.80 517.00 Td (16,849) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 213.50 517.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 517.00 Td (17,047) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.50 517.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.80 517.00 Td (213) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.50 517.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 517.00 Td (213) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.50 517.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.10 517.00 Td (\(7,693) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 517.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.50 517.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 517.00 Td (\(7,838) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 517.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 503.00 Td (Accumulated ) Tj ET Q q 0 0 0 rg BT 96.93 503.00 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.10 503.00 Td (\(4,100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 203.80 503.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.10 503.00 Td (\(3,480) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 279.80 503.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.10 503.00 Td (\(41) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 343.80 503.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.10 503.00 Td (\(33) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.80 503.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 503.00 Td (2,238) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 503.00 Td (1,928) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 489.00 Td (Net ) Tj ET Q q 0 0 0 rg BT 65.61 489.00 Td (Amount) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 149.50 489.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 181.80 489.00 Td (12,749) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 213.50 489.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 489.00 Td (13,567) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.50 489.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.80 489.00 Td (172) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.50 489.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 489.00 Td (180) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.50 489.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.10 489.00 Td (\(5,455) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 489.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.50 489.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 489.00 Td (\(5,910) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 489.00 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 461.25 Td (Increases \(decreases\) in net income as a result of amortization of the Company) Tj ET Q q 0 0 0 rg BT 391.16 461.25 Td (s tenant origination and absorption costs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.25 Td (above-market lease assets and below-market lease liabilities for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.34 449.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.32 449.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 449.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.75 449.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.18 449.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.18 449.25 Td ( were as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.25 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 364.75 152.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 202.00 364.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.00 364.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.00 364.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.00 364.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 364.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 364.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 364.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 364.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 364.75 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 364.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 364.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 364.75 56.00 -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 206 399.75 m 262 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 399.75 m 266 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266 399.75 m 322 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 399.75 m 382 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 399.75 m 386 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 399.75 m 442 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 399.75 m 503 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 399.75 m 507 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 399.75 m 563 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206 399.75 m 262 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206 378.75 m 262 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 399.75 m 266 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 378.75 m 266 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266 399.75 m 322 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266 378.75 m 322 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 399.75 m 382 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 378.75 m 382 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 399.75 m 386 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 378.75 m 386 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 399.75 m 442 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 378.75 m 442 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 399.75 m 503 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 378.75 m 503 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 399.75 m 507 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 378.75 m 507 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 399.75 m 563 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 378.75 m 563 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206 378.75 m 262 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206 364.75 m 262 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 378.75 m 266 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266 378.75 m 322 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266 364.75 m 322 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 378.75 m 382 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 364.75 m 382 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 378.75 m 386 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 378.75 m 442 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 364.75 m 442 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 378.75 m 503 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 364.75 m 503 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 378.75 m 507 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 378.75 m 563 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 364.75 m 563 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206 364.75 m 262 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266 364.75 m 322 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 364.75 m 382 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 364.75 m 442 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 364.75 m 503 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 364.75 m 563 364.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 223.15 411.98 Td (T) Tj ET Q q 0 0 0 rg BT 227.75 411.98 Td (enant Originationand) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 233.80 403.98 Td (Absorption Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.35 411.98 Td (Above-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 362.25 403.98 Td (Lease ) Tj ET Q q 0 0 0 rg BT 383.36 403.98 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 479.80 411.98 Td (Below-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.60 403.98 Td (Lease Liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 213.70 390.98 Td (For) Tj ET Q q 0 0 0 rg BT 226.07 390.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 240.58 390.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 253.78 390.98 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 246.00 382.98 Td (Mar) Tj ET Q q 0 0 0 rg BT 261.03 382.98 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.70 390.98 Td (For) Tj ET Q q 0 0 0 rg BT 346.07 390.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 360.58 390.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 373.78 390.98 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.00 382.98 Td (Mar) Tj ET Q q 0 0 0 rg BT 381.03 382.98 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.70 390.98 Td (For) Tj ET Q q 0 0 0 rg BT 466.99 390.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 481.51 390.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 494.70 390.98 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.00 382.98 Td (Mar) Tj ET Q q 0 0 0 rg BT 501.96 382.98 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 225.50 368.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.50 368.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 345.50 368.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.50 368.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.50 368.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.50 368.98 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 355.00 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.50 355.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.10 355.00 Td (\(818) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 258.80 355.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.50 355.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.10 355.00 Td (\(633) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.80 355.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.50 355.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 372.10 355.00 Td (\(8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.80 355.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.50 355.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 432.10 355.00 Td (\(8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 438.80 355.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.50 355.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 355.00 Td (455) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 509.50 355.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 355.00 Td (351) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 327.25 Td (5. ) Tj ET Q q 0 0 0 rg BT 72.00 327.25 Td (NOTES P) Tj ET Q q 0 0 0 rg BT 113.77 327.25 Td (A) Tj ET Q q 0 0 0 rg BT 120.07 327.25 Td (Y) Tj ET Q q 0 0 0 rg BT 126.38 327.25 Td (ABLE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 309.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 309.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 309.25 Td (, the Company) Tj ET Q q 0 0 0 rg BT 221.42 309.25 Td (s notes payable consisted of the following \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 268.75 147.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 196.00 268.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 268.75 63.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.00 268.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 268.75 62.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 268.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 268.75 69.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 268.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 268.75 68.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 268.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 268.75 37.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 268.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 268.75 43.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 228.75 147.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 196.00 228.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 228.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.00 228.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 228.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 228.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 228.75 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 228.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 228.75 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 228.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 228.75 37.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 228.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 228.75 43.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 200.75 147.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 196.00 200.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 200.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.00 200.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 200.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 200.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 200.75 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 200.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 200.75 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 200.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 200.75 37.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 200.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 200.75 43.00 -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 200 268.75 m 263 268.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 268.75 m 329 268.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 268.75 m 402 268.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 268.75 m 474 268.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 268.75 m 515 268.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519 268.75 m 562 268.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 228.75 m 263 228.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 228.75 m 329 228.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 200.75 m 263 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 200.75 m 329 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 187.75 m 263 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 185.75 m 263 185.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 187.75 m 329 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 185.75 m 329 185.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 202.65 280.98 Td (Book ) Tj ET Q q 0 0 0 rg BT 222.36 280.98 Td (V) Tj ET Q q 0 0 0 rg BT 227.70 280.98 Td (alue as of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 204.50 272.98 Td (Mar) Tj ET Q q 0 0 0 rg BT 219.53 272.98 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 273.45 288.98 Td (Book ) Tj ET Q q 0 0 0 rg BT 293.09 288.98 Td (V) Tj ET Q q 0 0 0 rg BT 298.13 288.98 Td (alue as) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 269.90 280.98 Td (of December) Tj ET Q q 0 0 0 rg BT 313.06 280.98 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.50 272.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.30 288.98 Td (Contractual) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.85 280.98 Td (Inter) Tj ET Q q 0 0 0 rg BT 353.03 280.98 Td (est Rate as of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.45 272.98 Td (Mar) Tj ET Q q 0 0 0 rg BT 351.41 272.98 Td (ch 31, 2018 ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 391.41 276.61 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.10 288.98 Td (Effective Inter) Tj ET Q q 0 0 0 rg BT 459.49 288.98 Td (est ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.15 280.98 Td (Rate at) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.95 272.98 Td (Mar) Tj ET Q q 0 0 0 rg BT 423.91 272.98 Td (ch 31, 2018 ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 463.91 276.61 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.85 280.98 Td (Payment ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.60 272.98 Td (T) Tj ET Q q 0 0 0 rg BT 492.34 272.98 Td (ype) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 504.34 276.61 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.40 280.98 Td (Maturity ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.95 272.98 Td (Date ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 545.94 276.61 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 253.00 Td (Commonwealth Building Mortgage Loan ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 186.15 256.63 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.50 253.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 237.80 253.00 Td (45,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 269.50 253.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.80 253.00 Td (41,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 335.75 260.70 Td (One-month LIBOR) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.40 252.70 Td (+ 1.80%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.15 253.00 Td (3.47%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.00 260.70 Td (Interest) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.00 252.70 Td (Only) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 521.75 253.00 Td (02/01/2023) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 232.90 Td (T) Tj ET Q q 0 0 0 rg BT 55.56 232.90 Td (erm Loan ) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 86.38 236.30 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 237.80 233.00 Td (72,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.80 233.00 Td (72,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 335.75 240.70 Td (One-month LIBOR) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.40 232.70 Td (+ 2.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.15 233.00 Td (3.67%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.00 240.70 Td (Interest ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.00 232.70 Td (Only) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 521.90 233.00 Td (1) Tj ET Q q 0 0 0 rg BT 525.60 233.00 Td (1/09/2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.50 219.00 Td (Notes payable principal outstanding) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.50 219.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.80 219.00 Td (1) Tj ET Q q 0 0 0 rg BT 237.80 219.00 Td (17,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 269.50 219.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.80 219.00 Td (1) Tj ET Q q 0 0 0 rg BT 303.80 219.00 Td (13,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 205.00 Td (Deferred financing costs, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.10 205.00 Td (\(1,205) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.80 205.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 305.10 205.00 Td (\(1,020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 205.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.50 191.00 Td (Notes payable, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.50 191.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.80 191.00 Td (1) Tj ET Q q 0 0 0 rg BT 237.80 191.00 Td (16,595) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 269.50 191.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.80 191.00 Td (1) Tj ET Q q 0 0 0 rg BT 303.80 191.00 Td (12,780) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.25 Td (_____________________) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 166.05 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 162.65 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 57.06 162.65 Td (Contractual interest rate represents the interest rate in ef) Tj ET Q q 0 0 0 rg BT 235.95 162.65 Td (fect under the loan as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 315.02 162.65 Td (March31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.90 162.65 Td (. Ef) Tj ET Q q 0 0 0 rg BT 377.31 162.65 Td (fective interest rate is calculated as the actual interest rate ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 153.05 Td (in ef) Tj ET Q q 0 0 0 rg BT 63.79 153.05 Td (fect as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 95.11 153.05 Td (March31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 145.99 153.05 Td ( \(consisting of the contractual interest rate\), using interest rate indices as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.13 153.05 Td (March31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.01 153.05 Td (, where applicable.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 143.85 Td (\(2\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 140.45 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 57.06 140.45 Td (Represents the maturity date as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 167.69 140.45 Td (March31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 218.57 140.45 Td (; subject to certain conditions, the maturity dates of certain loans may be extended beyond the dates shown.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 131.48 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 127.85 Td ( On January 18, 2018, the Company refinanced the Commonwealth Building Mortgage Loan. See below) Tj ET Q q 0 0 0 rg BT 389.86 127.85 Td (, Recent Financing ) Tj ET Q q 0 0 0 rg BT 455.47 127.85 Td (T) Tj ET Q q 0 0 0 rg BT 460.08 127.85 Td (ransactions - Refinancing of the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (Commonwealth Building Mortgage Loan. ) Tj ET Q q 0 0 0 rg BT 189.26 118.25 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.81 118.25 Td (March31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.69 118.25 Td (, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.69 118.25 Td ($45.0 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.80 118.25 Td ( of the Commonwealth Building Mortgage Loan was outstanding and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 531.21 118.25 Td ($6.4 ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 108.65 Td (million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 72.61 108.65 Td ( remained available for future disbursements, subject to certain terms and conditions set forth in the loan documents. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 99.67 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 96.05 Td ( ) Tj ET Q q 0 0 0 rg BT 57.12 96.05 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.68 96.05 Td (March31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 127.55 96.05 Td (, the outstanding balance under the ) Tj ET Q q 0 0 0 rg BT 240.93 96.05 Td (T) Tj ET Q q 0 0 0 rg BT 245.26 96.05 Td (erm Loan consisted of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.57 96.05 Td ($48.5 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.68 96.05 Td ( of term commitment and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.00 96.05 Td ($24.3 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.11 96.05 Td ( of revolving ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 86.45 Td (commitment, which bears interest at a rate per annum equal to ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.76 86.45 Td (2.0%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 267.43 86.45 Td ( over one-month LIBOR. ) Tj ET Q q 0 0 0 rg BT 350.16 86.45 Td (The ) Tj ET Q q 0 0 0 rg BT 364.45 86.45 Td (T) Tj ET Q q 0 0 0 rg BT 368.78 86.45 Td (erm Loan is secured by ) Tj ET Q q 0 0 0 rg BT 445.27 86.45 Td (The Of) Tj ET Q q 0 0 0 rg BT 468.01 86.45 Td (fices at Greenhouse, ) Tj ET Q q 0 0 0 rg BT 534.95 86.45 Td (V) Tj ET Q q 0 0 0 rg BT 539.69 86.45 Td (on ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 76.85 Td (Karman ) Tj ET Q q 0 0 0 rg BT 77.12 76.85 Td (T) Tj ET Q q 0 0 0 rg BT 81.45 76.85 Td (ech and Institute Property) Tj ET Q q 0 0 0 rg BT 163.35 76.85 Td (.) Tj ET Q endstream endobj 31 0 obj <>] /Rotate 0 /Contents 32 0 R>> endobj 32 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) 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 (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 ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.36 632.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.96 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.39 632.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.39 632.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.31 632.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.21 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.64 632.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.54 632.10 Td ( of interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (expense, respectively) Tj ET Q q 0 0 0 rg BT 134.37 620.10 Td (. ) Tj ET Q q 0 0 0 rg BT 141.32 620.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.76 620.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.36 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.80 620.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.38 620.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.38 620.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.27 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.71 620.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.60 620.10 Td ( of interest expense were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (payable, respectively) Tj ET Q q 0 0 0 rg BT 133.25 608.10 Td (. Included in interest expense during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.48 608.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.47 608.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.29 608.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.89 608.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.45 608.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.34 608.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (amortization of deferred financing costs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.88 596.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.77 596.10 Td ( of debt refinancing costs. Included in interest expense during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 584.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.31 584.10 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.91 584.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.46 584.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.35 584.10 Td ( of amortization of deferred financing costs. Interest expense was reduced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.00 572.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.89 572.10 Td ( as a result of a change in fair value of the Company) Tj ET Q q 0 0 0 rg BT 322.48 572.10 Td (s derivative instruments for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.40 572.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.38 572.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.10 560.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 542.10 Td (The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 530.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.93 530.10 Td ( \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 516.60 409.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 516.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 516.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 488.60 409.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 488.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 488.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 460.60 409.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 460.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 460.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 432.60 409.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 432.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 432.60 100.00 -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 463 432.6 m 563 432.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 419.6 m 563 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 417.6 m 563 417.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 506.85 Td (April 1, 2018 through December 31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.50 506.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 506.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 492.85 Td (2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 492.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 478.85 Td (2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 478.85 Td (72,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 464.85 Td (2021) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 464.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 450.85 Td (2022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 450.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 436.85 Td (Thereafter) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 436.85 Td (45,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.50 422.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 422.85 Td (1) Tj ET Q q 0 0 0 rg BT 537.80 422.85 Td (17,800) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (Recent Financing ) Tj ET Q q 0 0 0 rg BT 126.54 395.10 Td (T) Tj ET Q q 0 0 0 rg BT 132.46 395.10 Td (ransactions) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 377.10 Td (Refinancing of the Commonwealth Building Mortgage Loan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 362.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 362.10 Td (January18, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.82 362.10 Td (, the Company) Tj ET Q q 0 0 0 rg BT 212.77 362.10 Td (, through an indirect wholly owned subsidiary \(the Owner\), closed the refinancing of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (the Commonwealth Building Mortgage Loan with an unaf) Tj ET Q q 0 0 0 rg BT 282.33 350.10 Td (filiated lender \(the Refinancing\). ) Tj ET Q q 0 0 0 rg BT 424.58 350.10 Td (The Company repaid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.50 350.10 Td ($41.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 338.10 Td ( of principal in satisfaction of the Commonwealth Building Mortgage Loan. ) Tj ET Q q 0 0 0 rg BT 386.76 338.10 Td (The Refinancing was comprised of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (maximum loan amount of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.37 326.10 Td ($51.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.26 326.10 Td (. ) Tj ET Q q 0 0 0 rg BT 236.71 326.10 Td (At closing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.10 326.10 Td ($45.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.99 326.10 Td ( of the loan was funded and the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.77 326.10 Td ($6.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.66 326.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (was available for future disbursements, subject to certain terms and conditions contained in the loan documents. ) Tj ET Q q 0 0 0 rg BT 499.75 314.10 Td (The loan under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (the Refinancing matures on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.24 302.10 Td (February1, 2023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.84 302.10 Td (, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.12 302.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.12 302.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.62 302.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.06 302.10 Td (-year extension options, subject to certain terms and conditions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (contained in the loan documents. Monthly payments are interest-only with the remaining principal balance, all accrued and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (unpaid interest and all other sums due under the loan documents payable at maturity) Tj ET Q q 0 0 0 rg BT 385.70 278.10 Td (. ) Tj ET Q q 0 0 0 rg BT 393.02 278.10 Td (The initial interest rate was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.37 278.10 Td (3.36%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.20 278.10 Td ( with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (the interest rate to be reset as set forth in the loan documents to the greater of a fixed rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.52 266.10 Td (2.05%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.35 266.10 Td ( or a floating rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.54 266.10 Td (180) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.54 266.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (basis points over one-month LIBOR. If the LIBOR rate is equal to or greater than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.31 254.10 Td (2.90%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.14 254.10 Td ( for five consecutive business days, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (Company has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.72 242.10 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.72 242.10 Td ( days to enter into an interest rate cap agreement with a LIBOR strike rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.49 242.10 Td (3.90%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.32 242.10 Td ( or less. ) Tj ET Q q 0 0 0 rg BT 484.47 242.10 Td (The Company has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (the right to prepay all or a portion of the loan under the Refinancing commencing on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.51 230.10 Td (February1, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.11 230.10 Td (, subject to certain fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (and conditions contained in the loan documents.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 200.10 Td (KBS GI REIT) Tj ET Q q 0 0 0 rg BT 128.54 200.10 Td ( Properties, LLC \(KBS GI REIT) Tj ET Q q 0 0 0 rg BT 262.78 200.10 Td ( Properties\), the Company) Tj ET Q q 0 0 0 rg BT 374.98 200.10 Td (s wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 481.27 200.10 Td (, in connection with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (the Refinancing, is providing a guaranty of the payment of certain potential liabilities, costs, losses, damages, fees and expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (incurred by the lender relating to the loan under the Refinancing as a result of certain intentional actions or omissions of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (Owner in violation of the loan documents, or certain other occurrences in relation to the Commonwealth Building and/or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (Owner) Tj ET Q q 0 0 0 rg BT 76.31 152.10 Td (, including the recovery of certain funds under the loan documents, as further described in the guaranty) Tj ET Q q 0 0 0 rg BT 487.74 152.10 Td (. KBS GI REIT) Tj ET Q q 0 0 0 rg BT 549.78 152.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (Properties is also providing a guaranty of the principal balance and any interest or other sums outstanding under the loan of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (Refinancing in the event of: certain bankruptcy) Tj ET Q q 0 0 0 rg BT 237.67 128.10 Td (, insolvency or related proceedings involving the Owner as described in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (guaranty; and any transfer of the Owner) Tj ET Q q 0 0 0 rg BT 209.81 116.10 Td () Tj ET Q q 0 0 0 rg BT 212.59 116.10 Td (s interest in the Commonwealth Building in violation of the loan documents.) 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. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (6. ) Tj ET Q q 0 0 0 rg BT 72.00 632.25 Td (DERIV) Tj ET Q q 0 0 0 rg BT 102.94 632.25 Td (A) Tj ET Q q 0 0 0 rg BT 109.42 632.25 Td (TIVE INSTRUMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 614.25 Td (The Company enters into derivative instruments for risk management purposes to hedge its exposure to cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (variability caused by changing interest rates. ) Tj ET Q q 0 0 0 rg BT 232.59 602.25 Td (The primary goal of the Company) Tj ET Q q 0 0 0 rg BT 371.72 602.25 Td (s risk management practices related to interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (rate risk is to prevent changes in interest rates from adversely impacting the Company) Tj ET Q q 0 0 0 rg BT 396.34 590.25 Td (s ability to achieve its investment return ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (objectives. ) Tj ET Q q 0 0 0 rg BT 97.36 578.25 Td (The Company does not enter into derivatives for speculative purposes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 560.25 Td (The Company enters into interest rate swaps as a fixed rate payer to mitigate its exposure to rising interest rates on its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (variable rate notes payable. ) Tj ET Q q 0 0 0 rg BT 163.71 548.25 Td (The value of interest rate swaps is primarily impacted by interest rates, market expectations about ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (interest rates, and the remaining life of the instrument. In general, increases in interest rates, or anticipated increases in interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (rates, will increase the value of the fixed rate payer position and decrease the value of the variable rate payer position. ) Tj ET Q q 0 0 0 rg BT 525.41 524.25 Td (As the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (remaining life of the interest rate swap decreases, the value of both positions will generally move towards zero. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 494.25 Td (The following table summarizes the notional amount and other information related to the Company) Tj ET Q q 0 0 0 rg BT 472.18 494.25 Td (s interest rate swaps ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.16 482.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.76 482.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.20 482.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.78 482.25 Td (. ) Tj ET Q q 0 0 0 rg BT 240.10 482.25 Td (The notional amount is an indication of the extent of the Company) Tj ET Q q 0 0 0 rg BT 509.21 482.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks \(dollars in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 406.75 239.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.00 406.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 406.75 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 406.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 406.75 88.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 406.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.00 406.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 406.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 406.75 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 133 427.75 m 183 427.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 427.75 m 187 427.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187 427.75 m 235 427.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 427.75 m 289 427.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 427.75 m 293 427.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 427.75 m 341 427.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 406.75 m 129 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133 406.75 m 183 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 427.75 m 187 427.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187 406.75 m 235 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 406.75 m 289 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 406.75 m 341 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 406.75 m 433 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 406.75 m 492 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 406.75 m 563 406.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 432.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 157.00 431.98 Td (Mar) Tj ET Q q 0 0 0 rg BT 172.03 431.98 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 257.25 431.98 Td (December) Tj ET Q q 0 0 0 rg BT 291.82 431.98 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 432.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.40 426.98 Td (W) Tj ET Q q 0 0 0 rg BT 453.96 426.98 Td (eighted-) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.05 418.98 Td (A) Tj ET Q q 0 0 0 rg BT 455.23 418.98 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.00 410.98 Td ( Fix Pay Rate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.40 433.83 Td (W) Tj ET Q q 0 0 0 rg BT 519.18 433.83 Td (eighted-) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.05 425.83 Td (A) Tj ET Q q 0 0 0 rg BT 520.53 425.83 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 500.20 417.83 Td (Remaining ) Tj ET Q q 0 0 0 rg BT 539.46 417.83 Td (T) Tj ET Q q 0 0 0 rg BT 544.36 417.83 Td (erm) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.25 409.83 Td (in ) Tj ET Q q 0 0 0 rg BT 523.77 409.83 Td (Y) Tj ET Q q 0 0 0 rg BT 528.96 409.83 Td (ears) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 418.98 Td (Derivative) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 410.98 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 139.00 418.98 Td (Number) Tj ET Q q 0 0 0 rg BT 167.37 418.98 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 136.60 410.98 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 195.80 418.98 Td (Notional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 196.45 410.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 245.00 418.98 Td (Number) Tj ET Q q 0 0 0 rg BT 273.37 418.98 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 242.60 410.98 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 301.80 418.98 Td (Notional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 302.45 410.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.55 418.98 Td (Refer) Tj ET Q q 0 0 0 rg BT 372.50 418.98 Td (enceRate as of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 362.00 410.98 Td (Mar) Tj ET Q q 0 0 0 rg BT 376.96 410.98 Td (ch 31, 2018) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 396.98 Td (Derivative instruments not designated as hedging instruments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 376.00 Td (Interest Rate Swaps ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 118.04 379.63 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 155.50 376.00 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 189.50 376.