%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 209.40 562.25 Td (For) Tj ET Q q 0 0 0 rg BT 224.77 562.25 Td ( the quarterly period ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.48 562.25 Td (June 30, 2018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.54 562.25 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 Section 13 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 12 months \(or for such shorter period that the registrant was required to file such reports\), 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 90 days. ) Tj ET Q q 0 0 0 rg BT 165.62 268.05 Td (Y) Tj ET Q q 0 0 0 rg BT 170.59 268.05 Td (es ) Tj ET Q /GS0 gs q 8.48 0 0 8.27 181.26 266.32 cm /I3 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 189.74 268.05 Td ( No ) Tj ET Q /GS0 gs q 7.13 0 0 8.27 211.52 266.32 cm /I4 Do Q /GS0 gs q 8.00 0 0 8.27 218.64 266.32 cm /I5 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 73.50 249.45 Td (Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any) Tj ET Q q 0 0 0 rg BT 448.41 249.45 Td (, every Interactive Data File ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 239.85 Td (required to be submitted and posted pursuant to Rule 405 of Regulation S-T) Tj ET Q q 0 0 0 rg BT 292.43 239.85 Td ( \(§232.405 of this chapter\) during the preceding 12 months \(or for such shorter ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 230.25 Td (period that the registrant was required to submit and post such files\). ) Tj ET Q q 0 0 0 rg BT 276.71 230.25 Td (Y) Tj ET Q q 0 0 0 rg BT 281.68 230.25 Td (es ) Tj ET Q /GS0 gs q 8.48 0 0 8.27 292.35 228.52 cm /I6 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 300.83 230.25 Td ( No ) Tj ET Q /GS0 gs q 7.13 0 0 8.27 320.61 228.52 cm /I7 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 73.50 211.65 Td (Indicate by check mark whether the registrant is a lar) Tj ET Q q 0 0 0 rg BT 243.28 211.65 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 303.80 211.65 Td (, an accelerated filer) Tj ET Q q 0 0 0 rg BT 368.32 211.65 Td (, a non-accelerated filer) Tj ET Q q 0 0 0 rg BT 443.50 211.65 Td (, a smaller reporting company or an ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 202.05 Td (emer) Tj ET Q q 0 0 0 rg BT 65.34 202.05 Td (ging growth company) Tj ET Q q 0 0 0 rg BT 135.04 202.05 Td (. 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 (Rule 12b-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 (Accelerated Filer) 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 (Accelerated Filer) 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 (Smaller reporting company) 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 68.61 71.05 Td (August 3, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 117.73 71.05 Td (, there were ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 157.26 71.05 Td (9,274,484) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 189.26 71.05 Td ( outstanding shares of Class ) Tj ET Q q 0 0 0 rg BT 280.14 71.05 Td (A) Tj ET Q q 0 0 0 rg BT 285.48 71.05 Td ( common stock and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 349.91 71.05 Td (290,216) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.91 71.05 Td ( outstanding shares of Class ) Tj ET Q q 0 0 0 rg BT 467.09 71.05 Td (T) Tj ET Q q 0 0 0 rg BT 471.83 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.) Tj ET Q endstream endobj 5 0 obj <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>] /Rotate 0 /Contents 6 0 R>> endobj 6 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.55 740.25 Td (INDEX ) Tj ET Q q 0 0 0 rg BT 252.10 740.25 Td (T) Tj ET Q q 0 0 0 rg BT 258.59 740.25 Td (O FINANCIAL) Tj ET Q q 0 0 0 rg BT 324.98 740.25 Td ( ST) Tj ET Q q 0 0 0 rg BT 338.97 740.25 Td (A) Tj ET Q q 0 0 0 rg BT 345.45 740.25 Td (TEMENTS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.30 718.25 Td (KBS GROWTH & INCOME REIT) Tj ET Q q 0 0 0 rg BT 368.80 718.25 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.90 700.25 Td (FORM 10-Q) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.95 682.25 Td (June 30, 2018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 335.01 682.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 289.85 664.25 Td (INDEX) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 647.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 627.52 Td (P) Tj ET Q q 0 0 0 rg BT 57.60 627.52 Td (AR) Tj ET Q q 0 0 0 rg BT 70.73 627.52 Td (T) Tj ET Q q 0 0 0 rg BT 76.45 627.52 Td ( I.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 97.5 626.1833984375 m 222.4072265625 626.1833984375 l s q 0 0 1 rg BT 97.50 627.52 Td (FINANCIAL) Tj ET Q q 0 0 1 rg BT 151.02 627.52 Td ( INFORMA) Tj ET Q q 0 0 1 rg BT 198.53 627.52 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 97.50 612.52 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 142.5 611.1833984375 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 485.1904296875 596.1833984375 l s q 0 0 1 rg BT 142.50 597.52 Td (Consolidated Balance Sheets as of June 30, 2018 \(unaudited\) and December 31, 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 519.1845703125 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 and Six Months Ended June ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 142.5 571.1833984375 m 216.9384765625 571.1833984375 l s q 0 0 1 rg BT 142.50 572.52 Td (30, 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 338.5888671875 546.1833984375 l s q 0 0 1 rg BT 142.50 547.52 Td (the Six Months Ended June 30, 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 517.1875 531.1833984375 l s q 0 0 1 rg BT 142.50 532.52 Td (Consolidated Statements of Cash Flows \(unaudited\) for the Six Months Ended June 30, 2018 ) 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 179.4384765625 521.1833984375 l s q 0 0 1 rg BT 142.50 522.52 Td (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 492.998046875 506.1833984375 l s q 0 0 1 rg BT 142.50 507.52 Td (Condensed Notes to Consolidated Financial Statements as of June 30, 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 (Item 1A.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 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 (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 548.5 460.28339843749995 m 558.5 460.28339843749995 l s q 0 0 1 rg BT 548.50 461.62 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 548.5 445.28339843749995 m 558.5 445.28339843749995 l s q 0 0 1 rg BT 548.50 446.62 Td (37) 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 (37) 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 (37) 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 (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 548.5 370.2833984375 m 558.5 370.2833984375 l s q 0 0 1 rg BT 548.50 371.62 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 548.5 355.2833984375 m 558.5 355.2833984375 l s q 0 0 1 rg BT 548.50 356.62 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 548.5 340.2833984375 m 558.5 340.2833984375 l s q 0 0 1 rg BT 548.50 341.62 Td (41) 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 (42) 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 397.35 639.05 Td (June 30, 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 (142,813) 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 (16,400) 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 (190,522) 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 (\(13,626) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 527.06 Td (\)) 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 (176,896) 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 (5,219) 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 (2,643) 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 (165) 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 (2,413) 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 ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.25 443.06 Td (187,336) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 443.06 Td ($) 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 ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.25 415.06 Td (1) Tj ET Q q 0 0 0 rg BT 440.75 415.06 Td (16,682) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 415.06 Td ($) 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 (2,278) 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 (2,703) 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 (410) 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 (4,652) 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 (2,559) 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 (129,284) 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 (9,194,944 and 9,149,100 shares issued and outstanding as of June 30, 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 (92) 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 (287,878 shares and 281,537 shares issued and outstanding as of June 30, 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 (78,145) 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 (\(20,188) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 169.06 Td (\)) 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 (58,052) 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 ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.25 141.06 Td (187,336) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.50 141.06 Td ($) 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 50.00 645.75 233.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 283.00 645.75 138.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 421.00 645.75 4.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 425.00 645.75 138.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 617.75 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 617.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 617.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 617.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 617.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 617.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 617.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 617.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 589.75 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 589.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 589.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 589.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 589.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 589.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 589.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 589.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 561.75 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 561.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 561.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 561.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 561.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 561.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 561.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 561.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 533.75 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 533.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 533.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 533.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 533.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 533.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 533.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 533.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 505.75 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 505.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 505.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 505.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 505.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 505.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 505.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 505.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 477.75 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 477.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 477.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 477.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 477.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 477.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 477.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 477.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 449.75 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 449.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 449.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 449.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 449.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 449.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 449.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 449.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 421.75 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 421.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 421.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 421.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 421.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 421.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 421.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 421.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 394.75 233.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 394.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 394.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 394.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 394.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 394.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 394.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 394.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 367.75 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 367.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 367.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 367.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 367.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 367.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 367.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 367.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 339.75 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 339.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 339.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 339.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 339.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 339.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 339.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 339.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 311.75 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 311.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 311.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 311.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 311.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 311.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 311.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 311.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 274.75 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 274.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 274.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 274.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 274.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 274.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 274.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 274.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 246.75 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 246.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 246.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 246.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 246.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 246.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 246.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 246.75 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 218.75 233.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 218.75 67.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 218.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 218.75 67.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 218.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 218.75 67.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 218.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 218.75 67.00 -23.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 631.75 m 350 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 631.75 m 421 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 631.75 m 492 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 631.75 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 283 631.75 m 350 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 617.75 m 350 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 631.75 m 421 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 617.75 m 421 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 631.75 m 492 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 617.75 m 492 617.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 631.75 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 496 617.75 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 283 561.75 m 350 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 561.75 m 421 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 561.75 m 492 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 561.75 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 283 547.75 m 350 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 547.75 m 421 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 547.75 m 492 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 547.75 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 283 435.75 m 350 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 435.75 m 421 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 435.75 m 492 435.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 435.75 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 283 421.75 m 350 421.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 421.75 m 421 421.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 421.75 m 492 421.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 421.75 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 283 381.75 m 350 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 381.75 m 421 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 381.75 m 492 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 381.75 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 283 381.75 m 350 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 367.75 m 350 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 381.75 m 421 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 367.75 m 421 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 381.75 m 492 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 367.75 m 492 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 381.75 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 496 367.75 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 283 354.75 m 350 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 352.75 m 350 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 354.75 m 421 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 352.75 m 421 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 354.75 m 492 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 352.75 m 492 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 354.75 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 496 352.75 m 563 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 352.75 m 350 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 354.75 m 350 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 352.75 m 421 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 354.75 m 421 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 352.75 m 492 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 354.75 m 492 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 352.75 m 563 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 354.75 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 283 312.75 m 350 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 310.75 m 350 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 312.75 m 421 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 310.75 m 421 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 312.75 m 492 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 310.75 m 492 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 312.75 m 563 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 310.75 m 563 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 298.75 m 350 298.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 296.75 m 350 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 310.75 m 421 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 312.75 m 421 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 298.75 m 421 298.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 296.75 m 421 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 298.75 m 492 298.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 296.75 m 492 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 298.75 m 563 298.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 296.75 m 563 296.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 275.75 m 350 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 273.75 m 350 273.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 275.75 m 421 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 273.75 m 421 273.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 275.75 m 492 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 273.75 m 492 273.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 275.75 m 563 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 273.75 m 563 273.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 233.75 m 350 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 231.75 m 350 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 233.75 m 421 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 231.75 m 421 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 233.75 m 492 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 231.75 m 492 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 233.75 m 563 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 231.75 m 563 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 219.75 m 350 219.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 217.75 m 350 217.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 219.75 m 421 219.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 217.75 m 421 217.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 219.75 m 492 219.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 217.75 m 492 217.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 219.75 m 563 219.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 217.75 m 563 217.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 196.75 m 350 196.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 194.75 m 350 194.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 196.75 m 421 196.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 194.75 m 421 194.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 196.75 m 492 196.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 194.75 m 492 194.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 196.75 m 563 196.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 194.75 m 563 194.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.45 635.98 Td (For) Tj ET Q q 0 0 0 rg BT 298.82 635.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 313.33 635.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 326.53 635.98 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.20 635.98 Td (For) Tj ET Q q 0 0 0 rg BT 445.57 635.98 Td ( the Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.00 621.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.00 621.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.00 621.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.00 621.98 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 285.50 594.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 326.25 594.21 Td (4,825) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.50 594.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.25 594.21 Td (3,290) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.50 594.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.25 594.21 Td (9,239) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.50 594.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 594.21 Td (6,526) 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 333.00 580.21 Td (867) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 580.21 Td (877) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.25 580.21 Td (1,995) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 580.21 Td (1,656) 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 337.50 566.21 Td (37) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.50 566.21 Td (20) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.50 566.21 Td (76) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 566.21 Td (38) 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 326.25 552.21 Td (5,729) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.25 552.21 Td (4,187) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.75 552.21 Td (1) Tj ET Q q 0 0 0 rg BT 468.25 552.21 Td (1,310) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 552.21 Td (8,220) 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 326.25 524.21 Td (1,336) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 524.21 Td (878) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.25 524.21 Td (2,205) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 524.21 Td (1,623) 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 337.50 510.21 Td (42) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.50 510.21 Td (31) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.50 510.21 Td (84) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 510.21 Td (60) 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 333.00 496.21 Td (679) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 496.21 Td (513) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.25 496.21 Td (1,430) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 496.21 Td (970) 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 333.00 482.21 Td (462) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.50 482.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.00 482.21 Td (918) 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 333.00 468.21 Td (362) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 468.21 Td (422) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.00 468.21 Td (755) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 468.21 Td (763) 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 326.25 454.21 Td (2,784) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.25 454.21 Td (1,822) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.25 454.21 Td (5,093) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 454.21 Td (3,540) 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 333.00 440.21 Td (797) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 440.21 Td (757) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.25 440.21 Td (1,768) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 440.21 Td (1,500) 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 326.25 426.21 Td (6,462) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.25 426.21 Td (4,423) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.75 426.21 Td (12,253) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 426.21 Td (8,670) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 412.21 Td (Other income \(loss\):) 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 342.00 399.01 Td (8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.50 399.01 Td (18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.50 399.01 Td (13) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 399.01 Td (35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 386.01 Td (Loss from extinguishment of debt) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.50 386.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.00 386.01 Td (\(206) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.50 386.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.50 386.01 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.00 386.01 Td (\(206) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 386.01 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 372.21 Td (T) Tj ET Q q 0 0 0 rg BT 57.68 372.21 Td (otal other income \(loss\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.00 372.21 Td (8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.00 372.21 Td (\(188) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.50 372.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.50 372.21 Td (13) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.00 372.21 Td (\(171) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 372.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 358.21 Td (Net loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.50 358.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.00 358.21 Td (\(725) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.50 358.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.50 358.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.00 358.21 Td (\(424) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.50 358.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.50 358.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.00 358.21 Td (\(930) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.50 358.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.50 358.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.00 358.21 Td (\(621) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 358.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 330.21 Td (Class ) Tj ET Q q 0 0 0 rg BT 74.00 330.21 Td (A) Tj ET Q q 0 0 0 rg BT 80.01 330.21 Td ( Common Stock:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 316.21 Td (Net loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.50 316.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.00 316.21 Td (\(703) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.50 316.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.50 316.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.00 316.21 Td (\(406) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.50 316.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.50 316.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.00 316.21 Td (\(902) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.50 316.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.50 316.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 543.00 316.21 Td (\(596) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 316.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 302.21 Td (Net loss per common share, basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.50 302.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.75 302.21 Td (\(0.08) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.50 302.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.50 302.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 302.21 Td (\(0.04) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.50 302.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.50 302.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.75 302.21 Td (\(0.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.50 302.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.50 302.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.75 302.21 Td (\(0.07) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 302.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 288.21 Td (W) Tj ET Q q 0 0 0 rg BT 60.63 288.21 Td (eighted-average number of common shares outstanding) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 279.21 Td (basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 310.50 279.21 Td (9,096,617) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.50 279.21 Td (9,076,034) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.50 279.21 Td (9,095,895) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.50 279.21 Td (9,020,742) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 251.21 Td (Class ) Tj ET Q q 0 0 0 rg BT 74.17 251.21 Td (T) Tj ET Q q 0 0 0 rg BT 79.51 251.21 Td ( Common Stock:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 237.21 Td (Net loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.50 237.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 334.50 237.21 Td (\(22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.50 237.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.50 237.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.50 237.21 Td (\(18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.50 237.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.50 237.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 476.50 237.21 Td (\(28) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.50 237.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.50 237.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.50 237.21 Td (\(25) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 237.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 223.21 Td (Net loss per common share, basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.50 223.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.75 223.21 Td (\(0.08) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.50 223.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.50 223.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.75 223.21 Td (\(0.07) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.50 223.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.50 223.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 469.75 223.21 Td (\(0.10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 488.50 223.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.50 223.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.75 223.21 Td (\(0.1) Tj ET Q q 0 0 0 rg BT 555.00 223.21 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 223.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 209.21 Td (W) Tj ET Q q 0 0 0 rg BT 60.27 209.21 Td (eighted-average number of common shares outstanding) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 200.21 Td (basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 317.25 200.21 Td (286,721) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 388.25 200.21 Td (261,613) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.25 200.21 Td (285,165) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 200.21 Td (214,044) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 178.25 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 119.05 677.25 Td (For the ) Tj ET Q q 0 0 0 rg BT 149.79 677.25 Td (Y) Tj ET Q q 0 0 0 rg BT 156.01 677.25 Td (ear Ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.76 677.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.35 677.25 Td ( and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.50 677.25 Td (Six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.84 677.25 Td ( Months Ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.45 677.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.28 677.25 Td ( \(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 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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 (\(930) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 442.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 442.00 Td (\(930) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 442.00 Td (\)) 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 (322,916) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 274.50 428.00 Td (4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.50 428.00 Td (6,341) 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 (2,891) 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 (2,895) 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 (1,300) 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 (1,300) 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 (\(2,318) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 386.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 386.00 Td (\(2,318) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 386.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 372.00 Td (Balance, June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.75 372.00 Td (9,194,944) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.50 372.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.50 372.00 Td (92) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.50 372.00 Td (287,878) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.50 372.00 Td ($) 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 ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.80 372.00 Td (78,145) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.50 372.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.80 372.00 Td (\(20,188) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 372.00 Td (\)) 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 (58,052) 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 50.00 624.75 329.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 624.75 90.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 624.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 624.75 90.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 600.75 329.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 600.75 90.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.00 600.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 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473 139.75 m 563 139.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 139.75 m 469 139.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 141.75 m 469 141.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 129.75 m 469 129.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 127.75 m 469 127.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 139.75 m 563 139.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 141.75 m 563 141.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 129.75 m 563 129.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 127.75 m 563 127.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 127.75 m 469 127.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 129.75 m 469 129.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 117.75 m 469 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 115.75 m 469 115.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 127.75 m 563 127.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 129.75 m 563 129.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 117.75 m 563 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 115.75 m 563 115.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.70 640.83 Td (Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.50 628.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.50 628.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 616.70 Td (Cash Flows from Operating ) Tj ET Q q 0 0 0 rg BT 143.38 616.70 Td (Activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 604.70 Td (Net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 604.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 604.70 Td (\(930) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 604.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 604.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 604.70 Td (\(621) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 604.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 592.70 Td (Adjustments to reconcile net loss to net cash provided by operating activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 580.70 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 580.70 Td (5,093) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 580.70 Td (3,540) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 568.70 Td (Deferred rents) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 568.70 Td (\(721) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 568.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 568.70 Td (\(315) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 568.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 556.70 Td (Allowance for doubtful accounts) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 556.70 Td (90) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 556.70 Td (\(13) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 556.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 544.70 Td (Amortization of above and below-market leases, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.10 544.70 Td (\(1,243) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 544.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 544.70 Td (\(759) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 544.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 532.70 Td (Amortization of deferred financing costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 532.70 Td (169) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 532.70 Td (253) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 520.70 Td (Unrealized gain on derivative instrument) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 520.70 Td (\(81) Tj ET Q q 0 0 0 rg BT 461.76 520.70 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 520.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 520.70 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 508.70 Td (Loss from extinguishment of debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 508.70 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 508.70 Td (206) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 496.70 Td (Changes in operating assets and liabilities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 484.70 Td (Rents and other receivables) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 484.70 Td (\(1) Tj ET Q q 0 0 0 rg BT 457.76 484.70 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 484.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 484.70 Td (\(90) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 484.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 472.70 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 472.70 Td (\(543) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 472.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 472.70 Td (62) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 460.70 Td (Accounts payable and accrued liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 460.70 Td (\(203) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 460.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 460.70 Td (\(656) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 460.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 448.70 Td (Due to af) Tj ET Q q 0 0 0 rg BT 106.19 448.70 Td (filiates) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.80 448.70 Td (916) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 448.70 Td (\(1) Tj ET Q q 0 0 0 rg BT 555.76 448.70 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 448.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 436.70 Td (Other liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.10 436.70 Td (\(283) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 436.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 436.70 Td (8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.50 424.70 Td (Net cash provided by operating activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 424.70 Td (1,422) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 424.70 Td (1,604) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 412.70 Td (Cash Flows from Investing ) Tj ET Q q 0 0 0 rg BT 141.17 412.70 Td (Activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 400.70 Td (Improvements to real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.10 400.70 Td (\(1,008) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 400.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 400.70 Td (\(310) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 400.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.50 388.70 Td (Net cash used in investing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.10 388.70 Td (\(1,008) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 388.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 388.70 Td (\(310) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 388.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 376.70 Td (Cash Flows from Financing ) Tj ET Q q 0 0 0 rg BT 143.39 376.70 Td (Activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 364.70 Td (Proceeds from notes payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 443.80 364.70 Td (45,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 364.70 Td (1,950) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 352.70 Td (Principal payments on notes payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.10 352.70 Td (\(41,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 352.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 535.10 352.70 Td (\(1) Tj ET Q q 0 0 0 rg BT 541.76 352.70 Td (1,260) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 352.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 340.70 Td (Payments of deferred financing costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 459.10 340.70 Td (\(6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 340.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 340.70 Td (\(103) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 340.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 328.70 Td (Proceeds from issuance of common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 328.70 Td (1,881) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 328.70 Td (2,522) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 316.70 Td (Payments to redeem common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.10 316.70 Td (\(2,314) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 316.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 316.70 Td (\(64) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 316.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 304.70 Td (Payments of commissions on stock sales, related dealer manager fees to af) Tj ET Q q 0 0 0 rg BT 314.58 304.70 Td (filiate and other) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 296.70 Td (of) Tj ET Q q 0 0 0 rg BT 83.09 296.70 Td (fering costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 297.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 297.00 Td (\(137) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 297.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 284.70 Td (Distributions paid to common stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.10 284.70 Td (\(1,279) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 284.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 284.70 Td (\(1,065) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 284.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 82.50 272.70 Td (Net cash provided by \(used in\) financing activities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 272.70 Td (2,282) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 272.70 Td (\(8,157) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 272.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 260.70 Td (Net increase \(decrease\) in cash and cash equivalents) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 260.70 Td (2,696) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 260.70 Td (\(6,863) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 260.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 248.70 Td (Cash and cash equivalents, beginning of period) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 248.70 Td (2,523) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 248.70 Td (15,666) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 236.70 Td (Cash and cash equivalents, end of period) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 236.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 236.70 Td (5,219) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 236.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 236.70 Td (8,803) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 224.70 Td (Supplemental Disclosure of Cash Flow Information) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 212.70 Td (Interest paid) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 212.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 212.70 Td (2,362) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 212.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 212.70 Td (1,245) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 200.70 Td (Supplemental Disclosure of Noncash Investing and Financing ) Tj ET Q q 0 0 0 rg BT 252.24 200.70 Td (Activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 188.70 Td (Stock dividends issued) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 188.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 188.70 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 188.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 188.70 Td (476) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 176.70 Td (Increase in cash distributions payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 176.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 176.70 Td (25) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 176.