%PDF-1.5 1 0 obj <> endobj 3 0 obj <>] /Rotate 0 /Contents 4 0 R>> endobj 4 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 18.00 Tf ET q 0 0 0 rg BT 235.55 720.65 Td (UNITED ST) Tj ET Q q 0 0 0 rg BT 330.74 720.65 Td (A) Tj ET Q q 0 0 0 rg BT 342.41 720.65 Td (TES) Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 112.70 699.05 Td (SECURITIES ) Tj ET Q q 0 0 0 rg BT 225.25 699.05 Td (AND EXCHANGE COMMISSION) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 244.15 684.65 Td (W) Tj ET Q q 0 0 0 rg BT 255.49 684.65 Td (ashington, D.C. 20549) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 171.00 672.65 Td (______________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 660.65 Td ( ) Tj ET Q BT 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Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 50.00 459.85 Td ( ) Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 118.45 438.25 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 205.65 438.25 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 330.52 438.25 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 399.87 438.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 447.05 438.25 Td (, INC. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 190.45 426.25 Td (\(Exact Name of Registrant as Specified in Its Charter\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 171.00 411.25 Td (______________________________________________________) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 154.10 391.48 Td (Maryland) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.00 391.00 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.80 391.48 Td (26-3842535) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 127.70 378.00 Td (\(State or Other Jurisdiction of) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.25 370.00 Td (Incorporation or Or) Tj ET Q q 0 0 0 rg BT 188.75 370.00 Td (ganization\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.00 370.00 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.65 378.00 Td (\(I.R.S. Employer) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.20 370.00 Td (Identification No.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 96.95 356.43 Td (800 Newport Center) Tj ET Q q 0 0 0 rg BT 183.41 356.43 Td ( Drive, Suite 700) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 118.10 346.43 Td (Newport Beach, California) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.50 346.00 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.50 346.43 Td (92660) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 110.25 333.00 Td (\(Address of Principal Executive Of) Tj ET Q q 0 0 0 rg BT 223.03 333.00 Td (fices\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 310.50 333.00 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.30 333.00 Td (\(Zip Code\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.75 317.25 Td (\(949\) 417-6500) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 211.90 307.65 Td (\(Registrant’) Tj ET Q q 0 0 0 rg BT 252.92 307.65 Td (s ) Tj ET Q q 0 0 0 rg BT 257.89 307.65 Td (T) Tj ET Q q 0 0 0 rg BT 262.49 307.65 Td (elephone Number) Tj ET Q q 0 0 0 rg BT 322.42 307.65 Td (, Including ) Tj ET Q q 0 0 0 rg BT 360.89 307.65 Td (Ar) Tj ET Q q 0 0 0 rg BT 370.07 307.65 Td (ea Code\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.00 295.65 Td (______________________________________________________________________) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 74.00 281.85 Td (Indicate by check mark whether the registrant: \(1\) has filed all reports required to be filed by Section 13 or 15\(d\) of the Securities ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 271.05 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 87.23 271.05 Td (Act of 1934 during the preceding 12 months \(or for such shorter period that the registrant was required to file such reports\), and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 260.25 Td (\(2\) has been subject to such filing requirements for the past 90 days. ) Tj ET Q q 0 0 0 rg BT 304.35 260.25 Td (Y) Tj ET Q q 0 0 0 rg BT 309.95 260.25 Td (es ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 321.95 258.31 cm /I3 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.49 260.25 Td ( No ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 355.99 258.31 cm /I4 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 74.00 243.45 Td (Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any) Tj ET Q q 0 0 0 rg BT 495.77 243.45 Td (, every Interactive ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 232.65 Td (Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T) Tj ET Q q 0 0 0 rg BT 358.78 232.65 Td ( \(§232.405 of this chapter\) during the preceding 12 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 221.85 Td (months \(or for such shorter period that the registrant was required to submit and post such files\). ) Tj ET Q q 0 0 0 rg BT 405.84 221.85 Td (Y) Tj ET Q q 0 0 0 rg BT 411.44 221.85 Td (es ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 423.43 219.91 cm /I5 Do Q /GS0 gs q 9.00 0 0 9.18 432.97 219.91 cm /I6 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.97 221.85 Td (No ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 457.47 219.91 cm /I7 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 74.00 205.05 Td (Indicate by check mark whether the registrant is a lar) Tj ET Q q 0 0 0 rg BT 265.00 205.05 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 333.09 205.05 Td (, an accelerated filer) Tj ET Q q 0 0 0 rg BT 405.67 205.05 Td (, a non-accelerated filer) Tj ET Q q 0 0 0 rg BT 490.25 205.05 Td (, a smaller ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 194.25 Td (reporting company or an emer) Tj ET Q q 0 0 0 rg BT 158.80 194.25 Td (ging growth company) Tj ET Q q 0 0 0 rg BT 237.20 194.25 Td (. See the definitions of “lar) Tj ET Q q 0 0 0 rg BT 334.01 194.25 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 402.09 194.25 Td (,” “accelerated filer) Tj ET Q q 0 0 0 rg BT 471.92 194.25 Td (,” “smaller reporting ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 183.45 Td (company” and “emer) Tj ET Q q 0 0 0 rg BT 126.30 183.45 Td (ging growth company” in Rule 12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 323.50 183.45 Td (Act. \(Check one\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 162.41 Td (Lar) Tj ET Q q 0 0 0 rg BT 65.41 162.41 Td (ge ) Tj ET Q q 0 0 0 rg BT 75.82 162.41 Td (Accelerated Filer) Tj ET Q /GS0 gs q 8.02 0 0 9.78 158.00 160.47 cm /I8 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 162.41 Td (Accelerated Filer) Tj ET Q /GS0 gs q 8.02 0 0 9.78 548.00 160.47 cm /I9 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 147.41 Td (Non-Accelerated ) Tj ET Q q 0 0 0 rg BT 116.71 147.41 Td (Filer) Tj ET Q /GS0 gs q 9.54 0 0 9.78 158.00 145.47 cm /I10 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 167.54 147.31 Td ( \(Do ) Tj ET Q q 0 0 0 rg BT 188.29 147.31 Td (not ) Tj ET Q q 0 0 0 rg BT 202.04 147.31 Td (check ) Tj ET Q q 0 0 0 rg BT 225.27 147.31 Td (if ) Tj ET Q q 0 0 0 rg BT 233.02 147.31 Td (a ) Tj ET Q q 0 0 0 rg BT 239.26 147.31 Td (smaller ) Tj ET Q q 0 0 0 rg BT 268.00 147.31 Td (reporting ) Tj ET Q q 0 0 0 rg BT 303.24 147.31 Td (company\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 147.41 Td (Smaller reporting company) Tj ET Q /GS0 gs q 8.02 0 0 9.78 548.00 145.47 cm /I11 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 132.41 Td (Emer) Tj ET Q q 0 0 0 rg BT 447.33 132.41 Td (ging ) Tj ET Q q 0 0 0 rg BT 465.58 132.41 Td (growth ) Tj ET Q q 0 0 0 rg BT 493.32 132.41 Td (company) Tj ET Q /GS0 gs q 8.02 0 0 9.78 548.00 130.47 cm /I12 Do Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.50 111.65 Td (If an emer) Tj ET Q q 0 0 0 rg BT 109.31 111.65 Td (ging growth company) Tj ET Q q 0 0 0 rg BT 187.72 111.65 Td (, indicate by check mark if the registrant has elected not to use the extended transition period for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 100.85 Td (complying with any new or revised financial accounting standards provided pursuant to Section 13\(a\) of the Exchange ) Tj ET Q q 0 0 0 rg BT 478.63 100.85 Td (Act. ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 502.87 98.91 cm /I13 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.50 84.05 Td (Indicate by check mark whether the registrant is a shell company \(as defined in Rule 12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 462.62 84.05 Td (Act\). ) Tj ET Q q 0 0 0 rg BT 489.52 84.05 Td (Y) Tj ET Q q 0 0 0 rg BT 495.12 84.05 Td (es ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 507.12 82.11 cm /I14 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 515.14 84.05 Td ( No ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 535.14 82.11 cm /I15 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 67.25 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.50 67.25 Td (August 7, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 126.75 67.25 Td (, there were ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 171.23 67.25 Td (54,640,201) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.73 67.25 Td ( outstanding shares of common stock of KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 477.03 67.25 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 31.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 742.25 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 742.25 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 742.25 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 742.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 742.25 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.90 724.25 Td (FORM 10-Q) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.95 706.25 Td (June 30, 2018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 335.01 706.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 289.85 688.25 Td (INDEX) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.08 688.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 662.32 Td (P) Tj ET Q q 0 0 0 rg BT 58.10 662.32 Td (AR) Tj ET Q q 0 0 0 rg BT 71.23 662.32 Td (T) Tj ET Q q 0 0 0 rg BT 76.95 662.32 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 95 660.9833984375 m 219.9072265625 660.9833984375 l s q 0 0 1 rg BT 95.00 662.32 Td (FINANCIAL) Tj ET Q q 0 0 1 rg BT 148.52 662.32 Td ( INFORMA) Tj ET Q q 0 0 1 rg BT 196.03 662.32 Td (TION) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 647.32 Td (Item 1.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 645.9833984375 m 220.59375 645.9833984375 l s q 0 0 1 rg BT 137.00 647.32 Td (Financial Statements) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 630.9833984375 m 479.6904296875 630.9833984375 l s q 0 0 1 rg BT 137.00 632.32 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 137 615.9833984375 m 513.6845703125 615.9833984375 l s q 0 0 1 rg BT 137.00 617.32 Td (Consolidated Statements of Operations \(unaudited\) for the ) Tj ET Q q 0 0 1 rg BT 373.15 617.32 Td (Three and 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 137 605.9833984375 m 211.4384765625 605.9833984375 l s q 0 0 1 rg BT 137.00 607.32 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 137 590.9833984375 m 511.169921875 590.9833984375 l s q 0 0 1 rg BT 137.00 592.32 Td (Consolidated Statements of Comprehensive Income \(Loss\) \(unaudited\) for the ) Tj ET Q q 0 0 1 rg BT 452.58 592.32 Td (Three and Six ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 580.9833984375 m 293.376953125 580.9833984375 l s q 0 0 1 rg BT 137.00 582.32 Td (Months Ended June 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 137 565.9833984375 m 468.8701171875 565.9833984375 l s q 0 0 1 rg BT 137.00 567.32 Td (Consolidated Statements of Equity for the ) Tj ET Q q 0 0 1 rg BT 307.16 567.32 Td (Y) Tj ET Q q 0 0 1 rg BT 313.38 567.32 Td (ear Ended December 31, 2017 and the ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 555.9833984375 m 318.3720703125 555.9833984375 l s q 0 0 1 rg BT 137.00 557.32 Td (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 137 540.9833984375 m 453.357421875 540.9833984375 l s q 0 0 1 rg BT 137.00 542.32 Td (Consolidated Statements of Cash Flows \(unaudited\) for the Six Months Ended ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 530.9833984375 m 232.2685546875 530.9833984375 l s q 0 0 1 rg BT 137.00 532.32 Td (June 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 137 515.9833984375 m 487.498046875 515.9833984375 l s q 0 0 1 rg BT 137.00 517.32 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 95.00 502.32 Td (Item 2.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 500.9833984375 m 495.291015625 500.9833984375 l s q 0 0 1 rg BT 137.00 502.32 Td (Management’) Tj ET Q q 0 0 1 rg BT 191.98 502.32 Td (s Discussion and ) Tj ET Q q 0 0 1 rg BT 261.15 502.32 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 487.32 Td (Item 3.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 485.9833984375 m 376.3896484375 485.9833984375 l s q 0 0 1 rg BT 137.00 487.32 Td (Quantitative and Qualitative Disclosures about Market Risk) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 472.32 Td (Item 4.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 470.9833984375 m 235.3154296875 470.9833984375 l s q 0 0 1 rg BT 137.00 472.32 Td (Controls and Procedures) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 457.32 Td (P) Tj ET Q q 0 0 0 rg BT 58.10 457.32 Td (AR) Tj ET Q q 0 0 0 rg BT 71.23 457.32 Td (T) Tj ET Q q 0 0 0 rg BT 76.95 457.32 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 95 455.9833984375 m 199.7216796875 455.9833984375 l s q 0 0 1 rg BT 95.00 457.32 Td (OTHER INFORMA) Tj ET Q q 0 0 1 rg BT 175.84 457.32 Td (TION) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 442.32 Td (Item 1.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 440.9833984375 m 211.140625 440.9833984375 l s q 0 0 1 rg BT 137.00 442.32 Td (Legal Proceedings) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 427.32 Td (Item 1A.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 425.9833984375 m 187.2783203125 425.9833984375 l s q 0 0 1 rg BT 137.00 427.32 Td (Risk Factors) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 412.32 Td (Item 2.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 410.9833984375 m 378.6015625 410.9833984375 l s q 0 0 1 rg BT 137.00 412.32 Td (Unregistered Sales of Equity Securities and Use of Proceeds) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 397.32 Td (Item 3.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 395.9833984375 m 263.9189453125 395.9833984375 l s q 0 0 1 rg BT 137.00 397.32 Td (Defaults upon Senior Securities) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 382.32 Td (Item 4.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 380.9833984375 m 235.3154296875 380.9833984375 l s q 0 0 1 rg BT 137.00 382.32 Td (Mine Safety Disclosures) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 367.32 Td (Item 5.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 365.9833984375 m 210.0322265625 365.9833984375 l s q 0 0 1 rg BT 137.00 367.32 Td (Other Information) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 352.32 Td (Item 6.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 350.9833984375 m 170.3349609375 350.9833984375 l s q 0 0 1 rg BT 137.00 352.32 Td (Exhibits) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 53 335.9833984375 m 114.1181640625 335.9833984375 l s q 0 0 1 rg BT 53.00 337.32 Td (SIGNA) Tj ET Q q 0 0 1 rg BT 82.45 337.32 Td (TURES) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 554 660.9833984375 m 559 660.9833984375 l s q 0 0 1 rg BT 554.00 662.32 Td (2) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 554 645.9833984375 m 559 645.9833984375 l s q 0 0 1 rg BT 554.00 647.32 Td (2) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 554 630.9833984375 m 559 630.9833984375 l s q 0 0 1 rg BT 554.00 632.32 Td (2) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 554 615.9833984375 m 559 615.9833984375 l s q 0 0 1 rg BT 554.00 617.32 Td (3) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 554 590.9833984375 m 559 590.9833984375 l s q 0 0 1 rg BT 554.00 592.32 Td (4) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 554 565.9833984375 m 559 565.9833984375 l s q 0 0 1 rg BT 554.00 567.32 Td (5) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 554 540.9833984375 m 559 540.9833984375 l s q 0 0 1 rg BT 554.00 542.32 Td (6) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 554 515.9833984375 m 559 515.9833984375 l s q 0 0 1 rg BT 554.00 517.32 Td (7) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 500.9833984375 m 559 500.9833984375 l s q 0 0 1 rg BT 549.00 502.32 Td (33) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 485.9833984375 m 559 485.9833984375 l s q 0 0 1 rg BT 549.00 487.32 Td (49) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 470.9833984375 m 559 470.9833984375 l s q 0 0 1 rg BT 549.00 472.32 Td (51) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 455.9833984375 m 559 455.9833984375 l s q 0 0 1 rg BT 549.00 457.32 Td (52) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 440.9833984375 m 559 440.9833984375 l s q 0 0 1 rg BT 549.00 442.32 Td (52) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 425.9833984375 m 559 425.9833984375 l s q 0 0 1 rg BT 549.00 427.32 Td (52) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 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BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 701.25 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 701.25 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 701.25 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 701.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 701.25 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 219.40 683.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 279.22 683.25 Td (TED BALANCE SHEETS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.05 665.25 Td (\(in thousands, except share and per share amounts\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 622.75 358.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 622.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 622.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 622.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 622.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 596.75 358.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 596.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 596.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 596.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 596.75 73.00 -13.00 re f 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0.9333333333333333 1 rg /GS0 gs 408.50 440.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 440.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 440.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 440.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 414.75 358.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 414.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 414.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 414.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 414.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 388.75 358.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 388.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 388.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 388.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 388.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 362.75 358.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 362.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 362.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 362.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 362.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 336.75 358.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 336.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 336.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 336.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 336.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 310.75 358.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 310.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 310.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 310.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 310.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 284.75 358.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 284.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 284.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 284.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 284.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 258.75 358.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 258.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 258.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 258.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 258.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 232.75 358.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 232.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 232.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 232.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 232.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 198.75 358.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 198.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 198.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 198.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 198.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 172.75 358.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 172.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 172.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 172.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 172.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 146.75 358.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 146.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 146.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 146.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 146.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 120.75 358.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 120.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 120.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 120.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 120.75 73.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 635.75 m 485.5 635.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 635.75 m 562.5 635.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 557.75 m 485.5 557.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 557.75 m 562.5 557.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 453.75 m 485.5 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 441.75 m 485.5 441.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 439.75 m 485.5 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 453.75 m 562.5 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 441.75 m 562.5 441.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 439.75 m 562.5 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 388.75 m 485.5 388.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 388.75 m 562.5 388.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 297.75 m 485.5 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 284.75 m 485.5 284.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 297.75 m 562.5 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 284.75 m 562.5 284.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 159.75 m 485.5 159.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 159.75 m 562.5 159.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 159.75 m 485.5 159.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 159.75 m 562.5 159.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 133.75 m 485.5 133.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 133.75 m 562.5 133.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 120.75 m 485.5 120.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 108.75 m 485.5 108.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 106.75 m 485.5 106.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 120.75 m 562.5 120.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 108.75 m 562.5 108.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 106.75 m 562.5 106.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 229.00 640.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.25 639.98 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 493.25 639.98 Td (December) Tj ET Q q 0 0 0 rg BT 527.82 639.98 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 627.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.45 626.98 Td (\(unaudited\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 614.00 Td (Assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 601.00 Td (Real estate held for investment, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.00 601.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.30 601.00 Td (81) Tj ET Q q 0 0 0 rg BT 464.30 601.00 Td (1,338) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.00 601.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 601.00 Td (502,222) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 588.00 Td (Real estate held for sale, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.30 588.00 Td (30,684) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 588.00 Td (30,645) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 575.00 Td (Real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.30 575.00 Td (98,627) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 575.00 Td (90,063) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 562.00 Td (Real estate debt securities, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.30 562.00 Td (17,879) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 562.00 Td (17,751) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 549.00 Td (T) Tj ET Q q 0 0 0 rg BT 75.61 549.00 Td (otal real estate and real estate-related investments, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.30 549.00 Td (958,528) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 549.00 Td (640,681) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 536.00 Td (Cash and cash equivalents) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.30 536.00 Td (49,867) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 536.00 Td (366,512) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 523.00 Td (Restricted cash) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.30 523.00 Td (1) Tj ET Q q 0 0 0 rg BT 464.30 523.00 Td (1,008) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 523.00 Td (10,670) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 510.00 Td (Investments in unconsolidated joint ventures) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.30 510.00 Td (50,986) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 510.00 Td (55,577) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 497.00 Td (Rents and other receivables, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.30 497.00 Td (12,464) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 497.00 Td (8,755) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 484.00 Td (Above-market leases, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.30 484.00 Td (3,587) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 484.00 Td (10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 471.00 Td (Assets related to real estate held for sale, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.30 471.00 Td (1,945) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 471.00 Td (1,965) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 458.00 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.30 458.00 Td (16,069) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 458.00 Td (17,404) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 445.00 Td (T) Tj ET Q q 0 0 0 rg BT 57.61 445.00 Td (otal assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.00 445.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 450.30 445.00 Td (1,104,454) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.00 445.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 527.30 445.00 Td (1,101,574) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 432.00 Td (Liabilities and equity) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 419.00 Td (Notes and bonds payable, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 83.00 406.00 Td (Notes and bonds payable related to real estate held for investment, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.00 406.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.30 406.00 Td (739,650) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.00 406.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 406.00 Td (575,528) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 83.00 393.00 Td (Notes payable related to real estate held for sale, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.30 393.00 Td (27,566) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 393.00 Td (27,515) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 380.00 Td (Notes and bonds payable, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.30 380.00 Td (767,216) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 380.00 Td (603,043) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 367.00 Td (Accounts payable and accrued liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.30 367.00 Td (18,700) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 367.00 Td (16,686) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 354.00 Td (Due to af) Tj ET Q q 0 0 0 rg BT 100.62 354.00 Td (filiate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 474.30 354.00 Td (39) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 354.00 Td (26) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 341.00 Td (Distribution payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 474.30 341.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 341.00 Td (187,914) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 328.00 Td (Below-market leases, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.30 328.00 Td (6,01) Tj ET Q q 0 0 0 rg BT 478.30 328.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 328.00 Td (2,843) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 315.00 Td (Other liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.30 315.00 Td (14,614) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 315.00 Td (16,966) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 302.00 Td (Redeemable common stock payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 302.00 Td (421) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 302.00 Td (8,595) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 289.00 Td (T) Tj ET Q q 0 0 0 rg BT 57.61 289.00 Td (otal liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.30 289.00 Td (807,001) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 289.00 Td (836,073) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 276.00 Td (Commitments and contingencies \(Note ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 180.09 276.00 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 188.09 276.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 263.00 Td (Redeemable common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.30 263.00 Td (2,720) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 263.00 Td (4,518) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 65.00 250.00 Td (Equity) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 237.00 Td (KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 177.58 237.00 Td (, Inc. stockholders’) Tj ET Q q 0 0 0 rg BT 238.30 237.00 Td ( equity) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 224.00 Td (Preferred stock, $.01 par value; 10,000,000 shares authorized, no shares issued and outstanding) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 474.30 224.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 224.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 211.00 Td (Common stock, $.01 par value; 1,000,000,000 shares authorized, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 281.18 211.00 Td (54,682,660) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 317.18 211.00 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.73 211.00 Td (52,053,817) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 368.73 211.00 Td ( shares ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 203.00 Td (issued and outstanding as of) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 161.21 203.00 Td ( June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 207.88 203.00 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 223.43 203.00 Td (December 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 286.29 203.00 Td (, respectively) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.30 203.00 Td (547) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.30 203.00 Td (521) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 190.00 Td (Additional paid-in capital) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.30 190.00 Td (434,935) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 190.00 Td (388,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 177.00 Td (Cumulative distributions and net ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 177.66 177.00 Td (income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.60 177.00 Td (\(143,397) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.30 177.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 530.60 177.00 Td (\(155,454) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 177.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 164.00 Td (Accumulated other comprehensive income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 474.30 164.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 164.00 Td (25,146) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 65.00 151.00 Td (T) Tj ET Q q 0 0 0 rg BT 69.33 151.00 Td (otal KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 189.61 151.00 Td (, Inc. stockholders’) Tj ET Q q 0 0 0 rg BT 250.33 151.00 Td ( equity) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.30 151.00 Td (292,085) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 151.00 Td (259,013) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 138.00 Td (Noncontrolling interests) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.30 138.00 Td (2,648) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 138.00 Td (1,970) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 125.00 Td (T) Tj ET Q q 0 0 0 rg BT 57.33 125.00 Td (otal equity) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.30 125.00 Td (294,733) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 125.00 Td (260,983) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 112.00 Td (T) Tj ET Q q 0 0 0 rg BT 57.33 112.00 Td (otal liabilities and equity) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.00 112.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 450.30 112.00 Td (1,104,454) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.00 112.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 527.30 112.00 Td (1,101,574) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 90.25 Td (See accompanying condensed notes to consolidated financial statements.) Tj ET Q endstream endobj 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 713.25 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 713.25 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 713.25 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 713.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 713.25 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 204.05 659.25 Td (\(in thousands, except share and per share amounts\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 616.75 284.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 616.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 616.75 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 616.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.50 616.75 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 616.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 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538.75 m 505.5 538.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 525.75 m 505.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 538.75 m 562.5 538.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 525.75 m 562.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 421.75 m 391.5 421.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 408.75 m 391.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 421.75 m 448.5 421.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 408.75 m 448.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 421.75 m 505.5 421.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 408.75 m 505.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 421.75 m 562.5 421.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 408.75 m 562.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 330.75 m 391.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 330.75 m 448.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 330.75 m 505.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 330.75 m 562.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 330.75 m 391.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 317.75 m 391.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 330.75 m 448.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 317.75 m 448.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 330.75 m 505.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 317.75 m 505.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 330.75 m 562.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 317.75 m 562.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 291.75 m 391.5 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 279.75 m 391.5 279.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 277.75 m 391.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 291.75 m 448.5 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 279.75 m 448.5 279.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 277.75 m 448.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 291.75 m 505.5 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 279.75 m 505.5 279.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 277.75 m 505.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 291.75 m 562.5 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 279.75 m 562.5 279.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 277.75 m 562.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 266.75 m 391.5 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 264.75 m 391.5 264.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 266.75 m 448.5 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 264.75 m 448.5 264.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 266.75 m 505.5 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 264.75 m 505.5 264.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 266.75 m 562.5 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 264.75 m 562.5 264.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 253.75 m 391.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 251.75 m 391.5 251.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 253.75 m 448.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 251.75 m 448.5 251.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 253.75 m 505.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 251.75 m 505.5 251.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 253.75 m 562.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 251.75 m 562.5 251.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 634.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.35 633.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 354.54 633.98 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.20 633.98 Td (Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 356.50 620.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 413.50 620.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 470.50 620.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.50 620.98 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 608.00 Td (Revenues:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 595.00 Td (Rental income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.00 595.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.25 595.00 Td (18,915) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.00 595.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.25 595.00 Td (31,704) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.00 595.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.25 595.00 Td (34,096) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 512.00 595.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 595.00 Td (62,350) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 582.00 Td (T) Tj ET Q q 0 0 0 rg BT 75.33 582.00 Td (enant reimbursements) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.30 582.00 Td (3,703) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.30 582.00 Td (6,456) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 582.00 Td (6,384) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 582.00 Td (12,094) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 569.00 Td (Other operating income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 376.30 569.00 Td (952) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.30 569.00 Td (987) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 569.00 Td (1,173) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 569.00 Td (2,540) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 556.00 Td (Interest income from real estate debt securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 376.30 556.00 Td (51) Tj ET Q q 0 0 0 rg BT 384.30 556.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.30 556.00 Td (601) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 556.00 Td (1,012) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.30 556.00 Td (760) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 543.00 Td (Dividend income from real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.30 543.00 Td (1,209) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.30 543.00 Td (489) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 543.00 Td (2,260) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.30 543.00 Td (489) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 530.00 Td (T) Tj ET Q q 0 0 0 rg BT 57.33 530.00 Td (otal revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.25 530.00 Td (25,290) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.25 530.00 Td (40,237) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.25 530.00 Td (44,925) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 530.00 Td (78,233) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 517.00 Td (Expenses:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 504.00 Td (Operating, maintenance, and management) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.30 504.00 Td (7,571) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.25 504.00 Td (1) Tj ET Q q 0 0 0 rg BT 427.25 504.00 Td (1,299) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.25 504.00 Td (13,058) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 504.00 Td (22,207) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 491.00 Td (Real estate taxes and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.30 491.00 Td (3,435) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.30 491.00 Td (5,415) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 491.00 Td (5,773) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 491.00 Td (10,152) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 478.00 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 162.82 478.00 Td (filiate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.30 478.00 Td (2,217) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.30 478.00 Td (2,856) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 478.00 Td (4,043) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 478.00 Td (5,603) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 465.00 Td (General and administrative expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.30 465.00 Td (2,250) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.30 465.00 Td (1,378) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 465.00 Td (4,302) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 465.00 Td (3,123) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 452.00 Td (Foreign currency transaction) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 162.96 452.00 Td ( \(gain\) loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 198.52 452.00 Td (, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.60 452.00 Td (\(10,1) Tj ET Q q 0 0 0 rg BT 380.26 452.00 Td (1) Tj ET Q q 0 0 0 rg BT 384.26 452.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.30 452.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.30 452.00 Td (2,426) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.60 452.00 Td (\(9,1) Tj ET Q q 0 0 0 rg BT 494.26 452.00 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.30 452.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 452.00 Td (7,097) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 439.00 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.30 439.00 Td (9,042) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.25 439.00 Td (15,307) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.25 439.00 Td (16,307) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 439.00 Td (29,908) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 426.00 Td (Interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.30 426.00 Td (7,819) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.25 426.00 Td (10,324) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.25 426.00 Td (14,410) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 426.00 Td (19,709) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 413.00 Td (T) Tj ET Q q 0 0 0 rg BT 57.33 413.00 Td (otal expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.25 413.00 Td (22,223) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.25 413.00 Td (49,005) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.25 413.00 Td (48,779) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 413.00 Td (97,799) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 400.00 Td (Other) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.21 400.00 Td ( income \(loss\):) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 387.00 Td (Income from unconsolidated joint venture) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 376.30 387.00 Td (131) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.30 387.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.30 387.00 Td (185) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.30 387.00 Td (1,869) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 374.00 Td (Equity in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 102.55 374.00 Td (loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 115.00 374.00 Td ( of unconsolidated joint ventures) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.60 374.00 Td (\(2,373) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.30 374.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 424.60 374.00 Td (\(1,622) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.30 374.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.60 374.00 Td (\(4,751) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.30 374.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.60 374.00 Td (\(1,776) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.30 374.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 361.00 Td (Other interest income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 376.30 361.00 Td (419) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.30 361.00 Td (171) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.30 361.00 Td (1,349) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.30 361.00 Td (196) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 348.00 Td (Unrealized) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 106.09 348.00 Td ( gain \(loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 141.64 348.00 Td ( on real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.30 348.00 Td (8,724) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.30 348.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.60 348.00 Td (\(7,287) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.30 348.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 348.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 335.00 Td (Gain on sale of real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.30 335.00 Td (25) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.25 335.00 Td (34,028) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.30 335.00 Td (649) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 335.00 Td (34,028) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 322.00 Td (T) Tj ET Q q 0 0 0 rg BT 57.33 322.00 Td (otal other) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.76 322.00 Td ( income \(loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 133.09 322.00 Td (, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.30 322.00 Td (6,926) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.25 322.00 Td (32,577) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.60 322.00 Td (\(9,855) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.30 322.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 322.00 Td (34,317) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 309.00 Td (Net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.55 309.00 Td ( income \(loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.30 309.00 Td (9,993) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.25 309.00 Td (23,809) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.60 309.00 Td (\(13,709) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.30 309.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 309.00 Td (14,751) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 296.00 Td (Net ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 84.55 296.00 Td (loss ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 99.00 296.00 Td (attributable to noncontrolling interests) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.30 296.00 Td (43) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.30 296.00 Td (37) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.30 296.00 Td (64) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.30 296.00 Td (3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 283.00 Td (Net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.55 283.00 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 66.55 283.00 Td (income \() Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 94.76 283.00 Td (loss\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 111.88 283.00 Td (attributable to common stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.00 283.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 366.25 283.00 Td (10,036) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.00 283.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.25 283.00 Td (23,846) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.00 283.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.60 283.00 Td (\(13,645) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.30 283.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 512.00 283.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 283.00 Td (14,754) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 270.00 Td (Net ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 66.55 270.00 Td (income \() Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 94.76 270.00 Td (loss\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 111.88 270.00 Td (per common share, basic and diluted) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.00 270.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.30 270.00 Td (0.16) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.00 270.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.30 270.00 Td (0.42) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.00 270.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.60 270.00 Td (\(0.22) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.30 270.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 512.00 270.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.30 270.00 Td (0.26) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 257.00 Td (W) Tj ET Q q 0 0 0 rg BT 59.91 257.00 Td (eighted-average number of common shares outstanding, basic and diluted) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.25 257.00 Td (61,910,602) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.25 257.00 Td (56,714,180) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.25 257.00 Td (62,216,998) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.25 257.00 Td (56,748,125) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 235.25 Td (See accompanying condensed notes to consolidated financial statements.) 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Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 137.40 695.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 197.22 695.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 231.78 695.25 Td (A) Tj ET Q q 0 0 0 rg BT 238.25 695.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 303.17 695.25 Td ( COMPREHENSIVE INCOME \(LOSS\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 677.25 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 659.25 Td (\(in thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 616.75 253.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.00 616.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.00 616.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.00 616.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.00 616.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 616.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.00 616.75 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg 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538.75 m 433 538.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 526.75 m 433 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 524.75 m 433 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 538.75 m 498 538.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 526.75 m 498 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 524.75 m 498 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 538.75 m 563 538.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 526.75 m 563 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 524.75 m 563 524.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 634.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 317.85 633.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 331.04 633.98 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.70 633.98 Td (Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 329.00 620.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 394.00 620.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 620.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.00 620.98 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 608.00 Td (Net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.05 608.00 Td ( income \(loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.50 608.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 346.80 608.00 Td (9,993) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.50 608.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 608.00 Td (23,809) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.50 608.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.10 608.00 Td (\(13,709) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.80 608.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 504.50 608.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 608.00 Td (14,751) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 595.00 Td (Other comprehensive ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 123.14 595.00 Td (income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 146.69 595.00 Td (:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 582.00 Td (Unrealized ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.59 582.00 Td (gain ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 117.36 582.00 Td (on real estate securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.80 582.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.80 582.00 Td (849) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.80 582.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 582.00 Td (849) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 569.00 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 569.00 Td (otal other comprehensive ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 139.69 569.00 Td (income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.80 569.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.80 569.00 Td (849) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.80 569.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 569.00 Td (849) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 556.00 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 556.00 Td (otal comprehensive) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 119.25 556.00 Td ( income \(loss\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 346.80 556.00 Td (9,993) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 556.00 Td (24,658) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.10 556.00 Td (\(13,709) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.80 556.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 556.00 Td (15,600) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 543.00 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 543.00 Td (otal comprehensive ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 121.25 543.00 Td (loss ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 135.70 543.00 Td (attributable to noncontrolling interests) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.80 543.00 Td (43) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.80 543.00 Td (37) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.80 543.00 Td (64) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 543.00 Td (3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 530.00 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 530.00 Td (otal comprehensive ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 121.25 530.00 Td (income \(loss\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 166.57 530.00 Td (attributable to common stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.50 530.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.80 530.00 Td (10,036) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.50 530.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 530.00 Td (24,695) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.50 530.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.10 530.00 Td (\(13,645) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.80 530.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 504.50 530.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 530.00 Td (15,603) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 508.25 Td (See accompanying condensed notes to consolidated financial statements.) 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Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 202.30 695.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 262.12 695.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 296.68 695.25 Td (A) Tj ET Q q 0 0 0 rg BT 303.15 695.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 368.07 695.25 Td ( EQUITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.35 677.25 Td (For the ) Tj ET Q q 0 0 0 rg BT 174.09 677.25 Td (Y) Tj ET Q q 0 0 0 rg BT 180.31 677.25 Td (ear Ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.06 677.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.65 677.25 Td ( and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.80 677.25 Td (Six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.14 677.25 Td ( Months Ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.75 677.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.58 677.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 659.25 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.65 641.25 Td (\(dollars in 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M 424 598.75 m 466 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 598.75 m 516 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 598.75 m 563 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 171 476.75 m 210 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214 476.75 m 253 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 476.75 m 300 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 476.75 m 357 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361 476.75 m 420 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 476.75 m 466 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 476.75 m 516 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 476.75 m 563 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 171 371.75 m 210 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 171 361.75 m 210 361.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 171 359.75 m 210 359.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214 371.75 m 253 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214 361.75 m 253 361.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214 359.75 m 253 359.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 371.75 m 300 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 361.75 m 300 361.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 359.75 m 300 359.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 371.75 m 357 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 361.75 m 357 361.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 359.75 m 357 359.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361 371.75 m 420 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361 361.75 m 420 361.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361 359.75 m 420 359.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 371.75 m 466 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 361.75 m 466 361.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 359.75 m 466 359.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 371.75 m 516 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 361.75 m 516 361.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 359.75 m 516 359.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 371.75 m 563 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 361.75 m 563 361.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 359.75 m 563 359.75 l s BT /F2 6.00 Tf ET q 0 0 0 rg BT 191.70 613.59 Td (Common Stock) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 264.30 614.19 Td (Additional) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 268.65 608.19 Td (Paid-in ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 268.45 602.19 Td (Capital) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 315.00 614.19 Td (Cumulative) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 307.55 608.19 Td (Distributions and) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 315.25 602.19 Td (Net Income) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 364.60 614.19 Td (Accumulated Other) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 370.05 608.19 Td (Compr) Tj ET Q q 0 0 0 rg BT 388.33 608.19 Td (ehensive) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 380.50 602.19 Td (Income) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 437.90 614.19 Td (T) Tj ET Q q 0 0 0 rg BT 441.63 614.19 Td (otal) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 426.95 608.19 Td (Stockholders') Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 435.80 602.19 Td (Equity) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 473.20 608.59 Td (Noncontr) Tj ET Q q 0 0 0 rg BT 497.48 608.59 Td (olling) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 481.35 602.59 Td (Inter) Tj ET Q q 0 0 0 rg BT 494.29 602.59 Td (ests) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 525.00 602.59 Td (T) Tj ET Q q 0 0 0 rg BT 528.73 602.59 Td (otal Equity) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 110.00 602.59 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 181.35 602.59 Td (Shar) Tj ET Q q 0 0 0 rg BT 193.63 602.59 Td (es) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 221.30 602.59 Td (Amounts) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 579.59 Td (Balance, December 31, 2016) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 180.50 579.59 Td (56,775,767) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 216.50 579.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 241.50 579.59 Td (568) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 259.50 579.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 278.00 579.59 Td (455,373) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 306.50 579.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 333.00 579.59 Td (\(162,289) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 354.50 579.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 363.50 579.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 579.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 426.50 579.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 444.00 579.59 Td (293,652) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 472.50 579.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 500.00 579.59 Td (1,898) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 522.50 579.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 541.00 579.59 Td (295,550) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 568.59 Td (Net income \(loss\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 201.50 568.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.50 568.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 291.50 568.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 335.00 568.59 Td (210,644) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 568.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 444.00 568.59 Td (210,644) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.50 568.59 Td (\(64) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 513.50 568.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 541.00 568.59 Td (210,580) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 557.59 Td (Other comprehensive income) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 201.50 557.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.50 557.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 291.50 557.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 348.50 557.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 401.00 557.59 Td (25,146) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 447.00 557.59 Td (25,146) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 507.50 557.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 544.00 557.59 Td (25,146) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 546.59 Td (Issuance of common stock) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 188.00 546.59 Td (585,192) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 247.50 546.59 Td (6) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 284.00 546.59 Td (8,660) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 348.50 546.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 546.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 450.00 546.59 Td (8,666) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 507.50 546.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 547.00 546.59 Td (8,666) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 535.59 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 535.59 Td (ransfers to redeemable common stock) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 201.50 535.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.50 535.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 286.50 535.59 Td (\(498) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 297.50 535.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 348.50 535.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 535.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 452.50 535.59 Td (\(498) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 463.50 535.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 507.50 535.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 549.50 535.59 Td (\(498) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 535.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 524.59 Td (Redemptions of common stock) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 181.50 524.59 Td (\(5,307,142) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 207.50 524.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 242.50 524.59 Td (\(53) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 250.50 524.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.00 524.59 Td (\(74,727) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 297.50 524.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 348.50 524.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 524.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 445.00 524.59 Td (\(74,780) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 463.50 524.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 507.50 524.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 542.00 524.59 Td (\(74,780) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 524.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 513.59 Td (Distributions declared) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 201.50 513.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.50 513.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 291.50 513.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 333.00 513.59 Td (\(203,809) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 354.50 513.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 513.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 442.00 513.59 Td (\(203,809) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 463.50 513.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 507.50 513.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 539.00 513.59 Td (\(203,809) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 513.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 502.59 Td (Other of) Tj ET Q q 0 0 0 rg BT 72.55 502.59 Td (fering costs) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 201.50 502.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.50 502.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 292.50 502.59 Td (\(8) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 297.50 502.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 348.50 502.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 502.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 458.50 502.59 Td (\(8) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 463.50 502.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 507.50 502.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 555.50 502.59 Td (\(8) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 502.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 491.59 Td (Noncontrolling interests contributions) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 201.50 491.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.50 491.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 291.50 491.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 348.50 491.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 491.