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 209.75 376.00 Td (78,533) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 261.50 376.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 295.50 376.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 315.75 376.00 Td (48,533) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.15 384.00 Td (One-month LIBOR/) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 350.50 376.00 Td (Fixed at 2.07% - 2.82%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.65 376.00 Td (2.36%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 522.00 376.00 Td (3.23) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 360.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 351.27 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 347.65 Td ( Includes a forward interest rate swap in the amount of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 232.17 347.65 Td ($48.5 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 275.28 347.65 Td (, which will become ef) Tj ET Q q 0 0 0 rg BT 348.22 347.65 Td (fective on November 1, 2018 and maturing on November 1, 2021 ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 338.05 Td (and a forward interest rate swap in the amount of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.55 338.05 Td ($30.0 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.67 338.05 Td (, which will become ef) Tj ET Q q 0 0 0 rg BT 324.61 338.05 Td (fective on ) Tj ET Q q 0 0 0 rg BT 357.93 338.05 Td (April 1, 2019 and maturing on November 1, 2022. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 314.05 Td (The following table sets forth the fair value of the Company) Tj ET Q q 0 0 0 rg BT 315.27 314.05 Td (s derivative instruments as well as their classification on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.05 Td (consolidated balance sheets as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.17 302.05 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.77 302.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.21 302.05 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.79 302.05 Td ( \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 250.55 405.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 250.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 250.55 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 250.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 250.55 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 222.55 91.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 222.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 145.00 222.55 202.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 222.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.00 222.55 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 222.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 222.55 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 222.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 222.55 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 222.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 222.55 50.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 271.54999999999995 m 401 271.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 271.54999999999995 m 405 271.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 271.54999999999995 m 455 271.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 271.54999999999995 m 509 271.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 271.54999999999995 m 513 271.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 271.54999999999995 m 563 271.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 250.54999999999995 m 141 250.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 250.54999999999995 m 347 250.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 250.54999999999995 m 401 250.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 250.54999999999995 m 455 250.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 250.54999999999995 m 509 250.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 250.54999999999995 m 563 250.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 223.54999999999995 m 455 223.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 221.54999999999995 m 455 221.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 223.54999999999995 m 563 223.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 221.54999999999995 m 563 221.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 209.54999999999995 m 455 209.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 207.54999999999995 m 455 207.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 209.54999999999995 m 563 209.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 207.54999999999995 m 563 207.54999999999995 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.00 275.78 Td (Mar) Tj ET Q q 0 0 0 rg BT 391.03 275.78 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.25 275.78 Td (December) Tj ET Q q 0 0 0 rg BT 512.82 275.78 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 254.78 Td (Derivative Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 147.50 254.78 Td (Balance Sheet Location) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 357.00 262.78 Td (Number) Tj ET Q q 0 0 0 rg BT 385.37 262.78 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.60 254.78 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 411.65 254.78 Td (Fair) Tj ET Q q 0 0 0 rg BT 426.24 254.78 Td ( ) Tj ET Q q 0 0 0 rg BT 428.09 254.78 Td (V) Tj ET Q q 0 0 0 rg BT 433.43 254.78 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.00 262.78 Td (Number) Tj ET Q q 0 0 0 rg BT 493.37 262.78 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.60 254.78 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.65 254.78 Td (Fair) Tj ET Q q 0 0 0 rg BT 534.17 254.78 Td ( ) Tj ET Q q 0 0 0 rg BT 536.02 254.78 Td (V) Tj ET Q q 0 0 0 rg BT 541.06 254.78 Td (alue) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 240.78 Td (Derivative instruments not designated as hedging instruments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 226.80 Td (Interest Rate Swaps) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 226.80 Td (Prepaid expenses and other assets, at fair value) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.50 226.80 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 226.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.80 226.80 Td (723) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.50 226.80 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 515.50 226.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 226.80 Td (178) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 212.80 Td (Interest Rate Swaps) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 212.80 Td (Other liabilities, at fair value) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.50 212.80 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 212.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.10 212.80 Td (\(173) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.80 212.80 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.50 212.80 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 515.50 212.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 212.80 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 185.05 Td (The change in fair value of a derivative instrument that is not designated as a cash flow hedge is recorded as interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.05 Td (expense in the accompanying consolidated statements of operations. ) Tj ET Q q 0 0 0 rg BT 325.07 173.05 Td (The following table summarizes the ef) Tj ET Q q 0 0 0 rg BT 479.01 173.05 Td (fects of derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.05 Td (instruments on the Company) Tj ET Q q 0 0 0 rg BT 167.55 161.05 Td (s consolidated statements of operations \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 116.55 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 116.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.00 116.55 98.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.00 116.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 116.55 98.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 88.55 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 88.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.00 88.55 98.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.00 88.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.00 88.55 98.00 -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 363 130.54999999999995 m 461 130.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 130.54999999999995 m 465 130.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 130.54999999999995 m 563 130.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363 130.54999999999995 m 461 130.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363 116.54999999999995 m 461 116.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 130.54999999999995 m 465 130.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 130.54999999999995 m 563 130.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 116.54999999999995 m 563 116.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363 116.54999999999995 m 461 116.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 116.54999999999995 m 563 116.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363 74.54999999999995 m 461 74.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363 60.549999999999955 m 461 60.549999999999955 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 74.54999999999995 m 563 74.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 60.549999999999955 m 563 60.549999999999955 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 134.80 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 394.20 134.78 Td (For) Tj ET Q q 0 0 0 rg BT 406.57 134.78 Td ( the ) Tj ET Q q 0 0 0 rg BT 421.08 134.78 Td (Thr) Tj ET Q q 0 0 0 rg BT 434.28 134.78 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 510.80 134.78 Td (ch 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 120.80 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.50 120.78 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.50 120.78 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 106.78 Td (Income statement r) Tj ET Q q 0 0 0 rg BT 118.55 106.78 Td (elated) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 92.78 Td (Derivatives not designated as hedging instruments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 78.80 Td (Unrealized gain on interest rate swaps) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.50 78.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 443.10 78.80 Td (\(372) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 78.80 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.50 78.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 78.80 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 64.80 Td (Decrease in interest expense as a result of derivatives) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.50 64.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 443.10 64.80 Td (\(372) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 64.80 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.50 64.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 64.80 Td () Tj ET Q BT /F1 10.00 Tf ET endstream endobj 35 0 obj <>] /Rotate 0 /Contents 36 0 R>> endobj 36 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) 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 /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (7. ) Tj ET Q q 0 0 0 rg BT 72.00 632.25 Td (F) Tj ET Q q 0 0 0 rg BT 77.37 632.25 Td (AIR ) Tj ET Q q 0 0 0 rg BT 98.02 632.25 Td (V) Tj ET Q q 0 0 0 rg BT 103.95 632.25 Td (ALUE DISCLOSURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (Under GAAP) Tj ET Q q 0 0 0 rg BT 125.61 614.25 Td (, the Company is required to measure certain financial instruments at fair value on a recurring basis. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (addition, the Company is required to measure other 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 49.50 590.25 Td (\(e.g., carrying value of long-lived assets\). Fair value, as defined under GAAP) Tj ET Q q 0 0 0 rg BT 360.80 590.25 Td (, is the price that would be received upon the sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ) Tj ET Q q 0 0 0 rg BT 528.03 578.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (GAAP) Tj ET Q q 0 0 0 rg BT 76.36 566.25 Td ( fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (following three categories:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 536.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 536.25 Td (Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 524.25 Td (liabilities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 509.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 509.25 Td (Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 497.25 Td (markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 485.25 Td (observable in active markets; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 470.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 470.25 Td (Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 458.25 Td (significant to the fair value measurement and unobservable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 437.25 Td (The fair value for certain financial instruments is derived using a combination of market quotes, pricing models and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.25 Td (valuation techniques that involve significant management judgment. ) Tj ET Q q 0 0 0 rg BT 327.86 425.25 Td (The price transparency of financial instruments is a key ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.25 Td (determinant of the degree of judgment involved in determining the fair value of the Company) Tj ET Q q 0 0 0 rg BT 426.61 413.25 Td (s financial instruments. Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.25 Td (instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (or consist of non-orderly trades. ) Tj ET Q q 0 0 0 rg BT 182.34 377.25 Td (The Company evaluates several factors when determining if a market is inactive or when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.25 Td (market transactions are not orderly) Tj ET Q q 0 0 0 rg BT 188.24 365.25 Td (. ) Tj ET Q q 0 0 0 rg BT 195.56 365.25 Td (The following is a summary of the methods and assumptions used by management in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.25 Td (estimating the fair value of each class of financial 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 72.00 335.25 Td (Cash and cash equivalents, r) Tj ET Q q 0 0 0 rg BT 187.45 335.25 Td (ent and other r) Tj ET Q q 0 0 0 rg BT 246.80 335.25 Td (eceivables, and accounts payable and accrued liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.46 335.25 Td ( ) Tj ET Q q 0 0 0 rg BT 478.78 335.25 Td (These balances ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.25 Td (approximate their fair values due to the short maturities of these items.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 304.05 Td (Derivative instruments:) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 166.70 304.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.45 304.05 Td (The Company) Tj ET Q q 0 0 0 rg BT 229.16 304.05 Td (s derivative instruments are presented at fair value on the accompanying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.05 Td (consolidated balance sheets. ) Tj ET Q q 0 0 0 rg BT 167.33 292.05 Td (The valuation of these instruments is determined using a proprietary model that utilizes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.05 Td (observable inputs. ) Tj ET Q q 0 0 0 rg BT 126.71 280.05 Td (As such, the Company classifies these inputs as Level2 inputs. ) Tj ET Q q 0 0 0 rg BT 384.27 280.05 Td (The proprietary model uses the contractual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.05 Td (terms of the derivatives, including the period to maturity) Tj ET Q q 0 0 0 rg BT 275.18 268.05 Td (, as well as observable market-based inputs, including interest rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.05 Td (curves and volatility) Tj ET Q q 0 0 0 rg BT 130.50 256.05 Td (. ) Tj ET Q q 0 0 0 rg BT 137.82 256.05 Td (The fair values of interest rate swaps are estimated using the market standard methodology of netting the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.05 Td (discounted fixed cash payments and the discounted expected variable cash receipts. ) Tj ET Q q 0 0 0 rg BT 388.36 244.05 Td (The variable cash receipts are based on an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.05 Td (expectation of interest rates \(forward curves\) derived from observable market interest rate curves. In addition, credit valuation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 220.05 Td (adjustments, which consider the impact of any credit risks to the contracts, are incorporated in the fair values to account for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 208.05 Td (potential nonperformance risk. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 190.05 Td (Notes payable:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.26 190.05 Td ( ) Tj ET Q q 0 0 0 rg BT 134.58 190.05 Td (The fair value of the Company) Tj ET Q q 0 0 0 rg BT 260.37 190.05 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 49.50 178.05 Td (management) Tj ET Q q 0 0 0 rg BT 103.37 178.05 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 49.50 166.05 Td (term, loan-to-value ratio, type of collateral and other credit enhancements. ) Tj ET Q q 0 0 0 rg BT 351.04 166.05 Td (Additionally) Tj ET Q q 0 0 0 rg BT 400.95 166.05 Td (, when determining the fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.05 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 49.50 142.05 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 49.50 130.05 Td (quoted prices for similar liabilities when traded as assets or \(ii\) another valuation technique that is consistent with the principles ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.05 Td (of fair value measurement, such as the income approach or the market approach. ) Tj ET Q q 0 0 0 rg BT 376.40 118.05 Td (The Company classifies these inputs as Level ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.05 Td (3 inputs.) Tj ET Q endstream endobj 37 0 obj <>] /Rotate 0 /Contents 38 0 R>> endobj 38 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) 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 72.00 632.10 Td (The following were the face values, carrying amounts and fair values of the Company) Tj ET Q q 0 0 0 rg BT 418.55 632.10 Td (s notes payable as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.80 632.10 Td (March31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 620.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.52 620.10 Td (, which carrying amounts generally do not approximate the fair values \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 568.60 159.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.00 568.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 568.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 568.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 568.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 568.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 568.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 568.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 568.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 568.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 568.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 568.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 568.60 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 213 589.6 m 268 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 589.6 m 272 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 589.6 m 327 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 589.6 m 331 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 589.6 m 386 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 589.6 m 445 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 589.6 m 449 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 589.6 m 504 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 589.6 m 508 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 589.6 m 563 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 568.6 m 268 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 568.6 m 327 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 568.6 m 386 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 568.6 m 445 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 568.6 m 504 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 568.6 m 563 568.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 272.50 593.83 Td (Mar) Tj ET Q q 0 0 0 rg BT 287.53 593.83 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.75 593.83 Td (December) Tj ET Q q 0 0 0 rg BT 478.32 593.83 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 221.40 572.83 Td (Face ) Tj ET Q q 0 0 0 rg BT 239.32 572.83 Td (V) Tj ET Q q 0 0 0 rg BT 244.65 572.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 283.20 580.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 284.95 572.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 340.15 572.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 354.74 572.83 Td ( ) Tj ET Q q 0 0 0 rg BT 356.59 572.83 Td (V) Tj ET Q q 0 0 0 rg BT 361.93 572.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.40 572.83 Td (Face ) Tj ET Q q 0 0 0 rg BT 416.32 572.83 Td (V) Tj ET Q q 0 0 0 rg BT 421.65 572.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.20 580.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.95 572.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.15 572.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 531.67 572.83 Td ( ) Tj ET Q q 0 0 0 rg BT 533.52 572.83 Td (V) Tj ET Q q 0 0 0 rg BT 538.56 572.83 Td (alue) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 558.85 Td (Financial liabilities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 544.85 Td (Notes payable) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 116.04 548.48 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 215.50 544.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 238.75 544.85 Td (1) Tj ET Q q 0 0 0 rg BT 242.75 544.85 Td (17,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 274.50 544.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 297.75 544.85 Td (1) Tj ET Q q 0 0 0 rg BT 301.75 544.85 Td (16,595) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.50 544.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.75 544.85 Td (1) Tj ET Q q 0 0 0 rg BT 360.75 544.85 Td (18,315) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.50 544.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.75 544.85 Td (1) Tj ET Q q 0 0 0 rg BT 419.75 544.85 Td (13,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.50 544.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 474.75 544.85 Td (1) Tj ET Q q 0 0 0 rg BT 478.75 544.85 Td (12,780) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.50 544.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.75 544.85 Td (1) Tj ET Q q 0 0 0 rg BT 537.75 544.85 Td (14,327) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 517.10 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 49.50 505.10 Td (period end and requires a significant amount of judgment. ) Tj ET Q q 0 0 0 rg BT 286.20 505.10 Td (The actual value could be materially dif) Tj ET Q q 0 0 0 rg BT 445.39 505.10 Td (ferent from the Company) Tj ET Q q 0 0 0 rg BT 549.53 505.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td (estimate of value.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 478.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 478.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 478.10 Td (, the Company measured the following asset at fair value \(inthousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 414.60 202.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 414.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 414.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 414.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 414.60 79.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.00 414.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 414.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 414.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 414.60 86.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 386.60 202.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 386.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 386.60 59.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 386.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 386.60 79.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.00 386.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 386.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 386.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 386.60 86.00 -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 319 451.6 m 398 451.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 451.6 m 402 451.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 451.6 m 472 451.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 451.6 m 476 451.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 451.6 m 562 451.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 414.6 m 315 414.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 414.6 m 398 414.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 414.6 m 472 414.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 414.6 m 562 414.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 414.6 m 398 414.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 414.6 m 472 414.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 414.6 m 562 414.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 455.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 258.50 455.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.35 455.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 399.94 455.83 Td ( ) Tj ET Q q 0 0 0 rg BT 401.79 455.83 Td (V) Tj ET Q q 0 0 0 rg BT 407.13 455.83 Td (alue Measur) Tj ET Q q 0 0 0 rg BT 449.13 455.83 Td (ements Using) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 418.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 276.25 418.83 Td (T) Tj ET Q q 0 0 0 rg BT 280.85 418.83 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 329.55 442.83 Td (QuotedPricesin ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.65 434.83 Td (ActiveMarkets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 325.40 426.83 Td (for) Tj ET Q q 0 0 0 rg BT 335.47 426.83 Td ( Identical ) Tj ET Q q 0 0 0 rg BT 369.25 426.83 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.00 418.83 Td (\(Level 1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 406.90 434.83 Td (SignificantOther) Tj ET Q q 0 0 0 rg BT 466.09 434.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.80 426.83 Td (Observable Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.50 418.83 Td (\(Level 2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 500.05 434.83 Td (Significant ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.80 426.83 Td (Unobservable Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.50 418.83 Td (\(Level3\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 404.85 Td (Recurring Basis:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 390.85 Td (Asset derivative - interest rate swap) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 258.50 390.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.80 390.85 Td (723) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 321.50 390.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 386.80 390.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.50 390.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.80 390.85 Td (723) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.50 390.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.80 390.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 376.85 Td (Liability derivative - Interest rate swap) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 297.10 376.85 Td (\(173) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.80 376.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 386.80 376.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.10 376.85 Td (\(173) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.80 376.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.80 376.85 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 349.10 Td (8. ) Tj ET Q q 0 0 0 rg BT 72.00 349.10 Td (RELA) Tj ET Q q 0 0 0 rg BT 99.04 349.10 Td (TED-P) Tj ET Q q 0 0 0 rg BT 128.30 349.10 Td (AR) Tj ET Q q 0 0 0 rg BT 142.39 349.10 Td (TY) Tj ET Q q 0 0 0 rg BT 155.91 349.10 Td ( ) Tj ET Q q 0 0 0 rg BT 158.23 349.10 Td (TRANSACTIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 331.10 Td (Pursuant to the ) Tj ET Q q 0 0 0 rg BT 133.94 331.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 173.11 331.10 Td (Agreement, the Initial Private Of) Tj ET Q q 0 0 0 rg BT 304.83 331.10 Td (fering Dealer Manager ) Tj ET Q q 0 0 0 rg BT 397.84 331.10 Td (Agreement and the Public Of) Tj ET Q q 0 0 0 rg BT 514.85 331.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.10 Td (Dealer Manager ) Tj ET Q q 0 0 0 rg BT 116.13 319.10 Td (Agreement, the Company is or was obligated to pay the ) Tj ET Q q 0 0 0 rg BT 340.80 319.10 Td (Advisor and the Dealer Manager specified fees upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 307.10 Td (the provision of certain services related to the Initial Private Of) Tj ET Q q 0 0 0 rg BT 302.01 307.10 Td (fering and the Public Of) Tj ET Q q 0 0 0 rg BT 398.47 307.10 Td (fering, the investment of funds in real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 295.10 Td (estate, management of the Company) Tj ET Q q 0 0 0 rg BT 198.06 295.10 Td (s investments and for other services \(including, but not limited to, the disposition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.10 Td (investments\). ) Tj ET Q q 0 0 0 rg BT 107.92 283.10 Td (The Company was also obligated to reimburse the ) Tj ET Q q 0 0 0 rg BT 310.66 283.10 Td (Advisor and Dealer Manager for certain or) Tj ET Q q 0 0 0 rg BT 481.51 283.10 Td (ganization and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 271.10 Td (fering costs incurred by the ) Tj ET Q q 0 0 0 rg BT 169.01 271.10 Td (Advisor and the Dealer Manager on behalf of the Company) Tj ET Q q 0 0 0 rg BT 406.34 271.10 Td (, and the Company is obligated to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 259.10 Td (reimburse the ) Tj ET Q q 0 0 0 rg BT 106.15 259.10 Td (Advisor for acquisition and origination expenses and certain operating expenses incurred on behalf of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.10 Td (Company or incurred in connection with providing services to the Company) Tj ET Q q 0 0 0 rg BT 353.79 247.10 Td (. ) Tj ET Q q 0 0 0 rg BT 361.11 247.10 Td (The ) Tj ET Q q 0 0 0 rg BT 378.60 247.10 Td (Advisor is entitled to certain other fees, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.10 Td (including an incentive fee upon achieving certain performance goals, as detailed in the ) Tj ET Q q 0 0 0 rg BT 397.70 235.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 436.87 235.10 Td (Agreement. In addition, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.10 Td (Advisor will pay all of) Tj ET Q q 0 0 0 rg BT 139.86 223.10 Td (fering expenses related to the Second Private Of) Tj ET Q q 0 0 0 rg BT 332.67 223.10 Td (fering without reimbursement by the Company) Tj ET Q q 0 0 0 rg BT 520.04 223.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 205.10 Td (In addition, in connection with certain property acquisitions, the Company) Tj ET Q q 0 0 0 rg BT 369.34 205.10 Td (, through indirect wholly owned subsidiaries, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.10 Td (has entered into separate Property Management ) Tj ET Q q 0 0 0 rg BT 241.65 193.10 Td (Agreements \(defined below\) with KBS Management Group, LLC, an af) Tj ET Q q 0 0 0 rg BT 529.45 193.10 Td (filiate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.10 Td (of the ) Tj ET Q q 0 0 0 rg BT 74.50 181.10 Td (Advisor \(the Co-Manager\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 163.10 Td (The Company has also entered into a fee reimbursement agreement with the Dealer Manager pursuant to which the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (Company agreed to reimburse the Dealer Manager for certain fees and expenses it incurs for administering the Company) Tj ET Q q 0 0 0 rg BT 535.72 151.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (participation in the DTCC ) Tj ET Q q 0 0 0 rg BT 156.15 139.10 Td (Alternative Investment Product Platform with respect to certain accounts of the Company) Tj ET Q q 0 0 0 rg BT 517.44 139.10 Td (s investors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.10 Td (serviced through the platform. ) 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. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) 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 72.00 632.10 Td (The ) Tj ET Q q 0 0 0 rg BT 89.50 632.10 Td (Advisor also serves as the advisor for KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 358.43 632.10 Td (T) Tj ET Q q 0 0 0 rg BT 364.18 632.10 Td (rust, Inc. \(KBS REIT) Tj ET Q q 0 0 0 rg BT 453.71 632.10 Td ( I\), KBS Real Estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (Investment ) Tj ET Q q 0 0 0 rg BT 96.25 620.10 Td (T) Tj ET Q q 0 0 0 rg BT 102.01 620.10 Td (rust II, Inc. \(KBS REIT) Tj ET Q q 0 0 0 rg BT 200.70 620.10 Td ( II\), KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 339.09 620.10 Td (T) Tj ET Q q 0 0 0 rg BT 344.85 620.10 Td (rust III, Inc. \(KBS REIT) Tj ET Q q 0 0 0 rg BT 446.86 620.10 Td ( III\), KBS Strategic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (Opportunity REIT) Tj ET Q q 0 0 0 rg BT 122.36 608.10 Td (, Inc. \(KBS Strategic Opportunity REIT\), KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 387.86 608.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 454.60 608.10 Td (, Inc. \(KBS Legacy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (Partners ) Tj ET Q q 0 0 0 rg BT 84.22 596.10 Td (Apartment REIT\) and KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 312.32 596.10 Td ( II, Inc. \(KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 485.44 596.10 Td ( II\). ) Tj ET Q q 0 0 0 rg BT 507.19 596.10 Td (The Dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (Manager also serves as the dealer manager for KBS REIT) Tj ET Q q 0 0 0 rg BT 281.18 584.10 Td ( II, KBS REIT) Tj ET Q q 0 0 0 rg BT 339.33 584.10 Td ( III, KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 489.68 584.10 Td (, KBS Legacy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (Partners ) Tj ET Q q 0 0 0 rg BT 84.22 572.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 151.52 572.10 Td ( and KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 304.37 572.10 Td ( II. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 554.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 128.28 554.10 Td (, together with KBS REIT) Tj ET Q q 0 0 0 rg BT 232.82 554.10 Td ( I, KBS REIT) Tj ET Q q 0 0 0 rg BT 287.63 554.10 Td ( II, KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 434.65 554.10 Td (, KBS Legacy Partners ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 116.24 542.10 Td (, KBS REIT) Tj ET Q q 0 0 0 rg BT 165.23 542.10 Td ( III, KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 316.14 542.10 Td ( II, the Dealer Manager) Tj ET Q q 0 0 0 rg BT 409.29 542.10 Td (, the ) Tj ET Q q 0 0 0 rg BT 428.46 542.10 Td (Advisor and other KBS af) Tj ET Q q 0 0 0 rg BT 532.71 542.10 Td (filiated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (entities, entered into an errors and omissions and directors and of) Tj ET Q q 0 0 0 rg BT 310.08 530.10 Td (ficers liability insurance program where the lower tiers of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (insurance coverage are shared. ) Tj ET Q q 0 0 0 rg BT 174.52 518.10 Td (The cost of these lower tiers is allocated by the ) Tj ET Q q 0 0 0 rg BT 364.47 518.10 Td (Advisor and its insurance broker among each of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (the various entities covered by the program and is billed directly to each entity) Tj ET Q q 0 0 0 rg BT 362.92 506.10 Td (. ) Tj ET Q q 0 0 0 rg BT 367.74 506.10 Td (The allocation of these shared coverage costs is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (proportionate to the pricing by the insurance marketplace for the first tiers of directors and of) Tj ET Q q 0 0 0 rg BT 421.69 494.10 Td (ficers liability coverage purchased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (individually by each REIT) Tj ET Q q 0 0 0 rg BT 155.12 482.10 Td (. ) Tj ET Q q 0 0 0 rg BT 159.94 482.10 Td (The ) Tj ET Q q 0 0 0 rg BT 177.43 482.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 210.03 482.10 Td () Tj ET Q q 0 0 0 rg BT 212.81 482.10 Td (s and the Dealer Manager) Tj ET Q q 0 0 0 rg BT 315.91 482.10 Td () Tj ET Q q 0 0 0 rg BT 318.68 482.10 Td (s portion of the shared lower tiers) Tj ET Q q 0 0 0 rg BT 455.68 482.10 Td ( cost is proportionate to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (the respective entities) Tj ET Q q 0 0 0 rg BT 138.72 470.10 Td ( prior cost for the errors and omissions insurance. In June 2017, the Company renewed its participation in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (the program, and the program is ef) Tj ET Q q 0 0 0 rg BT 187.88 458.10 Td (fective through June 30, 2018. ) Tj ET Q q 0 0 0 rg BT 311.47 458.10 Td (As KBS REIT) Tj ET Q q 0 0 0 rg BT 369.08 458.10 Td ( I was implementing its plan of liquidation, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (renewal in June 2017, KBS REIT) Tj ET Q q 0 0 0 rg BT 183.74 446.10 Td ( I elected to cease participation in the program and obtain separate insurance coverage.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 428.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 428.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 428.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.36 428.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.96 428.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.39 428.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.39 428.10 Td (, no other business transactions occurred between the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (and KBS REIT) Tj ET Q q 0 0 0 rg BT 110.43 416.10 Td ( I, KBS REIT) Tj ET Q q 0 0 0 rg BT 165.25 416.10 Td ( II, KBS REIT) Tj ET Q q 0 0 0 rg BT 223.40 416.10 Td ( III, KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 373.74 416.10 Td (, KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 467.34 416.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 534.64 416.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 182.92 404.10 Td ( II. ) Tj ET Q endstream endobj 41 0 obj <>] /Rotate 0 /Contents 42 0 R>> endobj 42 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (Pursuant to the terms of these agreements, summarized below are 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 49.50 620.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 620.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.31 620.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.91 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.35 620.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.35 620.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 286.01 620.10 Td (, and any related amounts payable as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.23 620.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.83 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 608.10 Td ( \(in thousands\).) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 549.60 201.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 549.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 549.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 549.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 549.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 549.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 549.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 549.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 521.60 201.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 521.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 521.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 521.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 521.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 521.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 521.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 521.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 493.60 201.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 493.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 493.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 493.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 493.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 493.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 493.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 493.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 465.60 201.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 465.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 465.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 465.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 465.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 465.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 465.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 465.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 437.60 201.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 437.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 437.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 437.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 437.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 437.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 437.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 437.