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 176.70 Td (5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 164.70 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 76.50 156.70 Td (distribution reinvestment plan) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 157.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 157.00 Td (1,014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 157.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 157.00 Td (1,199) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 144.70 Td (Increase in redemptions payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 144.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.80 144.70 Td (1,014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 144.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 144.70 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 132.70 Td (Increase in accrued improvements to real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 132.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 132.70 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 132.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 132.70 Td (914) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 120.70 Td (W) Tj ET Q q 0 0 0 rg BT 83.73 120.70 Td (rite-of) Tj ET Q q 0 0 0 rg BT 103.57 120.70 Td (f of deferred financing costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 120.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 120.70 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.50 120.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 120.70 Td (\(206) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 120.70 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 99.25 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 278.05 676.60 Td (June 30, 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 443.10 Td (, the Company had invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.42 443.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.08 443.10 Td ( of) Tj ET Q q 0 0 0 rg BT 303.73 443.10 Td (fice properties. ) Tj ET Q q 0 0 0 rg BT 368.52 443.10 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 October 3, 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 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (506\(c\) of Regulation D of the Securities ) Tj ET Q q 0 0 0 rg BT 211.96 131.10 Td (Act pursuant to which the Company is currently of) Tj ET Q q 0 0 0 rg BT 415.07 131.10 Td (fering a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td ($1,000,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.00 119.10 Td ( in shares of its Class ) Tj ET Q q 0 0 0 rg BT 198.67 119.10 Td (A) Tj ET Q q 0 0 0 rg BT 205.33 119.10 Td ( common stock to accredited investors \(the Second Private Of) Tj ET Q q 0 0 0 rg BT 457.02 119.10 Td (fering\). Prior to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (launch of the Second Private Of) Tj ET Q q 0 0 0 rg BT 177.34 107.10 Td (fering, on September 29, 2017, the Company entered into a dealer manager agreement \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (NCPS Dealer ) Tj ET Q q 0 0 0 rg BT 110.05 95.10 Td (Agreement\) with the ) Tj ET Q q 0 0 0 rg BT 199.18 95.10 Td (Advisor and North Capital Private Securities Corporation \(NCPS\) in connection with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.10 Td (the Second Private Of) Tj ET Q q 0 0 0 rg BT 137.35 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 278.05 676.60 Td (June 30, 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.48 573.60 Td (, the Company had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.69 573.60 Td (464,125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.19 573.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.63 573.60 Td (15,689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.13 573.60 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 ($4.5 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 543.60 Td (, the Company had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.49 543.60 Td (253,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.99 543.60 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 346.42 543.60 Td (A) Tj ET Q q 0 0 0 rg BT 353.09 543.60 Td ( common stock in the Second Private Of) Tj ET Q q 0 0 0 rg BT 514.83 543.60 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 ($2.2 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 513.60 Td (, the Company had redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.68 513.60 Td (422,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.18 513.60 Td ( Class ) Tj ET Q q 0 0 0 rg BT 330.30 513.60 Td (A) Tj ET Q q 0 0 0 rg BT 336.97 513.60 Td ( shares for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.12 513.60 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.01 513.60 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 (December 31, 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 (December 31, 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 (Article 10 of Regulation S-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 (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.86 159.60 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 147.60 Td ( are not necessarily indicative of the results that may be expected for the year ending December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.27 147.60 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.27 147.60 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 278.05 676.60 Td (June 30, 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.25 554.25 Td (. Substantially all of the Company) Tj ET Q q 0 0 0 rg BT 501.17 554.25 Td (s revenue and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (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 357.45 542.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.89 542.25 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 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.81 380.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.79 380.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.23 380.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.90 380.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.73 380.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.56 380.25 Td (, tenant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (reimbursements for substantial services accounted for under ) Tj ET Q q 0 0 0 rg BT 291.92 368.25 Td (ASU No. 2014-09 were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.41 368.25 Td ($28,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.91 368.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.35 368.25 Td ($64,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.85 368.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 526.51 368.25 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (were included in tenant reimbursements on the 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 ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.28 221.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.95 221.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.78 221.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.61 221.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 209.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 209.25 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 ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.64 137.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.31 137.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.14 137.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.97 137.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.40 137.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.40 137.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 324.07 137.25 Td (. For the purpose of determining the weighted average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.25 Td (number of shares outstanding, stock dividends issued during the period presented are adjusted retroactively and treated as if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.25 Td (they were 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 278.05 676.60 Td (June 30, 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 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 632.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 632.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.64 632.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.47 632.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.30 632.10 Td (, the Company declared stock distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.71 632.10 Td (0.00249999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.21 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (0.00499998) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 620.10 Td ( shares per share outstanding, respectively) Tj ET Q q 0 0 0 rg BT 265.18 620.10 Td (, and issued a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.66 620.10 Td (23,160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.16 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.60 620.10 Td (45,846) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.10 620.10 Td ( shares. ) Tj ET Q q 0 0 0 rg BT 459.41 620.10 Td (The Company ceased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (issuing stock dividends to all stockholders on September 5, 2017. Stock dividends had been declared on a monthly basis and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (the amount declared per share outstanding assumed the share was issued and outstanding each date that was a record date for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (stock dividends during the periods presented. Stock dividends were issued in the same class of shares as the shares for which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (such stockholder received the stock dividend.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 554.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 554.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 554.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 554.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.64 554.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.47 554.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.30 554.10 Td (, aggregate cash distributions declared per share of Class ) Tj ET Q q 0 0 0 rg BT 514.11 554.10 Td (A) Tj ET Q q 0 0 0 rg BT 520.78 554.10 Td ( common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.04 542.10 Td ($0.12787633) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.54 542.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.98 542.10 Td ($0.24708313) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.48 542.10 Td (, assuming the share was issued and outstanding each date that was a record date for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (distributions during the period. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.92 530.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.91 530.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.35 530.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.02 530.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.84 530.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.67 530.10 Td (, aggregate cash distributions declared per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (share of Class ) Tj ET Q q 0 0 0 rg BT 107.92 518.10 Td (T) Tj ET Q q 0 0 0 rg BT 113.85 518.10 Td ( common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.38 518.10 Td ($0.12787633) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.88 518.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.32 518.10 Td ($0.24708313) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.82 518.10 Td (, assuming the share was issued and outstanding each date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (that 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 327.76 506.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.75 506.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.19 506.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.86 506.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.68 506.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.51 506.10 Td (, aggregate cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (distributions declared per share of Class ) Tj ET Q q 0 0 0 rg BT 211.68 494.10 Td (A) Tj ET Q q 0 0 0 rg BT 218.35 494.10 Td ( common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.88 494.10 Td ($0.12465726) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.38 494.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.82 494.10 Td ($0.24794466) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.32 494.10 Td (, assuming the share was issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (and outstanding each date that 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 433.84 482.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.82 482.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.26 482.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.93 482.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 470.10 Td (, aggregate cash distributions declared per share of Class ) Tj ET Q q 0 0 0 rg BT 334.51 470.10 Td (T) Tj ET Q q 0 0 0 rg BT 340.44 470.10 Td ( common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.97 470.10 Td ($0.10005293) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.47 470.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.91 470.10 Td ($0.19885548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.41 470.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (assuming the share was issued and outstanding each date that was a record date for distributions during the period. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (Distributions for the period from January 1, 2017 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.80 446.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.63 446.10 Td ( were calculated at a rate of \(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.99 446.10 Td ($0.00136986) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.49 446.10 Td ( per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (per day) Tj ET Q q 0 0 0 rg BT 78.56 434.10 Td (, less \(ii\) the applicable daily class-specific stockholder servicing fees accrued for and allocable to any class of common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (stock, divided by the number of shares of common stock of such class outstanding as of the close of business on each respective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (record date. Distributions for the period from January 1, 2018 through ) Tj ET Q q 0 0 0 rg BT 331.94 410.10 Td (April 30, 2018 and from May 1, 2018 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.86 410.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 398.10 Td ( were calculated at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.93 398.10 Td ($0.00132452) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.43 398.10 Td ( per share per day and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.94 398.10 Td ($0.00144493) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.44 398.10 Td ( per share per day) Tj ET Q q 0 0 0 rg BT 447.86 398.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 500.53 398.10 Td (. Each day ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 386.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.50 386.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.32 386.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.15 386.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.59 386.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.59 386.10 Td ( was a record date for distributions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 368.10 Td (In accordance with F) Tj ET Q q 0 0 0 rg BT 156.89 368.10 Td (ASB ) Tj ET Q q 0 0 0 rg BT 178.29 368.10 Td (ASC ) Tj ET Q q 0 0 0 rg BT 200.06 368.10 Td (T) Tj ET Q q 0 0 0 rg BT 205.47 368.10 Td (opic 260-10-45, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 271.85 368.10 Td (Earnings Per Shar) Tj ET Q q 0 0 0 rg BT 346.48 368.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.92 368.10 Td (, the Company uses the two-class method to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 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 49.50 344.10 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 49.50 332.10 Td (deduction of dividends declared during the period. ) Tj ET Q q 0 0 0 rg BT 253.70 332.10 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 49.50 320.10 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 440.29 320.10 Td (The Company does not have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (any participating securities outstanding other than Class ) Tj ET Q q 0 0 0 rg BT 275.29 308.10 Td (A) Tj ET Q q 0 0 0 rg BT 281.96 308.10 Td ( Common Stock and Class ) Tj ET Q q 0 0 0 rg BT 390.39 308.10 Td (T) Tj ET Q q 0 0 0 rg BT 396.32 308.10 Td ( Common Stock during the periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (presented.) Tj ET Q endstream endobj 23 0 obj <>] /Rotate 0 /Contents 24 0 R>> endobj 24 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 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 278.05 676.60 Td (June 30, 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 /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 131.71 632.10 Td (s calculated earnings per share for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.25 632.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.24 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.68 632.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.35 632.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.17 632.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.00 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.44 632.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.44 632.10 Td ( were as follows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (\(in thousands, except share and per share amounts\):) Tj ET Q 1 1 1 rg /GS0 gs 282.00 603.60 138.00 -14.00 re f /GS0 gs 1 1 1 rg /GS0 gs 424.00 603.60 139.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 575.60 228.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 575.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 575.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 575.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 575.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 575.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 575.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 575.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 575.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 547.60 228.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 547.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 547.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 547.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 547.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 547.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 547.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 547.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 547.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 519.60 228.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 519.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 519.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 519.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 519.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 519.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 519.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 519.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 519.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 491.60 228.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 491.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 491.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 491.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 491.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 491.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 491.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 491.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 491.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 463.60 228.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 463.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 463.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 463.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 463.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 463.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 463.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 463.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 463.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 428.60 228.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 428.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 428.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 428.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 428.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 428.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 428.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 428.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 428.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 400.60 228.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 400.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 400.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 400.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 400.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 400.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 400.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 400.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 400.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 372.60 228.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 372.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 372.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.00 372.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 372.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 372.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 372.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 372.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 372.60 67.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 589.6 m 349 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 589.6 m 420 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 589.6 m 491 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 589.6 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 282 589.6 m 349 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 575.6 m 349 575.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 589.6 m 420 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 575.6 m 420 575.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 589.6 m 491 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 575.6 m 491 575.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 589.6 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 496 575.6 m 563 575.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 575.6 m 349 575.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 575.6 m 420 575.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 575.6 m 491 575.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 575.6 m 563 575.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 533.6 m 420 533.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 533.6 m 563 533.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 533.6 m 349 533.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 520.6 m 349 520.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 518.6 m 349 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 533.6 m 420 533.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 520.6 m 420 520.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 518.6 m 420 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 533.6 m 491 533.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 520.6 m 491 520.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 518.6 m 491 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 533.6 m 563 533.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 520.6 m 563 520.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 518.6 m 563 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 477.6 m 349 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 477.6 m 420 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 477.6 m 491 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 477.6 m 563 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 477.6 m 349 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 464.6 m 349 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 462.6 m 349 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 477.6 m 420 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 464.6 m 420 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 462.6 m 420 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 477.6 m 491 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 464.6 m 491 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 462.6 m 491 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 477.6 m 563 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 464.6 m 563 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 462.6 m 563 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 450.6 m 349 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 448.6 m 349 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 462.6 m 420 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 464.6 m 420 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 450.6 m 420 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 448.6 m 420 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 450.6 m 491 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 448.6 m 491 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 462.6 m 563 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 464.6 m 563 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 450.6 m 563 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 448.6 m 563 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 448.6 m 349 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 450.6 m 349 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 429.6 m 349 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 427.6 m 349 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 448.6 m 420 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 450.6 m 420 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 429.6 m 420 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 427.6 m 420 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 448.6 m 491 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 450.6 m 491 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 429.6 m 491 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 427.6 m 491 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 448.6 m 563 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 450.6 m 563 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 429.6 m 563 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 427.6 m 563 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 386.6 m 349 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 386.6 m 420 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 386.6 m 491 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 386.6 m 563 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 386.6 m 349 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 373.6 m 349 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 371.6 m 349 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 386.6 m 420 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 373.6 m 420 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 371.6 m 420 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 386.6 m 491 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 373.6 m 491 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 371.6 m 491 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 386.6 m 563 386.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 373.6 m 563 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 371.6 m 563 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 371.6 m 349 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 373.6 m 349 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 359.6 m 349 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 357.6 m 349 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 371.6 m 420 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 373.6 m 420 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 359.6 m 420 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 357.6 m 420 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 371.6 m 491 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 373.6 m 491 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 359.6 m 491 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 357.6 m 491 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 371.6 m 563 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 373.6 m 563 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 359.6 m 563 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 357.6 m 563 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 357.6 m 349 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 359.6 m 349 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 338.6 m 349 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 336.6 m 349 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 357.6 m 420 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 359.6 m 420 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 338.6 m 420 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 336.6 m 420 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 357.6 m 491 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 359.6 m 491 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 338.6 m 491 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 336.6 m 491 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 357.6 m 563 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 359.6 m 563 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 338.6 m 563 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 336.6 m 563 336.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.45 593.83 Td (For) Tj ET Q q 0 0 0 rg BT 297.82 593.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 312.33 593.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 325.53 593.83 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.70 593.83 Td (For) Tj ET Q q 0 0 0 rg BT 445.07 593.83 Td ( the Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 307.00 579.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.00 579.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.00 579.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.00 579.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 565.85 Td (Net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 284.50 565.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.10 565.85 Td (\(725) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 345.80 565.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.50 565.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.10 565.85 Td (\(424) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.80 565.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.50 565.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.10 565.85 Td (\(930) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 565.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 565.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 565.85 Td (\(621) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 565.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 551.85 Td (Less: Class ) Tj ET Q q 0 0 0 rg BT 90.50 551.85 Td (A) Tj ET Q q 0 0 0 rg BT 95.84 551.85 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 327.80 551.85 Td (1,163) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.80 551.85 Td (1,128) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 551.85 Td (2,248) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 551.85 Td (2,226) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 537.85 Td (Less: Class ) Tj ET Q q 0 0 0 rg BT 90.65 537.85 Td (T) Tj ET Q q 0 0 0 rg BT 95.39 537.85 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.80 537.85 Td (37) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.80 537.85 Td (26) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 537.85 Td (70) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 537.85 Td (42) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 523.85 Td (Undistributed net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 284.50 523.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.10 523.85 Td (\(1,925) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 345.80 523.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.50 523.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.10 523.85 Td (\(1,578) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.80 523.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.50 523.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.10 523.85 Td (\(3,248) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 523.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 523.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 523.85 Td (\(2,889) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 523.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 509.85 Td (Class ) Tj ET Q q 0 0 0 rg BT 71.62 509.85 Td (A) Tj ET Q q 0 0 0 rg BT 76.95 509.85 Td ( Common Stock:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 495.85 Td (Undistributed net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 284.50 495.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.10 495.85 Td (\(1,866) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 345.80 495.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.50 495.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.10 495.85 Td (\(1,534) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.80 495.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.50 495.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.10 495.85 Td (\(3,150) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 495.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 495.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 495.85 Td (\(2,822) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 495.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 481.85 Td (Class ) Tj ET Q q 0 0 0 rg BT 80.62 481.85 Td (A) Tj ET Q q 0 0 0 rg BT 85.95 481.85 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 327.80 481.85 Td (1,163) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.80 481.85 Td (1,128) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 481.85 Td (2,248) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 481.85 Td (2,226) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 467.85 Td (Net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 284.50 467.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.10 467.85 Td (\(703) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 345.80 467.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.50 467.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.10 467.85 Td (\(406) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.80 467.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.50 467.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.10 467.85 Td (\(902) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 467.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 467.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 467.85 Td (\(596) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 467.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 453.85 Td (Net loss per common share, basic and diluted) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 284.50 453.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.10 453.85 Td (\(0.08) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 345.80 453.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.50 453.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.10 453.85 Td (\(0.04) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.80 453.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.50 453.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.10 453.85 Td (\(0.10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 453.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 453.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.10 453.85 Td (\(0.07) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 453.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 440.85 Td (W) Tj ET Q q 0 0 0 rg BT 68.73 440.85 Td (eighted-average number of common shares outstanding, basic) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 432.85 Td (and diluted) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.80 432.85 Td (9,096,617) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 432.85 Td (9,076,034) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.80 432.85 Td (9,095,895) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 527.80 432.85 Td (9,020,742) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 418.85 Td (Class ) Tj ET Q q 0 0 0 rg BT 71.69 418.85 Td (T) Tj ET Q q 0 0 0 rg BT 76.43 418.85 Td ( Common Stock:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 404.85 Td (Undistributed net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 284.50 404.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 335.10 404.85 Td (\(59) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 345.80 404.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.50 404.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.10 404.85 Td (\(44) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.80 404.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.50 404.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.10 404.85 Td (\(98) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 404.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 404.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 404.85 Td (\(67) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 404.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 390.85 Td (Class ) Tj ET Q q 0 0 0 rg BT 80.76 390.85 Td (T) Tj ET Q q 0 0 0 rg BT 85.51 390.85 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.80 390.85 Td (37) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.80 390.85 Td (26) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 390.85 Td (70) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 390.85 Td (42) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 376.85 Td (Net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 284.50 376.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 335.10 376.85 Td (\(22) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 345.80 376.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.50 376.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.10 376.85 Td (\(18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.80 376.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.50 376.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.10 376.85 Td (\(28) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 376.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 376.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 376.85 Td (\(25) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 376.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 362.85 Td (Net loss per common share, basic and diluted) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 284.50 362.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.10 362.85 Td (\(0.08) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 345.80 362.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.50 362.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.10 362.85 Td (\(0.07) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.80 362.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.50 362.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.10 362.85 Td (\(0.10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 362.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 362.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.10 362.85 Td (\(0.1) Tj ET Q q 0 0 0 rg BT 555.76 362.85 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 362.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 349.85 Td (W) Tj ET Q q 0 0 0 rg BT 68.41 349.85 Td (eighted-average number of common shares outstanding, basic) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 61.50 341.85 Td (and diluted) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.80 341.85 Td (286,721) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 390.80 341.85 Td (261,613) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 461.80 341.85 Td (285,165) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 341.85 Td (214,044) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (Squar) Tj ET Q q 0 0 0 rg BT 75.44 314.10 Td (e Footage, Occupancy and Other) Tj ET Q q 0 0 0 rg BT 215.53 314.10 Td ( Measur) Tj ET Q q 0 0 0 rg BT 250.61 314.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 296.10 Td ( Square footage, occupancy) Tj ET Q q 0 0 0 rg BT 180.36 296.10 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 49.50 284.10 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 49.50 272.10 Td (condensed notes to consolidated financial statements are presented on an unaudited basis and outside the scope of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 260.10 Td (s independent registered public accounting firm) Tj ET Q q 0 0 0 rg BT 284.71 260.10 Td (s review of the Company) Tj ET Q q 0 0 0 rg BT 388.03 260.10 Td (s financial statements in accordance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (the standards of the United States Public Company ) Tj ET Q q 0 0 0 rg BT 255.03 248.10 Td (Accounting Oversight Board.) 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 278.05 676.60 Td (June 30, 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 (Recently Issued ) Tj ET Q q 0 0 0 rg BT 118.39 632.25 Td (Accounting Standards Update) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 614.25 Td (In February 2016, the F) Tj ET Q q 0 0 0 rg BT 167.46 614.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 216.37 614.25 Td (ASU No. 2016-02, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 294.42 614.25 Td (Leases \(T) Tj ET Q q 0 0 0 rg BT 332.12 614.25 Td (opic 842\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.17 614.25 Td ( \(ASU No. 2016-02\). ) Tj ET Q q 0 0 0 rg BT 468.58 614.25 Td (The amendments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 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 49.50 590.25 Td (leases on their balance sheets and making tar) Tj ET Q q 0 0 0 rg BT 228.97 590.25 Td (geted changes to lessor accounting. ) Tj ET Q q 0 0 0 rg BT 374.76 590.25 Td (ASU No. 2016-02 is ef) Tj ET Q q 0 0 0 rg BT 467.08 590.25 Td (fective for annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of ) Tj ET Q q 0 0 0 rg BT 508.27 578.25 Td (ASU No. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (2016-02 as of its issuance is permitted. ) Tj ET Q q 0 0 0 rg BT 209.75 566.25 Td (ASU No. 2016-02 requires a modified retrospective transition approach for all leases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (existing at, or entered into after) Tj ET Q q 0 0 0 rg BT 174.61 554.25 Td (, the date of initial application, with an option to use certain transition relief. ) Tj ET Q q 0 0 0 rg BT 484.34 554.25 Td (The Company is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (currently evaluating the impact of adopting the new lease accounting standard on its consolidated financial statements. Upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (adoption of ) Tj ET Q q 0 0 0 rg BT 97.27 530.25 Td (ASU No. 2016-02, the Company expects to adopt the package of practical expedients for all leases that commenced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (before the ef) Tj ET Q q 0 0 0 rg BT 99.84 518.25 Td (fective date of January 1, 2019. ) Tj ET Q q 0 0 0 rg BT 230.08 518.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 279.41 518.25 Td (, the Company will 1\) not reassess whether any expired or existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (contracts are or contain leases, 2\) not reassess the lease classification for any expired or existing lease, and 3\) not reassess initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (direct costs for any existing leases. ) Tj ET Q q 0 0 0 rg BT 193.72 494.25 Td (The Company does not expect to elect the practical expedient related to using hindsight to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (reevaluate the lease term. In addition, the Company expects to adopt the practical expedient for land easements to not assess ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (whether existing or expired land easements that were not previously accounted for as leases under the current lease accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (standards of ) Tj ET Q q 0 0 0 rg BT 100.42 458.25 Td (T) Tj ET Q q 0 0 0 rg BT 105.83 458.25 Td (opic 840 are or contain a lease under ) Tj ET Q q 0 0 0 rg BT 255.03 458.25 Td (T) Tj ET Q q 0 0 0 rg BT 260.44 458.25 Td (opic 842.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 440.25 Td (In July 2018, the F) Tj ET Q q 0 0 0 rg BT 148.04 440.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 196.94 440.25 Td (ASU No. 2018-1) Tj ET Q q 0 0 0 rg BT 264.62 440.25 Td (1, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 274.62 440.25 Td (Leases \(T) Tj ET Q q 0 0 0 rg BT 312.32 440.25 Td (opic 842\), T) Tj ET Q q 0 0 0 rg BT 360.01 440.25 Td (ar) Tj ET Q q 0 0 0 rg BT 368.53 440.25 Td (geted Impr) Tj ET Q q 0 0 0 rg BT 411.76 440.25 Td (ovements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.96 440.25 Td ( \(ASU No. 2018-1) Tj ET Q q 0 0 0 rg BT 526.92 440.25 Td (1\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (which provides lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (associated lease component and, instead to account for those components as a single component if the nonlease components ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (otherwise would be accounted for under the new revenue recognition standard \(T) Tj ET Q q 0 0 0 rg BT 373.96 404.25 Td (opic 606\) and if certain conditions are met. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (Upon adoption of the lease accounting standard under ) Tj ET Q q 0 0 0 rg BT 267.59 392.25 Td (T) Tj ET Q q 0 0 0 rg BT 273.00 392.25 Td (opic 842, the Company expects to adopt this practical expedient, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (specifically related to its tenant reimbursements which would otherwise be accounted for under the new revenue recognition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (standard. ) Tj ET Q q 0 0 0 rg BT 88.20 368.25 Td (The Company believes the two conditions have been met for tenant reimbursements as 1\) the timing and pattern of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (transfer of the nonlease components and associated lease components are the same and 2\) the lease component would be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.25 Td (classified as an operating lease. In addition. ) Tj ET Q q 0 0 0 rg BT 228.33 344.25 Td (ASU No. 2018-1) Tj ET Q q 0 0 0 rg BT 296.02 344.25 Td (1, provides an additional optional transition method to allow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (entities to apply the new lease accounting standard at the adoption date and recognize a cumulative-ef) Tj ET Q q 0 0 0 rg BT 456.66 332.25 Td (fect adjustment to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (opening balance of retained earnings. ) Tj ET Q q 0 0 0 rg BT 203.61 320.25 Td (An entity) Tj ET Q q 0 0 0 rg BT 243.88 320.25 Td (s reporting for the comparative periods presented in the financial statements in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (which it adopts the new lease accounting standard will continue to be reported under the current lease accounting standards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 296.25 Td (opic 840. ) Tj ET Q q 0 0 0 rg BT 96.95 296.25 Td (The Company expects to adopt this transition method upon adoption of the lease accounting standard of ) Tj ET Q q 0 0 0 rg BT 515.00 296.25 Td (T) Tj ET Q q 0 0 0 rg BT 520.41 296.25 Td (opic 842 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (on January 1, 2019.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 266.25 Td (In June 2016, the F) Tj ET Q q 0 0 0 rg BT 149.70 266.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 198.60 266.25 Td (ASU No. 2016-13, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 276.65 266.25 Td (Financial Instruments - Cr) Tj ET Q q 0 0 0 rg BT 383.78 266.25 Td (edit Losses \(T) Tj ET Q q 0 0 0 rg BT 438.42 266.25 Td (opic 326\): Measur) Tj ET Q q 0 0 0 rg BT 512.48 266.25 Td (ement of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 254.25 Td (Cr) Tj ET Q q 0 0 0 rg BT 59.69 254.25 Td (edit Losses of Financial Instruments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.74 254.25 Td (\(ASU No. 2016-13\). ) Tj ET Q q 0 0 0 rg BT 303.28 254.25 Td (ASU No. 2016-13 af) Tj ET Q q 0 0 0 rg BT 386.43 254.25 Td (fects entities holding financial assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.25 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 391.15 242.25 Td (The amendments in ) Tj ET Q q 0 0 0 rg BT 471.96 242.25 Td (ASU No. 2016-13 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.25 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 49.50 218.25 Td (expected to be collected. ) Tj ET Q q 0 0 0 rg BT 153.16 218.25 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 49.50 206.25 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 522.93 206.25 Td (ASU No. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (2016-13 also amends the impairment model for available-for) Tj ET Q q 0 0 0 rg BT 292.83 194.25 Td (-sale securities. ) Tj ET Q q 0 0 0 rg BT 358.92 194.25 Td (An entity will recognize an allowance for credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.25 Td (losses on available-for) Tj ET Q q 0 0 0 rg BT 139.27 182.25 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 49.50 170.25 Td (amortized cost basis of the investment, as is currently required. ) Tj ET Q q 0 0 0 rg BT 306.38 170.25 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 49.50 158.25 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 49.50 146.25 Td (credit losses, including changes in the factors that influenced management) Tj ET Q q 0 0 0 rg BT 349.40 146.25 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 49.50 134.25 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 49.50 122.25 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 49.50 110.25 Td (asset) Tj ET Q q 0 0 0 rg BT 71.72 110.25 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 98.25 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 98.25 Td (ASU No. 2016-13 is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 86.25 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 74.25 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 62.25 Td (The Company is still evaluating the impact of adopting ) Tj ET Q q 0 0 0 rg BT 271.96 62.25 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 50.25 Td (adoption of ) Tj ET Q q 0 0 0 rg BT 97.27 50.25 Td (ASU No. 2016-13 to have a material impact on its financial statements.) 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 278.05 676.60 Td (June 30, 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 /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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 614.25 Td (, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.54 614.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.20 614.25 Td ( of) Tj ET Q q 0 0 0 rg BT 269.85 614.25 Td (fice properties containing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.53 614.25 Td (683,952) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.03 614.25 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.38 590.25 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 ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 391.35 536.90 Td (20,829) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 421.50 536.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.60 536.90 Td (\(1,933) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 486.00 536.90 Td (\)) 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 (18,896) 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 (76,718) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.60 522.90 Td (\(6,378) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 486.00 522.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.35 522.90 Td (70,340) 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 (47,242) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.60 508.90 Td (\(3,930) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 486.00 508.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.35 508.90 Td (43,312) 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 (45,733) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.60 494.90 Td (\(1,385) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 486.00 494.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.35 494.90 Td (44,348) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 352.50 480.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 387.60 480.90 Td (190,522) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 421.50 480.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 462.85 480.90 Td (\(13,626) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 486.00 480.90 Td (\)) 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 (176,896) 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 453.25 Td (, the following properties represented more than 10% of the Company) Tj ET Q q 0 0 0 rg BT 436.75 453.25 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 ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 291.80 396.00 Td (18,896) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 396.00 Td (10.1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 396.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 396.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 396.00 Td (2,249) 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 (22.90) 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 (70,340) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 382.00 Td (37.5) 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 (5,727) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.80 382.00 Td (26.79) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 382.00 Td (95.4) 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 (43,312) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 368.00 Td (23.1) 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 (44,348) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 354.00 Td (23.7) 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 (3,385) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.80 354.00 Td (23.37) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 354.00 Td (93.2) 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 (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.97 325.65 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 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 278.05 676.60 Td (June 30, 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 (Operating Leases) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (The Company) Tj ET Q q 0 0 0 rg BT 131.71 614.25 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 49.50 602.25 Td (vary) Tj ET Q q 0 0 0 rg BT 66.62 602.25 Td (. ) Tj ET Q q 0 0 0 rg BT 73.57 602.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.01 602.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.84 602.25 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 436.56 602.25 Td (8.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.06 602.25 Td ( years with a weighted-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (average remaining term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.78 590.25 Td (4.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.28 590.25 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 49.50 578.25 Td (termination for all or a part of the leased premises after paying a specified penalty) Tj ET Q q 0 0 0 rg BT 376.50 578.25 Td (, and other terms and conditions as negotiated. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 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 49.50 554.25 Td (Generally) Tj ET Q q 0 0 0 rg BT 88.27 554.25 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 49.50 542.25 Td (and/or a letter of credit. ) Tj ET Q q 0 0 0 rg BT 148.44 542.25 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 49.50 530.25 Td (the creditworthiness of the tenant, but generally is not a significant amount. ) Tj ET Q q 0 0 0 rg BT 356.18 530.25 Td (Therefore, exposure to credit risk exists to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 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 49.50 506.25 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 472.96 506.25 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.85 506.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.29 506.25 Td ($1.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 494.25 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.55 494.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.38 494.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.82 494.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.40 494.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 309.07 494.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 476.25 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 476.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.22 476.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.04 476.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.87 476.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.31 476.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.31 476.25 Td (, the Company recognized deferred rent from tenants, net of lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.25 Td (incentive amortization, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.02 464.25 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.91 464.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.35 464.25 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.24 464.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 324.90 464.25 Td (. ) Tj ET Q q 0 0 0 rg BT 331.85 464.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.29 464.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.12 464.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.56 464.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.14 464.25 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.25 Td (cumulative deferred rent balance was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.37 452.25 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.26 452.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.70 452.25 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.59 452.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 371.25 452.25 Td (, and is included in rents and other receivables ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.25 Td (on the accompanying balance sheets. ) Tj ET Q q 0 0 0 rg BT 199.82 440.25 Td (The cumulative deferred rent balance included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.61 440.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.50 440.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.94 440.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.83 440.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (unamortized lease incentives as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.17 428.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.00 428.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.44 428.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.02 428.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 395.68 428.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 410.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 410.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 410.25 Td (, the future minimum rental income from the Company) Tj ET Q q 0 0 0 rg BT 375.28 410.25 Td (s properties under its non-cancelable operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (leases was as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 387.75 361.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 387.75 152.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 359.75 361.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 359.75 152.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 331.75 361.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 331.75 152.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 303.75 361.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 303.75 152.00 -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 411 303.75 m 563 303.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 303.75 m 563 303.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 290.75 m 563 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 288.75 m 563 288.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 379.70 Td (July 1, 2018 through December 31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.50 378.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 378.00 Td (7,375) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 365.70 Td (2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 364.00 Td (14,314) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 351.70 Td (2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 350.00 Td (14,308) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 337.70 Td (2021) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 336.00 Td (12,902) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 323.70 Td (2022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 322.00 Td (1) Tj ET Q q 0 0 0 rg BT 541.80 322.00 Td (1,131) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 309.70 Td (Thereafter) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 308.00 Td (16,483) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.50 294.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 294.00 Td (76,513) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 266.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 266.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 266.25 Td (, the Company had a concentration of credit risk related to ) Tj ET Q q 0 0 0 rg BT 387.20 266.25 Td (AECOM, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.31 266.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.75 266.25 Td ( of the tenants in ) Tj ET Q q 0 0 0 rg BT 511.72 266.25 Td (The Of) Tj ET Q q 0 0 0 rg BT 540.13 266.25 Td (fices ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.25 Td (at Greenhouse in the engineering industry) Tj ET Q q 0 0 0 rg BT 216.30 254.25 Td (, which represented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.82 254.25 Td (19%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.15 254.25 Td ( of the Company) Tj ET Q q 0 0 0 rg BT 384.87 254.25 Td (s annualized base rent. ) Tj ET Q q 0 0 0 rg BT 480.20 254.25 Td (The tenant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.25 Td (individually occupied ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.92 242.25 Td (140,922) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.42 242.25 Td ( rentable square feet or approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.80 242.25 Td (21%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.13 242.25 Td ( of the total rentable square feet of the Company) Tj ET Q q 0 0 0 rg BT 540.45 242.25 Td (s real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.25 Td (estate portfolio. Of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.03 230.25 Td (140,922) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.53 230.25 Td ( rentable square feet, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.31 230.25 Td (5,195) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.81 230.25 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 492.42 230.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.42 230.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.92 230.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.91 230.25 Td (-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.25 Td (extension options, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.71 218.25 Td (135,727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.21 218.25 Td ( rentable square feet expires on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.38 218.25 Td (December 31, 2024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.96 218.25 Td (, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.24 218.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.24 218.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.74 218.25 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.28 218.25 Td (-year extension options. ) Tj ET Q q 0 0 0 rg BT 538.54 218.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 206.25 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 345.53 206.25 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.42 206.25 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.75 206.25 Td ($21.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.25 206.25 Td ( per square foot. No other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (tenant represented more than 10% of the Company) Tj ET Q q 0 0 0 rg BT 255.82 194.25 Td (s annualized base rent. ) 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 278.05 676.60 Td (June 30, 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 (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 632.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 632.10 Td (, the Company) Tj ET Q q 0 0 0 rg BT 213.66 632.10 Td (s real estate properties were leased to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.23 632.10 Td (80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.23 632.10 Td ( tenants over a diverse range of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (industries. ) Tj ET Q q 0 0 0 rg BT 95.71 620.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 155.42 620.10 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 50.00 588.60 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 588.60 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.00 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.00 588.60 103.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 588.60 103.00 -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 50 588.6 m 283 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 588.6 m 348 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 588.6 m 455 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 588.6 m 562 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 588.6 m 283 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 588.6 m 348 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 588.6 m 455 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 588.6 m 562 588.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 592.83 Td (Industry) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 298.50 600.83 Td (Number) Tj ET Q q 0 0 0 rg BT 326.87 600.83 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 303.55 592.83 Td (T) Tj ET Q q 0 0 0 rg BT 308.52 592.83 Td (enants) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.15 600.83 Td (Annualized Base Rent ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 438.71 604.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.65 592.83 Td (\(in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.50 600.83 Td (Per) Tj ET Q q 0 0 0 rg BT 478.34 600.83 Td (centage of ) Tj ET Q q 0 0 0 rg BT 514.33 600.83 Td (Annualized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.75 592.83 Td (Base Rent) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 578.85 Td (Professional, scientific and technical) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.00 578.85 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.50 578.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 578.85 Td (5,910) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 578.85 Td (38.0) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 578.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 564.85 Td (Information technology) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 315.00 564.85 Td (9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 564.85 Td (1,849) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 564.85 Td (1) Tj ET Q q 0 0 0 rg BT 544.80 564.85 Td (1.9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 564.85 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 549.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 540.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 536.50 Td ( ) Tj ET Q q 0 0 0 rg BT 57.12 536.50 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 314.56 536.50 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.23 536.50 Td (, adjusted to straight-line any contractual tenant concessions ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 526.90 Td (\(including free rent\), rent increases and rent decreases from the lease) Tj ET Q q 0 0 0 rg BT 271.84 526.90 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 72.00 502.90 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 502.90 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 502.90 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 49.50 490.90 Td (credit issues have been identified at this time. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 466.90 Td (4. ) Tj ET Q q 0 0 0 rg BT 72.00 466.90 Td (TENANT) Tj ET Q q 0 0 0 rg BT 113.49 466.90 Td ( ORIGINA) Tj ET Q q 0 0 0 rg BT 160.26 466.90 Td (TION ) Tj ET Q q 0 0 0 rg BT 187.77 466.90 Td (AND ) Tj ET Q q 0 0 0 rg BT 211.38 466.90 Td (ABSORPTION COSTS, ) Tj ET Q q 0 0 0 rg BT 317.24 466.90 Td (ABOVE-MARKET) Tj ET Q q 0 0 0 rg BT 400.96 466.90 Td ( LEASE ) Tj ET Q q 0 0 0 rg BT 438.20 466.90 Td (ASSETS ) Tj ET Q q 0 0 0 rg BT 477.39 466.90 Td (AND BELOW) Tj ET Q q 0 0 0 rg BT 538.97 466.90 Td (-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 454.90 Td (MARKET) Tj ET Q q 0 0 0 rg BT 116.82 454.90 Td ( LEASE LIABILITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 436.90 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 436.90 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 436.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.71 436.90 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.30 436.90 Td (, the Company) Tj ET Q q 0 0 0 rg BT 311.68 436.90 Td (s tenant origination and absorption costs, above-market lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 424.90 Td (assets and below-market lease liabilities \(excluding fully amortized assets and liabilities and accumulated amortization\) were as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 412.90 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 361.40 97.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 147.00 361.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.00 361.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.00 361.40 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 361.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 361.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 361.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.00 361.40 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 361.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 361.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 361.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 361.40 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 333.40 97.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 147.00 333.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.00 333.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.00 333.40 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 333.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 333.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 333.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.00 333.40 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 333.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 333.40 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 333.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 333.40 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 147 375.4 m 207 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207 375.4 m 211 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 375.4 m 283 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 375.4 m 347 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 375.4 m 351 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 375.4 m 423 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 375.4 m 487 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 375.4 m 491 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 375.4 m 563 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147 375.4 m 207 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147 361.4 m 207 361.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 375.4 m 283 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 361.4 m 283 361.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 375.4 m 347 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 361.4 m 347 361.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 375.4 m 351 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 375.4 m 423 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 361.4 m 423 361.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 375.4 m 487 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 361.4 m 487 361.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 375.4 m 563 375.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 361.4 m 563 361.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147 361.4 m 207 361.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 361.4 m 283 361.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 361.4 m 347 361.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 361.4 m 423 361.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 361.4 m 487 361.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 361.4 m 563 361.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147 333.4 m 207 333.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 333.4 m 283 333.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 333.4 m 347 333.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 333.4 m 423 333.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 333.4 m 487 333.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 333.4 m 563 333.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147 333.4 m 207 333.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147 320.4 m 207 320.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147 318.4 m 207 318.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 333.4 m 283 333.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 320.4 m 283 320.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 318.4 m 283 318.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 333.4 m 347 333.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 320.4 m 347 320.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 318.4 m 347 318.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 333.4 m 423 333.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 320.4 m 423 320.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 318.4 m 423 318.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 333.4 m 487 333.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 320.4 m 487 320.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 318.4 m 487 318.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 333.4 m 563 333.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 320.4 m 563 320.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 318.4 m 563 318.4 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 379.65 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 174.15 387.63 Td (T) Tj ET Q q 0 0 0 rg BT 178.75 387.63 Td (enant Origination and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 184.80 379.63 Td (Absorption Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 329.35 387.63 Td (Above-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.25 379.63 Td (Lease ) Tj ET Q q 0 0 0 rg BT 354.36 379.63 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.80 387.63 Td (Below-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.60 379.63 Td (Lease Liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 153.25 365.63 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 214.25 365.63 Td (December) Tj ET Q q 0 0 0 rg BT 248.82 365.63 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.25 365.63 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.25 365.63 Td (December) Tj ET Q q 0 0 0 rg BT 388.82 365.63 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.25 365.63 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.25 365.63 Td (December) Tj ET Q q 0 0 0 rg BT 528.75 365.63 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 351.65 Td (Cost) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 149.50 351.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 181.80 351.65 Td (16,400) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 213.50 351.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 351.65 Td (17,047) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.50 351.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.80 351.65 Td (213) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.50 351.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 351.65 Td (213) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.50 351.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.10 351.65 Td (\(7,226) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 351.65 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.50 351.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 351.65 Td (\(7,838) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 351.65 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 337.65 Td (Accumulated ) Tj ET Q q 0 0 0 rg BT 96.93 337.65 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.10 337.65 Td (\(4,781) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 203.80 337.65 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.10 337.65 Td (\(3,480) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 279.80 337.65 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.10 337.65 Td (\(48) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 343.80 337.65 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.10 337.65 Td (\(33) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.80 337.65 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 337.65 Td (2,574) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 337.65 Td (1,928) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 323.65 Td (Net ) Tj ET Q q 0 0 0 rg BT 65.61 323.65 Td (Amount) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 149.50 323.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 181.80 323.65 Td (1) Tj ET Q q 0 0 0 rg BT 185.80 323.65 Td (1,619) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 213.50 323.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.80 323.65 Td (13,567) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.50 323.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.80 323.65 Td (165) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.50 323.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 323.65 Td (180) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.50 323.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.10 323.65 Td (\(4,652) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 323.65 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.50 323.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 323.65 Td (\(5,910) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 323.65 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 295.90 Td (Increases \(decreases\) in net income as a result of amortization of the Company) Tj ET Q q 0 0 0 rg BT 391.16 295.90 Td (s tenant origination and absorption costs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.90 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 321.34 283.90 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.32 283.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.76 283.90 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.43 283.90 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.25 283.90 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.08 283.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.52 283.90 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.52 283.90 Td ( were as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.90 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 199.40 158.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.00 199.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 199.40 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 199.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 199.40 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 199.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 199.40 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 199.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 199.40 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 199.40 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 199.40 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 199.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 199.40 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 212 234.39999999999998 m 267 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 234.39999999999998 m 271 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 234.39999999999998 m 326 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 234.39999999999998 m 385 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 234.39999999999998 m 389 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 234.39999999999998 m 444 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 234.39999999999998 m 504 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 234.39999999999998 m 508 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 234.39999999999998 m 563 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 234.39999999999998 m 267 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 213.39999999999998 m 267 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 234.39999999999998 m 271 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 213.39999999999998 m 271 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 234.39999999999998 m 326 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 213.39999999999998 m 326 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 234.39999999999998 m 385 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 213.39999999999998 m 385 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 234.39999999999998 m 389 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 213.39999999999998 m 389 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 234.39999999999998 m 444 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 213.39999999999998 m 444 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 234.39999999999998 m 504 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 213.39999999999998 m 504 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 234.39999999999998 m 508 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 213.39999999999998 m 508 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 234.39999999999998 m 563 234.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 213.39999999999998 m 563 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 213.39999999999998 m 267 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 199.39999999999998 m 267 199.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 213.39999999999998 m 271 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 213.39999999999998 m 326 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 199.39999999999998 m 326 199.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 213.39999999999998 m 385 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 199.39999999999998 m 385 199.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 213.39999999999998 m 389 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 213.39999999999998 m 444 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 199.39999999999998 m 444 199.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 213.39999999999998 m 504 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 199.39999999999998 m 504 199.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 213.39999999999998 m 508 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 213.39999999999998 m 563 213.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 199.39999999999998 m 563 199.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 199.39999999999998 m 267 199.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 199.39999999999998 m 326 199.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 199.39999999999998 m 385 199.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 199.39999999999998 m 444 199.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 199.39999999999998 m 504 199.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 199.39999999999998 m 563 199.39999999999998 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 228.15 246.63 Td (T) Tj ET Q q 0 0 0 rg BT 232.75 246.63 Td (enant Origination and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 238.80 238.63 Td (Absorption Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.35 246.63 Td (Above-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.25 238.63 Td (Lease ) Tj ET Q q 0 0 0 rg BT 386.36 238.63 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.80 246.63 Td (Below-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.60 238.63 Td (Lease Liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 218.70 225.63 Td (For) Tj ET Q q 0 0 0 rg BT 231.07 225.63 Td ( the ) Tj ET Q q 0 0 0 rg BT 245.58 225.63 Td (Thr) Tj ET Q q 0 0 0 rg BT 258.78 225.63 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 254.25 217.63 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.70 225.63 Td (For) Tj ET Q q 0 0 0 rg BT 349.07 225.63 Td ( the ) Tj ET Q q 0 0 0 rg BT 363.58 225.63 Td (Thr) Tj ET Q q 0 0 0 rg BT 376.78 225.63 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.25 217.63 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.70 225.63 Td (For) Tj ET Q q 0 0 0 rg BT 467.99 225.63 Td ( the ) Tj ET Q q 0 0 0 rg BT 482.51 225.63 Td (Thr) Tj ET Q q 0 0 0 rg BT 495.70 225.63 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.25 217.63 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 231.00 203.63 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.00 203.63 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.00 203.63 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.00 203.63 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 203.63 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.00 203.63 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 189.65 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 214.50 189.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 243.10 189.65 Td (\(1,130) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.80 189.65 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 189.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.10 189.65 Td (\(703) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 322.80 189.65 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.50 189.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.10 189.65 Td (\(7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 189.65 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.50 189.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 434.10 189.65 Td (\(7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 440.80 189.65 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.50 189.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.80 189.65 Td (803) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.50 189.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 189.65 Td (423) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 107.40 158.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.00 107.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 107.40 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 107.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 107.40 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 107.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 107.40 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 107.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 107.40 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 107.40 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 107.40 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 107.40 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 107.40 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 212 142.39999999999998 m 267 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 142.39999999999998 m 271 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 142.39999999999998 m 326 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 142.39999999999998 m 385 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 142.39999999999998 m 389 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 142.39999999999998 m 444 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 142.39999999999998 m 504 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 142.39999999999998 m 508 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 142.39999999999998 m 563 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 142.39999999999998 m 267 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 121.39999999999998 m 267 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 142.39999999999998 m 271 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 121.39999999999998 m 271 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 142.39999999999998 m 326 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 121.39999999999998 m 326 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 142.39999999999998 m 385 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 121.39999999999998 m 385 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 142.39999999999998 m 389 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 121.39999999999998 m 389 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 142.39999999999998 m 444 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 121.39999999999998 m 444 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 142.39999999999998 m 504 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 121.39999999999998 m 504 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 142.39999999999998 m 508 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 121.39999999999998 m 508 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 142.39999999999998 m 563 142.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 121.39999999999998 m 563 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 121.39999999999998 m 267 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 107.39999999999998 m 267 107.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 121.39999999999998 m 271 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 121.39999999999998 m 326 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 107.39999999999998 m 326 107.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 121.39999999999998 m 385 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 107.39999999999998 m 385 107.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 121.39999999999998 m 389 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 121.39999999999998 m 444 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 107.39999999999998 m 444 107.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 121.39999999999998 m 504 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 107.39999999999998 m 504 107.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 121.39999999999998 m 508 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 121.39999999999998 m 563 121.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 107.39999999999998 m 563 107.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 107.39999999999998 m 267 107.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 107.39999999999998 m 326 107.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 107.39999999999998 m 385 107.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 107.39999999999998 m 444 107.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 107.39999999999998 m 504 107.39999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 107.39999999999998 m 563 107.39999999999998 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 228.15 154.63 Td (T) Tj ET Q q 0 0 0 rg BT 232.75 154.63 Td (enant Origination and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 238.80 146.63 Td (Absorption Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.35 154.63 Td (Above-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.25 146.63 Td (Lease ) Tj ET Q q 0 0 0 rg BT 386.36 146.63 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.80 154.63 Td (Below-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.60 146.63 Td (Lease Liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 223.45 133.63 Td (For) Tj ET Q q 0 0 0 rg BT 235.82 133.63 Td ( the Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 254.25 125.63 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.45 133.63 Td (For) Tj ET Q q 0 0 0 rg BT 353.82 133.63 Td ( the Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.25 125.63 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.45 133.63 Td (For) Tj ET Q q 0 0 0 rg BT 472.74 133.63 Td ( the Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.25 125.63 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 231.00 111.63 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.00 111.63 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.00 111.63 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.00 111.63 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 111.63 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.00 111.63 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 97.65 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 214.50 97.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 243.10 97.65 Td (\(1,948) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.80 97.65 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 97.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.10 97.65 Td (\(1,336) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 322.80 97.65 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.50 97.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.10 97.65 Td (\(15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 97.65 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.50 97.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 430.10 97.65 Td (\(15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 440.80 97.65 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.50 97.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.80 97.65 Td (1,258) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.50 97.65 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 97.65 Td (774) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 33 0 obj <>] /Rotate 0 /Contents 34 0 R>> endobj 34 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 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 278.05 676.60 Td (June 30, 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 (5. ) Tj ET Q q 0 0 0 rg BT 72.00 632.25 Td (NOTES P) Tj ET Q q 0 0 0 rg BT 113.77 632.25 Td (A) Tj ET Q q 0 0 0 rg BT 120.07 632.25 Td (Y) Tj ET Q q 0 0 0 rg BT 126.38 632.25 Td (ABLE) 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 614.25 Td (, the Company) Tj ET Q q 0 0 0 rg BT 213.66 614.25 Td (s notes payable consisted of the following \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 573.75 147.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 196.00 573.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 573.75 63.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.00 573.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 573.75 62.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 573.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 573.75 69.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 573.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 573.75 68.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 573.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 573.75 37.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 573.75 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 573.75 43.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 533.75 147.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 196.00 533.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 533.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.00 533.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 533.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 533.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 533.75 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 533.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 533.75 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 533.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 533.75 37.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 533.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 533.75 43.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 505.75 147.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 196.00 505.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 505.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.00 505.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 505.75 62.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 505.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 505.75 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.00 505.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 505.75 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 505.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 505.75 37.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 505.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.00 505.75 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 200 573.75 m 263 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 573.75 m 329 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 573.75 m 402 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 573.75 m 474 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 573.75 m 515 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519 573.75 m 562 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 533.75 m 263 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 533.75 m 329 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 505.75 m 263 505.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 505.75 m 329 505.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 492.75 m 263 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 490.75 m 263 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 492.75 m 329 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 490.75 m 329 490.