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 457.50 491.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 504.50 491.59 Td (158) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 551.50 491.59 Td (158) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 480.59 Td (Distributions to noncontrolling interests) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 201.50 480.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.50 480.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 291.50 480.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 348.50 480.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 480.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 457.50 480.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.50 480.59 Td (\(22) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 513.50 480.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 552.50 480.59 Td (\(22) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 480.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 469.59 Td (Balance, December 31, 2017) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 180.50 469.59 Td (52,053,817) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 216.50 469.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 241.50 469.59 Td (521) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 259.50 469.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 278.00 469.59 Td (388,800) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 306.50 469.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 333.00 469.59 Td (\(155,454) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 354.50 469.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 363.50 469.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 401.00 469.59 Td (25,146) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 426.50 469.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 444.00 469.59 Td (259,013) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 472.50 469.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 500.00 469.59 Td (1,970) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 522.50 469.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 541.00 469.59 Td (260,983) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 458.59 Td (Cumulative ef) Tj ET Q q 0 0 0 rg BT 86.55 458.59 Td (fect adjustments to retained ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 452.59 Td (earnings) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 201.50 452.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.50 452.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 291.50 452.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 338.00 452.59 Td (27,618) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 399.00 452.59 Td (\(25,146) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 417.50 452.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 450.00 452.59 Td (2,472) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 507.50 452.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 547.00 452.59 Td (2,472) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 441.59 Td (Net) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 61.16 441.59 Td ( loss) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 201.50 441.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.50 441.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 291.50 441.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 336.00 441.59 Td (\(13,645) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 354.50 441.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 441.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 445.00 441.59 Td (\(13,645) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 463.50 441.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.50 441.59 Td (\(64) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 513.50 441.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 542.00 441.59 Td (\(13,709) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 441.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 430.59 Td (Issuance of common stock) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 191.00 430.59 Td (83,855) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 247.50 430.59 Td (1) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 288.50 430.59 Td (963) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 348.50 430.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 430.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 454.50 430.59 Td (964) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 507.50 430.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 551.50 430.59 Td (964) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 419.59 Td (Stock distribution issued) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 180.50 419.59 Td (13,069,487) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 241.50 419.59 Td (130) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 278.00 419.59 Td (150,169) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 348.50 419.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 419.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 444.00 419.59 Td (150,299) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 507.50 419.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 541.00 419.59 Td (150,299) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 408.59 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 408.59 Td (ransfers ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 76.44 408.59 Td (from) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 88.11 408.59 Td ( redeemable common stock) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 201.50 408.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.50 408.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 284.00 408.59 Td (9,969) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 348.50 408.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 408.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 450.00 408.59 Td (9,969) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 507.50 408.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 547.00 408.59 Td (9,969) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 397.59 Td (Redemptions of common stock) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 178.50 397.59 Td (\(10,524,499) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 207.50 397.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 239.50 397.59 Td (\(105) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 250.50 397.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 276.00 397.59 Td (\(1) Tj ET Q q 0 0 0 rg BT 281.00 397.59 Td (14,966) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 297.50 397.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 348.50 397.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 397.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 442.00 397.59 Td (\(1) Tj ET Q q 0 0 0 rg BT 447.00 397.59 Td (15,071) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 463.50 397.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 507.50 397.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 539.00 397.59 Td (\(1) Tj ET Q q 0 0 0 rg BT 544.00 397.59 Td (15,071) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 397.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 386.59 Td (Distributions declared) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 201.50 386.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.50 386.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 291.50 386.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 339.00 386.59 Td (\(1,916) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 354.50 386.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 386.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 448.00 386.59 Td (\(1,916) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 463.50 386.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 507.50 386.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 545.00 386.59 Td (\(1,916) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 386.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 375.59 Td (Noncontrolling interests contributions) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 201.50 375.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.50 375.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 291.50 375.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 348.50 375.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 375.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 457.50 375.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 504.50 375.59 Td (742) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 551.50 375.59 Td (742) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 364.59 Td (Balance) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 71.82 364.59 Td (, June 30, 2018) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 180.50 364.59 Td (54,682,660) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 216.50 364.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 241.50 364.59 Td (547) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 259.50 364.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 278.00 364.59 Td (434,935) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 306.50 364.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 333.00 364.59 Td (\(143,397) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 354.50 364.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 363.50 364.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 411.50 364.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 426.50 364.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 444.00 364.59 Td (292,085) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 472.50 364.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 500.00 364.59 Td (2,648) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 522.50 364.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 541.00 364.59 Td (294,733) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 343.25 Td (See accompanying condensed notes to consolidated financial statements.) Tj ET Q endstream endobj 15 0 obj <>] /Rotate 0 /Contents 16 0 R>> endobj 16 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /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 201.80 713.25 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 713.25 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 713.25 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 713.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 713.25 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 282.95 680.25 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 665.25 Td (\(in thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 632.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 632.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 632.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 632.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 632.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 610.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 610.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 610.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 610.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 610.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 588.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 588.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 588.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 588.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 588.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 566.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 566.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 566.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 566.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 566.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 544.75 373.00 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gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 500.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 478.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 478.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 478.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 478.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 478.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 456.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 456.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 456.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 456.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 456.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 434.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 434.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 434.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 434.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 434.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 412.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 412.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 412.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 412.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 412.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 390.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 390.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 390.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 390.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 390.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 368.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 368.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 368.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 368.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 368.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 346.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 346.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 346.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 346.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 346.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 324.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 324.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 324.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 324.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 324.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 302.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 302.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 302.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 302.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 302.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 280.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 280.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 280.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 280.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 280.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 258.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 258.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 258.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 258.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 258.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 236.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 236.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 236.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 236.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 236.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 214.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 214.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 214.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 214.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 214.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 192.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 192.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 192.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 192.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 192.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 170.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 170.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 170.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 170.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 170.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 148.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 148.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 148.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 148.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 148.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 126.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 126.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 126.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 126.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 126.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 104.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 104.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 104.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 104.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 104.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 82.75 373.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 82.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 82.75 66.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 82.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 82.75 66.00 -11.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 643.75 m 493 643.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 643.75 m 497 643.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 643.75 m 563 643.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 632.75 m 493 632.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 632.75 m 563 632.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 390.75 m 493 390.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 379.75 m 493 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 390.75 m 563 390.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 379.75 m 563 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 236.75 m 493 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 225.75 m 493 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 236.75 m 563 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 225.75 m 563 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 126.75 m 493 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 115.75 m 493 115.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 126.75 m 563 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 115.75 m 563 115.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 104.75 m 493 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 104.75 m 563 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 82.75 m 493 82.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 82.75 m 493 82.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 72.75 m 493 72.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 70.75 m 493 70.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 82.75 m 563 82.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 72.75 m 563 72.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 70.75 m 563 70.75 l s BT /F2 7.50 Tf ET q 0 0 0 rg BT 450.60 647.17 Td (Six Months Ended June 30,) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 236.00 636.17 Td ( ) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 452.00 636.17 Td (2018) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 522.00 636.17 Td (2017) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 625.05 Td (Cash Flows from Operating ) Tj ET Q q 0 0 0 rg BT 137.50 625.05 Td (Activities:) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 614.05 Td (Net ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 83.20 614.05 Td (\(loss\) income) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 614.05 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.85 614.05 Td (\(13,709) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 614.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 614.05 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.35 614.05 Td (14,751) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 603.05 Td (Adjustments to reconcile net) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 156.52 603.05 Td ( \(loss\) income) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 199.02 603.05 Td ( to net cash ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 234.84 603.05 Td (provided by) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 270.88 603.05 Td ( operating activities:) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 592.05 Td (Loss due to property damages) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 478.75 592.05 Td (600) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 548.75 592.05 Td (430) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 581.05 Td (Equity in ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 130.08 581.05 Td (loss) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 141.76 581.05 Td ( of unconsolidated joint ventures) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 473.10 581.05 Td (4,751) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 543.10 581.05 Td (1,776) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 570.05 Td (Depreciation and amortization) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 469.35 570.05 Td (16,307) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.35 570.05 Td (29,908) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 559.05 Td (Unrealized) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 133.40 559.05 Td ( loss ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 148.82 559.05 Td (on real estate equity securities) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 473.10 559.05 Td (7,287) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 552.50 559.05 Td (—) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 548.05 Td (Gain on real estate) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 476.25 548.05 Td (\(649) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 548.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 536.85 548.05 Td (\(34,028) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 548.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 537.05 Td (Unrealized) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 133.40 537.05 Td ( loss ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 148.82 537.05 Td (on interest rate caps) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 482.50 537.05 Td (31) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 552.50 537.05 Td (88) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 526.05 Td (Deferred rent) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 526.05 Td (\(1,670) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 526.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 526.05 Td (\(1,370) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 526.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 515.05 Td (Bad debt ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 129.24 515.05 Td (recovery) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 476.25 515.05 Td (\(218) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 515.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 550.00 515.05 Td (\(58) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 515.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 504.05 Td (Amortization of above- and below-market leases, net) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 476.25 504.05 Td (\(500) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 504.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 504.05 Td (\(2,037) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 504.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 493.05 Td (Amortization of deferred financing costs) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 473.10 493.05 Td (1,699) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 543.10 493.05 Td (2,592) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 482.05 Td (Interest accretion on real estate debt securities) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 476.25 482.05 Td (\(128) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 482.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 546.25 482.05 Td (\(348) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 482.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 471.05 Td (Net amortization of discount and \(premium\) on bond and notes payable) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 482.50 471.05 Td (29) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 552.50 471.05 Td (23) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 460.05 Td (Foreign currency transaction) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 186.72 460.05 Td ( \(gain\) loss) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 220.05 460.05 Td (, net) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 460.05 Td (\(9,1) Tj ET Q q 0 0 0 rg BT 482.47 460.05 Td (14) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 460.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 543.10 460.05 Td (7,097) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 88.50 449.05 Td (Changes in assets and liabilities:) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 438.05 Td (Rents and other receivables) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 438.05 Td (\(1,854) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 438.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 438.05 Td (\(1,524) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 438.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 427.05 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 427.05 Td (\(3,606) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 427.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 427.05 Td (\(3,618) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 427.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 416.05 Td (Accounts payable and accrued liabilities) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 478.75 416.05 Td (91) Tj ET Q q 0 0 0 rg BT 486.25 416.05 Td (1) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 416.05 Td (\(1,090) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 416.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 405.05 Td (Due to af) Tj ET Q q 0 0 0 rg BT 128.27 405.05 Td (filiates) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 482.50 405.05 Td (13) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 550.00 405.05 Td (\(29) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 405.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 100.50 394.05 Td (Other liabilities) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 478.75 394.05 Td (388) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 548.75 394.05 Td (294) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 112.50 383.05 Td (Net cash) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 138.53 383.05 Td ( provided by) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 176.44 383.05 Td ( operating activities) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 478.75 383.05 Td (568) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.35 383.05 Td (12,857) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 372.05 Td (Cash Flows from Investing ) Tj ET Q q 0 0 0 rg BT 135.42 372.05 Td (Activities:) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 361.05 Td (Acquisitions of real estate) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 463.10 361.05 Td (\(312,348) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 361.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 536.85 361.05 Td (\(82,235) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 361.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 350.05 Td (Improvements to real estate) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.85 350.05 Td (\(14,108) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 350.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 536.85 350.05 Td (\(18,784) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 350.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 339.05 Td (Proceeds from sales of real estate, net) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 473.10 339.05 Td (2,567) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.35 339.05 Td (94,914) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 328.05 Td (Reimbursement of construction costs) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 473.10 328.05 Td (1,636) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 552.50 328.05 Td (—) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 317.05 Td (Insurance proceeds received for property damages) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 482.50 317.05 Td (—) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 548.75 317.05 Td (744) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 306.05 Td (Purchase of interest rate cap) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 476.25 306.05 Td (\(163) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 306.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 546.25 306.05 Td (\(107) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 306.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 295.05 Td (Contributions to unconsolidated joint venture) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 295.05 Td (\(1,320) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 295.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 552.50 295.05 Td (—) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 284.05 Td (Distributions of capital from unconsolidated joint venture) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 473.10 284.05 Td (1,160) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.35 284.05 Td (59,157) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 273.05 Td (Investment in real estate equity securities) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.85 273.05 Td (\(15,851) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 273.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 536.85 273.05 Td (\(38,995) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 273.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 262.05 Td (Investment in real estate debt securities, net) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 482.50 262.05 Td (—) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 536.85 262.05 Td (\(12,514) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 262.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 251.05 Td (Proceeds for future development obligations) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 482.50 251.05 Td (—) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 543.10 251.05 Td (1,368) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 240.05 Td (Funding of development obligations) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 476.25 240.05 Td (\(892) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 240.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 546.25 240.05 Td (\(753) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 240.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 112.50 229.05 Td (Net cash ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 140.41 229.05 Td (\(used in\) provided by) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 204.77 229.05 Td ( investing activities) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 463.10 229.05 Td (\(339,319) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 229.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 543.10 229.05 Td (2,795) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 218.05 Td (Cash Flows from Financing ) Tj ET Q q 0 0 0 rg BT 137.50 218.05 Td (Activities:) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 207.05 Td (Proceeds from notes and bonds payable) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 465.60 207.05 Td (184,351) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 535.60 207.05 Td (124,556) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 196.05 Td (Principal payments on notes and bonds payable) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 196.05 Td (\(5,71) Tj ET Q q 0 0 0 rg BT 486.22 196.05 Td (1) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 196.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 536.85 196.05 Td (\(69,019) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 196.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 185.05 Td (Payments of deferred financing costs) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 185.05 Td (\(2,702) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 185.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 185.05 Td (\(1,793) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 185.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 174.05 Td (Payments to redeem common stock) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 463.10 174.05 Td (\(1) Tj ET Q q 0 0 0 rg BT 469.35 174.05 Td (15,071) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 174.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 174.05 Td (\(7,51) Tj ET Q q 0 0 0 rg BT 556.22 174.05 Td (1) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 174.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 163.05 Td (Payments of prepaid other of) Tj ET Q q 0 0 0 rg BT 157.43 163.05 Td (fering costs) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 476.25 163.05 Td (\(295) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 163.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 546.25 163.05 Td (\(196) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 163.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 152.05 Td (Distributions paid) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.85 152.05 Td (\(38,567) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 152.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 152.05 Td (\(4,728) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 152.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 141.05 Td (Noncontrolling interests contributions) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 478.75 141.05 Td (742) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 552.50 141.05 Td (1) Tj ET Q q 0 0 0 rg BT 556.25 141.05 Td (1) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 70.50 130.05 Td (Distributions to noncontrolling interests) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 482.50 130.05 Td (—) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 550.00 130.05 Td (\(10) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 130.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 112.50 119.05 Td (Net cash) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 138.53 119.05 Td ( provided by) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 176.44 119.05 Td ( financing activities) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 469.35 119.05 Td (22,747) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.35 119.05 Td (41,310) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 108.05 Td (Ef) Tj ET Q q 0 0 0 rg BT 59.44 108.05 Td (fect of exchange rate changes on cash, cash equivalents and restricted cash) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 476.25 108.05 Td (\(303) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 108.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 548.75 108.05 Td (596) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 97.05 Td (Net) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 63.33 97.05 Td ( \(decrease\) increase) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 122.45 97.05 Td ( in cash, cash equivalents and restricted cash) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 463.10 97.05 Td (\(316,307) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 97.05 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.35 97.05 Td (57,558) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 86.05 Td (Cash, cash equivalents and restricted cash, beginning of period) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 465.60 86.05 Td (377,182) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 539.35 86.05 Td (64,450) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 75.05 Td (Cash, cash equivalents and restricted cash, end of period) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 75.05 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 469.35 75.05 Td (60,875) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 75.05 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 535.60 75.05 Td (122,008) Tj ET Q BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 174.50 55.45 Td (See accompanying condensed notes to consolidated financial statements.) Tj ET Q endstream endobj 17 0 obj <>] /Rotate 0 /Contents 18 0 R>> endobj 18 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 142.65 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 244.16 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 250.65 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 320.75 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 399.93 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 413.92 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 420.40 688.60 Td (TEMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 24.60 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 624.60 Td (1. ) Tj ET Q q 0 0 0 rg BT 72.00 624.60 Td (ORGANIZA) Tj ET Q q 0 0 0 rg BT 126.26 624.60 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 606.60 Td (KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 204.86 606.60 Td (, Inc. \(the “Company”\) was formed on October 8, 2008 as a Maryland corporation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.60 Td (elected to be taxed as a real estate investment trust \(“REIT”\) beginning with the taxable year ended December 31, 2010. ) Tj ET Q q 0 0 0 rg BT 532.46 594.60 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.60 Td (Company conducts its business primarily through KBS Strategic Opportunity \(BVI\) Holdings, Ltd. \(“KBS Strategic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.60 Td (Opportunity BVI”\), a private company limited by shares according to the British ) Tj ET Q q 0 0 0 rg BT 374.52 570.60 Td (V) Tj ET Q q 0 0 0 rg BT 381.14 570.60 Td (ir) Tj ET Q q 0 0 0 rg BT 387.07 570.60 Td (gin Islands Business Companies ) Tj ET Q q 0 0 0 rg BT 518.18 570.60 Td (Act, 2004, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.60 Td (which was incorporated on December 18, 2015 and is authorized to issue a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.52 558.60 Td (50,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.02 558.60 Td ( common shares with no par ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.60 Td (value. Upon incorporation, KBS Strategic Opportunity BVI issued one certificate containing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.47 546.60 Td (10,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.97 546.60 Td ( common shares with no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.60 Td (par value to KBS Strategic Opportunity Limited Partnership \(the “Operating Partnership”\), a Delaware limited partnership ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.60 Td (formed on December 10, 2008. ) Tj ET Q q 0 0 0 rg BT 176.78 522.60 Td (The Company is the sole general partner of, and owns a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.27 522.60 Td (0.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.10 522.60 Td ( partnership interest in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.60 Td (Operating Partnership. KBS Strategic Opportunity Holdings LLC \(“REIT) Tj ET Q q 0 0 0 rg BT 344.28 510.60 Td ( Holdings”\), a Delaware limited liability company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.60 Td (formed on December 9, 2008, owns the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.33 498.60 Td (99.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.16 498.60 Td ( interest in the Operating Partnership and is its sole limited partner) Tj ET Q q 0 0 0 rg BT 544.38 498.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.60 Td (The Company is the sole member and manager of REIT) Tj ET Q q 0 0 0 rg BT 273.42 486.60 Td ( Holdings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 468.60 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 49.50 456.60 Td (Advisors LLC \(the “Advisor”\), an af) Tj ET Q q 0 0 0 rg BT 196.50 456.60 Td (filiate of the Company) Tj ET Q q 0 0 0 rg BT 286.11 456.60 Td (, pursuant to an advisory agreement the Company renewed with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 444.60 Td (Advisor on October 8, 2017 \(the “Advisory ) Tj ET Q q 0 0 0 rg BT 225.58 444.60 Td (Agreement”\). ) Tj ET Q q 0 0 0 rg BT 282.60 444.60 Td (The ) Tj ET Q q 0 0 0 rg BT 300.09 444.60 Td (Advisor conducts the Company’) Tj ET Q q 0 0 0 rg BT 429.24 444.60 Td (s operations and manages its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 432.60 Td (portfolio of real estate, real estate-related debt securities and other real estate-related investments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 414.60 Td (On January 8, 2009, the Company filed a registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 378.24 414.60 Td (1 with the Securities and Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 402.60 Td (Commission \(the “SEC”\) to of) Tj ET Q q 0 0 0 rg BT 172.09 402.60 Td (fer a minimum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.85 402.60 Td (250,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.35 402.60 Td ( shares and a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.10 402.60 Td (140,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.10 402.60 Td ( shares of common stock for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.60 Td (sale to the public \(the “Of) Tj ET Q q 0 0 0 rg BT 152.89 390.60 Td (fering”\), of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.31 390.60 Td (100,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.31 390.60 Td ( shares were registered in a primary of) Tj ET Q q 0 0 0 rg BT 430.67 390.60 Td (fering and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.99 390.60 Td (40,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.99 390.60 Td ( shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.60 Td (were registered to be sold under the Company’) Tj ET Q q 0 0 0 rg BT 236.39 378.60 Td (s dividend reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 356.46 378.60 Td (The SEC declared the Company’) Tj ET Q q 0 0 0 rg BT 488.09 378.60 Td (s registration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.60 Td (statement ef) Tj ET Q q 0 0 0 rg BT 97.91 366.60 Td (fective on November 20, 2009. ) Tj ET Q q 0 0 0 rg BT 224.64 366.60 Td (The Company ceased of) Tj ET Q q 0 0 0 rg BT 321.37 366.60 Td (fering shares of common stock in its primary of) Tj ET Q q 0 0 0 rg BT 511.70 366.60 Td (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.60 Td (November 14, 2012 and continues to of) Tj ET Q q 0 0 0 rg BT 207.90 354.60 Td (fer shares under its dividend reinvestment plan. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 336.60 Td (The Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.60 336.60 Td (56,584,976) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.60 336.60 Td ( shares of common stock in its primary of) Tj ET Q q 0 0 0 rg BT 362.06 336.60 Td (fering for gross of) Tj ET Q q 0 0 0 rg BT 434.36 336.60 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.60 336.60 Td ($561.7 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.60 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 324.60 Td (. ) Tj ET Q q 0 0 0 rg BT 82.84 324.60 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.28 324.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.11 324.60 Td (, the Company had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.33 324.60 Td (6,704,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.33 324.60 Td ( shares of common stock under its dividend reinvestment plan for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.60 Td (gross of) Tj ET Q q 0 0 0 rg BT 81.26 312.60 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.51 312.60 Td ($75.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.40 312.60 Td (. ) Tj ET Q q 0 0 0 rg BT 214.85 312.60 Td (Also, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.40 312.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.23 312.60 Td (, the Company had redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.63 312.60 Td (21,972,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.63 312.60 Td ( shares for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.78 312.60 Td ($266.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.60 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 300.60 Td (. ) Tj ET Q q 0 0 0 rg BT 82.84 300.60 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.28 300.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.11 300.60 Td (, the Company had issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.66 300.60 Td (13,069,487) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.66 300.60 Td ( shares of common stock in connection with the December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.60 Td (2017 special dividend. ) Tj ET Q q 0 0 0 rg BT 141.71 288.60 Td (Additionally) Tj ET Q q 0 0 0 rg BT 191.61 288.60 Td (, on December 29, 201) Tj ET Q q 0 0 0 rg BT 282.32 288.60 Td (1 and October 23, 2012, the Company issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.07 288.60 Td (220,994) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.57 288.60 Td ( shares and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 276.60 Td (55,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 276.60 Td ( shares of common stock, respectively) Tj ET Q q 0 0 0 rg BT 229.08 276.60 Td (, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.25 276.60 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.14 276.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.58 276.60 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.47 276.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 418.13 276.60 Td (, in private transactions exempt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 264.60 Td (from the registration requirements pursuant to Section 4\(2\) of the Securities ) Tj ET Q q 0 0 0 rg BT 354.70 264.60 Td (Act of 1933.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 246.60 Td (On March 2, 2016, KBS Strategic Opportunity BVI filed a final prospectus with the Israel Securities ) Tj ET Q q 0 0 0 rg BT 476.37 246.60 Td (Authority for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.60 Td (proposed of) Tj ET Q q 0 0 0 rg BT 96.81 234.60 Td (fering of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.79 234.60 Td (1,000,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.29 234.60 Td ( Israeli new Shekels of Series ) Tj ET Q q 0 0 0 rg BT 334.27 234.60 Td (A) Tj ET Q q 0 0 0 rg BT 340.94 234.60 Td ( debentures \(the “Debentures”\) at an annual interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.60 Td (rate not to exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.80 222.60 Td (4.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.63 222.60 Td (. On March 1, 2016, KBS Strategic Opportunity BVI commenced the institutional tender of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.60 Td (Debentures and accepted application for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.04 210.60 Td (842.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.93 210.60 Td ( Israeli new Shekels. On March 7, 2016, KBS Strategic Opportunity BVI ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.60 Td (commenced the public tender of the Debentures and accepted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 198.60 Td (127.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.89 198.60 Td ( Israeli new Shekels. In the aggregate, KBS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.60 Td (Strategic Opportunity BVI accepted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.12 186.60 Td (970.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.01 186.60 Td ( Israeli new Shekels \(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.36 186.60 Td ($249.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.25 186.60 Td ( as of March 8, 2016\) in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.60 Td (both the institutional and public tenders at an annual interest rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.64 174.60 Td (4.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.47 174.60 Td (. KBS Strategic Opportunity BVI issued the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.60 Td (Debentures on March 8, 2016. ) Tj ET Q q 0 0 0 rg BT 173.46 162.60 Td (The terms of the Debentures require principal installment payments equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.86 162.60 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.19 162.60 Td ( of the face ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.60 Td (value of the Debentures on March 1st of each year from 2019 to 2023. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 132.60 Td (In connection with the above-referenced of) Tj ET Q q 0 0 0 rg BT 244.24 132.60 Td (fering, on March 8, 2016, the Operating Partnership assigned to KBS Strategic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.60 Td (Opportunity BVI all of its interests in the subsidiaries through which the Company indirectly owns all of its real estate and real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.60 Td (estate-related investments. ) Tj ET Q q 0 0 0 rg BT 160.39 108.60 Td (The Operating Partnership owns all of the issued and outstanding equity of KBS Strategic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.60 Td (Opportunity BVI. ) Tj ET Q q 0 0 0 rg BT 125.06 96.60 Td (As a result of these transactions, the Company now holds all of its real estate and real estate-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.60 Td (investments indirectly through KBS Strategic Opportunity BVI.) Tj ET Q endstream endobj 19 0 obj <>] /Rotate 0 /Contents 20 0 R>> endobj 20 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 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 /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 627.60 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 627.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 627.60 Td (, the Company consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.42 627.60 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.19 627.60 Td ( of) Tj ET Q q 0 0 0 rg BT 299.84 627.60 Td (fice properties \(of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.91 627.60 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.34 627.60 Td ( of) Tj ET Q q 0 0 0 rg BT 425.99 627.60 Td (fice property was held for sale\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 615.60 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.94 615.60 Td ( of) Tj ET Q q 0 0 0 rg BT 74.59 615.60 Td (fice portfolio consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.46 615.60 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.12 615.60 Td ( of) Tj ET Q q 0 0 0 rg BT 210.76 615.60 Td (fice buildings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.92 615.60 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.92 615.60 Td ( acres of undeveloped land, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.09 615.60 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.53 615.60 Td ( of) Tj ET Q q 0 0 0 rg BT 432.18 615.60 Td (fice/flex/industrial portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 603.60 Td (consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 603.60 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.39 603.60 Td ( buildings, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.11 603.60 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.55 603.60 Td ( retail property) Tj ET Q q 0 0 0 rg BT 231.32 603.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.32 603.60 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.32 603.60 Td ( apartment properties and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.73 603.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.71 603.60 Td ( investments in undeveloped land with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.60 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 591.60 Td (1,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.26 591.60 Td ( developable acres. ) Tj ET Q q 0 0 0 rg BT 210.93 591.60 Td (The Company also owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.13 591.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.11 591.60 Td ( investments in unconsolidated joint ventures, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.92 591.60 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.36 591.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 579.60 Td (investment in real estate debt securities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.83 579.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.81 579.60 Td ( investments in real estate equity securities.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 555.60 Td (2. ) Tj ET Q q 0 0 0 rg BT 72.50 555.60 Td (SUMMAR) Tj ET Q q 0 0 0 rg BT 118.25 555.60 Td (Y) Tj ET Q q 0 0 0 rg BT 125.10 555.60 Td ( OF) Tj ET Q q 0 0 0 rg BT 141.12 555.60 Td ( SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 210.12 555.60 Td ( ) Tj ET Q q 0 0 0 rg BT 212.07 555.60 Td (ACCOUNTING POLICIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 537.60 Td (There have been no significant changes to the Company’) Tj ET Q q 0 0 0 rg BT 299.65 537.60 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 50.00 525.60 Td (in its ) Tj ET Q q 0 0 0 rg BT 71.67 525.60 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 268.01 525.60 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.60 525.60 Td (, except for the Company’) Tj ET Q q 0 0 0 rg BT 450.73 525.60 Td (s adoption of the revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 513.60 Td (recognition and financial instruments standards issued by the Financial ) Tj ET Q q 0 0 0 rg BT 335.77 513.60 Td (Accounting Standards Board \(“F) Tj ET Q q 0 0 0 rg BT 466.39 513.60 Td (ASB”\) ef) Tj ET Q q 0 0 0 rg BT 503.70 513.60 Td (fective on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 501.60 Td (January 1, 2018. For further information about the Company’) Tj ET Q q 0 0 0 rg BT 295.51 501.60 Td (s accounting policies, refer to the Company’) Tj ET Q q 0 0 0 rg BT 472.40 501.60 Td (s consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 489.60 Td (financial statements and notes thereto for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.96 489.60 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.55 489.60 Td ( included in the Company’) Tj ET Q q 0 0 0 rg BT 462.64 489.60 Td (s ) Tj ET Q q 0 0 0 rg BT 468.48 489.60 Td (Annual Report on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 477.60 Td (Form 10-K filed with the SEC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 459.60 Td (Principles of Consolidation and Basis of Pr) Tj ET Q q 0 0 0 rg BT 232.62 459.60 Td (esentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 441.60 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 50.00 429.60 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 50.00 417.60 Td (the F) Tj ET Q q 0 0 0 rg BT 69.54 417.60 Td (ASB ) Tj ET Q q 0 0 0 rg BT 90.94 417.60 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 50.00 405.60 Td (Form 10-Q and ) Tj ET Q q 0 0 0 rg BT 113.61 405.60 Td (Article 10 of Regulation S-X. ) Tj ET Q q 0 0 0 rg BT 234.15 405.60 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 283.48 405.60 Td (, the unaudited consolidated financial statements do not include all of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 393.60 Td (the information and footnotes required by GAAP) Tj ET Q q 0 0 0 rg BT 246.25 393.60 Td ( for audited financial statements. In the opinion of management, the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 381.60 Td (statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 369.60 Td (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 463.20 369.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.19 369.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.63 369.60 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.30 369.60 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 357.60 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.38 357.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.21 357.60 Td ( are not necessarily indicative of the results that may be expected for the year ending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.18 357.60 Td (December 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.77 357.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 339.60 Td (The consolidated financial statements include the accounts of the Company) Tj ET Q q 0 0 0 rg BT 373.70 339.60 Td (, REIT) Tj ET Q q 0 0 0 rg BT 400.74 339.60 Td ( Holdings, the Operating Partnership, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 327.60 Td (KBS Strategic Opportunity BVI and their direct and indirect wholly owned subsidiaries, and joint ventures in which the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 315.60 Td (Company has a controlling interest. ) Tj ET Q q 0 0 0 rg BT 194.42 315.60 Td (All significant intercompany balances and transactions are eliminated in consolidation. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 297.60 Td (Use of Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 279.60 Td (The preparation of the consolidated financial statements in conformity with GAAP) Tj ET Q q 0 0 0 rg BT 403.71 279.60 Td ( requires management to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 267.60 Td (estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 183.68 267.60 Td (fect the amounts reported in the consolidated financial statements and accompanying notes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 255.60 Td (Actual results could materially dif) Tj ET Q q 0 0 0 rg BT 186.45 255.60 Td (fer from those estimates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 237.60 Td (Redeemable Common Stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 219.60 Td (The Company has adopted a share redemption program that may enable stockholders to sell their shares to the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 207.60 Td (in limited circumstances.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 189.60 Td (Pursuant to the share redemption program there are several limitations on the Company’) Tj ET Q q 0 0 0 rg BT 425.18 189.60 Td (s ability to redeem shares:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 171.60 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 171.60 Td (Unless the shares are being redeemed in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 369.61 171.60 Td (’) Tj ET Q q 0 0 0 rg BT 372.39 171.60 Td (s death, “qualifying disability” or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 159.60 Td (“determination of incompetence” \(each as defined under the share redemption program\), the Company may not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 147.60 Td (redeem shares until the stockholder has held the shares for one year) Tj ET Q q 0 0 0 rg BT 355.63 147.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 132.60 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 132.60 Td (During each calendar year) Tj ET Q q 0 0 0 rg BT 190.81 132.60 Td (, redemptions are limited to the amount of net proceeds from the sale of shares under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 120.60 Td (dividend reinvestment plan during the prior calendar year) Tj ET Q q 0 0 0 rg BT 315.64 120.60 Td (.) Tj ET Q endstream endobj 21 0 obj <>] /Rotate 0 /Contents 22 0 R>> endobj 22 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 627.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 627.10 Td (The Company may not redeem more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.12 627.10 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.01 627.10 Td ( of shares in a given quarter \(excluding shares redeemed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 615.10 Td (connection with a stockholder) Tj ET Q q 0 0 0 rg BT 206.62 615.10 Td (’) Tj ET Q q 0 0 0 rg BT 209.39 615.10 Td (s death, “qualifying disability” or “determination of incompetence”\). ) Tj ET Q q 0 0 0 rg BT 486.89 615.10 Td (T) Tj ET Q q 0 0 0 rg BT 492.30 615.10 Td (o the extent that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 603.10 Td (the Company redeems less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.14 603.10 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.03 603.10 Td ( of shares \(excluding shares redeemed in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 549.86 603.10 Td (’) Tj ET Q q 0 0 0 rg BT 552.64 603.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 591.10 Td (death, “qualifying disability” or “determination of incompetence”\) in a given fiscal quarter) Tj ET Q q 0 0 0 rg BT 448.79 591.10 Td (, any remaining excess ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 579.10 Td (capacity to redeem shares in such fiscal quarter will be added to the Company’) Tj ET Q q 0 0 0 rg BT 400.61 579.10 Td (s capacity to otherwise redeem shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 567.10 Td (\(excluding shares redeemed in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 331.01 567.10 Td (’) Tj ET Q q 0 0 0 rg BT 333.79 567.10 Td (s death, “qualifying disability” or “determination of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 555.10 Td (incompetence”\) during succeeding fiscal quarters. ) Tj ET Q q 0 0 0 rg BT 291.01 555.10 Td (The last ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.44 555.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.33 555.10 Td ( of net proceeds from the dividend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 543.10 Td (reinvestment plan during the prior year is reserved exclusively for shares redeemed in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 552.32 543.10 Td (’) Tj ET Q q 0 0 0 rg BT 555.10 543.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 531.10 Td (death, “qualifying disability) Tj ET Q q 0 0 0 rg BT 197.27 531.10 Td (,” or “determination of incompetence”. ) Tj ET Q q 0 0 0 rg BT 355.63 531.10 Td (The share redemption plan also provides that, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 519.10 Td (the extent that in the last month of any calendar year the amount of redemption requests in connection with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 507.10 Td (stockholder) Tj ET Q q 0 0 0 rg BT 133.03 507.10 Td (’) Tj ET Q q 0 0 0 rg BT 135.80 507.10 Td (s death, “qualifying disability or “determination of incompetence” is less than the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.32 507.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.21 507.10 Td ( reserved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 495.10 Td (for such redemptions under the share redemption plan, any excess funds may be used to redeem shares not requested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 483.10 Td (in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 216.89 483.10 Td (’) Tj ET Q q 0 0 0 rg BT 219.67 483.10 Td (s death, “qualifying disability or “determination of incompetence” during such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 471.10 Td (month. ) Tj ET Q q 0 0 0 rg BT 116.38 471.10 Td (The Company may increase or decrease this limit upon ten business days’) Tj ET Q q 0 0 0 rg BT 411.39 471.10 Td ( notice to stockholders. ) Tj ET Q q 0 0 0 rg BT 508.97 471.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 459.10 Td (Company’) Tj ET Q q 0 0 0 rg BT 127.67 459.10 Td (s board of directors may approve an increase in this limit to the extent that the Company has received ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 447.10 Td (proceeds from asset sales or the refinancing of debt or for any other reason deemed appropriate by the board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 435.10 Td (directors. Based on the amount of net proceeds raised from the sale of shares under the dividend reinvestment plan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 423.10 Td (during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.61 423.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.61 423.10 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.27 423.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.10 423.10 Td (, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.14 423.10 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.03 423.10 Td ( available for all share redemption requests for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 411.10 Td (remainder of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.86 411.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.86 411.10 Td (. On ) Tj ET Q q 0 0 0 rg BT 179.03 411.10 Td (August 9, 2018, the Company’) Tj ET Q q 0 0 0 rg BT 301.81 411.10 Td (s board of directors approved an additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.92 411.10 Td ($6.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.81 411.10 Td ( of funds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 399.10 Td (available for the redemption of shares in 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 384.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 384.10 Td (During any calendar year) Tj ET Q q 0 0 0 rg BT 186.94 384.10 Td (, the Company may redeem no more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.95 384.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.28 384.10 Td ( of the weighted-average number of shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 372.10 Td (outstanding during the prior calendar year) Tj ET Q q 0 0 0 rg BT 253.45 372.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 357.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 357.10 Td (The Company has 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 86.00 345.10 Td (under Maryland law) Tj ET Q q 0 0 0 rg BT 166.43 345.10 Td (, which prohibits distributions that would cause a corporation to fail to meet statutory tests of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 333.10 Td (solvency) Tj ET Q q 0 0 0 rg BT 120.90 333.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 312.10 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.76 312.10 Td (fective December 30, 2016, pursuant to the tenth amended and restated share redemption program, except for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 300.10 Td (redemptions made upon a stockholder) Tj ET Q q 0 0 0 rg BT 202.55 300.10 Td (’) Tj ET Q q 0 0 0 rg BT 205.33 300.10 Td (s death, “qualifying disability” or “determination of incompetence”, the price at which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 288.10 Td (the Company began to redeem shares is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.34 288.10 Td (95%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.67 288.10 Td ( of the Company’) Tj ET Q q 0 0 0 rg BT 299.38 288.10 Td (s most recent estimated value per share as of the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 276.10 Td (redemption date. Upon the death, “qualifying disability” or “determination of incompetence” of a stockholder) Tj ET Q q 0 0 0 rg BT 491.12 276.10 Td (, the redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 264.10 Td (price continued to be equal to the Company’) Tj ET Q q 0 0 0 rg BT 227.45 264.10 Td (s most recent estimated value per share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 246.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 132.21 246.10 Td (s board of directors may amend, suspend or terminate the share redemption program with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.38 246.10 Td (ten) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.60 246.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 234.10 Td (business days’) Tj ET Q q 0 0 0 rg BT 107.31 234.10 Td ( notice to its stockholders. ) Tj ET Q q 0 0 0 rg BT 214.34 234.10 Td (The Company may provide this notice by including such information in a Current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 222.10 Td (Report on Form 8-K or in the Company’) Tj ET Q q 0 0 0 rg BT 211.93 222.10 Td (s annual or quarterly reports, all publicly filed with the SEC, or by a separate mailing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 210.10 Td (to its stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 192.10 Td (In anticipation of a self-tender of) Tj ET Q q 0 0 0 rg BT 204.21 192.10 Td (fer in order to make liquidity available to stockholders in excess of that permitted under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 180.10 Td (the share redemption program, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.73 180.10 Td (March 14, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.33 180.10 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 312.71 180.10 Td (s board of directors approved a temporary suspension of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 168.10 Td (share redemption program starting with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.51 168.10 Td (March 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.11 168.10 Td ( redemption period, including any unsatisfied requests from prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 156.10 Td (redemption periods. In connection with its approval of the Self-T) Tj ET Q q 0 0 0 rg BT 309.79 156.10 Td (ender \(defined below\), the Company’) Tj ET Q q 0 0 0 rg BT 459.46 156.10 Td (s board of directors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 144.10 Td (approved the reopening of the share redemption program for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.35 144.10 Td (June 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.18 144.10 Td ( redemption period, meaning no redemptions were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 132.10 Td (made in March, ) Tj ET Q q 0 0 0 rg BT 114.98 132.10 Td (April or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.42 132.10 Td (May 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.25 132.10 Td ( \(including those requested following a stockholder) Tj ET Q q 0 0 0 rg BT 396.13 132.10 Td (’) Tj ET Q q 0 0 0 rg BT 398.91 132.10 Td (s death, qualifying disability or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 120.10 Td (determination of incompetence\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 102.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.67 102.10 Td (April 23, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.28 102.10 Td (, the Company commenced a self-tender of) Tj ET Q q 0 0 0 rg BT 317.53 102.10 Td (fer \(the “Self-T) Tj ET Q q 0 0 0 rg BT 378.47 102.10 Td (ender”\) for up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.88 102.10 Td (8,234,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.88 102.10 Td ( shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 90.10 Td (common stock at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.07 90.10 Td ($10.93) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.57 90.10 Td ( per share, or approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.53 90.10 Td ($90.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.42 90.10 Td ( of shares. ) Tj ET Q q 0 0 0 rg BT 400.56 90.10 Td (The Company increased the number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 78.10 Td (shares accepted for payment in the Self-T) Tj ET Q q 0 0 0 rg BT 215.90 78.10 Td (ender by up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.88 78.10 Td (1,294,910) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.88 78.10 Td ( shares at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.84 78.10 Td ($10.93) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.34 78.10 Td ( per share, or approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.30 78.10 Td ($14.