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 409.60 201.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 409.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 409.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 409.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 409.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 409.60 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 409.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 409.60 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 251 577.6 m 326 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 577.6 m 330 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 577.6 m 405 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 577.6 m 484 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 577.6 m 488 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 577.6 m 563 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 577.6 m 326 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 577.6 m 330 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 577.6 m 405 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 577.6 m 484 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 577.6 m 563 577.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 549.6 m 326 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 549.6 m 405 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 549.6 m 484 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 549.6 m 563 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 395.6 m 326 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 395.6 m 405 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 395.6 m 484 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 395.6 m 563 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 395.6 m 326 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 382.6 m 326 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 380.6 m 326 380.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 395.6 m 405 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 382.6 m 405 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 380.6 m 405 380.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 382.6 m 484 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 380.6 m 484 380.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 382.6 m 563 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 380.6 m 563 380.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 312.20 581.83 Td (Incurr) Tj ET Q q 0 0 0 rg BT 334.79 581.83 Td (ed) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.05 581.83 Td (Payable as of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 272.60 567.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 285.86 567.83 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 362.38 567.83 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 280.00 553.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.00 553.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.50 553.83 Td (Mar) Tj ET Q q 0 0 0 rg BT 434.53 553.83 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.75 553.83 Td (December) Tj ET Q q 0 0 0 rg BT 527.25 553.83 Td ( 31, 2017) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 539.83 Td (Expensed) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 525.85 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 130.03 529.48 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.50 525.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 525.85 Td (456) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.50 525.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 525.85 Td (214) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.50 525.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.80 525.85 Td (874) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.50 525.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 525.85 Td (418) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 511.85 Td (Reimbursementofoperatingexpenses ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 176.91 515.48 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.80 511.85 Td (53) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 511.85 Td (54) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 511.85 Td (17) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 511.85 Td (18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 497.85 Td (Property management fees ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 139.80 501.48 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.80 497.85 Td (42) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 497.85 Td (29) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 497.85 Td (20) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 497.85 Td (13) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 483.83 Td (Other ) Tj ET Q q 0 0 0 rg BT 73.46 483.83 Td (Arrangement) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 469.85 Td (Advisor advance for cash distributions ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 178.03 473.48 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.80 469.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 469.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.80 469.85 Td (1,338) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 469.85 Td (1,338) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 455.83 Td (Additional Paid-in Capital) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 441.85 Td (Selling commissions) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.80 441.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 441.85 Td (61) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 441.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 441.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 427.85 Td (Dealer manager fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.80 427.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 427.85 Td (35) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 427.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 427.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 413.85 Td (Stockholder servicing fees ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 139.36 417.48 Td (\(5\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.80 413.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 413.85 Td (51) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 413.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 413.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 399.85 Td (Reimbursable other of) Tj ET Q q 0 0 0 rg BT 123.89 399.85 Td (fering costs ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 162.99 403.48 Td (\(6\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.80 399.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 399.85 Td (23) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 399.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 399.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.50 385.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 385.85 Td (551) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.50 385.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 385.85 Td (467) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.50 385.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.80 385.85 Td (2,249) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.50 385.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 385.85 Td (1,787) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (_____________________) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 361.50 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 358.10 Td ( ) Tj ET Q q 0 0 0 rg BT 56.92 358.10 Td (Through ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 84.21 358.10 Td (August8, 2017) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 130.26 358.10 Td (, the asset management fee payable to the ) Tj ET Q q 0 0 0 rg BT 256.26 358.10 Td (Advisor was a monthly fee equal to one-twelfth of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 409.34 358.10 Td (1.6%) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 424.97 358.10 Td ( of the cost of the Company) Tj ET Q q 0 0 0 rg BT 510.37 358.10 Td (s investments, ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 349.10 Td (less any debt secured by or attributable to the investments. Beginning on ) Tj ET Q q 0 0 0 rg BT 268.84 349.10 Td (August 9, 2017, the asset management fee is a monthly fee payable to the ) Tj ET Q q 0 0 0 rg BT 490.87 349.10 Td (Advisor in an amount ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (equal to one-twelfth of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 119.90 340.10 Td (1.0%) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 135.52 340.10 Td ( of the cost of the Company) Tj ET Q q 0 0 0 rg BT 220.92 340.10 Td (s investments including the portion of the investment that is debt financed. ) Tj ET Q q 0 0 0 rg BT 446.10 340.10 Td (As of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 464.43 340.10 Td (March31, 2018) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 512.13 340.10 Td (, the Company ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 331.10 Td (had accrued and deferred payment of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 162.78 331.10 Td ($0.9 million) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 199.45 331.10 Td ( of asset management fees related to the fourth quarter of 2017 and first quarter of 2018.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 322.50 Td (\(2\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 319.10 Td ( See Reimbursable Operating Expenses below) Tj ET Q q 0 0 0 rg BT 199.86 319.10 Td (.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 310.50 Td (\(3\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 307.10 Td ( See Real Estate Property Co-Management ) Tj ET Q q 0 0 0 rg BT 188.48 307.10 Td (Agreements below) Tj ET Q q 0 0 0 rg BT 247.77 307.10 Td (.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 298.50 Td (\(4\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 295.10 Td ( See Advance from the ) Tj ET Q q 0 0 0 rg BT 128.70 295.10 Td (Advisor below) Tj ET Q q 0 0 0 rg BT 175.91 295.10 Td (.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 286.50 Td (\(5\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 283.10 Td ( ) Tj ET Q q 0 0 0 rg BT 58.80 283.10 Td (The Public Of) Tj ET Q q 0 0 0 rg BT 101.16 283.10 Td (fering was terminated ef) Tj ET Q q 0 0 0 rg BT 174.12 283.10 Td (fective June 30, 2017. Pursuant to the terms of the Class ) Tj ET Q q 0 0 0 rg BT 346.46 283.10 Td (T) Tj ET Q q 0 0 0 rg BT 350.90 283.10 Td ( shares as set forth in the ) Tj ET Q q 0 0 0 rg BT 426.51 283.10 Td (Articles Supplementary and Multiple Class ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (Plan of the Company) Tj ET Q q 0 0 0 rg BT 112.55 274.10 Td (, the Company ceased accruing for stockholder servicing fees after June 30, 2017 and reversed the amounts previously accrued.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 265.50 Td (\(6\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 262.10 Td ( See Or) Tj ET Q q 0 0 0 rg BT 80.87 262.10 Td (ganization and Of) Tj ET Q q 0 0 0 rg BT 134.47 262.10 Td (fering Costs below) Tj ET Q q 0 0 0 rg BT 193.97 262.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (Reimbursable Operating Expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 223.10 Td (Reimbursable operating expenses primarily related to directors and of) Tj ET Q q 0 0 0 rg BT 351.17 223.10 Td (ficers liability insurance, legal fees, state and local ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.10 Td (taxes, accounting software and cybersecurity related expenses incurred by the ) Tj ET Q q 0 0 0 rg BT 362.43 211.10 Td (Advisor under the ) Tj ET Q q 0 0 0 rg BT 436.58 211.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 475.75 211.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 527.50 211.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.10 Td (Company has reimbursed the ) Tj ET Q q 0 0 0 rg BT 168.37 199.10 Td (Advisor for the Company) Tj ET Q q 0 0 0 rg BT 273.63 199.10 Td (s allocable portion of the salaries, benefits and overhead of internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.10 Td (audit department personnel providing services to the Company) Tj ET Q q 0 0 0 rg BT 300.18 187.10 Td (. ) Tj ET Q q 0 0 0 rg BT 307.50 187.10 Td (These amounts totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.97 187.10 Td ($52,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.47 187.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.91 187.10 Td ($52,342) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.41 187.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.79 187.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.77 187.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 175.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.42 175.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.86 175.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.86 175.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 263.52 175.10 Td (, and were the only type of employee costs reimbursed under the ) Tj ET Q q 0 0 0 rg BT 523.72 175.10 Td (Advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.10 Td (Agreement for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.30 163.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.29 163.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.11 163.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.71 163.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.15 163.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 163.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 361.81 163.10 Td (. ) Tj ET Q q 0 0 0 rg BT 366.63 163.10 Td (The Company does not reimburse for employee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (costs in connection with services for which the ) Tj ET Q q 0 0 0 rg BT 238.90 151.10 Td (Advisor earned or earns acquisition, origination or disposition fees \(other than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (reimbursement of travel and communication expenses\) or for the salaries or benefits the ) Tj ET Q q 0 0 0 rg BT 402.99 139.10 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 468.08 139.10 Td (filiates may pay to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 127.10 Td (s executive of) Tj ET Q q 0 0 0 rg BT 146.52 127.10 Td (ficers. In addition to the amounts above, the Company reimburses the ) Tj ET Q q 0 0 0 rg BT 429.23 127.10 Td (Advisor for certain of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 115.10 Td (s direct costs incurred from third parties that were initially paid by the ) Tj ET Q q 0 0 0 rg BT 373.03 115.10 Td (Advisor on behalf of the Company) Tj ET Q q 0 0 0 rg BT 511.52 115.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 97.10 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.26 97.10 Td (fective September 29, 2017, the Company eliminated its obligation to reimburse expenses incurred by the ) Tj ET Q q 0 0 0 rg BT 505.88 97.10 Td (Advisor in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 85.10 Td (connection with providing services pursuant to the ) Tj ET Q q 0 0 0 rg BT 253.63 85.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 292.80 85.10 Td (Agreement, other than \(i\) the allocable portion of the costs of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.10 Td (internal audit department and \(ii\) promotional costs and expenses related to the leasing of properties.) Tj ET Q endstream endobj 43 0 obj <>] /Rotate 0 /Contents 44 0 R>> endobj 44 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (Commencing with the quarter ended December31, 2016, the ) Tj ET Q q 0 0 0 rg BT 318.32 632.10 Td (Advisor must reimburse the Company the amount by which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (the Company) Tj ET Q q 0 0 0 rg BT 105.88 620.10 Td (s aggregate total operating expenses for the four fiscal quarters then ended exceed the greater of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.82 620.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 620.10 Td ( of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 608.10 Td (s average invested assets or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.63 608.10 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.96 608.10 Td ( of the Company) Tj ET Q q 0 0 0 rg BT 291.67 608.10 Td (s net income, unless the conflicts committee has determined that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (such excess expenses were justified based on unusual and non-recurring factors.Operating expenses for the four fiscal quarters ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 584.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.48 584.10 Td ( did not exceed the charter) Tj ET Q q 0 0 0 rg BT 245.06 584.10 Td (-imposed limitation.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (Advance fr) Tj ET Q q 0 0 0 rg BT 96.81 566.10 Td (om the ) Tj ET Q q 0 0 0 rg BT 127.92 566.10 Td (Advisor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 551.10 Td (The ) Tj ET Q q 0 0 0 rg BT 89.50 551.10 Td (Advisor advanced funds to the Company) Tj ET Q q 0 0 0 rg BT 252.42 551.10 Td (, which are non-interest bearing, for distribution record dates through the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (period ended May 31, 2016. ) Tj ET Q q 0 0 0 rg BT 166.70 539.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.15 539.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.74 539.10 Td (, the total advanced funds due to the ) Tj ET Q q 0 0 0 rg BT 401.09 539.10 Td (Advisor from the Company was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 527.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.65 527.10 Td (. ) Tj ET Q q 0 0 0 rg BT 163.47 527.10 Td (The Company is only obligated to repay the ) Tj ET Q q 0 0 0 rg BT 341.21 527.10 Td (Advisor for its advance if and to the extent that:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 509.10 Td (\(i\) ) Tj ET Q q 0 0 0 rg BT 94.50 509.10 Td (the Company) Tj ET Q q 0 0 0 rg BT 150.88 509.10 Td (s modified funds from operations \(MFFO\), as such term is defined by the Institute for Portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 497.10 Td (Alternatives and interpreted by the Company) Tj ET Q q 0 0 0 rg BT 274.08 497.10 Td (, for the immediately preceding month exceeds the amount of cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 485.10 Td (distributions declared for record dates of such prior month \(an MFFO Surplus\), and the Company will pay the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 473.10 Td (Advisor the amount of the MFFO Surplus to reduce the principal amount outstanding under the advance, provided ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 461.10 Td (that such payments shall only be made if management in its sole discretion expects an MFFO Surplus to be recurring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 449.10 Td (for at least the next two calendar quarters, determined on a quarterly basis; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 434.10 Td (\(ii\) ) Tj ET Q q 0 0 0 rg BT 94.50 434.10 Td (Excess proceeds from third-party financings are available \(Excess Proceeds\), provided that the amount of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 422.10 Td (such Excess Proceeds that may be used to repay the principal amount outstanding under the advance shall be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 410.10 Td (determined by the conflicts committee in its sole discretion.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 389.10 Td (In determining whether Excess Proceeds are available to repay the advance, the Company) Tj ET Q q 0 0 0 rg BT 434.36 389.10 Td (s conflicts committee will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.10 Td (consider whether cash on hand could have been used to reduce the amount of third-party financing provided to us. If such cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td (could have been used instead of third-party financing, the third-party financing proceeds will be available to repay the advance.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (Real Estate Pr) Tj ET Q q 0 0 0 rg BT 110.96 347.10 Td (operty Co-Management ) Tj ET Q q 0 0 0 rg BT 214.83 347.10 Td (Agr) Tj ET Q q 0 0 0 rg BT 231.31 347.10 Td (eements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 329.10 Td (In connection with its property acquisitions, the Company) Tj ET Q q 0 0 0 rg BT 303.53 329.10 Td (, through separate, indirect, wholly-owned subsidiaries, entered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (into separate property management agreements \(each, a Property Management ) Tj ET Q q 0 0 0 rg BT 369.92 317.10 Td (Agreement\) with the Co-Manager for each of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (its properties. Under each Property Management ) Tj ET Q q 0 0 0 rg BT 248.33 305.10 Td (Agreement, the Co-Manager will provide certain management services related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (to these properties in addition to those provided by the third-party property managers. In exchange for these services, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (Company will pay the Co-Manager a monthly fee equal to a percentage of the rent, payable and actually collected for the month ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (from each of the properties. Each Property Management ) Tj ET Q q 0 0 0 rg BT 278.86 269.10 Td (Agreement has an initial term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.04 269.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.48 269.10 Td ( year and will be deemed renewed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (for successive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.37 257.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.81 257.10 Td (-year periods provided it is not terminated. Each party may terminate the Property Management ) Tj ET Q q 0 0 0 rg BT 509.91 257.10 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (without cause on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.76 245.10 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 245.10 Td ( days) Tj ET Q q 0 0 0 rg BT 153.18 245.10 Td ( written notice to the other party and may terminate each Property Management ) Tj ET Q q 0 0 0 rg BT 475.85 245.10 Td (Agreement for cause ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.00 233.10 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 233.10 Td ( days) Tj ET Q q 0 0 0 rg BT 90.42 233.10 Td ( written notice to the other party upon the occurrence of certain events as detailed in each Property Management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.10 Td (Agreement.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 190.60 283.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.00 190.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 190.60 110.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 190.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 190.60 110.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 162.60 283.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.00 162.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 162.60 110.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 162.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 162.60 110.00 -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 49 190.60000000000002 m 332 190.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 190.60000000000002 m 447 190.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 190.60000000000002 m 562 190.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 194.83 Td (Pr) Tj ET Q q 0 0 0 rg BT 59.79 194.83 Td (operty Name) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.40 194.83 Td (Effective Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.00 194.83 Td (Annual Fee Per) Tj ET Q q 0 0 0 rg BT 520.18 194.83 Td (centage) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 180.85 Td (V) Tj ET Q q 0 0 0 rg BT 56.76 180.85 Td (on Karman ) Tj ET Q q 0 0 0 rg BT 93.94 180.85 Td (T) Tj ET Q q 0 0 0 rg BT 98.47 180.85 Td (ech Center) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.25 180.85 Td (07/31/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.15 180.85 Td (1.50%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 166.85 Td (Commonwealth Building) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.25 166.85 Td (07/01/2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.15 166.85 Td (1.25%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 152.85 Td (The Of) Tj ET Q q 0 0 0 rg BT 74.31 152.85 Td (fices at Greenhouse) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.40 152.85 Td (1) Tj ET Q q 0 0 0 rg BT 377.25 152.85 Td (1/14/2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.15 152.85 Td (0.25%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 138.85 Td (Institute Property) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.40 138.85 Td (1) Tj ET Q q 0 0 0 rg BT 377.10 138.85 Td (1/09/2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.15 138.85 Td (1.00%) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 111.10 Td (Organization and Offering Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 93.10 Td (Of) Tj ET Q q 0 0 0 rg BT 82.37 93.10 Td (fering costs include all expenses incurred in connection with the of) Tj ET Q q 0 0 0 rg BT 349.89 93.10 Td (ferings of securities by the Company) Tj ET Q q 0 0 0 rg BT 496.70 93.10 Td (. Or) Tj ET Q q 0 0 0 rg BT 514.57 93.10 Td (ganization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.10 Td (costs include all expenses incurred in connection with the formation of the Company) Tj ET Q q 0 0 0 rg BT 388.21 81.10 Td (, including but not limited to legal fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 69.10 Td (other costs to incorporate the Company) Tj ET Q q 0 0 0 rg BT 206.31 69.10 Td (.) Tj ET Q endstream endobj 45 0 obj <>] /Rotate 0 /Contents 46 0 R>> endobj 46 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.04 632.10 Td (ith respect to the Public Of) Tj ET Q q 0 0 0 rg BT 188.33 632.10 Td (fering, the ) Tj ET Q q 0 0 0 rg BT 231.38 632.10 Td (Advisor and the Dealer Manager generally paid the or) Tj ET Q q 0 0 0 rg BT 447.22 632.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 516.46 632.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (expenses of the Company incurred in the Primary Of) Tj ET Q q 0 0 0 rg BT 260.93 620.10 Td (fering \(other than selling commissions, dealer manager fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (stockholder servicing fees\) directly) Tj ET Q q 0 0 0 rg BT 189.63 608.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 590.10 Td (The Company reimbursed the ) Tj ET Q q 0 0 0 rg BT 193.08 590.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 224.91 590.10 Td (, the Dealer Manager and its af) Tj ET Q q 0 0 0 rg BT 348.28 590.10 Td (filiates up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.77 590.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.10 590.10 Td ( of gross proceeds raised in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (Primary Of) Tj ET Q q 0 0 0 rg BT 94.59 578.10 Td (fering for commercially reasonable or) Tj ET Q q 0 0 0 rg BT 246.00 578.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 315.24 578.10 Td (fering expenses \(other than selling commissions, dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (manager fees and stockholder servicing fees\). ) Tj ET Q q 0 0 0 rg BT 234.52 566.10 Td (The ) Tj ET Q q 0 0 0 rg BT 252.01 566.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 283.84 566.10 Td (, the Dealer Manager and their af) Tj ET Q q 0 0 0 rg BT 416.09 566.10 Td (filiates were responsible for all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 554.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 149.93 554.10 Td (fering expenses \(which excludes selling commissions, dealer manager fees and stockholder servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (fees\) paid related to the Primary Of) Tj ET Q q 0 0 0 rg BT 190.93 542.10 Td (fering to the extent they exceeded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.65 542.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.98 542.10 Td ( of gross proceeds raised in the Primary Of) Tj ET Q q 0 0 0 rg BT 513.42 542.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 542.11 542.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (Company did not reimburse the Dealer Manager for wholesaling compensation expenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 512.10 Td (During the Initial Private Of) Tj ET Q q 0 0 0 rg BT 183.63 512.10 Td (fering, the Company was obligated to reimburse the ) Tj ET Q q 0 0 0 rg BT 393.30 512.10 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 464.49 512.10 Td (filiates for all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 500.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 126.89 500.10 Td (fering costs \(excluding wholesaling compensation expenses\) paid by them on behalf of the Company) Tj ET Q q 0 0 0 rg BT 530.31 500.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 482.10 Td (The ) Tj ET Q q 0 0 0 rg BT 89.50 482.10 Td (Advisor has agreed to pay directly all of) Tj ET Q q 0 0 0 rg BT 250.10 482.10 Td (fering expenses related to the Second Private Of) Tj ET Q q 0 0 0 rg BT 442.90 482.10 Td (fering without reimbursement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (by the Company) Tj ET Q q 0 0 0 rg BT 114.95 470.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 452.10 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 452.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.54 452.10 Td (, the ) Tj ET Q q 0 0 0 rg BT 191.70 452.10 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 262.90 452.10 Td (filiates had incurred or) Tj ET Q q 0 0 0 rg BT 353.51 452.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 445.80 452.10 Td (fering costs \(which exclude ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (selling commissions, dealer manager fees and stockholder servicing fees\) on the Company) Tj ET Q q 0 0 0 rg BT 414.40 440.10 Td (s behalf in connection with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (Public Of) Tj ET Q q 0 0 0 rg BT 87.93 428.10 Td (fering of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.39 428.10 Td ($4.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.29 428.10 Td (. ) Tj ET Q q 0 0 0 rg BT 238.73 428.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.18 428.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.78 428.10 Td (, the Company had recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.29 428.10 Td ($39,358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.79 428.10 Td ( of or) Tj ET Q q 0 0 0 rg BT 496.27 428.10 Td (ganization and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (other of) Tj ET Q q 0 0 0 rg BT 80.70 416.10 Td (fering expenses related to the Public Of) Tj ET Q q 0 0 0 rg BT 238.80 416.10 Td (fering, which amounts represent the Company's maximum liability for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 404.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 149.93 404.10 Td (fering costs as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.47 404.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.07 404.10 Td ( based on the limitations described above. ) Tj ET Q q 0 0 0 rg BT 455.97 404.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.42 404.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.02 404.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (Company had recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.30 392.10 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.19 392.10 Td ( of or) Tj ET Q q 0 0 0 rg BT 215.67 392.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 307.96 392.10 Td (fering costs related to the Initial Private Of) Tj ET Q q 0 0 0 rg BT 479.11 392.10 Td (fering. Or) Tj ET Q q 0 0 0 rg BT 518.36 392.10 Td (ganization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (costs were expensed as incurred and of) Tj ET Q q 0 0 0 rg BT 205.37 380.10 Td (fering costs are deferred and char) Tj ET Q q 0 0 0 rg BT 338.72 380.10 Td (ged to stockholders) Tj ET Q q 0 0 0 rg BT 419.08 380.10 Td ( equity as such amounts were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (reimbursed to the ) Tj ET Q q 0 0 0 rg BT 121.43 368.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 153.25 368.10 Td (, the Dealer Manager or their af) Tj ET Q q 0 0 0 rg BT 279.39 368.10 Td (filiates from the gross proceeds of the applicable of) Tj ET Q q 0 0 0 rg BT 484.70 368.10 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 344.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 344.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 344.10 Td (, the ) Tj ET Q q 0 0 0 rg BT 179.21 344.10 Td (Advisor had incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.68 344.10 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.57 344.10 Td ( in of) Tj ET Q q 0 0 0 rg BT 336.50 344.10 Td (fering expenses related to the Second Private Of) Tj ET Q q 0 0 0 rg BT 529.31 344.10 Td (fering. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (9. ) Tj ET Q q 0 0 0 rg BT 72.00 320.10 Td (COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 153.95 320.10 Td (AND CONTINGENCIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (Economic Dependency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 284.10 Td (The Company depends on the ) Tj ET Q q 0 0 0 rg BT 193.37 284.10 Td (Advisor for certain services that are essential to the Company) Tj ET Q q 0 0 0 rg BT 439.03 284.10 Td (, including the identification, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (evaluation, negotiation, acquisition and disposition of investments; management of the daily operations of the Company) Tj ET Q q 0 0 0 rg BT 532.74 272.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (investment portfolio; and other general and administrative responsibilities. In the event that the ) Tj ET Q q 0 0 0 rg BT 431.62 260.10 Td (Advisor is unable to provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (such 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 49.50 230.10 Td (Legal Matters) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 212.10 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 49.50 200.10 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 49.50 188.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.13 188.10 Td (fect on the Company) Tj ET Q q 0 0 0 rg BT 176.49 188.10 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 49.50 176.10 Td (contingency and possible range of loss. ) Tj ET Q q 0 0 0 rg BT 211.14 176.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 261.04 176.10 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 49.50 164.10 Td (proceedings in which the potential loss is deemed to be remote.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (Envir) Tj ET Q q 0 0 0 rg BT 73.77 146.10 Td (onmental) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 128.10 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 49.50 116.10 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 49.50 104.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 104.10 Td (fect on its financial condition or results of operations. However) Tj ET Q q 0 0 0 rg BT 312.45 104.10 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 92.10 Td (the uses and conditions of properties in the vicinity of the Company) Tj ET Q q 0 0 0 rg BT 323.62 92.10 Td (s property) Tj ET Q q 0 0 0 rg BT 363.24 92.10 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 80.10 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 68.10 Td (liabilities.) Tj ET Q endstream endobj 47 0 obj <>] /Rotate 0 /Contents 48 0 R>> endobj 48 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 712.60 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 712.60 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 274.20 676.60 Td (March 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (22) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (10. ) 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 (Cash Distributions Paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 578.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.67 578.25 Td (April 2, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.28 578.25 Td (, the Company paid cash distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.70 578.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.59 578.25 Td (, which related to distributions on the Company) Tj ET Q q 0 0 0 rg BT 545.90 578.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (common stock, declared for daily record dates for each day in the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.10 566.25 Td (March1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.70 566.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.81 566.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.41 566.25 Td (. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (May 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.33 554.25 Td (, the Company paid cash distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.75 554.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.65 554.25 Td (, which related to distributions on the Company) Tj ET Q q 0 0 0 rg BT 506.95 554.25 Td (s common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (stock, declared for daily record dates for each day in the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.05 542.25 Td (April1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.66 542.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.22 542.25 Td (April30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.83 542.25 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (Distributions ) Tj ET Q q 0 0 0 rg BT 107.57 524.25 Td (Authorized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 506.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 506.25 Td (March9, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.82 506.25 Td (, the Company) Tj ET Q q 0 0 0 rg BT 206.20 506.25 Td (s board of directors authorized cash distributions on the outstanding shares of all classes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (of the Company) Tj ET Q q 0 0 0 rg BT 116.71 494.25 Td (s common stock based on daily record dates for the period from May 1, 2018 through May 31, 2018, which the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (Company expects to pay in June 2018, calculated at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.70 482.25 Td ($0.00132452) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.20 482.25 Td ( per share per day) Tj ET Q q 0 0 0 rg BT 417.62 482.25 Td (. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.79 482.25 Td (April4, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.40 482.25 Td (, the Company) Tj ET Q q 0 0 0 rg BT 551.78 482.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (board of directors authorized additional cash distributions on the outstanding shares of all classes of the Company) Tj ET Q q 0 0 0 rg BT 507.73 470.25 Td (s common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (stock based on daily record dates for the period from May 1, 2018 through May 31, 2018, which the Company expects to pay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (June 2018, calculated at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.33 446.25 Td ($0.00012041) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.83 446.25 Td ( per share per day) Tj ET Q q 0 0 0 rg BT 306.25 446.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 428.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 428.25 Td (May 7, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.05 428.25 Td (, the Company) Tj ET Q q 0 0 0 rg BT 198.43 428.25 Td (s board of directors authorized cash distributions on the outstanding shares of all classes of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (the Company) Tj ET Q q 0 0 0 rg BT 105.88 416.25 Td (s common stock based on daily record dates for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.59 416.25 Td (June1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.42 416.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.53 416.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.36 416.25 Td (, which the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (Company expects to pay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.87 404.25 Td (July 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.04 404.25 Td (, and cash distributions on the outstanding shares of all classes of the Company) Tj ET Q q 0 0 0 rg BT 519.43 404.25 Td (s common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (stock based on daily record dates for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.32 392.25 Td (July1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.49 392.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.60 392.25 Td (July31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.77 392.25 Td (, which the Company expects to pay in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.29 392.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (August 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.89 380.25 Td (. Investors may choose to receive cash distributions or purchase additional shares through the Company) Tj ET Q q 0 0 0 rg BT 520.79 380.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (distribution reinvestment plan. Distributions for these periods will be calculated based on stockholders of record each day ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (during these periods at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.06 356.25 Td ($0.00144493) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.56 356.25 Td (per share per day) Tj ET Q q 0 0 0 rg BT 300.99 356.25 Td (. ) Tj ET Q endstream endobj 49 0 obj <>] /Rotate 0 /Contents 50 0 R>> endobj 50 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (The following discussion and analysis should be read in conjunction with the accompanying financial statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (KBSGrowth & Income REIT) Tj ET Q q 0 0 0 rg BT 168.74 692.10 Td (, Inc. and the notes thereto. ) Tj ET Q q 0 0 0 rg BT 281.49 692.10 Td (As used herein, the terms we, our and us refer to KBSGrowth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (& Income REIT) Tj ET Q q 0 0 0 rg BT 113.74 680.10 Td (, Inc., a Maryland corporation, and, as required by context, KBS Growth & Income Limited Partnership, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (Delaware limited partnership, which we refer to as the Operating Partnership, and to their subsidiaries.