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 202.65 585.98 Td (Book ) Tj ET Q q 0 0 0 rg BT 222.36 585.98 Td (V) Tj ET Q q 0 0 0 rg BT 227.70 585.98 Td (alue as of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 207.75 577.98 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 273.45 593.98 Td (Book ) Tj ET Q q 0 0 0 rg BT 293.09 593.98 Td (V) Tj ET Q q 0 0 0 rg BT 298.13 593.98 Td (alue as) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 269.90 585.98 Td (of December) Tj ET Q q 0 0 0 rg BT 313.06 585.98 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.50 577.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.30 593.98 Td (Contractual) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.85 585.98 Td (Inter) Tj ET Q q 0 0 0 rg BT 353.03 585.98 Td (est Rate as of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.70 577.98 Td (June 30, 2018 ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 388.15 581.61 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.10 593.98 Td (Effective Inter) Tj ET Q q 0 0 0 rg BT 459.49 593.98 Td (est ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.15 585.98 Td (Rate at) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.20 577.98 Td (June 30, 2018 ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 460.65 581.61 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.85 585.98 Td (Payment ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.60 577.98 Td (T) Tj ET Q q 0 0 0 rg BT 492.34 577.98 Td (ype) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 504.34 581.61 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.40 585.98 Td (Maturity ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.95 577.98 Td (Date ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 545.94 581.61 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 558.00 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 186.15 561.63 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.50 558.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 237.80 558.00 Td (45,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 269.50 558.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.80 558.00 Td (41,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 335.75 565.70 Td (One-month LIBOR) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.40 557.70 Td (+ 1.80%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.15 558.00 Td (3.79%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.00 565.70 Td (Interest) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.00 557.70 Td (Only) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 521.75 558.00 Td (02/01/2023) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 51.50 537.90 Td (T) Tj ET Q q 0 0 0 rg BT 55.56 537.90 Td (erm Loan ) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 86.38 541.30 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 237.80 538.00 Td (72,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.80 538.00 Td (72,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 335.75 545.70 Td (One-month LIBOR) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.40 537.70 Td (+ 2.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.15 538.00 Td (3.99%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.00 545.70 Td (Interest ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.00 537.70 Td (Only) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 521.90 538.00 Td (1) Tj ET Q q 0 0 0 rg BT 525.60 538.00 Td (1/09/2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.50 524.00 Td (Notes payable principal outstanding) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.50 524.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.80 524.00 Td (1) Tj ET Q q 0 0 0 rg BT 237.80 524.00 Td (17,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 269.50 524.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.80 524.00 Td (1) Tj ET Q q 0 0 0 rg BT 303.80 524.00 Td (13,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.50 510.00 Td (Deferred financing costs, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.10 510.00 Td (\(1,1) Tj ET Q q 0 0 0 rg BT 251.76 510.00 Td (18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.80 510.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 305.10 510.00 Td (\(1,020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 510.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.50 496.00 Td (Notes payable, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.50 496.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.80 496.00 Td (1) Tj ET Q q 0 0 0 rg BT 237.80 496.00 Td (16,682) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 269.50 496.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.80 496.00 Td (1) Tj ET Q q 0 0 0 rg BT 303.80 496.00 Td (12,780) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 480.25 Td (_____________________) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 471.05 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 467.65 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 57.06 467.65 Td (Contractual interest rate represents the interest rate in ef) Tj ET Q q 0 0 0 rg BT 235.95 467.65 Td (fect under the loan as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 315.02 467.65 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.69 467.65 Td (. Ef) Tj ET Q q 0 0 0 rg BT 371.09 467.65 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 49.50 458.05 Td (in ef) Tj ET Q q 0 0 0 rg BT 63.79 458.05 Td (fect as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 95.11 458.05 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 139.77 458.05 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 381.91 458.05 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.58 458.05 Td (, where applicable.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 448.85 Td (\(2\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 445.45 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 57.06 445.45 Td (Represents the maturity date as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 167.69 445.45 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 212.36 445.45 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 49.50 436.48 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 432.85 Td ( On January 18, 2018, the Company) Tj ET Q q 0 0 0 rg BT 170.58 432.85 Td (, through an indirect wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 317.37 432.85 Td (, closed the refinancing of the initial Commonwealth Building mortgage ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 423.25 Td (loan with an unaf) Tj ET Q q 0 0 0 rg BT 105.12 423.25 Td (filiated lender \(the Refinancing\) for a maximum loan amount of up to ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.04 423.25 Td ($51.4 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.15 423.25 Td (. ) Tj ET Q q 0 0 0 rg BT 384.01 423.25 Td (W) Tj ET Q q 0 0 0 rg BT 391.24 423.25 Td (ith the proceeds from the Refinancing, the Company ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 413.65 Td (repaid ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.49 413.65 Td ($41.0 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 114.60 413.65 Td ( of principal in satisfaction of the initial Commonwealth Building mortgage loan. Under the current Commonwealth Building Mortgage ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 404.05 Td (Loan under the Refinancing, monthly payments are interest-only with the remaining principal balance, all accrued and unpaid interest and all other sums due ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 394.45 Td (under the loan documents payable at maturity) Tj ET Q q 0 0 0 rg BT 195.16 394.45 Td (. If the LIBOR rate is equal to or greater than ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.77 394.45 Td (2.90%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.43 394.45 Td ( for five consecutive business days, the Company has ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 535.29 394.45 Td (30) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.29 394.45 Td ( days ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 384.85 Td (to enter into an interest rate cap agreement with a LIBOR strike rate of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 277.86 384.85 Td (3.90%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.52 384.85 Td ( or less. ) Tj ET Q q 0 0 0 rg BT 325.04 384.85 Td (The Company has the right to prepay all or a portion of the loan under the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 375.25 Td (Refinancing commencing on February 1, 2019, subject to certain fees and conditions contained in the loan documents. ) Tj ET Q q 0 0 0 rg BT 430.29 375.25 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.84 375.25 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.51 375.25 Td (, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.51 375.25 Td ($45.0 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.62 375.25 Td ( of the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 365.65 Td (Commonwealth Building Mortgage Loan was outstanding and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.47 365.65 Td ($6.4 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 290.59 365.65 Td ( remained available for future disbursements, subject to certain terms and conditions ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 356.05 Td (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 49.50 347.07 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 343.45 Td ( ) Tj ET Q q 0 0 0 rg BT 57.12 343.45 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.68 343.45 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 121.34 343.45 Td (, the outstanding balance under the ) Tj ET Q q 0 0 0 rg BT 234.71 343.45 Td (T) Tj ET Q q 0 0 0 rg BT 239.04 343.45 Td (erm Loan consisted of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.36 343.45 Td ($48.5 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.47 343.45 Td ( of term commitment and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 438.78 343.45 Td ($24.3 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.89 343.45 Td ( of revolving ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 333.85 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 250.76 333.85 Td (2.0%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 267.43 333.85 Td ( over one-month LIBOR. ) Tj ET Q q 0 0 0 rg BT 350.16 333.85 Td (The ) Tj ET Q q 0 0 0 rg BT 364.45 333.85 Td (T) Tj ET Q q 0 0 0 rg BT 368.78 333.85 Td (erm Loan is secured by ) Tj ET Q q 0 0 0 rg BT 445.27 333.85 Td (The Of) Tj ET Q q 0 0 0 rg BT 468.01 333.85 Td (fices at Greenhouse, ) Tj ET Q q 0 0 0 rg BT 534.95 333.85 Td (V) Tj ET Q q 0 0 0 rg BT 539.69 333.85 Td (on ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 324.25 Td (Karman ) Tj ET Q q 0 0 0 rg BT 77.12 324.25 Td (T) Tj ET Q q 0 0 0 rg BT 81.45 324.25 Td (ech Center and Institute Property) Tj ET Q q 0 0 0 rg BT 186.68 324.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 300.25 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 300.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 300.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 300.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.64 300.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.47 300.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.30 300.25 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.21 300.25 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.11 300.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.54 300.25 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.44 300.25 Td ( of interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.25 Td (expense, respectively) Tj ET Q q 0 0 0 rg BT 134.37 288.25 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.42 288.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.40 288.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.84 288.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.51 288.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.33 288.25 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.16 288.25 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.08 288.25 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.97 288.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.41 288.25 Td ($1.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 276.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 276.25 Td ( of interest expense, respectively) Tj ET Q q 0 0 0 rg BT 208.52 276.25 Td (. ) Tj ET Q q 0 0 0 rg BT 215.47 276.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.92 276.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.75 276.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.18 276.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.77 276.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.77 276.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.66 276.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.10 276.25 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.99 276.25 Td ( of interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 264.25 Td (expense were payable, respectively) Tj ET Q q 0 0 0 rg BT 189.89 264.25 Td (. Included in interest expense during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.12 264.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.11 264.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.54 264.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.21 264.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.04 264.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.87 264.25 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 252.25 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 252.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.83 252.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.72 252.25 Td ( of amortization of deferred financing costs, respectively) Tj ET Q q 0 0 0 rg BT 392.65 252.25 Td (. ) Tj ET Q q 0 0 0 rg BT 399.60 252.25 Td (Also included in interest expense during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 240.25 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 240.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.89 240.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.71 240.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.54 240.25 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.09 240.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.99 240.25 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 528.29 240.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.28 240.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 228.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.11 228.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.93 228.25 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.76 228.25 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.19 228.25 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.08 228.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.52 228.25 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.41 228.25 Td ( of amortization of deferred financing costs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 216.25 Td (. Interest expense was reduced by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.55 216.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.44 216.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.88 216.25 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.77 216.25 Td ( as a result of a change in fair value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.25 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 204.25 Td (s derivative instruments for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.08 204.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.06 204.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.50 204.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.17 204.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.00 204.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.83 204.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 438.49 204.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 186.25 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 49.50 174.25 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 174.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.16 174.25 Td ( \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 160.75 409.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 160.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 160.75 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 132.75 409.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 132.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 132.75 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 104.75 409.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 104.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 104.75 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 76.75 409.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 76.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 76.75 100.00 -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 76.75 m 563 76.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 63.75 m 563 63.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 61.75 m 563 61.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 151.00 Td (July 1, 2018 through December 31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.50 151.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 151.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 137.00 Td (2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 137.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 123.00 Td (2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 123.00 Td (72,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 109.00 Td (2021) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 109.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 95.00 Td (2022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 95.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 81.00 Td (Thereafter) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 81.00 Td (45,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.50 67.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 67.00 Td (1) Tj ET Q q 0 0 0 rg BT 537.80 67.00 Td (17,800) 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 278.05 676.60 Td (June 30, 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 (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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.99 482.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.43 482.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.01 482.25 Td (. ) Tj ET Q q 0 0 0 rg BT 232.33 482.25 Td (The notional amount is an indication of the extent of the Company) Tj ET Q q 0 0 0 rg BT 501.44 482.25 Td (s involvement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (in each instrument at that time, but does not represent exposure to credit, interest rate or market risks \(dollars in thousands\): ) Tj ET Q 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 50.00 418.75 239.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 289.00 418.75 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 293.00 418.75 48.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 341.00 418.75 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 345.00 418.75 88.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 433.00 418.75 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 437.00 418.75 55.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 492.00 418.75 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 496.00 418.75 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 133 439.75 m 183 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 439.75 m 187 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187 439.75 m 235 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 439.75 m 289 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 439.75 m 293 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 439.75 m 341 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 418.75 m 129 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133 418.75 m 183 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 439.75 m 187 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187 418.75 m 235 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 418.75 m 289 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 418.75 m 341 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 418.75 m 433 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 418.75 m 492 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 418.75 m 563 418.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 444.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 160.25 443.98 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 257.25 443.98 Td (December) Tj ET Q q 0 0 0 rg BT 291.82 443.98 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 444.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.40 438.98 Td (W) Tj ET Q q 0 0 0 rg BT 453.96 438.98 Td (eighted-) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.05 430.98 Td (A) Tj ET Q q 0 0 0 rg BT 455.23 430.98 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.00 422.98 Td ( Fix Pay Rate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.40 445.83 Td (W) Tj ET Q q 0 0 0 rg BT 519.18 445.83 Td (eighted-) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.05 437.83 Td (A) Tj ET Q q 0 0 0 rg BT 520.53 437.83 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 500.20 429.83 Td (Remaining ) Tj ET Q q 0 0 0 rg BT 539.46 429.83 Td (T) Tj ET Q q 0 0 0 rg BT 544.36 429.83 Td (erm) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.25 421.83 Td (in ) Tj ET Q q 0 0 0 rg BT 523.77 421.83 Td (Y) Tj ET Q q 0 0 0 rg BT 528.96 421.83 Td (ears) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 430.98 Td (Derivative) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 422.98 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 139.00 430.98 Td (Number) Tj ET Q q 0 0 0 rg BT 167.37 430.98 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 136.60 422.98 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 195.80 430.98 Td (Notional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 196.45 422.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 245.00 430.98 Td (Number) Tj ET Q q 0 0 0 rg BT 273.37 430.98 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 242.60 422.98 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 301.80 430.98 Td (Notional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 302.45 422.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.55 430.98 Td (Refer) Tj ET Q q 0 0 0 rg BT 372.50 430.98 Td (ence Rate as of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.25 422.98 Td (June 30, 2018) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 408.98 Td (Derivative instruments not designated as hedging instruments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 388.00 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 118.04 391.63 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 155.50 388.00 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 189.50 388.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 209.75 388.00 Td (78,533) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 261.50 388.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 295.50 388.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 315.75 388.00 Td (48,533) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.15 396.00 Td (One-month LIBOR/) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 350.50 388.00 Td (Fixed at 2.07% - 2.82%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.65 388.00 Td (2.36%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 522.00 388.00 Td (3.23) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 372.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 363.27 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 359.65 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 232.17 359.65 Td ($48.5 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 275.28 359.65 Td (, which will become ef) Tj ET Q q 0 0 0 rg BT 348.22 359.65 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 49.50 350.05 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 208.55 350.05 Td ($30.0 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.67 350.05 Td (, which will become ef) Tj ET Q q 0 0 0 rg BT 324.61 350.05 Td (fective on ) Tj ET Q q 0 0 0 rg BT 357.93 350.05 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 72.00 326.05 Td (The following table sets forth the fair value of the Company) Tj ET Q q 0 0 0 rg BT 315.27 326.05 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 49.50 314.05 Td (consolidated balance sheets as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.17 314.05 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.00 314.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.44 314.05 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.03 314.05 Td ( \(dollars in thousands\):) Tj ET Q 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 50.00 262.55 405.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 455.00 262.55 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 459.00 262.55 50.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 509.00 262.55 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 513.00 262.55 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 351 283.54999999999995 m 401 283.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 283.54999999999995 m 405 283.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 283.54999999999995 m 455 283.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 283.54999999999995 m 509 283.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 283.54999999999995 m 513 283.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 283.54999999999995 m 563 283.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 262.54999999999995 m 141 262.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 262.54999999999995 m 347 262.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 262.54999999999995 m 401 262.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 262.54999999999995 m 455 262.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 262.54999999999995 m 509 262.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 262.54999999999995 m 563 262.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 235.54999999999995 m 455 235.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 233.54999999999995 m 455 233.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 235.54999999999995 m 563 235.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 233.54999999999995 m 563 233.54999999999995 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.25 287.78 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.25 287.78 Td (December) Tj ET Q q 0 0 0 rg BT 512.82 287.78 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 266.78 Td (Derivative Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 147.50 266.78 Td (Balance Sheet Location) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 357.00 274.78 Td (Number) Tj ET Q q 0 0 0 rg BT 385.37 274.78 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.60 266.78 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 411.65 266.78 Td (Fair) Tj ET Q q 0 0 0 rg BT 426.24 266.78 Td ( ) Tj ET Q q 0 0 0 rg BT 428.09 266.78 Td (V) Tj ET Q q 0 0 0 rg BT 433.43 266.78 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.00 274.78 Td (Number) Tj ET Q q 0 0 0 rg BT 493.37 274.78 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.60 266.78 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.65 266.78 Td (Fair) Tj ET Q q 0 0 0 rg BT 534.17 266.78 Td ( ) Tj ET Q q 0 0 0 rg BT 536.02 266.78 Td (V) Tj ET Q q 0 0 0 rg BT 541.06 266.78 Td (alue) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 252.78 Td (Derivative instruments not designated as hedging instruments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 238.80 Td (Interest Rate Swaps) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 238.80 Td (Prepaid expenses and other assets, at fair value) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.50 238.80 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.50 238.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.80 238.80 Td (989) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.50 238.80 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 515.50 238.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 238.80 Td (178) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 211.05 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 49.50 199.05 Td (expense in the accompanying consolidated statements of operations. ) Tj ET Q q 0 0 0 rg BT 325.07 199.05 Td (The following table summarizes the ef) Tj ET Q q 0 0 0 rg BT 479.01 199.05 Td (fects of derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.05 Td (instruments on the Company) Tj ET Q q 0 0 0 rg BT 167.55 187.05 Td (s consolidated statements of operations \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 142.55 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 142.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 142.55 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 142.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 142.55 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 142.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 142.55 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 142.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 142.55 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 114.55 233.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 114.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 114.55 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 114.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 114.55 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 114.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 114.55 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 114.55 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 114.55 65.00 -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 287 156.54999999999995 m 354 156.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 156.54999999999995 m 358 156.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 156.54999999999995 m 425 156.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 156.54999999999995 m 494 156.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 156.54999999999995 m 498 156.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 156.54999999999995 m 563 156.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 156.54999999999995 m 354 156.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 142.54999999999995 m 354 142.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 156.54999999999995 m 358 156.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 156.54999999999995 m 425 156.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 142.54999999999995 m 425 142.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 156.54999999999995 m 494 156.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 142.54999999999995 m 494 142.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 156.54999999999995 m 498 156.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 156.54999999999995 m 563 156.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 142.54999999999995 m 563 142.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 142.54999999999995 m 354 142.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 142.54999999999995 m 425 142.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 142.54999999999995 m 494 142.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 142.54999999999995 m 563 142.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 100.54999999999995 m 354 100.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 100.54999999999995 m 425 100.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 100.54999999999995 m 494 100.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 100.54999999999995 m 563 100.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 100.54999999999995 m 354 100.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 86.54999999999995 m 354 86.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 100.54999999999995 m 425 100.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 86.54999999999995 m 425 86.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 100.54999999999995 m 494 100.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 86.54999999999995 m 494 86.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 100.54999999999995 m 563 100.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 86.54999999999995 m 563 86.54999999999995 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 160.80 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.45 160.78 Td (For) Tj ET Q q 0 0 0 rg BT 302.82 160.78 Td ( the ) Tj ET Q q 0 0 0 rg BT 317.33 160.78 Td (Thr) Tj ET Q q 0 0 0 rg BT 330.53 160.78 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 435.20 160.78 Td (For) Tj ET Q q 0 0 0 rg BT 447.57 160.78 Td ( the Six Months Ended June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 146.80 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 312.00 146.78 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.00 146.78 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 146.78 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 146.78 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 132.78 Td (Income statement r) Tj ET Q q 0 0 0 rg BT 118.55 132.78 Td (elated) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 118.78 Td (Derivatives not designated as hedging instruments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 104.80 Td (Unrealized gain on interest rate swaps) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.50 104.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.10 104.80 Td (\(439) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 350.80 104.80 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.50 104.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 104.80 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 104.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.10 104.80 Td (\(81) Tj ET Q q 0 0 0 rg BT 486.76 104.80 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.80 104.80 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 104.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 104.80 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 90.80 Td (Decrease in interest expense as a result of derivatives) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.50 90.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.10 90.80 Td (\(439) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 350.80 90.80 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.50 90.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 90.80 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 90.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.10 90.80 Td (\(81) Tj ET Q q 0 0 0 rg BT 486.76 90.80 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.80 90.80 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 90.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 90.80 Td () Tj ET Q BT /F1 10.00 Tf ET 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 278.05 676.60 Td (June 30, 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 /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 Level 2 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 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 278.05 676.60 Td (June 30, 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 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.63 632.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 620.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.02 620.10 Td (, which carrying amounts generally do not approximate the fair values \(in thousands\):) Tj ET Q 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 50.00 568.60 159.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 209.00 568.60 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 213.00 568.60 55.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 268.00 568.60 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 272.00 568.60 55.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 327.00 568.60 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 331.00 568.60 55.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 386.00 568.60 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 390.00 568.60 55.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 445.00 568.60 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 449.00 568.60 55.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 504.00 568.60 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 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 275.75 593.83 Td (June 30, 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 (16,682) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.50 544.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.75 544.85 Td (1) Tj ET Q q 0 0 0 rg BT 360.75 544.85 Td (19,250) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.50 544.85 Td ($) 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 478.10 Td (, the Company measured the following assets at fair value \(in thousands\):) Tj ET Q 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 50.00 414.60 202.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 252.00 414.60 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 256.00 414.60 59.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 315.00 414.60 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 319.00 414.60 79.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 398.00 414.60 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 402.00 414.60 70.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 472.00 414.60 4.00 -14.00 re f /GS0 gs 0.7490196078431373 0.8941176470588236 1 rg /GS0 gs 476.00 414.60 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 (Quoted Prices in ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.65 434.83 Td (Active Markets ) 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 (Significant Other) 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 (\(Level 3\) ) 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 derivatives - interest rate swaps) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 258.50 390.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.80 390.85 Td (989) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 321.50 390.85 Td ($) 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 ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.80 390.85 Td (989) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.50 390.85 Td ($) 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 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 363.10 Td (8. ) Tj ET Q q 0 0 0 rg BT 72.00 363.10 Td (RELA) Tj ET Q q 0 0 0 rg BT 99.04 363.10 Td (TED-P) Tj ET Q q 0 0 0 rg BT 128.30 363.10 Td (AR) Tj ET Q q 0 0 0 rg BT 142.39 363.10 Td (TY) Tj ET Q q 0 0 0 rg BT 155.91 363.10 Td ( ) Tj ET Q q 0 0 0 rg BT 158.23 363.10 Td (TRANSACTIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 345.10 Td (Pursuant to the ) Tj ET Q q 0 0 0 rg BT 133.94 345.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 173.11 345.10 Td (Agreement, the Initial Private Of) Tj ET Q q 0 0 0 rg BT 304.83 345.10 Td (fering Dealer Manager ) Tj ET Q q 0 0 0 rg BT 397.84 345.10 Td (Agreement and the Public Of) Tj ET Q q 0 0 0 rg BT 514.85 345.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.10 Td (Dealer Manager ) Tj ET Q q 0 0 0 rg BT 116.13 333.10 Td (Agreement, the Company is or was obligated to pay the ) Tj ET Q q 0 0 0 rg BT 340.80 333.10 Td (Advisor and the Dealer Manager specified fees upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.10 Td (the provision of certain services related to the Initial Private Of) Tj ET Q q 0 0 0 rg BT 302.01 321.10 Td (fering and the Public Of) Tj ET Q q 0 0 0 rg BT 398.47 321.10 Td (fering, the investment of funds in real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.10 Td (estate, management of the Company) Tj ET Q q 0 0 0 rg BT 198.06 309.10 Td (s investments and for other services \(including, but not limited to, the disposition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.10 Td (investments\). ) Tj ET Q q 0 0 0 rg BT 107.92 297.10 Td (The Company was also obligated to reimburse the ) Tj ET Q q 0 0 0 rg BT 310.66 297.10 Td (Advisor and Dealer Manager for certain or) Tj ET Q q 0 0 0 rg BT 481.51 297.10 Td (ganization and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 285.10 Td (fering costs incurred by the ) Tj ET Q q 0 0 0 rg BT 169.01 285.10 Td (Advisor and the Dealer Manager on behalf of the Company) Tj ET Q q 0 0 0 rg BT 406.34 285.10 Td (, and the Company is obligated to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.10 Td (reimburse the ) Tj ET Q q 0 0 0 rg BT 106.15 273.10 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 49.50 261.10 Td (Company or incurred in connection with providing services to the Company) Tj ET Q q 0 0 0 rg BT 353.79 261.10 Td (. ) Tj ET Q q 0 0 0 rg BT 361.11 261.10 Td (The ) Tj ET Q q 0 0 0 rg BT 378.60 261.10 Td (Advisor is entitled to certain other fees, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.10 Td (including an incentive fee upon achieving certain performance goals, as detailed in the ) Tj ET Q q 0 0 0 rg BT 397.70 249.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 436.87 249.10 Td (Agreement. In addition, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.10 Td (Advisor will pay all of) Tj ET Q q 0 0 0 rg BT 139.86 237.10 Td (fering expenses related to the Second Private Of) Tj ET Q q 0 0 0 rg BT 332.67 237.10 Td (fering without reimbursement by the Company) Tj ET Q q 0 0 0 rg BT 520.04 237.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 219.10 Td (In addition, in connection with certain property acquisitions, the Company) Tj ET Q q 0 0 0 rg BT 369.34 219.10 Td (, through indirect wholly owned subsidiaries, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.10 Td (has entered into separate Property Management ) Tj ET Q q 0 0 0 rg BT 241.65 207.10 Td (Agreements \(defined below\) with KBS Management Group, LLC, an af) Tj ET Q q 0 0 0 rg BT 529.45 207.10 Td (filiate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.10 Td (of the ) Tj ET Q q 0 0 0 rg BT 74.50 195.10 Td (Advisor \(the Co-Manager\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 177.10 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 49.50 165.10 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 535.72 165.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.10 Td (participation in the DTCC ) Tj ET Q q 0 0 0 rg BT 156.15 153.10 Td (Alternative Investment Product Platform with respect to certain accounts of the Company) Tj ET Q q 0 0 0 rg BT 517.44 153.10 Td (s investors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.10 Td (serviced through the platform. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 123.10 Td (The ) Tj ET Q q 0 0 0 rg BT 89.50 123.10 Td (Advisor also serves as the advisor for KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 358.43 123.10 Td (T) Tj ET Q q 0 0 0 rg BT 364.18 123.10 Td (rust, Inc. \(KBS REIT) Tj ET Q q 0 0 0 rg BT 453.71 123.10 Td ( I\), KBS Real Estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 111.10 Td (Investment ) Tj ET Q q 0 0 0 rg BT 96.25 111.10 Td (T) Tj ET Q q 0 0 0 rg BT 102.01 111.10 Td (rust II, Inc. \(KBS REIT) Tj ET Q q 0 0 0 rg BT 200.70 111.10 Td ( II\), KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 339.09 111.10 Td (T) Tj ET Q q 0 0 0 rg BT 344.85 111.10 Td (rust III, Inc. \(KBS REIT) Tj ET Q q 0 0 0 rg BT 446.86 111.10 Td ( III\), KBS Strategic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.10 Td (Opportunity REIT) Tj ET Q q 0 0 0 rg BT 122.36 99.10 Td (, Inc. \(KBS Strategic Opportunity REIT\), KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 387.86 99.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 454.60 99.10 Td (, Inc. \(KBS Legacy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.10 Td (Partners ) Tj ET Q q 0 0 0 rg BT 84.22 87.10 Td (Apartment REIT\) and KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 312.32 87.10 Td ( II, Inc. \(KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 485.44 87.10 Td ( II\). ) Tj ET Q q 0 0 0 rg BT 507.19 87.10 Td (The Dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.10 Td (Manager also serves as the dealer manager for KBS REIT) Tj ET Q q 0 0 0 rg BT 281.18 75.10 Td ( II, KBS REIT) Tj ET Q q 0 0 0 rg BT 339.33 75.10 Td ( III, KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 489.68 75.10 Td (, KBS Legacy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 63.10 Td (Partners ) Tj ET Q q 0 0 0 rg BT 84.22 63.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 151.52 63.10 Td ( and KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 304.37 63.10 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 278.05 676.60 Td (June 30, 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 (The Company) Tj ET Q q 0 0 0 rg BT 128.28 632.10 Td (, together with KBS REIT) Tj ET Q q 0 0 0 rg BT 232.82 632.10 Td ( I, KBS REIT) Tj ET Q q 0 0 0 rg BT 287.63 632.10 Td ( II, KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 434.65 632.10 Td (, KBS Legacy Partners ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 116.24 620.10 Td (, KBS REIT) Tj ET Q q 0 0 0 rg BT 165.23 620.10 Td ( III, KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 316.14 620.10 Td ( II, the Dealer Manager) Tj ET Q q 0 0 0 rg BT 409.29 620.10 Td (, the ) Tj ET Q q 0 0 0 rg BT 428.46 620.10 Td (Advisor and other KBS af) Tj ET Q q 0 0 0 rg BT 532.71 620.10 Td (filiated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (entities, entered into an errors and omissions and directors and of) Tj ET Q q 0 0 0 rg BT 310.08 608.10 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 49.50 596.10 Td (insurance coverage are shared. ) Tj ET Q q 0 0 0 rg BT 174.52 596.10 Td (The cost of these lower tiers is allocated by the ) Tj ET Q q 0 0 0 rg BT 364.47 596.10 Td (Advisor and its insurance broker among each of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (the various entities covered by the program and is billed directly to each entity) Tj ET Q q 0 0 0 rg BT 362.92 584.10 Td (. ) Tj ET Q q 0 0 0 rg BT 367.74 584.10 Td (The allocation of these shared coverage costs is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 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 421.69 572.10 Td (ficers liability coverage purchased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (individually by each REIT) Tj ET Q q 0 0 0 rg BT 155.12 560.10 Td (. ) Tj ET Q q 0 0 0 rg BT 159.94 560.10 Td (The ) Tj ET Q q 0 0 0 rg BT 177.43 560.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 210.03 560.10 Td () Tj ET Q q 0 0 0 rg BT 212.81 560.10 Td (s and the Dealer Manager) Tj ET Q q 0 0 0 rg BT 315.91 560.10 Td () Tj ET Q q 0 0 0 rg BT 318.68 560.10 Td (s portion of the shared lower tiers) Tj ET Q q 0 0 0 rg BT 455.68 560.10 Td ( cost is proportionate to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (the respective entities) Tj ET Q q 0 0 0 rg BT 138.72 548.10 Td ( prior cost for the errors and omissions insurance. In June 2018, the Company renewed its participation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (in the program. ) Tj ET Q q 0 0 0 rg BT 115.32 536.10 Td (At renewal, KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 297.32 536.10 Td (, KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 435.74 536.10 Td ( II and Legacy Partners ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 116.80 524.10 Td ( elected to cease participation in the program and obtain separate insurance coverage. ) Tj ET Q q 0 0 0 rg BT 462.85 524.10 Td (The program is ef) Tj ET Q q 0 0 0 rg BT 534.03 524.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (through June 30, 2019. KBS REIT) Tj ET Q q 0 0 0 rg BT 190.43 512.10 Td ( I elected to cease participation in the program at the June 2017 renewal and obtained ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (separate insurance coverage.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 482.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 482.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.22 482.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.04 482.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.87 482.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.31 482.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.31 482.10 Td (, no other business transactions occurred between the Company and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (KBS REIT) Tj ET Q q 0 0 0 rg BT 93.49 470.10 Td ( I, KBS REIT) Tj ET Q q 0 0 0 rg BT 148.31 470.10 Td ( II, KBS REIT) Tj ET Q q 0 0 0 rg BT 206.46 470.10 Td ( III, KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 356.80 470.10 Td (, KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 450.40 470.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 517.70 470.10 Td ( and KBS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 160.96 458.10 Td ( II. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 440.10 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 49.50 428.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 428.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.92 428.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.59 428.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.42 428.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.25 428.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.69 428.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.69 428.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 309.35 428.10 Td (, and any related amounts payable as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.57 428.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.40 428.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 416.10 Td ( \(in thousands\).) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 357.60 162.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 357.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.00 357.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 357.