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 66.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 66.10 Td ( of shares. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.93 66.10 Td (June 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.76 66.10 Td (, the Company accepted for purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.54 66.10 Td (9,527,724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.54 66.10 Td ( shares at a purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.53 66.10 Td ($10.93) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.03 66.10 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 54.10 Td (share, or approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.19 54.10 Td ($104.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.08 54.10 Td ( of shares, excluding fees and expenses related to the Self-T) Tj ET Q q 0 0 0 rg BT 445.01 54.10 Td (ender) Tj ET Q q 0 0 0 rg BT 466.67 54.10 Td (.) Tj ET Q endstream endobj 23 0 obj <>] /Rotate 0 /Contents 24 0 R>> endobj 24 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 627.10 Td (The Company records amounts that are redeemable under the share redemption program as redeemable common stock in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 615.10 Td (its consolidated balance sheets because the shares will be redeemable at the option of the holder and therefore their redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 603.10 Td (will be outside the control of the Company) Tj ET Q q 0 0 0 rg BT 220.71 603.10 Td (. However) Tj ET Q q 0 0 0 rg BT 261.96 603.10 Td (, because the amounts that can be redeemed will be determinable and only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 591.10 Td (contingent on an event that is likely to occur \(e.g., the passage of time\), the Company presents the net proceeds from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 579.10 Td (current year and prior year DRP) Tj ET Q q 0 0 0 rg BT 177.45 579.10 Td (, net of current year redemptions, as redeemable common stock in its consolidated balance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 567.10 Td (sheets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 549.10 Td (The Company classifies as liabilities financial instruments that represent a mandatory obligation of the Company to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 537.10 Td (redeem shares. ) Tj ET Q q 0 0 0 rg BT 111.73 537.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 171.45 537.10 Td (s redeemable common shares are redeemable at the option of the holder) Tj ET Q q 0 0 0 rg BT 457.72 537.10 Td (. ) Tj ET Q q 0 0 0 rg BT 462.54 537.10 Td (When the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 525.10 Td (determines it has a mandatory obligation to repurchase shares under the share redemption program, it will reclassify such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 513.10 Td (obligations from temporary equity to a liability based upon their respective settlement values.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 495.10 Td (The Company limits the dollar value of shares that may be redeemed under the program as described above. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 483.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.67 483.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.50 483.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.33 483.10 Td (, the Company had redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.73 483.10 Td ($10.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.62 483.10 Td ( of common stock, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.32 483.10 Td ($4.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.21 483.10 Td ( relates to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 471.10 Td (delayed December 2017 redemptions. ) Tj ET Q q 0 0 0 rg BT 203.93 471.10 Td (The Company recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.84 471.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.73 471.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.17 471.10 Td ($8.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.06 471.10 Td ( of other liabilities on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 459.10 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.67 459.10 Td (s balance sheet as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.80 459.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.63 459.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.06 459.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.65 459.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 382.31 459.10 Td (, related to unfulfilled redemption requests ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 447.10 Td (received in good order under the share redemption program. Based on the amount of net proceeds raised from the sale of shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 435.10 Td (under the dividend reinvestment plan during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.96 435.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.96 435.10 Td (, the Company has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.89 435.10 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.78 435.10 Td ( available for redemptions in the remainder of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 423.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 423.10 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.16 423.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.99 423.10 Td (, including shares that are redeemed in connection with a stockholders’) Tj ET Q q 0 0 0 rg BT 433.32 423.10 Td ( death, “qualifying disability” ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 411.10 Td (or “determination of incompetence,” subject to the limitations described above.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 393.10 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 375.10 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.76 375.10 Td (fective January 1, 2018, the Company adopted ) Tj ET Q q 0 0 0 rg BT 269.77 375.10 Td (ASU No. 2014-09, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 347.82 375.10 Td (Revenue fr) Tj ET Q q 0 0 0 rg BT 390.48 375.10 Td (om Contracts with Customers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.16 375.10 Td (\(T) Tj ET Q q 0 0 0 rg BT 520.90 375.10 Td (opic 606\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 363.10 Td (\(“ASU No. 2014-09”\), using the modified retrospective approach, which requires a cumulative ef) Tj ET Q q 0 0 0 rg BT 439.97 363.10 Td (fect adjustment as of the date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 351.10 Td (of the Company’) Tj ET Q q 0 0 0 rg BT 117.21 351.10 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 50.00 339.10 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 486.54 339.10 Td (A) Tj ET Q q 0 0 0 rg BT 493.21 339.10 Td ( completed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 327.10 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 476.97 327.10 Td ( that was in ef) Tj ET Q q 0 0 0 rg BT 532.88 327.10 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 315.10 Td (before the date of initial application. ) Tj ET Q q 0 0 0 rg BT 197.82 315.10 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 50.00 303.10 Td (of January 1, 2018. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 285.10 Td (Based on the Company’) Tj ET Q q 0 0 0 rg BT 168.32 285.10 Td (s evaluation of contracts within the scope of ) Tj ET Q q 0 0 0 rg BT 346.61 285.10 Td (ASU No. 2014-09, revenue that is impacted by ) Tj ET Q q 0 0 0 rg BT 536.57 285.10 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 273.10 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 50.00 261.10 Td (substantial services earned at the Company’) Tj ET Q q 0 0 0 rg BT 225.22 261.10 Td (s properties. ) Tj ET Q q 0 0 0 rg BT 276.42 261.10 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 50.00 249.10 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 303.81 249.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.79 249.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.23 249.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.90 249.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.73 249.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.56 249.10 Td (, tenant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 237.10 Td (reimbursements for substantial services accounted for under ) Tj ET Q q 0 0 0 rg BT 292.42 237.10 Td (ASU No. 2014-09 were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.91 237.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.80 237.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.24 237.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.13 237.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 225.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 225.10 Td (, which 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 50.00 207.10 Td (Sale of Real Estate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 192.10 Td (Prior to January 1, 2018, gains on real estate sold were recognized using the full accrual method at closing when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 180.10 Td (collectibility of the sales price was reasonably assured, the Company was not obligated to perform additional activities that may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 168.10 Td (be considered significant, the initial investment from the buyer was suf) Tj ET Q q 0 0 0 rg BT 333.91 168.10 Td (ficient and other profit recognition criteria had been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 156.10 Td (satisfied. Gain on sales of real estate may have been deferred in whole or in part until the requirements for gain recognition had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 144.10 Td (been met.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 126.10 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.76 126.10 Td (fective January 1, 2018, the Company adopted the guidance of ) Tj ET Q q 0 0 0 rg BT 333.91 126.10 Td (ASC 610-20, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 389.19 126.10 Td (Other Income - Gains and Losses fr) Tj ET Q q 0 0 0 rg BT 532.14 126.10 Td (om the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 114.10 Td (Der) Tj ET Q q 0 0 0 rg BT 65.18 114.10 Td (ecognition of Nonfinancial ) Tj ET Q q 0 0 0 rg BT 174.71 114.10 Td (Assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.21 114.10 Td (\(“ASC 610-20”\), 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 50.00 102.10 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 437.87 102.10 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 499.25 102.10 Td (s sales of real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 90.10 Td (estate would be considered a sale of a nonfinancial asset as defined by ) Tj ET Q q 0 0 0 rg BT 332.95 90.10 Td (ASC 610-20.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 31.60 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 627.10 Td (ASC 610-20 refers to the revenue recognition principles under ) Tj ET Q q 0 0 0 rg BT 324.38 627.10 Td (ASU No. 2014-09. Under ) Tj ET Q q 0 0 0 rg BT 431.87 627.10 Td (ASC 610-20, if the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 615.10 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 50.00 603.10 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 50.00 591.10 Td (the real estate when control of the underlying asset transfers to the buyer) Tj ET Q q 0 0 0 rg BT 339.90 591.10 Td (. ) Tj ET Q q 0 0 0 rg BT 346.85 591.10 Td (As a result of the adoption of ) Tj ET Q q 0 0 0 rg BT 465.44 591.10 Td (ASC 610-20 on January ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 579.10 Td (1, 2018, the Company recorded a cumulative ef) Tj ET Q q 0 0 0 rg BT 240.03 579.10 Td (fect adjustment to increase retained earnings by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.01 579.10 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.90 579.10 Td ( to recognize the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 567.10 Td (deferred gain from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.05 567.10 Td (102) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.05 567.10 Td ( developable acres at Park Highlands that closed on May 1, 2017, as control of the sold acres ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 555.10 Td (had transferred to the buyers at closing. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 537.10 Td (As of January 1, 2018 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.98 537.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.81 537.10 Td (, the Company had recorded contract liabilities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.58 537.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.47 537.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.91 537.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.80 537.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 525.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 525.10 Td (, related to deferred proceeds received from the buyers of the Park Highlands land sales and another developer for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 513.10 Td (the value of land that was contributed to a master association that is consolidated by the Company) Tj ET Q q 0 0 0 rg BT 441.47 513.10 Td (, which was included in other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 501.10 Td (liabilities on the accompanying consolidated balance sheets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 483.10 Td (Real Estate Equity Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 465.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 132.21 465.10 Td (s real estate equity securities are carried at their estimated fair value based on quoted market prices for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 453.10 Td (security) Tj ET Q q 0 0 0 rg BT 81.01 453.10 Td (, net of any discounts for restrictions on the sale of the security) Tj ET Q q 0 0 0 rg BT 331.68 453.10 Td (. ) Tj ET Q q 0 0 0 rg BT 336.13 453.10 Td (Any discount for lack of marketability is estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 441.10 Td (using an option pricing model. ) Tj ET Q q 0 0 0 rg BT 174.80 441.10 Td (T) Tj ET Q q 0 0 0 rg BT 180.56 441.10 Td (ransaction costs that are directly attributable to the acquisition of real estate equity securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 429.10 Td (are capitalized to its cost basis. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 411.10 Td (Prior to the Company’) Tj ET Q q 0 0 0 rg BT 161.66 411.10 Td (s adoption of ) Tj ET Q q 0 0 0 rg BT 215.83 411.10 Td (ASU No. 2016-01, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 293.88 411.10 Td (Financial Instruments - Overall \(Subtopic 825-10\): Recognition ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 399.10 Td (and Measur) Tj ET Q q 0 0 0 rg BT 97.68 399.10 Td (ement of Financial ) Tj ET Q q 0 0 0 rg BT 175.54 399.10 Td (Assets and Financial Liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.98 399.10 Td (\(“ASU No. 2016-01”\) on January 1, 2018, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 387.10 Td (classified its investments in real estate equity securities as available-for) Tj ET Q q 0 0 0 rg BT 334.98 387.10 Td (-sale and unrealized gains and losses were reported in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 375.10 Td (accumulated other comprehensive income \(loss\). Upon the sale of a security) Tj ET Q q 0 0 0 rg BT 354.52 375.10 Td (, the previously recognized unrealized gain \(loss\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 363.10 Td (would be reversed out of accumulated other comprehensive income \(loss\) and the actual realized gain \(loss\) recognized in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 351.10 Td (earnings. Ef) Tj ET Q q 0 0 0 rg BT 100.63 351.10 Td (fective January 1, 2018, unrealized gains and losses on real estate equity securities are recognized in earnings. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 339.10 Td (Upon adoption of ) Tj ET Q q 0 0 0 rg BT 122.50 339.10 Td (ASU No. 2016-01 on January 1, 2018, the Company recorded a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.67 339.10 Td ($25.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.56 339.10 Td ( cumulative ef) Tj ET Q q 0 0 0 rg BT 490.58 339.10 Td (fect adjustment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 327.10 Td (to retained earnings related to the unrealized gain on real estate equity securities previously reported in accumulated other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 315.10 Td (comprehensive income prior to January 1, 2018. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 297.10 Td (Investment in Unconsolidated Joint ) Tj ET Q q 0 0 0 rg BT 203.73 297.10 Td (V) Tj ET Q q 0 0 0 rg BT 210.03 297.10 Td (entur) Tj ET Q q 0 0 0 rg BT 233.18 297.10 Td (es) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 279.10 Td (Equity Investment ) Tj ET Q q 0 0 0 rg BT 127.60 279.10 Td (W) Tj ET Q q 0 0 0 rg BT 136.12 279.10 Td (ithout Readily Determinable V) Tj ET Q q 0 0 0 rg BT 260.85 279.10 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 264.10 Td (Prior to the adoption of ) Tj ET Q q 0 0 0 rg BT 167.77 264.10 Td (ASU No. 2016-01 on January 1, 2018, the Company accounted for investments in unconsolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 252.10 Td (joint venture entities in which the Company did not have the ability to exercise significant influence and had virtually no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 240.10 Td (influence over partnership operating and financial policies using the cost method of accounting. Under the cost method, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 228.10 Td (income distributions from the partnership were recognized in other income. Distributions that exceed the Company’) Tj ET Q q 0 0 0 rg BT 515.99 228.10 Td (s share of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 216.10 Td (earnings were applied to reduce the carrying value of the Company’) Tj ET Q q 0 0 0 rg BT 321.56 216.10 Td (s investment and any capital contributions increased the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 204.10 Td (carrying value of the Company’) Tj ET Q q 0 0 0 rg BT 177.18 204.10 Td (s investment. On a quarterly basis, the Company evaluated its cost method investment in an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 192.10 Td (unconsolidated joint venture for other) Tj ET Q q 0 0 0 rg BT 200.87 192.10 Td (-than-temporary impairments. ) Tj ET Q q 0 0 0 rg BT 325.65 192.10 Td (The fair value of a cost method investment was not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 180.10 Td (estimated if there were no identified events or changes in circumstances that indicated a significant adverse ef) Tj ET Q q 0 0 0 rg BT 489.09 180.10 Td (fect on the fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 168.10 Td (value of the investment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 150.10 Td (In accordance with ) Tj ET Q q 0 0 0 rg BT 150.52 150.10 Td (ASU No. 2016-01, the Company may elect to measure an equity investment without a readily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 Td (determinable value that does not qualify for the practical expedient to estimate fair value using the net asset value per share, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (its cost minus impairment, if any) Tj ET Q q 0 0 0 rg BT 181.00 126.10 Td (, plus or minus changes resulting from observable price changes in orderly transactions for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.10 Td (identical or a similar investment of the same issuer) Tj ET Q q 0 0 0 rg BT 252.72 114.10 Td (. ) Tj ET Q q 0 0 0 rg BT 260.04 114.10 Td (The Company elected to measure its investment in the NIP) Tj ET Q q 0 0 0 rg BT 495.45 114.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 519.72 114.10 Td (V) Tj ET Q q 0 0 0 rg BT 525.83 114.10 Td (enture ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 102.10 Td (\(defined in Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.03 102.10 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.03 102.10 Td (\) in accordance with the above guidance, applying it prospectively) Tj ET Q q 0 0 0 rg BT 392.84 102.10 Td (, and as of January 1, 2018 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.48 102.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 90.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 90.10 Td (, recorded its investment in the NIP) Tj ET Q q 0 0 0 rg BT 211.54 90.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 235.81 90.10 Td (V) Tj ET Q q 0 0 0 rg BT 241.92 90.10 Td (enture at a cost basis of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.00 90.10 Td ($3.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.89 90.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.33 90.10 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.22 90.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 507.89 90.10 Td (. ) Tj ET Q endstream endobj 27 0 obj <>] /Rotate 0 /Contents 28 0 R>> endobj 28 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.25 Td (Reclassifications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 609.25 Td (Certain amounts in the Company’) Tj ET Q q 0 0 0 rg BT 207.48 609.25 Td (s prior period consolidated financial statements have been reclassified to conform to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 597.25 Td (current period presentation. ) Tj ET Q q 0 0 0 rg BT 162.55 597.25 Td (These reclassifications have not changed the results of operations of the prior period. ) Tj ET Q q 0 0 0 rg BT 504.11 597.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.55 597.25 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 585.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 585.25 Td (, the Company had classified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.31 585.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.74 585.25 Td ( of) Tj ET Q q 0 0 0 rg BT 213.39 585.25 Td (fice property as held for sale. ) Tj ET Q q 0 0 0 rg BT 331.96 585.25 Td (As a result, certain assets and liabilities were reclassified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 573.25 Td (as held for sale on the consolidated balance sheets for all periods presented.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 555.25 Td (Segments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 537.25 Td (The Company has invested in opportunistic real estate and other real estate-related assets. In general, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 525.25 Td (intends ) Tj ET Q q 0 0 0 rg BT 81.39 525.25 Td (to ) Tj ET Q q 0 0 0 rg BT 91.67 525.25 Td (hold ) Tj ET Q q 0 0 0 rg BT 111.94 525.25 Td (its ) Tj ET Q q 0 0 0 rg BT 123.89 525.25 Td (investments ) Tj ET Q q 0 0 0 rg BT 174.17 525.25 Td (in ) Tj ET Q q 0 0 0 rg BT 184.44 525.25 Td (opportunistic ) Tj ET Q q 0 0 0 rg BT 239.72 525.25 Td (real ) Tj ET Q q 0 0 0 rg BT 257.20 525.25 Td (estate ) Tj ET Q q 0 0 0 rg BT 282.47 525.25 Td (and ) Tj ET Q q 0 0 0 rg BT 299.40 525.25 Td (other ) Tj ET Q q 0 0 0 rg BT 322.45 525.25 Td (real ) Tj ET Q q 0 0 0 rg BT 339.94 525.25 Td (estate) Tj ET Q /GS0 gs q 5.00 0 0 10.09 362.70 523.09 cm /I16 Do Q q 0 0 0 rg BT 367.70 525.25 Td (related ) Tj ET Q q 0 0 0 rg BT 397.40 525.25 Td (assets ) Tj ET Q q 0 0 0 rg BT 423.23 525.25 Td (for ) Tj ET Q q 0 0 0 rg BT 437.39 525.25 Td (capital ) Tj ET Q q 0 0 0 rg BT 466.54 525.25 Td (appreciation. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 513.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.76 513.25 Td (raditional performance metrics of opportunistic real estate and other real estate-related assets may not be meaningful as these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 501.25 Td (investments are generally non-stabilized and do not provide a consistent stream of interest income or rental revenue. ) Tj ET Q q 0 0 0 rg BT 517.44 501.25 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 489.25 Td (investments exhibit similar long-term financial performance and have similar economic characteristics. ) Tj ET Q q 0 0 0 rg BT 465.22 489.25 Td (These investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 477.25 Td (typically involve a higher degree of risk and do not provide a constant stream of ongoing cash flows. ) Tj ET Q q 0 0 0 rg BT 455.18 477.25 Td (As a result, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 465.25 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.67 465.25 Td (s management views opportunistic real estate and other real estate-related assets as similar investments. Substantially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 453.25 Td (all of its revenue and net income \(loss\) is from opportunistic real estate and other real estate-related assets, and therefore, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 441.25 Td (Company currently aggregates its operating segments into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.22 441.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.66 441.25 Td ( reportable business segment.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 423.25 Td (Per) Tj ET Q q 0 0 0 rg BT 64.80 423.25 Td ( Shar) Tj ET Q q 0 0 0 rg BT 87.69 423.25 Td (e Data) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 405.25 Td (Basic net income \(loss\) per share of common stock is calculated by dividing net income \(loss\) attributable to common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 393.25 Td (stockholders by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 381.25 Td (net income \(loss\) per share of common stock equals basic net income \(loss\) per share of common stock as there were no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 369.25 Td (potentially dilutive securities outstanding during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.07 369.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.06 369.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.50 369.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.17 369.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.99 369.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.82 369.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.26 369.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.26 369.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 351.25 Td (Distributions declared per share were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.38 351.25 Td ($0.01597500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.88 351.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.32 351.25 Td ($0.03195000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.82 351.25 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.65 351.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.63 351.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.07 351.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.74 351.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.57 351.25 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 339.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 339.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.66 339.25 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.60 339.25 Td ($0.09349315) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.10 339.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.54 339.25 Td ($0.18595890) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.04 339.25 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.86 339.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.85 339.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.29 339.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.96 339.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.78 339.25 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.61 339.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 535.27 339.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 321.25 Td (Squar) Tj ET Q q 0 0 0 rg BT 75.94 321.25 Td (e Footage, Occupancy and Other) Tj ET Q q 0 0 0 rg BT 216.03 321.25 Td ( Measur) Tj ET Q q 0 0 0 rg BT 251.11 321.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 303.25 Td (Any references to square footage, occupancy or annualized base rent are unaudited and outside the scope of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 291.25 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.67 291.25 Td (s independent registered public accounting firm’) Tj ET Q q 0 0 0 rg BT 285.21 291.25 Td (s review of the Company’) Tj ET Q q 0 0 0 rg BT 388.53 291.25 Td (s financial statements in accordance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 279.25 Td (the standards of the United States Public Company ) Tj ET Q q 0 0 0 rg BT 255.53 279.25 Td (Accounting Oversight Board.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 261.25 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 118.89 261.25 Td (Accounting Standards Updates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 243.25 Td (In February 2016, the F) Tj ET Q q 0 0 0 rg BT 166.46 243.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 215.37 243.25 Td (ASU No. 2016-02, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 293.42 243.25 Td (Leases \(T) Tj ET Q q 0 0 0 rg BT 331.12 243.25 Td (opic 842\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.17 243.25 Td ( \(“ASU No. 2016-02”\). ) Tj ET Q q 0 0 0 rg BT 467.58 243.25 Td (The amendments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 231.25 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 50.00 219.25 Td (leases on their balance sheets and making tar) Tj ET Q q 0 0 0 rg BT 229.47 219.25 Td (geted changes to lessor accounting. ) Tj ET Q q 0 0 0 rg BT 372.76 219.25 Td (ASU No. 2016-02 is ef) Tj ET Q q 0 0 0 rg BT 465.08 219.25 Td (fective for annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 207.25 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 508.77 207.25 Td (ASU No. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 195.25 Td (2016-02 as of its issuance is permitted. ) Tj ET Q q 0 0 0 rg BT 210.25 195.25 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 50.00 183.25 Td (existing at, or entered into after) Tj ET Q q 0 0 0 rg BT 175.11 183.25 Td (, the date of initial application, with an option to use certain transition relief. ) Tj ET Q q 0 0 0 rg BT 484.84 183.25 Td (The Company is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 171.25 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 50.00 159.25 Td (adoption of ) Tj ET Q q 0 0 0 rg BT 97.77 159.25 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 50.00 147.25 Td (before the ef) Tj ET Q q 0 0 0 rg BT 100.34 147.25 Td (fective date of January 1, 2019. ) Tj ET Q q 0 0 0 rg BT 230.58 147.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 279.91 147.25 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 50.00 135.25 Td (contracts are or contain leases, 2\) not reassess the lease classification for any expired or existing lease, and 3\) not reassess ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 123.25 Td (initial direct costs for any existing leases. ) Tj ET Q q 0 0 0 rg BT 220.05 123.25 Td (The Company does not expect to elect the practical expedient related to using ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 111.25 Td (hindsight to reevaluate the lease term. In addition, the Company expects to adopt the practical expedient for land easements to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 99.25 Td (not assess whether existing or expired land easements that were not previously accounted for as leases under the current lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 87.25 Td (accounting standards of ) Tj ET Q q 0 0 0 rg BT 147.29 87.25 Td (T) Tj ET Q q 0 0 0 rg BT 152.70 87.25 Td (opic 840 are or contain a lease under ) Tj ET Q q 0 0 0 rg BT 301.90 87.25 Td (T) Tj ET Q q 0 0 0 rg BT 307.31 87.25 Td (opic 842. ) Tj ET Q endstream endobj 29 0 obj <>] /Rotate 0 /Contents 30 0 R>> endobj 30 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 627.10 Td (In July 2018, the F) Tj ET Q q 0 0 0 rg BT 147.04 627.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 195.94 627.10 Td (ASU No. 2018-1) Tj ET Q q 0 0 0 rg BT 263.62 627.10 Td (1, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.62 627.10 Td (Leases \(T) Tj ET Q q 0 0 0 rg BT 311.32 627.10 Td (opic 842\), T) Tj ET Q q 0 0 0 rg BT 359.01 627.10 Td (ar) Tj ET Q q 0 0 0 rg BT 367.53 627.10 Td (geted Impr) Tj ET Q q 0 0 0 rg BT 410.76 627.10 Td (ovements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.96 627.10 Td ( \(“ASU No. 2018-1) Tj ET Q q 0 0 0 rg BT 525.92 627.10 Td (1”\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 615.10 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 50.00 603.10 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 50.00 591.10 Td (otherwise would be accounted for under the new revenue recognition standard \(T) Tj ET Q q 0 0 0 rg BT 374.46 591.10 Td (opic 606\) and if certain conditions are met. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 579.10 Td (Upon adoption of the lease accounting standard under ) Tj ET Q q 0 0 0 rg BT 268.09 579.10 Td (T) Tj ET Q q 0 0 0 rg BT 273.50 579.10 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 50.00 567.10 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 50.00 555.10 Td (standard. ) Tj ET Q q 0 0 0 rg BT 88.70 555.10 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 50.00 543.10 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 50.00 531.10 Td (classified as an operating lease. In addition, ) Tj ET Q q 0 0 0 rg BT 228.83 531.10 Td (ASU No. 2018-1) Tj ET Q q 0 0 0 rg BT 296.52 531.10 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 50.00 519.10 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 457.16 519.10 Td (fect adjustment to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 507.10 Td (opening balance of retained earnings. ) Tj ET Q q 0 0 0 rg BT 204.11 507.10 Td (An entity’) Tj ET Q q 0 0 0 rg BT 244.38 507.10 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 50.00 495.10 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 50.00 483.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 483.10 Td (opic 840. ) Tj ET Q q 0 0 0 rg BT 97.45 483.10 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 515.50 483.10 Td (T) Tj ET Q q 0 0 0 rg BT 520.91 483.10 Td (opic 842 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 471.10 Td (on January 1, 2019.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 453.10 Td (In June 2016, the F) Tj ET Q q 0 0 0 rg BT 148.70 453.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 197.60 453.10 Td (ASU No. 2016-13, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 275.65 453.10 Td (Financial Instruments - Cr) Tj ET Q q 0 0 0 rg BT 382.78 453.10 Td (edit Losses \(T) Tj ET Q q 0 0 0 rg BT 437.42 453.10 Td (opic 326\): Measur) Tj ET Q q 0 0 0 rg BT 511.48 453.10 Td (ement of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.10 Td (Cr) Tj ET Q q 0 0 0 rg BT 60.19 441.10 Td (edit Losses of Financial Instruments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.24 441.10 Td (\(“ASU No. 2016-13”\). ) Tj ET Q q 0 0 0 rg BT 303.78 441.10 Td (ASU No. 2016-13 af) Tj ET Q q 0 0 0 rg BT 386.93 441.10 Td (fects entities holding financial assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 429.10 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 391.65 429.10 Td (The amendments in ) Tj ET Q q 0 0 0 rg BT 472.46 429.10 Td (ASU No. 2016-13 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 417.10 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 50.00 405.10 Td (expected to be collected. ) Tj ET Q q 0 0 0 rg BT 153.66 405.10 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 50.00 393.10 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 523.43 393.10 Td (ASU No. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 381.10 Td (2016-13 also amends the impairment model for available-for) Tj ET Q q 0 0 0 rg BT 293.33 381.10 Td (-sale securities. ) Tj ET Q q 0 0 0 rg BT 359.42 381.10 Td (An entity will recognize an allowance for credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 369.10 Td (losses on available-for) Tj ET Q q 0 0 0 rg BT 139.77 369.10 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 50.00 357.10 Td (amortized cost basis of the investment, as is currently required. ) Tj ET Q q 0 0 0 rg BT 304.38 357.10 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 50.00 345.10 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 50.00 333.10 Td (credit losses, including changes in the factors that influenced management’) Tj ET Q q 0 0 0 rg BT 349.90 333.10 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 50.00 321.10 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 50.00 309.10 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 50.00 297.10 Td (asset’) Tj ET Q q 0 0 0 rg BT 72.22 297.10 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 50.00 285.10 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 450.69 285.10 Td (ASU No. 2016-13 is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 273.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 273.10 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 50.00 261.10 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 50.00 249.10 Td (The Company is still evaluating the impact of adopting ) Tj ET Q q 0 0 0 rg BT 272.46 249.10 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 50.00 237.10 Td (adoption of ) Tj ET Q q 0 0 0 rg BT 97.77 237.10 Td (ASU No. 2016-13 to have a material impact on its financial statements.) Tj ET Q endstream endobj 31 0 obj <>] /Rotate 0 /Contents 32 0 R>> endobj 32 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.25 Td (3. ) Tj ET Q q 0 0 0 rg BT 72.50 627.25 Td (REAL) Tj ET Q q 0 0 0 rg BT 99.73 627.25 Td ( EST) Tj ET Q q 0 0 0 rg BT 120.39 627.25 Td (A) Tj ET Q q 0 0 0 rg BT 126.87 627.25 Td (TE HELD FOR INVESTMENT) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 609.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.94 609.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.77 609.25 Td (, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.04 609.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.71 609.25 Td ( of) Tj ET Q q 0 0 0 rg BT 265.36 609.25 Td (fice properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.83 609.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.27 609.25 Td ( of) Tj ET Q q 0 0 0 rg BT 352.92 609.25 Td (fice portfolio consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.78 609.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.44 609.25 Td ( of) Tj ET Q q 0 0 0 rg BT 489.09 609.25 Td (fice buildings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 597.25 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 597.25 Td ( acres of undeveloped land, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.18 597.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.62 597.25 Td ( of) Tj ET Q q 0 0 0 rg BT 197.27 597.25 Td (fice/flex/industrial portfolio consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.01 597.25 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.01 597.25 Td ( buildings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.17 597.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.61 597.25 Td ( retail property) Tj ET Q q 0 0 0 rg BT 507.38 597.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 585.25 Td (encompassing, in the aggregate, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.77 585.25 Td (3.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.66 585.25 Td ( rentable square feet. ) Tj ET Q q 0 0 0 rg BT 369.90 585.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.34 585.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.17 585.25 Td (, these properties were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.63 585.25 Td (77%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.96 585.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 573.25 Td (occupied. In addition, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.96 573.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.96 573.25 Td ( apartment properties, containing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.64 573.25 Td (383) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.64 573.25 Td ( units and encompassing approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.44 573.25 Td (0.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 561.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 561.25 Td ( rentable square feet, which were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.54 561.25 Td (94%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.88 561.25 Td ( occupied. ) Tj ET Q q 0 0 0 rg BT 275.29 561.25 Td (The Company also owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.49 561.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.48 561.25 Td ( investments in undeveloped land with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 549.25 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.26 549.25 Td (1,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.76 549.25 Td ( developable acres. ) Tj ET Q q 0 0 0 rg BT 211.43 549.25 Td (The following table summarizes the Company’) Tj ET Q q 0 0 0 rg BT 399.44 549.25 Td (s real estate held for investment as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 537.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.83 537.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.27 537.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.85 537.25 Td (, respectively \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 513.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 513.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 513.75 93.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.50 513.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 513.75 93.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 487.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 487.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 487.75 93.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.50 487.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 487.75 93.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 461.75 319.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 461.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 461.75 93.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.50 461.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 461.75 93.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 513.75 m 466.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470.5 513.75 m 563.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 513.75 m 466.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470.5 513.75 m 563.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 474.75 m 466.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470.5 474.75 m 563.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470.5 474.75 m 563.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 448.75 m 466.5 448.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470.5 448.75 m 563.5 448.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 448.75 m 466.5 448.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 436.75 m 466.5 436.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 434.75 m 466.5 434.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470.5 448.75 m 563.5 448.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470.5 436.75 m 563.5 436.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470.5 434.75 m 563.5 434.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.25 517.98 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.25 517.98 Td (December) Tj ET Q q 0 0 0 rg BT 518.75 517.98 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 505.00 Td (Land) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 376.00 505.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.30 505.00 Td (196,052) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.00 505.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.30 505.00 Td (155,046) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 492.00 Td (Buildings and improvements) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.30 492.00 Td (624,299) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.30 492.00 Td (361,1) Tj ET Q q 0 0 0 rg BT 552.30 492.00 Td (18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 479.00 Td (T) Tj ET Q q 0 0 0 rg BT 57.33 479.00 Td (enant origination and absorption costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.30 479.00 Td (39,677) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.30 479.00 Td (23,212) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.00 466.00 Td (T) Tj ET Q q 0 0 0 rg BT 63.33 466.00 Td (otal real estate, cost) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.30 466.00 Td (860,028) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.30 466.00 Td (539,376) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 453.00 Td (Accumulated depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 438.60 453.00 Td (\(48,690) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.30 453.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 535.60 453.00 Td (\(37,154) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 560.30 453.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.00 440.00 Td (T) Tj ET Q q 0 0 0 rg BT 63.33 440.00 Td (otal real estate, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 376.00 440.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.30 440.00 Td (81) Tj ET Q q 0 0 0 rg BT 445.30 440.00 Td (1,338) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.00 440.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.30 440.00 Td (502,222) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 412.25 Td (The following table provides summary information regarding the Company’) Tj ET Q q 0 0 0 rg BT 377.43 412.25 Td (s real estate held for investment as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.49 412.25 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 400.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 400.25 Td ( \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 360.75 70.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 360.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 124.50 360.75 42.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.50 360.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 170.50 360.75 36.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.50 360.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 360.75 19.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 360.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.50 360.75 38.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 360.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 360.75 30.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 360.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 360.75 46.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 360.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.50 360.75 44.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 360.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 360.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 360.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 360.75 41.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 360.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 360.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.50 360.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 528.50 360.75 35.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 338.75 70.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 338.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 124.50 338.75 42.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.50 338.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 170.50 338.75 36.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.50 338.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 338.75 19.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 338.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.50 338.75 38.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 338.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 338.75 30.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 338.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 338.75 46.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 338.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.50 338.75 44.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 338.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 338.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 338.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 338.75 41.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 338.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 338.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.50 338.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 528.50 338.75 35.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 316.75 70.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 316.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 124.50 316.75 42.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.50 316.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 170.50 316.75 36.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.50 316.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 316.75 19.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 316.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.50 316.75 38.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 316.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 316.75 30.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 316.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 316.75 46.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 316.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.50 316.75 44.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 316.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 316.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 316.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 316.75 41.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 316.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 316.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.50 316.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 528.50 316.75 35.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 288.75 70.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 288.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 124.50 288.75 42.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.50 288.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 170.50 288.75 36.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.50 288.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 288.75 19.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 288.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.50 288.75 38.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 288.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 288.75 30.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 288.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 288.75 46.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 288.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.50 288.75 44.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 288.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 288.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 288.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 288.75 41.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 288.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 288.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.50 288.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 528.50 288.75 35.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 260.75 70.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 260.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 124.50 260.75 42.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.50 260.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 170.50 260.75 36.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.50 260.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 260.75 19.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 260.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.50 260.75 38.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 260.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 260.75 30.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 260.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 260.75 46.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 260.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.50 260.75 44.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 260.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 260.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 260.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 260.75 41.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 260.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 260.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.50 260.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 528.50 260.75 35.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 238.75 70.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 238.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 124.50 238.75 42.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.50 238.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 170.50 238.75 36.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.50 238.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 238.75 19.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 238.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.50 238.75 38.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 238.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 238.75 30.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 238.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 238.75 46.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 238.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.50 238.75 44.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 238.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 238.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 238.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 238.75 41.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 238.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 238.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.50 238.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 528.50 238.75 35.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 210.75 70.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 210.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 124.50 210.75 42.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.50 210.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 170.50 210.75 36.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.50 210.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 210.75 19.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 210.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.50 210.75 38.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 210.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 210.75 30.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 210.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 210.75 46.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 210.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.50 210.75 44.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 210.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 210.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 210.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 210.75 41.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 210.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 210.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.50 210.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 528.50 210.75 35.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 182.75 70.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 182.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 124.50 182.75 42.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.50 182.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 170.50 182.75 36.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.50 182.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 182.75 19.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 182.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.50 182.75 38.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 182.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 182.75 30.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 182.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 182.75 46.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 182.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.50 182.75 44.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 182.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 182.75 34.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 182.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 182.75 41.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 182.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 182.75 34.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.50 182.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 528.50 182.75 35.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 154.75 70.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 154.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 124.50 154.75 42.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.50 154.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 170.50 154.75 36.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.50 154.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 154.75 19.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 154.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.50 154.75 38.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 154.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 154.75 30.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 154.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 154.75 46.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 154.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.50 154.75 44.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 154.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 154.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 154.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 154.75 41.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 154.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 154.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.50 154.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 528.50 154.75 35.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 132.75 70.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 132.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 124.50 132.75 42.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.50 132.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 170.50 132.75 36.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.50 132.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 132.75 19.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 132.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.50 132.75 38.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 132.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 132.75 30.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 132.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 132.75 46.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 132.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.50 132.75 44.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 132.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 132.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 132.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 132.75 41.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 132.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 132.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.50 132.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 528.50 132.75 35.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 104.75 70.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 104.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 124.50 104.75 42.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 166.50 104.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 170.50 104.75 36.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.50 104.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 210.50 104.75 19.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 104.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.50 104.75 38.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.50 104.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 104.75 30.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 104.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 104.75 46.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 104.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.50 104.75 44.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 104.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 104.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 104.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 104.75 41.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 104.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 104.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.50 104.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 528.50 104.75 35.00 -11.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 360.75 m 120.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 124.5 360.75 m 166.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 170.5 360.75 m 206.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210.5 360.75 m 229.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233.5 360.75 m 271.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 360.75 m 305.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 360.75 m 355.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 360.75 m 403.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 360.75 m 441.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 360.75 m 486.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 360.75 m 524.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 528.5 360.75 m 563.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 288.75 m 305.5 288.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 288.75 m 355.5 288.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 288.75 m 403.5 288.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 288.75 m 441.5 288.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 288.75 m 486.5 288.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 288.75 m 524.5 288.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 104.75 m 305.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 104.75 m 355.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 104.75 m 403.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 104.75 m 441.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 104.75 m 486.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 104.75 m 524.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 104.75 m 305.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 94.75 m 305.5 94.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 92.75 m 305.5 92.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 104.75 m 355.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 94.75 m 355.5 94.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 92.75 m 355.5 92.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 104.75 m 403.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 94.75 m 403.5 94.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 92.75 m 403.5 92.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 104.75 m 441.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 94.75 m 441.5 94.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 92.75 m 441.5 92.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 104.75 m 486.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 94.75 m 486.5 94.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 92.75 m 486.5 92.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 104.75 m 524.5 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 94.75 m 524.5 94.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 92.75 m 524.5 92.75 l s BT /F2 6.00 Tf ET q 0 0 0 rg BT 73.55 364.59 Td (Pr) Tj ET Q q 0 0 0 rg BT 79.77 364.59 Td (operty) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 139.00 376.59 Td (Date ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 129.50 370.59 Td (Acquir) Tj ET Q q 0 0 0 rg BT 147.39 370.59 Td (ed or) Tj ET Q q 0 0 0 rg BT 160.45 370.59 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 127.30 364.59 Td (For) Tj ET Q q 0 0 0 rg BT 136.52 364.59 Td (eclosed on) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 182.50 364.59 Td (City) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 213.00 364.59 Td (State) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 240.55 370.59 Td (Pr) Tj ET Q q 0 0 0 rg BT 246.77 370.59 Td (operty ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 245.70 364.59 Td (T) Tj ET Q q 0 0 0 rg BT 249.26 364.59 Td (ype) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 283.15 364.59 Td (Land) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 320.95 376.59 Td (Building ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 327.15 370.59 Td (and ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 313.35 364.59 Td (Impr) Tj ET Q q 0 0 0 rg BT 326.57 364.59 Td (ovements) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 372.10 382.59 Td (T) Tj ET Q q 0 0 0 rg BT 375.55 382.59 Td (enant ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 365.95 376.59 Td (Origination ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 376.15 370.59 Td (and ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 366.45 364.59 Td (Absorption) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 410.85 376.59 Td (T) Tj ET Q q 0 0 0 rg BT 414.30 376.59 Td (otal Real ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 412.00 370.59 Td (Estate, at ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 418.15 364.59 Td (Cost) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 448.50 382.59 Td (Accumulated ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 449.05 376.59 Td (Depr) Tj ET Q q 0 0 0 rg BT 461.94 376.59 Td (eciation ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 460.65 370.59 Td (and ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 448.30 364.59 Td (Amortization) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 493.85 370.59 Td (T) Tj ET Q q 0 0 0 rg BT 497.30 370.59 Td (otal Real ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 493.00 364.59 Td (Estate, Net) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 531.30 370.59 Td (Ownership ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 542.50 364.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 353.59 Td (Richardson Portfolio:) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 65.00 342.59 Td (Palisades Central I) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.55 342.59 Td (1) Tj ET Q q 0 0 0 rg BT 134.44 342.59 Td (1/23/201) Tj ET Q q 0 0 0 rg BT 155.55 342.59 Td (1) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 174.30 342.59 Td (Richardson) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.50 342.59 Td (TX) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.35 342.59 Td (Of) Tj ET Q q 0 0 0 rg BT 250.57 342.59 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 278.00 342.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 289.50 342.59 Td (1,037) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 312.00 342.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 336.50 342.59 Td (10,709) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 362.00 342.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 395.00 342.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 410.00 342.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 422.50 342.59 Td (1) Tj ET Q q 0 0 0 rg BT 425.50 342.59 Td (1,746) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 448.00 342.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 468.50 342.59 Td (\(2,479) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 342.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 493.00 342.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 508.50 342.59 Td (9,267) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 547.50 342.59 Td (90.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 342.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 65.00 331.59 Td (Palisades Central II) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.55 331.59 Td (1) Tj ET Q q 0 0 0 rg BT 134.44 331.59 Td (1/23/201) Tj ET Q q 0 0 0 rg BT 155.55 331.59 Td (1) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 174.30 331.59 Td (Richardson) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.50 331.59 Td (TX) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.35 331.59 Td (Of) Tj ET Q q 0 0 0 rg BT 250.57 331.59 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 294.00 331.59 Td (810) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 336.50 331.59 Td (18,397) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 395.00 331.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 422.50 331.59 Td (19,207) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 468.50 331.59 Td (\(4,230) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 331.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.50 331.59 Td (14,977) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 547.50 331.59 Td (90.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 331.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 65.00 320.59 Td (Greenway I) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.55 320.59 Td (1) Tj ET Q q 0 0 0 rg BT 134.44 320.59 Td (1/23/201) Tj ET Q q 0 0 0 rg BT 155.55 320.59 Td (1) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 174.30 320.59 Td (Richardson) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.50 320.59 Td (TX) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.35 320.59 Td (Of) Tj ET Q q 0 0 0 rg BT 250.57 320.59 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 294.00 320.59 Td (561) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 339.50 320.59 Td (2,1) Tj ET Q q 0 0 0 rg BT 347.00 320.59 Td (13) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 395.00 320.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 425.50 320.59 Td (2,674) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 473.00 320.59 Td (\(692) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 320.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 508.50 320.59 Td (1,982) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 547.50 320.59 Td (90.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 320.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 65.00 309.59 Td (Greenway III) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.55 309.59 Td (1) Tj ET Q q 0 0 0 rg BT 134.44 309.59 Td (1/23/201) Tj ET Q q 0 0 0 rg BT 155.55 309.59 Td (1) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 174.30 309.59 Td (Richardson) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.50 309.59 Td (TX) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.35 309.59 Td (Of) Tj ET Q q 0 0 0 rg BT 250.57 309.59 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 294.00 309.59 Td (702) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 339.50 309.59 Td (4,061) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 392.00 309.59 Td (559) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 425.50 309.59 Td (5,322) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 468.50 309.59 Td (\(1,858) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 309.