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (Forward-Looking Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (Certain statements included in this Quarterly Report on Form 10-Q are forward-looking statements. ) Tj ET Q q 0 0 0 rg BT 476.83 632.10 Td (Those statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (include statements regarding the intent, belief or current expectations of KBS Growth & Income REIT) Tj ET Q q 0 0 0 rg BT 458.91 620.10 Td (, Inc. and members of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (management team, as well as the assumptions on which such statements are based, and generally are identified by the use of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (words such as may) Tj ET Q q 0 0 0 rg BT 129.11 596.10 Td (, will, seeks, anticipates, believes, estimates, expects, plans, intends, should or similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (expressions. ) Tj ET Q q 0 0 0 rg BT 103.11 584.10 Td (Actual results may dif) Tj ET Q q 0 0 0 rg BT 191.52 584.10 Td (fer materially from those contemplated by such forward-looking statements. Further) Tj ET Q q 0 0 0 rg BT 530.18 584.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (operating results over time, unless required by law) Tj ET Q q 0 0 0 rg BT 251.02 548.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 530.10 Td (The following are some of the risks and uncertainties, although not all of the risks and uncertainties, that could cause our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (actual results to dif) Tj ET Q q 0 0 0 rg BT 125.69 518.10 Td (fer materially from those presented in our forward-looking statements: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 500.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 500.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 500.10 Td (e depend on our advisor and its af) Tj ET Q q 0 0 0 rg BT 233.70 500.10 Td (filiates to conduct our operations. ) Tj ET Q q 0 0 0 rg BT 372.65 500.10 Td (W) Tj ET Q q 0 0 0 rg BT 381.28 500.10 Td (e pay fees to our advisor and its af) Tj ET Q q 0 0 0 rg BT 518.28 500.10 Td (filiates in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 488.10 Td (connection with the management of our investments that are based on the cost of the investment, not on the quality of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 476.10 Td (the investment or services rendered to us. ) Tj ET Q q 0 0 0 rg BT 260.60 476.10 Td (These fees decrease the amount of cash available for distribution to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 464.10 Td (stockholders.) 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 (W) Tj ET Q q 0 0 0 rg BT 98.64 449.10 Td (e commenced investment operations on ) Tj ET Q q 0 0 0 rg BT 258.87 449.10 Td (August 12, 2015 in connection with the acquisition of an of) Tj ET Q q 0 0 0 rg BT 496.71 449.10 Td (fice property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 437.10 Td (and we have a limited operating history) Tj ET Q q 0 0 0 rg BT 247.64 437.10 Td (. ) Tj ET Q q 0 0 0 rg BT 254.58 437.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.03 437.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.63 437.10 Td (, we owned four of) Tj ET Q q 0 0 0 rg BT 418.26 437.10 Td (fice buildings with a fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 425.10 Td ($197.8 million and we have not acquired or identified any additional real estate investments that it is reasonably ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 413.10 Td (probable we will acquire with the proceeds from our of) Tj ET Q q 0 0 0 rg BT 310.58 413.10 Td (fering stage. ) Tj ET Q q 0 0 0 rg BT 364.45 413.10 Td (As such, our stockholders will not have an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 401.10 Td (opportunity to evaluate investments before we make them.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 386.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 386.10 Td (All of our executive of) Tj ET Q q 0 0 0 rg BT 180.90 386.10 Td (ficers, our af) Tj ET Q q 0 0 0 rg BT 231.52 386.10 Td (filiated directors and other key real estate and debt finance professionals are also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 374.10 Td (of) Tj ET Q q 0 0 0 rg BT 98.15 374.10 Td (ficers, directors, managers, key professionals and/or holders of a direct or indirect controlling interest in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 362.10 Td (advisor) Tj ET Q q 0 0 0 rg BT 119.04 362.10 Td (, ) Tj ET Q q 0 0 0 rg BT 124.04 362.10 Td (and/or ) Tj ET Q q 0 0 0 rg BT 152.08 362.10 Td (other ) Tj ET Q q 0 0 0 rg BT 175.13 362.10 Td (KBS) Tj ET Q /GS0 gs q 5.00 0 0 10.09 194.58 359.94 cm /I16 Do Q q 0 0 0 rg BT 199.58 362.10 Td (af) Tj ET Q q 0 0 0 rg BT 207.17 362.10 Td (filiated ) Tj ET Q q 0 0 0 rg BT 237.99 362.10 Td (entities. ) Tj ET Q q 0 0 0 rg BT 271.88 362.10 Td ( ) Tj ET Q q 0 0 0 rg BT 273.82 362.10 Td (As ) Tj ET Q q 0 0 0 rg BT 287.44 362.10 Td (a ) Tj ET Q q 0 0 0 rg BT 294.38 362.10 Td (result, ) Tj ET Q q 0 0 0 rg BT 321.59 362.10 Td (our ) Tj ET Q q 0 0 0 rg BT 337.42 362.10 Td (executive ) Tj ET Q q 0 0 0 rg BT 378.23 362.10 Td (of) Tj ET Q q 0 0 0 rg BT 386.38 362.10 Td (ficers, ) Tj ET Q q 0 0 0 rg BT 413.59 362.10 Td (our ) Tj ET Q q 0 0 0 rg BT 429.42 362.10 Td (af) Tj ET Q q 0 0 0 rg BT 437.01 362.10 Td (filiated ) Tj ET Q q 0 0 0 rg BT 467.83 362.10 Td (directors, ) Tj ET Q q 0 0 0 rg BT 507.81 362.10 Td (some ) Tj ET Q q 0 0 0 rg BT 531.42 362.10 Td (of ) Tj ET Q q 0 0 0 rg BT 542.25 362.10 Td (our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 350.10 Td (key real estate and debt finance professionals, our advisor and its af) Tj ET Q q 0 0 0 rg BT 360.28 350.10 Td (filiates face conflicts of interest, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 338.10 Td (significant conflicts created by our advisor) Tj ET Q q 0 0 0 rg BT 261.15 338.10 Td () Tj ET Q q 0 0 0 rg BT 263.93 338.10 Td (s and its af) Tj ET Q q 0 0 0 rg BT 306.79 338.10 Td (filiates) Tj ET Q q 0 0 0 rg BT 336.59 338.10 Td ( compensation arrangements with us and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 326.10 Td (KBS) Tj ET Q /GS0 gs q 5.00 0 0 10.09 109.45 323.94 cm /I17 Do Q q 0 0 0 rg BT 114.45 326.10 Td (sponsored ) Tj ET Q q 0 0 0 rg BT 157.50 326.10 Td (programs ) Tj ET Q q 0 0 0 rg BT 197.77 326.10 Td (and ) Tj ET Q q 0 0 0 rg BT 214.71 326.10 Td (KBS) Tj ET Q /GS0 gs q 5.00 0 0 10.09 234.17 323.94 cm /I18 Do Q q 0 0 0 rg BT 239.17 326.10 Td (advised ) Tj ET Q q 0 0 0 rg BT 272.21 326.10 Td (investors ) Tj ET Q q 0 0 0 rg BT 310.82 326.10 Td (and ) Tj ET Q q 0 0 0 rg BT 327.76 326.10 Td (conflicts ) Tj ET Q q 0 0 0 rg BT 364.69 326.10 Td (in ) Tj ET Q q 0 0 0 rg BT 374.97 326.10 Td (allocating ) Tj ET Q q 0 0 0 rg BT 416.90 326.10 Td (time ) Tj ET Q q 0 0 0 rg BT 437.17 326.10 Td (among ) Tj ET Q q 0 0 0 rg BT 466.89 326.10 Td (us ) Tj ET Q q 0 0 0 rg BT 478.28 326.10 Td (and ) Tj ET Q q 0 0 0 rg BT 495.22 326.10 Td (these ) Tj ET Q q 0 0 0 rg BT 518.27 326.10 Td (other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 314.10 Td (programs and investors. ) Tj ET Q q 0 0 0 rg BT 190.26 314.10 Td (Although we have adopted corporate governance measures to ameliorate some of the risks ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 302.10 Td (posed by these conflicts, these conflicts could result in action or inaction that is not in the best interests of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 290.10 Td (stockholders.) 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 (Because ) Tj ET Q q 0 0 0 rg BT 125.82 275.10 Td (investment ) Tj ET Q q 0 0 0 rg BT 172.20 275.10 Td (opportunities ) Tj ET Q q 0 0 0 rg BT 227.47 275.10 Td (that ) Tj ET Q q 0 0 0 rg BT 244.97 275.10 Td (are ) Tj ET Q q 0 0 0 rg BT 259.67 275.10 Td (suitable ) Tj ET Q q 0 0 0 rg BT 293.28 275.10 Td (for ) Tj ET Q q 0 0 0 rg BT 307.44 275.10 Td (us ) Tj ET Q q 0 0 0 rg BT 318.83 275.10 Td (may ) Tj ET Q q 0 0 0 rg BT 338.54 275.10 Td (also ) Tj ET Q q 0 0 0 rg BT 357.15 275.10 Td (be ) Tj ET Q q 0 0 0 rg BT 369.09 275.10 Td (suitable ) Tj ET Q q 0 0 0 rg BT 402.70 275.10 Td (for ) Tj ET Q q 0 0 0 rg BT 416.86 275.10 Td (other ) Tj ET Q q 0 0 0 rg BT 439.90 275.10 Td (KBS) Tj ET Q /GS0 gs q 5.00 0 0 10.09 459.36 272.94 cm /I19 Do Q q 0 0 0 rg BT 464.36 275.10 Td (sponsored ) Tj ET Q q 0 0 0 rg BT 507.41 275.10 Td (programs ) Tj ET Q q 0 0 0 rg BT 547.68 275.10 Td (or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 263.10 Td (KBS) Tj ET Q /GS0 gs q 5.00 0 0 10.09 109.45 260.94 cm /I20 Do Q q 0 0 0 rg BT 114.45 263.10 Td (advised ) Tj ET Q q 0 0 0 rg BT 147.50 263.10 Td (investors, ) Tj ET Q q 0 0 0 rg BT 188.61 263.10 Td (our ) Tj ET Q q 0 0 0 rg BT 204.44 263.10 Td (advisor ) Tj ET Q q 0 0 0 rg BT 236.38 263.10 Td (and ) Tj ET Q q 0 0 0 rg BT 253.32 263.10 Td (its ) Tj ET Q q 0 0 0 rg BT 265.26 263.10 Td (af) Tj ET Q q 0 0 0 rg BT 272.85 263.10 Td (filiates ) Tj ET Q q 0 0 0 rg BT 302.56 263.10 Td (face ) Tj ET Q q 0 0 0 rg BT 321.71 263.10 Td (conflicts ) Tj ET Q q 0 0 0 rg BT 358.64 263.10 Td (of ) Tj ET Q q 0 0 0 rg BT 369.47 263.10 Td (interest ) Tj ET Q q 0 0 0 rg BT 401.41 263.10 Td (relating ) Tj ET Q q 0 0 0 rg BT 434.45 263.10 Td (to ) Tj ET Q q 0 0 0 rg BT 444.73 263.10 Td (the ) Tj ET Q q 0 0 0 rg BT 459.44 263.10 Td (purchase ) Tj ET Q q 0 0 0 rg BT 497.48 263.10 Td (of ) Tj ET Q q 0 0 0 rg BT 508.31 263.10 Td (properties. ) Tj ET Q q 0 0 0 rg BT 553.30 263.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 251.10 Td (Any such conflicts in directing investment opportunities may not be resolved in our favor) Tj ET Q q 0 0 0 rg BT 447.43 251.10 Td (.) 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 (If we are unable to raise substantial funds in our of) Tj ET Q q 0 0 0 rg BT 293.09 236.10 Td (fering stage, we may not be able to acquire a diverse portfolio of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 224.10 Td (real estate investments, which may cause the value of an investment in us to vary more widely with the performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 212.10 Td (of specific assets and cause our general and administrative expenses to constitute a greater percentage of our revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 200.10 Td (Raising fewer proceeds in our of) Tj ET Q q 0 0 0 rg BT 220.61 200.10 Td (fering stage, therefore, could increase the risk that our stockholders will lose money ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 188.10 Td (in their investment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 173.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 173.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 173.10 Td (e may fund distributions from any source, including, without limitation, of) Tj ET Q q 0 0 0 rg BT 396.47 173.10 Td (fering proceeds or borrowings. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 161.10 Td (Distributions paid through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.05 161.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.65 161.10 Td ( have been funded in part with debt financing, including advances from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 149.10 Td (our advisor) Tj ET Q q 0 0 0 rg BT 134.87 149.10 Td (, and cash resulting from a waiver of asset management fees by our advisor) Tj ET Q q 0 0 0 rg BT 435.33 149.10 Td (. Distributions funded from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 137.10 Td (sources other than our cash flow from operations will result in dilution to subsequent investors, reduce funds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 125.10 Td (available for investment in assets and may reduce the overall return to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 110.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 110.10 Td (Our advisor waived its asset management fee for the second and third quarters of 2017 and deferred its asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 98.10 Td (management fee for the fourth quarter of 2017 and first quarter of 2018. If our advisor determines to no longer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 86.10 Td (waive or defer certain fees owed to them, our ability to fund our operations and to fund our distributions may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 74.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 142.90 74.10 Td (fected. ) Tj ET Q endstream endobj 51 0 obj <>] /Rotate 0 /Contents 52 0 R>> endobj 52 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 704.10 Td (Our policies do not limit us from incurring debt until our aggregate borrowings would exceed 75% of the cost \(before ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 692.10 Td (deducting ) Tj ET Q q 0 0 0 rg BT 131.93 692.10 Td (depreciation ) Tj ET Q q 0 0 0 rg BT 183.85 692.10 Td (or ) Tj ET Q q 0 0 0 rg BT 194.68 692.10 Td (other ) Tj ET Q q 0 0 0 rg BT 217.73 692.10 Td (non) Tj ET Q /GS0 gs q 5.00 0 0 10.09 232.73 689.94 cm /I21 Do Q q 0 0 0 rg BT 237.73 692.10 Td (cash ) Tj ET Q q 0 0 0 rg BT 258.00 692.10 Td (reserves\) ) Tj ET Q q 0 0 0 rg BT 296.59 692.10 Td (of ) Tj ET Q q 0 0 0 rg BT 307.42 692.10 Td (our ) Tj ET Q q 0 0 0 rg BT 323.25 692.10 Td (tangible ) Tj ET Q q 0 0 0 rg BT 357.96 692.10 Td (assets, ) Tj ET Q q 0 0 0 rg BT 386.29 692.10 Td (and ) Tj ET Q q 0 0 0 rg BT 403.23 692.10 Td (we ) Tj ET Q q 0 0 0 rg BT 417.39 692.10 Td (may ) Tj ET Q q 0 0 0 rg BT 437.10 692.10 Td (exceed ) Tj ET Q q 0 0 0 rg BT 467.36 692.10 Td (this ) Tj ET Q q 0 0 0 rg BT 484.31 692.10 Td (limit ) Tj ET Q q 0 0 0 rg BT 505.70 692.10 Td (with ) Tj ET Q q 0 0 0 rg BT 525.98 692.10 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 680.10 Td (approval of the conflicts committee of our board of directors. High debt levels could limit the amount of cash we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 668.10 Td (have available to distribute and could result in a decline in the value of our stockholders) Tj ET Q q 0 0 0 rg BT 444.42 668.10 Td ( investment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 653.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 653.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 653.10 Td (e have debt obligations with variable interest rates and may incur additional variable rate debt in the future. ) Tj ET Q q 0 0 0 rg BT 532.19 653.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 641.10 Td (interest and related payments will vary with the movement of LIBOR or other indexes. Increases in the indexes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 629.10 Td (could increase the amount of our debt payments and limit our ability to pay distributions to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 614.10 Td (If we are unable to locate investments with attractive yields while we are investing the proceeds raised in our of) Tj ET Q q 0 0 0 rg BT 536.61 614.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 602.10 Td (stage, ) Tj ET Q q 0 0 0 rg BT 115.55 602.10 Td (our ) Tj ET Q q 0 0 0 rg BT 131.38 602.10 Td (distributions ) Tj ET Q q 0 0 0 rg BT 183.88 602.10 Td (and ) Tj ET Q q 0 0 0 rg BT 200.82 602.10 Td (the ) Tj ET Q q 0 0 0 rg BT 215.54 602.10 Td (long) Tj ET Q /GS0 gs q 5.00 0 0 10.09 233.32 599.94 cm /I22 Do Q q 0 0 0 rg BT 238.32 602.10 Td (term ) Tj ET Q q 0 0 0 rg BT 259.14 602.10 Td (returns ) Tj ET Q q 0 0 0 rg BT 289.41 602.10 Td (of ) Tj ET Q q 0 0 0 rg BT 300.24 602.10 Td (our ) Tj ET Q q 0 0 0 rg BT 316.07 602.10 Td (investors ) Tj ET Q q 0 0 0 rg BT 354.68 602.10 Td (may ) Tj ET Q q 0 0 0 rg BT 374.39 602.10 Td (be ) Tj ET Q q 0 0 0 rg BT 386.33 602.10 Td (lower) Tj ET Q q 0 0 0 rg BT 408.55 602.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 587.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 587.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 587.10 Td (e depend on tenants for the revenue generated by any real estate investments we make and, accordingly) Tj ET Q q 0 0 0 rg BT 511.43 587.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 575.10 Td (revenue generated by our real estate investments is dependent upon the success and economic viability of our tenants. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 563.10 Td (Revenues from any properties we acquire could decrease due to a reduction in occupancy and/or lower rental rates, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 551.10 Td (making it more dif) Tj ET Q q 0 0 0 rg BT 164.53 551.10 Td (ficult for us to meet any debt service obligations we have incurred and limiting our ability to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 539.10 Td (distributions to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 524.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 524.10 Td (Any real estate investments we make may be af) Tj ET Q q 0 0 0 rg BT 280.30 524.10 Td (fected by unfavorable real estate market and general economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 512.10 Td (conditions, which could decrease the value of those assets and reduce the investment return to our stockholders. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 500.10 Td (These events could make it more dif) Tj ET Q q 0 0 0 rg BT 235.33 500.10 Td (ficult for us to meet debt service obligations and limit our ability to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 488.10 Td (distributions to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 473.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 473.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 473.10 Td (e cannot predict with any certainty how much, if any) Tj ET Q q 0 0 0 rg BT 309.03 473.10 Td (, of our distribution reinvestment plan proceeds will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 461.10 Td (available for general corporate purposes including, but not limited to: the repurchase of shares under our share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 449.10 Td (redemption program; capital expenditures, tenant improvement costs and leasing costs related to any real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 437.10 Td (properties we acquire; reserves required by any financings of real estate investments; the acquisition of real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 425.10 Td (investments; and the repayment of debt. If such funds are not available from our distribution reinvestment plan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 413.10 Td (of) Tj ET Q q 0 0 0 rg BT 98.15 413.10 Td (fering, then we may have to use a greater proportion of our cash flow from operations to meet these cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 401.10 Td (requirements, which would reduce cash available for distributions and could limit our ability to redeem shares under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 389.10 Td (our share redemption program.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 374.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 374.10 Td (In February 2018, we exhausted funds available for all redemptions under our share redemption program for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 362.10 Td (remainder of 2018, and we can provide no assurances as to when we will be able to honor all redemption requests ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 350.10 Td (submitted.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 329.10 Td (All forward-looking statements should be read in light of the risks identified herein and in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 493.85 329.10 Td ( of our ) Tj ET Q q 0 0 0 rg BT 522.46 329.10 Td (Annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 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 213.90 317.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.48 317.10 Td (, all filed with the Securities and Exchange Commission \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (SEC\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 269.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 269.10 Td (e were formed on January 12, 2015 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 49.50 257.10 Td (\(REIT\) beginning with the taxable year ended December 31, 2015 and we intend to continue to operate in such a manner) Tj ET Q q 0 0 0 rg BT 541.27 257.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (Substantially all of our business is conducted through our Operating Partnership, of which we are the sole general partner) Tj ET Q q 0 0 0 rg BT 534.65 245.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (Subject to certain restrictions and limitations, our business is externally managed by our advisor pursuant to an advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.10 Td (agreement. KBS Capital ) Tj ET Q q 0 0 0 rg BT 151.42 221.10 Td (Advisors manages our operations and our portfolio of core real estate properties. KBS Capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.10 Td (Advisors also provides asset-management, marketing, investor) Tj ET Q q 0 0 0 rg BT 300.08 209.10 Td (-relations and other administrative services on our behalf. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.10 Td (advisor acquired 20,000 shares of our Class ) Tj ET Q q 0 0 0 rg BT 226.13 197.10 Td (A) Tj ET Q q 0 0 0 rg BT 232.80 197.10 Td ( common stock for an initial investment of $200,000. ) Tj ET Q q 0 0 0 rg BT 450.36 197.10 Td (W) Tj ET Q q 0 0 0 rg BT 459.00 197.10 Td (e have no paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (employees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 167.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 167.10 Td (e commenced a private placement of) Tj ET Q q 0 0 0 rg BT 227.33 167.10 Td (fering exempt from registration pursuant to Rule 506\(b\) of Regulation D of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (Securities ) Tj ET Q q 0 0 0 rg BT 90.88 155.10 Td (Act of 1933, as amended \(the Securities ) Tj ET Q q 0 0 0 rg BT 256.94 155.10 Td (Act\), on June 1) Tj ET Q q 0 0 0 rg BT 322.11 155.10 Td (1, 2015, pursuant to which we of) Tj ET Q q 0 0 0 rg BT 453.57 155.10 Td (fered a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td ($105,000,000 of shares of our Class ) Tj ET Q q 0 0 0 rg BT 195.60 143.10 Td (A) Tj ET Q q 0 0 0 rg BT 202.27 143.10 Td ( common stock for sale to accredited investors, of which $5,000,000 of Class ) Tj ET Q q 0 0 0 rg BT 512.76 143.10 Td (A) Tj ET Q q 0 0 0 rg BT 519.43 143.10 Td ( shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (were of) Tj ET Q q 0 0 0 rg BT 79.58 131.10 Td (fered pursuant to our distribution reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 290.46 131.10 Td (W) Tj ET Q q 0 0 0 rg BT 299.10 131.10 Td (e ceased of) Tj ET Q q 0 0 0 rg BT 343.33 131.10 Td (fering shares in the primary portion of our private ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 119.10 Td (fering on ) Tj ET Q q 0 0 0 rg BT 95.97 119.10 Td (April 27, 2016 and processed subscriptions for the primary portion of the private of) Tj ET Q q 0 0 0 rg BT 429.61 119.10 Td (fering dated on or prior to ) Tj ET Q q 0 0 0 rg BT 535.13 119.10 Td (April ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (27, 2016 through May 30, 2016. KBS Capital Markets Group LLC, an af) Tj ET Q q 0 0 0 rg BT 344.01 107.10 Td (filiate of our advisor) Tj ET Q q 0 0 0 rg BT 425.53 107.10 Td (, served as the dealer manager of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (the of) Tj ET Q q 0 0 0 rg BT 72.37 95.10 Td (fering pursuant to a dealer manager agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 77.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 77.10 Td (e sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.75 77.10 Td (8,548,972) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.75 77.10 Td ( shares of our Class ) Tj ET Q q 0 0 0 rg BT 227.01 77.10 Td (A) Tj ET Q q 0 0 0 rg BT 233.68 77.10 Td ( common stock for gross of) Tj ET Q q 0 0 0 rg BT 343.21 77.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.46 77.10 Td ($76.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.35 77.10 Td ( in our initial private ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 65.10 Td (fering, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.80 65.10 Td (74,744) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.30 65.10 Td ( shares of our Class ) Tj ET Q q 0 0 0 rg BT 234.57 65.10 Td (A) Tj ET Q q 0 0 0 rg BT 241.24 65.10 Td ( common stock under our distribution reinvestment plan for gross of) Tj ET Q q 0 0 0 rg BT 514.34 65.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.10 Td (proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.37 53.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.26 53.10 Td (. ) Tj ET Q endstream endobj 53 0 obj <>] /Rotate 0 /Contents 54 0 R>> endobj 54 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (On February 4, 2015, we filed a registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 341.30 704.10 Td (1 with the SEC to register an initial public of) Tj ET Q q 0 0 0 rg BT 520.81 704.10 Td (fering to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 692.10 Td (fer a maximum of $1,500,000,000 in shares of common stock for sale to the public in the primary of) Tj ET Q q 0 0 0 rg BT 458.77 692.10 Td (fering, consisting of two ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (classes of shares: Class ) Tj ET Q q 0 0 0 rg BT 146.99 680.10 Td (A) Tj ET Q q 0 0 0 rg BT 153.66 680.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 197.08 680.10 Td (T) Tj ET Q q 0 0 0 rg BT 203.01 680.10 Td ( and a maximum of $800,000,000 in both classes of shares of our common stock pursuant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (to our distribution reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 200.41 668.10 Td (The SEC declared our registration statement ef) Tj ET Q q 0 0 0 rg BT 387.94 668.10 Td (fective on ) Tj ET Q q 0 0 0 rg BT 429.59 668.10 Td (April 28, 2016 and we retained ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (KBS Capital Markets Group LLC to serve as the dealer manager of the initial public of) Tj ET Q q 0 0 0 rg BT 397.83 656.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 426.53 656.10 Td (W) Tj ET Q q 0 0 0 rg BT 435.17 656.10 Td (e terminated our primary initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (public of) Tj ET Q q 0 0 0 rg BT 85.14 644.10 Td (fering ef) Tj ET Q q 0 0 0 rg BT 119.11 644.10 Td (fective June 30, 2017. ) Tj ET Q q 0 0 0 rg BT 209.46 644.10 Td (W) Tj ET Q q 0 0 0 rg BT 218.10 644.10 Td (e are continuing to of) Tj ET Q q 0 0 0 rg BT 303.45 644.10 Td (fer shares of common stock pursuant to our publicly registered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (distribution reinvestment plan of) Tj ET Q q 0 0 0 rg BT 180.13 632.10 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 614.10 Td (e sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.75 614.10 Td (122,721) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.25 614.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.68 614.10 Td (270,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.18 614.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 255.62 614.10 Td (A) Tj ET Q q 0 0 0 rg BT 262.29 614.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 305.72 614.10 Td (T) Tj ET Q q 0 0 0 rg BT 311.65 614.10 Td ( common stock in the initial primary public of) Tj ET Q q 0 0 0 rg BT 495.88 614.10 Td (fering, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 602.10 Td (, for aggregate gross of) Tj ET Q q 0 0 0 rg BT 189.45 602.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.69 602.10 Td ($3.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.58 602.10 Td (. ) Tj ET Q q 0 0 0 rg BT 318.03 602.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.47 602.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.07 602.10 Td (, we had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.34 602.10 Td (410,149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.84 602.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.28 602.10 Td (12,417) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.78 602.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (shares of Class ) Tj ET Q q 0 0 0 rg BT 111.44 590.10 Td (A) Tj ET Q q 0 0 0 rg BT 118.11 590.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 161.54 590.10 Td (T) Tj ET Q q 0 0 0 rg BT 167.46 590.10 Td ( common stock under our distribution reinvestment plan, respectively) Tj ET Q q 0 0 0 rg BT 444.81 590.10 Td (, for aggregate gross of) Tj ET Q q 0 0 0 rg BT 537.09 590.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.37 578.10 Td ($4.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.26 578.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 560.10 Td (On October 3, 2017, we launched a second private placement of) Tj ET Q q 0 0 0 rg BT 328.39 560.10 Td (fering exempt from registration pursuant to Rule 506\(c\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (Regulation D of the Securities ) Tj ET Q q 0 0 0 rg BT 172.53 548.10 Td (Act pursuant to which we are currently of) Tj ET Q q 0 0 0 rg BT 339.24 548.10 Td (fering a maximum of $1,000,000,000 in shares of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.12 536.10 Td (A) Tj ET Q q 0 0 0 rg BT 79.79 536.10 Td ( common stock to accredited investors. Prior to the launch of the second private placement of) Tj ET Q q 0 0 0 rg BT 452.83 536.10 Td (fering, on September 29, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (2017, we entered a dealer manager agreement \(the NCPS Dealer ) Tj ET Q q 0 0 0 rg BT 314.10 524.10 Td (Agreement\) with KBS Capital ) Tj ET Q q 0 0 0 rg BT 441.86 524.10 Td (Advisors and North Capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (Private Securities Corporation \(NCPS\) in connection with the second private placement of) Tj ET Q q 0 0 0 rg BT 420.05 512.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 448.38 512.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.82 512.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.42 512.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.67 500.10 Td (125,322) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.17 500.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 165.61 500.10 Td (A) Tj ET Q q 0 0 0 rg BT 172.28 500.10 Td ( common stock in the second private of) Tj ET Q q 0 0 0 rg BT 329.56 500.10 Td (fering for aggregate gross of) Tj ET Q q 0 0 0 rg BT 443.22 500.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.46 500.10 Td ($1.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 488.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 470.10 Td (As of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 470.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 470.10 Td (, we had redeemed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.50 470.10 Td (422,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.00 470.10 Td ( Class ) Tj ET Q q 0 0 0 rg BT 296.12 470.10 Td (A) Tj ET Q q 0 0 0 rg BT 302.79 470.10 Td ( shares for) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.94 470.10 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.83 470.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 452.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 452.10 Td (e intend to use substantially all of the net proceeds from our of) Tj ET Q q 0 0 0 rg BT 330.95 452.10 Td (ferings to invest in a diverse portfolio of core real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (properties. ) Tj ET Q q 0 0 0 rg BT 96.80 440.10 Td (W) Tj ET Q q 0 0 0 rg BT 105.44 440.10 Td (e consider core properties to be existing properties with at least 80% occupancy) Tj ET Q q 0 0 0 rg BT 423.57 440.10 Td (. Based on the current market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (outlook, we expect our core focus in the U.S. of) Tj ET Q q 0 0 0 rg BT 240.94 428.10 Td (fice sector to reflect a value-creating core strategy) Tj ET Q q 0 0 0 rg BT 440.45 428.10 Td (, which is also known as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (core-plus strategy) Tj ET Q q 0 0 0 rg BT 120.21 416.10 Td (. ) Tj ET Q q 0 0 0 rg BT 127.16 416.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.60 416.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.20 416.10 Td (, we owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.52 416.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.18 416.10 Td ( of) Tj ET Q q 0 0 0 rg BT 290.83 416.10 Td (fice buildings. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 398.10 Td (KBS Capital ) Tj ET Q q 0 0 0 rg BT 124.78 398.10 Td (Advisors makes recommendations on all investments to our board of directors. ) Tj ET Q q 0 0 0 rg BT 444.44 398.10 Td (All proposed real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (investments must be approved by at least a majority of our board of directors, including a majority of the conflicts committee. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (Unless otherwise provided by our charter) Tj ET Q q 0 0 0 rg BT 214.33 374.10 Td (, the conflicts committee may approve a proposed real estate investment without ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (action by the full board of directors if the approving members of the conflicts committee constitute at least a majority of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (board of directors. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 332.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 332.10 Td (e elected to be taxed as a REIT) Tj ET Q q 0 0 0 rg BT 204.56 332.10 Td ( under the Internal Revenue Code, beginning with the taxable year ended December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (2015. If we meet the REIT) Tj ET Q q 0 0 0 rg BT 156.51 320.10 Td ( qualification requirements, we generally will not be subject to federal income tax on the income that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (we distribute to our stockholders each year) Tj ET Q q 0 0 0 rg BT 220.56 308.10 Td (. If we fail to qualify for taxation as a REIT) Tj ET Q q 0 0 0 rg BT 394.49 308.10 Td ( in any year after electing REIT) Tj ET Q q 0 0 0 rg BT 520.91 308.10 Td ( status, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (our income will be taxed at regular corporate rates, and we may be precluded from qualifying for treatment as a REIT) Tj ET Q q 0 0 0 rg BT 520.52 296.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (four) Tj ET Q q 0 0 0 rg BT 65.96 284.10 Td (-year period following our failure to qualify) Tj ET Q q 0 0 0 rg BT 240.81 284.10 Td (. Such an event could materially and adversely af) Tj ET Q q 0 0 0 rg BT 437.50 284.10 Td (fect our net income and cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (available for distribution to our stockholders. However) Tj ET Q q 0 0 0 rg BT 268.77 272.10 Td (, we are or) Tj ET Q q 0 0 0 rg BT 310.78 272.10 Td (ganized and will operate in a manner that will enable us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (qualify for treatment as a REIT) Tj ET Q q 0 0 0 rg BT 174.55 260.10 Td ( for federal income tax purposes beginning with our taxable year ended December31, 2015, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (we will continue to operate so as to remain qualified as a REIT) Tj ET Q q 0 0 0 rg BT 301.46 248.10 Td ( for federal income tax purposes thereafter) Tj ET Q q 0 0 0 rg BT 470.83 248.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (Market Outlook Real Estate and Real Estate Finance Markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 212.10 Td (V) Tj ET Q q 0 0 0 rg BT 77.93 212.10 Td (olatility in global financial markets and changing political environments can cause fluctuationsin the performance of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (U.S. commercial real estate markets. Possible future declines in rental rates, slower or potentially negative net absorption of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (leased space and expectations of future rental concessions, including free rent to renew tenants early) Tj ET Q q 0 0 0 rg BT 450.08 188.10 Td (, to retain tenants who are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (up for renewal or to attract new tenants, may result in decreases in cash flows from investment properties. Increases in the cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (of financing due to higher interest rates may cause dif) Tj ET Q q 0 0 0 rg BT 267.02 164.10 Td (ficulty in refinancing debt obligations prior to or at maturity or at terms ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (as favorable as the terms of existing indebtedness. Market conditions can change quickly) Tj ET Q q 0 0 0 rg BT 407.08 152.10 Td (, potentially negatively impacting the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (value of real estate investments. Management continuously reviews our investment and debt financing strategies to optimize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (our portfolio and the cost of our debt exposure.) Tj ET Q endstream endobj 55 0 obj <>] /Rotate 0 /Contents 56 0 R>> endobj 56 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (26) 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 73.50 686.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 686.25 Td (e are dependent upon the net proceeds from our of) Tj ET Q q 0 0 0 rg BT 283.27 686.25 Td (fering stage to conduct our operations. ) Tj ET Q q 0 0 0 rg BT 441.93 686.25 Td (W) Tj ET Q q 0 0 0 rg BT 450.57 686.25 Td (e will obtain the capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (required to make real estate investments and conduct our operations from the proceeds of our of) Tj ET Q q 0 0 0 rg BT 433.35 674.25 Td (fering stage, from secured or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (unsecured financings from banks and other lenders and from any undistributed funds from our operations. ) Tj ET Q q 0 0 0 rg BT 478.01 662.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.45 662.25 Td (March31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 650.25 Td (, we had raised approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.23 650.25 Td ($85.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.13 650.25 Td ( in gross of) Tj ET Q q 0 0 0 rg BT 290.67 650.25 Td (fering proceeds from the sale of shares of our common stock in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (initial private of) Tj ET Q q 0 0 0 rg BT 113.74 638.25 Td (fering, second private of) Tj ET Q q 0 0 0 rg BT 211.30 638.25 Td (fering and initial public of) Tj ET Q q 0 0 0 rg BT 316.09 638.25 Td (fering. ) Tj ET Q q 0 0 0 rg BT 347.29 638.25 Td (W) Tj ET Q q 0 0 0 rg BT 355.93 638.25 Td (e terminated our primary initial public of) Tj ET Q q 0 0 0 rg BT 519.58 638.25 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 626.25 Td (fective June 30, 2017 and launched a private of) Tj ET Q q 0 0 0 rg BT 246.00 626.25 Td (fering solely to accredited investors pursuant to Rule 506\(c\) of Regulation D ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (of the Securities ) Tj ET Q q 0 0 0 rg BT 116.43 614.25 Td (Act on October 3, 2017. ) Tj ET Q q 0 0 0 rg BT 215.39 614.25 Td (W) Tj ET Q q 0 0 0 rg BT 224.03 614.25 Td (e continue to of) Tj ET Q q 0 0 0 rg BT 286.33 614.25 Td (fer shares of common stock under our publicly registered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (distribution reinvestment plan. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 584.25 Td (If we are unable to raise substantial funds during our of) Tj ET Q q 0 0 0 rg BT 294.92 584.25 Td (fering stage, we will make fewer investments resulting in less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (diversification in terms of the number and size of investments we make and the value of an investment in us will fluctuate more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.25 Td (significantly with the performance of the specific assets we acquire. Further) Tj ET Q q 0 0 0 rg BT 352.60 560.25 Td (, we will have certain fixed operating expenses, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (including certain expenses as a publicly of) Tj ET Q q 0 0 0 rg BT 219.27 548.25 Td (fered REIT) Tj ET Q q 0 0 0 rg BT 263.78 548.25 Td (, regardless of whether we are able to raise substantial funds during our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 536.25 Td (fering stage. Our inability to raise substantial funds would increase our fixed operating expenses as a percentage of gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (income, reducing our net income and cash flow and limiting our ability to make distributions to our stockholders. ) Tj ET Q q 0 0 0 rg BT 505.34 524.25 Td (W) Tj ET Q q 0 0 0 rg BT 513.98 524.25 Td (e expect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (establish a modest working capital reserve from our of) Tj ET Q q 0 0 0 rg BT 267.59 512.25 Td (fering proceeds for maintenance and repairs of real properties, as we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.25 Td (expect the vast majority of leases for the properties we acquire will provide for tenant reimbursement of operating expenses. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (However) Tj ET Q q 0 0 0 rg BT 85.75 488.25 Td (, to the extent that we have insuf) Tj ET Q q 0 0 0 rg BT 215.53 488.25 Td (ficient funds for such purposes, we may establish additional reserves from gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 476.25 Td (fering proceeds, out of cash flow from operations or net cash proceeds from the sale of properties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 458.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 458.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.54 458.25 Td (, we owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.86 458.