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 357.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 357.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 357.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 357.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 357.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 357.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 357.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 357.60 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 329.60 162.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 329.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.00 329.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 329.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 329.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 329.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 329.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 329.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 329.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 329.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 329.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 329.60 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 301.60 162.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 301.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.00 301.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 301.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 301.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 301.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 301.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 301.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 301.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 301.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 301.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 301.60 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 273.60 162.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 273.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.00 273.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 273.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 273.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 273.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 273.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 273.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 273.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 273.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 273.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 273.60 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 245.60 162.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 245.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.00 245.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 245.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 245.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 245.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 245.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 245.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 245.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 245.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 245.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 245.60 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 217.60 162.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 217.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.00 217.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.00 217.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 217.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 217.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 217.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 217.60 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 217.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 217.60 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 217.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 217.60 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 212 385.6 m 265 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 385.6 m 269 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 385.6 m 322 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 385.6 m 326 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 385.6 m 376 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 385.6 m 380 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 385.6 m 430 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 385.6 m 487 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 385.6 m 491 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 385.6 m 563 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 385.6 m 265 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 385.6 m 487 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 385.6 m 563 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 357.6 m 265 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 357.6 m 322 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 357.6 m 376 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 357.6 m 430 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 357.6 m 487 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 357.6 m 563 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 203.60000000000002 m 265 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 203.60000000000002 m 322 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 203.60000000000002 m 376 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 203.60000000000002 m 430 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 203.60000000000002 m 487 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 203.60000000000002 m 563 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 203.60000000000002 m 265 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 190.60000000000002 m 265 190.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 188.60000000000002 m 265 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 203.60000000000002 m 322 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 190.60000000000002 m 322 190.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269 188.60000000000002 m 322 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 203.60000000000002 m 376 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 190.60000000000002 m 376 190.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 188.60000000000002 m 376 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 203.60000000000002 m 430 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 190.60000000000002 m 430 190.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 188.60000000000002 m 430 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 190.60000000000002 m 487 190.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 188.60000000000002 m 487 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 190.60000000000002 m 563 190.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 188.60000000000002 m 563 188.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 305.20 389.83 Td (Incurr) Tj ET Q q 0 0 0 rg BT 327.79 389.83 Td (ed) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.55 389.83 Td (Payable as of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 214.85 375.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 228.11 375.83 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.70 375.83 Td (Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 230.00 361.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 287.00 361.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 342.50 361.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.50 361.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.75 361.83 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.25 361.83 Td (December) Tj ET Q q 0 0 0 rg BT 528.75 361.83 Td ( 31, 2017) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 347.83 Td (Expensed) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 333.85 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 130.03 337.48 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 214.50 333.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 249.80 333.85 Td (462) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 271.50 333.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 333.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.50 333.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.80 333.85 Td (918) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.50 333.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 414.80 333.85 Td (214) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.50 333.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 333.85 Td (1,336) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.50 333.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 333.85 Td (418) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 319.85 Td (Reimbursement of operating expenses ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 176.91 323.48 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.80 319.85 Td (53) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 319.85 Td (50) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.80 319.85 Td (106) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 414.80 319.85 Td (104) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 319.85 Td (19) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 319.85 Td (18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 305.85 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 139.80 309.48 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.80 305.85 Td (42) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 305.85 Td (31) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.80 305.85 Td (84) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.80 305.85 Td (60) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 305.85 Td (10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 305.85 Td (13) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 291.83 Td (Other ) Tj ET Q q 0 0 0 rg BT 73.46 291.83 Td (Arrangement) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 277.85 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 178.03 281.48 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.80 277.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 277.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.80 277.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.80 277.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 277.85 Td (1,338) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 277.85 Td (1,338) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 263.83 Td (Additional Paid-in Capital) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 249.85 Td (Selling commissions) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.80 249.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 249.85 Td (17) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.80 249.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.80 249.85 Td (78) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 249.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 249.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 235.85 Td (Dealer manager fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.80 235.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 235.85 Td (15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.80 235.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.80 235.85 Td (50) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 235.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 235.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 221.85 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 139.36 225.48 Td (\(5\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.80 221.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.10 221.85 Td (\(77) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.80 221.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.80 221.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.10 221.85 Td (\(26) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.80 221.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 221.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 221.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 207.85 Td (Reimbursable other of) Tj ET Q q 0 0 0 rg BT 123.89 207.85 Td (fering costs ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 162.99 211.48 Td (\(6\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.80 207.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.10 207.85 Td (\(9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.80 207.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.80 207.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.80 207.85 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 207.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 207.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 214.50 193.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 249.80 193.85 Td (557) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 271.50 193.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 193.85 Td (27) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.50 193.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.75 193.85 Td (1,108) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.50 193.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 414.80 193.85 Td (494) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.50 193.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 193.85 Td (2,703) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.50 193.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 193.85 Td (1,787) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (_____________________) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 169.50 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 166.10 Td ( ) Tj ET Q q 0 0 0 rg BT 56.92 166.10 Td (Through ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 84.21 166.10 Td (August 8, 2017) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 130.26 166.10 Td (, the asset management fee payable to the ) Tj ET Q q 0 0 0 rg BT 256.26 166.10 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 409.34 166.10 Td (1.6%) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 424.97 166.10 Td ( of the cost of the Company) Tj ET Q q 0 0 0 rg BT 510.37 166.10 Td (s investments, ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 157.10 Td (less any debt secured by or attributable to the investments. Beginning on ) Tj ET Q q 0 0 0 rg BT 268.84 157.10 Td (August 9, 2017, the asset management fee is a monthly fee payable to the ) Tj ET Q q 0 0 0 rg BT 490.87 157.10 Td (Advisor in an amount ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 148.10 Td (equal to one-twelfth of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 119.90 148.10 Td (1.0%) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 135.52 148.10 Td ( of the cost of the Company) Tj ET Q q 0 0 0 rg BT 220.92 148.10 Td (s investments including the portion of the investment that is debt financed. ) Tj ET Q q 0 0 0 rg BT 446.10 148.10 Td (As of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 464.43 148.10 Td (June 30, 2018) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 506.30 148.10 Td (, the Company ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (had accrued and deferred payment of ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 162.78 139.10 Td ($1.3 million) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 199.45 139.10 Td ( of asset management fees related to the fourth quarter of 2017 through the second quarter of 2018.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 130.50 Td (\(2\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 127.10 Td ( See Reimbursable Operating Expenses below) Tj ET Q q 0 0 0 rg BT 199.86 127.10 Td (.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 118.50 Td (\(3\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 115.10 Td ( See Real Estate Property Co-Management ) Tj ET Q q 0 0 0 rg BT 188.48 115.10 Td (Agreements below) Tj ET Q q 0 0 0 rg BT 247.77 115.10 Td (.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 106.50 Td (\(4\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 103.10 Td ( See Advance from the ) Tj ET Q q 0 0 0 rg BT 128.70 103.10 Td (Advisor below) Tj ET Q q 0 0 0 rg BT 175.91 103.10 Td (.) Tj ET Q BT /F1 7.50 Tf ET BT /F1 4.87 Tf ET q 0 0 0 rg BT 49.50 94.50 Td (\(5\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 91.10 Td ( ) Tj ET Q q 0 0 0 rg BT 58.80 91.10 Td (The Public Of) Tj ET Q q 0 0 0 rg BT 101.16 91.10 Td (fering was terminated ef) Tj ET Q q 0 0 0 rg BT 174.12 91.10 Td (fective June 30, 2017. Pursuant to the terms of the Class ) Tj ET Q q 0 0 0 rg BT 346.46 91.10 Td (T) Tj ET Q q 0 0 0 rg BT 350.90 91.10 Td ( shares as set forth in the ) Tj ET Q q 0 0 0 rg BT 426.51 91.10 Td (Articles Supplementary and Multiple Class ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (Plan of the Company) Tj ET Q q 0 0 0 rg BT 112.55 82.10 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 73.50 Td (\(6\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.18 70.10 Td ( See Or) Tj ET Q q 0 0 0 rg BT 80.87 70.10 Td (ganization and Of) Tj ET Q q 0 0 0 rg BT 134.47 70.10 Td (fering Costs below) Tj ET Q q 0 0 0 rg BT 193.97 70.10 Td (.) Tj ET Q endstream endobj 43 0 obj <>] /Rotate 0 /Contents 44 0 R>> endobj 44 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 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 278.05 676.60 Td (June 30, 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 (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 632.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.22 632.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.04 632.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.87 632.10 Td (, the ) Tj ET Q q 0 0 0 rg BT 265.04 632.10 Td (Advisor paid the Company a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.52 632.10 Td ($10,655) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.02 632.10 Td ( property insurance rebate. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (Reimbursable Operating Expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 599.10 Td (Reimbursable operating expenses primarily related to directors and of) Tj ET Q q 0 0 0 rg BT 351.17 599.10 Td (ficers liability insurance, legal fees, state and local ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (taxes, accounting software and cybersecurity related expenses incurred by the ) Tj ET Q q 0 0 0 rg BT 362.43 587.10 Td (Advisor under the ) Tj ET Q q 0 0 0 rg BT 436.58 587.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 475.75 587.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 527.50 587.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (Company has reimbursed the ) Tj ET Q q 0 0 0 rg BT 168.37 575.10 Td (Advisor for the Company) Tj ET Q q 0 0 0 rg BT 273.63 575.10 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 49.50 563.10 Td (audit department personnel providing services to the Company) Tj ET Q q 0 0 0 rg BT 300.18 563.10 Td (. ) Tj ET Q q 0 0 0 rg BT 307.50 563.10 Td (These amounts totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.97 563.10 Td ($50,213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.47 563.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.91 563.10 Td ($103,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.41 563.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.79 563.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.77 563.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.17 551.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 551.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.83 551.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 230.49 551.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.42 551.10 Td ($49,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.92 551.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.36 551.10 Td ($101,741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.86 551.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.24 551.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.23 551.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.66 551.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.33 551.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.16 551.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.99 551.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 539.10 Td (, and were the only type of employee costs reimbursed under the ) Tj ET Q q 0 0 0 rg BT 357.36 539.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 396.53 539.10 Td (Agreement for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.33 539.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.32 539.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.76 539.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.43 539.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 527.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 527.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.15 527.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.15 527.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 223.81 527.10 Td (. ) Tj ET Q q 0 0 0 rg BT 228.63 527.10 Td (The Company does not reimburse for employee costs in connection with services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (for which the ) Tj ET Q q 0 0 0 rg BT 104.76 515.10 Td (Advisor earned or earns acquisition, origination or disposition fees \(other than reimbursement of travel and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (communication expenses\) or for the salaries or benefits the ) Tj ET Q q 0 0 0 rg BT 287.48 503.10 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 352.57 503.10 Td (filiates may pay to the Company) Tj ET Q q 0 0 0 rg BT 485.59 503.10 Td (s executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 491.10 Td (ficers. In addition to the amounts above, the Company reimburses the ) Tj ET Q q 0 0 0 rg BT 340.36 491.10 Td (Advisor for certain of the Company) Tj ET Q q 0 0 0 rg BT 486.16 491.10 Td (s direct costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (incurred from third parties that were initially paid by the ) Tj ET Q q 0 0 0 rg BT 277.21 479.10 Td (Advisor on behalf of the Company) Tj ET Q q 0 0 0 rg BT 415.70 479.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 461.10 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.26 461.10 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 505.88 461.10 Td (Advisor in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.10 Td (connection with providing services pursuant to the ) Tj ET Q q 0 0 0 rg BT 253.63 449.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 292.80 449.10 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 49.50 437.10 Td (internal audit department and \(ii\) promotional costs and expenses related to the leasing of properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 419.10 Td (Commencing with the quarter ended December 31, 2016, the ) Tj ET Q q 0 0 0 rg BT 318.32 419.10 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 49.50 407.10 Td (the Company) Tj ET Q q 0 0 0 rg BT 105.88 407.10 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 491.82 407.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 407.10 Td ( of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 395.10 Td (s average invested assets or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.63 395.10 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.96 395.10 Td ( of the Company) Tj ET Q q 0 0 0 rg BT 291.67 395.10 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 49.50 383.10 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 49.50 371.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 371.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 371.10 Td ( did not exceed the charter) Tj ET Q q 0 0 0 rg BT 237.29 371.10 Td (-imposed limitation.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (Advance fr) Tj ET Q q 0 0 0 rg BT 96.81 353.10 Td (om the ) Tj ET Q q 0 0 0 rg BT 127.92 353.10 Td (Advisor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 338.10 Td (The ) Tj ET Q q 0 0 0 rg BT 89.50 338.10 Td (Advisor advanced funds to the Company) Tj ET Q q 0 0 0 rg BT 252.42 338.10 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 49.50 326.10 Td (period ended May 31, 2016. ) Tj ET Q q 0 0 0 rg BT 166.70 326.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.15 326.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.98 326.10 Td (, the total advanced funds due to the ) Tj ET Q q 0 0 0 rg BT 393.32 326.10 Td (Advisor from the Company was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 314.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.65 314.10 Td (. ) Tj ET Q q 0 0 0 rg BT 163.47 314.10 Td (The Company is only obligated to repay the ) Tj ET Q q 0 0 0 rg BT 341.21 314.10 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 72.00 296.10 Td (\(i\) ) Tj ET Q q 0 0 0 rg BT 94.50 296.10 Td (the Company) Tj ET Q q 0 0 0 rg BT 150.88 296.10 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 94.50 284.10 Td (Alternatives and interpreted by the Company) Tj ET Q q 0 0 0 rg BT 274.08 284.10 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 94.50 272.10 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 94.50 260.10 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 94.50 248.10 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 94.50 236.10 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 72.00 221.10 Td (\(ii\) ) Tj ET Q q 0 0 0 rg BT 94.50 221.10 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 94.50 209.10 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 94.50 197.10 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 72.00 176.10 Td (In determining whether Excess Proceeds are available to repay the advance, the Company) Tj ET Q q 0 0 0 rg BT 434.36 176.10 Td (s conflicts committee will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 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 49.50 152.10 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 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 278.05 676.60 Td (June 30, 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 /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Real Estate Pr) Tj ET Q q 0 0 0 rg BT 110.96 632.25 Td (operty Co-Management ) Tj ET Q q 0 0 0 rg BT 214.83 632.25 Td (Agr) Tj ET Q q 0 0 0 rg BT 231.31 632.25 Td (eements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (In connection with its property acquisitions, the Company) Tj ET Q q 0 0 0 rg BT 303.53 614.25 Td (, through separate, indirect, wholly-owned subsidiaries, entered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (into separate property management agreements \(each, a Property Management ) Tj ET Q q 0 0 0 rg BT 369.92 602.25 Td (Agreement\) with the Co-Manager for each of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (its properties. Under each Property Management ) Tj ET Q q 0 0 0 rg BT 248.33 590.25 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 49.50 578.25 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 49.50 566.25 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 49.50 554.25 Td (from each of the properties. Each Property Management ) Tj ET Q q 0 0 0 rg BT 278.86 554.25 Td (Agreement has an initial term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.04 554.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.48 554.25 Td ( year and will be deemed renewed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (for successive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.37 542.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.81 542.25 Td (-year periods provided it is not terminated. Each party may terminate the Property Management ) Tj ET Q q 0 0 0 rg BT 509.91 542.25 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (without cause on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.76 530.25 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 530.25 Td ( days) Tj ET Q q 0 0 0 rg BT 153.18 530.25 Td ( written notice to the other party and may terminate each Property Management ) Tj ET Q q 0 0 0 rg BT 475.85 530.25 Td (Agreement for cause ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.00 518.25 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 518.25 Td ( days) Tj ET Q q 0 0 0 rg BT 90.42 518.25 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 49.50 506.25 Td (Agreement.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 475.75 283.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.00 475.75 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 475.75 110.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 475.75 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 475.75 110.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 447.75 283.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.00 447.75 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 447.75 110.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 447.75 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 447.75 110.00 -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 49 475.75 m 332 475.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 475.75 m 447 475.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 475.75 m 562 475.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 479.98 Td (Pr) Tj ET Q q 0 0 0 rg BT 59.79 479.98 Td (operty Name) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.40 479.98 Td (Effective Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.00 479.98 Td (Annual Fee Per) Tj ET Q q 0 0 0 rg BT 520.18 479.98 Td (centage) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 466.00 Td (V) Tj ET Q q 0 0 0 rg BT 56.76 466.00 Td (on Karman ) Tj ET Q q 0 0 0 rg BT 93.94 466.00 Td (T) Tj ET Q q 0 0 0 rg BT 98.47 466.00 Td (ech Center) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.25 466.00 Td (07/31/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.15 466.00 Td (1.50%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 452.00 Td (Commonwealth Building) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.25 452.00 Td (07/01/2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.15 452.00 Td (1.25%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 438.00 Td (The Of) Tj ET Q q 0 0 0 rg BT 74.31 438.00 Td (fices at Greenhouse) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.40 438.00 Td (1) Tj ET Q q 0 0 0 rg BT 377.25 438.00 Td (1/14/2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.15 438.00 Td (0.25%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 424.00 Td (Institute Property) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.40 424.00 Td (1) Tj ET Q q 0 0 0 rg BT 377.10 424.00 Td (1/09/2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.15 424.00 Td (1.00%) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 396.25 Td (Organization and Offering Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 378.25 Td (Of) Tj ET Q q 0 0 0 rg BT 82.37 378.25 Td (fering costs include all expenses incurred in connection with the of) Tj ET Q q 0 0 0 rg BT 349.89 378.25 Td (ferings of securities by the Company) Tj ET Q q 0 0 0 rg BT 496.70 378.25 Td (. Or) Tj ET Q q 0 0 0 rg BT 514.57 378.25 Td (ganization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.25 Td (costs include all expenses incurred in connection with the formation of the Company) Tj ET Q q 0 0 0 rg BT 388.21 366.25 Td (, including but not limited to legal fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.25 Td (other costs to incorporate the Company) Tj ET Q q 0 0 0 rg BT 206.31 354.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 336.25 Td (W) Tj ET Q q 0 0 0 rg BT 81.04 336.25 Td (ith respect to the Public Of) Tj ET Q q 0 0 0 rg BT 188.33 336.25 Td (fering, the ) Tj ET Q q 0 0 0 rg BT 231.38 336.25 Td (Advisor and the Dealer Manager generally paid the or) Tj ET Q q 0 0 0 rg BT 447.22 336.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 516.46 336.25 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.25 Td (expenses of the Company incurred in the Primary Of) Tj ET Q q 0 0 0 rg BT 260.93 324.25 Td (fering \(other than selling commissions, dealer manager fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.25 Td (stockholder servicing fees\) directly) Tj ET Q q 0 0 0 rg BT 189.63 312.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 294.25 Td (The Company reimbursed the ) Tj ET Q q 0 0 0 rg BT 193.08 294.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 224.91 294.25 Td (, the Dealer Manager and its af) Tj ET Q q 0 0 0 rg BT 348.28 294.25 Td (filiates up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.77 294.25 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.10 294.25 Td ( of gross proceeds raised in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.25 Td (Primary Of) Tj ET Q q 0 0 0 rg BT 94.59 282.25 Td (fering for commercially reasonable or) Tj ET Q q 0 0 0 rg BT 246.00 282.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 315.24 282.25 Td (fering expenses \(other than selling commissions, dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.25 Td (manager fees and stockholder servicing fees\). ) Tj ET Q q 0 0 0 rg BT 234.52 270.25 Td (The ) Tj ET Q q 0 0 0 rg BT 252.01 270.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 283.84 270.25 Td (, the Dealer Manager and their af) Tj ET Q q 0 0 0 rg BT 416.09 270.25 Td (filiates were responsible for all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.25 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 258.25 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 149.93 258.25 Td (fering expenses \(which excludes selling commissions, dealer manager fees and stockholder servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.25 Td (fees\) paid related to the Primary Of) Tj ET Q q 0 0 0 rg BT 190.93 246.25 Td (fering to the extent they exceeded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.65 246.25 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.98 246.25 Td ( of gross proceeds raised in the Primary Of) Tj ET Q q 0 0 0 rg BT 513.42 246.25 Td (fering. ) Tj ET Q q 0 0 0 rg BT 542.11 246.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.25 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 70.50 216.25 Td (During the Initial Private Of) Tj ET Q q 0 0 0 rg BT 183.63 216.25 Td (fering, the Company was obligated to reimburse the ) Tj ET Q q 0 0 0 rg BT 393.30 216.25 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 464.49 216.25 Td (filiates for all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.25 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 204.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 126.89 204.25 Td (fering costs \(excluding wholesaling compensation expenses\) paid by them on behalf of the Company) Tj ET Q q 0 0 0 rg BT 530.31 204.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 186.25 Td (The ) Tj ET Q q 0 0 0 rg BT 89.50 186.25 Td (Advisor has agreed to pay directly all of) Tj ET Q q 0 0 0 rg BT 250.10 186.25 Td (fering expenses related to the Second Private Of) Tj ET Q q 0 0 0 rg BT 442.90 186.25 Td (fering without reimbursement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.25 Td (by the Company) Tj ET Q q 0 0 0 rg BT 114.95 174.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 156.25 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 156.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.77 156.25 Td (, the ) Tj ET Q q 0 0 0 rg BT 183.93 156.25 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 255.13 156.25 Td (filiates had incurred or) Tj ET Q q 0 0 0 rg BT 345.75 156.25 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 438.03 156.25 Td (fering costs \(which exclude ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.25 Td (selling commissions, dealer manager fees and stockholder servicing fees\) on the Company) Tj ET Q q 0 0 0 rg BT 414.40 144.25 Td (s behalf in connection with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.25 Td (Public Of) Tj ET Q q 0 0 0 rg BT 87.93 132.25 Td (fering of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.39 132.25 Td ($4.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.29 132.25 Td (. ) Tj ET Q q 0 0 0 rg BT 238.73 132.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.18 132.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.01 132.25 Td (, the Company had recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.52 132.25 Td ($39,358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.02 132.25 Td ( of or) Tj ET Q q 0 0 0 rg BT 488.50 132.25 Td (ganization and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.25 Td (other of) Tj ET Q q 0 0 0 rg BT 80.70 120.25 Td (fering expenses related to the Public Of) Tj ET Q q 0 0 0 rg BT 238.80 120.25 Td (fering, which amounts represent the Company) Tj ET Q q 0 0 0 rg BT 426.53 120.25 Td (s maximum liability for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.25 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 108.25 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 149.93 108.25 Td (fering costs as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.47 108.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.30 108.25 Td ( based on the limitations described above. ) Tj ET Q q 0 0 0 rg BT 448.21 108.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.65 108.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.48 108.25 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.25 Td (Company had recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.30 96.25 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.19 96.25 Td ( of or) Tj ET Q q 0 0 0 rg BT 215.67 96.25 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 307.96 96.25 Td (fering costs related to the Initial Private Of) Tj ET Q q 0 0 0 rg BT 479.11 96.25 Td (fering. Or) Tj ET Q q 0 0 0 rg BT 518.36 96.25 Td (ganization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.25 Td (costs were expensed as incurred and of) Tj ET Q q 0 0 0 rg BT 205.37 84.25 Td (fering costs are deferred and char) Tj ET Q q 0 0 0 rg BT 338.72 84.25 Td (ged to stockholders) Tj ET Q q 0 0 0 rg BT 419.08 84.25 Td ( equity as such amounts were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 72.25 Td (reimbursed to the ) Tj ET Q q 0 0 0 rg BT 121.43 72.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 153.25 72.25 Td (, the Dealer Manager or their af) Tj ET Q q 0 0 0 rg BT 279.39 72.25 Td (filiates from the gross proceeds of the applicable of) Tj ET Q q 0 0 0 rg BT 484.70 72.25 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 54.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 54.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 54.25 Td (, the ) Tj ET Q q 0 0 0 rg BT 171.44 54.25 Td (Advisor had incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.91 54.25 Td ($3.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.81 54.25 Td ( in of) Tj ET Q q 0 0 0 rg BT 328.73 54.25 Td (fering expenses related to the Second Private Of) Tj ET Q q 0 0 0 rg BT 521.54 54.25 Td (fering. ) 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 278.05 676.60 Td (June 30, 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 (9. ) Tj ET Q q 0 0 0 rg BT 72.00 632.25 Td (COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 153.95 632.25 Td (AND CONTINGENCIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (Economic Dependency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 596.25 Td (The Company depends on the ) Tj ET Q q 0 0 0 rg BT 193.37 596.25 Td (Advisor for certain services that are essential to the Company) Tj ET Q q 0 0 0 rg BT 439.03 596.25 Td (, including the identification, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.25 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 532.74 584.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (investment portfolio; and other general and administrative responsibilities. In the event that the ) Tj ET Q q 0 0 0 rg BT 431.62 572.25 Td (Advisor is unable to provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.25 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 49.50 542.25 Td (Legal Matters) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 524.25 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 49.50 512.25 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 49.50 500.25 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.13 500.25 Td (fect on the Company) Tj ET Q q 0 0 0 rg BT 176.49 500.25 Td (s results of operations or financial condition, which would require accrual or disclosure of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (contingency and possible range of loss. ) Tj ET Q q 0 0 0 rg BT 211.14 488.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 261.04 488.25 Td (, the Company has not recorded any loss contingencies related to legal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.25 Td (proceedings in which the potential loss is deemed to be remote.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (Envir) Tj ET Q q 0 0 0 rg BT 73.77 458.25 Td (onmental) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 440.25 Td (As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (Although there can be no assurance, the Company is not aware of any environmental liability that could have a material adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 416.25 Td (fect on its financial condition or results of operations. However) Tj ET Q q 0 0 0 rg BT 312.45 416.25 Td (, changes in applicable environmental laws and regulations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (the uses and conditions of properties in the vicinity of the Company) Tj ET Q q 0 0 0 rg BT 323.62 404.25 Td (s property) Tj ET Q q 0 0 0 rg BT 363.24 404.25 Td (, the activities of its tenants and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 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 49.50 380.25 Td (liabilities.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (10. ) Tj ET Q q 0 0 0 rg BT 72.00 356.25 Td (SUBSEQUENT) Tj ET Q q 0 0 0 rg BT 139.07 356.25 Td ( EVENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 338.25 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 49.50 320.25 Td (Cash Distributions Paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 302.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 302.25 Td (July 2, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.39 302.25 Td (, the Company paid cash distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.82 302.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.71 302.25 Td (, which related to distributions on the Company) Tj ET Q q 0 0 0 rg BT 542.01 302.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.25 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 364.10 290.25 Td (June 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.93 290.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.04 290.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.87 290.25 Td (. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.54 290.25 Td (August ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.25 Td (1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 278.25 Td (, the Company paid cash distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.92 278.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.82 278.25 Td (, which related to distributions on the Company) Tj ET Q q 0 0 0 rg BT 486.12 278.25 Td (s common stock, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.25 Td (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 300.50 266.25 Td (July 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.67 266.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.77 266.25 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.94 266.25 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 248.25 Td (Distributions ) Tj ET Q q 0 0 0 rg BT 107.57 248.25 Td (Authorized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 230.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 230.25 Td (July 16, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.39 230.25 Td (, the Company) Tj ET Q q 0 0 0 rg BT 201.77 230.25 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 49.50 218.25 Td (of the Company) Tj ET Q q 0 0 0 rg BT 116.71 218.25 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 373.87 218.25 Td (August 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.26 218.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.81 218.25 Td (August 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.21 218.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (which the Company expects to pay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.52 206.25 Td (September 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.79 206.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.29 206.25 Td (On ) Tj ET Q q 0 0 0 rg BT 289.46 206.25 Td (August 6, 2018,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.35 206.25 Td ( the Company) Tj ET Q q 0 0 0 rg BT 412.23 206.25 Td (s board of directors authorized cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (distributions on the outstanding shares of all classes of the Company) Tj ET Q q 0 0 0 rg BT 326.68 194.25 Td (s common stock based on daily record dates for the period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.25 Td (from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.44 182.25 Td (September 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.70 182.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.81 182.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.07 182.25 Td (, which the Company expects to pay in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.60 182.25 Td ( October 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.80 182.25 Td (, and the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.25 Td (October 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.21 170.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.32 170.25 Td (October 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.02 170.25 Td (, which the Company expects to pay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.04 170.25 Td (November 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.75 170.25 Td (. Investors may choose to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.25 Td (receive cash distributions or purchase additional shares through the Company) Tj ET Q q 0 0 0 rg BT 362.47 158.25 Td (s distribution reinvestment plan. Distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.25 Td (for these periods will 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 487.67 146.25 Td ($0.00144493) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.17 146.25 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.25 Td (share per day) Tj ET Q q 0 0 0 rg BT 102.16 134.25 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 (KBS Growth & 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 KBS Growth ) 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.86 437.10 Td (, we owned four of) Tj ET Q q 0 0 0 rg BT 410.49 437.10 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.88 161.10 Td ( have been funded in part with debt financing, including advances from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 149.10 Td (advisor) Tj ET Q q 0 0 0 rg BT 119.04 149.10 Td (, and cash resulting from a waiver of asset management fees by our advisor) Tj ET Q q 0 0 0 rg BT 419.50 149.10 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 72.00 110.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 110.10 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 90.00 98.10 Td (management fee for the fourth quarter of 2017 through the second quarter of 2018. If our advisor determines to no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 86.10 Td (longer waive or defer certain fees owed to them, our ability to fund our operations and to fund our distributions may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 74.10 Td (be adversely af) Tj ET Q q 0 0 0 rg BT 150.34 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 (December 31, 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.30 602.10 Td (, we had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.57 602.10 Td (464,125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.07 602.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.51 602.10 Td (15,689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.01 602.10 Td ( shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (of Class ) Tj ET Q q 0 0 0 rg BT 83.95 590.10 Td (A) Tj ET Q q 0 0 0 rg BT 90.62 590.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 134.05 590.10 Td (T) Tj ET Q q 0 0 0 rg BT 139.97 590.10 Td ( common stock under our distribution reinvestment plan, respectively) Tj ET Q q 0 0 0 rg BT 417.32 590.10 Td (, for aggregate gross of) Tj ET Q q 0 0 0 rg BT 509.60 590.10 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 ($4.5 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.65 512.10 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 (253,308) 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 ($2.2 ) 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 470.10 Td (, we had redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.73 470.10 Td (422,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.23 470.10 Td ( Class ) Tj ET Q q 0 0 0 rg BT 288.35 470.10 Td (A) Tj ET Q q 0 0 0 rg BT 295.02 470.10 Td ( shares for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.17 470.10 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.06 470.10 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.43 416.10 Td (, we owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.75 416.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.42 416.10 Td ( of) Tj ET Q q 0 0 0 rg BT 283.06 416.10 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 December 31, ) 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 December 31, 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 fluctuations in 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.28 662.