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 508.50 309.59 Td (3,464) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 547.50 309.59 Td (90.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 309.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 65.00 292.59 Td (Undeveloped Land) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.55 292.59 Td (1) Tj ET Q q 0 0 0 rg BT 134.44 292.59 Td (1/23/201) Tj ET Q q 0 0 0 rg BT 155.55 292.59 Td (1) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 174.30 292.59 Td (Richardson) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.50 292.59 Td (TX) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 236.00 298.59 Td (Undeveloped) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.80 292.59 Td (Land) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 289.50 292.59 Td (3,134) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 347.00 292.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 395.00 292.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 425.50 292.59 Td (3,134) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 478.00 292.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 508.50 292.59 Td (3,134) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 547.50 292.59 Td (90.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 292.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 281.59 Td (T) Tj ET Q q 0 0 0 rg BT 56.25 281.59 Td (otal Richardson Portfolio) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 289.50 281.59 Td (6,244) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 336.50 281.59 Td (35,280) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 392.00 281.59 Td (559) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 422.50 281.59 Td (42,083) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 468.50 281.59 Td (\(9,259) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 281.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.50 281.59 Td (32,824) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 264.59 Td (Park Highlands ) Tj ET Q BT /F1 6.00 Tf ET BT /F1 3.90 Tf ET q 0 0 0 rg BT 91.66 267.31 Td (\(1\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.40 264.59 Td (12/30/201) Tj ET Q q 0 0 0 rg BT 155.62 264.59 Td (1) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 175.90 270.59 Td (North Las ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 180.80 264.59 Td (V) Tj ET Q q 0 0 0 rg BT 184.47 264.59 Td (egas) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.20 264.59 Td (NV) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 236.00 270.59 Td (Undeveloped ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.80 264.59 Td (Land) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 286.50 264.59 Td (33,430) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 347.00 264.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 395.00 264.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 422.50 264.59 Td (33,430) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 478.00 264.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.50 264.59 Td (33,430) Tj ET Q BT /F1 3.90 Tf ET q 0 0 0 rg BT 555.45 267.63 Td (\(1\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 253.59 Td (Burbank Collection) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.30 253.59 Td (12/12/2012) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 177.65 253.59 Td (Burbank) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.45 253.59 Td (CA) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.80 253.59 Td (Retail) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 289.50 253.59 Td (4,175) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 336.50 253.59 Td (12,536) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 392.00 253.59 Td (725) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 422.50 253.59 Td (17,436) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 468.50 253.59 Td (\(2,769) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 253.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.50 253.59 Td (14,667) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 547.50 253.59 Td (90.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 253.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 242.59 Td (Park Centre) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.30 242.59 Td (03/28/2013) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 179.95 242.59 Td (Austin) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.50 242.59 Td (TX) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.35 242.59 Td (Of) Tj ET Q q 0 0 0 rg BT 250.57 242.59 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 289.50 242.59 Td (3,251) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 336.50 242.59 Td (27,228) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 395.00 242.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 422.50 242.59 Td (30,479) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 468.50 242.59 Td (\(4,144) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 242.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.50 242.59 Td (26,335) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 544.50 242.59 Td (100.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 242.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 231.59 Td (1) Tj ET Q q 0 0 0 rg BT 55.78 231.59 Td (180 Raymond) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.30 231.59 Td (08/20/2013) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 178.50 231.59 Td (Newark) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 216.15 231.59 Td (NJ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 239.15 231.59 Td (Apartment) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 289.50 231.59 Td (8,292) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 336.50 231.59 Td (38,260) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 395.00 231.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 422.50 231.59 Td (46,552) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 468.50 231.59 Td (\(5,980) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 231.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.50 231.59 Td (40,572) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 544.50 231.59 Td (100.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 231.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 214.59 Td (Park Highlands II) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.30 214.59 Td (12/10/2013) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 175.90 220.59 Td (North Las ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 180.80 214.59 Td (V) Tj ET Q q 0 0 0 rg BT 184.47 214.59 Td (egas) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.20 214.59 Td (NV) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 236.00 220.59 Td (Undeveloped ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.80 214.59 Td (Land) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 286.50 214.59 Td (25,234) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 347.00 214.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 395.00 214.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 422.50 214.59 Td (25,234) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 478.00 214.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.50 214.59 Td (25,234) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 544.50 214.59 Td (100.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 214.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 203.59 Td (424 Bedford) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.30 203.59 Td (01/31/2014) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 176.65 203.59 Td (Brooklyn) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.25 203.59 Td (NY) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 239.15 203.59 Td (Apartment) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 289.50 203.59 Td (8,860) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 336.50 203.59 Td (25,837) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 395.00 203.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 422.50 203.59 Td (34,697) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 468.50 203.59 Td (\(3,204) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 203.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.50 203.59 Td (31,493) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 547.50 203.59 Td (90.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 203.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 186.59 Td (Richardson Land II) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.30 186.59 Td (09/04/2014) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 174.30 186.59 Td (Richardson) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.50 186.59 Td (TX) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 236.00 192.59 Td (Undeveloped ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.80 186.59 Td (Land) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 289.50 186.59 Td (3,418) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 347.00 186.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 395.00 186.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 425.50 186.59 Td (3,418) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 478.00 186.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 508.50 186.59 Td (3,418) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 547.50 186.59 Td (90.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 186.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 169.59 Td (W) Tj ET Q q 0 0 0 rg BT 58.18 169.59 Td (estpark Portfolio) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.30 169.59 Td (05/10/2016) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 176.30 169.59 Td (Redmond) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.00 169.59 Td (W) Tj ET Q q 0 0 0 rg BT 220.00 169.59 Td (A) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 237.35 175.59 Td (Of) Tj ET Q q 0 0 0 rg BT 243.57 175.59 Td (fice/Flex/) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 240.50 169.59 Td (Industrial) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 286.50 169.59 Td (36,085) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 336.50 169.59 Td (92,354) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 387.50 169.59 Td (6,588) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 419.50 169.59 Td (135,027) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 465.50 169.59 Td (\(10,557) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 169.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 502.50 169.59 Td (124,470) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 544.50 169.59 Td (100.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 169.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 158.59 Td (Crown Pointe) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.30 158.59 Td (02/14/2017) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 174.65 158.59 Td (Dunwoody) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.30 158.59 Td (GA) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.35 158.59 Td (Of) Tj ET Q q 0 0 0 rg BT 250.57 158.59 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 286.50 158.59 Td (22,590) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 336.50 158.59 Td (62,613) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 387.50 158.59 Td (5,559) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 422.50 158.59 Td (90,762) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 468.50 158.59 Td (\(5,734) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 158.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.50 158.59 Td (85,028) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 544.50 158.59 Td (100.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 158.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 147.59 Td (125 John Carpenter) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.30 147.59 Td (09/15/2017) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 180.65 147.59 Td (Irving) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.50 147.59 Td (TX) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.35 147.59 Td (Of) Tj ET Q q 0 0 0 rg BT 250.57 147.59 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 289.50 147.59 Td (2,755) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 336.50 147.59 Td (76,010) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 387.50 147.59 Td (8,840) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 422.50 147.59 Td (87,605) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 468.50 147.59 Td (\(3,416) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 147.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.50 147.59 Td (84,189) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 544.50 147.59 Td (100.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 147.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 136.59 Td (Marquette Plaza) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.30 136.59 Td (03/01/2018) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 173.00 136.59 Td (Minneapolis) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 214.65 136.59 Td (MN) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.35 136.59 Td (Of) Tj ET Q q 0 0 0 rg BT 250.57 136.59 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 286.50 136.59 Td (10,387) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 336.50 136.59 Td (71,385) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 387.50 136.59 Td (4,470) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 422.50 136.59 Td (86,242) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 468.50 136.59 Td (\(1,334) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 136.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.50 136.59 Td (84,908) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 544.50 136.59 Td (100.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 136.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 125.59 Td (City ) Tj ET Q q 0 0 0 rg BT 64.73 125.59 Td (T) Tj ET Q q 0 0 0 rg BT 67.97 125.59 Td (ower) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.30 125.59 Td (03/06/2018) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 179.15 125.59 Td (Orange) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.45 125.59 Td (CA) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.35 125.59 Td (Of) Tj ET Q q 0 0 0 rg BT 250.57 125.59 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 286.50 125.59 Td (13,930) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 333.50 125.59 Td (128,787) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 387.50 125.59 Td (8,150) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 419.50 125.59 Td (150,867) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 468.50 125.59 Td (\(2,166) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 125.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 502.50 125.59 Td (148,701) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 544.50 125.59 Td (100.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 125.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 114.59 Td (Eight & Nine Corporate ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 53.00 108.59 Td (Centre) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 131.30 108.59 Td (06/08/2018) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 177.80 108.59 Td (Franklin) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.50 108.59 Td (TN) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 244.35 108.59 Td (Of) Tj ET Q q 0 0 0 rg BT 250.57 108.59 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 286.50 108.59 Td (17,401) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 336.50 108.59 Td (54,009) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 387.50 108.59 Td (4,786) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 422.50 108.59 Td (76,196) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 473.00 108.59 Td (\(127) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 108.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 505.50 108.59 Td (76,069) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 544.50 108.59 Td (100.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 558.00 108.59 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 278.00 97.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 283.50 97.59 Td (196,052) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 312.00 97.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 333.50 97.59 Td (624,299) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 362.00 97.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 384.50 97.59 Td (39,677) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 410.00 97.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 419.50 97.59 Td (860,028) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 448.00 97.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 465.50 97.59 Td (\(48,690) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 484.00 97.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 493.00 97.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 502.50 97.59 Td (81) Tj ET Q q 0 0 0 rg BT 508.50 97.59 Td (1,338) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 50.00 73.27 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.06 69.65 Td ( On September 7, 2016, a subsidiary of the Company that owns a portion of Park Highlands, sold ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.13 69.65 Td (820) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.13 69.65 Td ( units of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.36 69.65 Td (10%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 424.02 69.65 Td ( Class ) Tj ET Q q 0 0 0 rg BT 444.91 69.65 Td (A) Tj ET Q q 0 0 0 rg BT 450.25 69.65 Td ( non-voting preferred membership ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 50.00 60.05 Td (units for ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 78.89 60.05 Td ($0.8 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 118.00 60.05 Td ( to accredited investors. ) Tj ET Q q 0 0 0 rg BT 195.83 60.05 Td (The amount of the Class ) Tj ET Q q 0 0 0 rg BT 275.59 60.05 Td (A) Tj ET Q q 0 0 0 rg BT 280.93 60.05 Td ( non-voting preferred membership units raised, net of of) Tj ET Q q 0 0 0 rg BT 460.51 60.05 Td (fering costs, is included in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 50.00 50.45 Td (other liabilities on the accompanying consolidated balance sheets.) Tj ET Q endstream endobj 33 0 obj <>] /Rotate 0 /Contents 34 0 R>> endobj 34 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.25 Td (Operating Leases) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 609.25 Td (Certain of the Company’) Tj ET Q q 0 0 0 rg BT 171.65 609.25 Td (s real estate properties are leased to tenants under operating leases for which the terms and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 597.25 Td (expirations vary) Tj ET Q q 0 0 0 rg BT 114.05 597.25 Td (. ) Tj ET Q q 0 0 0 rg BT 118.50 597.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.94 597.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.77 597.25 Td (, the leases, excluding options to extend and apartment leases \(which have terms that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 585.25 Td (generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.70 585.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.14 585.25 Td ( year or less\), had remaining terms of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.81 585.25 Td (13.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.31 585.25 Td ( years with a weighted-average remaining term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.90 585.25 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.40 585.25 Td ( years. Some ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 573.25 Td (of the leases have provisions to extend the lease agreements, options for early termination after paying a specified penalty) Tj ET Q q 0 0 0 rg BT 536.68 573.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 561.25 Td (rights of first refusal to purchase the property at competitive market rates, and other terms and conditions as negotiated. ) Tj ET Q q 0 0 0 rg BT 530.50 561.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 549.25 Td (Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally) Tj ET Q q 0 0 0 rg BT 543.10 549.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 537.25 Td (upon the execution of a lease, the Company requires a security deposit from tenants in the form of a cash deposit and/or a letter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 525.25 Td (of credit. ) Tj ET Q q 0 0 0 rg BT 88.41 525.25 Td (The amount required as a security deposit varies depending upon the terms of the respective leases and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 513.25 Td (creditworthiness of the tenant, but generally are not significant amounts. ) Tj ET Q q 0 0 0 rg BT 341.96 513.25 Td (Therefore, exposure to credit risk exists to the extent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 501.25 Td (that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash and assumed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 489.25 Td (real estate acquisitions related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 477.25 Td (and totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.65 477.25 Td ($5.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.54 477.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.98 477.25 Td ($4.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.87 477.25 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.03 477.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.86 477.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.30 477.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.88 477.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 444.55 477.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 459.25 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.55 459.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.22 459.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.04 459.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.87 459.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.31 459.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.31 459.25 Td (, the Company recognized deferred rent from tenants of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.22 459.25 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.11 459.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 447.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.94 447.25 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.83 447.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 168.49 447.25 Td (, net of lease incentive amortization. ) Tj ET Q q 0 0 0 rg BT 315.66 447.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.10 447.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.93 447.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.37 447.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.96 447.25 Td (, the cumulative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 435.25 Td (deferred rent receivable balance, including unamortized lease incentive receivables, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.38 435.25 Td ($8.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.27 435.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.71 435.25 Td ($6.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.60 435.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 423.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 423.25 Td (, and is included in rents and other receivables on the accompanying balance sheets. ) Tj ET Q q 0 0 0 rg BT 435.69 423.25 Td (The cumulative deferred rent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 411.25 Td (balance included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.97 411.25 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.86 411.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.30 411.25 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.19 411.25 Td ( of unamortized lease incentives as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.19 411.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.02 411.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.45 411.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.04 411.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 399.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 399.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 381.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.94 381.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.77 381.25 Td (, the future minimum rental income from the Company’) Tj ET Q q 0 0 0 rg BT 375.78 381.25 Td (s properties, excluding apartment leases, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 369.25 Td (under non-cancelable operating leases was as follows \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 352.75 398.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 352.75 115.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 328.75 398.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 328.75 115.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 304.75 398.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 304.75 115.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 280.75 398.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 280.75 115.00 -12.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 280.75 m 563.5 280.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 269.75 m 563.5 269.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 267.75 m 563.5 267.75 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 344.01 Td (July ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 70.25 344.01 Td (1, 2018 through December 31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 451.00 344.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.25 344.01 Td (30,024) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 332.01 Td (2019) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.25 332.01 Td (58,632) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 320.01 Td (2020) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.25 320.01 Td (52,340) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 308.01 Td (2021) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.25 308.01 Td (45,997) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 296.01 Td (2022) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.25 296.01 Td (38,248) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 284.01 Td (Thereafter) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.75 284.01 Td (124,051) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 451.00 272.01 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.75 272.01 Td (349,292) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 245.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.94 245.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.77 245.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 214.16 245.25 Td (s commercial real estate properties were leased to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.43 245.25 Td (350) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.43 245.25 Td ( tenants over a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 233.25 Td (diverse range of industries and geographic areas. No tenant industry concentration accounted for more than 10% of annualized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 221.25 Td (base rent and no tenant accounted for more than 10% of annualized base rent. No material tenant credit issues have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 209.25 Td (identified at this time. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 191.25 Td (Geographic Concentration Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 173.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.94 173.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.77 173.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 214.16 173.25 Td (s real estate investments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.85 173.25 Td (California) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.39 173.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.21 173.25 Td (T) Tj ET Q q 0 0 0 rg BT 374.62 173.25 Td (exas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.39 173.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 173.25 Td (W) Tj ET Q q 0 0 0 rg BT 420.28 173.25 Td (ashington) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.17 173.25 Td ( represented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.75 173.25 Td (14.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.58 173.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 161.25 Td (13.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.83 161.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.27 161.25 Td (1) Tj ET Q q 0 0 0 rg BT 99.90 161.25 Td (1.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.73 161.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 173.39 161.25 Td (, of the Company’) Tj ET Q q 0 0 0 rg BT 245.60 161.25 Td (s total assets. ) Tj ET Q q 0 0 0 rg BT 302.54 161.25 Td (As a result, the geographic concentration of the Company’) Tj ET Q q 0 0 0 rg BT 536.08 161.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 149.25 Td (portfolio makes it particularly susceptible to adverse economic developments in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.85 149.25 Td (California) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.39 149.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.21 149.25 Td (T) Tj ET Q q 0 0 0 rg BT 437.62 149.25 Td (exas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.39 149.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.64 149.25 Td (W) Tj ET Q q 0 0 0 rg BT 483.28 149.25 Td (ashington) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.17 149.25 Td ( real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 137.25 Td (estate markets. ) Tj ET Q q 0 0 0 rg BT 113.87 137.25 Td (Any adverse economic or real estate developments in these markets, such as business layof) Tj ET Q q 0 0 0 rg BT 478.02 137.25 Td (fs or downsizing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 125.25 Td (industry slowdowns, relocations of businesses, changing demographics and other factors, or any decrease in demand for of) Tj ET Q q 0 0 0 rg BT 541.07 125.25 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 113.25 Td (space resulting from the local business climate, could adversely af) Tj ET Q q 0 0 0 rg BT 314.73 113.25 Td (fect the Company’) Tj ET Q q 0 0 0 rg BT 388.60 113.25 Td (s operating results and its ability to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 101.25 Td (distributions to stockholders.) Tj ET Q endstream endobj 35 0 obj <>] /Rotate 0 /Contents 36 0 R>> endobj 36 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (16) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.25 Td (Recent ) Tj ET Q q 0 0 0 rg BT 81.38 627.25 Td (Acquisitions) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 609.25 Td (Marquette Plaza) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 594.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.22 594.25 Td (March 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.82 594.25 Td (, the Company) Tj ET Q q 0 0 0 rg BT 203.77 594.25 Td (, through an indirect wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 387.26 594.25 Td (, acquired an of) Tj ET Q q 0 0 0 rg BT 449.27 594.25 Td (fice property containing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.25 Td (522,656) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 582.25 Td ( rentable square feet located on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.66 582.25 Td (2.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.16 582.25 Td ( acres of land in Minneapolis, Minnesota \(“Marquette Plaza”\). ) Tj ET Q q 0 0 0 rg BT 473.84 582.25 Td (The seller is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 570.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.59 570.25 Td (filiated with the Company or the ) Tj ET Q q 0 0 0 rg BT 189.79 570.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 221.46 570.25 Td (. ) Tj ET Q q 0 0 0 rg BT 226.27 570.25 Td (The purchase price \(net of closing credits\) of Marquette Plaza was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.22 570.25 Td ($88.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.12 570.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.25 Td (plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.17 558.25 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.06 558.25 Td ( of capitalized acquisition costs. ) Tj ET Q q 0 0 0 rg BT 248.40 558.25 Td (The Company recorded this acquisition as an asset acquisition and recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.25 Td ($10.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.89 546.25 Td ( to land, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 546.25 Td ($71.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.78 546.25 Td ( to building and improvements, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.54 546.25 Td ($4.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.43 546.25 Td ( to tenant origination and absorption costs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.18 546.25 Td ($3.7 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 534.25 Td ( to above-market lease assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.39 534.25 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.29 534.25 Td ( to below-market lease liabilities. ) Tj ET Q q 0 0 0 rg BT 398.62 534.25 Td (The intangible assets and liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.25 Td (acquired in connection with this acquisition have weighted-average amortization periods as of the date of acquisition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.68 522.25 Td (6.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.18 522.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.25 Td (years for tenant origination and absorption costs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.73 510.25 Td (1) Tj ET Q q 0 0 0 rg BT 252.36 510.25 Td (1.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.86 510.25 Td ( years for above-market lease assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.84 510.25 Td (2.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.34 510.25 Td ( years for below-market lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.25 Td (liabilities. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 480.25 Td (City T) Tj ET Q q 0 0 0 rg BT 74.36 480.25 Td (ower) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 465.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.22 465.25 Td (March 6, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.82 465.25 Td (, the Company) Tj ET Q q 0 0 0 rg BT 203.77 465.25 Td (, through an indirect wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 387.26 465.25 Td (, acquired an of) Tj ET Q q 0 0 0 rg BT 449.27 465.25 Td (fice building containing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 453.25 Td (431,007) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 453.25 Td ( rentable square feet located on approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.92 453.25 Td (4.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.42 453.25 Td ( acres of land in Orange, California \(“City ) Tj ET Q q 0 0 0 rg BT 453.56 453.25 Td (T) Tj ET Q q 0 0 0 rg BT 458.97 453.25 Td (ower”\). ) Tj ET Q q 0 0 0 rg BT 491.55 453.25 Td (The seller is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 441.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.59 441.25 Td (filiated with the Company or the ) Tj ET Q q 0 0 0 rg BT 189.79 441.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 221.46 441.25 Td (. ) Tj ET Q q 0 0 0 rg BT 226.27 441.25 Td (The purchase price \(net of closing credits\) of City ) Tj ET Q q 0 0 0 rg BT 427.97 441.25 Td (T) Tj ET Q q 0 0 0 rg BT 433.38 441.25 Td (ower was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.92 441.25 Td ($147.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.81 441.25 Td ( plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 429.25 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.89 429.25 Td ( of capitalized acquisition costs. ) Tj ET Q q 0 0 0 rg BT 229.23 429.25 Td (The Company recorded this acquisition as an asset acquisition and recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.97 429.25 Td ($13.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 417.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 417.25 Td ( to land, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.89 417.25 Td ($127.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.78 417.25 Td ( to building and improvements, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.54 417.25 Td ($8.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.43 417.25 Td ( to tenant origination and absorption costs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.62 417.25 Td ($1.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 405.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 405.25 Td ( to below-market lease liabilities. ) Tj ET Q q 0 0 0 rg BT 214.22 405.25 Td (The intangible assets and liabilities acquired in connection with this acquisition have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 393.25 Td (weighted-average amortization periods as of the date of acquisition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.12 393.25 Td (5.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.62 393.25 Td ( years for tenant origination and absorption costs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 381.25 Td (6.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 381.25 Td ( years for below-market lease liabilities. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 363.25 Td (Eight & Nine Corporate Centre) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 348.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.22 348.25 Td (June 8, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.05 348.25 Td (, the Company) Tj ET Q q 0 0 0 rg BT 196.01 348.25 Td (, through an indirect wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 379.49 348.25 Td (, acquired an of) Tj ET Q q 0 0 0 rg BT 441.50 348.25 Td (fice building consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 336.25 Td (two buildings containing an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.07 336.25 Td (31) Tj ET Q q 0 0 0 rg BT 225.70 336.25 Td (1,864) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.20 336.25 Td ( rentable square feet located on approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.62 336.25 Td (27.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.12 336.25 Td ( acres of land in Franklin, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 324.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 324.25 Td (ennessee \(“Eight & Nine Corporate Centre”\). ) Tj ET Q q 0 0 0 rg BT 239.33 324.25 Td (The seller is not af) Tj ET Q q 0 0 0 rg BT 313.56 324.25 Td (filiated with the Company or the ) Tj ET Q q 0 0 0 rg BT 445.76 324.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 477.43 324.25 Td (. ) Tj ET Q q 0 0 0 rg BT 482.25 324.25 Td (The purchase price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 312.25 Td (\(net of closing credits\) of Eight & Nine Corporate Centre was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 312.25 Td ($73.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.54 312.25 Td ( plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.21 312.25 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.11 312.25 Td ( of capitalized acquisition costs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 300.25 Td (The Company recorded this acquisition as an asset acquisition and recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.74 300.25 Td ($17.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.63 300.25 Td ( to land, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.63 300.25 Td ($54.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.52 300.25 Td ( to building and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 288.25 Td (improvements, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.21 288.25 Td ($4.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.10 288.25 Td ( to tenant origination and absorption costs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.29 288.25 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.18 288.25 Td ( to below-market lease liabilities. ) Tj ET Q q 0 0 0 rg BT 532.51 288.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 276.25 Td (intangible assets and liabilities acquired in connection with this acquisition have weighted-average amortization periods as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 264.25 Td (the date of acquisition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.91 264.25 Td (6.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.41 264.25 Td ( years for tenant origination and absorption costs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.08 264.25 Td (7.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.58 264.25 Td ( years for below-market lease liabilities. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 246.25 Td (Recent Real Estate Land Sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 228.25 Td (On February 28, 2018, the Company sold approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.35 228.25 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.35 228.25 Td ( developable acres of Park Highlands undeveloped land for an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 216.25 Td (aggregate sales price, net of closing credits, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.71 216.25 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.60 216.25 Td (, excluding closing costs. ) Tj ET Q q 0 0 0 rg BT 389.74 216.25 Td (The purchasers are not af) Tj ET Q q 0 0 0 rg BT 490.62 216.25 Td (filiated with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 204.25 Td (Company or the ) Tj ET Q q 0 0 0 rg BT 116.38 204.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 148.05 204.25 Td (. ) Tj ET Q q 0 0 0 rg BT 152.87 204.25 Td (The Company recognized a gain on sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.70 204.25 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.59 204.25 Td ( related to the land sale, which is net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 192.25 Td (deferred profit of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.35 192.25 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.24 192.25 Td ( related to proceeds received from the purchaser for the value of land that was contributed to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 180.25 Td (master association which is consolidated by the Company) Tj ET Q q 0 0 0 rg BT 280.69 180.25 Td (. ) Tj ET Q endstream endobj 37 0 obj <>] /Rotate 0 /Contents 38 0 R>> endobj 38 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 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 49.50 627.25 Td (4. ) Tj ET Q q 0 0 0 rg BT 72.00 627.25 Td (TENANT) Tj ET Q q 0 0 0 rg BT 113.49 627.25 Td ( ORIGINA) Tj ET Q q 0 0 0 rg BT 160.26 627.25 Td (TION ) Tj ET Q q 0 0 0 rg BT 187.77 627.25 Td (AND ) Tj ET Q q 0 0 0 rg BT 211.38 627.25 Td (ABSORPTION COSTS, ) Tj ET Q q 0 0 0 rg BT 317.24 627.25 Td (ABOVE-MARKET) Tj ET Q q 0 0 0 rg BT 400.96 627.25 Td ( LEASE ) Tj ET Q q 0 0 0 rg BT 438.20 627.25 Td (ASSETS ) Tj ET Q q 0 0 0 rg BT 477.39 627.25 Td (AND BELOW) Tj ET Q q 0 0 0 rg BT 538.97 627.25 Td (-) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 615.25 Td (MARKET) Tj ET Q q 0 0 0 rg BT 116.82 615.25 Td ( LEASE LIABILITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 597.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 597.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 597.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.71 597.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.30 597.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 311.68 597.25 Td (s tenant origination and absorption costs, above-market lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.25 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 49.50 573.25 Td (follows \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 522.75 99.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 149.00 522.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 153.00 522.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 522.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 216.00 522.75 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 522.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 522.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 522.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 522.75 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 522.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 522.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 522.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 522.75 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 496.75 99.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 149.00 496.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 153.00 496.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.00 496.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 216.00 496.75 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 496.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 496.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 496.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 496.75 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 496.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 496.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 496.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 496.75 71.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 535.75 m 212 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 535.75 m 216 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216 535.75 m 287 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 535.75 m 350 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 535.75 m 354 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 535.75 m 425 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 535.75 m 488 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 535.75 m 492 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 535.75 m 563 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 535.75 m 212 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 522.75 m 212 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 535.75 m 216 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216 535.75 m 287 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 535.75 m 350 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 522.75 m 350 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 535.75 m 354 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 535.75 m 425 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 535.75 m 488 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 535.75 m 492 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 535.75 m 563 535.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 522.75 m 212 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216 522.75 m 287 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 522.75 m 350 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 522.75 m 425 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 522.75 m 488 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 522.75 m 563 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 496.75 m 212 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216 496.75 m 287 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 496.75 m 350 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 496.75 m 425 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 496.75 m 488 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 496.75 m 563 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 496.75 m 212 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 484.75 m 212 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 482.75 m 212 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216 496.75 m 287 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216 484.75 m 287 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216 482.75 m 287 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 496.75 m 350 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 484.75 m 350 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 482.75 m 350 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 496.75 m 425 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 484.75 m 425 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 482.75 m 425 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 484.75 m 488 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 482.75 m 488 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 496.75 m 563 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 484.75 m 563 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 482.75 m 563 482.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 540.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 179.15 547.98 Td (T) Tj ET Q q 0 0 0 rg BT 183.75 547.98 Td (enant Origination and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 189.80 539.98 Td (Absorption Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 332.35 547.98 Td (Above-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.25 539.98 Td (Lease ) Tj ET Q q 0 0 0 rg BT 357.36 539.98 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 470.80 547.98 Td (Below-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.60 539.98 Td (Lease Liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 527.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 158.75 526.98 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 218.75 526.98 Td (December) Tj ET Q q 0 0 0 rg BT 253.32 526.98 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.75 526.98 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 356.75 526.98 Td (December) Tj ET Q q 0 0 0 rg BT 391.32 526.98 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.75 526.98 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.75 526.98 Td (December) Tj ET Q q 0 0 0 rg BT 529.25 526.98 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 514.00 Td (Cost) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 155.50 514.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.80 514.00 Td (39,677) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 218.50 514.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 261.80 514.00 Td (23,212) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 514.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.80 514.00 Td (3,731) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.50 514.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 514.00 Td (17) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 514.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.10 514.00 Td (\(7,298) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.80 514.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.50 514.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 514.00 Td (\(3,636) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 514.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 501.00 Td (Accumulated ) Tj ET Q q 0 0 0 rg BT 96.93 501.00 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 188.10 501.00 Td (\(8,331) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.80 501.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.10 501.00 Td (\(5,733) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 283.80 501.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.10 501.00 Td (\(144) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 346.80 501.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.10 501.00 Td (\(7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.80 501.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.80 501.00 Td (1,287) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 501.00 Td (793) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 488.00 Td (Net ) Tj ET Q q 0 0 0 rg BT 65.61 488.00 Td (Amount) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 155.50 488.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.80 488.00 Td (31,346) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 218.50 488.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 261.80 488.00 Td (17,479) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 488.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.80 488.00 Td (3,587) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.50 488.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 488.00 Td (10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 488.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.10 488.00 Td (\(6,01) Tj ET Q q 0 0 0 rg BT 480.76 488.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.80 488.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.50 488.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 488.00 Td (\(2,843) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 488.00 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 460.25 Td (Increases \(decreases\) in net income as a result of amortization of the Company’) Tj ET Q q 0 0 0 rg BT 389.66 460.25 Td (s tenant origination and absorption costs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 448.25 Td (above-market lease assets and below-market lease liabilities for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.34 448.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.32 448.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.76 448.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.43 448.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.25 448.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.08 448.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.52 448.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.52 448.25 Td ( were as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 436.25 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 364.75 135.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 364.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 364.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.00 364.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 364.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.00 364.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.00 364.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 364.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 364.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 364.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.00 364.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 364.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 364.75 59.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 398.75 m 247 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247 398.75 m 251 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 398.75 m 310 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 398.75 m 373 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 398.75 m 377 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 398.75 m 436 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 398.75 m 499 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 398.75 m 503 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 398.75 m 562 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 398.75 m 247 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 377.75 m 247 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247 398.75 m 251 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247 377.75 m 251 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 398.75 m 310 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 377.75 m 310 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 398.75 m 373 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 377.75 m 373 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 398.75 m 377 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 377.75 m 377 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 398.75 m 436 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 377.75 m 436 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 398.75 m 499 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 377.75 m 499 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 398.75 m 503 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 377.75 m 503 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 398.75 m 562 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 377.75 m 562 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 364.75 m 247 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 364.75 m 310 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 364.75 m 373 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 364.75 m 436 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 364.75 m 499 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 364.75 m 562 364.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 403.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 208.15 410.98 Td (T) Tj ET Q q 0 0 0 rg BT 212.75 410.98 Td (enant Origination and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 218.80 402.98 Td (Absorption Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.35 410.98 Td (Above-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.25 402.98 Td (Lease ) Tj ET Q q 0 0 0 rg BT 374.36 402.98 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.80 410.98 Td (Below-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.60 402.98 Td (Lease Liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 382.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 198.70 389.98 Td (For) Tj ET Q q 0 0 0 rg BT 210.99 389.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 225.51 389.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 238.70 389.98 Td (ee Months Ended ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 234.25 381.98 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 324.70 389.98 Td (For) Tj ET Q q 0 0 0 rg BT 337.07 389.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 351.58 389.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 364.78 389.98 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.25 381.98 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.70 389.98 Td (For) Tj ET Q q 0 0 0 rg BT 462.99 389.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 477.51 389.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 490.70 389.98 Td (ee Months Ended ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 486.25 381.98 Td (June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 369.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 209.00 368.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 272.00 368.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.00 368.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.00 368.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.00 368.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.00 368.98 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 356.00 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 190.50 356.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 223.10 356.00 Td (\(2,088) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 243.80 356.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.50 356.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 286.10 356.00 Td (\(3,135) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.80 356.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 316.50 356.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 356.00 Td (\(1) Tj ET Q q 0 0 0 rg BT 361.76 356.00 Td (1) Tj ET Q q 0 0 0 rg BT 365.76 356.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.80 356.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 379.50 356.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 422.10 356.00 Td (\(78) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 432.80 356.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 442.50 356.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 356.00 Td (385) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.50 356.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 356.00 Td (1,221) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 274.75 135.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 274.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 274.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.00 274.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 274.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.00 274.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.00 274.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 274.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 274.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 274.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.00 274.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 274.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 274.75 59.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 308.75 m 247 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247 308.75 m 251 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 308.75 m 310 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 308.75 m 373 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 308.75 m 377 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 308.75 m 436 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 308.75 m 499 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 308.75 m 503 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 308.75 m 562 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 308.75 m 247 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 287.75 m 247 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247 308.75 m 251 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247 287.75 m 251 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 308.75 m 310 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 287.75 m 310 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 308.75 m 373 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 287.75 m 373 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 308.75 m 377 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 287.75 m 377 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 308.75 m 436 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 287.75 m 436 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 308.75 m 499 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 287.75 m 499 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 308.75 m 503 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 287.75 m 503 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 308.75 m 562 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 287.75 m 562 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 274.75 m 247 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 274.75 m 310 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 274.75 m 373 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 274.75 m 436 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 274.75 m 499 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 274.75 m 562 274.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 313.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 208.15 320.98 Td (T) Tj ET Q q 0 0 0 rg BT 212.75 320.98 Td (enant Origination and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 218.80 312.98 Td (Absorption Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.35 320.98 Td (Above-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.25 312.98 Td (Lease ) Tj ET Q q 0 0 0 rg BT 374.36 312.98 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.80 320.98 Td (Below-Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.60 312.98 Td (Lease Liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 292.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 203.45 299.98 Td (For) Tj ET Q q 0 0 0 rg BT 215.74 299.98 Td ( the Six Months Ended ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 234.25 291.98 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 329.45 299.98 Td (For) Tj ET Q q 0 0 0 rg BT 341.82 299.98 Td ( the Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.25 291.98 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.45 299.98 Td (For) Tj ET Q q 0 0 0 rg BT 467.74 299.98 Td ( the Six Months Ended ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 486.25 291.98 Td (June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 279.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 209.00 278.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 272.00 278.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.00 278.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.00 278.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.00 278.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.00 278.98 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 266.00 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 190.50 266.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 223.10 266.00 Td (\(3,625) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 243.80 266.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.50 266.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 286.10 266.00 Td (\(6,078) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.80 266.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 316.50 266.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 266.00 Td (\(155) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.80 266.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 379.50 266.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.10 266.00 Td (\(167) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 432.80 266.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 442.50 266.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 266.00 Td (655) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 505.50 266.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 266.00 Td (2,204) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 238.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 123.40 238.25 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.06 238.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.89 238.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.33 238.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.92 238.25 Td (, the Company had recorded tax abatement intangible assets, net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (of amortization, which are included in prepaid expenses and other assets in the accompanying balance sheets, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.73 226.25 Td ($4.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.62 226.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 214.25 Td ($5.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.33 214.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 167.99 214.25 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.54 214.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.52 214.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.96 214.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.63 214.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.46 214.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.29 214.25 Td (, the Company recorded amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.04 202.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.93 202.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.37 202.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.26 202.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 264.92 202.25 Td (, related to tax abatement intangible assets. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.57 202.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.56 202.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.00 202.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.67 202.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 190.25 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 190.25 Td (, the Company recorded amortization expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.81 190.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.70 190.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.14 190.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.03 190.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 530.69 190.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (related to tax abatement intangible assets. ) Tj ET Q endstream endobj 39 0 obj <>] /Rotate 0 /Contents 40 0 R>> endobj 40 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 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 /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 627.75 Td (5. ) Tj ET Q q 0 0 0 rg BT 72.00 627.75 Td (REAL) Tj ET Q q 0 0 0 rg BT 99.23 627.75 Td ( EST) Tj ET Q q 0 0 0 rg BT 119.89 627.75 Td (A) Tj ET Q q 0 0 0 rg BT 126.37 627.75 Td (TE EQUITY) Tj ET Q q 0 0 0 rg BT 181.29 627.75 Td ( SECURITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 609.75 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 609.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 609.75 Td (, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.04 609.75 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.02 609.75 Td ( investments in real estate equity securities. ) Tj ET Q q 0 0 0 rg BT 439.90 609.75 Td (The following table sets forth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 597.75 Td (the number of shares owned by the Company and the related carrying value of the shares as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.37 597.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.20 597.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.64 597.75 Td (December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.75 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 585.75 Td ( \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 535.25 221.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 535.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 535.25 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 535.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.00 535.25 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 535.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 535.25 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 535.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 535.25 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 509.25 221.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 509.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 509.25 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 509.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.00 509.25 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 509.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 509.25 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 509.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 509.25 69.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 556.25 m 344 556.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 556.25 m 348 556.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348 556.25 m 417 556.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 556.25 m 490 556.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 556.25 m 494 556.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 556.25 m 563 556.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 535.25 m 271 535.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 556.25 m 344 556.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 535.25 m 344 535.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 556.25 m 348 556.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348 556.25 m 417 556.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348 535.25 m 417 535.