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.52 458.25 Td ( of) Tj ET Q q 0 0 0 rg BT 237.17 458.25 Td (fice properties that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.57 458.25 Td (97%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.90 458.25 Td (occupied. ) Tj ET Q q 0 0 0 rg BT 400.81 458.25 Td (W) Tj ET Q q 0 0 0 rg BT 409.45 458.25 Td (e acquired these investments with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (proceeds from the sale of our common stock in the private of) Tj ET Q q 0 0 0 rg BT 293.41 446.25 Td (fering and debt financing, including a bridge loan from our advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (that we have since repaid. Operating cash needs during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.41 434.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.40 434.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.22 434.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.82 434.25 Td ( were met through cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (generated by our real estate investments and with proceeds from our of) Tj ET Q q 0 0 0 rg BT 333.39 422.25 Td (ferings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 404.25 Td (Our investments in real estate generate cash flow in the form of rental revenues and tenant reimbursements, which are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (reduced by operating expenditures, capital expenditures, debt service payments, the payment of asset management fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (corporate general and administrative expenses. Cash flow from operations from real estate investments will be primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (dependent upon the occupancy level of our portfolio, the net ef) Tj ET Q q 0 0 0 rg BT 301.17 368.25 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 49.50 356.25 Td (operating recoveries from our tenants and how well we manage our expenditures. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 338.25 Td (Our advisor advanced funds to us, which are non-interest bearing, for distribution record dates through the period ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (May 31, 2016. ) Tj ET Q q 0 0 0 rg BT 112.65 326.25 Td (W) Tj ET Q q 0 0 0 rg BT 121.29 326.25 Td (e are only obligated to repay our advisor for its advance if and to the extent that:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 308.25 Td (\(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 308.25 Td (Our modified funds from operations \(MFFO\), as such term is defined by the Institute for Portfolio ) Tj ET Q q 0 0 0 rg BT 498.04 308.25 Td (Alternatives ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 296.25 Td (and interpreted by us, for the immediately preceding month exceeds the amount of distributions declared for record ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 284.25 Td (dates of such prior month \(an MFFO Surplus\), and we will pay our advisor the amount of the MFFO Surplus to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 272.25 Td (reduce the principal amount outstanding under the advance, provided that such payments shall only be made if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 260.25 Td (management in its sole discretion expects an MFFO Surplus to be recurring for at least the next two calendar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 248.25 Td (quarters, determined on a quarterly basis; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 233.25 Td (\(ii\) ) Tj ET Q q 0 0 0 rg BT 94.50 233.25 Td (Excess proceeds from third-party financings are available \(Excess Proceeds\), provided that the amount of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 221.25 Td (such Excess Proceeds that may be used to repay the principal amount outstanding under the advance shall be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 209.25 Td (determined by the conflicts committee in its sole discretion.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 188.25 Td (In determining whether Excess Proceeds are available to repay the advance, our conflicts committee will consider ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (whether cash on hand could have been used to reduce the amount of third-party financing provided to us. If such cash could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.25 Td (have been used instead of third-party financing, the third-party financing proceeds will be available to repay the advance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 146.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 146.25 Td (e expect that once we have fully invested the proceeds raised during our of) Tj ET Q q 0 0 0 rg BT 381.01 146.25 Td (fering stage, our debt financing and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.25 Td (liabilities will be between 45% and 65% of the cost of our tangible assets \(before deducting depreciation and other non-cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.25 Td (reserves\). ) Tj ET Q q 0 0 0 rg BT 90.41 122.25 Td (Though this is our tar) Tj ET Q q 0 0 0 rg BT 176.33 122.25 Td (get leverage, our charter does not limit us from incurring debt until our aggregate borrowings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.25 Td (would exceed 300% of our net assets \(before deducting depreciation and other non-cash reserves\), which is ef) Tj ET Q q 0 0 0 rg BT 488.88 110.25 Td (fectively 75% of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.25 Td (the cost of our tangible assets \(before deducting depreciation and other non-cash reserves\), though we may exceed this limit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.25 Td (under certain circumstances. ) Tj ET Q q 0 0 0 rg BT 168.43 86.25 Td (T) Tj ET Q q 0 0 0 rg BT 173.84 86.25 Td (o the extent financing in excess of this limit is available at attractive terms, the conflicts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.25 Td (committee may approve debt in excess of this limit. ) Tj ET Q q 0 0 0 rg BT 260.84 74.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.29 74.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.88 74.25 Td (, our aggregate borrowings were approximately 66% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.25 Td (of our net assets before deducting depreciation and other non-cash reserves. ) Tj ET Q endstream endobj 57 0 obj <>] /Rotate 0 /Contents 58 0 R>> endobj 58 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 704.10 Td (In addition to making investments in accordance with our investment objectives, we have used a portion of our capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (resources to make certain payments to our advisor) Tj ET Q q 0 0 0 rg BT 249.87 692.10 Td (, the af) Tj ET Q q 0 0 0 rg BT 277.17 692.10 Td (filiated dealer manager of our initial private of) Tj ET Q q 0 0 0 rg BT 462.74 692.10 Td (fering and initial public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 680.10 Td (fering and our af) Tj ET Q q 0 0 0 rg BT 124.38 680.10 Td (filiated property manager) Tj ET Q q 0 0 0 rg BT 225.45 680.10 Td (. ) Tj ET Q q 0 0 0 rg BT 232.77 680.10 Td (These payments include payments to our dealer manager for selling commissions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (the dealer manager fee and the stockholder servicing fee, and payments to the dealer manager and our advisor for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (reimbursement of certain or) Tj ET Q q 0 0 0 rg BT 160.66 656.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 252.95 656.10 Td (fering expenses. See Or) Tj ET Q q 0 0 0 rg BT 364.67 656.10 Td (ganization and Of) Tj ET Q q 0 0 0 rg BT 436.13 656.10 Td (fering Costs below) Tj ET Q q 0 0 0 rg BT 515.47 656.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 644.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 644.10 Td (e make payments to our advisor in connection with the management of our assets and costs incurred by our advisor in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (providing certain services to us. ) Tj ET Q q 0 0 0 rg BT 181.79 632.10 Td (Through ) Tj ET Q q 0 0 0 rg BT 218.17 632.10 Td (August 8, 2017, the asset management fee payable to our advisor was a monthly fee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (equal to one-twelfth of 1.6% of the cost of our investments, less any debt secured by or attributable to our investments. ) Tj ET Q q 0 0 0 rg BT 527.17 620.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (August 9, 2017, the asset management fee is a monthly fee payable to our advisor in an amount equal to one-twelfth of 1.0% of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (the cost of our investments including the portion of the investment that is debt financed. ) Tj ET Q q 0 0 0 rg BT 403.69 596.10 Td (The cost of our real property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (investments is calculated as the amount paid or allocated to acquire the real property) Tj ET Q q 0 0 0 rg BT 386.78 584.10 Td (, plus budgeted capital improvement costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (for the development, construction or improvements to the property once such funds are disbursed pursuant to a final approved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (budget and fees and expenses related to the acquisition, but excluding acquisition fees paid or payable to our advisor) Tj ET Q q 0 0 0 rg BT 515.20 560.10 Td (. In the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (case of investments made through joint ventures, the asset management fee is determined based on our proportionate share of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (the underlying investment. Our advisor waived asset management fees for the second and third quarters of 2017 and deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (payment of asset management fees related to the periods from October 2017 through March 2018. Our advisor) Tj ET Q q 0 0 0 rg BT 494.74 524.10 Td () Tj ET Q q 0 0 0 rg BT 497.52 524.10 Td (s waiver and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (deferral of its asset management fees resulted in additional cash being available to fund our operations. If our advisor chooses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (to no longer waive or defer such fees, our ability to fund our operations and our distributions at the current rate may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 97.90 488.10 Td (fected.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 469.50 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 469.50 Td (e also pay fees to KBS Management Group, LLC \(the Co-Manager\), an af) Tj ET Q q 0 0 0 rg BT 385.41 469.50 Td (filiate of our advisor) Tj ET Q q 0 0 0 rg BT 466.93 469.50 Td (, pursuant to property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.50 Td (management agreements with the Co-Manager) Tj ET Q q 0 0 0 rg BT 236.25 457.50 Td (, for certain property management services at our properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 439.50 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 439.50 Td (e elected to be taxed as a REIT) Tj ET Q q 0 0 0 rg BT 206.06 439.50 Td ( and to operate as a REIT) Tj ET Q q 0 0 0 rg BT 307.51 439.50 Td ( beginning with our taxable year ended December31,2015. ) Tj ET Q q 0 0 0 rg BT 551.97 439.50 Td (T) Tj ET Q q 0 0 0 rg BT 557.38 439.50 Td (o ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.50 Td (maintain our qualification as a REIT) Tj ET Q q 0 0 0 rg BT 195.10 427.50 Td (, we will be required to make aggregate annual distributions to our stockholders of at least ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.50 Td (90% of our REIT) Tj ET Q q 0 0 0 rg BT 119.03 415.50 Td ( taxable income \(computed without regard to the dividends-paid deduction and excluding net capital gain\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.50 Td (Our board of directors may authorize distributions in excess of those required for us to maintain REIT) Tj ET Q q 0 0 0 rg BT 457.55 403.50 Td ( status depending on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.50 Td (financial condition and such other factors as our board of directors deems relevant. Provided we have suf) Tj ET Q q 0 0 0 rg BT 469.46 391.50 Td (ficient available cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.50 Td (flow) Tj ET Q q 0 0 0 rg BT 67.18 379.50 Td (, we intend to authorize and declare cash distributions based on daily record dates and pay cash distributions on a monthly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.50 Td (basis. ) Tj ET Q q 0 0 0 rg BT 74.32 367.50 Td (W) Tj ET Q q 0 0 0 rg BT 82.96 367.50 Td (e have not established a minimum distribution level.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 349.50 Td (Under our charter) Tj ET Q q 0 0 0 rg BT 144.17 349.50 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 49.50 337.50 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 523.92 337.50 Td (, unless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.50 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 49.50 313.50 Td (Operating expenses for the four fiscal quarters ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.86 313.50 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.46 313.50 Td ( did not exceed the charter) Tj ET Q q 0 0 0 rg BT 433.04 313.50 Td (-imposed limitation. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 295.50 Td (Cash Flows from Operating ) Tj ET Q q 0 0 0 rg BT 166.93 295.50 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 280.50 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 280.50 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.54 280.50 Td (, we owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.86 280.50 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.52 280.50 Td ( of) Tj ET Q q 0 0 0 rg BT 237.17 280.50 Td (fice properties. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.69 280.50 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.67 280.50 Td (monthsended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.50 280.50 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.10 280.50 Td (, net cash used in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.50 Td (operating activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.41 268.50 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.31 268.50 Td (, compared to net cash provided by operating activities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.73 268.50 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.62 268.50 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.45 268.50 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.43 268.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.50 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 256.50 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.42 256.50 Td (. ) Tj ET Q q 0 0 0 rg BT 178.74 256.50 Td (W) Tj ET Q q 0 0 0 rg BT 187.38 256.50 Td (e expect that our cash flows from operating activities will increase in future periods to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.50 Td (extent we make additional acquisitions of real estate and the related operations of such investments.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 226.50 Td (Cash Flows from Investing ) Tj ET Q q 0 0 0 rg BT 163.60 226.50 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 211.50 Td (Net cash used in investing activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.63 211.50 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.52 211.50 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.90 211.50 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.88 211.50 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.71 211.50 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.31 211.50 Td ( and consisted of cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.50 Td (used for improvements to real estate.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 181.50 Td (Cash Flows from Financing ) Tj ET Q q 0 0 0 rg BT 168.61 181.50 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 166.50 Td ( During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.05 166.50 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.03 166.50 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.86 166.50 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.46 166.50 Td (, net cash provided by financing activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.90 166.50 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.79 166.50 Td ( and consisted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.50 Td (primarily of the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 136.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 136.50 Td ($4.0 million of net cash provided by debt financing as a result of proceeds from notes payable of $45.0 million, of) Tj ET Q q 0 0 0 rg BT 546.10 136.50 Td (fset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 124.50 Td (by principal payments on notes payable of $41.0 million;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 109.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 109.50 Td ($2.3 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 94.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 94.50 Td ($0.7 million of net cash provided by of) Tj ET Q q 0 0 0 rg BT 245.90 94.50 Td (fering proceeds related to our second private of) Tj ET Q q 0 0 0 rg BT 434.81 94.50 Td (fering; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 79.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 79.50 Td ($0.6 million of net cash distributions, after giving ef) Tj ET Q q 0 0 0 rg BT 298.67 79.50 Td (fect to distributions reinvested by stockholders of $0.5 million.) 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. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Contractual Commitments and Contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 686.25 Td (The following is a summary of our contractual obligations as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.94 686.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.54 686.25 Td ( \(in thousands\).) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 633.75 196.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 633.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 633.75 56.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.00 633.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.00 633.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 633.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 633.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 633.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 633.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 633.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 633.75 61.00 -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 310 654.75 m 370 654.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 654.75 m 374 654.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 654.75 m 434 654.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 654.75 m 438 654.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 654.75 m 498 654.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 654.75 m 502 654.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 654.75 m 563 654.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 633.75 m 246 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250 633.75 m 306 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 633.75 m 370 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 633.75 m 434 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 633.75 m 498 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 633.75 m 563 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 633.75 m 563 633.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 659.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 252.50 659.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.75 658.98 Td (Payments Due During the ) Tj ET Q q 0 0 0 rg BT 433.82 658.98 Td (Y) Tj ET Q q 0 0 0 rg BT 439.01 658.98 Td (ears Ending December) Tj ET Q q 0 0 0 rg BT 516.26 658.98 Td (31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 637.98 Td (Contractual Obligations) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 268.75 637.98 Td (T) Tj ET Q q 0 0 0 rg BT 273.72 637.98 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 316.10 645.98 Td (Remainder) Tj ET Q q 0 0 0 rg BT 354.24 645.98 Td (of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.50 637.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.15 637.98 Td (2019-2020) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.15 637.98 Td (2021-2022) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.70 637.98 Td (Ther) Tj ET Q q 0 0 0 rg BT 530.44 637.98 Td (eafter) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 624.00 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 146.94 627.63 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 252.50 624.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 276.75 624.00 Td (1) Tj ET Q q 0 0 0 rg BT 280.75 624.00 Td (17,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.50 624.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.80 624.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 376.50 624.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.80 624.00 Td (72,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 440.50 624.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.80 624.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 504.50 624.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 624.00 Td (45,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 610.00 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 213.81 613.63 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.80 610.00 Td (14,547) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 348.80 610.00 Td (3,189) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.80 610.00 Td (8,098) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 610.00 Td (3,123) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 610.00 Td (137) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 585.27 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 581.65 Td ( ) Tj ET Q q 0 0 0 rg BT 57.12 581.65 Td (Amounts include principal payments only) Tj ET Q q 0 0 0 rg BT 190.80 581.65 Td (. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 572.67 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 569.05 Td ( Projected interest payments are based on the outstanding principal amount, maturity date and contractual interest rate in ef) Tj ET Q q 0 0 0 rg BT 448.84 569.05 Td (fect as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.16 569.05 Td (March31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 531.04 569.05 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 559.45 Td (\(consisting of the contractual interest rate\). ) Tj ET Q q 0 0 0 rg BT 190.64 559.45 Td (W) Tj ET Q q 0 0 0 rg BT 197.55 559.45 Td (e incurred interest expense of $1.1 million, excluding amortization of deferred financing costs totaling $0.1 ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 549.85 Td (million, debt refinancing costs of $0.2 million and unrealized gains on derivative instruments of $0.4 million during the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 434.09 549.85 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 450.08 549.85 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.74 549.85 Td (March31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.62 549.85 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 525.85 Td (Results of Operations) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 507.85 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 492.85 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 492.85 Td (e conducted a primary initial public of) Tj ET Q q 0 0 0 rg BT 233.74 492.85 Td (fering from ) Tj ET Q q 0 0 0 rg BT 281.50 492.85 Td (April 28, 2016 through June 30, 2017 and are continuing to of) Tj ET Q q 0 0 0 rg BT 529.90 492.85 Td (fer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 480.85 Td (shares in our publicly registered distribution reinvestment plan of) Tj ET Q q 0 0 0 rg BT 310.93 480.85 Td (fering. On October 3, 2017 we launched a private placement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 468.85 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 468.85 Td (fering exempt from registration pursuant to Rule 506\(c\) of Regulation D of the Securities ) Tj ET Q q 0 0 0 rg BT 417.00 468.85 Td (Act. Prior to our initial public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 456.85 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 456.85 Td (fering, we conducted a private placement of) Tj ET Q q 0 0 0 rg BT 233.22 456.85 Td (fering exempt from registration pursuant to Rule 506\(b\) of Regulation D of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 444.85 Td (Securities ) Tj ET Q q 0 0 0 rg BT 90.88 444.85 Td (Act, that commenced on June 1) Tj ET Q q 0 0 0 rg BT 216.58 444.85 Td (1, 2015. Our results of operations as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.89 444.85 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.49 444.85 Td ( are not indicative of those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 432.85 Td (expected in future periods as we commenced investment operations on ) Tj ET Q q 0 0 0 rg BT 334.41 432.85 Td (August 12, 2015 in connection with our first investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 420.85 Td (and have since been raising money in and investing the proceeds from our of) Tj ET Q q 0 0 0 rg BT 356.73 420.85 Td (ferings. ) Tj ET Q q 0 0 0 rg BT 391.44 420.85 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.89 420.85 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.49 420.85 Td (, we owned three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 408.85 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 408.85 Td (fice properties. ) Tj ET Q q 0 0 0 rg BT 122.44 408.85 Td (W) Tj ET Q q 0 0 0 rg BT 131.08 408.85 Td (e acquired one of) Tj ET Q q 0 0 0 rg BT 200.03 408.85 Td (fice property after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.71 408.85 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.30 408.85 Td ( and owned four of) Tj ET Q q 0 0 0 rg BT 414.21 408.85 Td (fice properties as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.84 408.85 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.44 408.85 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.85 Td (The results of operations presented for the three months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.64 396.85 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.24 396.85 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.68 396.85 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.68 396.85 Td ( are not directly comparable due to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 384.85 Td (acquisition activity) Tj ET Q q 0 0 0 rg BT 125.22 384.85 Td (. In general, we expect that our income and expenses related to our portfolio will increase in future periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 372.85 Td (to the extent we make additional acquisitions of real estate investments.) 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 72 353.5169921875 m 148.9482421875 353.5169921875 l s q 0 0 0 rg BT 72.00 354.85 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 353.5169921875 m 169.1240234375 353.5169921875 l s q 0 0 0 rg BT 148.95 354.85 Td (thr) Tj ET Q q 0 0 0 rg BT 160.25 354.85 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 353.5169921875 m 229.392578125 353.5169921875 l s q 0 0 0 rg BT 169.12 354.85 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 353.5169921875 m 293.181640625 353.5169921875 l s q 0 0 0 rg BT 229.39 354.85 Td (Mar) Tj ET Q q 0 0 0 rg BT 246.24 354.85 Td (ch31, 2018) 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 293.181640625 353.5169921875 m 338.4501953125 353.5169921875 l s q 0 0 0 rg BT 293.18 354.85 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 338.4501953125 353.5169921875 m 358.6259765625 353.5169921875 l s q 0 0 0 rg BT 338.45 354.85 Td (thr) Tj ET Q q 0 0 0 rg BT 349.75 354.85 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 358.6259765625 353.5169921875 m 418.89453125 353.5169921875 l s q 0 0 0 rg BT 358.63 354.85 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 418.89453125 353.5169921875 m 482.68359375 353.5169921875 l s q 0 0 0 rg BT 418.89 354.85 Td (Mar) Tj ET Q q 0 0 0 rg BT 435.75 354.85 Td (ch31, 2017) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 482.68 354.85 Td ( ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 305.35 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.00 305.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.00 305.35 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 305.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 305.35 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 305.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 305.35 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 305.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 305.35 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 305.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 305.35 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 305.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 305.35 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 277.35 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.00 277.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.00 277.35 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 277.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 277.35 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 277.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 277.35 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 277.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 277.35 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 277.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 277.35 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 277.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 277.35 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 249.35 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.00 249.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.00 249.35 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 249.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 249.35 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 249.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 249.35 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 249.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 249.35 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 249.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 249.35 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 249.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 249.35 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 221.35 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.00 221.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.00 221.35 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 221.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 221.35 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 221.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 221.35 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 221.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 221.35 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 221.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 221.35 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 221.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 221.35 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 193.35 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.00 193.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.00 193.35 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 193.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 193.35 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 193.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 193.35 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 193.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 193.35 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 193.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 193.35 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 193.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 193.35 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 165.35 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.00 165.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.00 165.35 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 165.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 165.35 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 165.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 165.35 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 165.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 165.35 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 165.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 165.35 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 165.35 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 165.35 66.00 -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 234 319.35 m 276 319.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276 319.35 m 280 319.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 319.35 m 322 319.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 234 319.35 m 276 319.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 234 305.35 m 276 305.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276 319.35 m 280 319.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 319.35 m 322 319.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 305.35 m 322 305.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 305.35 m 371 305.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 305.35 m 420 305.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 305.35 m 492 305.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 305.35 m 562 305.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 234 305.35 m 276 305.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 305.35 m 322 305.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 305.35 m 371 305.35 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 323.60 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 239.80 331.58 Td (For) Tj ET Q q 0 0 0 rg BT 252.17 331.58 Td ( the ) Tj ET Q q 0 0 0 rg BT 266.68 331.58 Td (Thr) Tj ET Q q 0 0 0 rg BT 279.88 331.58 Td (ee Months) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 247.90 323.58 Td (Ended Mar) Tj ET Q q 0 0 0 rg BT 287.16 323.58 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.60 317.58 Td (Incr) Tj ET Q q 0 0 0 rg BT 348.12 317.58 Td (ease) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.05 309.58 Td (\(Decr) Tj ET Q q 0 0 0 rg BT 349.00 309.58 Td (ease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.15 317.58 Td (Per) Tj ET Q q 0 0 0 rg BT 390.07 317.58 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.85 309.58 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.15 317.58 Td ($ Change Due to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.90 309.58 Td (Acquisition ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 475.02 313.21 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.35 333.43 Td ($ Change ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 501.00 325.43 Td (DuetoPr) Tj ET Q q 0 0 0 rg BT 533.73 325.43 Td (operty) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.70 317.43 Td (Held ) Tj ET Q q 0 0 0 rg BT 517.00 317.43 Td (Thr) Tj ET Q q 0 0 0 rg BT 530.19 317.43 Td (oughout ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.35 309.43 Td (Both Periods ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 548.57 313.06 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 309.60 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 246.50 309.58 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 292.50 309.58 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 295.60 Td (Rental income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 236.50 295.60 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 254.75 295.60 Td (4,414) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 282.50 295.60 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 300.75 295.60 Td (3,236) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.50 295.60 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 349.75 295.60 Td (1,178) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 295.60 Td (36) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 295.60 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.50 295.60 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 295.60 Td (1,140) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 295.60 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.80 295.60 Td (38) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 281.60 Td (T) Tj ET Q q 0 0 0 rg BT 57.11 281.60 Td (enant reimbursements) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 254.75 281.60 Td (1,128) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.75 281.60 Td (779) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 281.60 Td (349) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 281.60 Td (45) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 281.60 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 281.60 Td (199) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 281.60 Td (150) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 267.60 Td (Other operating income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 264.80 267.60 Td (39) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 267.60 Td (18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 267.60 Td (21) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.15 267.60 Td (1) Tj ET Q q 0 0 0 rg BT 402.15 267.60 Td (17) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 267.60 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.80 267.60 Td (21) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.80 267.60 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 253.60 Td (Operating, maintenance and management costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 260.75 253.60 Td (869) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.75 253.60 Td (745) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 253.60 Td (124) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 253.60 Td (17) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 253.60 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 253.60 Td (145) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.10 253.60 Td (\(21) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 253.60 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 239.60 Td (Property management fees and expenses to af) Tj ET Q q 0 0 0 rg BT 198.60 239.60 Td (filiate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 264.80 239.60 Td (42) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 239.60 Td (29) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 239.60 Td (13) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 239.60 Td (45) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 239.60 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.80 239.60 Td (10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 239.60 Td (3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 225.60 Td (Real estate taxes and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 260.75 225.60 Td (751) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.75 225.60 Td (457) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 225.60 Td (294) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 225.60 Td (64) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 225.60 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 225.60 Td (236) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.10 225.60 Td (\(5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 225.60 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 211.60 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 144.39 211.60 Td (filiate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 260.75 211.60 Td (456) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.75 211.60 Td (214) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 211.60 Td (242) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.15 211.60 Td (1) Tj ET Q q 0 0 0 rg BT 402.15 211.60 Td (13) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 211.60 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 211.60 Td (108) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 211.60 Td (134) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 197.60 Td (General and administrative expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 260.75 197.60 Td (393) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.75 197.60 Td (341) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 197.60 Td (52) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 197.60 Td (15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 197.60 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.70 197.60 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.70 197.60 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 183.60 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 254.75 183.60 Td (2,309) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 300.75 183.60 Td (1,718) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 183.60 Td (591) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 183.60 Td (34) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 183.60 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 183.60 Td (602) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.10 183.60 Td (\(1) Tj ET Q q 0 0 0 rg BT 554.76 183.60 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 183.60 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 169.60 Td (Interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 260.75 169.60 Td (971) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.75 169.60 Td (743) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 169.60 Td (228) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 169.60 Td (31) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 169.60 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 169.60 Td (124) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 169.60 Td (104) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 155.60 Td (Interest and other income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.80 155.60 Td (5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 155.60 Td (17) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.10 155.60 Td (\(12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 155.60 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.45 155.60 Td (\(71) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.15 155.60 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.80 155.60 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.10 155.60 Td (\(12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 155.60 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.85 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 130.88 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.56 127.25 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 57.44 127.25 Td (Represents the dollar amount increase for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 204.27 127.25 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 220.26 127.25 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.92 127.25 Td (March31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.80 127.25 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.34 127.25 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.32 127.25 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.98 127.25 Td (March31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.86 127.25 Td ( related to a real ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 117.65 Td (estate investment acquired on or after January 1, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 206.55 117.65 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 222.55 117.65 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 108.67 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 105.05 Td (Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 238.56 105.05 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 254.55 105.05 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.21 105.05 Td (March31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.08 105.05 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.62 105.05 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.61 105.05 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 474.27 105.05 Td (March31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 525.15 105.05 Td ( with ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 95.45 Td (respect to the real estate investment owned by us throughout both periods presented.) Tj ET Q endstream endobj 61 0 obj <>] /Rotate 0 /Contents 62 0 R>> endobj 62 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (Rental income and tenant reimbursements increased from $4.0 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.74 704.