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (we had raised approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.23 650.25 Td ($87.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.13 650.25 Td ( in gross of) Tj ET Q q 0 0 0 rg BT 265.67 650.25 Td (fering proceeds from the sale of shares of our common stock in our initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (private of) Tj ET Q q 0 0 0 rg BT 87.91 638.25 Td (fering, second private of) Tj ET Q q 0 0 0 rg BT 185.47 638.25 Td (fering and initial public of) Tj ET Q q 0 0 0 rg BT 290.26 638.25 Td (fering. ) Tj ET Q q 0 0 0 rg BT 321.46 638.25 Td (W) Tj ET Q q 0 0 0 rg BT 330.10 638.25 Td (e terminated our primary initial public of) Tj ET Q q 0 0 0 rg BT 493.75 638.25 Td (fering ef) Tj ET Q q 0 0 0 rg BT 527.72 638.25 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (June 30, 2017 and launched a private of) Tj ET Q q 0 0 0 rg BT 208.71 626.25 Td (fering solely to accredited investors pursuant to Rule 506\(c\) of Regulation D of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (Securities ) Tj ET Q q 0 0 0 rg BT 90.88 614.25 Td (Act on October 3, 2017. ) Tj ET Q q 0 0 0 rg BT 189.85 614.25 Td (W) Tj ET Q q 0 0 0 rg BT 198.48 614.25 Td (e continue to of) Tj ET Q q 0 0 0 rg BT 260.78 614.25 Td (fer shares of common stock under our publicly registered distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 458.25 Td (, we owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.09 458.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.75 458.25 Td ( of) Tj ET Q q 0 0 0 rg BT 229.40 458.25 Td (fice properties that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.80 458.25 Td (97%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.13 458.25 Td ( occupied. ) Tj ET Q q 0 0 0 rg BT 393.04 458.25 Td (W) Tj ET Q q 0 0 0 rg BT 401.68 458.25 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 (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.08 434.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.91 434.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.74 434.25 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.12 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 73.50 704.10 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 71.50 638.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 638.10 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 49.50 626.10 Td (providing certain services to us. ) Tj ET Q q 0 0 0 rg BT 181.79 626.10 Td (Through ) Tj ET Q q 0 0 0 rg BT 218.17 626.10 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 49.50 614.10 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 527.17 614.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 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 49.50 590.10 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 403.69 590.10 Td (The cost of our real property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (investments is calculated as the amount paid or allocated to acquire the real property) Tj ET Q q 0 0 0 rg BT 386.78 578.10 Td (, plus budgeted capital improvement costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 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 49.50 554.10 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 515.20 554.10 Td (. In the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 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 49.50 530.10 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 49.50 518.10 Td (payment of asset management fees related to the periods from October 2017 through June 2018. Our advisor) Tj ET Q q 0 0 0 rg BT 486.97 518.10 Td () Tj ET Q q 0 0 0 rg BT 489.75 518.10 Td (s waiver and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 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 49.50 494.10 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 49.50 482.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 97.90 482.10 Td (fected.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 463.50 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 463.50 Td (e also pay fees to KBS Management Group, LLC \(the Co-Manager\), an af) Tj ET Q q 0 0 0 rg BT 385.41 463.50 Td (filiate of our advisor) Tj ET Q q 0 0 0 rg BT 466.93 463.50 Td (, pursuant to property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.50 Td (management agreements with the Co-Manager) Tj ET Q q 0 0 0 rg BT 236.25 451.50 Td (, for certain property management services at our properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 433.50 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 433.50 Td (e elected to be taxed as a REIT) Tj ET Q q 0 0 0 rg BT 206.06 433.50 Td ( and to operate as a REIT) Tj ET Q q 0 0 0 rg BT 307.51 433.50 Td ( beginning with our taxable year ended December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 551.97 433.50 Td (T) Tj ET Q q 0 0 0 rg BT 557.38 433.50 Td (o ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.50 Td (maintain our qualification as a REIT) Tj ET Q q 0 0 0 rg BT 195.10 421.50 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 49.50 409.50 Td (90% of our REIT) Tj ET Q q 0 0 0 rg BT 119.03 409.50 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 49.50 397.50 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 457.55 397.50 Td ( status depending on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.50 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 469.46 385.50 Td (ficient available cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.50 Td (flow) Tj ET Q q 0 0 0 rg BT 67.18 373.50 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 49.50 361.50 Td (basis. ) Tj ET Q q 0 0 0 rg BT 74.32 361.50 Td (W) Tj ET Q q 0 0 0 rg BT 82.96 361.50 Td (e have not established a minimum distribution level.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 343.50 Td (Under our charter) Tj ET Q q 0 0 0 rg BT 144.17 343.50 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 49.50 331.50 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 523.92 331.50 Td (, unless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.50 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 49.50 307.50 Td (Operating expenses for the four fiscal quarters ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.86 307.50 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.69 307.50 Td ( did not exceed the charter) Tj ET Q q 0 0 0 rg BT 425.27 307.50 Td (-imposed limitation. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 289.50 Td (Cash Flows from Operating ) Tj ET Q q 0 0 0 rg BT 166.93 289.50 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 274.50 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 274.50 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 274.50 Td (, we owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.09 274.50 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.75 274.50 Td ( of) Tj ET Q q 0 0 0 rg BT 229.40 274.50 Td (fice properties. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.92 274.50 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.59 274.50 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.42 274.50 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.25 274.50 Td (, net cash provided by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.50 Td (operating activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.41 262.50 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.31 262.50 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 427.73 262.50 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.62 262.50 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.45 262.50 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.12 262.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.50 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 250.50 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 250.50 Td (. ) Tj ET Q q 0 0 0 rg BT 170.97 250.50 Td (W) Tj ET Q q 0 0 0 rg BT 179.61 250.50 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 49.50 238.50 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 49.50 220.50 Td (Cash Flows from Investing ) Tj ET Q q 0 0 0 rg BT 163.60 220.50 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 205.50 Td (Net cash used in investing activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.63 205.50 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.52 205.50 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.90 205.50 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.57 205.50 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.39 205.50 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.22 205.50 Td ( and consisted of cash used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.50 Td (for improvements to real estate.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 175.50 Td (Cash Flows from Financing ) Tj ET Q q 0 0 0 rg BT 168.61 175.50 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 160.50 Td ( During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.05 160.50 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.72 160.50 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.54 160.50 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.37 160.50 Td (, net cash provided by financing activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.82 160.50 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.71 160.50 Td ( and consisted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.50 Td (primarily of the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 130.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 130.50 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 546.10 130.50 Td (fset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 118.50 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 72.00 103.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 103.50 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 88.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 88.50 Td ($1.9 million of net cash provided by of) Tj ET Q q 0 0 0 rg BT 245.90 88.50 Td (fering proceeds related to our second private of) Tj ET Q q 0 0 0 rg BT 434.81 88.50 Td (fering; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 73.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 73.50 Td ($1.3 million of net cash distributions, after giving ef) Tj ET Q q 0 0 0 rg BT 298.67 73.50 Td (fect to distributions reinvested by stockholders of $1.0 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.77 686.25 Td ( \(in thousands\).) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 633.75 196.00 -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 (14,704) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 348.80 610.00 Td (2,324) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.80 610.00 Td (8,819) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 610.00 Td (3,41) Tj ET Q q 0 0 0 rg BT 490.80 610.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 610.00 Td (150) 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 (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 524.82 569.05 Td ( \(consisting ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 559.45 Td (of the contractual interest rate\). ) Tj ET Q q 0 0 0 rg BT 153.53 559.45 Td (W) Tj ET Q q 0 0 0 rg BT 160.44 559.45 Td (e incurred interest expense of $2.2 million, excluding amortization of deferred financing costs totaling ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.67 559.45 Td ($0.2 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 528.78 559.45 Td (, debt ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 549.85 Td (refinancing costs of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 114.59 549.85 Td ($0.2 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 153.70 549.85 Td ( and unrealized gains on derivative instruments of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 315.43 549.85 Td ($0.8 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.55 549.85 Td ( during the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.21 549.85 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.54 549.85 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.20 549.85 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.87 549.85 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.72 444.85 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 (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.72 420.85 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 (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.54 408.85 Td ( and owned four of) Tj ET Q q 0 0 0 rg BT 406.44 408.85 Td (fice properties as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.07 408.85 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.90 408.85 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 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.83 396.85 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.82 396.85 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.26 396.85 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.93 396.85 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.75 396.85 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.58 396.85 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.02 396.85 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.02 396.85 Td ( are not directly comparable due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 384.85 Td (to our acquisition activity) Tj ET Q q 0 0 0 rg BT 151.33 384.85 Td (. In general, we expect that our income and expenses related to our portfolio will increase in future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 372.85 Td (periods 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 285.76953125 353.5169921875 l s q 0 0 0 rg BT 229.39 354.85 Td (June 30, 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 285.76953125 353.5169921875 m 331.0380859375 353.5169921875 l s q 0 0 0 rg BT 285.77 354.85 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 331.0380859375 353.5169921875 m 351.2138671875 353.5169921875 l s q 0 0 0 rg BT 331.04 354.85 Td (thr) Tj ET Q q 0 0 0 rg BT 342.34 354.85 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 351.2138671875 353.5169921875 m 411.482421875 353.5169921875 l s q 0 0 0 rg BT 351.21 354.85 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 411.482421875 353.5169921875 m 467.859375 353.5169921875 l s q 0 0 0 rg BT 411.48 354.85 Td (June 30, 2017) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 467.86 354.85 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 251.15 323.58 Td (Ended June 30,) 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 (Due to Pr) 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 ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 254.75 295.60 Td (4,825) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 282.50 295.60 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 300.75 295.60 Td (3,290) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.50 295.60 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 349.75 295.60 Td (1,535) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 295.60 Td (47) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 295.60 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.50 295.60 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 295.60 Td (1,523) 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 (12) 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 260.75 281.60 Td (867) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.75 281.60 Td (877) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.10 281.60 Td (\(10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 281.60 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.45 281.60 Td (\(1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.15 281.60 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.80 281.60 Td (8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.10 281.60 Td (\(18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 281.60 Td (\)) 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 (37) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 267.60 Td (20) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 267.60 Td (17) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 267.60 Td (85) 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 (20) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.10 267.60 Td (\(3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 267.60 Td (\)) 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 254.75 253.60 Td (1,336) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.75 253.60 Td (878) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 253.60 Td (458) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 253.60 Td (52) 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 (324) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 253.60 Td (134) 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 (31) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 239.60 Td (1) Tj ET Q q 0 0 0 rg BT 363.80 239.60 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 239.60 Td (35) 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 (1) 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 (679) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.75 225.60 Td (513) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 225.60 Td (166) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 225.60 Td (32) 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 (259) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.10 225.60 Td (\(93) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 225.60 Td (\)) 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 (462) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 211.60 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 211.60 Td (462) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.15 211.60 Td (100) 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 (109) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 211.60 Td (353) 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 (362) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.75 197.60 Td (422) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.10 197.60 Td (\(60) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 197.60 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.45 197.60 Td (\(14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.15 197.60 Td (\)%) 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 (2,784) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 300.75 183.60 Td (1,822) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 183.60 Td (962) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 183.60 Td (53) 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 470.80 183.60 Td (1,092) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.10 183.60 Td (\(130) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 183.60 Td (\)) 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 (797) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.75 169.60 Td (757) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 169.60 Td (40) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.15 169.60 Td (5) 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 (125) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.10 169.60 Td (\(85) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 169.60 Td (\)) 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 (8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 155.60 Td (18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.10 155.60 Td (\(10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 155.60 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.45 155.60 Td (\(56) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.15 155.60 Td (\)%) 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 (\(10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 155.60 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 141.60 Td (Loss from extinguishment of debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 264.80 141.60 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.10 141.60 Td (\(206) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.80 141.60 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 141.60 Td (206) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 395.45 141.60 Td (\(100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.15 141.60 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.80 141.60 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 141.60 Td (206) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.85 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 116.88 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.56 113.25 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 57.44 113.25 Td (Represents the dollar amount increase for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 204.27 113.25 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 220.26 113.25 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.92 113.25 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.59 113.25 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.12 113.25 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 385.11 113.25 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.77 113.25 Td (June 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.43 113.25 Td ( related to a real estate ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 103.65 Td (investment acquired on or after ) Tj ET Q q 0 0 0 rg BT 151.02 103.65 Td (April 1, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 177.91 103.65 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 193.91 103.65 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 94.67 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 91.05 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 91.05 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 254.55 91.05 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.21 91.05 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.87 91.05 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.41 91.05 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 419.39 91.05 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.05 91.05 Td (June 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 512.72 91.05 Td ( with respect to ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 81.45 Td (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 $4.2 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 (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.38 704.10 Td ( to $5.7 ) 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.41 692.10 Td (, primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 498.66 692.10 Td (W) Tj ET Q q 0 0 0 rg BT 507.29 692.10 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 ($0.9 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 (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.14 650.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 638.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.77 638.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.75 638.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.58 638.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.41 638.10 Td (, primarily as a result of the growth in our real estate portfolio; $0.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (million and $0.1 million of these costs relate to legal fees incurred in connection with a water intrusion damage claim at ) Tj ET Q q 0 0 0 rg BT 531.40 626.10 Td (V) Tj ET Q q 0 0 0 rg BT 537.33 626.10 Td (on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (Karman ) Tj ET Q q 0 0 0 rg BT 84.03 614.10 Td (T) Tj ET Q q 0 0 0 rg BT 89.44 614.10 Td (ech Center) Tj ET Q q 0 0 0 rg BT 131.92 614.10 Td (. ) Tj ET Q q 0 0 0 rg BT 136.74 614.10 Td (W) Tj ET Q q 0 0 0 rg BT 145.37 614.10 Td (e expect operating, maintenance, and management costs to increase in future periods to the extent we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (make additional acquisitions of real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 584.10 Td (Property management fees and expenses to af) Tj ET Q q 0 0 0 rg BT 256.03 584.10 Td (filiate increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.04 584.10 Td ($31,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.54 584.10 Td ( for the the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.64 584.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.62 584.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.45 584.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.28 584.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.78 572.10 Td ($42,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.28 572.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.66 572.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.64 572.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.47 572.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.30 572.10 Td (, primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 512.54 572.10 Td (W) Tj ET Q q 0 0 0 rg BT 521.18 572.10 Td (e expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (property management fees 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 73.50 542.10 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 (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.49 542.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.27 542.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.16 542.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 530.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.20 530.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.03 530.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.86 530.10 Td (, primarily as a result of the growth in our real estate portfolio, partially of) Tj ET Q q 0 0 0 rg BT 497.25 530.10 Td (fset by a $0.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (million decrease in property tax due to the reassessment of property value at ) Tj ET Q q 0 0 0 rg BT 356.72 518.10 Td (The Of) Tj ET Q q 0 0 0 rg BT 385.13 518.10 Td (fices at Greenhouse. ) Tj ET Q q 0 0 0 rg BT 471.31 518.10 Td (W) Tj ET Q q 0 0 0 rg BT 479.94 518.10 Td (e expect real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 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 73.50 488.10 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 188.28 488.10 Td (filiate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.97 488.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.96 488.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.78 488.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.61 488.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.17 488.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.06 488.10 Td (. ) Tj ET Q q 0 0 0 rg BT 456.00 488.10 Td (Asset management fees to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 476.10 Td (filiate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.79 476.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.77 476.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.60 476.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.43 476.10 Td ( was $0.2 million, all of which were waived by our advisor) Tj ET Q q 0 0 0 rg BT 483.66 476.10 Td (. ) Tj ET Q q 0 0 0 rg BT 490.97 476.10 Td (The overall ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (increase in asset management fees before factoring any fees waived was due to the growth in our real estate portfolio as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (an amendment to our advisory agreement on ) Tj ET Q q 0 0 0 rg BT 229.72 452.10 Td (August 9, 2017, which amended the terms of the asset management fees. ) Tj ET Q q 0 0 0 rg BT 525.57 452.10 Td (W) Tj ET Q q 0 0 0 rg BT 534.21 452.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (expect asset 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 73.50 422.10 Td (Depreciation and amortization increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.81 422.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 422.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.08 422.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.06 422.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.89 422.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.72 422.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 422.10 Td ($2.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.39 422.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 410.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.20 410.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.03 410.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.86 410.10 Td (, primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 453.10 410.10 Td (W) Tj ET Q q 0 0 0 rg BT 461.74 410.10 Td (e expect depreciation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 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 73.50 380.10 Td (Interest expense remained consistent at $0.8 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.88 380.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.86 380.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.69 380.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.52 380.10 Td ( and 2017. Included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (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 313.29 368.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.19 368.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.62 368.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.52 368.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.89 368.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.88 368.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 356.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.77 356.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.77 356.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 197.43 356.10 Td (. Included in interest expense during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.16 356.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.14 356.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.97 356.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.80 356.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.35 356.10 Td ($0.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 344.10 Td ( of unrealized gains on interest rate swaps. ) Tj ET Q q 0 0 0 rg BT 250.65 344.10 Td (W) Tj ET Q q 0 0 0 rg BT 259.29 344.10 Td (e expect interest expense to increase in the future as a result of anticipated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (borrowings 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 73.50 314.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 314.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.03 314.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.86 314.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.69 314.10 Td (, we recognized a loss from extinguishment of debt of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.69 314.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.58 314.10 Td ( related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (to the write-of) Tj ET Q q 0 0 0 rg BT 106.52 302.10 Td (f of unamortized deferred financing costs as a result of the pay-of) Tj ET Q q 0 0 0 rg BT 368.18 302.10 Td (f of the ) Tj ET Q q 0 0 0 rg BT 399.38 302.10 Td (V) Tj ET Q q 0 0 0 rg BT 405.31 302.10 Td (on Karman ) Tj ET Q q 0 0 0 rg BT 452.34 302.10 Td (T) Tj ET Q q 0 0 0 rg BT 457.75 302.10 Td (ech Center Mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (Loan on May 9, 2017.) 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) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (30) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 72 702.7669921875 m 148.9482421875 702.7669921875 l s q 0 0 0 rg BT 72.00 704.10 Td (Comparison of the ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 148.9482421875 702.7669921875 m 160.056640625 702.7669921875 l s q 0 0 0 rg BT 148.95 704.10 Td (six) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 160.056640625 702.7669921875 m 220.3251953125 702.7669921875 l s q 0 0 0 rg BT 160.06 704.10 Td ( months ended ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 220.3251953125 702.7669921875 m 276.7021484375 702.7669921875 l s q 0 0 0 rg BT 220.33 704.10 Td (June 30, 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 276.7021484375 702.7669921875 m 321.970703125 702.7669921875 l s q 0 0 0 rg BT 276.70 704.10 Td ( versus the ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 321.970703125 702.7669921875 m 333.0791015625 702.7669921875 l s q 0 0 0 rg BT 321.97 704.10 Td (six) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 333.0791015625 702.7669921875 m 393.34765625 702.7669921875 l s q 0 0 0 rg BT 333.08 704.10 Td ( months ended ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 393.34765625 702.7669921875 m 449.724609375 702.7669921875 l s q 0 0 0 rg BT 393.35 704.10 Td (June 30, 2017) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 449.72 704.10 Td ( ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 654.60 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.00 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.00 654.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 654.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 654.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 654.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 654.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 654.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 626.60 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.00 626.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.00 626.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 626.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 626.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 626.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 626.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 626.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 626.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 626.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 626.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 626.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 626.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 598.60 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.00 598.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.00 598.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 598.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 598.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 598.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 598.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 598.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 598.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 598.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 598.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 598.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 598.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 570.60 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.00 570.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.00 570.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 570.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 570.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 570.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 570.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 570.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 570.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 570.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 570.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 570.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 570.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 542.60 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.00 542.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.00 542.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 542.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 542.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 542.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 542.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 542.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 542.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 542.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 542.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 542.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 542.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 514.60 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.00 514.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.00 514.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 514.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 514.60 42.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 514.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 514.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 371.00 514.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 514.60 45.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 514.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 514.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 514.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 514.60 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 234 668.6 m 276 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276 668.6 m 280 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 668.6 m 322 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 234 668.6 m 276 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 234 654.6 m 276 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276 668.6 m 280 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 668.6 m 322 668.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 654.6 m 322 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 654.6 m 371 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 654.6 m 420 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 654.6 m 492 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 654.6 m 562 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 234 654.6 m 276 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 654.6 m 322 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 654.6 m 371 654.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 672.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 244.55 680.83 Td (For) Tj ET Q q 0 0 0 rg BT 256.92 680.83 Td ( the Six Months) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 251.15 672.83 Td (Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.60 666.83 Td (Incr) Tj ET Q q 0 0 0 rg BT 348.12 666.83 Td (ease) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.05 658.83 Td (\(Decr) Tj ET Q q 0 0 0 rg BT 349.00 658.83 Td (ease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.15 666.83 Td (Per) Tj ET Q q 0 0 0 rg BT 390.07 666.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.85 658.83 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.15 666.83 Td ($ Change Due to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.90 658.83 Td (Acquisition ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 475.02 662.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.35 682.68 Td ($ Change ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 501.00 674.68 Td (Due to Pr) Tj ET Q q 0 0 0 rg BT 533.73 674.68 Td (operty ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.70 666.68 Td (Held ) Tj ET Q q 0 0 0 rg BT 517.00 666.68 Td (Thr) Tj ET Q q 0 0 0 rg BT 530.19 666.68 Td (oughout ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.35 658.68 Td (Both Periods ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 548.57 662.31 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 658.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 246.50 658.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 292.50 658.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 644.85 Td (Rental income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 236.50 644.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 254.75 644.85 Td (9,239) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 282.50 644.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 300.75 644.85 Td (6,526) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.50 644.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 349.75 644.85 Td (2,713) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 644.85 Td (42) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 644.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.50 644.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 644.85 Td (2,663) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 644.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.80 644.85 Td (50) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 630.85 Td (T) Tj ET Q q 0 0 0 rg BT 57.11 630.85 Td (enant reimbursements) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 254.75 630.85 Td (1,995) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 300.75 630.85 Td (1,656) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 630.85 Td (339) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 630.85 Td (20) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 630.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 630.85 Td (207) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 630.85 Td (132) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 616.85 Td (Other operating income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 264.80 616.85 Td (76) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 616.85 Td (38) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 616.85 Td (38) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.15 616.85 Td (100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 616.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.80 616.85 Td (41) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.10 616.85 Td (\(3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 616.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 602.85 Td (Operating, maintenance and management costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 254.75 602.85 Td (2,205) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 300.75 602.85 Td (1,623) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 602.85 Td (582) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 602.85 Td (36) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 602.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 602.85 Td (470) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 602.85 Td (1) Tj ET Q q 0 0 0 rg BT 550.80 602.85 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 588.85 Td (Property management fees and expenses to af) Tj ET Q q 0 0 0 rg BT 198.60 588.85 Td (filiate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 264.80 588.85 Td (84) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 588.85 Td (60) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 588.85 Td (24) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 588.85 Td (40) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 588.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.80 588.85 Td (20) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 588.85 Td (4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 574.85 Td (Real estate taxes and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 254.75 574.85 Td (1,430) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.75 574.85 Td (970) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 574.85 Td (460) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 574.85 Td (47) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 574.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 574.85 Td (495) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.10 574.85 Td (\(35) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 574.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 560.85 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 144.39 560.85 Td (filiate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 260.75 560.85 Td (918) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.75 560.85 Td (214) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 560.85 Td (704) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.15 560.85 Td (329) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 560.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 560.85 Td (217) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 560.85 Td (487) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 546.85 Td (General and administrative expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 260.75 546.85 Td (755) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.75 546.85 Td (763) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.10 546.85 Td (\(8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 546.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.45 546.85 Td (\(1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.15 546.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.70 546.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.70 546.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 532.85 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 254.75 532.85 Td (5,093) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 300.75 532.85 Td (3,540) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 349.75 532.85 Td (1,553) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 532.85 Td (44) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 532.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 532.85 Td (1,694) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.10 532.85 Td (\(141) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 532.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 518.85 Td (Interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 254.75 518.85 Td (1,768) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 300.75 518.85 Td (1,500) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 518.85 Td (268) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.15 518.85 Td (18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 518.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 518.85 Td (248) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.80 518.85 Td (20) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 504.85 Td (Interest and other income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 264.80 504.85 Td (13) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.80 504.85 Td (35) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.10 504.85 Td (\(22) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 504.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.45 504.85 Td (\(63) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.15 504.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.80 504.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.10 504.85 Td (\(22) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.80 504.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 490.85 Td (Loss from extinguishment of debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 264.80 490.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.10 490.85 Td (\(206) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.80 490.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 490.85 Td (206) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 395.45 490.85 Td (\(100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.15 490.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.80 490.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 490.85 Td (206) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 466.13 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.56 462.50 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 57.44 462.50 Td (Represents the dollar amount increase for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 204.27 462.50 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 213.61 462.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 262.27 462.50 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.93 462.50 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.47 462.50 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.80 462.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.46 462.50 Td (June 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.13 462.50 Td ( related to a real estate ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 452.90 Td (investment acquired on or after January 1, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.34 452.90 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.34 452.90 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 443.93 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 440.30 Td (Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 238.56 440.30 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 247.89 440.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 296.55 440.30 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.22 440.30 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.75 440.30 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.09 440.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.75 440.30 Td (June 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.41 440.30 Td ( with respect to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 430.70 Td (real estate investment owned by us throughout both periods presented.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 406.70 Td (Rental income and tenant reimbursements increased from $8.2 million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.74 406.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.41 406.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.24 406.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.07 406.70 Td ( to $1) Tj ET Q q 0 0 0 rg BT 537.47 406.70 Td (1.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.70 Td (million for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.77 394.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.44 394.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.26 394.