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 556.25 m 490 556.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 535.25 m 490 535.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 556.25 m 494 556.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 556.25 m 563 556.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 535.25 m 563 535.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 535.25 m 344 535.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348 535.25 m 417 535.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 535.25 m 490 535.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 535.25 m 563 535.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 496.25 m 344 496.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 484.25 m 344 484.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 482.25 m 344 482.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348 496.25 m 417 496.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348 484.25 m 417 484.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348 482.25 m 417 482.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 496.25 m 490 496.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 484.25 m 490 484.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 482.25 m 490 482.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 496.25 m 563 496.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 484.25 m 563 484.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 482.25 m 563 482.25 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.25 560.48 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.25 560.48 Td (December) Tj ET Q q 0 0 0 rg BT 493.82 560.48 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 539.48 Td (Real Estate Equity Security) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.00 547.48 Td (Number) Tj ET Q q 0 0 0 rg BT 306.30 547.48 Td ( of Shar) Tj ET Q q 0 0 0 rg BT 333.27 547.48 Td (es ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.75 539.48 Td (Owned) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 356.45 547.48 Td (T) Tj ET Q q 0 0 0 rg BT 361.42 547.48 Td (otal Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.35 539.48 Td (V) Tj ET Q q 0 0 0 rg BT 377.76 539.48 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 424.00 547.48 Td (Number) Tj ET Q q 0 0 0 rg BT 452.30 547.48 Td ( of Shar) Tj ET Q q 0 0 0 rg BT 479.27 547.48 Td (es ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.75 539.48 Td (Owned) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.45 547.48 Td (T) Tj ET Q q 0 0 0 rg BT 507.05 547.48 Td (otal Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.35 539.48 Td (V) Tj ET Q q 0 0 0 rg BT 523.39 539.48 Td (alue) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 526.50 Td (Whitestone REIT) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 526.50 Td (3,768,189) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 350.50 526.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.80 526.50 Td (47,027) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 526.50 Td (3,603,189) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 526.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 526.50 Td (51,922) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 513.50 Td (Keppel-KBS US REIT) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.80 513.50 Td (43,999,500) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.80 513.50 Td (38,102) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 450.80 513.50 Td (43,999,500) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 513.50 Td (38,141) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 500.50 Td (Franklin Street Properties Corp.) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 500.50 Td (1,576,809) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.80 500.50 Td (13,498) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.80 500.50 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 500.50 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.80 487.50 Td (49,344,498) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 350.50 487.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.80 487.50 Td (98,627) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 450.80 487.50 Td (47,602,689) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 487.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 487.50 Td (90,063) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 459.75 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 459.75 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.72 459.75 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.54 459.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.37 459.75 Td (, the Company purchased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.51 459.75 Td (165,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.01 459.75 Td ( shares of common stock of ) Tj ET Q q 0 0 0 rg BT 496.59 459.75 Td (Whitestone ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.75 Td (REIT) Tj ET Q q 0 0 0 rg BT 71.54 447.75 Td ( \(NYSE ) Tj ET Q q 0 0 0 rg BT 105.80 447.75 Td (T) Tj ET Q q 0 0 0 rg BT 111.56 447.75 Td (icker: ) Tj ET Q q 0 0 0 rg BT 136.64 447.75 Td (WSR\) for an aggregate purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.95 447.75 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.84 447.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.28 447.75 Td (1,576,809) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.28 447.75 Td ( shares of common stock of Franklin ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.75 Td (Street Properties Corp. \(NYSE ) Tj ET Q q 0 0 0 rg BT 175.13 435.75 Td (T) Tj ET Q q 0 0 0 rg BT 180.89 435.75 Td (icker: FSP\) for an aggregate purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.48 435.75 Td ($14.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.38 435.75 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 417.75 Td (On November 8, 2017, the Company acquired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.96 417.75 Td (43,999,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.96 417.75 Td ( shares of common units of Keppel-KBS US REIT) Tj ET Q q 0 0 0 rg BT 508.53 417.75 Td ( \(SGX ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 405.75 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 405.75 Td (icker: CMOU\) in connection with the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.88 405.75 Td (1) Tj ET Q q 0 0 0 rg BT 241.51 405.75 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.51 405.75 Td ( properties to Keppel-KBS US REIT) Tj ET Q q 0 0 0 rg BT 392.69 405.75 Td (. ) Tj ET Q q 0 0 0 rg BT 397.51 405.75 Td (The Company agreed not to sell, transfer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.75 Td (or assign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.83 393.75 Td (21,999,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.83 393.75 Td ( units of the Keppel-KBS US REIT) Tj ET Q q 0 0 0 rg BT 274.30 393.75 Td ( issued to the Company at closing of the transaction until May 8, 2018 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.75 Td (and the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.20 381.75 Td (21,999,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.20 381.75 Td ( units until November 8, 2018 \(the “Unit Lockout Periods”\). ) Tj ET Q q 0 0 0 rg BT 412.49 381.75 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.94 381.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.77 381.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.75 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 369.75 Td (, a lack of marketability discount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.04 369.75 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.93 369.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.37 369.75 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.26 369.75 Td (, respectively) Tj ET Q q 0 0 0 rg BT 442.92 369.75 Td (, was recorded as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.75 Td (the remaining Unit Lockout Period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 339.75 Td (The following summarizes the activity related to real estate equity securities for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.77 339.75 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.44 339.75 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.26 339.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.09 339.75 Td ( \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.75 Td (thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 290.25 247.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 290.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.00 290.25 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 290.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 290.25 86.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 290.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 290.25 83.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 264.25 247.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 264.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.00 264.25 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 264.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 264.25 86.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 264.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 264.25 83.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 238.25 247.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 238.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.00 238.25 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 238.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 238.25 86.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 238.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 238.25 83.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 290.25 m 386 290.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 290.25 m 476 290.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480 290.25 m 563 290.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 238.25 m 476 238.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 238.25 m 386 238.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 226.25 m 386 226.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 224.25 m 386 224.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 238.25 m 476 238.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 226.25 m 476 226.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 224.25 m 476 224.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480 238.25 m 563 238.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480 226.25 m 563 226.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480 224.25 m 563 224.25 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 306.10 294.48 Td (Amortized Cost Basis) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.90 302.48 Td (Unr) Tj ET Q q 0 0 0 rg BT 416.53 302.48 Td (ealized ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.08 302.48 Td (Gains ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 414.65 294.48 Td (\(Losses\) ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 444.20 298.11 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.25 294.48 Td (T) Tj ET Q q 0 0 0 rg BT 516.85 294.48 Td (otal) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 281.50 Td (Real estate equity securities - ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 148.24 281.50 Td (December 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.50 281.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.80 281.50 Td (64,917) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.50 281.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 450.80 281.50 Td (25,146) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.50 281.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 281.50 Td (90,063) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 268.50 Td (Acquisition of real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.80 268.50 Td (15,676) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.80 268.50 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 268.50 Td (15,676) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 255.50 Td (Acquisition fee to af) Tj ET Q q 0 0 0 rg BT 117.89 255.50 Td (filiate and purchase commission) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.80 255.50 Td (175) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.80 255.50 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 255.50 Td (175) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 242.50 Td (Unrealized change in market value of real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.80 242.50 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 452.10 242.50 Td (\(7,287) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 242.50 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 242.50 Td (\(7,287) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 242.50 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 229.50 Td (Real estate equity securities -) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 146.24 229.50 Td ( June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.50 229.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.80 229.50 Td (80,768) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.50 229.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 450.80 229.50 Td (17,859) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.50 229.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 229.50 Td (98,627) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 213.75 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 204.77 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 201.15 Td ( ) Tj ET Q q 0 0 0 rg BT 57.12 201.15 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.68 201.15 Td (December 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 139.54 201.15 Td (, unrealized gain \(losses\) due to the change in market value of real estate equity securities was recorded to accumulated other ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 191.55 Td (comprehensive income. Ef) Tj ET Q q 0 0 0 rg BT 134.88 191.55 Td (fective January 1, 2018, upon the adoption of ) Tj ET Q q 0 0 0 rg BT 281.51 191.55 Td (ASU No. 2016-01, unrealized gain \(losses\) on real estate equity securities are recorded ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 181.95 Td (in earnings on the accompanying consolidated statement of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 157.95 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 157.95 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.03 157.95 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.47 157.95 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.14 157.95 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.97 157.95 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.80 157.95 Td (, the Company recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.26 157.95 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.15 157.95 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.59 157.95 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.48 157.95 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.95 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 145.95 Td (, of dividend income from real estate equity securities. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.91 145.95 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.90 145.95 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.34 145.95 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.01 145.95 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.83 145.95 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.66 145.95 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.95 Td (Company recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.25 133.95 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.14 133.95 Td ( of dividend income from real estate equity securities. ) Tj ET Q endstream endobj 41 0 obj <>] /Rotate 0 /Contents 42 0 R>> endobj 42 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 627.75 Td (6. ) Tj ET Q q 0 0 0 rg BT 72.00 627.75 Td (REAL) Tj ET Q q 0 0 0 rg BT 99.23 627.75 Td ( EST) Tj ET Q q 0 0 0 rg BT 119.89 627.75 Td (A) Tj ET Q q 0 0 0 rg BT 126.37 627.75 Td (TE DEBT) Tj ET Q q 0 0 0 rg BT 169.26 627.75 Td ( SECURITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 609.75 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 609.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 609.75 Td (, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.04 609.75 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.48 609.75 Td ( investment in real estate debt securities. ) Tj ET Q q 0 0 0 rg BT 417.68 609.75 Td (The Company’) Tj ET Q q 0 0 0 rg BT 477.40 609.75 Td (s investment in real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 597.75 Td (estate debt securities is classified as held to maturity) Tj ET Q q 0 0 0 rg BT 258.24 597.75 Td (, as the Company has the intent and ability to hold its investment until ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.75 Td (maturity) Tj ET Q q 0 0 0 rg BT 82.73 585.75 Td (, and it is not more likely than not that the Company would be required to sell its investment before recovery of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 573.75 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 573.75 Td (s amortized cost basis. ) Tj ET Q q 0 0 0 rg BT 185.96 573.75 Td (The information for those real estate debt securities as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.88 573.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.71 573.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 573.75 Td (December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 561.75 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 561.75 Td ( is set forth below \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 522.25 99.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 149.00 522.25 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 153.00 522.25 39.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 192.00 522.25 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 196.00 522.25 38.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.00 522.25 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.00 522.25 68.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.00 522.25 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.00 522.25 54.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.00 522.25 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.00 522.25 59.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 522.25 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 522.25 39.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 522.25 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 522.25 51.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 525.00 522.25 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 529.00 522.25 34.00 -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 153 522.25 m 192 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 196 522.25 m 234 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238 522.25 m 306 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 522.25 m 364 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 522.25 m 427 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 522.25 m 470 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 522.25 m 525 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 529 522.25 m 563 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 522.25 m 149 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 522.25 m 364 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 522.25 m 427 522.25 l s BT /F2 6.00 Tf ET q 0 0 0 rg BT 52.50 526.09 Td (Debt Securities Name) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 164.80 532.09 Td (Dates) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 160.05 526.09 Td (Acquir) Tj ET Q q 0 0 0 rg BT 178.00 526.09 Td (ed) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 208.30 538.09 Td (Debt) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 202.00 532.09 Td (Securities) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 208.20 526.09 Td (T) Tj ET Q q 0 0 0 rg BT 211.98 526.09 Td (ype) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 242.90 538.09 Td (Outstanding Principal ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 254.65 532.09 Td (Balance as of) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 251.05 526.09 Td (June 30, 2018 ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 287.39 528.81 Td (\(1\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 315.20 532.09 Td (Book ) Tj ET Q q 0 0 0 rg BT 329.93 532.09 Td (V) Tj ET Q q 0 0 0 rg BT 333.71 532.09 Td (alue as of) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 316.05 526.09 Td (June 30, 2018 ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 352.39 528.81 Td (\(2\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 375.70 532.09 Td (Book ) Tj ET Q q 0 0 0 rg BT 390.43 532.09 Td (V) Tj ET Q q 0 0 0 rg BT 394.21 532.09 Td (alue as of) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 370.50 526.09 Td (December) Tj ET Q q 0 0 0 rg BT 396.38 526.09 Td ( 31, 2017) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 418.88 528.81 Td (\(2\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 434.50 538.09 Td (Contractual ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 440.05 532.09 Td (Inter) Tj ET Q q 0 0 0 rg BT 452.94 532.09 Td (est ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 440.95 526.09 Td (Rate ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 454.44 528.81 Td (\(3\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 484.30 538.09 Td (Annualized ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 487.65 532.09 Td (Effective) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 479.25 526.09 Td (Inter) Tj ET Q q 0 0 0 rg BT 492.14 526.09 Td (est Rate ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 514.13 528.81 Td (\(3\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 533.80 532.09 Td (Maturity) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 539.50 526.09 Td (Date) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 503.09 Td (Battery Point Series B Preferred Units) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 156.70 515.09 Td (10/28/2016 /) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 156.70 509.09 Td (03/30/2017 /) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 158.30 503.09 Td (05/12/2017 ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 204.40 515.09 Td (Series B) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 203.30 509.09 Td (Preferred) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 207.95 503.09 Td (Units) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 240.50 503.09 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 287.00 503.09 Td (17,500) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 312.50 503.09 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 345.00 503.09 Td (17,879) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.50 503.09 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 408.00 503.09 Td (17,751) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 454.00 503.09 Td (12.0) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 464.50 503.09 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 509.00 503.09 Td (1) Tj ET Q q 0 0 0 rg BT 512.00 503.09 Td (1.1) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 519.50 503.09 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 532.15 503.09 Td (10/28/2019) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 487.75 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 478.77 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 475.15 Td ( Outstanding principal balance as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 172.86 475.15 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 217.52 475.15 Td ( represents principal balance outstanding under the real estate debt securities. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 466.18 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 462.55 Td (Book value of the real estate debt securities represents outstanding principal balance adjusted for unamortized acquisition discounts, origination fees and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 452.95 Td (direct origination and acquisition costs and additional interest accretion.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 443.98 Td (\(3\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 440.35 Td (Contractual interest rate is the stated interest rate on the face of the real estate securities. ) Tj ET Q q 0 0 0 rg BT 342.52 440.35 Td (Annualized ef) Tj ET Q q 0 0 0 rg BT 387.46 440.35 Td (fective interest rate is calculated as the actual interest ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 430.75 Td (income recognized in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 120.36 430.75 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 136.36 430.75 Td (, using the interest method, annualized \(if applicable\) and divided by the average amortized cost basis of the investment. ) Tj ET Q q 0 0 0 rg BT 525.20 430.75 Td (The ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 421.15 Td (annualized ef) Tj ET Q q 0 0 0 rg BT 92.22 421.15 Td (fective interest rate and contractual interest rate presented are as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 307.88 421.15 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.55 421.15 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 397.15 Td (The following summarizes the activity related to real estate debt securities for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.99 397.15 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.66 397.15 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.49 397.15 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.32 397.15 Td ( \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.15 Td (thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 368.65 416.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.00 368.65 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 368.65 93.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 342.65 416.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 466.00 342.65 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 342.65 93.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 329.65 m 563 329.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 317.65 m 563 317.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 315.65 m 563 315.65 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 359.90 Td (Real estate debt securities - December 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.50 359.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 359.90 Td (17,751) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 346.90 Td (Deferred interest receivable and interest accretion) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 346.90 Td (104) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 333.90 Td (Accretion of commitment fee, net of closing costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 333.90 Td (24) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 320.90 Td (Real estate debt securities - June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.50 320.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 320.90 Td (17,879) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 293.15 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.61 293.15 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.59 293.15 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.03 293.15 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.70 293.15 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.53 293.15 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.36 293.15 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.80 293.15 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.80 293.15 Td (, interest income from real estate debt securities consisted of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.15 Td (the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 238.65 269.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 238.65 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 238.65 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 238.65 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 238.65 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.00 238.65 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 238.65 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 238.65 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 238.65 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 212.65 269.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 212.65 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 212.65 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 212.65 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 212.65 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.00 212.65 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 212.65 57.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 212.65 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 212.65 57.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 251.64999999999998 m 380 251.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 251.64999999999998 m 384 251.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 251.64999999999998 m 441 251.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 251.64999999999998 m 502 251.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 251.64999999999998 m 506 251.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 251.64999999999998 m 563 251.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 251.64999999999998 m 380 251.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 238.64999999999998 m 380 238.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 251.64999999999998 m 384 251.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 251.64999999999998 m 441 251.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 238.64999999999998 m 441 238.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 251.64999999999998 m 502 251.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 238.64999999999998 m 502 238.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 251.64999999999998 m 506 251.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 251.64999999999998 m 563 251.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 238.64999999999998 m 563 238.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 238.64999999999998 m 380 238.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 238.64999999999998 m 441 238.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 238.64999999999998 m 502 238.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 238.64999999999998 m 563 238.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 199.64999999999998 m 380 199.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 187.64999999999998 m 380 187.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 185.64999999999998 m 380 185.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 199.64999999999998 m 441 199.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 187.64999999999998 m 441 187.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 185.64999999999998 m 441 185.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 199.64999999999998 m 502 199.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 187.64999999999998 m 502 187.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 185.64999999999998 m 502 185.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 199.64999999999998 m 563 199.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 187.64999999999998 m 563 187.64999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 185.64999999999998 m 563 185.64999999999998 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 329.85 255.88 Td (Thr) Tj ET Q q 0 0 0 rg BT 343.04 255.88 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.70 255.88 Td (Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.00 242.88 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.00 242.88 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.00 242.88 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.00 242.88 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 229.90 Td (Contractual interest income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.50 229.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.80 229.90 Td (490) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 386.50 229.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.80 229.90 Td (321) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.50 229.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.80 229.90 Td (884) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 508.50 229.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 229.90 Td (412) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 216.90 Td (Interest accretion) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 372.80 216.90 Td (9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.80 216.90 Td (78) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.80 216.90 Td (104) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 216.90 Td (121) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 203.90 Td (Accretion of commitment fee, net of closing costs and acquisition fee) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 368.80 203.90 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.80 203.90 Td (202) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.80 203.90 Td (24) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 203.90 Td (227) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 190.90 Td (Interest income from real estate debt securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.50 190.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.80 190.90 Td (51) Tj ET Q q 0 0 0 rg BT 372.80 190.90 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 386.50 190.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.80 190.90 Td (601) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 447.50 190.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.80 190.90 Td (1,012) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 508.50 190.90 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 190.90 Td (760) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 43 0 obj <>] /Rotate 0 /Contents 44 0 R>> endobj 44 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 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 /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 627.75 Td (7. ) Tj ET Q q 0 0 0 rg BT 72.00 627.75 Td (REAL) Tj ET Q q 0 0 0 rg BT 99.23 627.75 Td ( EST) Tj ET Q q 0 0 0 rg BT 119.89 627.75 Td (A) Tj ET Q q 0 0 0 rg BT 126.37 627.75 Td (TE SALES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 609.75 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 609.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 609.75 Td (, the Company classified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.64 609.75 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.08 609.75 Td ( of) Tj ET Q q 0 0 0 rg BT 278.73 609.75 Td (fice property as held for sale. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.39 609.75 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.38 609.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.82 609.75 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.49 609.75 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 597.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 597.75 Td (, the Company did not dispose of any real estate properties. During the year ended December 31, 2017, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.75 Td (Company disposed of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.22 585.75 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.22 585.75 Td ( of) Tj ET Q q 0 0 0 rg BT 159.87 585.75 Td (fice properties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 567.75 Td (The following summary presents the major components of assets and liabilities related to real estate held for sale as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 555.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 555.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.77 555.75 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.35 555.75 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 525.25 359.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 525.25 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 525.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 525.25 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 497.25 359.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 497.25 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 497.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 497.25 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 469.25 359.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 469.25 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 469.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 469.25 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 441.25 359.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 441.25 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 441.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 441.25 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 413.25 359.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 413.25 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 413.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 413.25 75.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 525.25 m 484 525.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 525.25 m 563 525.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 483.25 m 484 483.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 483.25 m 563 483.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 455.25 m 484 455.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 455.25 m 563 455.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 442.25 m 484 442.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 440.25 m 484 440.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 442.25 m 563 442.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 440.25 m 563 440.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 413.25 m 484 413.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 400.25 m 484 400.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 398.25 m 484 398.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 413.25 m 563 413.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 400.25 m 563 400.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 398.25 m 563 398.25 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 529.50 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.75 529.48 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.75 529.48 Td (December) Tj ET Q q 0 0 0 rg BT 527.25 529.48 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 515.50 Td (Assets related to real estate held for sale) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 501.50 Td (Real estate, cost) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.50 501.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 501.50 Td (35,739) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.50 501.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 501.50 Td (35,308) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 487.50 Td (Accumulated depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.10 487.50 Td (\(5,055) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.80 487.50 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 487.50 Td (\(4,663) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 487.50 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 473.50 Td (Real estate, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 473.50 Td (30,684) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 473.50 Td (30,645) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 459.50 Td (Other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.80 459.50 Td (1,945) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 459.50 Td (1,965) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 445.50 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 445.50 Td (otal assets related to real estate held for sale) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.50 445.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 445.50 Td (32,629) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.50 445.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 445.50 Td (32,610) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 431.50 Td (Liabilities related to real estate held for sale) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 417.50 Td (Notes payable, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 417.50 Td (27,566) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 417.50 Td (27,515) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 403.50 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 403.50 Td (otal liabilities related to real estate held for sale) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.50 403.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 403.50 Td (27,566) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.50 403.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 403.50 Td (27,515) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 375.75 Td (The operations of properties sold and real estate held for sale and related gain on sales are included in continuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.75 Td (operations on the accompanying statements of operations. ) Tj ET Q q 0 0 0 rg BT 283.70 363.75 Td (The following table summarizes certain revenue and expenses related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 351.75 Td (to these properties for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.19 351.75 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.17 351.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.61 351.75 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.28 351.75 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.11 351.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.94 351.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.38 351.75 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.38 351.75 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 307.25 217.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 307.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 307.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 307.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 307.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 307.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 307.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 307.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 307.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 279.25 217.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 279.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 279.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 279.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 279.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 279.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 279.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 279.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 279.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 251.25 217.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 251.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 251.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 251.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 251.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 251.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 251.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 251.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 251.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 223.25 217.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 223.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 223.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 223.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 223.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 223.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 223.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 223.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 223.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 195.25 217.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 195.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 195.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 195.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 195.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 195.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 195.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 195.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 195.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 167.25 217.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 167.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 167.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 167.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 167.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 167.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 167.25 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 167.25 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 167.25 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 271 321.25 m 341 321.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341 321.25 m 345 321.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 321.25 m 415 321.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 321.25 m 489 321.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 321.25 m 493 321.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 321.25 m 563 321.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 321.25 m 341 321.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 307.25 m 341 307.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341 321.25 m 345 321.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 321.25 m 415 321.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 307.25 m 415 307.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 307.25 m 489 307.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 307.25 m 563 307.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 265.25 m 341 265.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 252.25 m 341 252.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 250.25 m 341 250.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 265.25 m 415 265.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 252.25 m 415 252.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 250.25 m 415 250.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 265.25 m 489 265.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 252.25 m 489 252.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 250.25 m 489 250.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 265.25 m 563 265.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 252.25 m 563 252.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 250.25 m 563 250.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 167.25 m 341 167.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 154.25 m 341 154.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 152.25 m 341 152.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 167.25 m 415 167.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 154.25 m 415 154.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 152.25 m 415 152.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 167.25 m 489 167.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 154.25 m 489 154.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 152.25 m 489 152.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 167.25 m 563 167.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 154.25 m 563 154.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 152.25 m 563 152.25 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 325.50 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.85 325.48 Td (Thr) Tj ET Q q 0 0 0 rg BT 304.04 325.48 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.70 325.48 Td (Six Months Ended June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 311.50 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.50 311.48 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.50 311.48 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.50 311.48 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.50 311.48 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 297.50 Td (Revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 283.50 Td (Rental income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 283.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.80 283.50 Td (1,049) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 283.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 283.50 Td (17,621) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 283.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 283.50 Td (2,070) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 283.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 283.50 Td (36,134) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 269.50 Td (T) Tj ET Q q 0 0 0 rg BT 68.83 269.50 Td (enant reimbursements and other operating income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 269.50 Td (1) Tj ET Q q 0 0 0 rg BT 329.80 269.50 Td (1) Tj ET Q q 0 0 0 rg BT 333.80 269.50 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 269.50 Td (5,477) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.80 269.50 Td (251) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 269.50 Td (10,482) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 255.50 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 255.50 Td (otal revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 255.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.80 255.50 Td (1,160) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 255.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 255.50 Td (23,098) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 255.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 255.50 Td (2,321) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 255.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 255.50 Td (46,616) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 241.50 Td (Expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 227.50 Td (Operating, maintenance, and management) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 227.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 227.50 Td (506) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 227.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 227.50 Td (6,208) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 227.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.80 227.50 Td (433) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 227.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 227.50 Td (12,751) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 213.50 Td (Real estate taxes and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 213.50 Td (154) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 213.50 Td (3,376) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.80 213.50 Td (287) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 213.50 Td (6,479) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 199.50 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 156.32 199.50 Td (filiate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 199.50 Td (137) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 199.50 Td (1,401) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.80 199.50 Td (272) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 199.50 Td (2,826) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 185.50 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 185.50 Td (122) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 185.50 Td (7,825) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.80 185.50 Td (483) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 185.50 Td (16,232) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 171.50 Td (Interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 171.50 Td (282) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 171.50 Td (3,676) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.80 171.50 Td (540) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 171.50 Td (7,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 157.50 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 157.50 Td (otal expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 157.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.80 157.50 Td (1,201) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 157.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 157.50 Td (22,486) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 157.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 157.50 Td (2,015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 157.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 157.50 Td (45,288) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 45 0 obj <>] /Rotate 0 /Contents 46 0 R>> endobj 46 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.25 Td (8. ) Tj ET Q q 0 0 0 rg BT 72.50 627.25 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 108.35 627.25 Td (AND BONDS P) Tj ET Q q 0 0 0 rg BT 174.83 627.25 Td (A) Tj ET Q q 0 0 0 rg BT 181.14 627.25 Td (Y) Tj ET Q q 0 0 0 rg BT 187.44 627.25 Td (ABLE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 609.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.94 609.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.77 609.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.21 609.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.80 609.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 312.18 609.25 Td (s notes and bonds payable, including notes payable related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 597.25 Td (real estate held for sale, consisted of the following \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 551.75 174.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 551.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 551.75 56.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 551.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.50 551.75 63.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.50 551.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 551.75 61.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 551.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 551.75 54.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 551.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 551.75 37.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 551.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.50 551.75 43.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 513.75 174.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 513.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 513.75 56.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 513.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.50 513.75 63.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.50 513.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 513.75 61.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 513.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 513.75 54.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 513.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 513.75 37.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 513.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.50 513.75 43.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 475.75 174.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 475.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 475.75 56.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 475.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.50 475.75 63.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.50 475.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 475.75 61.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 475.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 475.75 54.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 475.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 475.75 37.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 475.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.50 475.75 43.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 437.75 174.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 437.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 437.75 56.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 437.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.50 437.75 63.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.50 437.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 437.75 61.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 437.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 437.75 54.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 437.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 437.75 37.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 437.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.50 437.75 43.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 399.75 174.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 399.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 399.75 56.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 399.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.50 399.75 63.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.50 399.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 399.75 61.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 399.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 399.75 54.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 399.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 399.75 37.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 399.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.50 399.75 43.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 361.75 174.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 361.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 361.75 56.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 361.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.50 361.75 63.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.50 361.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 361.75 61.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 361.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 361.75 54.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 361.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 361.75 37.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 361.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.50 361.75 43.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 323.75 174.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 323.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 323.75 56.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 323.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.50 323.75 63.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.50 323.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 323.75 61.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 323.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 323.75 54.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 323.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 323.75 37.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 323.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.50 323.75 43.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 285.75 174.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 285.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 285.75 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 285.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.50 285.75 63.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.50 285.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 285.75 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 285.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 285.75 54.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 285.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 285.75 37.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 285.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.50 285.75 43.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 261.75 174.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.50 261.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 261.75 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 261.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.50 261.75 63.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.50 261.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.50 261.75 61.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 261.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 261.75 54.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 261.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 261.75 37.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 261.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 519.50 261.75 43.00 -12.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 551.75 m 284.5 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 551.75 m 351.5 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 551.75 m 416.5 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 551.75 m 474.5 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 551.75 m 515.5 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519.5 551.75 m 562.5 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 551.75 m 284.5 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 551.75 m 351.5 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 551.75 m 416.5 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 551.75 m 474.5 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 551.75 m 515.5 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519.5 551.75 m 562.5 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 285.75 m 284.5 285.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 285.75 m 351.5 285.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 249.75 m 284.5 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 238.75 m 284.5 238.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 236.75 m 284.5 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 249.75 m 351.5 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 238.75 m 351.5 238.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288.5 236.75 m 351.5 236.75 l s BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 555.80 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 231.20 562.81 Td (Book ) Tj ET Q q 0 0 0 rg BT 248.39 562.81 Td (V) Tj ET Q q 0 0 0 rg BT 252.80 562.81 Td (alue as of ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 235.65 555.81 Td (June 30, 2018) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 294.70 562.81 Td (Book ) Tj ET Q q 0 0 0 rg BT 311.89 562.81 Td (V) Tj ET Q q 0 0 0 rg BT 316.30 562.81 Td (alue as of ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 291.25 555.81 Td (December) Tj ET Q q 0 0 0 rg BT 321.44 555.81 Td ( 31, 2017) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 367.40 569.81 Td (Contractual ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 358.25 562.81 Td (Inter) Tj ET Q q 0 0 0 rg BT 373.29 562.81 Td (est Rate as of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 412.75 562.81 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 361.65 555.81 Td (June 30, 2018 ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 404.04 558.98 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 433.75 569.81 Td (Effective ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 423.70 562.81 Td (Inter) Tj ET Q q 0 0 0 rg BT 438.74 562.81 Td (est Rate at ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 423.15 555.81 Td (June 30, 2018) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 463.79 555.81 Td ( ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 465.54 558.98 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 483.25 562.81 Td (Payment) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 489.15 555.81 Td (T) Tj ET Q q 0 0 0 rg BT 493.30 555.81 Td (ype) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 526.85 562.81 Td (Maturity ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 529.95 555.81 Td (Date ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 545.69 558.98 Td (\(2\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 536.80 Td (Richardson Portfolio Mortgage Loan ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 231.00 536.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 262.40 536.80 Td (32,586) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 291.00 536.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 329.40 536.80 Td (36,886) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 369.15 543.80 Td (One-Month) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.20 536.80 Td (LIBOR + 2.10%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.95 536.80 Td (4.08%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.85 543.80 Td (Principal) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 482.40 536.80 Td (& Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 524.65 536.80 Td (1) Tj ET Q q 0 0 0 rg BT 528.02 536.80 Td (1/01/2018) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 517.80 Td (Portfolio Mortgage Loan ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 124.74 520.97 Td (\(3\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 265.90 517.80 Td (9,140) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 332.90 517.80 Td (9,877) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 369.15 524.80 Td (One-Month) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.20 517.80 Td (LIBOR + 2.25%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.95 517.80 Td (4.23%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.85 524.80 Td (Principal) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 482.40 517.80 Td (& Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 524.55 517.80 Td (07/01/2019) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 498.80 Td (Burbank Collection Mortgage Loan ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 262.40 498.80 Td (10,837) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 329.40 498.80 Td (10,958) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 369.15 505.80 Td (One-Month) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.20 498.80 Td (LIBOR + 2.35%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.95 498.80 Td (4.41%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.85 505.80 Td (Principal) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 482.40 498.80 Td (& Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 524.55 498.80 Td (09/30/2018) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 479.80 Td (1) Tj ET Q q 0 0 0 rg BT 56.24 479.80 Td (180 Raymond Bond Payable ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 265.90 479.80 Td (6,370) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 332.90 479.80 Td (6,460) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 376.45 479.80 Td (6.50%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.95 479.80 Td (6.50%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.85 486.80 Td (Principal) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 482.40 479.80 Td (& Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 524.55 479.80 Td (09/01/2036) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 460.80 Td (Central Building Mortgage Loan ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 262.40 460.80 Td (27,600) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 329.40 460.80 Td (27,600) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 369.15 467.80 Td (One-Month) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.20 460.80 Td (LIBOR + 1.75%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.95 460.80 Td (3.73%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.00 467.80 Td (Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.50 460.80 Td (Only) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 522.00 460.80 Td (1) Tj ET Q q 0 0 0 rg BT 525.24 460.80 Td (1/13/2018) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 553.63 463.97 Td (\(4\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 441.80 Td (424 Bedford Mortgage Loan ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 262.40 441.80 Td (23,998) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 329.40 441.80 Td (24,282) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 376.45 441.80 Td (3.91%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.95 441.80 Td (3.91%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.85 448.80 Td (Principal) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 482.40 441.80 Td (& Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 524.55 441.80 Td (10/01/2022) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 422.80 Td (1) Tj ET Q q 0 0 0 rg BT 56.24 422.80 Td (180 Raymond Mortgage Loan ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 262.40 422.80 Td (30,821) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 329.40 422.80 Td (31,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 369.15 429.80 Td (One-Month) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.20 422.80 Td (LIBOR + 2.25%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.95 422.80 Td (4.23%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.85 429.80 Td (Principal) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 482.40 422.80 Td (& Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 524.55 422.80 Td (12/01/2018) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 403.80 Td (KBS SOR \(BVI\) Holdings, Ltd. Series ) Tj ET Q q 0 0 0 rg BT 163.06 403.80 Td (A) Tj ET Q q 0 0 0 rg BT 167.73 403.80 Td ( Debentures ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 203.11 406.97 Td (\(5\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 258.90 403.80 Td (265,285) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 325.90 403.80 Td (278,801) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 376.45 403.80 Td (4.25%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.95 403.80 Td (4.25%) Tj ET Q BT /F1 4.55 Tf ET q 0 0 0 rg BT 493.80 407.37 Td (\(5\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 524.55 403.80 Td (03/01/2023) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 384.80 Td (W) Tj ET Q q 0 0 0 rg BT 59.05 384.80 Td (estpark Portfolio Mortgage Loan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 262.40 384.80 Td (85,200) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 329.40 384.80 Td (85,200) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 369.15 391.80 Td (One-Month) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.20 384.80 Td (LIBOR + 2.50%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.95 384.80 Td (4.48%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.00 391.80 Td (Interest ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 485.95 384.80 Td (Only ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 501.70 387.97 Td (\(6\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 524.55 384.80 Td (07/01/2020) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 365.80 Td (Crown Pointe Mortgage Loan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 262.40 365.80 Td (51,171) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 329.40 365.80 Td (50,500) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 369.15 372.80 Td (One-Month) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.20 365.80 Td (LIBOR + 2.60%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.95 365.80 Td (4.58%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.00 372.80 Td (Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.50 365.80 Td (Only) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 524.55 365.80 Td (02/13/2020) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 346.80 Td (125 John Carpenter Mortgage Loan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 262.40 346.80 Td (50,130) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 329.40 346.80 Td (50,130) Tj ET Q BT /F1 4.55 Tf ET q 0 0 0 rg BT 382.80 350.37 Td (\(7\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.95 346.80 Td (3.74%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.00 353.80 Td (Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.50 346.80 Td (Only) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 524.55 346.80 Td (10/01/2022) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 327.80 Td (City ) Tj ET Q q 0 0 0 rg BT 66.68 327.80 Td (T) Tj ET Q q 0 0 0 rg BT 70.47 327.80 Td (ower Mortgage Loan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 262.40 327.80 Td (89,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.65 327.