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.73 704.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.55 704.10 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 704.10 Td ( to $5.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.77 692.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.75 692.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.58 692.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.18 692.10 Td (, primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 506.42 692.10 Td (W) Tj ET Q q 0 0 0 rg BT 515.06 692.10 Td (e expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (rental income and tenant reimbursements to increase in future periods to the extent we make additional acquisitions of real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (estate investments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 650.10 Td (Operating, maintenance, and management costs increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.23 650.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.12 650.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.50 650.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.49 650.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.31 650.10 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.91 650.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.78 638.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.67 638.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.05 638.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.03 638.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.86 638.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.46 638.10 Td (, primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 536.70 638.10 Td (W) Tj ET Q q 0 0 0 rg BT 545.34 638.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (expect operating, maintenance, and management costs to increase in future periods to the extent we make additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (acquisitions of real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 596.10 Td (Property management fees and expenses to af) Tj ET Q q 0 0 0 rg BT 256.03 596.10 Td (filiate increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.04 596.10 Td ($29,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.54 596.10 Td ( for the the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.64 596.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.62 596.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.45 596.10 Td (March31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 584.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.28 584.10 Td ($42,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.78 584.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.16 584.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.14 584.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.97 584.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.56 584.10 Td (, primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 542.81 584.10 Td (W) Tj ET Q q 0 0 0 rg BT 551.45 584.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (expect property management fees to increase in future periods to the extent we make additional acquisitions of real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 542.10 Td (Real estate taxes and insurance increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.58 542.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.47 542.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.85 542.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.84 542.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.66 542.10 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.26 542.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.04 542.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.93 542.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 530.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.36 530.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.19 530.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.79 530.10 Td (, primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 477.53 530.10 Td (W) Tj ET Q q 0 0 0 rg BT 486.17 530.10 Td (e expect real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (taxes and insurance to increase in future periods to the extent we make additional acquisitions of real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 500.10 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 188.28 500.10 Td (filiate increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.29 500.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.18 500.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.56 500.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.54 500.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.37 500.10 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.97 500.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.74 500.10 Td ($0.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 488.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.77 488.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.75 488.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.58 488.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.18 488.10 Td (, primarily as a result of the growth in our real estate portfolio and a change ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (to how asset management fees are calculated in connection with an amendment to the advisory agreement on ) Tj ET Q q 0 0 0 rg BT 487.40 476.10 Td (August 9, 2017. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (Asset management fees for the first quarter of 2018 were accrued but payment was deferred by our advisor) Tj ET Q q 0 0 0 rg BT 476.84 464.10 Td (. ) Tj ET Q q 0 0 0 rg BT 484.16 464.10 Td (W) Tj ET Q q 0 0 0 rg BT 492.80 464.10 Td (e expect asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (management fees to increase in future periods to the extent we make additional real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 434.10 Td (Depreciation and amortization increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.81 434.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 434.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.08 434.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.06 434.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.89 434.10 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.49 434.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.26 434.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.16 434.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 422.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.20 422.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.03 422.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.63 422.10 Td (, primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 460.87 422.10 Td (W) Tj ET Q q 0 0 0 rg BT 469.51 422.10 Td (e expect depreciation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (and amortization to increase in future periods to the extent we make additional acquisitions of real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 392.10 Td (Interest expense increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.88 392.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.78 392.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.15 392.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.14 392.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.96 392.10 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.56 392.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.34 392.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.23 392.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.61 392.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.59 392.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 380.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.42 380.10 Td (. Included in interest expense is the amortization of deferred financing costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.98 380.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.87 380.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 368.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.77 368.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.75 368.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.58 368.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.18 368.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.62 368.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.62 368.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 366.28 368.10 Td (. Included in interest expense during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.01 368.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.99 368.10 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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.42 356.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.98 356.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.87 356.10 Td ( of unrealized gains on interest rate swaps and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.75 356.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.64 356.10 Td ( of debt refinancing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (costs. ) Tj ET Q q 0 0 0 rg BT 74.32 344.10 Td (The increase in interest expense is primarily due to increased borrowings in connection with the acquisition of real estate, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (resulting in an increase in the average loan balance. ) Tj ET Q q 0 0 0 rg BT 258.11 332.10 Td (W) Tj ET Q q 0 0 0 rg BT 266.75 332.10 Td (e expect interest expense to increase in the future as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (anticipated borrowings in future periods to the extent we make additional acquisitions of real estate investments.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 45.00 302.10 Td (Funds fr) Tj ET Q q 0 0 0 rg BT 81.77 302.10 Td (om Operations and Modified Funds fr) Tj ET Q q 0 0 0 rg BT 244.66 302.10 Td (om Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 284.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 284.10 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 505.52 284.10 Td (. ) Tj ET Q q 0 0 0 rg BT 512.84 284.10 Td (W) Tj ET Q q 0 0 0 rg BT 521.47 284.10 Td (ecompute ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 272.10 Td (FFO in accordance with the current National ) Tj ET Q q 0 0 0 rg BT 225.78 272.10 Td (Association of Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 380.83 272.10 Td (T) Tj ET Q q 0 0 0 rg BT 386.59 272.10 Td (rusts \(NAREIT\) definition. FFO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 260.10 Td (represents net income, excluding gains and losses from sales of operating real estate assets \(which can vary among owners of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 248.10 Td (identical assets in similar conditions based on historical cost accounting and useful-life estimates\), impairment losses on real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 236.10 Td (estate assets, depreciation and amortization of real estate assets, and adjustments for unconsolidated partnerships and joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 224.10 Td (ventures. ) Tj ET Q q 0 0 0 rg BT 86.20 224.10 Td (W) Tj ET Q q 0 0 0 rg BT 94.83 224.10 Td (e believe FFO facilitates comparisons of operating performance between periods and among other REIT) Tj ET Q q 0 0 0 rg BT 511.49 224.10 Td (s. However) Tj ET Q q 0 0 0 rg BT 559.14 224.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 212.10 Td (our computation of FFO may not be comparable to other REIT) Tj ET Q q 0 0 0 rg BT 295.91 212.10 Td (s that do not define FFO in accordance with the NAREIT) Tj ET Q q 0 0 0 rg BT 525.12 212.10 Td ( definition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 200.10 Td (or that interpret the current NAREIT) Tj ET Q q 0 0 0 rg BT 191.71 200.10 Td ( definition dif) Tj ET Q q 0 0 0 rg BT 246.52 200.10 Td (ferently than we do. Our management believes that historical cost accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 188.10 Td (for real estate assets in accordance with U.S. generally accepted accounting principles \(GAAP\) implicitly assumes that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 176.10 Td (value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 164.10 Td (conditions, many industry investors and analysts have considered the presentation of operating results for real estate companies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 152.10 Td (that use historical cost accounting to be insuf) Tj ET Q q 0 0 0 rg BT 225.05 152.10 Td (ficient by themselves. ) Tj ET Q q 0 0 0 rg BT 316.98 152.10 Td (As a result, we believe that the use of FFO, together with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 140.10 Td (required GAAP) Tj ET Q q 0 0 0 rg BT 107.67 140.10 Td ( presentations, provides a more complete understanding of our performance relative to our competitors and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 128.10 Td (provides a more informed and appropriate basis on which to make decisions involving operating, financing, and investing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 116.10 Td (activities.) Tj ET Q endstream endobj 63 0 obj <>] /Rotate 0 /Contents 64 0 R>> endobj 64 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 38.10 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 704.10 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 45.00 692.10 Td (included in the calculation of FFO. ) Tj ET Q q 0 0 0 rg BT 186.92 692.10 Td (As a result, our management also uses MFFO as an indicator of our ongoing performance as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 680.10 Td (well as our dividend sustainability) Tj ET Q q 0 0 0 rg BT 181.55 680.10 Td (. MFFO excludes from FFO: acquisition fees and expenses \(to the extent that such fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 668.10 Td (expenses have been recorded as operating expenses\); adjustments related to contingent purchase price obligations; amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 656.10 Td (relating to straight-line rents and amortization of above and below market intangible lease assets and liabilities; accretion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 644.10 Td (discounts and amortization of premiums on debt investments; amortization of closing costs relating to debt investments; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 632.10 Td (impairments of real estate-related investments; mark-to-market adjustments included in net income; and gains or losses included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 620.10 Td (in net income for the extinguishment or sale of debt or hedges. ) Tj ET Q q 0 0 0 rg BT 300.31 620.10 Td (W) Tj ET Q q 0 0 0 rg BT 308.95 620.10 Td (e compute MFFO in accordance with the definition of MFFO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 608.10 Td (included in the practice guideline issued by the IP) Tj ET Q q 0 0 0 rg BT 243.47 608.10 Td (A) Tj ET Q q 0 0 0 rg BT 250.14 608.10 Td ( in November2010 as interpreted by management. Our computation of MFFO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 596.10 Td (may not be comparable to other REIT) Tj ET Q q 0 0 0 rg BT 195.92 596.10 Td (s that do not compute MFFO in accordance with the current IP) Tj ET Q q 0 0 0 rg BT 445.78 596.10 Td (A) Tj ET Q q 0 0 0 rg BT 452.45 596.10 Td ( definition or that interpret ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 584.10 Td (the current IP) Tj ET Q q 0 0 0 rg BT 98.51 584.10 Td (A) Tj ET Q q 0 0 0 rg BT 105.18 584.10 Td ( definition dif) Tj ET Q q 0 0 0 rg BT 159.99 584.10 Td (ferently than we do. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 566.10 Td (W) Tj ET Q q 0 0 0 rg BT 77.64 566.10 Td (e believe that MFFO is helpful as a measure of ongoing operating performance because it excludes costs that management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 554.10 Td (considers more reflective of investing activities and other non-operating items included in FFO. Management believes that, by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 542.10 Td (excluding acquisition costs \(to the extent such costs have been recorded as operating expenses\) as well as non-cash items such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 530.10 Td (straight line rental revenue, MFFO provides investors with supplemental performance information that is consistent with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 518.10 Td (performance indicators and analysis used by management, in addition to net income and cash flows from operating activities as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 506.10 Td (defined by GAAP) Tj ET Q q 0 0 0 rg BT 116.10 506.10 Td (, to evaluate the sustainability of our operating performance. MFFO provides comparability in evaluating the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 494.10 Td (operating performance of our portfolio with other non-traded REIT) Tj ET Q q 0 0 0 rg BT 313.10 494.10 Td (s which typically have limited lives with short and defined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 482.10 Td (acquisition periods and tar) Tj ET Q q 0 0 0 rg BT 150.63 482.10 Td (geted exit strategies. MFFO, or an equivalent measure, is routinely reported by non-traded REIT) Tj ET Q q 0 0 0 rg BT 538.43 482.10 Td (s, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 470.10 Td (we believe often used by analysts and investors for comparison purposes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 452.10 Td (FFO and MFFO are non-GAAP) Tj ET Q q 0 0 0 rg BT 196.41 452.10 Td ( financial measures and do not represent net income as defined by GAAP) Tj ET Q q 0 0 0 rg BT 488.55 452.10 Td (. Net income as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 440.10 Td (defined by GAAP) Tj ET Q q 0 0 0 rg BT 116.84 440.10 Td ( is the most relevant measure in determining our operating performance because FFO and MFFO include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 428.10 Td (adjustments that investors may deem subjective, such as adding back expenses such as depreciation and amortization and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 416.10 Td (other items described above. ) Tj ET Q q 0 0 0 rg BT 163.85 416.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 213.19 416.10 Td (, FFO and MFFO should not be considered as alternatives to net income as an indicator ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 404.10 Td (of our current and historical operating performance. In addition, FFO and MFFO do not represent cash flows from operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 392.10 Td (activities determined in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 235.95 392.10 Td ( and should not be considered an indication of our liquidity) Tj ET Q q 0 0 0 rg BT 471.92 392.10 Td (. ) Tj ET Q q 0 0 0 rg BT 479.24 392.10 Td (W) Tj ET Q q 0 0 0 rg BT 487.88 392.10 Td (ebelieve FFO and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 380.10 Td (MFFO, in addition to net income and cash flows from operating activities as defined by GAAP) Tj ET Q q 0 0 0 rg BT 424.38 380.10 Td (, are meaningful supplemental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 368.10 Td (performance measures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 350.10 Td (Although MFFO includes other adjustments, the exclusion of adjustments for straight-line rent, the amortization of above- ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 338.10 Td (and below-market leases and unrealized gain on derivative instruments are the most significant adjustments for the periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 326.10 Td (presented. ) Tj ET Q q 0 0 0 rg BT 90.63 326.10 Td (W) Tj ET Q q 0 0 0 rg BT 99.27 326.10 Td (e have excluded these items based on the following economic considerations:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 308.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 308.10 Td (Adjustments for straight-line r) Tj ET Q q 0 0 0 rg BT 206.52 308.10 Td (ent.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.74 308.10 Td ( ) Tj ET Q q 0 0 0 rg BT 226.06 308.10 Td (These are adjustments to rental revenue as required by GAAP) Tj ET Q q 0 0 0 rg BT 473.10 308.10 Td ( to recognize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 296.10 Td (contractual lease payments on a straight-line basis over the life of the respective lease. ) Tj ET Q q 0 0 0 rg BT 435.18 296.10 Td (W) Tj ET Q q 0 0 0 rg BT 443.82 296.10 Td (e have excluded these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 284.10 Td (adjustments in our calculation of MFFO to more appropriately reflect the current economic impact of our in-place ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 272.10 Td (leases, while also providing investors with a useful supplemental metric that addresses core operating performance by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 260.10 Td (removing rent we expect to receive in a future period or rent that was received in a prior period;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 245.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 245.10 Td (Amortization of above- and below-market leases.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.14 245.10 Td ( Similar to depreciation and amortization of real estate assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 233.10 Td (lease related costs that are excluded from FFO, GAAP) Tj ET Q q 0 0 0 rg BT 303.12 233.10 Td ( implicitly assumes that the value of intangible lease assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 221.10 Td (liabilities diminishes predictably over time and requires that these char) Tj ET Q q 0 0 0 rg BT 368.29 221.10 Td (ges be recognized currently in revenue. Since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 209.10 Td (market lease rates in the aggregate have historically risen or fallen with local market conditions, management believes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 197.10 Td (that by excluding these char) Tj ET Q q 0 0 0 rg BT 197.50 197.10 Td (ges, MFFO provides useful supplemental information on the realized economics of the real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 185.10 Td (estate; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 170.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 170.10 Td (Unr) Tj ET Q q 0 0 0 rg BT 101.24 170.10 Td (ealized \(gains\) losses on derivative instruments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.44 170.10 Td ( ) Tj ET Q q 0 0 0 rg BT 298.26 170.10 Td (These adjustments include unrealized \(gains\) losses from mark-to-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 158.10 Td (market adjustments on interest rate swaps. ) Tj ET Q q 0 0 0 rg BT 257.22 158.10 Td (The change in fair value of interest rate swaps not designated as a hedge are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 146.10 Td (non-cash adjustments recognized directly in earnings and are included in interest expense. ) Tj ET Q q 0 0 0 rg BT 450.75 146.10 Td (W) Tj ET Q q 0 0 0 rg BT 459.39 146.10 Td (e have excluded these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 134.10 Td (adjustments in our calculation of MFFO to more appropriately reflect the economic impact of our interest rate swap ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 122.10 Td (agreements.) Tj ET Q endstream endobj 65 0 obj <>] /Rotate 0 /Contents 66 0 R>> endobj 66 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 38.10 Td (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 704.10 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 495.00 704.10 Td (, is presented in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 692.10 Td (the following table, along with our calculation of MFFO, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.67 692.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.66 692.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.48 692.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.08 692.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.52 692.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.52 692.10 Td (, respectively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 680.10 Td (\(inthousands\). No conclusions or comparisons should be made from the presentation of these periods.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 638.60 318.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 638.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.50 638.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 638.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 610.60 318.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 610.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.50 610.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 610.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 582.60 318.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 582.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.50 582.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 582.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 554.60 318.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 554.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.50 554.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.50 554.60 100.00 -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 363.5 652.6 m 463.5 652.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463.5 652.6 m 467.5 652.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 652.6 m 567.5 652.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 652.6 m 463.5 652.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 638.6 m 463.5 638.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 652.6 m 567.5 652.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 638.6 m 567.5 638.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 638.6 m 463.5 638.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 638.6 m 567.5 638.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 596.6 m 463.5 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 596.6 m 567.5 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 554.6 m 463.5 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 541.6 m 463.5 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 539.6 m 463.5 539.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 554.6 m 567.5 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 541.6 m 567.5 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 539.6 m 567.5 539.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.70 656.83 Td (For) Tj ET Q q 0 0 0 rg BT 409.07 656.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 423.58 656.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 436.78 656.83 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 513.30 656.83 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.00 642.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.00 642.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 628.85 Td (Net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.00 628.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.60 628.85 Td (\(205) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.30 628.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.00 628.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.60 628.90 Td (\(197) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 564.30 628.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.00 614.85 Td (Depreciation of real estate assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 448.30 614.85 Td (967) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.30 614.85 Td (622) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.00 600.85 Td (Amortization of lease-related costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 442.30 600.85 Td (1,342) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 600.85 Td (1,096) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 586.85 Td (FFO) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 442.30 586.85 Td (2,104) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 586.85 Td (1,521) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.00 572.85 Td (Straight-line rent and amortization of above- and below-market leases, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.60 572.85 Td (\(893) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.30 572.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.60 572.90 Td (\(530) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 564.30 572.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.00 558.85 Td (Unrealized gain on derivative instruments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.60 558.85 Td (\(372) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.30 558.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 556.30 558.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 544.85 Td (MFFO) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.00 544.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 448.30 544.85 Td (839) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.00 544.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.30 544.85 Td (991) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 517.10 Td (FFO and MFFO may also be used to fund all or a portion of certain capitalizable items that are excluded from FFO and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 505.10 Td (MFFO, such as tenant improvements, building improvements and deferred leasing costs. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 487.10 Td (Organization and Offering Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 469.10 Td (Of) Tj ET Q q 0 0 0 rg BT 83.87 469.10 Td (fering costs include all expenses incurred in connection with our of) Tj ET Q q 0 0 0 rg BT 352.50 469.10 Td (ferings of securities. Or) Tj ET Q q 0 0 0 rg BT 446.73 469.10 Td (ganization costs include all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.10 Td (expenses incurred in connection with our formation, including but not limited to legal fees and other costs to incorporate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 439.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.54 439.10 Td (ith respect to our public of) Tj ET Q q 0 0 0 rg BT 188.16 439.10 Td (fering, our advisor and dealer manager generally paid our or) Tj ET Q q 0 0 0 rg BT 428.99 439.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 498.23 439.10 Td (fering expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.10 Td (incurred in the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 263.99 427.10 Td (fering \(other than selling commissions, dealer manager fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.10 Td (stockholder servicing fees\) directly) Tj ET Q q 0 0 0 rg BT 189.63 415.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 397.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 397.10 Td (e reimbursed our advisor) Tj ET Q q 0 0 0 rg BT 181.43 397.10 Td (, our af) Tj ET Q q 0 0 0 rg BT 209.85 397.10 Td (filiated dealer manager and their af) Tj ET Q q 0 0 0 rg BT 349.87 397.10 Td (filiates up to 1.0% of gross primary of) Tj ET Q q 0 0 0 rg BT 502.44 397.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.10 Td (proceeds raised in our initial public of) Tj ET Q q 0 0 0 rg BT 201.50 385.10 Td (fering for commercially reasonable or) Tj ET Q q 0 0 0 rg BT 352.91 385.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 422.15 385.10 Td (fering expenses. Our advisor) Tj ET Q q 0 0 0 rg BT 536.72 385.10 Td (, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 373.10 Td (filiated dealer manager) Tj ET Q q 0 0 0 rg BT 148.86 373.10 Td (, and their af) Tj ET Q q 0 0 0 rg BT 199.21 373.10 Td (filiates were responsible for all or) Tj ET Q q 0 0 0 rg BT 333.70 373.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 425.98 373.10 Td (fering expenses \(which excludes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 361.10 Td (selling commissions, dealer manager fees and stockholder servicing fees\) related to the primary portion of our initial public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 349.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 349.10 Td (fering to the extent they exceeded 1.0% of gross proceeds raised in the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 496.22 349.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 527.42 349.10 Td (W) Tj ET Q q 0 0 0 rg BT 536.06 349.10 Td (e did ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.10 Td (not reimburse our af) Tj ET Q q 0 0 0 rg BT 130.68 337.10 Td (filiated dealer manager for wholesaling compensation expenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 319.10 Td (During our initial private of) Tj ET Q q 0 0 0 rg BT 184.40 319.10 Td (fering, we were obligated to reimburse our advisor) Tj ET Q q 0 0 0 rg BT 386.71 319.10 Td (, our af) Tj ET Q q 0 0 0 rg BT 415.13 319.10 Td (filiated dealer manager or their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 307.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 307.10 Td (filiates, as applicable, for or) Tj ET Q q 0 0 0 rg BT 168.53 307.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 237.77 307.10 Td (fering costs \(excluding wholesaling compensation expenses\) paid by them on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 295.10 Td (our behalf. ) Tj ET Q q 0 0 0 rg BT 95.13 295.10 Td (W) Tj ET Q q 0 0 0 rg BT 103.77 295.10 Td (e recorded $1.5 million of of) Tj ET Q q 0 0 0 rg BT 218.56 295.10 Td (fering costs \(other than selling commissions and dealer manager fees\) related to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.10 Td (initial private of) Tj ET Q q 0 0 0 rg BT 113.74 283.10 Td (fering, all of which have been reimbursed to our advisor or its af) Tj ET Q q 0 0 0 rg BT 371.54 283.10 Td (filiates. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 265.10 Td (Our advisor has agreed to pay all of) Tj ET Q q 0 0 0 rg BT 216.33 265.10 Td (fering expenses related to our recently launched second private placement of) Tj ET Q q 0 0 0 rg BT 522.68 265.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.10 Td (directly on our behalf without reimbursement by us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 235.10 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 235.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.54 235.10 Td (, our advisor and its af) Tj ET Q q 0 0 0 rg BT 261.78 235.10 Td (filiates had incurred or) Tj ET Q q 0 0 0 rg BT 352.40 235.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 444.68 235.10 Td (fering costs \(which exclude ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.10 Td (selling commissions, dealer manager fees and stockholder servicing fees\) on our behalf in connection with the initial public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 211.10 Td (fering of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.12 211.10 Td ($4.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.01 211.10 Td (. ) Tj ET Q q 0 0 0 rg BT 208.46 211.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.90 211.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.50 211.10 Td (, we recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.13 211.10 Td ($39,358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.63 211.10 Td ( of or) Tj ET Q q 0 0 0 rg BT 407.11 211.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 499.40 211.10 Td (fering expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.10 Td (related to the initial public of) Tj ET Q q 0 0 0 rg BT 165.67 199.10 Td (fering, which amounts represent our maximum liability for or) Tj ET Q q 0 0 0 rg BT 411.82 199.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 504.10 199.10 Td (fering costs as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.10 Td (of the termination of our primary initial public of) Tj ET Q q 0 0 0 rg BT 245.94 187.10 Td (fering based on the limitation described above. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 169.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 169.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 169.10 Td (, KBS Capital ) Tj ET Q q 0 0 0 rg BT 217.83 169.10 Td (Advisors had incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.19 169.10 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.08 169.10 Td ( in of) Tj ET Q q 0 0 0 rg BT 379.01 169.10 Td (fering expenses on our behalf related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 157.10 Td (second private placement of) Tj ET Q q 0 0 0 rg BT 161.77 157.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 192.97 157.10 Td (The advisor has agreed to pay these expenses on our behalf without reimbursement by us.) Tj ET Q endstream endobj 67 0 obj <>] /Rotate 0 /Contents 68 0 R>> endobj 68 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Distributions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 686.25 Td (During our of) Tj ET Q q 0 0 0 rg BT 128.31 686.25 Td (fering stage, when we may raise capital more quickly than we acquire income producing assets, and from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (time to time during our operational stage, we may not pay distributions solely from our cash flows from operations, in which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (case distributions may be paid in whole or in part from debt financing, including advances from our advisor) Tj ET Q q 0 0 0 rg BT 480.10 662.25 Td (, if necessary) Tj ET Q q 0 0 0 rg BT 531.93 662.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (Distributions declared, distributions paid and cash flows from operations were as follows for the first quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.72 650.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.72 650.25 Td ( \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (thousands, except per share amounts\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 593.75 92.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 142.00 593.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 146.00 593.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.00 593.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 202.00 593.75 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 593.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 593.75 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 593.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 593.75 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 593.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.00 593.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 593.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 593.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 593.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.00 593.75 51.00 -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 350 607.75 m 400 607.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 607.75 m 404 607.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 607.75 m 455 607.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 607.75 m 459 607.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 607.75 m 508 607.