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.09 394.70 Td (, primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 490.34 394.70 Td (W) Tj ET Q q 0 0 0 rg BT 498.98 394.70 Td (e expect rental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.70 Td (income and tenant reimbursements 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 49.50 370.70 Td (investments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 352.70 Td (Operating, maintenance, and management costs increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.23 352.70 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.12 352.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.50 352.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.17 352.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.00 352.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.83 352.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.70 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 340.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.77 340.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.44 340.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.26 340.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.09 340.70 Td (, primarily as a result of the growth in our real estate portfolio; $0.5 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.70 Td (and $0.1 million of these costs relate to legal fees incurred in connection with a water intrusion damage claim at ) Tj ET Q q 0 0 0 rg BT 500.01 328.70 Td (V) Tj ET Q q 0 0 0 rg BT 505.94 328.70 Td (on Karman ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 316.70 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 316.70 Td (ech Center) Tj ET Q q 0 0 0 rg BT 97.39 316.70 Td (. ) Tj ET Q q 0 0 0 rg BT 102.21 316.70 Td (W) Tj ET Q q 0 0 0 rg BT 110.85 316.70 Td (e expect operating, maintenance, and management costs to increase in future periods to the extent we make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.70 Td (additional acquisitions of real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 286.70 Td (Property management fees and expenses to af) Tj ET Q q 0 0 0 rg BT 256.03 286.70 Td (filiate increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.04 286.70 Td ($60,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.54 286.70 Td ( for the the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.64 286.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.31 286.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.13 286.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.96 286.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.70 Td ($84,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 274.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.38 274.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.05 274.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.87 274.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.70 274.70 Td (, primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 493.95 274.70 Td (W) Tj ET Q q 0 0 0 rg BT 502.59 274.70 Td (e expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.70 Td (property management fees 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 73.50 244.70 Td (Real estate taxes and insurance increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.58 244.70 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.47 244.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.85 244.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.52 244.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.35 244.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.18 244.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.95 244.70 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.85 244.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.17 232.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 232.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.83 232.70 Td (, primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 432.57 232.70 Td (W) Tj ET Q q 0 0 0 rg BT 441.21 232.70 Td (e expect real estate taxes and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 220.70 Td (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 73.50 202.70 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 188.28 202.70 Td (filiate increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.29 202.70 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.18 202.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.56 202.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.23 202.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.05 202.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.88 202.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.66 202.70 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.55 202.70 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.70 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 190.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.89 190.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.71 190.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.54 190.70 Td (. ) Tj ET Q q 0 0 0 rg BT 199.49 190.70 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 314.27 190.70 Td (filiate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.96 190.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.95 190.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.77 190.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.60 190.70 Td ( was $0.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.70 Td (million, all of which were waived by our advisor) Tj ET Q q 0 0 0 rg BT 244.18 178.70 Td (. ) Tj ET Q q 0 0 0 rg BT 251.50 178.70 Td (The overall increase in asset management fees before factoring any fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.70 Td (waived was due to the growth in our real estate portfolio as well as an amendment to our advisory agreement on ) Tj ET Q q 0 0 0 rg BT 499.65 166.70 Td (August 9, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.70 Td (2017, which amended the terms of the asset management fees. ) Tj ET Q q 0 0 0 rg BT 303.96 154.70 Td (W) Tj ET Q q 0 0 0 rg BT 312.60 154.70 Td (e expect asset management fees to increase in future periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.70 Td (to the extent we make additional real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 124.70 Td (Depreciation and amortization increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.81 124.70 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 124.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.08 124.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.75 124.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.57 124.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.40 124.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.18 124.70 Td ($5.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.07 124.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.17 112.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 112.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.83 112.70 Td (, primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 430.07 112.70 Td (W) Tj ET Q q 0 0 0 rg BT 438.71 112.70 Td (e expect depreciation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.70 Td (amortization to increase in future periods to the extent we make additional acquisitions of real estate investments.) 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) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (Interest expense increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.88 704.10 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.78 704.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.15 704.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.82 704.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.65 704.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.48 704.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.26 704.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 704.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.53 704.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.20 704.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 692.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 692.10 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 448.26 692.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.16 692.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.59 692.10 Td ($0.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 680.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.77 680.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.44 680.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.26 680.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.09 680.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.53 680.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.53 680.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 330.19 680.10 Td (. Included in interest expense during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.92 680.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.59 680.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 668.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 668.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.26 668.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.15 668.10 Td ( of unrealized gains on interest rate swaps and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.03 668.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.92 668.10 Td ( of debt refinancing costs. ) Tj ET Q q 0 0 0 rg BT 542.82 668.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (increase in interest expense is primarily due to increased borrowings in connection with the acquisition of real estate, resulting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (in an increase in the average loan balance. ) Tj ET Q q 0 0 0 rg BT 220.62 644.10 Td (W) Tj ET Q q 0 0 0 rg BT 229.26 644.10 Td (e expect interest expense to increase in the future as a result of anticipated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (borrowings 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 73.50 614.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 614.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.72 614.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.54 614.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.37 614.10 Td (, we recognized a loss from extinguishment of debt of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.37 614.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.26 614.10 Td ( related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (the write-of) Tj ET Q q 0 0 0 rg BT 96.24 602.10 Td (f of unamortized deferred financing costs as a result of the pay-of) Tj ET Q q 0 0 0 rg BT 357.90 602.10 Td (f of the ) Tj ET Q q 0 0 0 rg BT 389.10 602.10 Td (V) Tj ET Q q 0 0 0 rg BT 395.03 602.10 Td (on Karman ) Tj ET Q q 0 0 0 rg BT 442.06 602.10 Td (T) Tj ET Q q 0 0 0 rg BT 447.47 602.10 Td (ech Center Mortgage Loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (on May 9, 2017.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 45.00 572.10 Td (Funds fr) Tj ET Q q 0 0 0 rg BT 81.77 572.10 Td (om Operations and Modified Funds fr) Tj ET Q q 0 0 0 rg BT 244.66 572.10 Td (om Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 554.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 554.10 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 505.52 554.10 Td (. ) Tj ET Q q 0 0 0 rg BT 512.84 554.10 Td (W) Tj ET Q q 0 0 0 rg BT 521.47 554.10 Td (e compute ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 542.10 Td (FFO in accordance with the current National ) Tj ET Q q 0 0 0 rg BT 225.78 542.10 Td (Association of Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 380.83 542.10 Td (T) Tj ET Q q 0 0 0 rg BT 386.59 542.10 Td (rusts \(NAREIT\) definition. FFO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 530.10 Td (represents net income, excluding gains and losses from sales of operating real estate assets \(which can vary among owners of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 518.10 Td (identical assets in similar conditions based on historical cost accounting and useful-life estimates\), impairment losses on real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 506.10 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 45.00 494.10 Td (ventures. ) Tj ET Q q 0 0 0 rg BT 86.20 494.10 Td (W) Tj ET Q q 0 0 0 rg BT 94.83 494.10 Td (e believe FFO facilitates comparisons of operating performance between periods and among other REIT) Tj ET Q q 0 0 0 rg BT 511.49 494.10 Td (s. However) Tj ET Q q 0 0 0 rg BT 559.14 494.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 482.10 Td (our computation of FFO may not be comparable to other REIT) Tj ET Q q 0 0 0 rg BT 295.91 482.10 Td (s that do not define FFO in accordance with the NAREIT) Tj ET Q q 0 0 0 rg BT 525.12 482.10 Td ( definition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 470.10 Td (or that interpret the current NAREIT) Tj ET Q q 0 0 0 rg BT 191.71 470.10 Td ( definition dif) Tj ET Q q 0 0 0 rg BT 246.52 470.10 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 45.00 458.10 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 45.00 446.10 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 45.00 434.10 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 45.00 422.10 Td (that use historical cost accounting to be insuf) Tj ET Q q 0 0 0 rg BT 225.05 422.10 Td (ficient by themselves. ) Tj ET Q q 0 0 0 rg BT 316.98 422.10 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 45.00 410.10 Td (required GAAP) Tj ET Q q 0 0 0 rg BT 107.67 410.10 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 45.00 398.10 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 45.00 386.10 Td (activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 368.10 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 45.00 356.10 Td (included in the calculation of FFO. ) Tj ET Q q 0 0 0 rg BT 186.92 356.10 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 45.00 344.10 Td (well as our dividend sustainability) Tj ET Q q 0 0 0 rg BT 181.55 344.10 Td (. MFFO excludes from FFO: acquisition fees and expenses \(to the extent that such fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 332.10 Td (expenses have been recorded as operating expenses\); adjustments related to contingent purchase price obligations; amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 320.10 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 45.00 308.10 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 45.00 296.10 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 45.00 284.10 Td (in net income for the extinguishment or sale of debt or hedges. ) Tj ET Q q 0 0 0 rg BT 300.31 284.10 Td (W) Tj ET Q q 0 0 0 rg BT 308.95 284.10 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 45.00 272.10 Td (included in the practice guideline issued by the IP) Tj ET Q q 0 0 0 rg BT 243.47 272.10 Td (A) Tj ET Q q 0 0 0 rg BT 250.14 272.10 Td ( in November 2010 as interpreted by management. Our computation of MFFO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 260.10 Td (may not be comparable to other REIT) Tj ET Q q 0 0 0 rg BT 195.92 260.10 Td (s that do not compute MFFO in accordance with the current IP) Tj ET Q q 0 0 0 rg BT 445.78 260.10 Td (A) Tj ET Q q 0 0 0 rg BT 452.45 260.10 Td ( definition or that interpret ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 248.10 Td (the current IP) Tj ET Q q 0 0 0 rg BT 98.51 248.10 Td (A) Tj ET Q q 0 0 0 rg BT 105.18 248.10 Td ( definition dif) Tj ET Q q 0 0 0 rg BT 159.99 248.10 Td (ferently than we do. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 230.10 Td (W) Tj ET Q q 0 0 0 rg BT 77.64 230.10 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 45.00 218.10 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 45.00 206.10 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 45.00 194.10 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 45.00 182.10 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 45.00 170.10 Td (defined by GAAP) Tj ET Q q 0 0 0 rg BT 116.10 170.10 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 45.00 158.10 Td (operating performance of our portfolio with other non-traded REIT) Tj ET Q q 0 0 0 rg BT 313.10 158.10 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 45.00 146.10 Td (acquisition periods and tar) Tj ET Q q 0 0 0 rg BT 150.63 146.10 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 538.43 146.10 Td (s, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 134.10 Td (we believe often used by analysts and investors for comparison purposes. ) 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 38.10 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 704.10 Td (FFO and MFFO are non-GAAP) Tj ET Q q 0 0 0 rg BT 196.41 704.10 Td ( financial measures and do not represent net income as defined by GAAP) Tj ET Q q 0 0 0 rg BT 488.55 704.10 Td (. Net income as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 692.10 Td (defined by GAAP) Tj ET Q q 0 0 0 rg BT 116.84 692.10 Td ( is the most relevant measure in determining our operating performance because FFO and MFFO include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 680.10 Td (adjustments that investors may deem subjective, such as adding back expenses such as depreciation and amortization and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 668.10 Td (other items described above. ) Tj ET Q q 0 0 0 rg BT 163.85 668.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 213.19 668.10 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 45.00 656.10 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 45.00 644.10 Td (activities determined in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 235.95 644.10 Td ( and should not be considered an indication of our liquidity) Tj ET Q q 0 0 0 rg BT 471.92 644.10 Td (. ) Tj ET Q q 0 0 0 rg BT 479.24 644.10 Td (W) Tj ET Q q 0 0 0 rg BT 487.88 644.10 Td (e believe FFO and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 632.10 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 424.38 632.10 Td (, are meaningful supplemental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 620.10 Td (performance measures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 602.10 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 45.00 590.10 Td (and below-market leases, unrealized gain on derivative instruments and loss from extinguishment of debt are the most significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 578.10 Td (adjustments for the periods presented. ) Tj ET Q q 0 0 0 rg BT 201.72 578.10 Td (W) Tj ET Q q 0 0 0 rg BT 210.36 578.10 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 67.50 560.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 560.10 Td (Adjustments for straight-line r) Tj ET Q q 0 0 0 rg BT 206.52 560.10 Td (ent. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.74 560.10 Td ( ) Tj ET Q q 0 0 0 rg BT 226.06 560.10 Td (These are adjustments to rental revenue as required by GAAP) Tj ET Q q 0 0 0 rg BT 473.10 560.10 Td ( to recognize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 548.10 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 435.18 548.10 Td (W) Tj ET Q q 0 0 0 rg BT 443.82 548.10 Td (e have excluded these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 536.10 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 85.50 524.10 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 85.50 512.10 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 67.50 497.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 497.10 Td (Amortization of above- and below-market leases.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.14 497.10 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 85.50 485.10 Td (lease related costs that are excluded from FFO, GAAP) Tj ET Q q 0 0 0 rg BT 303.12 485.10 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 85.50 473.10 Td (liabilities diminishes predictably over time and requires that these char) Tj ET Q q 0 0 0 rg BT 368.29 473.10 Td (ges be recognized currently in revenue. Since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 461.10 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 85.50 449.10 Td (that by excluding these char) Tj ET Q q 0 0 0 rg BT 197.50 449.10 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 85.50 437.10 Td (estate;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 422.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 422.10 Td (Unr) Tj ET Q q 0 0 0 rg BT 101.24 422.10 Td (ealized \(gains\) losses on derivative instruments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.44 422.10 Td ( ) Tj ET Q q 0 0 0 rg BT 298.26 422.10 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 85.50 410.10 Td (market adjustments on interest rate swaps. ) Tj ET Q q 0 0 0 rg BT 257.22 410.10 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 85.50 398.10 Td (non-cash adjustments recognized directly in earnings and are included in interest expense. ) Tj ET Q q 0 0 0 rg BT 450.75 398.10 Td (W) Tj ET Q q 0 0 0 rg BT 459.39 398.10 Td (e have excluded these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 386.10 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 85.50 374.10 Td (agreements; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 359.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 359.10 Td (Loss fr) Tj ET Q q 0 0 0 rg BT 112.64 359.10 Td (om extinguishment of debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.90 359.10 Td (. ) Tj ET Q q 0 0 0 rg BT 224.85 359.10 Td (A) Tj ET Q q 0 0 0 rg BT 231.52 359.10 Td ( loss from extinguishment of debt represents the dif) Tj ET Q q 0 0 0 rg BT 437.41 359.10 Td (ference between the carrying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 347.10 Td (value of any consideration transferred to the lender in return for the extinguishment of a debt and the net carrying value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 335.10 Td (of the debt at the time of settlement. ) Tj ET Q q 0 0 0 rg BT 234.72 335.10 Td (W) Tj ET Q q 0 0 0 rg BT 243.36 335.10 Td (e have excluded the loss from extinguishment of debt in our calculation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 323.10 Td (MFFO because these losses do not impact the current operating performance of our investments and do not provide an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 311.10 Td (indication of future operating performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 290.10 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 495.00 290.10 Td (, is presented in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 278.10 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 304.67 278.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.66 278.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.10 278.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.77 278.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.59 278.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.42 278.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.86 278.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.86 278.10 Td (, respectively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.00 266.10 Td (\(in thousands\). No conclusions or comparisons should be made from the presentation of these periods.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 224.60 226.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 224.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 224.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.50 224.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.50 224.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.50 224.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 224.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 224.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 224.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 196.60 226.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 196.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 196.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.50 196.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.50 196.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.50 196.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 196.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 196.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 196.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 168.60 226.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 168.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 168.60 70.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.50 168.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.50 168.60 70.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.50 168.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 168.60 70.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 168.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 168.60 70.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 45.50 133.60 226.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 133.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 133.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.50 133.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 349.50 133.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.50 133.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 133.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 133.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 133.60 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 275.5 238.60000000000002 m 345.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 238.60000000000002 m 349.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 238.60000000000002 m 419.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 238.60000000000002 m 493.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 238.60000000000002 m 497.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 238.60000000000002 m 567.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 238.60000000000002 m 345.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 224.60000000000002 m 345.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 238.60000000000002 m 419.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 224.60000000000002 m 419.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 238.60000000000002 m 493.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 224.60000000000002 m 493.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 238.60000000000002 m 567.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 224.60000000000002 m 567.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 224.60000000000002 m 345.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 224.60000000000002 m 419.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 224.60000000000002 m 493.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 224.60000000000002 m 567.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 182.60000000000002 m 345.5 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 182.60000000000002 m 419.5 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 182.60000000000002 m 493.5 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 182.60000000000002 m 567.5 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 119.60000000000002 m 345.5 119.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 106.60000000000002 m 345.5 106.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 104.60000000000002 m 345.5 104.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 119.60000000000002 m 419.5 119.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 106.60000000000002 m 419.5 106.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 104.60000000000002 m 419.5 104.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 119.60000000000002 m 493.5 119.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 106.60000000000002 m 493.5 106.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 104.60000000000002 m 493.5 104.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 119.60000000000002 m 567.5 119.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 106.60000000000002 m 567.5 106.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 104.60000000000002 m 567.5 104.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 281.95 242.83 Td (For) Tj ET Q q 0 0 0 rg BT 294.32 242.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 308.83 242.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 322.03 242.83 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.70 242.83 Td (For) Tj ET Q q 0 0 0 rg BT 447.07 242.83 Td ( the Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 302.00 228.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.00 228.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.00 228.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.00 228.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 214.85 Td (Net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 278.00 214.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 327.60 214.85 Td (\(725) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.30 214.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.00 214.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.60 214.85 Td (\(424) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.30 214.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.00 214.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.60 214.85 Td (\(930) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.30 214.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.00 214.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.60 214.90 Td (\(621) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 564.30 214.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.00 200.85 Td (Depreciation of real estate assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 330.30 200.85 Td (974) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.30 200.85 Td (626) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.30 200.85 Td (1,941) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 200.85 Td (1,247) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.00 186.85 Td (Amortization of lease-related costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 324.30 186.85 Td (1,810) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.30 186.85 Td (1,196) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.30 186.85 Td (3,152) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 186.85 Td (2,293) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 172.85 Td (FFO) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 324.30 172.85 Td (2,059) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.30 172.85 Td (1,398) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.30 172.85 Td (4,163) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 172.85 Td (2,919) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.00 159.85 Td (Straight-line rent and amortization of above- and below-market) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.00 151.85 Td (leases, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 321.60 151.85 Td (\(1,071) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.30 151.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.60 151.85 Td (\(544) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.30 151.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.60 151.85 Td (\(1,964) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.30 151.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.60 151.90 Td (\(1,074) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 564.30 151.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.00 137.85 Td (Unrealized gain on derivative instruments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 327.60 137.85 Td (\(439) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.30 137.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.30 137.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.60 137.85 Td (\(81) Tj ET Q q 0 0 0 rg BT 486.26 137.85 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.30 137.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 556.30 137.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 60.00 123.85 Td (Loss from extinguishment of debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.30 123.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.30 123.85 Td (206) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.30 123.85 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.30 123.85 Td (206) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 48.00 109.85 Td (MFFO) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 278.00 109.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 330.30 109.85 Td (549) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.00 109.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.30 109.85 Td (1,060) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.00 109.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.30 109.85 Td (1,388) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.00 109.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 109.85 Td (2,051) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 82.10 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 70.10 Td (MFFO, such as tenant improvements, building improvements and deferred leasing costs. ) 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 (Organization and Offering Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 686.25 Td (Of) Tj ET Q q 0 0 0 rg BT 83.87 686.25 Td (fering costs include all expenses incurred in connection with our of) Tj ET Q q 0 0 0 rg BT 352.50 686.25 Td (ferings of securities. Or) Tj ET Q q 0 0 0 rg BT 446.73 686.25 Td (ganization costs include all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 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 73.50 656.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.54 656.25 Td (ith respect to our public of) Tj ET Q q 0 0 0 rg BT 188.16 656.25 Td (fering, our advisor and dealer manager generally paid our or) Tj ET Q q 0 0 0 rg BT 428.99 656.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 498.23 656.25 Td (fering expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.25 Td (incurred in the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 263.99 644.25 Td (fering \(other than selling commissions, dealer manager fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (stockholder servicing fees\) directly) Tj ET Q q 0 0 0 rg BT 189.63 632.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 614.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 614.25 Td (e reimbursed our advisor) Tj ET Q q 0 0 0 rg BT 181.43 614.25 Td (, our af) Tj ET Q q 0 0 0 rg BT 209.85 614.25 Td (filiated dealer manager and their af) Tj ET Q q 0 0 0 rg BT 349.87 614.25 Td (filiates up to 1.0% of gross primary of) Tj ET Q q 0 0 0 rg BT 502.44 614.25 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (proceeds raised in our initial public of) Tj ET Q q 0 0 0 rg BT 201.50 602.25 Td (fering for commercially reasonable or) Tj ET Q q 0 0 0 rg BT 352.91 602.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 422.15 602.25 Td (fering expenses. Our advisor) Tj ET Q q 0 0 0 rg BT 536.72 602.25 Td (, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 590.25 Td (filiated dealer manager) Tj ET Q q 0 0 0 rg BT 148.86 590.25 Td (, and their af) Tj ET Q q 0 0 0 rg BT 199.21 590.25 Td (filiates were responsible for all or) Tj ET Q q 0 0 0 rg BT 333.70 590.25 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 425.98 590.25 Td (fering expenses \(which excludes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (selling commissions, dealer manager fees and stockholder servicing fees\) related to the primary portion of our initial public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 566.25 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 496.22 566.25 Td (fering. ) Tj ET Q q 0 0 0 rg BT 527.42 566.25 Td (W) Tj ET Q q 0 0 0 rg BT 536.06 566.25 Td (e did ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (not reimburse our af) Tj ET Q q 0 0 0 rg BT 130.68 554.25 Td (filiated dealer manager for wholesaling compensation expenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 536.25 Td (During our initial private of) Tj ET Q q 0 0 0 rg BT 184.40 536.25 Td (fering, we were obligated to reimburse our advisor) Tj ET Q q 0 0 0 rg BT 386.71 536.25 Td (, our af) Tj ET Q q 0 0 0 rg BT 415.13 536.25 Td (filiated dealer manager or their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 524.25 Td (filiates, as applicable, for or) Tj ET Q q 0 0 0 rg BT 168.53 524.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 237.77 524.25 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 49.50 512.25 Td (our behalf. ) Tj ET Q q 0 0 0 rg BT 95.13 512.25 Td (W) Tj ET Q q 0 0 0 rg BT 103.77 512.25 Td (e recorded $1.5 million of of) Tj ET Q q 0 0 0 rg BT 218.56 512.25 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 49.50 500.25 Td (initial private of) Tj ET Q q 0 0 0 rg BT 113.74 500.25 Td (fering, all of which have been reimbursed to our advisor or its af) Tj ET Q q 0 0 0 rg BT 371.54 500.25 Td (filiates. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 482.25 Td (Our advisor has agreed to pay all of) Tj ET Q q 0 0 0 rg BT 216.33 482.25 Td (fering expenses related to our recently launched second private placement of) Tj ET Q q 0 0 0 rg BT 522.68 482.25 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (directly on our behalf without reimbursement by us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 452.25 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 452.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.77 452.25 Td (, our advisor and its af) Tj ET Q q 0 0 0 rg BT 254.01 452.25 Td (filiates had incurred or) Tj ET Q q 0 0 0 rg BT 344.63 452.25 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 436.91 452.25 Td (fering costs \(which exclude ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.25 Td (selling commissions, dealer manager fees and stockholder servicing fees\) on our behalf in connection with the initial public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 428.25 Td (fering of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.12 428.25 Td ($4.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.01 428.25 Td (. ) Tj ET Q q 0 0 0 rg BT 208.46 428.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.90 428.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.73 428.25 Td (, we recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.36 428.25 Td ($39,358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.86 428.25 Td ( of or) Tj ET Q q 0 0 0 rg BT 399.34 428.25 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 491.63 428.25 Td (fering expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (related to the initial public of) Tj ET Q q 0 0 0 rg BT 165.67 416.25 Td (fering, which amounts represent our maximum liability for or) Tj ET Q q 0 0 0 rg BT 411.82 416.25 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 504.10 416.25 Td (fering costs as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (of the termination of our primary initial public of) Tj ET Q q 0 0 0 rg BT 245.94 404.25 Td (fering based on the limitation described above. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 386.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 386.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 386.25 Td (, KBS Capital ) Tj ET Q q 0 0 0 rg BT 210.06 386.25 Td (Advisors had incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.42 386.25 Td ($3.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.32 386.25 Td ( in of) Tj ET Q q 0 0 0 rg BT 371.24 386.25 Td (fering expenses on our behalf related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (second private placement of) Tj ET Q q 0 0 0 rg BT 161.77 374.25 Td (fering. ) Tj ET Q q 0 0 0 rg BT 192.97 374.25 Td (The advisor has agreed to pay these expenses on our behalf without reimbursement by us.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (Distributions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 338.25 Td (During our of) Tj ET Q q 0 0 0 rg BT 128.31 338.25 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 49.50 326.25 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 49.50 314.25 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 480.10 314.25 Td (, if necessary) Tj ET Q q 0 0 0 rg BT 531.93 314.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.25 Td (Distributions declared, distributions paid and cash flows from operations were as follows for the first and second quarters of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 290.25 Td ( \(in thousands, except per share amounts\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 233.75 92.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 142.00 233.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 146.00 233.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.00 233.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 202.00 233.75 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 233.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 233.75 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 233.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 233.75 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 233.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.00 233.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 233.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 233.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 233.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.00 233.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 205.75 92.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 142.00 205.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 146.00 205.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.00 205.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 202.00 205.75 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 205.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 205.75 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 205.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 205.75 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 205.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.00 205.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 205.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 459.00 205.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 205.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.00 205.75 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 350 253.75 m 400 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 253.75 m 404 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 253.75 m 455 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 253.75 m 459 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 253.75 m 508 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 233.75 m 142 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 233.75 m 198 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202 233.75 m 272 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 233.75 m 400 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 233.75 m 455 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 233.75 m 508 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 233.75 m 198 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202 233.75 m 272 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276 233.75 m 346 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 233.75 m 400 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 233.75 m 455 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 233.75 m 508 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 233.75 m 563 233.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 205.75 m 198 205.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202 205.75 m 272 205.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276 205.75 m 346 205.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 205.75 m 400 205.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 205.75 m 455 205.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 205.75 m 508 205.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 205.75 m 563 205.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 192.75 m 198 192.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 190.75 m 198 190.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202 205.75 m 272 205.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202 192.75 m 272 192.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202 190.75 m 272 190.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276 205.75 m 346 205.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276 192.75 m 346 192.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276 190.75 m 346 190.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 192.75 m 400 192.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 190.75 m 400 190.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 192.75 m 455 192.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 190.75 m 455 190.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 192.75 m 508 192.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 190.75 m 508 190.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 192.75 m 563 192.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 190.75 m 563 190.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 162.80 253.98 Td (Cash ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 149.05 245.98 Td (Distributions ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 152.55 237.98 Td (Declar) Tj ET Q q 0 0 0 rg BT 175.06 237.98 Td (ed) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 183.06 241.61 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.90 253.98 Td (Cash Distribution ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 214.30 245.98 Td (Declar) Tj ET Q q 0 0 0 rg BT 236.81 245.98 Td (ed Per) Tj ET Q q 0 0 0 rg BT 258.65 245.98 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.60 237.98 Td (Class ) Tj ET Q q 0 0 0 rg BT 225.39 237.98 Td (A) Tj ET Q q 0 0 0 rg BT 230.72 237.98 Td ( Shar) Tj ET Q q 0 0 0 rg BT 249.03 237.98 Td (e) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 252.58 241.61 Td ( \(1\) \(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.90 253.98 Td (Cash Distribution ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.30 245.98 Td (Declar) Tj ET Q q 0 0 0 rg BT 310.81 245.98 Td (ed Per) Tj ET Q q 0 0 0 rg BT 332.65 245.98 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.55 237.98 Td (Class ) Tj ET Q q 0 0 0 rg BT 299.63 237.98 Td (T) Tj ET Q q 0 0 0 rg BT 304.82 237.98 Td ( Shar) Tj ET Q q 0 0 0 rg BT 323.13 237.98 Td (e) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 326.68 241.61 Td ( \(1\) \(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.90 257.98 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 466.70 261.61 Td ( \(3\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.30 261.98 Td (Cash Flows) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.20 253.98 Td (\(used in\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.50 245.98 Td (pr) Tj ET Q q 0 0 0 rg BT 524.43 245.98 Td (ovided by) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.85 237.98 Td (Operations) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 84.15 237.98 Td (Period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.80 237.98 Td (Cash) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.30 237.98 Td (Reinvested) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.25 237.98 Td (T) Tj ET Q q 0 0 0 rg BT 478.85 237.98 Td (otal) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 224.00 Td (First Quarter 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 148.50 224.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 176.80 224.00 Td (1,1) Tj ET Q q 0 0 0 rg BT 186.80 224.00 Td (18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 204.50 224.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.80 224.00 Td (0.1) Tj ET Q q 0 0 0 rg BT 260.80 224.00 Td (19) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 278.50 224.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 324.80 224.00 Td (0.1) Tj ET Q q 0 0 0 rg BT 334.80 224.00 Td (19) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.50 224.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 224.00 Td (612) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.50 224.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.80 224.00 Td (51) Tj ET Q q 0 0 0 rg BT 447.80 224.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 461.50 224.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.75 224.00 Td (1,123) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 514.50 224.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 224.00 Td (\(574) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 224.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 210.00 Td (Second Quarter 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 176.80 210.00 Td (1,200) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.80 210.00 Td (0.128) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 324.80 210.00 Td (0.128) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.80 210.00 Td (667) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.80 210.00 Td (503) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.75 210.00 Td (1,170) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 210.00 Td (1,996) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 148.50 196.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 176.80 196.00 Td (2,318) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 204.50 196.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.80 196.00 Td (0.247) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 278.50 196.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 324.80 196.00 Td (0.247) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.50 196.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.75 196.00 Td (1,279) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.50 196.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 196.00 Td (1,014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 461.50 196.