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 369.15 334.80 Td (One-Month) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.20 327.80 Td (LIBOR + 1.55%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.95 327.80 Td (3.53%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.00 334.80 Td (Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.50 327.80 Td (Only) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 524.55 327.80 Td (03/05/2021) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 308.80 Td (Marquette Plaza Mortgage Loan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 262.40 308.80 Td (50,800) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.65 308.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 369.15 315.80 Td (One-Month) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.20 308.80 Td (LIBOR + 1.55%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.95 308.80 Td (3.56%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.00 315.80 Td (Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.50 308.80 Td (Only) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 524.55 308.80 Td (06/06/2021) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 289.80 Td (Eight & Nine Corporate Centre Mortgage Loan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 262.40 289.80 Td (43,880) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.65 289.80 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 369.15 296.80 Td (One-Month) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.20 289.80 Td (LIBOR + 1.60%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.95 289.80 Td (3.58%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.00 296.80 Td (Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.50 289.80 Td (Only) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 524.55 289.80 Td (06/08/2021) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 277.80 Td (T) Tj ET Q q 0 0 0 rg BT 56.79 277.80 Td (otal Notes and Bonds Payable principal outstanding) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 258.90 277.80 Td (776,818) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 325.90 277.80 Td (61) Tj ET Q q 0 0 0 rg BT 332.90 277.80 Td (1,694) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 62.00 265.80 Td (Net Premium/\(Discount\) on Notes and Bonds Payable ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 215.40 268.97 Td (\(8\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 271.15 265.80 Td (167) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 338.15 265.80 Td (137) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 62.00 253.80 Td (Deferred financing costs, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 263.55 253.80 Td (\(9,769) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 281.65 253.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 330.55 253.85 Td (\(8,788) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 348.65 253.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 241.80 Td (T) Tj ET Q q 0 0 0 rg BT 56.79 241.80 Td (otal Notes and Bonds Payable, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 231.00 241.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 258.90 241.80 Td (767,216) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 291.00 241.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 325.90 241.80 Td (603,043) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 50.00 217.27 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.06 213.65 Td ( Contractual interest rate represents the interest rate in ef) Tj ET Q q 0 0 0 rg BT 236.95 213.65 Td (fect under the loan as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 316.03 213.65 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.69 213.65 Td (. Ef) Tj ET Q q 0 0 0 rg BT 372.10 213.65 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 50.00 204.05 Td (in ef) Tj ET Q q 0 0 0 rg BT 64.29 204.05 Td (fect as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 95.61 204.05 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 140.27 204.05 Td ( \(consisting of the contractual interest rate and contractual floor rates\), using interest rate indices at ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.60 204.05 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.26 204.05 Td (, where ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 50.00 194.45 Td (applicable. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 50.00 185.48 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.06 181.85 Td ( Represents the initial maturity date or the maturity date as extended as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.77 181.85 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 338.43 181.85 Td (; subject to certain conditions, the maturity dates of certain loans may ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 50.00 172.25 Td (be extended beyond the date shown.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 50.00 163.27 Td (\(3\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 57.36 159.65 Td (The Portfolio Mortgage Loan is secured by Park Centre. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 50.00 150.67 Td (\(4\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 57.36 147.05 Td (On ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 69.14 147.05 Td (July 17, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 112.48 147.05 Td (, the Central Building Mortgage Loan was repaid. See note ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.09 147.05 Td (15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.09 147.05 Td (, “Subsequent Events – Real Estate Disposition Subsequent to ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.51 147.05 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 556.18 147.05 Td (.” ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 50.00 138.08 Td (\(5\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 57.36 134.45 Td (See “ – Israeli Bond Financing” below) Tj ET Q q 0 0 0 rg BT 180.37 134.45 Td (. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 50.00 125.48 Td (\(6\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 57.36 121.85 Td (Represents the payment type required under the loan as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 245.30 121.85 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.96 121.85 Td (. Certain future monthly payments due under this loan also include amortizing ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 50.00 112.25 Td (principal payments. For more information of the Company’) Tj ET Q q 0 0 0 rg BT 240.18 112.25 Td (s contractual obligations under its notes and bonds payable, see five-year maturity table below) Tj ET Q q 0 0 0 rg BT 541.35 112.25 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 50.00 103.27 Td (\(7\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 57.36 99.65 Td (The 125 John Carpenter Mortgage Loan bears interest at a floating rate of the greater of \(a\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 350.80 99.65 Td (2.0%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.46 99.65 Td ( or \(b\) 175 basis points over one-month LIBOR.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 50.00 90.67 Td (\(8\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 57.36 87.05 Td (Represents the unamortized premium/discount on notes and bonds payable due to the above- and below-market interest rates when the debt was assumed. ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 50.00 77.45 Td (The discount/premium is amortized over the remaining life of the notes and bonds payable.) Tj ET Q endstream endobj 47 0 obj <>] /Rotate 0 /Contents 48 0 R>> endobj 48 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 627.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.05 627.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.03 627.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.47 627.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.14 627.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.97 627.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.80 627.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.71 627.10 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.61 627.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.04 627.10 Td ($14.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.94 627.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 557.60 627.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 615.10 Td (of interest expense. Included in interest expense for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.25 615.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.24 615.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.68 615.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.35 615.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.17 615.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.00 615.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.55 615.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.44 615.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.88 615.10 Td ($1.7 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 603.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 603.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 131.55 603.10 Td (, of amortization of deferred financing costs. ) Tj ET Q q 0 0 0 rg BT 311.77 603.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 361.67 603.10 Td (, during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 603.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.98 603.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.42 603.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.09 603.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.91 603.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 591.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 591.10 Td (, the Company capitalized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.91 591.10 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.80 591.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.24 591.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.13 591.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 346.79 591.10 Td (, of interest related to its investments in undeveloped ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 579.10 Td (land. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.76 579.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.75 579.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.19 579.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.86 579.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.68 579.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.51 579.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.43 579.10 Td ($10.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.32 579.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.76 579.10 Td ($19.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.65 579.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 567.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 567.10 Td (, of interest expense. Included in interest expense for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.91 567.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.90 567.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.34 567.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.01 567.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.83 567.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.66 567.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.21 567.10 Td ($1.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 555.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 555.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.33 555.10 Td ($2.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.22 555.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 199.88 555.10 Td (, of amortization of deferred financing costs. ) Tj ET Q q 0 0 0 rg BT 380.10 555.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 430.00 555.10 Td (, during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.33 555.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.31 555.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.75 555.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.42 555.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 543.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.38 543.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.21 543.10 Td (, the Company capitalized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.12 543.10 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.01 543.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.45 543.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.34 543.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 409.00 543.10 Td (, of interest related to its investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 531.10 Td (in undeveloped land. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 513.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.94 513.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.77 513.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.21 513.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.80 513.10 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 312.18 513.10 Td (s interest payable was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 513.10 Td ($5.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.04 513.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.48 513.10 Td ($5.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.37 513.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 501.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 501.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 483.10 Td (The following is a schedule of maturities, including principal amortization payments, for all notes and bonds payable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 471.10 Td (outstanding as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.83 471.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.66 471.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 454.60 408.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 454.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 454.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 428.60 408.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 428.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 428.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 402.60 408.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 402.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 402.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 376.60 408.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 376.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 376.60 100.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 376.6 m 562.5 376.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 364.6 m 562.5 364.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 362.6 m 562.5 362.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 445.85 Td (July ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 68.34 445.85 Td (1, 2018 through December 31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.00 445.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 445.85 Td (103,416) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 432.85 Td (2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 432.85 Td (63,350) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 419.85 Td (2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 419.85 Td (188,742) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 406.85 Td (2021) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 406.85 Td (237,616) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 393.85 Td (2022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 393.85 Td (125,227) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 380.85 Td (Thereafter) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.30 380.85 Td (58,467) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.00 367.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.30 367.85 Td (776,818) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 340.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 132.21 340.10 Td (s notes payable contain financial debt covenants. ) Tj ET Q q 0 0 0 rg BT 329.37 340.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.81 340.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.64 340.10 Td (, the Company was in compliance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 328.10 Td (with all of these debt covenants.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (Israeli Bond Financing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 295.10 Td (On March 2, 2016, KBS Strategic Opportunity BVI, a wholly owned subsidiary of the Company) Tj ET Q q 0 0 0 rg BT 457.69 295.10 Td (, filed a final prospectus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 283.10 Td (with the Israel Securities ) Tj ET Q q 0 0 0 rg BT 151.08 283.10 Td (Authority for a proposed of) Tj ET Q q 0 0 0 rg BT 260.88 283.10 Td (fering of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.86 283.10 Td (1,000,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.36 283.10 Td ( Israeli new Shekels of Series ) Tj ET Q q 0 0 0 rg BT 498.33 283.10 Td (A) Tj ET Q q 0 0 0 rg BT 505.00 283.10 Td ( debentures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 271.10 Td (\(the “Debentures”\) at an annual interest rate not to exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.33 271.10 Td (4.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.16 271.10 Td (. On March 1, 2016, KBS Strategic Opportunity BVI ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 259.10 Td (commenced the institutional tender of the Debentures and accepted application for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.37 259.10 Td (842.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.26 259.10 Td ( Israeli new Shekels. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 247.10 Td (March 7, 2016, KBS Strategic Opportunity BVI commenced the public tender of the Debentures and accepted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.20 247.10 Td (127.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.09 247.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 235.10 Td (Israeli new Shekels. In the aggregate, KBS Strategic Opportunity BVI accepted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.24 235.10 Td (970.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.13 235.10 Td ( Israeli new Shekels ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 223.10 Td (\(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.59 223.10 Td ($249.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.48 223.10 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.64 223.10 Td (March 8, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.24 223.10 Td (\) in both the institutional and public tenders at an annual interest rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 211.10 Td (4.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.83 211.10 Td (. KBS Strategic Opportunity BVI issued the Debentures on March 8, 2016. ) Tj ET Q q 0 0 0 rg BT 380.61 211.10 Td (The terms of the Debentures require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 199.10 Td (principal installment payments equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.24 199.10 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.57 199.10 Td ( of the face value of the Debentures on March 1st of each year from 2019 to 2023. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 187.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.44 187.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.27 187.10 Td (, the Company has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.21 187.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.65 187.10 Td ( foreign currency option for an aggregate notional amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.11 187.10 Td ($285.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.01 187.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 175.10 Td (hedge its exposure to foreign currency exchange rate movements. See note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.55 175.10 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.55 175.10 Td (, “Derivative Instruments” for a further discussion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 163.10 Td (on the Company’) Tj ET Q q 0 0 0 rg BT 118.88 163.10 Td (s foreign currency option.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 145.10 Td (The deed of trust that governs the terms of the Debentures contains various financial covenants. ) Tj ET Q q 0 0 0 rg BT 456.88 145.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.33 145.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.16 145.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 133.10 Td (Company was in compliance with all of these financial debt covenants.) Tj ET Q endstream endobj 49 0 obj <>] /Rotate 0 /Contents 50 0 R>> endobj 50 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (23) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 627.75 Td (9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.50 627.75 Td (. ) Tj ET Q q 0 0 0 rg BT 72.00 627.75 Td (DERIV) Tj ET Q q 0 0 0 rg BT 102.94 627.75 Td (A) Tj ET Q q 0 0 0 rg BT 109.42 627.75 Td (TIVE INSTRUMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 609.75 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 49.50 597.75 Td (variability caused by changing interest rates and foreign currency exchange rate movements. ) Tj ET Q q 0 0 0 rg BT 422.22 597.75 Td (The primary goal of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.75 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 585.75 Td (s risk management practices related to interest rate risk is to prevent changes in interest rates from adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 573.75 Td (impacting the Company’) Tj ET Q q 0 0 0 rg BT 148.37 573.75 Td (s ability to achieve its investment return objectives. ) Tj ET Q q 0 0 0 rg BT 356.19 573.75 Td (The Company does not enter into derivatives for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 561.75 Td (speculative purposes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 543.75 Td (The Company enters into foreign currency options and foreign currency collars to mitigate its exposure to foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 531.75 Td (currency exchange rate movements on its bonds payable outstanding denominated in Israeli new Shekels. ) Tj ET Q q 0 0 0 rg BT 473.55 531.75 Td (A) Tj ET Q q 0 0 0 rg BT 480.22 531.75 Td ( foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 519.75 Td (collar consists of a purchased call option to buy and a sold put option to sell Israeli new Shekels. ) Tj ET Q q 0 0 0 rg BT 437.76 519.75 Td (A) Tj ET Q q 0 0 0 rg BT 444.43 519.75 Td ( foreign currency collar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.75 Td (guarantees that the exchange rate of the currency will not fluctuate beyond the range of the options’) Tj ET Q q 0 0 0 rg BT 447.49 507.75 Td ( strike prices. ) Tj ET Q q 0 0 0 rg BT 503.03 507.75 Td (A) Tj ET Q q 0 0 0 rg BT 509.70 507.75 Td ( foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.75 Td (currency option consists of a call option to buy Israeli new Shekels.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 477.75 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 477.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 477.75 Td (, the Company had entered into a foreign currency option, a USD put/ILS call option, to hedge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 465.75 Td (against a change in the exchange rate of the Israeli new Shekel versus the U.S. Dollar as it has the right, but not the obligation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 453.75 Td (to purchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.59 453.75 Td (970.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.49 453.75 Td ( Israeli Shekels at the rate of ILS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.33 453.75 Td (3.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.83 453.75 Td ( per USD. ) Tj ET Q q 0 0 0 rg BT 363.42 453.75 Td (The cost of the foreign currency option was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.58 453.75 Td ($3.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 441.75 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 441.75 Td (. ) Tj ET Q q 0 0 0 rg BT 83.21 441.75 Td (The following table summarizes the notional amount and other information related to the Company’) Tj ET Q q 0 0 0 rg BT 483.39 441.75 Td (s foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 429.75 Td (option as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.22 429.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.05 429.75 Td (. ) Tj ET Q q 0 0 0 rg BT 159.87 429.75 Td (The notional amount is an indication of the extent of the Company’) Tj ET Q q 0 0 0 rg BT 428.97 429.75 Td (s involvement in each instrument ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 417.75 Td (at that time, but does not represent exposure to credit, interest rate or market risks \(currency in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 388.25 281.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 388.25 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 388.25 78.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 388.25 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 388.25 71.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 388.25 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 388.25 71.00 -11.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 388.25 m 252 388.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 388.25 m 331 388.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 388.25 m 413 388.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 388.25 m 488 388.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 388.25 m 563 388.25 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 392.48 Td (Derivative Instrument) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 263.55 392.48 Td (Notional ) Tj ET Q q 0 0 0 rg BT 294.67 392.48 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.15 392.48 Td (Strike Price) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.85 392.48 Td (T) Tj ET Q q 0 0 0 rg BT 437.89 392.48 Td (rade Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.45 392.48 Td (Maturity Date) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 380.33 Td (Derivative instrument not designated as hedging instrument) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 368.50 Td (Foreign currency option) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 258.50 368.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.80 368.50 Td (285,361) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 350.15 368.50 Td (3.40 ILS-USD) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.75 368.50 Td (08/03/2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 508.75 368.50 Td (08/03/2018) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 340.75 Td (The Company enters into interest rate caps to mitigate its exposure to rising interest rates on its variable rate notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.75 Td (payable. ) Tj ET Q q 0 0 0 rg BT 85.41 328.75 Td (The values of interest rate caps are primarily impacted by interest rates, market expectations about interest rates, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 316.75 Td (the remaining life of the instrument. In general, increases in interest rates, or anticipated increases in interest rates, will increase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.75 Td (the value of interest rate caps. ) Tj ET Q q 0 0 0 rg BT 170.84 304.75 Td (As the remaining life of an interest rate cap decreases, the value of the instrument will generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.75 Td (decrease towards zero.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 274.75 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 274.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 274.75 Td (, the Company had entered into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.80 274.75 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.80 274.75 Td ( interest rate caps, which were not designated as a hedging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.75 Td (instruments. ) Tj ET Q q 0 0 0 rg BT 100.98 262.75 Td (The following table summarizes the notional amounts and other information related to the Company’) Tj ET Q q 0 0 0 rg BT 505.05 262.75 Td (s derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.75 Td (instruments as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.33 250.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.16 250.75 Td (. ) Tj ET Q q 0 0 0 rg BT 180.97 250.75 Td (The notional amount is an indication of the extent of the Company’) Tj ET Q q 0 0 0 rg BT 450.08 250.75 Td (s involvement in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.75 Td (instrument at that time, but does not represent exposure to credit, interest rate or market risks \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 209.25 173.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 209.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 209.25 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.00 209.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.00 209.25 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 209.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 209.25 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 209.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 209.25 117.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 209.25 m 223 209.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 209.25 m 296 209.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300 209.25 m 369 209.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 209.25 m 442 209.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 209.25 m 563 209.25 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 213.48 Td (Derivative Instrument) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 236.90 213.48 Td (Effective Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 309.45 213.48 Td (Maturity Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 381.75 213.48 Td (Notional ) Tj ET Q q 0 0 0 rg BT 413.01 213.48 Td (V) Tj ET Q q 0 0 0 rg BT 418.35 213.48 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.95 213.48 Td (Refer) Tj ET Q q 0 0 0 rg BT 496.90 213.48 Td (ence Rate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 200.50 Td (Interest rate cap) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 242.75 200.50 Td (02/21/2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 315.75 200.50 Td (02/13/2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.50 200.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.80 200.50 Td (46,875) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.55 200.50 Td (One-month LIBOR at 3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 187.50 Td (Interest rate cap) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 242.75 187.50 Td (04/02/2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 315.75 187.50 Td (03/05/2021) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.50 187.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.80 187.50 Td (77,513) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.55 187.50 Td (One-month LIBOR at 3.50%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 159.75 Td (The following table sets forth the fair value of the Company’) Tj ET Q q 0 0 0 rg BT 316.77 159.75 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 49.50 147.75 Td (consolidated balance sheets as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.17 147.75 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.00 147.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.44 147.75 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.03 147.75 Td ( \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 99.25 273.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 99.25 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 99.25 56.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 99.25 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 99.25 56.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 99.25 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 99.25 56.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 99.25 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 99.25 56.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 75.25 134.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 75.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 75.25 135.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 75.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 75.25 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 75.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 75.25 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 75.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 75.25 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.00 75.25 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 75.25 56.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 120.25 m 383 120.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383 120.25 m 387 120.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387 120.25 m 443 120.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 120.25 m 503 120.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 120.25 m 507 120.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 120.25 m 563 120.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 99.25 m 184 99.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 99.25 m 323 99.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 99.25 m 383 99.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387 99.25 m 443 99.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 99.25 m 503 99.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 99.25 m 563 99.25 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.25 123.33 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.25 123.33 Td (December) Tj ET Q q 0 0 0 rg BT 506.82 123.33 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 103.48 Td (Derivative Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 190.50 103.48 Td (Balance Sheet Location) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.00 111.48 Td (Number) Tj ET Q q 0 0 0 rg BT 364.37 111.48 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.60 103.48 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.65 103.48 Td (Fair) Tj ET Q q 0 0 0 rg BT 411.24 103.48 Td ( ) Tj ET Q q 0 0 0 rg BT 413.09 103.48 Td (V) Tj ET Q q 0 0 0 rg BT 418.43 103.48 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.00 111.48 Td (Number) Tj ET Q q 0 0 0 rg BT 484.37 111.48 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.60 103.48 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.65 103.48 Td (Fair) Tj ET Q q 0 0 0 rg BT 531.17 103.48 Td ( ) Tj ET Q q 0 0 0 rg BT 533.02 103.48 Td (V) Tj ET Q q 0 0 0 rg BT 538.06 103.48 Td (alue) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 91.33 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 79.50 Td (Interest rate caps) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 190.50 79.50 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.50 79.50 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.50 79.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 79.50 Td (146) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.50 79.50 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 509.50 79.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 79.50 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 66.50 Td (Foreign currency option) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 190.50 66.50 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.50 66.50 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.50 66.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.80 66.50 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.50 66.50 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 509.50 66.50 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 66.50 Td (4,243) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 51 0 obj <>] /Rotate 0 /Contents 52 0 R>> endobj 52 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 627.60 Td (The change in fair value of foreign currency options and collars that are not designated as cash flow hedges are recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 615.60 Td (as foreign currency transaction gains or losses in the accompanying consolidated statements of operations. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.98 615.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.96 615.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 603.60 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 603.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 603.60 Td (, the Company recognized a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.06 603.60 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.95 603.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.45 603.60 Td (loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.01 603.60 Td ( related to the foreign currency option, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.60 Td (shown net against ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.66 591.60 Td ($12.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.55 591.60 Td ( of foreign currency transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.10 591.60 Td (gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.32 591.60 Td ( in the accompanying consolidated statements of operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 579.60 Td (as foreign currency transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.55 579.60 Td (gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.77 579.60 Td (, net. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.54 579.60 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.21 579.60 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.03 579.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.86 579.60 Td (, the Company recognized a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.26 579.60 Td ($4.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.16 579.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 567.60 Td (loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.06 567.60 Td ( related to the foreign currency option, which is shown net against ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.93 567.60 Td ($13.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.82 567.60 Td ( of foreign currency transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.38 567.60 Td (gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.59 567.60 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 555.60 Td (accompanying consolidated statements of operations as foreign currency transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.10 555.60 Td (gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.32 555.60 Td (, net. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.08 555.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.07 555.60 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 543.60 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 543.60 Td (, the Company recognized a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.73 543.60 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.63 543.60 Td ( gain related to the foreign currency collars, which is shown net against ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 531.60 Td ($10.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 531.60 Td ( of foreign currency transaction loss in the accompanying consolidated statements of operations as foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 519.60 Td (currency transaction loss, net, respectively) Tj ET Q q 0 0 0 rg BT 218.79 519.60 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.33 519.60 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.00 519.60 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.83 519.60 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.66 519.60 Td (, the Company recognized a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.06 519.60 Td ($19.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.60 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 507.60 Td ( gain related to the foreign currency collars, which is shown net against ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.08 507.60 Td ($26.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.97 507.60 Td ( of foreign currency transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.60 Td (loss in the accompanying consolidated statements of operations as foreign currency transaction loss, net. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.49 495.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.47 495.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.60 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.17 483.60 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 483.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.83 483.60 Td (, the Company recorded unrealized losses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.77 483.60 Td ($62,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.27 483.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.71 483.60 Td ($31,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.21 483.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 494.87 483.60 Td (, on interest rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.60 Td (caps, which were included in interest expense on the accompanying consolidated statements of operations. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.80 471.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.79 471.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.60 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.17 459.60 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 459.60 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.83 459.60 Td (, the Company recorded unrealized losses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.77 459.60 Td ($31,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.27 459.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.71 459.60 Td ($88,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.21 459.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 494.87 459.60 Td (, on interest rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.60 Td (caps, which were included in interest expense on the accompanying consolidated statements of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 423.60 Td (10. ) Tj ET Q q 0 0 0 rg BT 72.50 423.60 Td (F) Tj ET Q q 0 0 0 rg BT 77.87 423.60 Td (AIR ) Tj ET Q q 0 0 0 rg BT 98.52 423.60 Td (V) Tj ET Q q 0 0 0 rg BT 104.45 423.60 Td (ALUE DISCLOSURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 405.60 Td (Under GAAP) Tj ET Q q 0 0 0 rg BT 126.11 405.60 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 50.00 393.60 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 50.00 381.60 Td (\(e.g., carrying value of impaired real estate loans receivable and long-lived assets\). Fair value is defined as the price that would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 369.60 Td (be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 357.60 Td (measurement date. ) Tj ET Q q 0 0 0 rg BT 127.29 357.60 Td (The GAAP) Tj ET Q q 0 0 0 rg BT 172.19 357.60 Td ( fair value framework uses a three-tiered approach. Fair value measurements are classified and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 345.60 Td (disclosed in one of the following three categories: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 327.60 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 327.60 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 90.50 315.60 Td (liabilities; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 300.60 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 300.60 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 90.50 288.60 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 90.50 276.60 Td (observable in active markets; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 261.60 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 261.60 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 90.50 249.60 Td (significant to the fair value measurement and unobservable. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 228.60 Td (The fair value for certain financial instruments is derived using valuation techniques that involve significant management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 216.60 Td (judgment. ) Tj ET Q q 0 0 0 rg BT 92.59 216.60 Td (The price transparency of financial instruments is a key determinant of the degree of judgment involved in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 204.60 Td (determining the fair value of the Company’) Tj ET Q q 0 0 0 rg BT 223.28 204.60 Td (s financial instruments. Financial instruments for which actively quoted prices or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 192.60 Td (pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 180.60 Td (transparency than financial instruments for which markets are inactive or consist of non-orderly trades. ) Tj ET Q q 0 0 0 rg BT 464.40 180.60 Td (The Company evaluates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 168.60 Td (several factors when determining if a market is inactive or when market transactions are not orderly) Tj ET Q q 0 0 0 rg BT 448.36 168.60 Td (. ) Tj ET Q q 0 0 0 rg BT 453.18 168.60 Td (The following is a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 156.60 Td (summary of the methods and assumptions used by management in estimating the fair value of each class of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 144.60 Td (instruments 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 72.50 126.60 Td (Cash and cash equivalents, r) Tj ET Q q 0 0 0 rg BT 187.95 126.60 Td (estricted cash, r) Tj ET Q q 0 0 0 rg BT 251.74 126.60 Td (ent and other r) Tj ET Q q 0 0 0 rg BT 311.08 126.60 Td (eceivables and accounts payable and accrued liabilities: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.60 Td (These balances approximate their fair values due to the short maturities of these items.) Tj ET Q endstream endobj 53 0 obj <>] /Rotate 0 /Contents 54 0 R>> endobj 54 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (25) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.50 627.10 Td (Real estate equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.41 627.10 Td (: ) Tj ET Q q 0 0 0 rg BT 189.51 627.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 249.22 627.10 Td (s ) Tj ET Q q 0 0 0 rg BT 255.43 627.10 Td (Whitestone REIT) Tj ET Q q 0 0 0 rg BT 325.51 627.10 Td ( and Franklin Street Properties Corp. real estate equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 615.10 Td (securities are presented at fair value on the accompanying consolidated balance sheet. ) Tj ET Q q 0 0 0 rg BT 395.50 615.10 Td (The fair values of ) Tj ET Q q 0 0 0 rg BT 468.62 615.10 Td (Whitestone REIT) Tj ET Q q 0 0 0 rg BT 538.70 615.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 603.10 Td (Franklin Street Properties Corp. real estate equity securities were based on quoted prices in an active market on a major stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 591.10 Td (exchange. ) Tj ET Q q 0 0 0 rg BT 92.57 591.10 Td (The Company classifies these inputs as Level 1 inputs. ) Tj ET Q q 0 0 0 rg BT 313.65 591.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.09 591.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.92 591.10 Td (, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.18 591.10 Td (43,999,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.18 591.10 Td ( shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 579.10 Td (of common units of Keppel-KBS US REIT) Tj ET Q q 0 0 0 rg BT 222.02 579.10 Td (. ) Tj ET Q q 0 0 0 rg BT 226.84 579.10 Td (The fair value measurement on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.73 579.10 Td (21,999,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.73 579.10 Td ( shares are based on a quoted price in an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 567.10 Td (active market on a major stock exchange. ) Tj ET Q q 0 0 0 rg BT 218.08 567.10 Td (The Company classifies these inputs as Level 1 inputs. ) Tj ET Q q 0 0 0 rg BT 439.53 567.10 Td (The fair value measurement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 555.10 Td (on the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.26 555.10 Td (21,999,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.26 555.10 Td ( shares are based on a quoted price in an active market on a major stock exchange, adjusted for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 543.10 Td (lack of marketability during the remaining Unit Lockout Period. ) Tj ET Q q 0 0 0 rg BT 309.20 543.10 Td (The Company utilized inputs, all of which were deemed to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 531.10 Td (significant, including the quoted stock price, risk-free rate and expected volatility) Tj ET Q q 0 0 0 rg BT 374.79 531.10 Td (, in determining the value of the shares and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 519.10 Td (Company notes that the most significant input in its valuation model is the quoted price in an active market. However) Tj ET Q q 0 0 0 rg BT 520.05 519.10 Td (, as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 507.10 Td (valuation of the stock is adjusted for the lack of marketability using market-corroborated inputs, the Company categorizes the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 495.10 Td (measurement of such securities as Level 2 inputs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 74.00 477.10 Td (Real estate debt securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.69 477.10 Td (: ) Tj ET Q q 0 0 0 rg BT 183.79 477.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 243.50 477.10 Td (s real estate debt securities are presented in the accompanying consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 465.10 Td (balance sheets at their amortized cost net of recorded loss reserves \(if any\) and not at fair value. ) Tj ET Q q 0 0 0 rg BT 437.44 465.10 Td (The fair value of real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 453.10 Td (debt securities was estimated using an internal valuation model that considers the expected cash flows for the loans, underlying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 441.10 Td (collateral values \(for collateral dependent loans\) and estimated yield requirements of institutional investors for real estate debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 429.10 Td (securities with similar characteristics, including remaining loan term, loan-to-value, type of collateral and other credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 417.10 Td (enhancements. ) Tj ET Q q 0 0 0 rg BT 113.96 417.10 Td (The Company classifies these inputs as Level 3 inputs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 74.00 399.10 Td (Notes and bonds payable:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.16 399.10 Td ( ) Tj ET Q q 0 0 0 rg BT 180.47 399.10 Td (The fair values of the Company’) Tj ET Q q 0 0 0 rg BT 310.16 399.10 Td (s notes and bonds payable are estimated using a discounted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 387.10 Td (cash flow analysis based on management’) Tj ET Q q 0 0 0 rg BT 217.45 387.10 Td (s estimates of current market interest rates for instruments with similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 375.10 Td (characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 363.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.90 363.10 Td (, when determining the fair value of liabilities in circumstances in which a quoted price in an active market for an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 351.10 Td (identical liability is not available, the Company measures fair value using \(i\) a valuation technique that uses the quoted price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 339.10 Td (the identical liability when traded as an asset or quoted prices for similar liabilities or similar liabilities when traded as assets or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 327.10 Td (\(ii\) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 315.10 Td (the market approach. ) Tj ET Q q 0 0 0 rg BT 136.45 315.10 Td (The Company classifies these inputs as Level 3 inputs. ) Tj ET Q q 0 0 0 rg BT 357.89 315.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 417.60 315.10 Td (s bonds issued in Israel are publicly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 303.10 Td (traded on the ) Tj ET Q q 0 0 0 rg BT 104.52 303.10 Td (T) Tj ET Q q 0 0 0 rg BT 109.93 303.10 Td (el-A) Tj ET Q q 0 0 0 rg BT 126.96 303.10 Td (viv Stock Exchange. ) Tj ET Q q 0 0 0 rg BT 211.76 303.10 Td (The Company used the quoted price as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.60 303.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.43 303.10 Td ( for the fair value of its bonds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 291.10 Td (issued in Israel. ) Tj ET Q q 0 0 0 rg BT 114.80 291.10 Td (The Company classifies this input as a Level 1 input.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 74.00 273.10 Td (Derivative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.20 273.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 118.70 273.10 Td (instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.37 273.10 Td (: ) Tj ET Q q 0 0 0 rg BT 170.47 273.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 230.18 273.10 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 50.00 261.10 Td (consolidated balance sheets. ) Tj ET Q q 0 0 0 rg BT 167.83 261.10 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 50.00 249.10 Td (observable inputs. ) Tj ET Q q 0 0 0 rg BT 127.21 249.10 Td (As such, the Company classifies these inputs as Level 2 inputs. ) Tj ET Q q 0 0 0 rg BT 382.27 249.10 Td (The fair value of interest rate caps \(floors\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 237.10 Td (are determined using the market standard methodology of discounting the future expected cash payments \(receipts\) which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 225.10 Td (would occur if variable interest rates rise above \(below\) the strike rate of the caps \(floors\). ) Tj ET Q q 0 0 0 rg BT 413.29 225.10 Td (The variable interest rates used in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 213.10 Td (the calculation of projected payments \(receipts\) on the cap \(floor\) are based on an expectation of future interest rates derived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 201.10 Td (from observed market interest rate curves and volatilities. ) Tj ET Q q 0 0 0 rg BT 282.79 201.10 Td (The fair value of foreign currency option is based on a Black-Scholes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 189.10 Td (model tailored for currency derivatives.) Tj ET Q endstream endobj 55 0 obj <>] /Rotate 0 /Contents 56 0 R>> endobj 56 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 627.10 Td (The following were the face values, carrying amounts and fair values of the Company’) Tj ET Q q 0 0 0 rg BT 419.05 627.10 Td (s financial instruments as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 615.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.83 615.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.27 615.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.85 615.10 Td (, which carrying amounts do not approximate the fair values \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 564.60 200.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 564.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 564.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.50 564.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 564.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 564.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 564.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 564.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.50 564.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 564.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 564.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 564.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 564.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 536.60 200.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 536.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 536.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.50 536.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 536.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 536.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 536.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 536.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.50 536.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 536.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 536.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 536.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 536.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 508.60 200.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 508.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 508.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.50 508.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 508.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 508.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 508.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 508.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.50 508.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 508.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 508.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 508.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 508.60 48.00 -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 254.5 584.6 m 302.5 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 584.6 m 306.5 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 584.6 m 354.5 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 584.6 m 358.5 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 584.6 m 406.5 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410.5 584.6 m 458.5 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 584.6 m 462.5 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 584.6 m 510.5 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 584.6 m 514.5 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 584.6 m 562.5 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 564.6 m 302.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 564.6 m 354.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 564.6 m 406.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410.5 564.6 m 458.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 564.6 m 510.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 564.6 m 562.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 564.6 m 302.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 564.6 m 354.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 564.6 m 406.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410.5 564.6 m 458.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 564.6 m 510.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 564.6 m 562.5 564.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 306.75 588.83 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.75 588.83 Td (December) Tj ET Q q 0 0 0 rg BT 488.32 588.83 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 259.40 568.83 Td (Face ) Tj ET Q q 0 0 0 rg BT 277.32 568.83 Td (V) Tj ET Q q 0 0 0 rg BT 282.65 568.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 314.20 576.68 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 315.95 568.68 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 364.15 568.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 378.74 568.83 Td ( ) Tj ET Q q 0 0 0 rg BT 380.59 568.83 Td (V) Tj ET Q q 0 0 0 rg BT 385.93 568.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.40 568.83 Td (Face ) Tj ET Q q 0 0 0 rg BT 433.32 568.83 Td (V) Tj ET Q q 0 0 0 rg BT 438.65 568.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 470.20 576.68 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.95 568.68 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.15 568.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 534.67 568.83 Td ( ) Tj ET Q q 0 0 0 rg BT 536.52 568.83 Td (V) Tj ET Q q 0 0 0 rg BT 541.56 568.83 Td (alue) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 554.85 Td (Financial asset:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 540.85 Td (Real estate debt securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.00 540.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 277.25 540.85 Td (17,500) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.00 540.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.25 540.85 Td (17,879) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.00 540.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.25 540.85 Td (17,461) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.00 540.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.25 540.85 Td (17,500) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.00 540.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.25 540.85 Td (17,751) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 517.00 540.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.25 540.85 Td (17,386) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 526.85 Td (Financial liabilities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 512.85 Td (Notes and bond payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.00 512.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.25 512.85 Td (51) Tj ET Q q 0 0 0 rg BT 281.25 512.85 Td (1,533) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.00 512.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.25 512.85 Td (507,452) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.00 512.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.25 512.85 Td (516,473) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.00 512.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.25 512.85 Td (332,893) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.00 512.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.25 512.85 Td (330,727) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 517.00 512.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.25 512.85 Td (335,212) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 498.85 Td (KBS SOR \(BVI\) Holdings, Ltd. Series ) Tj ET Q q 0 0 0 rg BT 196.79 498.85 Td (A) Tj ET Q q 0 0 0 rg BT 202.12 498.85 Td ( Debentures) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.00 498.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.25 498.85 Td (265,285) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.00 498.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.25 498.85 Td (259,764) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.00 498.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.25 498.85 Td (274,093) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.00 498.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.25 498.85 Td (278,801) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.00 498.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.25 498.85 Td (272,316) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 517.00 498.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.25 498.85 Td (296,069) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 471.10 Td (Disclosure of the fair value 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 50.00 459.10 Td (period end and requires a significant amount of judgment. ) Tj ET Q q 0 0 0 rg BT 284.20 459.10 Td (This has made the estimation of fair values dif) Tj ET Q q 0 0 0 rg BT 469.52 459.10 Td (ficult and, therefore, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 447.10 Td (both the actual results and the Company’) Tj ET Q q 0 0 0 rg BT 213.30 447.10 Td (s estimate of value at a future date could be materially dif) Tj ET Q q 0 0 0 rg BT 443.30 447.10 Td (ferent.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 429.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.44 429.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.27 429.10 Td (, the Company measured the following assets at fair value \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 361.60 200.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 361.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 361.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.50 361.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.50 361.60 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 361.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 361.60 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 361.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.50 361.60 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 333.60 200.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 333.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 333.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.50 333.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.50 333.60 78.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 333.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 333.60 74.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 333.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.50 333.60 78.00 -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 324.5 398.6 m 402.5 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 398.6 m 406.5 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 398.6 m 480.5 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 398.6 m 484.5 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 398.6 m 562.5 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 361.6 m 320.5 361.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 361.6 m 402.5 361.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 361.6 m 480.5 361.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 361.6 m 562.5 361.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 402.85 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.00 402.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.35 402.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 402.94 402.83 Td ( ) Tj ET Q q 0 0 0 rg BT 404.79 402.83 Td (V) Tj ET Q q 0 0 0 rg BT 410.13 402.83 Td (alue Measur) Tj ET Q q 0 0 0 rg BT 452.13 402.83 Td (ements Using) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 365.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.25 365.83 Td (T) Tj ET Q q 0 0 0 rg BT 282.85 365.83 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 334.55 389.83 Td (Quoted Prices in ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.60 381.83 Td (Active Markets for) Tj ET Q q 0 0 0 rg BT 395.31 381.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.40 373.83 Td (Identical ) Tj ET Q q 0 0 0 rg BT 368.18 373.83 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.00 365.83 Td (\(Level 1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 413.40 381.83 Td (Significant Other) Tj ET Q q 0 0 0 rg BT 472.59 381.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 411.30 373.83 Td (Observable Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.00 365.83 Td (\(Level 2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.55 381.83 Td (Significant ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.30 373.83 Td (Unobservable Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.00 365.83 Td (\(Level 3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 351.85 Td (Recurring Basis:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 337.85 Td (Real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.00 337.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 295.30 337.85 Td (98,627) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 327.00 337.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.30 337.85 Td (79,885) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.00 337.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.30 337.85 Td (18,742) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.00 337.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 337.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 323.85 Td (Asset derivative - interest rate caps) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.00 323.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 305.30 323.85 Td (146) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 327.00 323.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.30 323.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.00 323.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.30 323.85 Td (146) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.00 323.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 323.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.00 309.85 Td (Asset derivative - foreign currency option) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.00 309.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.30 309.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 327.00 309.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.30 309.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.00 309.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.30 309.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.00 309.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.30 309.85 Td (—) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (1) Tj ET Q q 0 0 0 rg BT 53.95 282.10 Td (1. ) Tj ET Q q 0 0 0 rg BT 72.00 282.10 Td (RELA) Tj ET Q q 0 0 0 rg BT 99.04 282.10 Td (TED P) Tj ET Q q 0 0 0 rg BT 127.47 282.10 Td (AR) Tj ET Q q 0 0 0 rg BT 141.56 282.10 Td (TY) Tj ET Q q 0 0 0 rg BT 155.08 282.10 Td ( ) Tj ET Q q 0 0 0 rg BT 157.40 282.10 Td (TRANSACTIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 264.10 Td (The ) Tj ET Q q 0 0 0 rg BT 89.50 264.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 128.67 264.10 Td (Agreement entitles the ) Tj ET Q q 0 0 0 rg BT 221.14 264.10 Td (Advisor to specified fees upon the provision of certain services with regard to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 252.10 Td (investment of funds in real estate and real estate-related investments and the disposition of real estate and real estate-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 240.10 Td (investments \(including the discounted payof) Tj ET Q q 0 0 0 rg BT 226.51 240.10 Td (f of non-performing loans\) among other services, as well as reimbursement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.10 Td (certain costs incurred by the ) Tj ET Q q 0 0 0 rg BT 164.18 228.10 Td (Advisor in providing services to the Company) Tj ET Q q 0 0 0 rg BT 348.51 228.10 Td (. ) Tj ET Q q 0 0 0 rg BT 353.33 228.10 Td (The ) Tj ET Q q 0 0 0 rg BT 370.82 228.