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 593.75 m 142 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 593.75 m 198 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202 593.75 m 272 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 593.75 m 400 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 593.75 m 455 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 593.75 m 508 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 593.75 m 198 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202 593.75 m 272 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276 593.75 m 346 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 593.75 m 400 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 593.75 m 455 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 593.75 m 508 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 593.75 m 563 593.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 162.80 613.83 Td (Cash ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 149.05 605.83 Td (Distributions ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 152.55 597.83 Td (Declar) Tj ET Q q 0 0 0 rg BT 175.06 597.83 Td (ed) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 183.06 601.46 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.90 613.83 Td (Cash Distribution ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 214.30 605.83 Td (Declar) Tj ET Q q 0 0 0 rg BT 236.81 605.83 Td (ed Per) Tj ET Q q 0 0 0 rg BT 258.65 605.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.60 597.83 Td (Class ) Tj ET Q q 0 0 0 rg BT 225.39 597.83 Td (A) Tj ET Q q 0 0 0 rg BT 230.72 597.83 Td ( Shar) Tj ET Q q 0 0 0 rg BT 249.03 597.83 Td (e) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 252.58 601.46 Td ( \(1\) \(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.90 613.83 Td (Cash Distribution ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.30 605.83 Td (Declar) Tj ET Q q 0 0 0 rg BT 310.81 605.83 Td (ed Per) Tj ET Q q 0 0 0 rg BT 332.65 605.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.55 597.83 Td (Class ) Tj ET Q q 0 0 0 rg BT 299.63 597.83 Td (T) Tj ET Q q 0 0 0 rg BT 304.82 597.83 Td ( Shar) Tj ET Q q 0 0 0 rg BT 323.13 597.83 Td (e) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 326.68 601.46 Td ( \(1\) \(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.90 611.98 Td ( Cash Distributions Paid) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 466.70 615.61 Td ( \(3\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.30 613.83 Td (Cash Flows) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.20 605.83 Td (\(used in\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.85 597.83 Td (Operations) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 84.15 597.98 Td (Period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.80 597.98 Td (Cash) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.30 597.98 Td (Reinvested) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.25 597.98 Td (T) Tj ET Q q 0 0 0 rg BT 478.85 597.98 Td (otal) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 584.00 Td (First Quarter 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 148.50 584.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 176.80 584.00 Td (1,1) Tj ET Q q 0 0 0 rg BT 186.80 584.00 Td (18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 204.50 584.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.80 584.00 Td (0.1) Tj ET Q q 0 0 0 rg BT 260.80 584.00 Td (19) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 278.50 584.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 324.80 584.00 Td (0.1) Tj ET Q q 0 0 0 rg BT 334.80 584.00 Td (19) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.50 584.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 584.00 Td (612) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.50 584.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.80 584.00 Td (51) Tj ET Q q 0 0 0 rg BT 447.80 584.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 461.50 584.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.75 584.00 Td (1,123) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 514.50 584.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 584.00 Td (\(574) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 584.00 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 559.27 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 555.65 Td ( Distributions for the periods from January1,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.43 555.65 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 218.43 555.65 Td ( through ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 247.31 555.65 Td (March31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.19 555.65 Td ( were based on daily record dates and were calculated based on stockholders of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 546.05 Td (record each day during this period at a rate of $0.00132452 per share per day) Tj ET Q q 0 0 0 rg BT 297.33 546.05 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 537.08 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 533.45 Td ( ) Tj ET Q q 0 0 0 rg BT 57.12 533.45 Td (Assumes Class ) Tj ET Q q 0 0 0 rg BT 106.91 533.45 Td (A) Tj ET Q q 0 0 0 rg BT 112.24 533.45 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 146.98 533.45 Td (T) Tj ET Q q 0 0 0 rg BT 151.73 533.45 Td ( shares were 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 49.50 524.48 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 520.85 Td ( Distributions are paid on a monthly basis. In general, distributions for all record dates of a given month are paid on or about the first business day of the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 511.25 Td (following month) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 103.05 511.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 487.25 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.61 487.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.59 487.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.42 487.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.02 487.25 Td (, we paid aggregate distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.59 487.25 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.48 487.25 Td (, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.76 487.25 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 487.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.25 Td (distributions paid in cash and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.21 475.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.10 475.25 Td ( of distributions reinvested through our distribution reinvestment plan. Our net loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.25 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 463.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.36 463.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.19 463.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.79 463.25 Td ( was $0.2 million.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.9333333333333333 0.15294117647058825 0.1411764705882353 rg BT 294.73 463.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 297.23 463.25 Td ( FFO for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.45 463.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.44 463.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.26 463.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.86 463.25 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.41 463.25 Td ($2.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 451.25 Td ( and cash flows used in operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.96 451.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.95 451.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.77 451.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.37 451.25 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.92 451.25 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.81 451.25 Td (. See the reconciliation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.25 Td (of FFO to net loss above. ) Tj ET Q q 0 0 0 rg BT 152.93 439.25 Td (W) Tj ET Q q 0 0 0 rg BT 161.57 439.25 Td (e funded our total distributions paid, which includes net cash distributions and distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.25 Td (reinvested by stockholders, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.42 427.25 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.31 427.25 Td ( of cash flows from operations in excess of distributions paid during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.26 427.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.26 427.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.70 427.25 Td ($0.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 415.25 Td ( of debt financing. In addition, our advisor waived and deferred certain of its asset management fees which resulted in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.25 Td (more cash being available for distribution. ) Tj ET Q q 0 0 0 rg BT 223.71 403.25 Td (T) Tj ET Q q 0 0 0 rg BT 229.12 403.25 Td (o the extent that we pay distributions from sources other than our cash flows from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.25 Td (operations, we will have less funds available for the acquisition of real estate investments, the overall return to our stockholders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.25 Td (may be reduced and subsequent investors will experience dilution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 361.25 Td (Going forward we expect our board of directors to continue to authorize and declare cash distributions based on daily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 349.25 Td (record dates and to pay these distributions on a monthly basis. Cash distributions will be determined by our board of directors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.25 Td (based on our financial condition and such other factors as our board of directors deems relevant. Our board of directors has not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.25 Td (pre-established a percentage rate of return for cash distributions to stockholders. ) Tj ET Q q 0 0 0 rg BT 372.54 325.25 Td (W) Tj ET Q q 0 0 0 rg BT 381.18 325.25 Td (e have not established a minimum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.25 Td (distribution level, and our charter does not require that we make distributions to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 295.25 Td (Over the long-term, we expect that a greater percentage of our distributions will be paid from cash flow from operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.25 Td (and FFO \(except with respect to distributions related to sales of our assets. Our operating performance cannot be accurately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.25 Td (predicted and may deteriorate in the future due to numerous factors, including those discussed under Forward - Looking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 259.25 Td (Statements, Market Outlook - Real Estate and Real Estate Finance Markets, Liquidity and Capital Resources and Results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.25 Td (of Operations herein and the risks discussed herein and in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 346.64 247.25 Td ( of our ) Tj ET Q q 0 0 0 rg BT 375.25 247.25 Td (Annual Report on Form 10-K for the year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.25 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 235.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.46 235.25 Td (, as filed with the SEC. ) Tj ET Q q 0 0 0 rg BT 249.27 235.25 Td (Those factors include: our ability to raise capital to make additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.25 Td (investments; the future operating performance of our current and future real estate investments in the existing real estate and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.25 Td (financial environment; our advisor) Tj ET Q q 0 0 0 rg BT 188.44 211.25 Td () Tj ET Q q 0 0 0 rg BT 191.22 211.25 Td (s ability to identify additional real estate investments that are suitable to execute our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.25 Td (investment objectives; the success and economic viability of our tenants; our ability to refinance existing indebtedness at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.25 Td (comparable terms; changes in interest rates on any variable rate debt obligations we incur; and the level of participation in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.25 Td (distribution reinvestment plan. In the event our FFO and/or cash flow from operations decrease in the future, the level of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.25 Td (distributions may also decrease. In addition, future distributions declared and paid may exceed FFO and/or cash flow from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.25 Td (operations.) Tj ET Q endstream endobj 69 0 obj <>] /Rotate 0 /Contents 70 0 R>> endobj 70 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (33) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Critical ) Tj ET Q q 0 0 0 rg BT 84.21 704.25 Td (Accounting Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 686.25 Td (Our consolidated interim financial statements and condensed notes thereto have been prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 558.79 686.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (and in conjunction with the rules and regulations of the SEC. ) Tj ET Q q 0 0 0 rg BT 298.44 674.25 Td (The preparation of our financial statements requires significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (management judgments, assumptions and estimates about matters that are inherently uncertain. ) Tj ET Q q 0 0 0 rg BT 434.77 662.25 Td (These judgments af) Tj ET Q q 0 0 0 rg BT 512.90 662.25 Td (fect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 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 49.50 638.25 Td (statements and the reported amounts of revenue and expenses during the reporting periods. ) Tj ET Q q 0 0 0 rg BT 417.82 638.25 Td (W) Tj ET Q q 0 0 0 rg BT 426.86 638.25 Td (ith dif) Tj ET Q q 0 0 0 rg BT 450.84 638.25 Td (ferent estimates or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (assumptions, materially dif) Tj ET Q q 0 0 0 rg BT 157.91 626.25 Td (ferent amounts could be reported in our financial statements. ) Tj ET Q q 0 0 0 rg BT 405.33 626.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 455.24 626.25 Td (, other companies may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (utilize dif) Tj ET Q q 0 0 0 rg BT 87.92 614.25 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 49.50 602.25 Td (businesses. ) Tj ET Q q 0 0 0 rg BT 98.67 602.25 Td (A) Tj ET Q q 0 0 0 rg BT 105.34 602.25 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 49.50 590.25 Td (management judgments, assumptions and estimates is included in our ) Tj ET Q q 0 0 0 rg BT 330.01 590.25 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 49.50 578.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 578.25 Td ( filed with the SEC. ) Tj ET Q q 0 0 0 rg BT 212.06 578.25 Td (There have been no significant changes to our policies during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.87 578.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.87 578.25 Td (, except for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (adoption of the revenue recognition standards issued by the Financial ) Tj ET Q q 0 0 0 rg BT 328.88 566.25 Td (Accounting Standards Board ef) Tj ET Q q 0 0 0 rg BT 454.50 566.25 Td (fective on January 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (2018.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 518.25 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.26 518.25 Td (fective January 1, 2018, we adopted ) Tj ET Q q 0 0 0 rg BT 227.32 518.25 Td (ASU No. 2014-09, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 305.38 518.25 Td (Revenue fr) Tj ET Q q 0 0 0 rg BT 348.04 518.25 Td (om Contracts with Customers \(T) Tj ET Q q 0 0 0 rg BT 477.69 518.25 Td (opic 606\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.74 518.25 Td ( \(ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (No. 2014-09\) using the modified retrospective approach, which requires a cumulative ef) Tj ET Q q 0 0 0 rg BT 406.70 506.25 Td (fect adjustment as of the date of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (adoption. Under the modified retrospective approach, an entity may also elect to apply this standard to either \(i\) all contracts as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (of January 1, 2018 or \(ii\) only to contracts that were not completed as of January 1, 2018. ) Tj ET Q q 0 0 0 rg BT 412.19 482.25 Td (A) Tj ET Q q 0 0 0 rg BT 418.86 482.25 Td ( completed contract is a contract ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (for which all \(or substantially all\) of the revenue was recognized under legacy GAAP) Tj ET Q q 0 0 0 rg BT 390.96 470.25 Td ( that was in ef) Tj ET Q q 0 0 0 rg BT 446.87 470.25 Td (fect before the date of initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (application. ) Tj ET Q q 0 0 0 rg BT 98.75 458.25 Td (W) Tj ET Q q 0 0 0 rg BT 107.39 458.25 Td (e elected to apply this standard only to contracts that were not completed as of January 1, 2018. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 440.25 Td (Based on our evaluation of contracts within the scope of ) Tj ET Q q 0 0 0 rg BT 299.16 440.25 Td (ASU No. 2014-09, revenue that is impacted by ) Tj ET Q q 0 0 0 rg BT 489.13 440.25 Td (ASU No. 2014-09 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (includes revenue generated by sales of real estate, other operating income and tenant reimbursements for substantial services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (earned at our properties. ) Tj ET Q q 0 0 0 rg BT 149.00 416.25 Td (The recognition of such revenue will occur when the services are provided and the performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (obligations are satisfied. For the three months ended March 31, 2018, tenant reimbursements for substantial services accounted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (for under ) Tj ET Q q 0 0 0 rg BT 88.38 392.25 Td (ASU No. 2014-09 was $36,000 which was included in tenant reimbursements on the accompanying statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (Sales of Real Estate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 347.25 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.26 347.25 Td (fective January 1, 2018, we adopted the guidance of ) Tj ET Q q 0 0 0 rg BT 291.46 347.25 Td (ASC 610-20, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 346.75 347.25 Td (Other Income - Gains and Losses fr) Tj ET Q q 0 0 0 rg BT 489.70 347.25 Td (om the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 335.25 Td (Der) Tj ET Q q 0 0 0 rg BT 64.68 335.25 Td (ecognition of Nonfinancial ) Tj ET Q q 0 0 0 rg BT 174.21 335.25 Td (Assets \(ASC 610-20\),) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.60 335.25 Td ( which applies to sales or transfers to noncustomers of nonfinancial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.25 Td (assets or in substance nonfinancial assets that do not meet the definition of a business. Generally) Tj ET Q q 0 0 0 rg BT 437.37 323.25 Td (, our sales of real estate would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.25 Td (be considered a sale of a nonfinancial asset as defined by ) Tj ET Q q 0 0 0 rg BT 279.69 311.25 Td (ASC 610-20.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 293.25 Td (ASC 610-20 refers to the revenue recognition principles under ) Tj ET Q q 0 0 0 rg BT 323.88 293.25 Td (ASU No. 2014-09. Under ) Tj ET Q q 0 0 0 rg BT 431.37 293.25 Td (ASC 610-20, if we determine it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.25 Td (does not have a controlling financial interest in the entity that holds the asset and the arrangement meets the criteria to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.25 Td (accounted for as a contract, we would derecognize the asset and recognize a gain or loss on the sale of the real estate when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.25 Td (control of the underlying asset transfers to the buyer) Tj ET Q q 0 0 0 rg BT 257.78 257.25 Td (. ) Tj ET Q q 0 0 0 rg BT 264.72 257.25 Td (As a result of the adoption of ) Tj ET Q q 0 0 0 rg BT 383.31 257.25 Td (ASU 610-20, there was no impact to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.25 Td (consolidated financial statements of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.60 245.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.58 245.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.41 245.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.01 245.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.44 245.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.44 245.25 Td ( since we did not sell any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.25 Td (real estate properties for those periods.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 215.25 Td (Subsequent Events) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 197.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 197.25 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 49.50 179.25 Td (Cash Distributions Paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 164.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.67 164.25 Td (April 2, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.28 164.25 Td (, we paid cash distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.76 164.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 164.25 Td (, which related to distributions on our common stock, declared ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (for daily record dates for each day in the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.13 152.25 Td (March1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.73 152.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.84 152.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.44 152.25 Td (. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.66 152.25 Td (May 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.49 152.25 Td (, we paid cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.25 Td (distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.83 140.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.73 140.25 Td (, which related to distributions on our common stock, declared for daily record dates for each day in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.25 Td (the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.65 128.25 Td (April1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.26 128.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.82 128.25 Td (April30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.42 128.25 Td (.) Tj ET Q endstream endobj 71 0 obj <>] /Rotate 0 /Contents 72 0 R>> endobj 72 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (34) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Distributions ) Tj ET Q q 0 0 0 rg BT 105.54 704.25 Td (Authorized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 689.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 689.25 Td (March9, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.82 689.25 Td (, our board of directors authorized cash distributions on the outstanding shares of all classes of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (common stock based on daily record dates for the period from May 1, 2018 through May 31, 2018, which we expect to pay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (June 2018, calculated at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.33 665.25 Td ($0.00132452) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.83 665.25 Td ( per share per day) Tj ET Q q 0 0 0 rg BT 306.25 665.25 Td (. On ) Tj ET Q q 0 0 0 rg BT 325.42 665.25 Td (April 4, 2018, our board of directors authorized additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (cash distributions on the outstanding shares of all classes of our common stock based on daily record dates for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td (May 1, 2018 through May 31, 2018, which we expect to pay in June 2018, calculated at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.28 641.25 Td ($0.00012041) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.78 641.25 Td ( per share per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (day) Tj ET Q q 0 0 0 rg BT 63.29 629.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 611.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 611.25 Td (May 7, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.05 611.25 Td (, our board of directors authorized cash distributions on the outstanding shares of all classes of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.25 Td (common stock based on daily record dates for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.81 599.25 Td (June1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.64 599.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.75 599.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.58 599.25 Td (, which we expect to pay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.25 Td (July 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.67 587.25 Td (, and cash distributions on the outstanding shares of all classes of our common stock based on daily record dates for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.25 Td (the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.20 575.25 Td (July1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.37 575.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.48 575.25 Td (July31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.65 575.25 Td (, which we expect to pay in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.34 575.25 Td ( ) Tj ET Q q 0 0 0 rg BT 365.29 575.25 Td (August 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.68 575.25 Td (. Investors may choose to receive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.25 Td (cash distributions or purchase additional shares through our distribution reinvestment plan. Distributions for these periods will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.25 Td (be calculated based on stockholders of record each day during these periods at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.47 551.25 Td ($0.00144493) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.97 551.25 Td (per share per day) Tj ET Q q 0 0 0 rg BT 523.39 551.25 Td (.) Tj ET Q endstream endobj 73 0 obj <>] /Rotate 0 /Contents 74 0 R>> endobj 74 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item3. Quantitative and Qualitative Disclosur) Tj ET Q q 0 0 0 rg BT 250.09 730.60 Td (es about Market Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 704.10 Td (e are exposed to the ef) Tj ET Q q 0 0 0 rg BT 171.63 704.10 Td (fects of interest rate changes as a result of borrowings used to maintain liquidity and to fund the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (acquisition, expansion and refinancing of our real estate investment portfolio and 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 real estate investment portfolio may be adversely af) Tj ET Q q 0 0 0 rg BT 272.01 680.10 Td (fected during any period as a result of interest rate changes. Our interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (rate risk management objectives are to limit the impact of interest rate changes on earnings, prepayment penalties and cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (flows and to lower overall borrowing costs. ) Tj ET Q q 0 0 0 rg BT 228.45 656.10 Td (W) Tj ET Q q 0 0 0 rg BT 237.09 656.10 Td (e may manage interest rate risk by maintaining a ratio of fixed rate, long-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (debt such that variable rate exposure is kept at an acceptable level or we may utilize a variety of financial instruments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (including interest rate caps, floors, and swap agreements, in order to limit the ef) Tj ET Q q 0 0 0 rg BT 368.67 632.10 Td (fects of changes in interest rates on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (operations. ) Tj ET Q q 0 0 0 rg BT 96.16 620.10 Td ( ) Tj ET Q q 0 0 0 rg BT 98.47 620.10 Td (When ) Tj ET Q q 0 0 0 rg BT 124.85 620.10 Td (we ) Tj ET Q q 0 0 0 rg BT 139.01 620.10 Td (use ) Tj ET Q q 0 0 0 rg BT 154.84 620.10 Td (these ) Tj ET Q q 0 0 0 rg BT 177.89 620.10 Td (types ) Tj ET Q q 0 0 0 rg BT 201.50 620.10 Td (of ) Tj ET Q q 0 0 0 rg BT 212.33 620.10 Td (derivatives ) Tj ET Q q 0 0 0 rg BT 258.70 620.10 Td (to ) Tj ET Q q 0 0 0 rg BT 268.98 620.10 Td (hedge ) Tj ET Q q 0 0 0 rg BT 295.35 620.10 Td (the ) Tj ET Q q 0 0 0 rg BT 310.07 620.10 Td (risk ) Tj ET Q q 0 0 0 rg BT 327.57 620.10 Td (of ) Tj ET Q q 0 0 0 rg BT 338.40 620.10 Td (interest-earning ) Tj ET Q q 0 0 0 rg BT 403.65 620.10 Td (assets ) Tj ET Q q 0 0 0 rg BT 429.48 620.10 Td (or ) Tj ET Q q 0 0 0 rg BT 440.31 620.10 Td (interest) Tj ET Q /GS0 gs q 5.00 0 0 10.09 469.74 617.94 cm /I23 Do Q q 0 0 0 rg BT 474.74 620.10 Td (bearing ) Tj ET Q q 0 0 0 rg BT 507.23 620.10 Td (liabilities, ) Tj ET Q q 0 0 0 rg BT 549.45 620.10 Td (we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (may be subject to certain risks, including the risk that losses on a hedge position will reduce the funds available for the payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (of distributions to 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 73.50 578.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 578.10 Td (e expect to borrow funds and make investments at a combination of fixed and variable rates. Interest rate fluctuations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (will generally not af) Tj ET Q q 0 0 0 rg BT 130.13 566.10 Td (fect future earnings or cash flows on fixed rate debt unless such debt mature or is otherwise terminated. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (However) Tj ET Q q 0 0 0 rg BT 85.75 554.10 Td (, interest rate changes will af) Tj ET Q q 0 0 0 rg BT 200.52 554.10 Td (fect the fair value of fixed rate instruments. ) Tj ET Q q 0 0 0 rg BT 378.23 554.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.73 554.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.33 554.10 Td (, we did not have any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (fixed rate debt outstanding. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 524.10 Td (Conversely) Tj ET Q q 0 0 0 rg BT 118.40 524.10 Td (, movements in interest rates on variable rate debt would change future earnings and cash flows, but not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (significantly af) Tj ET Q q 0 0 0 rg BT 109.58 512.10 Td (fect the fair value of the debt. However) Tj ET Q q 0 0 0 rg BT 268.83 512.10 Td (, changes in required risk premiums would result in changes in the fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (value of variable rate instruments. ) Tj ET Q q 0 0 0 rg BT 190.29 500.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.79 500.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.38 500.10 Td (, we were exposed to market risks related to fluctuations in interest rates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.00 488.10 Td ($1) Tj ET Q q 0 0 0 rg BT 71.63 488.10 Td (17.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.52 488.10 Td ( of variable rate debt outstanding. ) Tj ET Q q 0 0 0 rg BT 257.24 488.10 Td (This amount does not take into account the impact of $78.5 million of two ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (forward interest rate swap agreements that were not yet ef) Tj ET Q q 0 0 0 rg BT 281.16 476.10 Td (fective as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.52 476.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.12 476.10 Td (. Based on interest rates as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.03 476.10 Td (March31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 464.10 Td (, if interest rates were 100 basis points higher or lower during the 12 months ending March 31, 2019, interest expense on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (our variable rate debt would increase or decrease by $1.2 million. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 434.10 Td (The weighted average interest rate of our variable rate debt at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.99 434.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.58 434.10 Td ( was 3.6%. ) Tj ET Q q 0 0 0 rg BT 434.29 434.10 Td (The interest rate represents the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (actual interest rate in ef) Tj ET Q q 0 0 0 rg BT 143.16 422.10 Td (fect at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.36 422.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.96 422.10 Td ( \(consisting of the contractual interest rate\), using interest rate indices as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.10 410.10 Td ( where applicable. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (Item4. Contr) Tj ET Q q 0 0 0 rg BT 109.86 386.10 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 153.02 386.10 Td (ocedur) Tj ET Q q 0 0 0 rg BT 182.28 386.10 Td (es) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (Disclosur) Tj ET Q q 0 0 0 rg BT 89.32 368.10 Td (e Contr) Tj ET Q q 0 0 0 rg BT 121.63 368.10 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 164.79 368.10 Td (ocedur) Tj ET Q q 0 0 0 rg BT 194.05 368.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 350.10 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 474.86 350.10 Td (ficer and principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (financial of) Tj ET Q q 0 0 0 rg BT 95.13 338.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 113.04 338.10 Td (, evaluated the ef) Tj ET Q q 0 0 0 rg BT 181.16 338.10 Td (fectiveness of the design and operation of our disclosure controls and procedures. Based upon, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (and as of the date of, the evaluation, our principal executive of) Tj ET Q q 0 0 0 rg BT 299.50 326.10 Td (ficer and principal financial of) Tj ET Q q 0 0 0 rg BT 420.93 326.10 Td (ficer concluded that the disclosure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (controls and procedures were ef) Tj ET Q q 0 0 0 rg BT 177.04 314.10 Td (fective as of the end of the period covered by this report to ensure that information required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (be disclosed in the reports we file and submit under the Exchange ) Tj ET Q q 0 0 0 rg BT 314.43 302.10 Td (Act is recorded, processed, summarized and reported as and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (when required. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (information required to be disclosed by us in the reports we file and submit under the Exchange ) Tj ET Q q 0 0 0 rg BT 434.12 278.10 Td (Act is accumulated and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (communicated to our management, including our principal executive of) Tj ET Q q 0 0 0 rg BT 336.17 266.10 Td (ficer and our principal financial of) Tj ET Q q 0 0 0 rg BT 473.43 266.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 491.34 266.10 Td (, as appropriate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (to allow timely decisions regarding required disclosure. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 112.37 236.10 Td (ol Over) Tj ET Q q 0 0 0 rg BT 144.12 236.10 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 218.10 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 49.50 206.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.10 206.10 Td ( that have materially af) Tj ET Q q 0 0 0 rg BT 205.10 206.10 Td (fected, or are reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 392.05 206.10 Td (fect, our internal control over financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (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. OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.99 748.60 Td (TION ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (36) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 718.40 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 85.50 718.40 Td (Legal Pr) Tj ET Q q 0 0 0 rg BT 122.25 718.40 Td (oceedings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 700.40 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 676.40 Td (Item 1A. Risk Factors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 658.40 Td (Please see the risks discussed below and in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 305.84 658.40 Td ( of our ) Tj ET Q q 0 0 0 rg BT 334.45 658.40 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 49.50 646.40 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 646.40 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 628.40 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 628.40 Td (e have paid distributions from advances from our advisor and debt financing. In the future we may continue to pay ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 616.40 Td (distributions from financings, including an advance from our advisor) Tj ET Q q 0 0 0 rg BT 335.39 616.40 Td (, and we may not pay distributions solely from our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 604.40 Td (cash flow from operations. T) Tj ET Q q 0 0 0 rg BT 167.20 604.40 Td (o the extent we pay distributions from sources other than our cash flows from operations, we ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 592.40 Td (will have less funds available for investment in assets, the overall return to our stockholders may be reduced and subsequent ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 580.40 Td (investors will experience dilution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 565.40 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 565.40 Td (e expect to have little, if any) Tj ET Q q 0 0 0 rg BT 193.55 565.40 Td (, cash flow from operations available for distribution until we make substantial investments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.40 Td (and we therefore expect that portions of distributions made during our first few years of operations will be considered a return ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.40 Td (of capital. During our of) Tj ET Q q 0 0 0 rg BT 146.79 541.40 Td (fering stage, when we may raise capital more quickly than we acquire income-producing assets, and for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.40 Td (some period after our of) Tj ET Q q 0 0 0 rg BT 145.95 529.40 Td (fering stage, we may not be able to pay distributions solely from our cash flow from operations, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 517.40 Td (which case distributions may be paid in whole or in part from debt financing, including advances from our advisor) Tj ET Q q 0 0 0 rg BT 506.89 517.40 Td (. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 505.40 Td (distributions paid through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.33 505.40 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.93 505.40 Td ( have been paid from cash flow from operating activities, advances from our advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.40 Td (and debt financing and we expect that in the future we may not pay distributions solely from our cash flow from operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 475.40 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 475.40 Td (e may fund distributions from any source, including, without limitation, of) Tj ET Q q 0 0 0 rg BT 378.47 475.40 Td (fering proceeds or borrowings \(which may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.40 Td (constitute a return of capital\). ) Tj ET Q q 0 0 0 rg BT 169.83 463.40 Td (W) Tj ET Q q 0 0 0 rg BT 178.46 463.40 Td (e may also fund such distributions from the sale of assets. If we fund distributions from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.40 Td (borrowings, our interest expense and other financing costs, as well as the repayment of such borrowings, will reduce our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.40 Td (earnings and cash flow from operations available for distribution in future periods. If we fund distributions from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.40 Td (assets, this will af) Tj ET Q q 0 0 0 rg BT 120.42 427.40 Td (fect our ability to generate cash flow from operations in future periods. ) Tj ET Q q 0 0 0 rg BT 406.54 427.40 Td (T) Tj ET Q q 0 0 0 rg BT 411.95 427.40 Td (o the extent that we pay distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.40 Td (from sources other than our cash flow from operations, we will have fewer funds available with which to make real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.40 Td (investments, the overall return to our stockholders may be reduced and subsequent investors will experience dilution. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.40 Td (addition, to the extent distributions exceed cash flow from operations, a stockholder) Tj ET Q q 0 0 0 rg BT 385.62 391.40 Td () Tj ET Q q 0 0 0 rg BT 388.40 391.40 Td (s basis in our stock will be reduced and, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.40 Td (the extent distributions exceed a stockholder) Tj ET Q q 0 0 0 rg BT 227.87 379.40 Td () Tj ET Q q 0 0 0 rg BT 230.65 379.40 Td (s basis, the stockholder may recognize capital gain. ) Tj ET Q q 0 0 0 rg BT 438.18 379.40 Td (There is no limit on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.40 Td (amount of distributions we may fund from sources other than from cash flow from operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 349.40 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.11 349.40 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.09 349.40 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.92 349.40 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.52 349.40 Td (, we paid aggregate distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.09 349.40 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.98 349.40 Td (, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.26 349.40 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 349.40 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.40 Td (distributions paid in cash and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.21 337.40 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.10 337.40 Td ( of distributions reinvested through our distribution reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 501.77 337.40 Td (W) Tj ET Q q 0 0 0 rg BT 510.40 337.40 Td (e funded our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.40 Td (total distributions paid, which includes net cash distributions and distributions reinvested by stockholders, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.11 325.40 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.00 325.40 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.40 Td (cash flows from operations in excess of distributions paid during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.12 313.40 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.12 313.40 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.56 313.40 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.45 313.40 Td ( of debt financing. In addition, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.40 Td (advisor waived and deferred certain of its asset management fees which resulted in more cash being available for distribution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 283.40 Td (See Part I, Item II, Management) Tj ET Q q 0 0 0 rg BT 207.78 283.40 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 276.95 283.40 Td (Analysis of Financial Condition and Results of Operations -) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.40 Td (Distributions herein.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 253.40 Td (If our advisor determines to no longer waive or defer certain fees due to them, our ability to fund our operations and our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 241.40 Td (distributions at the current rate may be adversely af) Tj ET Q q 0 0 0 rg BT 261.54 241.40 Td (fected. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.40 Td (From time to time, our advisor may agree to waive or defer all or a portion of the asset management or other fees, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.40 Td (compensation or incentives due to it, pay general administrative expenses or otherwise supplement stockholder returns in order ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.40 Td (to increase the amount of cash available to fund our operations or make distributions to stockholders. Specifically) Tj ET Q q 0 0 0 rg BT 503.45 202.40 Td (, in the second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.40 Td (and third quarters of 2017 our advisor waived its asset management fee and in the fourth quarter of 2017 and first quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.40 Td (2018, the advisor deferred its asset management fee. If our advisor chooses to no longer waive or defer such fees, our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.40 Td (fund our operations and our distributions at the current rate may be adversely af) Tj ET Q q 0 0 0 rg BT 368.38 166.40 Td (fected.) 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 1A. Risk Factors \(continued\)) 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 /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 704.25 Td (e may experience adverse business developments or conditions similar to that which af) Tj ET Q q 0 0 0 rg BT 413.02 704.25 Td (fected one of the programs ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 692.25 Td (sponsored by our sponsor) Tj ET Q q 0 0 0 rg BT 154.25 692.25 Td (, which could limit our ability to make distributions and decrease the value of your investment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 677.25 Td (One of the programs sponsored by our sponsor experienced lower than originally expected returns. In particular) Tj ET Q q 0 0 0 rg BT 532.18 677.25 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (disruptions in the financial markets from 2008 to 201) Tj ET Q q 0 0 0 rg BT 262.42 665.25 Td (1 adversely af) Tj ET Q q 0 0 0 rg BT 318.33 665.25 Td (fected the fair values and recoverability of certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (investments of KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 227.07 653.25 Td (T) Tj ET Q q 0 0 0 rg BT 232.83 653.25 Td (rust, Inc. \(KBS REIT) Tj ET Q q 0 0 0 rg BT 322.35 653.25 Td ( I\) and KBS REIT) Tj ET Q q 0 0 0 rg BT 399.38 653.25 Td ( I sold at a discount, restructured or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td (received discounted payof) Tj ET Q q 0 0 0 rg BT 154.28 641.25 Td (fs or wrote of) Tj ET Q q 0 0 0 rg BT 208.25 641.25 Td (f approximately 17 real estate-related assets. In addition, KBS REIT) Tj ET Q q 0 0 0 rg BT 483.54 641.25 Td ( I disclosed fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (values below its book values for certain assets in its financial statements and recognized impairments related to certain assets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.25 Td (Because of these adverse business developments, investors in KBS REIT) Tj ET Q q 0 0 0 rg BT 342.04 617.25 Td ( I experienced an average annualized rate of return on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (investment of \(2.4\)%, including all distributions. Similarly) Tj ET Q q 0 0 0 rg BT 286.05 605.25 Td (, unforeseen adverse business conditions may af) Tj ET Q q 0 0 0 rg BT 478.31 605.25 Td (fect us and, as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.25 Td (result, your overall return may be reduced.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 575.25 Td (In February 2018 we exhausted funds available for all redemptions under our share redemption program for the remainder ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 563.25 Td (of 2018. Therefore, our stockholders will be unable to sell their shares under our share redemption program until January ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 551.25 Td (2019 when the dollar limitation resets. However) Tj ET Q q 0 0 0 rg BT 248.40 551.25 Td (, because of the amount of unfulfilled redemption requests, and limitations ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 539.25 Td (on the dollar amount of shares that may be redeemed and the number of shares that may be redeemed, it is likely that we ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 527.25 Td (will not be able to redeem all shares when the dollar limitation resets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 512.25 Td (During any calendar year) Tj ET Q q 0 0 0 rg BT 172.94 512.25 Td (, we may redeem \(i\) only the number of shares that we could purchase with the amount of net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.25 Td (proceeds from the sale of shares under our distribution reinvestment plan during the prior calendar year and \(ii\) no more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (5% ) Tj ET Q q 0 0 0 rg BT 65.33 488.25 Td (of ) Tj ET Q q 0 0 0 rg BT 76.16 488.25 Td (the ) Tj ET Q q 0 0 0 rg BT 90.88 488.25 Td (weighted) Tj ET Q /GS0 gs q 5.00 0 0 10.09 127.53 486.09 cm /I24 Do Q q 0 0 0 rg BT 132.53 488.25 Td (average ) Tj ET Q q 0 0 0 rg BT 166.12 488.25 Td (number ) Tj ET Q q 0 0 0 rg BT 199.16 488.25 Td (of ) Tj ET Q q 0 0 0 rg BT 209.99 488.25 Td (shares ) Tj ET Q q 0 0 0 rg BT 237.48 488.25 Td (outstanding ) Tj ET Q q 0 0 0 rg BT 286.65 488.25 Td (during ) Tj ET Q q 0 0 0 rg BT 315.26 488.25 Td (the ) Tj ET Q q 0 0 0 rg BT 329.97 488.25 Td (prior ) Tj ET Q q 0 0 0 rg BT 351.91 488.25 Td (calendar ) Tj ET Q q 0 0 0 rg BT 388.27 488.25 Td (year) Tj ET Q q 0 0 0 rg BT 404.93 488.25 Td (. ) Tj ET Q q 0 0 0 rg BT 409.93 488.25 Td ( ) Tj ET Q q 0 0 0 rg BT 412.43 488.25 Td (In ) Tj ET Q q 0 0 0 rg BT 423.26 488.25 Td (2017, ) Tj ET Q q 0 0 0 rg BT 448.26 488.25 Td (our ) Tj ET Q q 0 0 0 rg BT 464.09 488.25 Td (net ) Tj ET Q q 0 0 0 rg BT 478.81 488.25 Td (proceeds ) Tj ET Q q 0 0 0 rg BT 516.84 488.25 Td (from ) Tj ET Q q 0 0 0 rg BT 538.78 488.25 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.25 Td (distribution reinvestment plan were $2.3 million. ) Tj ET Q q 0 0 0 rg BT 247.25 476.25 Td (As of the February 2018 redemption date, we had exhausted this amount, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.25 Td (as of March 31, 2018, we had $4.7 million of outstanding and unfulfilled redemption requests representing 559,579 shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 446.25 Td (The annual limitation on the dollar amount of shares that may be redeemed under our share redemption program will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (reset on January 1, 2019. Once we have funds available for redemption, if we cannot redeem all shares presented for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (redemption in any month because of the dollar limitation on redemptions or the limitation on the number of shares that we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (redeem during the calendar year) Tj ET Q q 0 0 0 rg BT 177.92 410.25 Td (, each set forth in our share redemption program, then we will honor redemption requests on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (pro rata basis, except that if a pro rata redemption would result in a stockholder owning less than the minimum purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (requirement described in our most recently ef) Tj ET Q q 0 0 0 rg BT 231.47 386.25 Td (fective registration statement, then we would redeem all of such stockholder) Tj ET Q q 0 0 0 rg BT 537.02 386.25 Td () Tj ET Q q 0 0 0 rg BT 539.80 386.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (shares. ) Tj ET Q q 0 0 0 rg BT 81.81 374.25 Td (Therefore, even once the annual limitation on the dollar amount of shares that may be redeemed is reset, it is likely that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (our stockholders will be unable to have all of their shares redeemed under our share redemption program because we will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.25 Td (forced to redeem our stockholders pro rata based on the amount of funds we have available for redemption and the limitation on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.25 Td (the number of shares that may be redeemed.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (Our charter designates the Circuit Court for Baltimore City) Tj ET Q q 0 0 0 rg BT 294.16 320.25 Td (, Maryland as the sole and exclusive forum for certain types of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (actions and proceedings that may be initiated by our stockholders, which could limit our stockholders) Tj ET Q q 0 0 0 rg BT 469.07 308.25 Td ( ability to obtain a ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (favorable judicial forum for disputes with us or our directors, of) Tj ET Q q 0 0 0 rg BT 312.96 296.25 Td (ficers or employees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 281.25 Td (Our charter provides that, unless we consent in writing to the selection of an alternative forum, the Circuit Court for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.25 Td (Baltimore City) Tj ET Q q 0 0 0 rg BT 108.57 269.25 Td (, Maryland shall be the sole and exclusive forum for certain types of actions and proceedings that may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.25 Td (initiated by our stockholders with respect to our company) Tj ET Q q 0 0 0 rg BT 279.35 257.25 Td (, our directors, our of) Tj ET Q q 0 0 0 rg BT 364.15 257.25 Td (ficers or our employees \(we note we currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.25 Td (have no employees\). ) Tj ET Q q 0 0 0 rg BT 136.79 245.25 Td (This choice of forum provision may limit a stockholder) Tj ET Q q 0 0 0 rg BT 358.78 245.25 Td () Tj ET Q q 0 0 0 rg BT 361.56 245.25 Td (s ability to bring a claim in a judicial forum that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.25 Td (the stockholder believes is favorable for disputes with us or our directors, of) Tj ET Q q 0 0 0 rg BT 353.96 233.25 Td (ficers or employees, which may discourage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.25 Td (meritorious claims from being asserted against us and our directors, of) Tj ET Q q 0 0 0 rg BT 331.19 221.25 Td (ficers and employees. ) Tj ET Q q 0 0 0 rg BT 422.55 221.25 Td (Alternatively) Tj ET Q q 0 0 0 rg BT 474.66 221.25 Td (, if a court were to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.25 Td (find this provision of our bylaws inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.25 Td (proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions, which could adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 185.25 Td (fect our business, financial condition or results of operations. ) Tj ET Q q 0 0 0 rg BT 306.29 185.25 Td (W) Tj ET Q q 0 0 0 rg BT 314.93 185.25 Td (e adopted this provision because we believe it makes it less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.25 Td (likely that we will be forced to incur the expense of defending duplicative actions in multiple forums and less likely that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.25 Td (plaintif) Tj ET Q q 0 0 0 rg BT 78.20 161.25 Td (fs) Tj ET Q q 0 0 0 rg BT 88.01 161.25 Td ( attorneys will be able to employ such litigation to coerce us into otherwise unjustified settlements, and we believe the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.25 Td (risk of a court declining to enforce this provision is remote, as the General ) Tj ET Q q 0 0 0 rg BT 348.58 149.25 Td (Assembly of Maryland has specifically amended the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.25 Td (Maryland General Corporation Law to authorize the adoption of such provisions.) 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 86.00 730.60 Td (Unr) Tj ET Q q 0 0 0 rg BT 103.04 730.60 Td (egister) Tj ET Q q 0 0 0 rg BT 131.18 730.60 Td (ed Sales of Equity Securities and Use of Pr) Tj ET Q q 0 0 0 rg BT 312.10 730.60 Td (oceeds) 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 72.00 704.10 Td (a\) ) Tj ET Q q 0 0 0 rg BT 90.00 704.10 Td (During the quarter ended March 31, 2018, we sold the following equity securities that were not registered under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 692.10 Td (Securities ) Tj ET Q q 0 0 0 rg BT 131.38 692.10 Td (Act of 1933 \(the Act\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 674.10 Td (Pursuant to Rule 506\(c\) of Regulation D of the ) Tj ET Q q 0 0 0 rg BT 279.69 674.10 Td (Act, we are currently conducting a private of) Tj ET Q q 0 0 0 rg BT 458.88 674.10 Td (fering for the sale of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 662.10 Td (maximum of $1,000,000,000 of shares of our Class ) Tj ET Q q 0 0 0 rg BT 297.48 662.10 Td (A) Tj ET Q q 0 0 0 rg BT 304.15 662.10 Td ( common stock to accredited investors through a best ef) Tj ET Q q 0 0 0 rg BT 526.96 662.10 Td (forts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 650.10 Td (private placement of) Tj ET Q q 0 0 0 rg BT 172.00 650.10 Td (fering which commenced on October 3, 2017. ) Tj ET Q q 0 0 0 rg BT 360.65 650.10 Td (The exemption is available to us because the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 638.10 Td (shares are being of) Tj ET Q q 0 0 0 rg BT 165.06 638.10 Td (fered and sold solely to accredited investors and we are verifying accredited investor status. Prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 626.10 Td (to the launch of the private of) Tj ET Q q 0 0 0 rg BT 208.11 626.10 Td (fering, on September 29, 2017, we engaged North Capital Private Securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 614.10 Td (Corporation \(NCPS\) to act as dealer manager for the of) Tj ET Q q 0 0 0 rg BT 320.01 614.10 Td (fering. For sales executed by NCPS, our advisor pays ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 602.10 Td (NCPS, without reimbursement from us, selling commissions of 0.5% of the gross of) Tj ET Q q 0 0 0 rg BT 426.74 602.10 Td (fering proceeds. ) Tj ET Q q 0 0 0 rg BT 495.98 602.10 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 590.10 Td (December 1) Tj ET Q q 0 0 0 rg BT 138.21 590.10 Td (1, 2017, shares were sold in the private of) Tj ET Q q 0 0 0 rg BT 305.21 590.10 Td (fering at $8.75 per share. Ef) Tj ET Q q 0 0 0 rg BT 419.43 590.10 Td (fective December 12, 2017, we are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 578.10 Td (of) Tj ET Q q 0 0 0 rg BT 98.15 578.10 Td (fering shares in the private of) Tj ET Q q 0 0 0 rg BT 215.42 578.10 Td (fering at $8.79 per share. ) Tj ET Q q 0 0 0 rg BT 320.21 578.10 Td (Through March 31, 2018, we had raised approximately$1.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 566.10 Td (million related to the sale of125,322 shares of our Class ) Tj ET Q q 0 0 0 rg BT 317.73 566.10 Td (A) Tj ET Q q 0 0 0 rg BT 324.40 566.10 Td ( common stock in the private of) Tj ET Q q 0 0 0 rg BT 451.42 566.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 482.61 566.10 Td (Through March 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 554.10 Td (2018, our advisor had paid underwriting commissions of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.39 554.10 Td ($10,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.89 554.10 Td ( related to this private of) Tj ET Q q 0 0 0 rg BT 509.74 554.10 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 536.10 Td (b\) ) Tj ET Q q 0 0 0 rg BT 90.00 536.10 Td (Not applicable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 518.10 Td (c\) ) Tj ET Q q 0 0 0 rg BT 90.00 518.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 518.10 Td (e have adopted 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 90.00 506.10 Td (circumstances.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 488.10 Td (Pursuant to the share redemption program, as amended to date, there are several limitations on our ability to redeem ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 476.10 Td (shares: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 458.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 458.10 Td (Unless the shares are being redeemed in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 414.11 458.10 Td () Tj ET Q q 0 0 0 rg BT 416.89 458.10 Td (s death, qualifying disability or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 446.10 Td (determination of incompetence \(each as defined under the share redemption program\), we may not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 434.10 Td (redeem shares until the stockholder has held his or her shares for one year) Tj ET Q q 0 0 0 rg BT 425.68 434.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 419.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 419.10 Td (During any calendar year) Tj ET Q q 0 0 0 rg BT 231.44 419.10 Td (, we may redeem only the number of shares that we could purchase with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 407.10 Td (amount of net proceeds from the sale of shares under our distribution reinvestment plan during the prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 395.10 Td (calendar year) Tj ET Q q 0 0 0 rg BT 183.52 395.10 Td (. However) Tj ET Q q 0 0 0 rg BT 224.77 395.10 Td (, we may increase or decrease the funding available for the redemption of shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 383.10 Td (pursuant to the program upon ten business days) Tj ET Q q 0 0 0 rg BT 323.34 383.10 Td ( notice to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 368.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 368.10 Td (During ) Tj ET Q q 0 0 0 rg BT 161.33 368.10 Td (any ) Tj ET Q q 0 0 0 rg BT 178.27 368.10 Td (calendar ) Tj ET Q q 0 0 0 rg BT 214.63 368.10 Td (year) Tj ET Q q 0 0 0 rg BT 231.44 368.10 Td (, ) Tj ET Q q 0 0 0 rg BT 236.44 368.10 Td (we ) Tj ET Q q 0 0 0 rg BT 250.60 368.10 Td (may ) Tj ET Q q 0 0 0 rg BT 270.31 368.10 Td (redeem ) Tj ET Q q 0 0 0 rg BT 302.24 368.10 Td (no ) Tj ET Q q 0 0 0 rg BT 314.74 368.10 Td (more ) Tj ET Q q 0 0 0 rg BT 337.79 368.10 Td (than ) Tj ET Q q 0 0 0 rg BT 357.50 368.10 Td (5% ) Tj ET Q q 0 0 0 rg BT 373.33 368.10 Td (of ) Tj ET Q q 0 0 0 rg BT 384.16 368.10 Td (the ) Tj ET Q q 0 0 0 rg BT 398.88 368.10 Td (weighted) Tj ET Q /GS0 gs q 5.00 0 0 10.09 435.53 365.94 cm /I25 Do Q q 0 0 0 rg BT 440.53 368.10 Td (average ) Tj ET Q q 0 0 0 rg BT 474.12 368.10 Td (number ) Tj ET Q q 0 0 0 rg BT 507.17 368.10 Td (of ) Tj ET Q q 0 0 0 rg BT 518.00 368.10 Td (shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 356.10 Td (outstanding during the prior calendar year) Tj ET Q q 0 0 0 rg BT 297.95 356.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 341.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 341.10 Td (W) Tj ET Q q 0 0 0 rg BT 139.14 341.10 Td (e have no obligation to redeem shares if the redemption would violate the restrictions on distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 329.10 Td (under Maryland law) Tj ET Q q 0 0 0 rg BT 210.93 329.10 Td (, which prohibits distributions that would cause a corporation to fail to meet statutory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 317.10 Td (tests of solvency) Tj ET Q q 0 0 0 rg BT 196.51 317.10 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 redeem shares submitted in connection with an ordinary redemption at 95.0% of our most recent estimated NA) Tj ET Q q 0 0 0 rg BT 547.77 296.10 Td (V) Tj ET Q q 0 0 0 rg BT 554.81 296.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 284.10 Td (per share as of the applicable redemption date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 266.10 Td (For purposes of determining whether a redeeming stockholder has held the share submitted for redemption for at least ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 254.10 Td (one year) Tj ET Q q 0 0 0 rg BT 123.75 254.10 Td (, the time period begins as of the date the stockholder acquired the share; provided, that shares purchased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 242.10 Td (the redeeming stockholder pursuant to the distribution reinvestment plan or received as a stock dividend will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 230.10 Td (deemed to have been acquired on the same date as the initial share to which the distribution reinvestment plan shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 218.10 Td (or stock dividend shares relate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 200.10 Td (On December 8, 2017 our board of directors approved an estimated NA) Tj ET Q q 0 0 0 rg BT 375.84 200.10 Td (V) Tj ET Q q 0 0 0 rg BT 382.88 200.10 Td ( per share of our common stock of $8.79 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 188.10 Td (based on the estimated value of our assets less the estimated value of our liabilities, or NA) Tj ET Q q 0 0 0 rg BT 450.00 188.10 Td (V) Tj ET Q q 0 0 0 rg BT 455.94 188.10 Td (, divided by the number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 176.10 Td (shares outstanding, all as of September30, 2017, with the exception of a reduction to our net asset value for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 164.10 Td (acquisition and financing costs related to a real estate acquisition subsequent to September30, 2017. For a full ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 152.10 Td (description of the methodologies used to value our assets and liabilities in connection with the calculation of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 140.10 Td (estimated NA) Tj ET Q q 0 0 0 rg BT 143.97 140.10 Td (V) Tj ET Q q 0 0 0 rg BT 151.02 140.10 Td ( per share as of September30, 2017, see the Current Report on Form 8-K filed with the SEC on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 128.10 Td (December 1) Tj ET Q q 0 0 0 rg BT 138.21 128.10 Td (1, 2017, and incorporated herein by reference. ) Tj ET Q q 0 0 0 rg BT 327.67 128.10 Td (W) Tj ET Q q 0 0 0 rg BT 336.31 128.10 Td (e expect to update the estimated NA) Tj ET Q q 0 0 0 rg BT 479.97 128.10 Td (V) Tj ET Q q 0 0 0 rg BT 487.01 128.10 Td ( annually in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 116.10 Td (December) Tj ET Q q 0 0 0 rg BT 130.53 116.10 Td (.) 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. OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.99 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 86.00 730.60 Td (Unr) Tj ET Q q 0 0 0 rg BT 103.04 730.60 Td (egister) Tj ET Q q 0 0 0 rg BT 131.18 730.60 Td (ed Sales of Equity Securities and Use of Pr) Tj ET Q q 0 0 0 rg BT 312.10 730.60 Td (oceeds \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 704.10 Td (In several respects the Company treats redemptions sought upon a stockholder) Tj ET Q q 0 0 0 rg BT 404.18 704.10 Td () Tj ET Q q 0 0 0 rg BT 406.96 704.10 Td (s death, qualifying disability or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 692.10 Td (determination of incompetence dif) Tj ET Q q 0 0 0 rg BT 227.82 692.10 Td (ferently from other redemptions:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 674.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 674.10 Td (there is no one-year holding requirement; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 656.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 656.10 Td (the redemption price will be the estimated NA) Tj ET Q q 0 0 0 rg BT 314.43 656.10 Td (V) Tj ET Q q 0 0 0 rg BT 321.47 656.10 Td ( per share as of the redemption date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 632.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 632.10 Td (e may amend, suspend or terminate the program upon 30 days) Tj ET Q q 0 0 0 rg BT 349.77 632.10 Td ( notice to our stockholders, provided that we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 620.10 Td (increase or decrease the funding available for the redemption of shares pursuant to the share redemption program ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 608.10 Td (upon 10 business days) Tj ET Q q 0 0 0 rg BT 182.31 608.10 Td ( notice. ) Tj ET Q q 0 0 0 rg BT 216.56 608.10 Td (W) Tj ET Q q 0 0 0 rg BT 225.20 608.10 Td (e may provide this notice by including such information in a Current Report on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 596.10 Td (Form 8-K or in our annual or quarterly reports, all publicly filed with the SEC, or by a separate mailing to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 584.10 Td (stockholders. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 566.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.44 566.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.04 566.10 Td (, we had a total of $4.7 million outstanding and unfulfilled redemption requests representing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 554.10 Td (559,579 shares. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.54 554.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.52 554.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.35 554.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.95 554.10 Td (, we funded redemptions under our share redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 542.10 Td (program with the net proceeds from our distribution reinvestment plan, and we redeemed shares pursuant to our share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 530.10 Td (redemption program as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 483.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 190.50 483.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 483.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 483.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 483.60 97.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 483.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 483.60 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 455.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 190.50 455.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 455.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 455.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 455.60 97.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 455.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 455.60 168.00 -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 90.5 483.6 m 190.5 483.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194.5 483.6 m 276.5 483.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 483.6 m 377.5 483.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 483.6 m 549.5 483.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 483.6 m 190.5 483.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194.5 483.6 m 276.5 483.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 483.6 m 377.5 483.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194.5 441.6 m 276.5 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194.5 428.6 m 276.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194.5 426.6 m 276.5 426.6 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 126.95 488.05 Td (Month) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 203.20 497.05 Td (T) Tj ET Q q 0 0 0 rg BT 208.38 497.05 Td (otalNumber) Tj ET Q q 0 0 0 rg BT 256.96 497.05 Td ( of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 200.95 488.05 Td (Shar) Tj ET Q q 0 0 0 rg BT 219.29 488.05 Td (es Redeemed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 291.80 497.05 Td (A) Tj ET Q q 0 0 0 rg BT 297.63 497.05 Td (verage PricePaid) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 305.00 488.05 Td (Per) Tj ET Q q 0 0 0 rg BT 318.32 488.05 Td (Shar) Tj ET Q q 0 0 0 rg BT 338.92 488.05 Td (e) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 345.16 492.13 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 395.45 505.00 Td (Appr) Tj ET Q q 0 0 0 rg BT 415.79 505.00 Td (oximateDollar) Tj ET Q q 0 0 0 rg BT 472.86 505.00 Td () Tj ET Q q 0 0 0 rg BT 474.95 505.00 Td (V) Tj ET Q q 0 0 0 rg BT 480.62 505.00 Td (alueofShar) Tj ET Q q 0 0 0 rg BT 526.97 505.00 Td (es) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 391.30 496.00 Td (A) Tj ET Q q 0 0 0 rg BT 397.13 496.00 Td (vailable) Tj ET Q q 0 0 0 rg BT 429.22 496.00 Td (ThatMay) Tj ET Q q 0 0 0 rg BT 469.39 496.00 Td (Y) Tj ET Q q 0 0 0 rg BT 474.89 496.00 Td (etBe Redeemed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 427.40 487.00 Td (Under) Tj ET Q q 0 0 0 rg BT 451.74 487.00 Td ( the Pr) Tj ET Q q 0 0 0 rg BT 477.56 487.00 Td (ogram) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 474.06 Td (January 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 248.25 474.06 Td (36,971) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 283.00 474.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.25 474.06 Td (8.35) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 461.55 478.70 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 460.06 Td (February 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 243.75 460.06 Td (240,101) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 283.00 460.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.25 460.06 Td (8.35) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 461.55 464.70 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 446.06 Td (March 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 264.00 446.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 283.00 446.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 446.06 Td () Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 461.55 450.70 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 111.00 432.06 Td (T) Tj ET Q q 0 0 0 rg BT 115.87 432.06 Td (otal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 243.75 432.06 Td (277,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 416.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 90.00 407.13 Td (\(1\)) 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 (The prices at which we redeem shares under the program are as set forth above.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 90.00 394.52 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.06 390.90 Td ( ) Tj ET Q q 0 0 0 rg BT 97.92 390.90 Td (W) Tj ET Q q 0 0 0 rg BT 104.83 390.90 Td (e limit the dollar value of shares that may be redeemed under the program as described above. One of these limitations is that during each ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 381.30 Td (calendar year) Tj ET Q q 0 0 0 rg BT 132.54 381.30 Td (, our share redemption program limits the number of shares we may redeem to those that we could purchase with the amount of the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 371.70 Td (net proceeds from the sale of shares under our distribution reinvestment plan during the prior calendar year) Tj ET Q q 0 0 0 rg BT 432.11 371.70 Td (. However) Tj ET Q q 0 0 0 rg BT 467.11 371.70 Td (, we may increase or ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 362.10 Td (decrease the funding available for the redemption of shares upon ten business days) Tj ET Q q 0 0 0 rg BT 356.88 362.10 Td ( notice to our stockholders. Based on the amount of net ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 352.50 Td (proceeds raised from the sale of shares under our distribution reinvestment plan during 2017, we had $2.3 million available of shares eligible for ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 342.90 Td (redemption in 2018. In February 2018, we exhausted all shares eligible for redemption for 2018. ) Tj ET Q q 0 0 0 rg BT 402.14 342.90 Td (As of March 31, 2018, we had a total of $4.7 ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 333.30 Td (million outstanding and unfulfilled redemption requests representing 559,579 shares. ) Tj ET Q q 0 0 0 rg BT 365.80 333.30 Td (W) Tj ET Q q 0 0 0 rg BT 372.71 333.30 Td (e recorded $0.5 million of redemptions payable in other ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 323.70 Td (liabilities on the accompanying consolidated balance sheets, which represents the amount available to be redeemed in 2019 based on net proceeds ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 314.10 Td (from the sale of shares under our distribution reinvestment plan as of March 31, 2018.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (Item 3. ) Tj ET Q q 0 0 0 rg BT 85.50 290.10 Td (Defaults upon Senior) Tj ET Q q 0 0 0 rg BT 175.33 290.10 Td ( Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 272.10 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (Item 4. ) Tj ET Q q 0 0 0 rg BT 85.50 248.10 Td (Mine Safety Disclosur) Tj ET Q q 0 0 0 rg BT 179.20 248.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 230.10 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (Item 5. ) Tj ET Q q 0 0 0 rg BT 85.50 206.10 Td (Other) Tj ET Q q 0 0 0 rg BT 110.87 206.10 Td ( Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 188.10 Td (None.) Tj ET Q endstream endobj 83 0 obj <>] /Rotate 0 /Contents 84 0 R>> endobj 84 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( 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 6. Exhibits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (40) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 697.5 m 105 697.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 109 697.5 m 325 697.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 697.5 m 561 697.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 701.23 Td (Ex.) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 107.50 701.75 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 111.50 701.23 Td (Description) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 684.07 Td (3.1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 107.50 685.45 Td () Tj ET Q BT /F1 10.00 Tf ET 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 546.109375 682.7333984375 l s q 0 0 1 rg BT 111.50 684.07 Td (Second ) Tj ET Q q 0 0 1 rg BT 142.89 684.07 Td (Articles of ) Tj ET Q q 0 0 1 rg BT 187.32 684.07 Td (Amendment and Restatement, incorporated by reference to Exhibit 3.1 to the Company) Tj ET Q q 0 0 1 rg BT 539.72 684.07 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 353.5947265625 672.7333984375 l s q 0 0 1 rg BT 111.50 674.07 Td (Registration Statement on Form S-1) Tj ET Q q 0 0 1 rg BT 255.56 674.07 Td (1 filed October 16, 2015) 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 (3.2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 107.50 656.45 Td () Tj ET Q BT /F1 10.00 Tf ET 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 508.6240234375 653.7333984375 l s q 0 0 1 rg BT 111.50 655.07 Td (Second ) Tj ET Q q 0 0 1 rg BT 142.89 655.07 Td (Amended and Restated Bylaws, incorporated by reference to Exhibit 3.2 to the Company) Tj ET Q q 0 0 1 rg BT 502.23 655.07 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 111.5 643.7333984375 m 353.5947265625 643.7333984375 l s q 0 0 1 rg BT 111.50 645.07 Td (Registration Statement on Form S-1) Tj ET Q q 0 0 1 rg BT 255.56 645.07 Td (1 filed October 16, 2015) 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 52.50 626.07 Td (3.3) 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 111.5 624.7333984375 m 522.4228515625 624.7333984375 l s q 0 0 1 rg BT 111.50 626.07 Td (Articles Supplementary for Class ) Tj ET Q q 0 0 1 rg BT 246.85 626.07 Td (T) Tj ET Q q 0 0 1 rg BT 252.77 626.07 Td ( Shares, incorporated by reference to Exhibit 3.3 to the Company) Tj ET Q q 0 0 1 rg BT 516.03 626.07 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 111.5 614.7333984375 m 341.9443359375 614.7333984375 l s q 0 0 1 rg BT 111.50 616.07 Td (Registration Statement on Form S-1) Tj ET Q q 0 0 1 rg BT 255.56 616.07 Td (1 filed ) Tj ET Q q 0 0 1 rg BT 283.34 616.07 Td (April 20, 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 52.50 597.07 Td (4.1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 107.50 598.45 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 111.5 595.7333984375 m 555.9140625 595.7333984375 l s q 0 0 1 rg BT 111.50 597.07 Td (Statement regarding restrictions in transferability of shares of common stock issued in a private of) Tj ET Q q 0 0 1 rg BT 503.99 597.07 Td (fering \(to be ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 585.7333984375 m 519.5322265625 585.7333984375 l s q 0 0 1 rg BT 111.50 587.07 Td (sent upon request and without char) Tj ET Q q 0 0 1 rg BT 251.01 587.07 Td (ge to stockholders\), incorporated by reference to Exhibit 4.1 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 111.5 575.7333984375 m 556.67578125 575.7333984375 l s q 0 0 1 rg BT 111.50 577.07 Td (Company) Tj ET Q q 0 0 1 rg BT 153.17 577.07 Td (s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, filed November 9, 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 52.50 558.07 Td (4.2) 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 111.5 556.7333984375 m 555.3671875 556.7333984375 l s q 0 0 1 rg BT 111.50 558.07 Td (Statement regarding restrictions on transferability of shares of common stock issued in a public of) Tj ET Q q 0 0 1 rg BT 503.44 558.07 Td (fering \(to be ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 546.7333984375 m 519.5322265625 546.7333984375 l s q 0 0 1 rg BT 111.50 548.07 Td (sent upon request and without char) Tj ET Q q 0 0 1 rg BT 251.01 548.07 Td (ge to stockholders\), incorporated by reference to Exhibit 4.2 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 111.5 536.7333984375 m 556.67578125 536.7333984375 l s q 0 0 1 rg BT 111.50 538.07 Td (Company) Tj ET Q q 0 0 1 rg BT 153.17 538.07 Td (s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, filed November 9, 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 52.50 519.07 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 111.5 517.7333984375 m 557.2275390625 517.7333984375 l s q 0 0 1 rg BT 111.50 519.07 Td (Third ) Tj ET Q q 0 0 1 rg BT 135.67 519.07 Td (Amended and Restated Distribution Reinvestment Plan, dated ) Tj ET Q q 0 0 1 rg BT 385.62 519.07 Td (August 9, 2017, incorporated by reference ) 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 111.5 507.7333984375 m 539.751953125 507.7333984375 l s q 0 0 1 rg BT 111.50 509.07 Td (to Exhibit 4.3 to the Company) Tj ET Q q 0 0 1 rg BT 235.38 509.07 Td (s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, filed ) 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 111.5 497.7333984375 m 177.8916015625 497.7333984375 l s q 0 0 1 rg BT 111.50 499.07 Td (August 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 52.50 480.07 Td (4.4) 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 111.5 478.7333984375 m 552.515625 478.7333984375 l s q 0 0 1 rg BT 111.50 480.07 Td (Multiple Class Plan, ef) Tj ET Q q 0 0 1 rg BT 202.98 480.07 Td (fective as of ) Tj ET Q q 0 0 1 rg BT 253.79 480.07 Td (April 1) Tj ET Q q 0 0 1 rg BT 282.03 480.07 Td (1, 2016, incorporated by reference to Exhibit 4.4 to the Company) Tj ET Q q 0 0 1 rg BT 546.12 480.07 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 111.5 468.7333984375 m 341.9443359375 468.7333984375 l s q 0 0 1 rg BT 111.50 470.07 Td (Registration Statement on Form S-1) Tj ET Q q 0 0 1 rg BT 255.56 470.07 Td (1 filed ) Tj ET Q q 0 0 1 rg BT 283.34 470.07 Td (April 20, 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 52.50 451.07 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 111.5 449.7333984375 m 519.6396484375 449.7333984375 l s q 0 0 1 rg BT 111.50 451.07 Td (Loan ) Tj ET Q q 0 0 1 rg BT 134.00 451.07 Td (Agreement, by and between KBSGI 421 SW) Tj ET Q q 0 0 1 rg BT 313.50 451.07 Td ( 6th ) Tj ET Q q 0 0 1 rg BT 330.72 451.07 Td (A) Tj ET Q q 0 0 1 rg BT 337.20 451.07 Td (venue, LLC and Metropolitan Life Insurance ) 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 546.0263671875 439.7333984375 l s q 0 0 1 rg BT 111.50 441.07 Td (Company) Tj ET Q q 0 0 1 rg BT 149.74 441.07 Td (, dated as of January 18, 2018, incorporated by reference to Exhibit 10.7 to the Company) Tj ET Q q 0 0 1 rg BT 508.25 441.07 Td (s ) Tj ET Q q 0 0 1 rg BT 514.09 441.07 Td (Annual ) 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 443.9072265625 429.7333984375 l s q 0 0 1 rg BT 111.50 431.07 Td (Report on Form 10-K for the year ended December 31, 2017, filed March 12, 2018) Tj ET Q BT /F1 10.00 Tf ET 0 Tr 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