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.75 196.00 Td (2,293) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 514.50 196.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 196.00 Td (1,422) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 171.27 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 167.65 Td ( Distributions for the periods from January 1, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.43 167.65 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 218.43 167.65 Td ( through ) Tj ET Q q 0 0 0 rg BT 246.87 167.65 Td (April 30, 2018 and from May 1, 2018 through ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.41 167.65 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.07 167.65 Td ( were based on daily record dates and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 158.05 Td (were calculated based on stockholders of record each day during these periods at a rate of $0.00132452 per share per day and $0.00144493 per share per day) Tj ET Q q 0 0 0 rg BT 551.02 158.05 Td (, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 148.45 Td (respectively) Tj ET Q q 0 0 0 rg BT 87.63 148.45 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 139.48 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 135.85 Td ( ) Tj ET Q q 0 0 0 rg BT 57.12 135.85 Td (Assumes Class ) Tj ET Q q 0 0 0 rg BT 106.91 135.85 Td (A) Tj ET Q q 0 0 0 rg BT 112.24 135.85 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 146.98 135.85 Td (T) Tj ET Q q 0 0 0 rg BT 151.73 135.85 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 49.50 126.88 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 123.25 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 49.50 113.65 Td (following month) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 103.05 113.65 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 /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.61 704.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.28 704.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.10 704.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.93 704.10 Td (, we paid aggregate distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.51 704.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.40 704.10 Td (, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.67 704.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.56 704.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (distributions paid in cash and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.21 692.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.10 692.10 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 49.50 680.10 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 680.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.05 680.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.87 680.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.70 680.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.25 680.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.15 680.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.9333333333333333 0.15294117647058825 0.1411764705882353 rg BT 278.65 680.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 281.15 680.10 Td ( FFO for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.37 680.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.04 680.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.86 680.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.69 680.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.24 680.10 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.14 680.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (cash flows provided by operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.07 668.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.74 668.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.56 668.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.39 668.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.95 668.10 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.84 668.10 Td (. See the reconciliation of FFO to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (net loss above. ) Tj ET Q q 0 0 0 rg BT 110.97 656.10 Td (W) Tj ET Q q 0 0 0 rg BT 119.61 656.10 Td (e funded our total distributions paid, which includes net cash distributions and distributions reinvested by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (stockholders, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.33 644.10 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.22 644.10 Td ( of current period cash flows from operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.99 644.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.88 644.10 Td ( of cash flows from operations in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (excess of distributions paid during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.76 632.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.76 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.20 632.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.09 632.10 Td ( of debt financing. In addition, our advisor waived and deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (certain of its asset management fees which resulted in more cash being available for distribution. ) Tj ET Q q 0 0 0 rg BT 441.69 620.10 Td (T) Tj ET Q q 0 0 0 rg BT 447.10 620.10 Td (o the extent that we pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (distributions from sources other than our cash flows from operations, we will have less funds available for the acquisition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (real estate investments, the overall return to our stockholders may be reduced and subsequent investors will experience dilution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 578.10 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 49.50 566.10 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 49.50 554.10 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 49.50 542.10 Td (pre-established a percentage rate of return for cash distributions to stockholders. ) Tj ET Q q 0 0 0 rg BT 372.54 542.10 Td (W) Tj ET Q q 0 0 0 rg BT 381.18 542.10 Td (e have not established a minimum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 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 73.50 512.10 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 49.50 500.10 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 49.50 488.10 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 49.50 476.10 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 49.50 464.10 Td (of Operations herein and the risks discussed herein and in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 346.64 464.10 Td ( of our ) Tj ET Q q 0 0 0 rg BT 375.25 464.10 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 49.50 452.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 452.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.46 452.10 Td (, as filed with the SEC. ) Tj ET Q q 0 0 0 rg BT 249.27 452.10 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 49.50 440.10 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 49.50 428.10 Td (financial environment; our advisor) Tj ET Q q 0 0 0 rg BT 188.44 428.10 Td () Tj ET Q q 0 0 0 rg BT 191.22 428.10 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 49.50 416.10 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 49.50 404.10 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 49.50 392.10 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 49.50 380.10 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 49.50 368.10 Td (operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (Critical ) Tj ET Q q 0 0 0 rg BT 84.21 350.10 Td (Accounting Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 332.10 Td (Our consolidated interim financial statements and condensed notes thereto have been prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 558.79 332.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (and in conjunction with the rules and regulations of the SEC. ) Tj ET Q q 0 0 0 rg BT 298.44 320.10 Td (The preparation of our financial statements requires significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (management judgments, assumptions and estimates about matters that are inherently uncertain. ) Tj ET Q q 0 0 0 rg BT 434.77 308.10 Td (These judgments af) Tj ET Q q 0 0 0 rg BT 512.90 308.10 Td (fect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities as of the dates of the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (statements and the reported amounts of revenue and expenses during the reporting periods. ) Tj ET Q q 0 0 0 rg BT 417.82 284.10 Td (W) Tj ET Q q 0 0 0 rg BT 426.86 284.10 Td (ith dif) Tj ET Q q 0 0 0 rg BT 450.84 284.10 Td (ferent estimates or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (assumptions, materially dif) Tj ET Q q 0 0 0 rg BT 157.91 272.10 Td (ferent amounts could be reported in our financial statements. ) Tj ET Q q 0 0 0 rg BT 405.33 272.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 455.24 272.10 Td (, other companies may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (utilize dif) Tj ET Q q 0 0 0 rg BT 87.92 260.10 Td (ferent estimates that may impact the comparability of our results of operations to those of companies in similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (businesses. ) Tj ET Q q 0 0 0 rg BT 98.67 248.10 Td (A) Tj ET Q q 0 0 0 rg BT 105.34 248.10 Td ( discussion of the accounting policies that management considers critical in that they involve significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (management judgments, assumptions and estimates is included in our ) Tj ET Q q 0 0 0 rg BT 330.01 236.10 Td (Annual Report on Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 224.10 Td ( filed with the SEC. ) Tj ET Q q 0 0 0 rg BT 212.06 224.10 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 460.87 224.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.87 224.10 Td (, except for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (adoption of the revenue recognition standards issued by the Financial ) Tj ET Q q 0 0 0 rg BT 328.88 212.10 Td (Accounting Standards Board ef) Tj ET Q q 0 0 0 rg BT 454.50 212.10 Td (fective on January 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (2018.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 164.10 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.26 164.10 Td (fective January 1, 2018, we adopted ) Tj ET Q q 0 0 0 rg BT 227.32 164.10 Td (ASU No. 2014-09, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 305.38 164.10 Td (Revenue fr) Tj ET Q q 0 0 0 rg BT 348.04 164.10 Td (om Contracts with Customers \(T) Tj ET Q q 0 0 0 rg BT 477.69 164.10 Td (opic 606\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.74 164.10 Td ( \(ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (No. 2014-09\) using the modified retrospective approach, which requires a cumulative ef) Tj ET Q q 0 0 0 rg BT 406.70 152.10 Td (fect adjustment as of the date of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 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 49.50 128.10 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 412.19 128.10 Td (A) Tj ET Q q 0 0 0 rg BT 418.86 128.10 Td ( completed contract is a contract ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (for which all \(or substantially all\) of the revenue was recognized under legacy GAAP) Tj ET Q q 0 0 0 rg BT 390.96 116.10 Td ( that was in ef) Tj ET Q q 0 0 0 rg BT 446.87 116.10 Td (fect before the date of initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (application. ) Tj ET Q q 0 0 0 rg BT 98.75 104.10 Td (W) Tj ET Q q 0 0 0 rg BT 107.39 104.10 Td (e elected to apply this standard only to contracts that were not completed as of January 1, 2018. ) Tj ET Q endstream endobj 73 0 obj <>] /Rotate 0 /Contents 74 0 R>> endobj 74 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. Management) Tj ET Q q 0 0 0 rg BT 144.05 730.60 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 216.03 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (Based on our evaluation of contracts within the scope of ) Tj ET Q q 0 0 0 rg BT 299.16 704.10 Td (ASU No. 2014-09, revenue that is impacted by ) Tj ET Q q 0 0 0 rg BT 489.13 704.10 Td (ASU No. 2014-09 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 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 49.50 680.10 Td (earned at our properties. ) Tj ET Q q 0 0 0 rg BT 149.00 680.10 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 49.50 668.10 Td (obligations are satisfied. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.08 668.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.07 668.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.51 668.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.18 668.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.00 668.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.83 668.10 Td (, tenant reimbursements for substantial services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (accounted for under ) Tj ET Q q 0 0 0 rg BT 131.41 656.10 Td (ASU No. 2014-09 were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.89 656.10 Td ($28,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.39 656.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.83 656.10 Td ($64,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.33 656.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 365.99 656.10 Td (, and were included in tenant reimbursements on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (the accompanying statements of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (Sales of Real Estate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 611.10 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.26 611.10 Td (fective January 1, 2018, we adopted the guidance of ) Tj ET Q q 0 0 0 rg BT 291.46 611.10 Td (ASC 610-20, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 346.75 611.10 Td (Other Income - Gains and Losses fr) Tj ET Q q 0 0 0 rg BT 489.70 611.10 Td (om the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (Der) Tj ET Q q 0 0 0 rg BT 64.68 599.10 Td (ecognition of Nonfinancial ) Tj ET Q q 0 0 0 rg BT 174.21 599.10 Td (Assets \(ASC 610-20\),) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.60 599.10 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 49.50 587.10 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 437.37 587.10 Td (, our sales of real estate would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (be considered a sale of a nonfinancial asset as defined by ) Tj ET Q q 0 0 0 rg BT 279.69 575.10 Td (ASC 610-20.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 557.10 Td (ASC 610-20 refers to the revenue recognition principles under ) Tj ET Q q 0 0 0 rg BT 323.88 557.10 Td (ASU No. 2014-09. Under ) Tj ET Q q 0 0 0 rg BT 431.37 557.10 Td (ASC 610-20, if we determine it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.10 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 49.50 533.10 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 49.50 521.10 Td (control of the underlying asset transfers to the buyer) Tj ET Q q 0 0 0 rg BT 257.78 521.10 Td (. ) Tj ET Q q 0 0 0 rg BT 264.72 521.10 Td (As a result of the adoption of ) Tj ET Q q 0 0 0 rg BT 383.31 521.10 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 49.50 509.10 Td (consolidated financial statements of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.60 509.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.27 509.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.09 509.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.92 509.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.36 509.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.36 509.10 Td ( since we did not sell any real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td (estate properties for those periods.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (Subsequent Events) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 461.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 461.10 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 49.50 443.10 Td (Cash Distributions Paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 428.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 428.10 Td (July 2, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.39 428.10 Td (, we paid cash distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.87 428.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.76 428.10 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 49.50 416.10 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 264.13 416.10 Td (June 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.96 416.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.07 416.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.90 416.10 Td (. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.57 416.10 Td (August 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.96 416.10 Td (, we paid cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.83 404.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.73 404.10 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 49.50 392.10 Td (the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.20 392.10 Td (July 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.37 392.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.48 392.10 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.65 392.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (Distributions ) Tj ET Q q 0 0 0 rg BT 105.54 374.10 Td (Authorized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 359.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 359.10 Td (July 16, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.39 359.10 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 49.50 347.10 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 300.26 347.10 Td (August 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 347.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.21 347.10 Td (August 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.60 347.10 Td (, which we expect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.10 Td (pay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.72 335.10 Td (September 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.98 335.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.48 335.10 Td (On ) Tj ET Q q 0 0 0 rg BT 163.65 335.10 Td (August 6, 2018,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.54 335.10 Td ( our board of directors authorized cash distributions on the outstanding shares of all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (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 357.74 323.10 Td (September 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.01 323.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.11 323.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.38 323.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (which we expect to pay in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.19 311.10 Td ( October 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.39 311.10 Td (, and the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.04 311.10 Td (October 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.74 311.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.85 311.10 Td (October 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.56 311.10 Td (, which we expect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (pay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.72 299.10 Td (November 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.42 299.10 Td (. Investors may choose to receive cash distributions or purchase additional shares through our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 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 49.50 275.10 Td (during these periods at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.06 275.10 Td ($0.00144493) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.56 275.10 Td ( per share per day) Tj ET Q q 0 0 0 rg BT 300.99 275.10 Td (.) Tj ET Q endstream endobj 75 0 obj <>] /Rotate 0 /Contents 76 0 R>> endobj 76 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 143.46 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 194.10 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 3. Quantitative and Qualitative Disclosur) Tj ET Q q 0 0 0 rg BT 250.09 730.60 Td (es about Market Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (36) 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.56 554.10 Td (, we did not have any fixed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.62 500.10 Td (, we were exposed to market risks related to fluctuations in interest rates on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td ($1) Tj ET Q q 0 0 0 rg BT 59.13 488.10 Td (17.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.02 488.10 Td ( of variable rate debt outstanding. ) Tj ET Q q 0 0 0 rg BT 244.74 488.10 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.35 476.10 Td (. Based on interest rates as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.26 476.10 Td (June 30, ) 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 June 30, 2019, interest expense on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.82 434.10 Td ( was 3.9%. ) Tj ET Q q 0 0 0 rg BT 426.52 434.10 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.19 422.10 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 528.87 422.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 410.10 Td ( where applicable. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (Item 4. 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 206.10 Td ( that have materially af) Tj ET Q q 0 0 0 rg BT 197.33 206.10 Td (fected, or are reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 384.28 206.10 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 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 ) 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 /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 (December 31, 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 (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.16 505.40 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 (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.78 349.40 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.60 349.40 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.43 349.40 Td (, we paid aggregate distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.01 349.40 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.90 349.40 Td (, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.17 349.40 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.06 349.40 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 ($1.0 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 ($1.2 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 (current period cash flows from operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.95 313.40 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.84 313.40 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 49.50 301.40 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 301.40 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 301.40 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.83 301.40 Td ( of debt financing. In addition, our advisor waived and deferred certain of its asset management fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.40 Td (which resulted in more cash being available for distribution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 271.40 Td (See Part I, Item II, Management) Tj ET Q q 0 0 0 rg BT 207.78 271.40 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 276.95 271.40 Td (Analysis of Financial Condition and Results of Operations -) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 259.40 Td (Distributions herein.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 241.40 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 49.50 229.40 Td (distributions at the current rate may be adversely af) Tj ET Q q 0 0 0 rg BT 261.54 229.40 Td (fected. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.40 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 49.50 202.40 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 49.50 190.40 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 503.45 190.40 Td (, in the second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.40 Td (and third quarters of 2017 our advisor waived its asset management fee and in the fourth quarter of 2017 through the second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.40 Td (quarter of 2018, the advisor deferred its asset management fee. If our advisor chooses to no longer waive or defer such fees, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.40 Td (our ability to fund our operations and our distributions at the current rate may be adversely af) Tj ET Q q 0 0 0 rg BT 422.54 154.40 Td (fected.) 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 1A. Risk Factors \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (38) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 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 49.50 692.25 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 49.50 680.25 Td (2019 when the dollar limitation resets. However) Tj ET Q q 0 0 0 rg BT 248.40 680.25 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 49.50 668.25 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 49.50 656.25 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 72.00 641.25 Td (During any calendar year) Tj ET Q q 0 0 0 rg BT 172.94 641.25 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 49.50 629.25 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 49.50 617.25 Td (5% ) Tj ET Q q 0 0 0 rg BT 65.33 617.25 Td (of ) Tj ET Q q 0 0 0 rg BT 76.16 617.25 Td (the ) Tj ET Q q 0 0 0 rg BT 90.88 617.25 Td (weighted) Tj ET Q /GS0 gs q 5.00 0 0 10.09 127.53 615.09 cm /I24 Do Q q 0 0 0 rg BT 132.53 617.25 Td (average ) Tj ET Q q 0 0 0 rg BT 166.12 617.25 Td (number ) Tj ET Q q 0 0 0 rg BT 199.16 617.25 Td (of ) Tj ET Q q 0 0 0 rg BT 209.99 617.25 Td (shares ) Tj ET Q q 0 0 0 rg BT 237.48 617.25 Td (outstanding ) Tj ET Q q 0 0 0 rg BT 286.65 617.25 Td (during ) Tj ET Q q 0 0 0 rg BT 315.26 617.25 Td (the ) Tj ET Q q 0 0 0 rg BT 329.97 617.25 Td (prior ) Tj ET Q q 0 0 0 rg BT 351.91 617.25 Td (calendar ) Tj ET Q q 0 0 0 rg BT 388.27 617.25 Td (year) Tj ET Q q 0 0 0 rg BT 404.93 617.25 Td (. ) Tj ET Q q 0 0 0 rg BT 409.93 617.25 Td ( ) Tj ET Q q 0 0 0 rg BT 412.43 617.25 Td (In ) Tj ET Q q 0 0 0 rg BT 423.26 617.25 Td (2017, ) Tj ET Q q 0 0 0 rg BT 448.26 617.25 Td (our ) Tj ET Q q 0 0 0 rg BT 464.09 617.25 Td (net ) Tj ET Q q 0 0 0 rg BT 478.81 617.25 Td (proceeds ) Tj ET Q q 0 0 0 rg BT 516.84 617.25 Td (from ) Tj ET Q q 0 0 0 rg BT 538.78 617.25 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (distribution reinvestment plan were $2.3 million. ) Tj ET Q q 0 0 0 rg BT 247.25 605.25 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 49.50 593.25 Td (as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.16 593.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.99 593.25 Td (, we had $4.7 million of outstanding and unfulfilled redemption requests representing 560,487 shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 575.25 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 49.50 563.25 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 49.50 551.25 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 49.50 539.25 Td (redeem during the calendar year) Tj ET Q q 0 0 0 rg BT 177.92 539.25 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 49.50 527.25 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 49.50 515.25 Td (requirement described in our most recently ef) Tj ET Q q 0 0 0 rg BT 231.47 515.25 Td (fective registration statement, then we would redeem all of such stockholder) Tj ET Q q 0 0 0 rg BT 537.02 515.25 Td () Tj ET Q q 0 0 0 rg BT 539.80 515.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.25 Td (shares. ) Tj ET Q q 0 0 0 rg BT 81.81 503.25 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 49.50 491.25 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 49.50 479.25 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 49.50 467.25 Td (the number of shares that may be redeemed.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 443.25 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 85.50 443.25 Td (Unr) Tj ET Q q 0 0 0 rg BT 102.54 443.25 Td (egister) Tj ET Q q 0 0 0 rg BT 130.68 443.25 Td (ed Sales of Equity Securities and Use of Pr) Tj ET Q q 0 0 0 rg BT 311.60 443.25 Td (oceeds) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 425.25 Td (a\) ) Tj ET Q q 0 0 0 rg BT 90.00 425.25 Td (During the period covered by this Form 10-Q, we sold the following equity securities that were not registered under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 413.25 Td (the Securities ) Tj ET Q q 0 0 0 rg BT 146.10 413.25 Td (Act of 1933 \(the Act\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 395.25 Td (Pursuant to Rule 506\(c\) of Regulation D of the ) Tj ET Q q 0 0 0 rg BT 279.69 395.25 Td (Act, we are currently conducting a private of) Tj ET Q q 0 0 0 rg BT 458.88 395.25 Td (fering for the sale of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 383.25 Td (maximum of $1,000,000,000 of shares of our Class ) Tj ET Q q 0 0 0 rg BT 297.48 383.25 Td (A) Tj ET Q q 0 0 0 rg BT 304.15 383.25 Td ( common stock to accredited investors through a best ef) Tj ET Q q 0 0 0 rg BT 526.96 383.25 Td (forts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 371.25 Td (private placement of) Tj ET Q q 0 0 0 rg BT 172.00 371.25 Td (fering which commenced on October 3, 2017. ) Tj ET Q q 0 0 0 rg BT 360.65 371.25 Td (The exemption is available to us because the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 359.25 Td (shares are being of) Tj ET Q q 0 0 0 rg BT 165.06 359.25 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 90.00 347.25 Td (to the launch of the private of) Tj ET Q q 0 0 0 rg BT 208.11 347.25 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 90.00 335.25 Td (Corporation \(NCPS\) to act as dealer manager for the of) Tj ET Q q 0 0 0 rg BT 320.01 335.25 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 90.00 323.25 Td (NCPS, without reimbursement from us, selling commissions of 0.5% of the gross of) Tj ET Q q 0 0 0 rg BT 426.74 323.25 Td (fering proceeds. ) Tj ET Q q 0 0 0 rg BT 495.98 323.25 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 311.25 Td (December 1) Tj ET Q q 0 0 0 rg BT 138.21 311.25 Td (1, 2017, shares were sold in the private of) Tj ET Q q 0 0 0 rg BT 305.21 311.25 Td (fering at $8.75 per share. Ef) Tj ET Q q 0 0 0 rg BT 419.43 311.25 Td (fective December 12, 2017, we are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 299.25 Td (of) Tj ET Q q 0 0 0 rg BT 98.15 299.25 Td (fering shares in the private of) Tj ET Q q 0 0 0 rg BT 215.42 299.25 Td (fering at $8.79 per share. ) Tj ET Q q 0 0 0 rg BT 320.21 299.25 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.14 299.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.97 299.25 Td (, we had raised approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.71 299.25 Td ($2.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 287.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.89 287.25 Td ( related to the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.97 287.25 Td (253,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.47 287.25 Td ( shares of our Class ) Tj ET Q q 0 0 0 rg BT 317.73 287.25 Td (A) Tj ET Q q 0 0 0 rg BT 324.40 287.25 Td ( common stock in the private of) Tj ET Q q 0 0 0 rg BT 451.42 287.25 Td (fering. ) Tj ET Q q 0 0 0 rg BT 482.61 287.25 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.55 287.25 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 275.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.00 275.25 Td (, our advisor had paid underwriting commissions of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.39 275.25 Td ($17,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.89 275.25 Td ( related to this private of) Tj ET Q q 0 0 0 rg BT 509.74 275.25 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 257.25 Td (b\) ) Tj ET Q q 0 0 0 rg BT 90.00 257.25 Td (Not applicable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 239.25 Td (c\) ) Tj ET Q q 0 0 0 rg BT 90.00 239.25 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 239.25 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 90.00 227.25 Td (circumstances.) 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 (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 90.00 692.10 Td (shares: ) 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 (Unless the shares are being redeemed in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 414.11 674.10 Td () Tj ET Q q 0 0 0 rg BT 416.89 674.10 Td (s death, qualifying disability or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 662.10 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 130.50 650.10 Td (redeem shares until the stockholder has held his or her shares for one year) Tj ET Q q 0 0 0 rg BT 425.68 650.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 635.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 635.10 Td (During any calendar year) Tj ET Q q 0 0 0 rg BT 231.44 635.10 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 130.50 623.10 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 130.50 611.10 Td (calendar year) Tj ET Q q 0 0 0 rg BT 183.52 611.10 Td (. However) Tj ET Q q 0 0 0 rg BT 224.77 611.10 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 130.50 599.10 Td (pursuant to the program upon ten business days) Tj ET Q q 0 0 0 rg BT 323.34 599.10 Td ( notice to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 584.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 584.10 Td (During ) Tj ET Q q 0 0 0 rg BT 161.33 584.10 Td (any ) Tj ET Q q 0 0 0 rg BT 178.27 584.10 Td (calendar ) Tj ET Q q 0 0 0 rg BT 214.63 584.10 Td (year) Tj ET Q q 0 0 0 rg BT 231.44 584.10 Td (, ) Tj ET Q q 0 0 0 rg BT 236.44 584.10 Td (we ) Tj ET Q q 0 0 0 rg BT 250.60 584.10 Td (may ) Tj ET Q q 0 0 0 rg BT 270.31 584.10 Td (redeem ) Tj ET Q q 0 0 0 rg BT 302.24 584.10 Td (no ) Tj ET Q q 0 0 0 rg BT 314.74 584.10 Td (more ) Tj ET Q q 0 0 0 rg BT 337.79 584.10 Td (than ) Tj ET Q q 0 0 0 rg BT 357.50 584.10 Td (5% ) Tj ET Q q 0 0 0 rg BT 373.33 584.10 Td (of ) Tj ET Q q 0 0 0 rg BT 384.16 584.10 Td (the ) Tj ET Q q 0 0 0 rg BT 398.88 584.10 Td (weighted) Tj ET Q /GS0 gs q 5.00 0 0 10.09 435.53 581.94 cm /I25 Do Q q 0 0 0 rg BT 440.53 584.10 Td (average ) Tj ET Q q 0 0 0 rg BT 474.12 584.10 Td (number ) Tj ET Q q 0 0 0 rg BT 507.17 584.10 Td (of ) Tj ET Q q 0 0 0 rg BT 518.00 584.10 Td (shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 572.10 Td (outstanding during the prior calendar year) Tj ET Q q 0 0 0 rg BT 297.95 572.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 557.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 557.10 Td (W) Tj ET Q q 0 0 0 rg BT 139.14 557.10 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 130.50 545.10 Td (under Maryland law) Tj ET Q q 0 0 0 rg BT 210.93 545.10 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 130.50 533.10 Td (tests of solvency) Tj ET Q q 0 0 0 rg BT 196.51 533.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 512.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 512.10 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 547.77 512.10 Td (V) Tj ET Q q 0 0 0 rg BT 554.81 512.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 500.10 Td (per share as of the applicable redemption date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 482.10 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 90.00 470.10 Td (one year) Tj ET Q q 0 0 0 rg BT 123.75 470.10 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 90.00 458.10 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 90.00 446.10 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 90.00 434.10 Td (or stock dividend shares relate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 416.10 Td (On December 8, 2017 our board of directors approved an estimated NA) Tj ET Q q 0 0 0 rg BT 375.84 416.10 Td (V) Tj ET Q q 0 0 0 rg BT 382.88 416.10 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 90.00 404.10 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 450.00 404.10 Td (V) Tj ET Q q 0 0 0 rg BT 455.94 404.10 Td (, divided by the number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 392.10 Td (shares outstanding, all as of September 30, 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 90.00 380.10 Td (acquisition and financing costs related to a real estate acquisition subsequent to September 30, 2017. For a full ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 368.10 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 90.00 356.10 Td (estimated NA) Tj ET Q q 0 0 0 rg BT 143.97 356.10 Td (V) Tj ET Q q 0 0 0 rg BT 151.02 356.10 Td ( per share as of September 30, 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 90.00 344.10 Td (December 1) Tj ET Q q 0 0 0 rg BT 138.21 344.10 Td (1, 2017, and incorporated herein by reference. ) Tj ET Q q 0 0 0 rg BT 327.67 344.10 Td (W) Tj ET Q q 0 0 0 rg BT 336.31 344.10 Td (e expect to update the estimated NA) Tj ET Q q 0 0 0 rg BT 479.97 344.10 Td (V) Tj ET Q q 0 0 0 rg BT 487.01 344.10 Td ( annually in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 332.10 Td (December) Tj ET Q q 0 0 0 rg BT 130.53 332.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 314.10 Td (In several respects the Company treats redemptions sought upon a stockholder) Tj ET Q q 0 0 0 rg BT 404.18 314.10 Td () Tj ET Q q 0 0 0 rg BT 406.96 314.10 Td (s death, qualifying disability or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 302.10 Td (determination of incompetence dif) Tj ET Q q 0 0 0 rg BT 227.82 302.10 Td (ferently from other redemptions:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 284.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 284.10 Td (there is no one-year holding requirement; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 269.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 269.10 Td (the redemption price will be the estimated NA) Tj ET Q q 0 0 0 rg BT 314.43 269.10 Td (V) Tj ET Q q 0 0 0 rg BT 321.47 269.10 Td ( per share as of the redemption date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 245.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 245.10 Td (e may amend, suspend or terminate the program upon 30 days) Tj ET Q q 0 0 0 rg BT 349.77 245.10 Td ( notice to our stockholders, provided that we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 233.10 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 90.00 221.10 Td (upon 10 business days) Tj ET Q q 0 0 0 rg BT 182.31 221.10 Td ( notice. ) Tj ET Q q 0 0 0 rg BT 216.56 221.10 Td (W) Tj ET Q q 0 0 0 rg BT 225.20 221.10 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 90.00 209.10 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 90.00 197.10 Td (stockholders. ) 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 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 (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 704.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.44 704.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.27 704.10 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 90.00 692.10 Td (560,487 shares. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.54 692.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.21 692.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.03 692.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.86 692.10 Td (, we funded redemptions under our share redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 680.10 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 90.00 668.10 Td (redemption program as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 621.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 190.50 621.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 621.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 621.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 621.60 97.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 621.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 621.60 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 593.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 190.50 593.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 593.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 593.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 593.60 97.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 593.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 593.60 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 565.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 190.50 565.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 565.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 565.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 565.60 97.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 565.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 565.60 168.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 537.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 190.50 537.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 537.60 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 537.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 537.60 97.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 537.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 537.60 168.00 -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 90.5 621.6 m 190.5 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194.5 621.6 m 276.5 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 621.6 m 377.5 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 621.6 m 549.5 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 621.6 m 190.5 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194.5 621.6 m 276.5 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 621.6 m 377.5 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194.5 537.6 m 276.5 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194.5 524.6 m 276.5 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194.5 522.6 m 276.5 522.6 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 126.95 626.05 Td (Month) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 203.20 635.05 Td (T) Tj ET Q q 0 0 0 rg BT 208.38 635.05 Td (otal Number) Tj ET Q q 0 0 0 rg BT 256.96 635.05 Td ( of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 200.95 626.05 Td (Shar) Tj ET Q q 0 0 0 rg BT 219.29 626.05 Td (es Redeemed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 291.80 635.05 Td (A) Tj ET Q q 0 0 0 rg BT 297.63 635.05 Td (verage Price Paid) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 305.00 626.05 Td (Per) Tj ET Q q 0 0 0 rg BT 318.32 626.05 Td ( Shar) Tj ET Q q 0 0 0 rg BT 338.92 626.05 Td (e ) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 345.16 630.13 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 395.45 643.00 Td (Appr) Tj ET Q q 0 0 0 rg BT 415.79 643.00 Td (oximate Dollar) Tj ET Q q 0 0 0 rg BT 472.86 643.00 Td ( ) Tj ET Q q 0 0 0 rg BT 474.95 643.00 Td (V) Tj ET Q q 0 0 0 rg BT 480.62 643.00 Td (alue of Shar) Tj ET Q q 0 0 0 rg BT 526.97 643.00 Td (es) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 391.30 634.00 Td (A) Tj ET Q q 0 0 0 rg BT 397.13 634.00 Td (vailable ) Tj ET Q q 0 0 0 rg BT 429.22 634.00 Td (That May ) Tj ET Q q 0 0 0 rg BT 469.39 634.00 Td (Y) Tj ET Q q 0 0 0 rg BT 474.89 634.00 Td (et Be Redeemed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 427.40 625.00 Td (Under) Tj ET Q q 0 0 0 rg BT 451.74 625.00 Td ( the Pr) Tj ET Q q 0 0 0 rg BT 477.56 625.00 Td (ogram) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 612.06 Td (January 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 248.25 612.06 Td (36,971) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 283.00 612.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.25 612.06 Td (8.35) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 461.55 616.70 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 598.06 Td (February 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 243.75 598.06 Td (240,101) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 283.00 598.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 358.25 598.06 Td (8.35) Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 461.55 602.70 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 584.06 Td (March 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 264.00 584.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 283.00 584.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 584.06 Td () Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 461.55 588.70 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 570.06 Td (April 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 264.00 570.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 283.00 570.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 570.06 Td () Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 461.55 574.70 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 556.06 Td (May 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 264.00 556.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 283.00 556.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 556.06 Td () Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 461.55 560.70 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 93.00 542.06 Td (June 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 264.00 542.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 283.00 542.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.00 542.06 Td () Tj ET Q BT /F1 5.85 Tf ET q 0 0 0 rg BT 461.55 546.70 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 111.00 528.06 Td (T) Tj ET Q q 0 0 0 rg BT 115.87 528.06 Td (otal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 243.75 528.06 Td (277,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 512.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 90.00 503.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.06 499.50 Td ( ) Tj ET Q q 0 0 0 rg BT 97.92 499.50 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 90.00 490.52 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.06 486.90 Td ( ) Tj ET Q q 0 0 0 rg BT 97.92 486.90 Td (W) Tj ET Q q 0 0 0 rg BT 104.83 486.90 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 90.00 477.30 Td (calendar year) Tj ET Q q 0 0 0 rg BT 132.54 477.30 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 90.00 467.70 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 432.11 467.70 Td (. However) Tj ET Q q 0 0 0 rg BT 467.11 467.70 Td (, we may increase or ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 458.10 Td (decrease the funding available for the redemption of shares upon ten business days) Tj ET Q q 0 0 0 rg BT 356.88 458.10 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 90.00 448.50 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 90.00 438.90 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 402.14 438.90 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.70 438.90 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.36 438.90 Td (, we had a total of $4.7 ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 429.30 Td (million outstanding and unfulfilled redemption requests representing 560,487 shares. ) Tj ET Q q 0 0 0 rg BT 365.80 429.30 Td (W) Tj ET Q q 0 0 0 rg BT 372.71 429.30 Td (e recorded $1.0 million of redemptions payable in other ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 419.70 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 90.00 410.10 Td (from the sale of shares under our distribution reinvestment plan as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.61 410.10 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.27 410.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (Item 3. ) Tj ET Q q 0 0 0 rg BT 85.50 386.10 Td (Defaults upon Senior) Tj ET Q q 0 0 0 rg BT 175.33 386.10 Td ( Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 368.10 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (Item 4. ) Tj ET Q q 0 0 0 rg BT 85.50 344.10 Td (Mine Safety Disclosur) Tj ET Q q 0 0 0 rg BT 179.20 344.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 326.10 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (Item 5. ) Tj ET Q q 0 0 0 rg BT 85.50 302.10 Td (Other) Tj ET Q q 0 0 0 rg BT 110.87 302.10 Td ( Information) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (Renewal of ) Tj ET Q q 0 0 0 rg BT 98.94 284.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 139.78 284.10 Td (Agr) Tj ET Q q 0 0 0 rg BT 156.26 284.10 Td (eement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 266.10 Td (On ) Tj ET Q q 0 0 0 rg BT 86.17 266.10 Td (August 6, 2018, we renewed the advisory agreement with our advisor) Tj ET Q q 0 0 0 rg BT 364.03 266.10 Td (, KBS Capital ) Tj ET Q q 0 0 0 rg BT 421.81 266.10 Td (Advisors LLC, and ratified the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (terms of the agreement in ef) Tj ET Q q 0 0 0 rg BT 161.77 254.10 Td (fect through ) Tj ET Q q 0 0 0 rg BT 212.31 254.10 Td (April 28, 2018 as the understanding of the parties through ) Tj ET Q q 0 0 0 rg BT 445.88 254.10 Td (August 6, 2018. ) Tj ET Q q 0 0 0 rg BT 514.59 254.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (renewed advisory agreement is ef) Tj ET Q q 0 0 0 rg BT 183.70 242.10 Td (fective through ) Tj ET Q q 0 0 0 rg BT 246.46 242.10 Td (April 27, 2019. Its terms are identical to those of the advisory agreement that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (was previously in ef) Tj ET Q q 0 0 0 rg BT 130.13 230.10 Td (fect. ) Tj ET Q endstream endobj 85 0 obj <>] /Rotate 0 /Contents 86 0 R>> endobj 86 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( 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 (41) 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 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