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 409.99 228.10 Td (Agreement may also entitle the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.10 Td (Advisor to certain back-end cash flow participation fees. ) Tj ET Q q 0 0 0 rg BT 278.40 216.10 Td (The Company also entered into a fee reimbursement agreement \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.10 Td (“AIP) Tj ET Q q 0 0 0 rg BT 69.68 204.10 Td ( Reimbursement ) Tj ET Q q 0 0 0 rg BT 137.45 204.10 Td (Agreement”\) with KBS Capital Markets Group LLC, the dealer manager for the Company’) Tj ET Q q 0 0 0 rg BT 502.07 204.10 Td (s initial public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 192.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 192.10 Td (fering \(the “Dealer Manager”\), pursuant to which the Company agreed to reimburse the Dealer Manager for certain fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.10 Td (expenses it incurs for administering the Company’) Tj ET Q q 0 0 0 rg BT 251.13 180.10 Td (s participation in the Depository ) Tj ET Q q 0 0 0 rg BT 382.31 180.10 Td (T) Tj ET Q q 0 0 0 rg BT 388.06 180.10 Td (rust & Clearing Corporation ) Tj ET Q q 0 0 0 rg BT 503.05 180.10 Td (Alternative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.10 Td (Investment Product Platform with respect to certain accounts of the Company’) Tj ET Q q 0 0 0 rg BT 363.31 168.10 Td (s investors serviced through the platform. ) Tj ET Q q 0 0 0 rg BT 531.70 168.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.10 Td (Advisor and Dealer Manager also serve as, or previously served as, the advisor and dealer manager) Tj ET Q q 0 0 0 rg BT 445.90 156.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 498.56 156.10 Td (, for KBS Real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.10 Td (Estate Investment ) Tj ET Q q 0 0 0 rg BT 123.19 144.10 Td (T) Tj ET Q q 0 0 0 rg BT 128.94 144.10 Td (rust, Inc. \(“KBS REIT) Tj ET Q q 0 0 0 rg BT 218.47 144.10 Td ( I”\), KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 353.53 144.10 Td (T) Tj ET Q q 0 0 0 rg BT 359.29 144.10 Td (rust II, Inc. \(“KBS REIT) Tj ET Q q 0 0 0 rg BT 457.98 144.10 Td ( II”\), KBS Real Estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.10 Td (Investment ) Tj ET Q q 0 0 0 rg BT 96.25 132.10 Td (T) Tj ET Q q 0 0 0 rg BT 102.01 132.10 Td (rust III, Inc. \(“KBS REIT) Tj ET Q q 0 0 0 rg BT 204.03 132.10 Td ( III”\), KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 317.88 132.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 384.62 132.10 Td (, Inc. \(“KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 503.75 132.10 Td (Apartment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.10 Td (REIT”\), KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 217.90 120.10 Td ( II, Inc. \(“KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 391.02 120.10 Td ( II”\) and KBS Growth & Income REIT) Tj ET Q q 0 0 0 rg BT 546.63 120.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.10 Td (Inc. \(“KBS Growth & Income REIT”\).) Tj ET Q endstream endobj 57 0 obj <>] /Rotate 0 /Contents 58 0 R>> endobj 58 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (On January 6, 2014, the Company) Tj ET Q q 0 0 0 rg BT 209.77 632.10 Td (, together with KBS REIT) Tj ET Q q 0 0 0 rg BT 314.31 632.10 Td ( I, KBS REIT) Tj ET Q q 0 0 0 rg BT 369.13 632.10 Td ( II, KBS REIT) Tj ET Q q 0 0 0 rg BT 427.27 632.10 Td ( III, 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 Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 254.66 620.10 Td ( II, the Dealer Manager) Tj ET Q q 0 0 0 rg BT 347.82 620.10 Td (, the ) Tj ET Q q 0 0 0 rg BT 366.98 620.10 Td (Advisor and other KBS-af) Tj ET Q q 0 0 0 rg BT 472.06 620.10 Td (filiated entities, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (entered into an errors and omissions and directors and of) Tj ET Q q 0 0 0 rg BT 276.20 608.10 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 177.02 596.10 Td (The cost of these lower tiers is allocated by the ) Tj ET Q q 0 0 0 rg BT 366.97 596.10 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 365.42 584.10 Td (. ) Tj ET Q q 0 0 0 rg BT 372.74 584.10 Td (The allocation of these shared coverage costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (is 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 430.86 572.10 Td (ficers liability coverage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (purchased individually by each REIT) Tj ET Q q 0 0 0 rg BT 198.16 560.10 Td (. ) Tj ET Q q 0 0 0 rg BT 205.48 560.10 Td (The ) Tj ET Q q 0 0 0 rg BT 222.97 560.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 255.56 560.10 Td (’) Tj ET Q q 0 0 0 rg BT 258.34 560.10 Td (s and the Dealer Manager) Tj ET Q q 0 0 0 rg BT 361.44 560.10 Td (’) Tj ET Q q 0 0 0 rg BT 364.22 560.10 Td (s portion of the shared lower tiers’) Tj ET Q q 0 0 0 rg BT 501.22 560.10 Td ( cost is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (proportionate to the respective entities’) Tj ET Q q 0 0 0 rg BT 205.37 548.10 Td ( prior cost for the errors and omissions insurance. In June 2015, KBS Growth & Income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (REIT) Tj ET Q q 0 0 0 rg BT 71.54 536.10 Td ( was added to the insurance program at terms similar to those described above. KBS REIT) Tj ET Q q 0 0 0 rg BT 432.93 536.10 Td ( I elected to cease participation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (in the program at the June 2017 renewal and obtained separate insurance coverage. ) Tj ET Q q 0 0 0 rg BT 383.25 524.10 Td (At renewal in June 2018, the Company) Tj ET Q q 0 0 0 rg BT 538.96 524.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 182.92 512.10 Td ( II and KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 300.11 512.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 367.41 512.10 Td ( elected to cease participation in the program ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (and obtain separate insurance coverage. ) Tj ET Q q 0 0 0 rg BT 210.91 500.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 267.19 500.10 Td (, together with KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 461.15 500.10 Td ( II, entered into an errors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (and omissions and directors and of) Tj ET Q q 0 0 0 rg BT 188.46 488.10 Td (ficers liability insurance program where the lower tiers of such insurance coverage are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (shared. ) Tj ET Q q 0 0 0 rg BT 82.92 476.10 Td (The cost of these lower tiers is allocated by the ) Tj ET Q q 0 0 0 rg BT 272.86 476.10 Td (Advisor and its insurance broker among each REIT) Tj ET Q q 0 0 0 rg BT 478.45 476.10 Td ( covered by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (program, and is billed directly to each REIT) Tj ET Q q 0 0 0 rg BT 225.37 464.10 Td (. ) Tj ET Q q 0 0 0 rg BT 232.69 464.10 Td (The program is ef) Tj ET Q q 0 0 0 rg BT 303.87 464.10 Td (fective through June 30, 2019.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 446.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 446.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 446.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 446.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.64 446.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.47 446.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.30 446.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.73 446.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.73 446.10 Td (, no other business transactions occurred between the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (Company and these other KBS-sponsored programs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 416.10 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 49.50 404.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 404.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.92 404.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.59 404.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.42 404.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.25 404.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.69 404.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.69 404.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 309.35 404.10 Td (, and any related amounts payable as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.57 404.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.40 404.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 392.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 339.60 157.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.00 339.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.00 339.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.00 339.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 339.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 339.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 339.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 339.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 339.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 339.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 339.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 339.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 339.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 313.60 157.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.00 313.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.00 313.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.00 313.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 313.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 313.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 313.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 313.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 313.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 313.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 313.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 313.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 313.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 287.60 157.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.00 287.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.00 287.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.00 287.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 287.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 287.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 287.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 287.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 287.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 287.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 287.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 287.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 287.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 261.60 157.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.00 261.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.00 261.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.00 261.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 261.60 53.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 261.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 261.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 261.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 261.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 261.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 261.60 55.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 261.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 261.60 71.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 365.6 m 264 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 365.6 m 268 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 365.6 m 321 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 365.6 m 325 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 365.6 m 375 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 365.6 m 379 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 365.6 m 429 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 365.6 m 264 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 352.6 m 264 352.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 365.6 m 268 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 352.6 m 268 352.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 365.6 m 321 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 352.6 m 321 352.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 352.6 m 375 352.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 352.6 m 379 352.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 352.6 m 429 352.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 365.6 m 488 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 365.6 m 492 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 365.6 m 563 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 339.6 m 264 339.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 339.6 m 321 339.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 339.6 m 375 339.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 339.6 m 429 339.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 339.6 m 488 339.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 339.6 m 563 339.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 248.60000000000002 m 375 248.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 248.60000000000002 m 264 248.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 236.60000000000002 m 264 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211 234.60000000000002 m 264 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 248.60000000000002 m 321 248.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 236.60000000000002 m 321 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 234.60000000000002 m 321 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 248.60000000000002 m 375 248.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 236.60000000000002 m 375 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 234.60000000000002 m 375 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 248.60000000000002 m 429 248.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 236.60000000000002 m 429 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 234.60000000000002 m 429 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 248.60000000000002 m 488 248.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 236.60000000000002 m 488 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 234.60000000000002 m 488 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 248.60000000000002 m 563 248.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 236.60000000000002 m 563 236.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 234.60000000000002 m 563 234.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 304.20 369.83 Td (Incurr) Tj ET Q q 0 0 0 rg BT 326.79 369.83 Td (ed) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.05 369.83 Td (Payable as of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 213.85 356.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 227.04 356.83 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 329.70 356.83 Td (Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.75 343.83 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.75 343.83 Td (December) Tj ET Q q 0 0 0 rg BT 529.32 343.83 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 229.00 343.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.00 343.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.50 343.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.50 343.83 Td (2017) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 330.83 Td (Expensed) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 317.85 Td (Asset management fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 213.50 317.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 242.80 317.85 Td (2,217) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.50 317.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.80 317.85 Td (2,856) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 327.50 317.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.75 317.85 Td (4,043) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 317.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.75 317.85 Td (5,603) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.50 317.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 317.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.50 317.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 317.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 304.85 Td (Reimbursable operating expenses ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 162.02 308.48 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.80 304.85 Td (1) Tj ET Q q 0 0 0 rg BT 252.80 304.85 Td (15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.80 304.85 Td (64) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 304.85 Td (198) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 304.85 Td (133) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 304.85 Td (39) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 304.85 Td (26) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 291.85 Td (Disposition fees ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 106.27 295.48 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 252.80 291.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 305.80 291.85 Td (785) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 291.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 291.85 Td (785) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 291.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 291.85 Td (—) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 278.83 Td (Capitalized) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 265.85 Td (Acquisition fees on real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.80 265.85 Td (734) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.80 265.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.75 265.85 Td (3,094) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 265.85 Td (836) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 265.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 265.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 252.85 Td (Acquisition fees on real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 256.80 252.85 Td (9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 305.80 252.85 Td (386) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.80 252.85 Td (157) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 252.85 Td (386) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 252.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 252.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 213.50 239.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 242.80 239.85 Td (3,075) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.50 239.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.80 239.85 Td (4,091) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 327.50 239.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.75 239.85 Td (7,492) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.50 239.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.75 239.85 Td (7,743) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.50 239.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 239.85 Td (39) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.50 239.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 239.85 Td (26) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 215.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 211.50 Td ( ) Tj ET Q q 0 0 0 rg BT 57.42 211.50 Td (The ) Tj ET Q q 0 0 0 rg BT 71.41 211.50 Td (Advisor may seek reimbursement for certain employee costs under the ) Tj ET Q q 0 0 0 rg BT 298.90 211.50 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 330.23 211.50 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 369.63 211.50 Td (The Company has reimbursed the ) Tj ET Q q 0 0 0 rg BT 479.16 211.50 Td (Advisor for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 201.90 Td (Company’) Tj ET Q q 0 0 0 rg BT 82.83 201.90 Td (s allocable portion of the salaries, benefits and overhead of internal audit department personnel providing services to the Company) Tj ET Q q 0 0 0 rg BT 500.18 201.90 Td (. ) Tj ET Q q 0 0 0 rg BT 504.04 201.90 Td (These amounts ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 192.30 Td (totaled ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 73.27 192.30 Td ($78,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 99.27 192.30 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 114.82 192.30 Td ($161,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 144.82 192.30 Td ( for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 169.92 192.30 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 185.91 192.30 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 201.46 192.30 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 210.80 192.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.46 192.30 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.12 192.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 346.25 192.30 Td (, and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 192.30 Td ($64,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 192.30 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.35 192.30 Td ($1) Tj ET Q q 0 0 0 rg BT 413.05 192.30 Td (19,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.05 192.30 Td ( for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 460.16 192.30 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.14 192.30 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.70 192.30 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 501.03 192.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 182.70 Td (June 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 94.16 182.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 136.29 182.70 Td (, and were the only employee costs reimbursed under the ) Tj ET Q q 0 0 0 rg BT 320.02 182.70 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 351.35 182.70 Td (Agreement during these periods. ) Tj ET Q q 0 0 0 rg BT 457.62 182.70 Td (The Company will not ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 173.10 Td (reimburse for employee costs in connection with services for which the ) Tj ET Q q 0 0 0 rg BT 279.43 173.10 Td (Advisor earns acquisition, origination or disposition fees \(other than reimbursement of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 163.50 Td (travel and communication expenses\) or for the salaries or benefits the ) Tj ET Q q 0 0 0 rg BT 273.64 163.50 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 325.71 163.50 Td (filiates may pay to the Company’) Tj ET Q q 0 0 0 rg BT 432.14 163.50 Td (s executive of) Tj ET Q q 0 0 0 rg BT 476.42 163.50 Td (ficers. In addition to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 153.90 Td (amounts above, the Company reimburses the ) Tj ET Q q 0 0 0 rg BT 195.03 153.90 Td (Advisor for certain of the Company’) Tj ET Q q 0 0 0 rg BT 311.66 153.90 Td (s direct costs incurred from third parties that were initially paid by the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 144.30 Td (Advisor on behalf of the Company) Tj ET Q q 0 0 0 rg BT 160.29 144.30 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 135.33 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 131.70 Td ( Disposition fees with respect to real estate sold are included in the gain on sale of real estate in the accompanying consolidated statements of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 107.70 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 107.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 107.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 107.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.64 107.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.47 107.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.30 107.70 Td (, the ) Tj ET Q q 0 0 0 rg BT 304.46 107.70 Td (Advisor reimbursed the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.77 107.70 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.66 107.70 Td ( for a property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.70 Td (insurance rebate. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.29 95.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.27 95.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.71 95.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.38 95.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.21 95.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.04 95.70 Td (, the ) Tj ET Q q 0 0 0 rg BT 352.20 95.70 Td (Advisor reimbursed the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.51 95.70 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.40 95.70 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.70 Td (expenses incurred to evaluate certain strategic transactions for which the ) Tj ET Q q 0 0 0 rg BT 341.60 83.70 Td (Advisor has agreed to reimburse the Company and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.70 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 71.70 Td ( for a property insurance rebate.) Tj ET Q endstream endobj 59 0 obj <>] /Rotate 0 /Contents 60 0 R>> endobj 60 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (On November 8, 2017, the Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.20 632.10 Td (1) Tj ET Q q 0 0 0 rg BT 247.83 632.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.83 632.10 Td ( properties to Keppel-KBS US REIT) Tj ET Q q 0 0 0 rg BT 399.01 632.10 Td (. Keppel-KBS US REIT) Tj ET Q q 0 0 0 rg BT 495.49 632.10 Td ( is externally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (managed by a joint venture \(the “Manager”\) between \(i\) an entity in which Keith D. Hall, the Company’) Tj ET Q q 0 0 0 rg BT 466.86 620.10 Td (s Chief Executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 608.10 Td (ficer and a director) Tj ET Q q 0 0 0 rg BT 135.26 608.10 Td (, and Peter McMillan III, the Company’) Tj ET Q q 0 0 0 rg BT 294.11 608.10 Td (s President and Chairman of the board of directors, have an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (indirect ownership interest and \(ii\) Keppel Capital Holding Pte. Ltd., which is not af) Tj ET Q q 0 0 0 rg BT 386.47 596.10 Td (filiated with the Company) Tj ET Q q 0 0 0 rg BT 490.52 596.10 Td (. Keppel-KBS US ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (REIT) Tj ET Q q 0 0 0 rg BT 71.54 584.10 Td ( is expected to pay certain purchase and sale commissions and asset management fees to the Manager in exchange for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (provision of certain management services.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.50 548.10 Td (. ) Tj ET Q q 0 0 0 rg BT 72.00 548.10 Td (INVESTMENT) Tj ET Q q 0 0 0 rg BT 139.06 548.10 Td ( IN UNCONSOLIDA) Tj ET Q q 0 0 0 rg BT 229.44 548.10 Td (TED JOINT) Tj ET Q q 0 0 0 rg BT 282.88 548.10 Td ( ) Tj ET Q q 0 0 0 rg BT 285.20 548.10 Td (VENTURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 530.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.94 530.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.77 530.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.21 530.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.80 530.10 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 312.18 530.10 Td (s investments in unconsolidated joint ventures were composed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (of the following \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 467.60 128.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 178.00 467.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 182.00 467.60 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 467.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 467.60 96.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 467.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 467.60 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 467.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 467.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 467.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 467.60 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 441.60 128.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 178.00 441.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 182.00 441.60 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 246.00 441.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 441.60 96.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 441.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 441.60 64.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 441.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 441.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 441.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 441.60 75.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 488.6 m 484 488.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 488.6 m 488 488.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 488.6 m 563 488.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 467.6 m 178 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182 467.6 m 246 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250 467.6 m 346 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 467.6 m 414 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 488.6 m 484 488.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 467.6 m 484 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 488.6 m 563 488.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 467.6 m 563 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 467.6 m 178 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182 467.6 m 246 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250 467.6 m 346 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 467.6 m 414 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 467.6 m 484 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 467.6 m 563 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 428.6 m 484 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 428.6 m 563 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 428.6 m 484 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 416.6 m 484 416.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 414.6 m 484 414.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 428.6 m 563 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 416.6 m 563 416.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 414.6 m 563 414.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 492.83 Td (Investment Balance at) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 90.30 471.83 Td (Joint ) Tj ET Q q 0 0 0 rg BT 109.56 471.83 Td (V) Tj ET Q q 0 0 0 rg BT 114.90 471.83 Td (entur) Tj ET Q q 0 0 0 rg BT 133.13 471.83 Td (e) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 195.00 479.83 Td (Number) Tj ET Q q 0 0 0 rg BT 223.37 479.83 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 195.80 471.83 Td (Pr) Tj ET Q q 0 0 0 rg BT 204.17 471.83 Td (operties) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.35 471.83 Td (Location) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 357.60 471.83 Td (Ownership %) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.25 471.83 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.75 471.83 Td (December) Tj ET Q q 0 0 0 rg BT 527.25 471.83 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 458.85 Td (NIP) Tj ET Q q 0 0 0 rg BT 65.09 458.85 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 84.51 458.85 Td (V) Tj ET Q q 0 0 0 rg BT 89.40 458.85 Td (enture) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 211.50 458.85 Td (4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.25 458.85 Td (V) Tj ET Q q 0 0 0 rg BT 290.14 458.85 Td (arious) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.90 458.85 Td (Less than 5.0%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.50 458.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.80 458.85 Td (2,514) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.50 458.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 458.85 Td (3,674) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 445.85 Td (1) Tj ET Q q 0 0 0 rg BT 56.20 445.85 Td (10 ) Tj ET Q q 0 0 0 rg BT 66.06 445.85 Td (W) Tj ET Q q 0 0 0 rg BT 73.29 445.85 Td (illiam Joint ) Tj ET Q q 0 0 0 rg BT 111.37 445.85 Td (V) Tj ET Q q 0 0 0 rg BT 116.26 445.85 Td (enture) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 211.50 445.85 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.05 445.85 Td (New ) Tj ET Q q 0 0 0 rg BT 279.86 445.85 Td (Y) Tj ET Q q 0 0 0 rg BT 284.84 445.85 Td (ork, New ) Tj ET Q q 0 0 0 rg BT 316.31 445.85 Td (Y) Tj ET Q q 0 0 0 rg BT 321.28 445.85 Td (ork) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.15 445.85 Td (60.0%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.80 445.85 Td (4,058) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 445.85 Td (7,160) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 432.85 Td (353 Sacramento Joint ) Tj ET Q q 0 0 0 rg BT 123.68 432.85 Td (V) Tj ET Q q 0 0 0 rg BT 128.57 432.85 Td (enture) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 211.50 432.85 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 256.70 432.85 Td (San Francisco, California) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.15 432.85 Td (55.0%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 432.85 Td (44,414) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 432.85 Td (44,743) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.50 419.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 419.85 Td (50,986) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.50 419.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 419.85 Td (55,577) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (Investment in National Industrial Portfolio Joint V) Tj ET Q q 0 0 0 rg BT 258.99 392.10 Td (enture) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 377.10 Td (On May 18, 2012, the Company) Tj ET Q q 0 0 0 rg BT 200.51 377.10 Td (, through an indirect wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 383.99 377.10 Td (, entered into a joint venture \(the “NIP) Tj ET Q q 0 0 0 rg BT 537.46 377.10 Td ( Joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 365.10 Td (enture”\) with OCM NIP) Tj ET Q q 0 0 0 rg BT 152.17 365.10 Td ( JV) Tj ET Q q 0 0 0 rg BT 165.60 365.10 Td ( Holdings, L.P) Tj ET Q q 0 0 0 rg BT 222.83 365.10 Td (. and HC KBS NIP) Tj ET Q q 0 0 0 rg BT 298.86 365.10 Td ( JV) Tj ET Q q 0 0 0 rg BT 311.18 365.10 Td (, LLC \(“HC-KBS”\). ) Tj ET Q q 0 0 0 rg BT 394.60 365.10 Td (The NIP) Tj ET Q q 0 0 0 rg BT 428.39 365.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 452.66 365.10 Td (V) Tj ET Q q 0 0 0 rg BT 458.77 365.10 Td (enture has invested in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (portfolio of industrial properties. ) Tj ET Q q 0 0 0 rg BT 182.90 353.10 Td (The Company made an initial capital contribution of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.62 353.10 Td ($8.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.51 353.10 Td ( which represents less than a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (5.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.33 341.10 Td ( ownership interest in the NIP) Tj ET Q q 0 0 0 rg BT 189.66 341.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 213.93 341.10 Td (V) Tj ET Q q 0 0 0 rg BT 220.04 341.10 Td (enture as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.19 341.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.02 341.10 Td (. Prior to the Company’) Tj ET Q q 0 0 0 rg BT 419.18 341.10 Td (s adoption of ) Tj ET Q q 0 0 0 rg BT 473.34 341.10 Td (ASU No. 2016-01 on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (January 1, 2018, the Company accounted for its investment in the NIP) Tj ET Q q 0 0 0 rg BT 330.46 329.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 354.73 329.10 Td (V) Tj ET Q q 0 0 0 rg BT 360.84 329.10 Td (enture using the cost method of accounting. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (Ef) Tj ET Q q 0 0 0 rg BT 58.76 317.10 Td (fective January 1, 2018, the Company elected to measure its investment in the NIP) Tj ET Q q 0 0 0 rg BT 389.13 317.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 413.40 317.10 Td (V) Tj ET Q q 0 0 0 rg BT 419.51 317.10 Td (enture, which is an equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (investment without a readily determinable value, at its cost minus impairment, if any) Tj ET Q q 0 0 0 rg BT 388.21 305.10 Td (, plus or minus changes resulting from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (observable price changes in orderly transactions for an identical or similar investment of the same issuer) Tj ET Q q 0 0 0 rg BT 466.31 293.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 275.10 Td (Prior to January 17, 2018, KBS REIT) Tj ET Q q 0 0 0 rg BT 222.37 275.10 Td ( I, an af) Tj ET Q q 0 0 0 rg BT 252.72 275.10 Td (filiate of the ) Tj ET Q q 0 0 0 rg BT 303.54 275.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 335.36 275.10 Td (, was a member of HC-KBS and had a participation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (interest in certain future potential profits generated by the NIP) Tj ET Q q 0 0 0 rg BT 298.21 263.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 322.48 263.10 Td (V) Tj ET Q q 0 0 0 rg BT 328.59 263.10 Td (enture. However) Tj ET Q q 0 0 0 rg BT 397.33 263.10 Td (, KBS REIT) Tj ET Q q 0 0 0 rg BT 446.32 263.10 Td ( I did not have any equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (interest in the NIP) Tj ET Q q 0 0 0 rg BT 122.17 251.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 146.44 251.10 Td (V) Tj ET Q q 0 0 0 rg BT 152.55 251.10 Td (enture. On January 17, 2018, KBS REIT) Tj ET Q q 0 0 0 rg BT 314.85 251.10 Td ( I assigned its participation interest in the NIP) Tj ET Q q 0 0 0 rg BT 497.77 251.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 522.04 251.10 Td (V) Tj ET Q q 0 0 0 rg BT 528.15 251.10 Td (enture ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (to one of the other joint venture partners in the NIP) Tj ET Q q 0 0 0 rg BT 254.08 239.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 278.34 239.10 Td (V) Tj ET Q q 0 0 0 rg BT 284.46 239.10 Td (enture. None of the other joint venture partners are af) Tj ET Q q 0 0 0 rg BT 497.52 239.10 Td (filiated with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (Company or the ) Tj ET Q q 0 0 0 rg BT 115.88 227.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 147.55 227.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 209.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 209.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 209.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.71 209.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.30 209.10 Td (, the book value of the Company’) Tj ET Q q 0 0 0 rg BT 383.88 209.10 Td (s investment in the NIP) Tj ET Q q 0 0 0 rg BT 477.39 209.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 501.66 209.10 Td (V) Tj ET Q q 0 0 0 rg BT 507.77 209.10 Td (enture was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.10 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 197.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.83 197.10 Td ($3.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.72 197.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 219.38 197.10 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.93 197.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.92 197.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.74 197.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.57 197.10 Td (, the Company received a distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 185.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.22 185.10 Td ( related to its investment in the NIP) Tj ET Q q 0 0 0 rg BT 250.77 185.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 275.04 185.10 Td (V) Tj ET Q q 0 0 0 rg BT 281.15 185.10 Td (enture. ) Tj ET Q q 0 0 0 rg BT 310.96 185.10 Td (The Company recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.75 185.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.64 185.10 Td ( of income distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 173.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.33 173.10 Td ( of return of capital from the NIP) Tj ET Q q 0 0 0 rg BT 247.42 173.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 271.68 173.10 Td (V) Tj ET Q q 0 0 0 rg BT 277.80 173.10 Td (enture. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.33 173.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.00 173.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.82 173.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 173.10 Td (, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.10 Td (received a distribution of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.24 161.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.14 161.10 Td ( related to its investment in the NIP) Tj ET Q q 0 0 0 rg BT 342.68 161.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 366.95 161.10 Td (V) Tj ET Q q 0 0 0 rg BT 373.06 161.10 Td (enture. ) Tj ET Q q 0 0 0 rg BT 402.87 161.10 Td (The Company recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.67 161.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.56 161.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.10 Td (of income distributions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.71 149.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.60 149.10 Td ( of return of capital from the NIP) Tj ET Q q 0 0 0 rg BT 342.68 149.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 366.95 149.10 Td (V) Tj ET Q q 0 0 0 rg BT 373.06 149.10 Td (enture. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.60 149.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.58 149.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 137.10 Td (, the Company did not receive any distributions related to its investment in the NIP) Tj ET Q q 0 0 0 rg BT 436.84 137.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 461.11 137.10 Td (V) Tj ET Q q 0 0 0 rg BT 467.22 137.10 Td (enture. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.76 137.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.43 137.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 125.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 125.10 Td (, the Company received a distribution of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.50 125.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.39 125.10 Td ( related to its investment in the NIP) Tj ET Q q 0 0 0 rg BT 517.94 125.10 Td ( Joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 113.10 Td (enture. ) Tj ET Q q 0 0 0 rg BT 85.42 113.10 Td (The Company recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.21 113.10 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.11 113.10 Td ( of income distributions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.81 113.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.70 113.10 Td ( of return of capital from the NIP) Tj ET Q q 0 0 0 rg BT 535.79 113.10 Td ( Joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 101.10 Td (enture.) Tj ET Q endstream endobj 61 0 obj <>] /Rotate 0 /Contents 62 0 R>> endobj 62 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) 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 /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Investment in 1) Tj ET Q q 0 0 0 rg BT 112.84 632.25 Td (10 ) Tj ET Q q 0 0 0 rg BT 125.16 632.25 Td (W) Tj ET Q q 0 0 0 rg BT 133.68 632.25 Td (illiam Joint V) Tj ET Q q 0 0 0 rg BT 189.26 632.25 Td (enture) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 617.25 Td (On December 23, 2013, the Company) Tj ET Q q 0 0 0 rg BT 223.26 617.25 Td (, through an indirect wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 406.75 617.25 Td (, entered into an agreement with SREF ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (III 1) Tj ET Q q 0 0 0 rg BT 66.62 605.25 Td (10 ) Tj ET Q q 0 0 0 rg BT 78.94 605.25 Td (W) Tj ET Q q 0 0 0 rg BT 87.98 605.25 Td (illiam JV) Tj ET Q q 0 0 0 rg BT 123.63 605.25 Td (, LLC \(the “1) Tj ET Q q 0 0 0 rg BT 177.13 605.25 Td (10 ) Tj ET Q q 0 0 0 rg BT 189.45 605.25 Td (W) Tj ET Q q 0 0 0 rg BT 198.49 605.25 Td (illiam JV) Tj ET Q q 0 0 0 rg BT 235.25 605.25 Td ( Partner”\) to form a joint venture \(the “1) Tj ET Q q 0 0 0 rg BT 396.49 605.25 Td (10 ) Tj ET Q q 0 0 0 rg BT 408.81 605.25 Td (W) Tj ET Q q 0 0 0 rg BT 417.84 605.25 Td (illiam Joint ) Tj ET Q q 0 0 0 rg BT 465.44 605.25 Td (V) Tj ET Q q 0 0 0 rg BT 471.56 605.25 Td (enture”\). On May 2, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.25 Td (2014, the 1) Tj ET Q q 0 0 0 rg BT 93.85 593.25 Td (10 ) Tj ET Q q 0 0 0 rg BT 106.17 593.25 Td (W) Tj ET Q q 0 0 0 rg BT 115.20 593.25 Td (illiam Joint ) Tj ET Q q 0 0 0 rg BT 162.80 593.25 Td (V) Tj ET Q q 0 0 0 rg BT 168.91 593.25 Td (enture acquired an of) Tj ET Q q 0 0 0 rg BT 253.41 593.25 Td (fice property containing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.99 593.25 Td (928,157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.49 593.25 Td ( rentable square feet located on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.25 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 581.25 Td (0.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.26 581.25 Td ( acres of land in New ) Tj ET Q q 0 0 0 rg BT 209.63 581.25 Td (Y) Tj ET Q q 0 0 0 rg BT 215.85 581.25 Td (ork, New ) Tj ET Q q 0 0 0 rg BT 255.19 581.25 Td (Y) Tj ET Q q 0 0 0 rg BT 261.41 581.25 Td (ork \(“1) Tj ET Q q 0 0 0 rg BT 289.64 581.25 Td (10 ) Tj ET Q q 0 0 0 rg BT 301.96 581.25 Td (W) Tj ET Q q 0 0 0 rg BT 311.00 581.25 Td (illiam Street”\). Each of the Company and the 1) Tj ET Q q 0 0 0 rg BT 498.63 581.25 Td (10 ) Tj ET Q q 0 0 0 rg BT 510.95 581.25 Td (W) Tj ET Q q 0 0 0 rg BT 519.98 581.25 Td (illiam JV) Tj ET Q q 0 0 0 rg BT 556.75 581.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.25 Td (Partner hold a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.09 569.25 Td (60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.42 569.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.86 569.25 Td (40%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.19 569.25 Td ( ownership interest in the 1) Tj ET Q q 0 0 0 rg BT 272.41 569.25 Td (10 ) Tj ET Q q 0 0 0 rg BT 284.73 569.25 Td (W) Tj ET Q q 0 0 0 rg BT 293.77 569.25 Td (illiam Joint ) Tj ET Q q 0 0 0 rg BT 341.37 569.25 Td (V) Tj ET Q q 0 0 0 rg BT 347.48 569.25 Td (enture, respectively) Tj ET Q q 0 0 0 rg BT 425.13 569.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 551.25 Td (The Company exercises significant influence over the operations, financial policies and decision making with respect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.25 Td (the 1) Tj ET Q q 0 0 0 rg BT 68.85 539.25 Td (10 ) Tj ET Q q 0 0 0 rg BT 81.17 539.25 Td (W) Tj ET Q q 0 0 0 rg BT 90.20 539.25 Td (illiam Joint ) Tj ET Q q 0 0 0 rg BT 137.80 539.25 Td (V) Tj ET Q q 0 0 0 rg BT 143.91 539.25 Td (enture but significant decisions require approval from both members. ) Tj ET Q q 0 0 0 rg BT 422.73 539.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 472.06 539.25 Td (, the Company has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.25 Td (accounted for its investment in the 1) Tj ET Q q 0 0 0 rg BT 194.65 527.25 Td (10 ) Tj ET Q q 0 0 0 rg BT 206.97 527.25 Td (W) Tj ET Q q 0 0 0 rg BT 216.00 527.25 Td (illiam Joint ) Tj ET Q q 0 0 0 rg BT 263.60 527.25 Td (V) Tj ET Q q 0 0 0 rg BT 269.71 527.25 Td (enture under the equity method of accounting. Income, losses, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.25 Td (contributions and distributions are generally allocated based on the members’) Tj ET Q q 0 0 0 rg BT 358.94 515.25 Td ( respective equity interests.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 497.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.94 497.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.77 497.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.21 497.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.80 497.25 Td (, the book value of the Company’) Tj ET Q q 0 0 0 rg BT 383.38 497.25 Td (s investment in the 1) Tj ET Q q 0 0 0 rg BT 465.78 497.25 Td (10 ) Tj ET Q q 0 0 0 rg BT 478.10 497.25 Td (W) Tj ET Q q 0 0 0 rg BT 487.13 497.25 Td (illiam Joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.25 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 485.25 Td (enture was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.15 485.25 Td ($4.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.04 485.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.48 485.25 Td ($7.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.37 485.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 271.03 485.25 Td (, which includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.80 485.25 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.69 485.25 Td ( of unamortized acquisition fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.25 Td (expenses incurred directly by the Company) Tj ET Q q 0 0 0 rg BT 222.41 473.25 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.96 473.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.63 473.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.45 473.25 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.28 473.25 Td (, the 1) Tj ET Q q 0 0 0 rg BT 425.63 473.25 Td (10 ) Tj ET Q q 0 0 0 rg BT 437.95 473.25 Td (W) Tj ET Q q 0 0 0 rg BT 446.99 473.25 Td (illiam Joint ) Tj ET Q q 0 0 0 rg BT 494.58 473.25 Td (V) Tj ET Q q 0 0 0 rg BT 500.70 473.25 Td (enture made a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.25 Td ($58.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 461.25 Td ( return of capital distribution to the Company and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.12 461.25 Td ($38.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.01 461.25 Td ( return of capital distribution to the 1) Tj ET Q q 0 0 0 rg BT 512.11 461.25 Td (10 ) Tj ET Q q 0 0 0 rg BT 524.43 461.25 Td (W) Tj ET Q q 0 0 0 rg BT 533.46 461.25 Td (illiam ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.25 Td (JV) Tj ET Q q 0 0 0 rg BT 60.43 449.25 Td ( Partner funded with proceeds from the 1) Tj ET Q q 0 0 0 rg BT 224.18 449.25 Td (10 ) Tj ET Q q 0 0 0 rg BT 236.50 449.25 Td (W) Tj ET Q q 0 0 0 rg BT 245.54 449.25 Td (illiam refinancing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 431.25 Td (Summarized financial information for the 1) Tj ET Q q 0 0 0 rg BT 245.24 431.25 Td (10 ) Tj ET Q q 0 0 0 rg BT 257.56 431.25 Td (W) Tj ET Q q 0 0 0 rg BT 266.60 431.25 Td (illiam Joint ) Tj ET Q q 0 0 0 rg BT 314.20 431.25 Td (V) Tj ET Q q 0 0 0 rg BT 320.31 431.25 Td (enture follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 402.75 357.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 402.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 402.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 402.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 402.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 378.75 357.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 378.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 378.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 378.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 378.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 354.75 357.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 354.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 354.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 354.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 354.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 330.75 357.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 330.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 330.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 330.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 330.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 306.75 357.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 306.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 306.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 306.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 306.75 74.00 -12.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 402.75 m 485 402.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 402.75 m 563 402.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 402.75 m 485 402.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 402.75 m 563 402.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 366.75 m 485 366.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 355.75 m 485 355.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 353.75 m 485 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 366.75 m 563 366.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 355.75 m 563 355.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 353.75 m 563 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 306.75 m 485 306.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 295.75 m 485 295.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 293.75 m 485 293.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 306.75 m 563 306.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 295.75 m 563 295.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 293.75 m 563 293.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 424.25 406.83 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 493.25 406.83 Td (December) Tj ET Q q 0 0 0 rg BT 527.75 406.83 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 394.70 Td (Assets:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 382.70 Td ( Real estate assets, net of accumulated depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.50 382.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.80 382.70 Td (240,577) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.50 382.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 382.70 Td (248,269) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 370.70 Td ( Other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 459.80 370.70 Td (34,886) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 370.70 Td (32,331) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 358.70 Td ( ) Tj ET Q q 0 0 0 rg BT 66.43 358.70 Td (T) Tj ET Q q 0 0 0 rg BT 70.96 358.70 Td (otal assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.50 358.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.80 358.70 Td (275,463) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.50 358.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 358.70 Td (280,600) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 346.70 Td (Liabilities and equity:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 334.70 Td ( Notes payable, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.50 334.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.80 334.70 Td (263,377) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.50 334.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 334.70 Td (260,108) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 322.70 Td ( Other liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.80 322.70 Td (7,745) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 322.70 Td (1) Tj ET Q q 0 0 0 rg BT 541.80 322.70 Td (1,016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 310.70 Td ( Partners’) Tj ET Q q 0 0 0 rg BT 95.08 310.70 Td ( capital) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.80 310.70 Td (4,341) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 310.70 Td (9,476) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 298.70 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 298.70 Td (otal liabilities and equity) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.50 298.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.80 298.70 Td (275,463) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.50 298.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 298.70 Td (280,600) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 247.75 201.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 247.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.00 247.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 247.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 247.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 247.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 247.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 247.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 247.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 223.75 201.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 223.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.00 223.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 223.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 223.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 223.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 223.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 223.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 223.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 199.75 201.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 199.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.00 199.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 199.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 199.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 199.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 199.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 199.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 199.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 175.75 201.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 175.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.00 175.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 175.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 175.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 175.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 175.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 175.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 175.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 151.75 201.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 151.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.00 151.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 151.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 151.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 151.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 151.75 74.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 151.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 151.75 74.00 -12.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 259.75 m 329 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 259.75 m 333 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 259.75 m 407 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 259.75 m 485 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 259.75 m 489 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 259.75 m 563 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 259.75 m 329 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 247.75 m 329 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 259.75 m 407 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 247.75 m 407 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 259.75 m 485 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 247.75 m 485 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 259.75 m 563 259.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 247.75 m 563 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 247.75 m 329 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 247.75 m 407 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 247.75 m 485 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 247.75 m 563 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 175.75 m 329 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 175.75 m 407 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 175.75 m 485 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 175.75 m 563 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 175.75 m 329 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 163.75 m 329 163.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 175.75 m 407 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 163.75 m 407 163.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 175.75 m 485 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 163.75 m 485 163.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 175.75 m 563 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 163.75 m 563 163.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 163.75 m 329 163.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 151.75 m 329 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 163.75 m 407 163.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 151.75 m 407 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 163.75 m 485 163.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 151.75 m 485 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 163.75 m 563 163.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 151.75 m 563 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 151.75 m 329 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 140.75 m 329 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 138.75 m 329 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 151.75 m 407 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 140.75 m 407 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 138.75 m 407 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 151.75 m 485 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 140.75 m 485 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 138.75 m 485 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 151.75 m 563 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 140.75 m 563 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 138.75 m 563 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 138.75 m 329 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 140.75 m 329 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 126.75 m 329 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255 124.75 m 329 124.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 138.75 m 407 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 140.75 m 407 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 126.75 m 407 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333 124.75 m 407 124.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 138.75 m 485 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 140.75 m 485 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 126.75 m 485 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 124.75 m 485 124.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 138.75 m 563 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 140.75 m 563 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 126.75 m 563 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 124.75 m 563 124.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.85 263.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 292.11 263.98 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.70 263.98 Td (Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 283.50 251.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.50 251.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.50 251.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.50 251.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 239.70 Td (Revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.50 239.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 307.80 239.70 Td (9,951) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 335.50 239.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 385.80 239.70 Td (9,322) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.50 239.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 459.80 239.70 Td (19,760) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.50 239.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 239.70 Td (17,714) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 227.70 Td (Expenses:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 215.70 Td ( Operating, maintenance, and management) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 307.80 215.70 Td (2,296) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 385.80 215.70 Td (2,370) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.80 215.70 Td (4,763) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 215.70 Td (4,766) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 203.70 Td ( Real estate taxes and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 307.80 203.70 Td (1,655) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 385.80 203.70 Td (1,472) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.80 203.70 Td (3,290) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 203.70 Td (3,088) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 191.70 Td ( Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 307.80 191.70 Td (4,126) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 385.80 191.70 Td (4,381) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.80 191.70 Td (8,345) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 191.70 Td (7,614) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 179.70 Td ( Interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 307.80 179.70 Td (4,418) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 385.80 179.70 Td (3,799) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.80 179.70 Td (8,535) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 179.70 Td (5,198) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 167.70 Td (T) Tj ET Q q 0 0 0 rg BT 57.11 167.70 Td (otal expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.80 167.70 Td (12,495) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 167.70 Td (12,022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 459.80 167.70 Td (24,933) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 167.70 Td (20,666) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 155.70 Td (Other income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 317.80 155.70 Td (24) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 395.80 155.70 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.80 155.70 Td (38) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 155.70 Td (28) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 143.70 Td (Net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.50 143.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 305.10 143.70 Td (\(2,520) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 143.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 335.50 143.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.10 143.70 Td (\(2,686) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 143.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.50 143.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 461.10 143.70 Td (\(5,135) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.80 143.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.50 143.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 143.70 Td (\(2,924) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 143.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 130.00 Td (Company’) Tj ET Q q 0 0 0 rg BT 85.83 130.00 Td (s equity in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 121.16 130.00 Td (loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 133.61 130.00 Td ( of unconsolidated joint venture) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.50 130.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 305.10 130.00 Td (\(1,522) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 130.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 335.50 130.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.10 130.00 Td (\(1,622) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 130.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.50 130.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 461.10 130.00 Td (\(3,102) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.80 130.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.50 130.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 130.00 Td (\(1,776) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 130.00 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 63 0 obj <>] /Rotate 0 /Contents 64 0 R>> endobj 64 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) 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 /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Investment in 353 Sacramento Joint V) Tj ET Q q 0 0 0 rg BT 207.02 632.25 Td (enture) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 617.25 Td (On July 6, 2017, the Company) Tj ET Q q 0 0 0 rg BT 193.85 617.25 Td (, through an indirect wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 377.33 617.25 Td (, entered into an agreement with the Migdal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (Members to form the 353 Sacramento Joint ) Tj ET Q q 0 0 0 rg BT 225.67 605.25 Td (V) Tj ET Q q 0 0 0 rg BT 231.79 605.25 Td (enture. On July 6, 2017, the Company sold a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.87 605.25 Td (45%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.20 605.25 Td ( equity interest in an entity that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.25 Td (owns 353 Sacramento to the Migdal Members. ) Tj ET Q q 0 0 0 rg BT 239.29 593.25 Td (The sale resulted in 353 Sacramento being owned by the 353 Sacramento Joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.25 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 581.25 Td (enture, in which the Company indirectly owns ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.35 581.25 Td (55%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.68 581.25 Td ( of the equity interests and the Migdal Members indirectly own ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.90 581.25 Td (45%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.23 581.25 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.25 Td (aggregate of the equity interests.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 551.25 Td (The Company exercises significant influence over the operations, financial policies and decision making with respect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.25 Td (the 353 Sacramento Joint ) Tj ET Q q 0 0 0 rg BT 153.19 539.25 Td (V) Tj ET Q q 0 0 0 rg BT 159.30 539.25 Td (enture but significant decisions require approval from both members. ) Tj ET Q q 0 0 0 rg BT 438.11 539.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 487.45 539.25 Td (, the Company has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.25 Td (accounted for its investment in the 353 Sacramento Joint ) Tj ET Q q 0 0 0 rg BT 278.99 527.25 Td (V) Tj ET Q q 0 0 0 rg BT 285.10 527.25 Td (enture under the equity method of accounting. Income, losses, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.25 Td (contributions and distributions are generally allocated based on the members’) Tj ET Q q 0 0 0 rg BT 358.94 515.25 Td ( respective equity interests.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 497.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 497.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 497.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.71 497.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.30 497.25 Td (, the book value of the Company’) Tj ET Q q 0 0 0 rg BT 383.88 497.25 Td (s investment in the 353 Sacramento Joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.25 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 485.25 Td (enture was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.15 485.25 Td ($44.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.04 485.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.48 485.25 Td ($44.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.37 485.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 281.03 485.25 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.58 485.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.57 485.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.00 485.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.67 485.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.50 485.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.33 485.25 Td (, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.25 Td (made a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.59 473.25 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.49 473.25 Td ( contribution to the 353 Sacramento Joint ) Tj ET Q q 0 0 0 rg BT 297.33 473.25 Td (V) Tj ET Q q 0 0 0 rg BT 303.45 473.25 Td (enture.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 455.25 Td (Summarized financial information for the 353 Sacramento Joint ) Tj ET Q q 0 0 0 rg BT 329.58 455.25 Td (V) Tj ET Q q 0 0 0 rg BT 335.69 455.25 Td (enture follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 426.75 335.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 426.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 426.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 426.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 426.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 402.75 335.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 402.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 402.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 402.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 402.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 378.75 335.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 378.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 378.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 378.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 378.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 354.75 335.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 354.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 354.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 354.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 354.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 330.75 335.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 330.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 330.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 330.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 330.75 85.00 -12.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 426.75 m 474 426.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 426.75 m 563 426.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 426.75 m 474 426.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 390.75 m 474 390.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 379.75 m 474 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 377.75 m 474 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 390.75 m 563 390.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 379.75 m 563 379.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 377.75 m 563 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 330.75 m 474 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 319.75 m 474 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 317.75 m 474 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 330.75 m 563 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 319.75 m 563 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 317.75 m 563 317.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.75 430.83 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.75 430.83 Td (December) Tj ET Q q 0 0 0 rg BT 522.25 430.83 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 418.70 Td (Assets:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 406.70 Td ( Real estate assets, net of accumulated depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.50 406.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 444.80 406.70 Td (172,339) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.50 406.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 406.70 Td (171,066) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 394.70 Td ( Other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 452.80 394.70 Td (8,574) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 394.70 Td (6,472) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 382.70 Td ( ) Tj ET Q q 0 0 0 rg BT 66.43 382.70 Td (T) Tj ET Q q 0 0 0 rg BT 70.96 382.70 Td (otal assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.50 382.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 444.80 382.70 Td (180,913) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.50 382.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 382.70 Td (177,538) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 370.70 Td (Liabilities and equity:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 358.70 Td ( Notes payable, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.50 358.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 448.80 358.70 Td (94,191) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.50 358.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 358.70 Td (89,423) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 346.70 Td ( Other liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 452.80 346.70 Td (6,393) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 346.70 Td (7,313) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 334.70 Td ( Partners’) Tj ET Q q 0 0 0 rg BT 95.08 334.70 Td ( capital) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 448.80 334.70 Td (80,329) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 334.70 Td (80,802) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 322.70 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 322.70 Td (otal liabilities and equity) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.50 322.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 444.80 322.70 Td (180,913) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.50 322.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 322.70 Td (177,538) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 275.75 335.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 275.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 275.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 275.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 275.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 251.75 335.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 251.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 251.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 251.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 251.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 227.75 335.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 227.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 227.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 227.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 227.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 203.75 335.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 203.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 203.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 203.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 203.75 85.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 179.75 335.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 179.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 179.75 85.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 179.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 179.75 85.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 275.75 m 474 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 275.75 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 389 275.75 m 474 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 203.75 m 474 203.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 191.75 m 474 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 203.75 m 563 203.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 191.75 m 563 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 191.75 m 474 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 180.75 m 474 180.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 178.75 m 474 178.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 191.75 m 563 191.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 180.75 m 563 180.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 178.75 m 563 178.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 178.75 m 474 178.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 180.75 m 474 180.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 166.75 m 474 166.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 164.75 m 474 164.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 178.75 m 563 178.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 180.75 m 563 180.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 166.75 m 563 166.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 164.75 m 563 164.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.30 287.98 Td (For) Tj ET Q q 0 0 0 rg BT 405.67 287.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 420.18 287.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 433.38 287.98 Td (ee Months) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.65 279.98 Td (Ended June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.05 287.98 Td (For) Tj ET Q q 0 0 0 rg BT 499.34 287.98 Td ( the Six Months) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.65 279.98 Td (Ended June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 267.70 Td (Revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.50 267.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 452.80 267.70 Td (2,627) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.50 267.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 267.70 Td (5,296) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 255.70 Td (Expenses:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 243.70 Td ( Operating, maintenance, and management) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 243.70 Td (891) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 243.70 Td (1,769) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 231.70 Td ( Real estate taxes and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 231.70 Td (605) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 231.70 Td (1,217) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 219.70 Td ( Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 452.80 219.70 Td (1,387) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 219.70 Td (2,837) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 207.70 Td ( Interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 452.80 207.70 Td (1,348) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 207.70 Td (2,587) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 195.70 Td (T) Tj ET Q q 0 0 0 rg BT 57.11 195.70 Td (otal expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 452.80 195.70 Td (4,231) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 195.70 Td (8,410) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 183.70 Td (Net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.50 183.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 450.10 183.70 Td (\(1,604) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 183.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.50 183.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 183.70 Td (\(3,1) Tj ET Q q 0 0 0 rg BT 551.76 183.70 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 183.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 170.00 Td (Company’) Tj ET Q q 0 0 0 rg BT 85.83 170.00 Td (s equity in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 121.16 170.00 Td (loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 133.61 170.00 Td ( of unconsolidated joint venture) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.50 170.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.10 170.00 Td (\(851) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 170.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.50 170.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 170.00 Td (\(1,649) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 170.00 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 65 0 obj <>] /Rotate 0 /Contents 66 0 R>> endobj 66 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) 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 /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (13. ) Tj ET Q q 0 0 0 rg BT 72.00 632.25 Td (SUPPLEMENT) Tj ET Q q 0 0 0 rg BT 139.60 632.25 Td (AL) Tj ET Q q 0 0 0 rg BT 152.94 632.25 Td ( CASH FLOW) Tj ET Q q 0 0 0 rg BT 216.10 632.25 Td ( ) Tj ET Q q 0 0 0 rg BT 218.04 632.25 Td (AND SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 308.71 632.25 Td ( NONCASH ) Tj ET Q q 0 0 0 rg BT 363.53 632.25 Td (TRANSACTION DISCLOSURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (Supplemental cash flow and significant noncash transaction disclosures were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 572.75 338.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.50 572.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 572.75 83.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 572.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 572.75 83.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 539.75 338.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.50 539.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 539.75 83.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 539.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 539.75 83.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 515.75 338.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.50 515.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 515.75 83.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 515.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 515.75 83.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 482.75 338.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.50 482.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.50 482.75 83.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 482.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 482.75 83.00 -21.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 584.75 m 474.5 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 584.75 m 478.5 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 584.75 m 561.5 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391.5 572.75 m 474.5 572.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 572.75 m 561.5 572.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.20 588.98 Td (Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 424.50 576.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.50 576.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 564.70 Td (Supplemental Disclosure of Cash Flow Information:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 552.00 Td (Interest paid, net of capitalized interest of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 205.05 552.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 209.05 552.00 Td (1,282) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 227.05 552.00 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 229.05 552.00 Td (and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 242.61 552.00 Td ($1,142) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 264.61 552.00 Td ( for the) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 287.71 552.00 Td ( six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.04 552.00 Td ( months ended) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 345.70 552.00 Td ( June 30, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 88.00 544.00 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 104.00 544.00 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 119.55 544.00 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 135.55 544.00 Td (, respectively) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 394.00 544.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.30 544.00 Td (12,247) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.00 544.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 544.00 Td (16,257) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 531.70 Td (Supplemental Disclosure of Significant Noncash ) Tj ET Q q 0 0 0 rg BT 209.82 531.70 Td (T) Tj ET Q q 0 0 0 rg BT 214.43 531.70 Td (ransactions:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 519.70 Td (Application of escrow deposits to acquisition of real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.30 519.70 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 519.70 Td (2,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 507.70 Td (Increase in accrued improvements to real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.30 507.70 Td (1,265) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 507.70 Td (3,551) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 495.00 Td (Distributions 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 88.00 487.00 Td (dividend reinvestment plan) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 459.30 487.00 Td (964) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 487.00 Td (5,817) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 474.00 Td (Distributions 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 88.00 466.00 Td (December 2017 special dividend) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.30 466.00 Td (150,299) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 466.00 Td (—) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 438.25 Td (14. ) Tj ET Q q 0 0 0 rg BT 72.50 438.25 Td (COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 154.45 438.25 Td (AND CONTINGENCIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 420.25 Td (Economic Dependency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 402.25 Td (The Company is dependent on the ) Tj ET Q q 0 0 0 rg BT 211.36 402.25 Td (Advisor for certain services that are essential to the Company) Tj ET Q q 0 0 0 rg BT 457.02 402.25 Td (, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 390.25 Td (identification, evaluation, negotiation, origination, acquisition and disposition of investments; management of the daily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 378.25 Td (operations of the Company’) Tj ET Q q 0 0 0 rg BT 161.37 378.25 Td (s investment portfolio; and other general and administrative responsibilities. In the event that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.25 Td (Advisor is unable to provide these 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 50.00 348.25 Td (Envir) Tj ET Q q 0 0 0 rg BT 74.27 348.25 Td (onmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 330.25 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 50.00 318.25 Td (Although there can be no assurance, the Company is not aware of any environmental liability that could have a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.25 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.63 306.25 Td (fect on its financial condition or results of operations as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.40 306.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.23 306.25 Td (. However) Tj ET Q q 0 0 0 rg BT 423.48 306.25 Td (, changes in applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.25 Td (environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’) Tj ET Q q 0 0 0 rg BT 471.58 294.25 Td (s properties, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.25 Td (activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 270.25 Td (could result in future environmental liabilities. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 252.25 Td (Legal Matters) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 234.25 Td (From time to time, the Company is a 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 50.00 222.25 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 50.00 210.25 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.63 210.25 Td (fect on the Company’) Tj ET Q q 0 0 0 rg BT 176.99 210.25 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 50.00 198.25 Td (contingency and the possible range of loss. ) Tj ET Q q 0 0 0 rg BT 223.85 198.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 273.75 198.25 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 50.00 186.25 Td (proceedings in which the potential loss is deemed to be remote. ) Tj ET Q endstream endobj 67 0 obj <>] /Rotate 0 /Contents 68 0 R>> endobj 68 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 706.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 250.24 706.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 319.62 706.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 358.14 706.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 384.35 706.60 Td (, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 688.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 688.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 688.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 688.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 688.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 688.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 688.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 670.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 655.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 627.25 Td (Participation Fee Liability) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 609.25 Td (Pursuant to the ) Tj ET Q q 0 0 0 rg BT 134.44 609.25 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 173.61 609.25 Td (Agreement currently in ef) Tj ET Q q 0 0 0 rg BT 277.00 609.25 Td (fect with the ) Tj ET Q q 0 0 0 rg BT 328.93 609.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 360.75 609.25 Td (, the ) Tj ET Q q 0 0 0 rg BT 379.91 609.25 Td (Advisor is due a subordinated participation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 597.25 Td (in the Company’) Tj ET Q q 0 0 0 rg BT 116.66 597.25 Td (s net cash flows \(the “Incentive Fee”\) if, after the stockholders have received, together as a collective group, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 585.25 Td (aggregate distributions \(including distributions that may constitute a return of capital for federal income tax purposes\) suf) Tj ET Q q 0 0 0 rg BT 536.35 585.25 Td (ficient ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 573.25 Td (to provide \(i\) a return of their net invested capital, or the amount calculated by multiplying the total number of shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 561.25 Td (purchased by stockholders by the issue price, reduced by any amounts to repurchase shares pursuant to the share redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 549.25 Td (program, and \(ii\) a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.47 549.25 Td (7.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.30 549.25 Td ( per year cumulative, noncompounded return on such net invested capital, the ) Tj ET Q q 0 0 0 rg BT 460.42 549.25 Td (Advisor is entitled to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 537.25 Td (receive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.36 537.25 Td (15.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.19 537.25 Td ( of the Company’) Tj ET Q q 0 0 0 rg BT 176.90 537.25 Td (s net cash flows, whether from continuing operations, net sale proceeds or otherwise. Net sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 525.25 Td (proceeds means the net cash proceeds realized by the Company after deduction of all expenses incurred in connection with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 513.25 Td (sale, including disposition fees paid to the ) Tj ET Q q 0 0 0 rg BT 219.98 513.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 251.65 513.25 Td (. ) Tj ET Q q 0 0 0 rg BT 256.46 513.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.51 513.25 Td (7.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.34 513.25 Td ( per year cumulative, noncompounded return on net invested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 501.25 Td (capital is calculated on a daily basis. In making this calculation, the net invested capital is reduced to the extent distributions in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 489.25 Td (excess of a cumulative, noncompounded, annual return of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.81 489.25 Td (7.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.64 489.25 Td ( are paid \(from whatever source\), except to the extent such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 477.25 Td (distributions would be required to supplement prior distributions paid in order to achieve a cumulative, noncompounded, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 465.25 Td (annual return of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.36 465.25 Td (7.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.19 465.25 Td ( \(invested capital is only reduced as described in this sentence; it is not reduced simply because a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 453.25 Td (distribution constitutes a return of capital for federal income tax purposes\). ) Tj ET Q q 0 0 0 rg BT 351.95 453.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.00 453.25 Td (7.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.83 453.25 Td ( per year cumulative, noncompounded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 441.25 Td (return is not based on the return provided to any individual stockholder) Tj ET Q q 0 0 0 rg BT 334.11 441.25 Td (. ) Tj ET Q q 0 0 0 rg BT 338.55 441.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 387.89 441.25 Td (, it is not necessary for each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 429.25 Td (stockholders to have received any minimum return in order for the ) Tj ET Q q 0 0 0 rg BT 317.97 429.25 Td (Advisor to participate in the Company’) Tj ET Q q 0 0 0 rg BT 474.33 429.25 Td (s net cash flows. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 417.25 Td (fact, if the ) Tj ET Q q 0 0 0 rg BT 92.76 417.25 Td (Advisor is entitled to participate in the Company’) Tj ET Q q 0 0 0 rg BT 290.78 417.25 Td (s net cash flows, the returns of the stockholders will dif) Tj ET Q q 0 0 0 rg BT 511.94 417.25 Td (fer) Tj ET Q q 0 0 0 rg BT 522.64 417.25 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 405.25 Td (some may be less than a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.42 405.25 Td (7.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.25 405.25 Td ( per year cumulative, noncompounded return. ) Tj ET Q q 0 0 0 rg BT 355.00 405.25 Td (This fee is payable only if we are not listed on an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 393.25 Td (exchange. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 375.25 Td (On ) Tj ET Q q 0 0 0 rg BT 86.67 375.25 Td (April 4, 2018, the Company’) Tj ET Q q 0 0 0 rg BT 201.66 375.25 Td (s stockholders approved the acceleration of the payment of such incentive compensation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 363.25 Td (subject to certain conditions. Such accelerated payment would require approval by a special committee of the Company’) Tj ET Q q 0 0 0 rg BT 531.78 363.25 Td (s board ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 351.25 Td (of directors in connection with the anticipated conversion of the Company into a net asset value REIT) Tj ET Q q 0 0 0 rg BT 456.92 351.25 Td (. ) Tj ET Q q 0 0 0 rg BT 461.74 351.25 Td (The ) Tj ET Q q 0 0 0 rg BT 479.23 351.25 Td (Advisor estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 339.25 Td (the fair value of this liability to be as much as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.23 339.25 Td ($34 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.62 339.25 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.78 339.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.61 339.25 Td (, based on a hypothetical liquidation of the assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 327.25 Td (and liabilities at their estimated fair values, after considering the impact of any potential closing costs and fees related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 315.25 Td (disposition of real estate properties. ) Tj ET Q q 0 0 0 rg BT 194.78 315.25 Td (The fair value of the Incentive Fee liability as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.82 315.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 315.25 Td ( is based on the estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 303.25 Td (fair values of the Company’) Tj ET Q q 0 0 0 rg BT 161.64 303.25 Td (s assets and liabilities as of that date and changes to the fair values of assets and liabilities could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 291.25 Td (have a material impact to the Incentive Fee calculation. ) Tj ET Q q 0 0 0 rg BT 273.61 291.25 Td (The Incentive Fee is not currently payable to the ) Tj ET Q q 0 0 0 rg BT 469.38 291.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 501.20 291.25 Td (, as it remains ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 279.25 Td (subject to further approval by the special committee and the Company’) Tj ET Q q 0 0 0 rg BT 333.80 279.25 Td (s conversion to a perpetual-life NA) Tj ET Q q 0 0 0 rg BT 473.30 279.25 Td (V) Tj ET Q q 0 0 0 rg BT 480.34 279.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 504.32 279.25 Td (, and there is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 267.25 Td (no guarantee that it will ever be payable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 243.25 Td (15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 60.00 243.25 Td (. ) Tj ET Q q 0 0 0 rg BT 72.50 243.25 Td (SUBSEQUENT) Tj ET Q q 0 0 0 rg BT 139.57 243.25 Td ( EVENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 225.25 Td (The Company evaluates subsequent events up until the date the consolidated financial statements are issued. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 207.25 Td (Partial Real Estate Land Sale Subsequent to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 241.40 207.25 Td (June 30, 2018) Tj ET Q BT /F2 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 189.25 Td (Park Highlands) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 174.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.22 174.25 Td (July 2, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.39 174.25 Td (, the Company sold approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.92 174.25 Td (83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.92 174.25 Td ( developable acres of Park Highlands undeveloped land for an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 162.25 Td (aggregate sales price, net of closing credits, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.71 162.25 Td ($18.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.60 162.25 Td (, excluding closing costs. ) Tj ET Q q 0 0 0 rg BT 394.74 162.25 Td (The purchasers are not af) Tj ET Q q 0 0 0 rg BT 495.62 162.25 Td (filiated with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 150.25 Td (Company or the ) Tj ET Q q 0 0 0 rg BT 116.38 150.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 148.05 150.25 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 132.25 Td (Real Estate Disposition Subsequent to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.19 132.25 Td (June 30, 2018) Tj ET Q BT /F2 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 114.25 Td (Central Building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 99.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.22 99.25 Td (July 17, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.39 99.25 Td (, the Company sold the Central Building to a purchaser unaf) Tj ET Q q 0 0 0 rg BT 381.99 99.25 Td (filiated with the Company or the ) Tj ET Q q 0 0 0 rg BT 514.19 99.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 546.01 99.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 87.25 Td (for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.16 87.25 Td ($67.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.05 87.25 Td ( before closing costs and credits. ) Tj ET Q q 0 0 0 rg BT 250.52 87.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.96 87.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.79 87.25 Td (, the carrying value of the Central Building was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.52 87.25 Td ($32.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 75.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 75.25 Td (, which was net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.43 75.25 Td ($5.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.32 75.25 Td ( of accumulated depreciation and amortization.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 57.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.22 57.25 Td (July 17, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.39 57.25 Td (, in connection with the disposition of the Central Building, the Company repaid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.51 57.25 Td ($27.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.40 57.25 Td ( of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 45.25 Td (outstanding principal balance due under the Central Building mortgage loan.) Tj ET Q endstream endobj 69 0 obj <>] /Rotate 0 /Contents 70 0 R>> endobj 70 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 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 (33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 704.10 Td (The following discussion and analysis should be read in conjunction with the accompanying financial statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 692.10 Td (KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 182.86 692.10 Td (, Inc. and the notes thereto. ) Tj ET Q q 0 0 0 rg BT 293.10 692.10 Td (As used herein, the terms “we,” “our” and “us” refer to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 680.10 Td (KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 182.86 680.10 Td (, Inc., a Maryland corporation, and, as required by context, KBS Strategic Opportunity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 668.10 Td (Limited Partnership, a Delaware limited partnership, which we refer to as the “Operating Partnership,” and to their subsidiaries.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (Forward-Looking Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 632.10 Td (Certain statements included in this Quarterly Report on Form 10-Q are forward-looking statements. ) Tj ET Q q 0 0 0 rg BT 474.83 632.10 Td (Those statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 620.10 Td (include statements regarding the intent, belief or current expectations of KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 473.03 620.10 Td (, Inc. and members of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 608.10 Td (our management team, as well as the assumptions on which such statements are based, and generally are identified by the use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 596.10 Td (of words such as “may) Tj ET Q q 0 0 0 rg BT 140.44 596.10 Td (,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should” or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 584.10 Td (similar expressions. ) Tj ET Q q 0 0 0 rg BT 131.38 584.10 Td (Actual results may dif) Tj ET Q q 0 0 0 rg BT 219.79 584.10 Td (fer materially from those contemplated by such forward-looking statements. Further) Tj ET Q q 0 0 0 rg BT 555.96 584.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 572.10 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 50.00 560.10 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 50.00 548.10 Td (operating results over time, unless required by law) Tj ET Q q 0 0 0 rg BT 251.52 548.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 530.10 Td (The following are some of the risks and uncertainties, although not all of the risks and uncertainties, that could cause our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.10 Td (actual results to dif) Tj ET Q q 0 0 0 rg BT 126.19 518.10 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 72.50 500.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 500.10 Td (W) Tj ET Q q 0 0 0 rg BT 99.14 500.10 Td (e depend on tenants for our revenue and, accordingly) Tj ET Q q 0 0 0 rg BT 310.91 500.10 Td (, our revenue is dependent upon the success and economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 488.10 Td (viability of our tenants. Revenues from our property investments could decrease due to a reduction in tenants \(caused ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 476.10 Td (by factors including, but not limited to, tenant defaults, tenant insolvency) Tj ET Q q 0 0 0 rg BT 382.84 476.10 Td (, early termination of tenant leases and non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 464.10 Td (renewal of existing tenant leases\) and/or lower rental rates, limiting our ability to pay distributions to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 452.10 Td (stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 437.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 437.10 Td (Our opportunistic investment strategy involves a higher risk of loss than would a strategy of investing in some other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 425.10 Td (types of real estate and real estate-related investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 410.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 410.10 Td (W) Tj ET Q q 0 0 0 rg BT 99.14 410.10 Td (e have paid distributions from financings and in the future we may not pay distributions solely from our cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 398.10 Td (from operations or gains from asset sales. ) Tj ET Q q 0 0 0 rg BT 259.17 398.10 Td (T) Tj ET Q q 0 0 0 rg BT 264.58 398.10 Td (o the extent that we pay distributions from sources other than our cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 386.10 Td (flow from operations or gains from asset sales, we will have less funds available for investment in loans, properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 374.10 Td (and other assets, the overall return to our stockholders may be reduced and subsequent investors may experience ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 362.10 Td (dilution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 347.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 347.10 Td (All of our executive of) Tj ET Q q 0 0 0 rg BT 181.40 347.10 Td (ficers and some of our directors and other key real estate and debt finance professionals are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 335.10 Td (also of) Tj ET Q q 0 0 0 rg BT 117.26 335.10 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 90.50 323.10 Td (advisor) Tj ET Q q 0 0 0 rg BT 119.54 323.10 Td (, our dealer manager and other KBS-af) Tj ET Q q 0 0 0 rg BT 274.57 323.10 Td (filiated entities. ) Tj ET Q q 0 0 0 rg BT 338.72 323.10 Td (As a result, they face conflicts of interest, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 311.10 Td (significant conflicts created by our advisor) Tj ET Q q 0 0 0 rg BT 261.65 311.10 Td (’) Tj ET Q q 0 0 0 rg BT 264.43 311.10 Td (s compensation arrangements with us and other KBS-advised programs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 299.10 Td (and investors and conflicts in allocating time among us and these other programs and investors. ) Tj ET Q q 0 0 0 rg BT 474.67 299.10 Td (These conflicts could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 287.10 Td (result in unanticipated actions. Fees paid to our advisor in connection with transactions involving the origination, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 275.10 Td (acquisition and management of our investments are based on the cost of the investment, not on the quality of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 263.10 Td (investment or services rendered to us. ) Tj ET Q q 0 0 0 rg BT 243.88 263.10 Td (This arrangement could influence our advisor to recommend riskier ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 251.10 Td (transactions to us. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 236.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 236.10 Td (W) Tj ET Q q 0 0 0 rg BT 99.14 236.10 Td (e pay substantial fees to and expenses of our advisor and its af) Tj ET Q q 0 0 0 rg BT 347.78 236.10 Td (filiates. ) Tj ET Q q 0 0 0 rg BT 379.81 236.10 Td (These payments increase the risk that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 224.10 Td (stockholders will not earn a profit on their investment in us and increase our stockholders’) Tj ET Q q 0 0 0 rg BT 450.78 224.10 Td ( risk of loss.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 209.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 209.10 Td (W) Tj ET Q q 0 0 0 rg BT 99.14 209.10 Td (e cannot predict with any certainty how much, if any) Tj ET Q q 0 0 0 rg BT 309.53 209.10 Td (, of our dividend reinvestment plan proceeds will be available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 197.10 Td (for general corporate purposes, including, but not limited to, the redemption of shares under our share redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 185.10 Td (program, future funding obligations under any real estate loans receivable we acquire, the funding of capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 173.10 Td (expenditures on our real estate investments or the repayment of debt. If such funds are not available from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 161.10 Td (dividend reinvestment plan of) Tj ET Q q 0 0 0 rg BT 210.01 161.10 Td (fering, then we may have to use a greater proportion of our cash flow from operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 149.10 Td (to meet these cash requirements, which would reduce cash available for distributions and could limit our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 137.10 Td (redeem shares under our share redemption program.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 122.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 122.10 Td (W) Tj ET Q q 0 0 0 rg BT 99.14 122.10 Td (e have focused, and may continue to focus, our investments in non-performing real estate and real estate-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 110.10 Td (loans, real estate-related loans secured by non-stabilized assets and real estate-related securities, which involve more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.50 98.10 Td (risk than investments in performing real estate and real estate-related assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 77.10 Td (All forward-looking statements should be read in light of the risks identified in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 449.93 77.10 Td ( of our ) Tj ET Q q 0 0 0 rg BT 478.54 77.10 Td (Annual Report on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 65.10 Td (Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.18 65.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.77 65.10 Td ( and in Part II, Item IA) Tj ET Q q 0 0 0 rg BT 341.58 65.10 Td ( of our Quarterly Report on Form 10-Q for the period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 53.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.38 53.10 Td (March 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.98 53.10 Td (, both as filed with the Securities and Exchange Commission \(the “SEC”\).) Tj ET Q endstream endobj 71 0 obj <>] /Rotate 0 /Contents 72 0 R>> endobj 72 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (34) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 686.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 686.25 Td (e were formed on October 8, 2008 as a Maryland corporation, 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 49.50 674.25 Td (\(“REIT”\) beginning with the taxable year ended December 31, 2010 and intend to operate in such manner) Tj ET Q q 0 0 0 rg BT 472.96 674.25 Td (. KBS Capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (Advisors LLC \(“KBS Capital ) Tj ET Q q 0 0 0 rg BT 170.05 662.25 Td (Advisors”\) is our advisor) Tj ET Q q 0 0 0 rg BT 270.32 662.25 Td (. ) Tj ET Q q 0 0 0 rg BT 274.77 662.25 Td (As our advisor) Tj ET Q q 0 0 0 rg BT 333.25 662.25 Td (, KBS Capital ) Tj ET Q q 0 0 0 rg BT 391.03 662.25 Td (Advisors manages our day-to-day ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (operations and our portfolio of investments. KBS Capital ) Tj ET Q q 0 0 0 rg BT 280.31 650.25 Td (Advisors also has the authority to make all of the decisions regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (our investments, subject to the limitations in our charter and the direction and oversight of our board of directors. KBS Capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (Advisors also provides asset-management, marketing, investor) Tj ET Q q 0 0 0 rg BT 300.08 626.25 Td (-relations and other administrative services on our behalf. ) Tj ET Q q 0 0 0 rg BT 532.87 626.25 Td (W) Tj ET Q q 0 0 0 rg BT 541.51 626.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (have ) Tj ET Q q 0 0 0 rg BT 70.88 614.25 Td (sought ) Tj ET Q q 0 0 0 rg BT 100.05 614.25 Td (to ) Tj ET Q q 0 0 0 rg BT 110.33 614.25 Td (invest ) Tj ET Q q 0 0 0 rg BT 136.71 614.25 Td (in ) Tj ET Q q 0 0 0 rg BT 146.99 614.25 Td (and ) Tj ET Q q 0 0 0 rg BT 163.93 614.25 Td (manage ) Tj ET Q q 0 0 0 rg BT 197.52 614.25 Td (a ) Tj ET Q q 0 0 0 rg BT 204.46 614.25 Td (diverse ) Tj ET Q q 0 0 0 rg BT 235.84 614.25 Td (portfolio ) Tj ET Q q 0 0 0 rg BT 273.33 614.25 Td (of ) Tj ET Q q 0 0 0 rg BT 284.16 614.25 Td (real ) Tj ET Q q 0 0 0 rg BT 301.65 614.25 Td (estate) Tj ET Q /GS0 gs q 5.00 0 0 10.09 324.41 612.09 cm /I17 Do Q q 0 0 0 rg BT 329.41 614.25 Td (related ) Tj ET Q q 0 0 0 rg BT 359.11 614.25 Td (loans, ) Tj ET Q q 0 0 0 rg BT 385.22 614.25 Td (opportunistic ) Tj ET Q q 0 0 0 rg BT 440.50 614.25 Td (real ) Tj ET Q q 0 0 0 rg BT 457.98 614.25 Td (estate, ) Tj ET Q q 0 0 0 rg BT 485.75 614.25 Td (real ) Tj ET Q q 0 0 0 rg BT 503.23 614.25 Td (estate-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (debt securities and other real estate-related investments. ) Tj ET Q q 0 0 0 rg BT 275.34 602.25 Td (W) Tj ET Q q 0 0 0 rg BT 283.98 602.25 Td (e conduct our business primarily through our operating partnership, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (of which we are the sole general partner) Tj ET Q q 0 0 0 rg BT 209.15 590.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 572.25 Td (On January 8, 2009, we filed a registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 336.30 572.25 Td (1 with the SEC to of) Tj ET Q q 0 0 0 rg BT 418.06 572.25 Td (fer a minimum of 250,000 shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.25 Td (and a maximum of 140,000,000 shares of common stock for sale to the public, of which 100,000,000 shares were registered in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (our primary of) Tj ET Q q 0 0 0 rg BT 107.63 548.25 Td (fering and 40,000,000 shares were registered under our dividend reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 444.57 548.25 Td (W) Tj ET Q q 0 0 0 rg BT 453.21 548.25 Td (e ceased of) Tj ET Q q 0 0 0 rg BT 497.44 548.25 Td (fering shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (common stock in our primary of) Tj ET Q q 0 0 0 rg BT 179.02 536.25 Td (fering on November 14, 2012. ) Tj ET Q q 0 0 0 rg BT 302.42 536.25 Td (W) Tj ET Q q 0 0 0 rg BT 311.06 536.25 Td (e sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.17 536.25 Td (56,584,976) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.17 536.25 Td ( shares of common stock in the primary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 524.25 Td (fering for gross of) Tj ET Q q 0 0 0 rg BT 129.95 524.25 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.19 524.25 Td ($561.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.08 524.25 Td (. ) Tj ET Q q 0 0 0 rg BT 268.90 524.25 Td (W) Tj ET Q q 0 0 0 rg BT 277.54 524.25 Td (e continue to of) Tj ET Q q 0 0 0 rg BT 339.84 524.25 Td (fer shares of common stock under the dividend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 125.32 512.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.76 512.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.59 512.25 Td (, we had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.86 512.25 Td (6,704,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.86 512.25 Td ( shares of common stock under the dividend reinvestment plan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.25 Td (for gross of) Tj ET Q q 0 0 0 rg BT 95.42 500.25 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.67 500.25 Td ($75.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.56 500.25 Td (. ) Tj ET Q q 0 0 0 rg BT 229.01 500.25 Td (Also as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.06 500.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.89 500.25 Td (, we had redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.35 500.25 Td (21,972,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.35 500.25 Td ( of the shares sold in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 488.25 Td (fering for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.19 488.25 Td ($266.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.08 488.25 Td (. ) Tj ET Q q 0 0 0 rg BT 161.53 488.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.97 488.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.80 488.25 Td (, we had issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.40 488.25 Td (13,069,487) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.40 488.25 Td ( shares of common stock in connection with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.25 Td (December 2017 special dividend. ) Tj ET Q q 0 0 0 rg BT 185.29 476.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 235.19 476.25 Td (, on December 29, 201) Tj ET Q q 0 0 0 rg BT 325.91 476.25 Td (1 and October 23, 2012, we issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.71 476.25 Td (220,994) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.21 476.25 Td ( shares and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.25 Td (55,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 464.25 Td ( shares of common stock, respectively) Tj ET Q q 0 0 0 rg BT 229.08 464.25 Td (, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.25 464.25 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.14 464.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.58 464.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.47 464.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 418.13 464.25 Td (, in private transactions exempt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.25 Td (from the registration requirements pursuant to Section 4\(2\) of the Securities ) Tj ET Q q 0 0 0 rg BT 354.70 452.25 Td (Act of 1933, as amended. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 434.25 Td (On March 2, 2016, KBS Strategic Opportunity \(BVI\) Holdings, Ltd. \(“KBS Strategic Opportunity BVI”\), our wholly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (owned subsidiary) Tj ET Q q 0 0 0 rg BT 119.12 422.25 Td (, filed a final prospectus with the Israel Securities ) Tj ET Q q 0 0 0 rg BT 319.06 422.25 Td (Authority for a proposed of) Tj ET Q q 0 0 0 rg BT 428.86 422.25 Td (fering of up to 1,000,000,000 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (Israeli new Shekels of Series ) Tj ET Q q 0 0 0 rg BT 166.97 410.25 Td (A) Tj ET Q q 0 0 0 rg BT 173.64 410.25 Td ( debentures \(the “Debentures”\) at an annual interest rate not to exceed 4.25%. On March 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (2016, KBS Strategic Opportunity BVI commenced the institutional tender of the Debentures and accepted application for 842.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (million Israeli new Shekels. On March 7, 2016, KBS Strategic Opportunity BVI commenced the public tender of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (Debentures and accepted 127.7 million Israeli new Shekels. In the aggregate, KBS Strategic Opportunity BVI accepted 970.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (million Israeli new Shekels \(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.73 362.25 Td ($249.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.63 362.25 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.79 362.25 Td (March 8, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.38 362.25 Td (\) in both the institutional and public tenders at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.25 Td (an annual interest rate of 4.25%. KBS Strategic Opportunity BVI issued the Debentures on March 8, 2016. ) Tj ET Q q 0 0 0 rg BT 481.45 350.25 Td (The terms of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.25 Td (Debentures require principal installment payments equal to 20% of the face value of the Debentures on March 1st of each year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (from 2019 to 2023. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 308.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 308.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 308.25 Td (, we consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.48 308.25 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.24 308.25 Td ( of) Tj ET Q q 0 0 0 rg BT 257.89 308.25 Td (fice properties \(of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.96 308.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.40 308.25 Td ( of) Tj ET Q q 0 0 0 rg BT 384.05 308.25 Td (fice property was held for sale\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.72 308.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.16 308.25 Td ( of) Tj ET Q q 0 0 0 rg BT 538.81 308.25 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (portfolio consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.88 296.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.54 296.25 Td ( of) Tj ET Q q 0 0 0 rg BT 168.19 296.25 Td (fice buildings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.34 296.25 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.34 296.25 Td ( acres of undeveloped land, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.52 296.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.96 296.25 Td ( of) Tj ET Q q 0 0 0 rg BT 389.61 296.25 Td (fice/flex/industrial portfolio consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.50 284.25 Td ( buildings, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.23 284.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.67 284.25 Td ( retail property) Tj ET Q q 0 0 0 rg BT 177.43 284.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.43 284.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.43 284.25 Td ( apartment properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.40 284.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.39 284.25 Td ( investments in undeveloped land with approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.29 284.25 Td (1,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.79 284.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.25 Td (developable acres, and owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.95 272.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.93 272.25 Td ( investments in unconsolidated joint ventures, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.74 272.25 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.18 272.25 Td ( investment in real estate debt securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 260.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.42 260.25 Td ( investments in real estate equity securities.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 242.25 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 71.50 224.25 Td (V) Tj ET Q q 0 0 0 rg BT 77.43 224.25 Td (olatility in global financial markets and changing political environments can cause fluctuations in the performance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.25 Td (the 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 49.50 200.25 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 450.08 200.25 Td (, to retain tenants who are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.25 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 49.50 176.25 Td (of financing due to higher interest rates may cause dif) Tj ET Q q 0 0 0 rg BT 267.02 176.25 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 49.50 164.25 Td (as favorable as the terms of existing indebtedness. Market conditions can change quickly) Tj ET Q q 0 0 0 rg BT 407.08 164.25 Td (, potentially negatively impacting the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 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 49.50 140.25 Td (our portfolio and the cost of our debt exposure.) Tj ET Q endstream endobj 73 0 obj <>] /Rotate 0 /Contents 74 0 R>> endobj 74 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 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 24.60 Td (35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Liquidity and Capital Resour) Tj ET Q q 0 0 0 rg BT 175.18 704.25 Td (ces) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 686.25 Td (Our principal demand for funds during the short and long-term is and will be for the acquisition of real estate and real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (estate-related investments, payment of operating expenses, capital expenditures and general and administrative expenses, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (payments under debt obligations, redemptions and purchases of our common stock and payments of distributions to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (stockholders. ) Tj ET Q q 0 0 0 rg BT 104.87 650.25 Td (T) Tj ET Q q 0 0 0 rg BT 110.28 650.25 Td (o date, we have had six primary sources of capital for meeting our cash requirements: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 632.25 Td (Proceeds from the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 318.93 632.25 Td (fering; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 617.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 617.25 Td (Proceeds from our dividend reinvestment plan;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 602.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 602.25 Td (Proceeds from our public bond of) Tj ET Q q 0 0 0 rg BT 224.51 602.25 Td (fering in Israel;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 587.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 587.25 Td (Debt financing;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 572.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 572.25 Td (Proceeds from the sale of real estate and the repayment of real estate-related investments; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 557.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 557.25 Td (Cash flow generated by our real estate and real estate-related investments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 536.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 536.25 Td (e sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.75 536.25 Td (56,584,976) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.75 536.25 Td ( shares of common stock in the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 432.34 536.25 Td (fering for gross of) Tj ET Q q 0 0 0 rg BT 504.64 536.25 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.37 524.25 Td ($561.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.26 524.25 Td (. ) Tj ET Q q 0 0 0 rg BT 162.08 524.25 Td (W) Tj ET Q q 0 0 0 rg BT 170.72 524.25 Td (e ceased of) Tj ET Q q 0 0 0 rg BT 214.95 524.25 Td (fering shares in the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 447.49 524.25 Td (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (November 14, 2012. ) Tj ET Q q 0 0 0 rg BT 134.03 512.25 Td (W) Tj ET Q q 0 0 0 rg BT 142.66 512.25 Td (e continue to of) Tj ET Q q 0 0 0 rg BT 204.96 512.25 Td (fer shares of common stock under the dividend reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 471.28 512.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.73 512.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.56 512.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.25 Td (we had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.77 500.25 Td (6,704,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.77 500.25 Td ( shares of common stock under the dividend reinvestment plan for gross of) Tj ET Q q 0 0 0 rg BT 438.96 500.25 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.21 500.25 Td ($75.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 488.25 Td (. ) Tj ET Q q 0 0 0 rg BT 83.21 488.25 Td (T) Tj ET Q q 0 0 0 rg BT 88.62 488.25 Td (o date, we have invested all of the net proceeds from our initial public of) Tj ET Q q 0 0 0 rg BT 379.18 488.25 Td (fering in real estate and real estate-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.25 Td (investments. ) Tj ET Q q 0 0 0 rg BT 102.09 476.25 Td (W) Tj ET Q q 0 0 0 rg BT 110.73 476.25 Td (e intend to use our cash on hand, proceeds from asset sales, proceeds from debt financing, cash flow generated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.25 Td (by our real estate operations and real estate-related investments and proceeds from our dividend reinvestment plan as our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.25 Td (primary sources of immediate and long-term liquidity) Tj ET Q q 0 0 0 rg BT 263.80 452.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 434.25 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 49.50 422.25 Td (reduced by operating expenditures and corporate general and administrative expenses. Cash flow from operations from our real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (estate investments is primarily dependent upon the occupancy levels of our properties, the net ef) Tj ET Q q 0 0 0 rg BT 434.48 410.25 Td (fective rental rates on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (leases, the collectibility of rent and operating recoveries from our tenants and how well we manage our expenditures. ) Tj ET Q q 0 0 0 rg BT 522.40 398.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 386.25 Td (, our of) Tj ET Q q 0 0 0 rg BT 134.31 386.25 Td (fice and retail properties were collectively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.33 386.25 Td (77%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.67 386.25 Td ( occupied and our apartment properties were collectively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (94%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.83 374.25 Td ( occupied. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 356.25 Td (Investments in real estate debt securities generate cash flow in the form of interest income, which are reduced by loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.25 Td (service fees, asset management fees and corporate general and administrative expenses. Investments in real estate equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (securities generate cash flow in the form of dividend income, which is reduced by asset management fees. ) Tj ET Q q 0 0 0 rg BT 475.75 332.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.19 332.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.02 332.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.60 320.25 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.04 320.25 Td ( investment in real estate debt securities outstanding with a total book value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.07 320.25 Td ($17.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.96 320.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.40 320.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.38 320.25 Td ( investments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (real estate equity securities outstanding with a total carrying value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.46 308.25 Td ($98.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.36 308.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 290.25 Td (Under our charter) Tj ET Q q 0 0 0 rg BT 142.67 290.25 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 49.50 278.25 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 523.92 278.25 Td (, unless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.25 Td (the conflicts committee of our board of directors has determined that such excess expenses were justified based on unusual and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.25 Td (non-recurring factors. Operating expense reimbursements for the four fiscal quarters ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.02 254.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.85 254.25 Td ( did not exceed the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.25 Td (charter) Tj ET Q q 0 0 0 rg BT 77.05 242.25 Td (-imposed limitation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 224.25 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.11 224.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.78 224.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.60 224.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.43 224.25 Td (, our cash needs for capital expenditures, redemptions of common stock and debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.25 Td (servicing were met with proceeds from debt financing, proceeds from our dividend reinvestment plan and cash on hand. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.25 Td (Operating cash needs during the same period were met through cash flow generated by our real estate and real estate-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.25 Td (investments and cash on hand. ) Tj ET Q q 0 0 0 rg BT 173.37 188.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.81 188.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.64 188.25 Td (, we had outstanding debt obligations in the aggregate principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td ($776.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.39 176.25 Td (, with a weighted-average remaining term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.88 176.25 Td (1.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.38 176.25 Td ( years. ) Tj ET Q q 0 0 0 rg BT 329.42 176.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.87 176.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.70 176.25 Td (, we had a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.84 176.25 Td ($158.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.73 176.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.25 Td (debt obligations scheduled to mature within 12 months of that date. ) Tj ET Q q 0 0 0 rg BT 321.49 164.25 Td (W) Tj ET Q q 0 0 0 rg BT 330.13 164.25 Td (e plan to exercise our extension options available under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (our loan agreements or pay down or refinance the related notes payable prior to their maturity dates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 134.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 134.25 Td (e have elected to be taxed as a REIT) Tj ET Q q 0 0 0 rg BT 225.94 134.25 Td ( and intend to operate as a REIT) Tj ET Q q 0 0 0 rg BT 354.32 134.25 Td (. ) Tj ET Q q 0 0 0 rg BT 359.14 134.25 Td (T) Tj ET Q q 0 0 0 rg BT 364.55 134.25 Td (o maintain our qualification as a REIT) Tj ET Q q 0 0 0 rg BT 517.65 134.25 Td (, we are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.25 Td (required to make aggregate annual distributions to our stockholders of at least 90% of our REIT) Tj ET Q q 0 0 0 rg BT 432.83 122.25 Td ( taxable income \(computed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.25 Td (without regard to the dividends paid deduction and excluding net capital gain\). Our board of directors may authorize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.25 Td (distributions in excess of those required for us to maintain REIT) Tj ET Q q 0 0 0 rg BT 306.49 98.25 Td ( status depending on our financial condition and such other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.25 Td (factors as our board of directors deems relevant. ) Tj ET Q q 0 0 0 rg BT 244.52 86.25 Td (W) Tj ET Q q 0 0 0 rg BT 253.16 86.25 Td (e have not established a minimum distribution level.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 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 24.60 Td (36) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Cash Flows from Operating ) Tj ET Q q 0 0 0 rg BT 166.93 704.25 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 689.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 689.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 689.25 Td (, we consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.48 689.25 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.24 689.25 Td ( of) Tj ET Q q 0 0 0 rg BT 257.89 689.25 Td (fice properties \(of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.96 689.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.40 689.25 Td ( of) Tj ET Q q 0 0 0 rg BT 384.05 689.25 Td (fice property was held for sale\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.72 689.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.16 689.25 Td ( of) Tj ET Q q 0 0 0 rg BT 538.81 689.25 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (portfolio consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.88 677.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.54 677.25 Td ( of) Tj ET Q q 0 0 0 rg BT 168.19 677.25 Td (fice buildings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.34 677.25 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.34 677.25 Td ( acres of undeveloped land, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.52 677.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.96 677.25 Td ( of) Tj ET Q q 0 0 0 rg BT 389.61 677.25 Td (fice/flex/industrial portfolio consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.50 665.25 Td ( buildings, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.23 665.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.67 665.25 Td ( retail property) Tj ET Q q 0 0 0 rg BT 177.43 665.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.43 665.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.43 665.25 Td ( apartment properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.40 665.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.39 665.25 Td ( investments in undeveloped land with approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.29 665.25 Td (1,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.79 665.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (developable acres, and owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.95 653.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.93 653.25 Td ( investments in unconsolidated joint ventures, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.74 653.25 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.18 653.25 Td ( investment in real estate debt securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 641.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.42 641.25 Td ( investments in real estate equity securities. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.03 641.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.70 641.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.53 641.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.36 641.25 Td (, net cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.34 641.25 Td (provided by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.39 641.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (operating activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.41 629.25 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.31 629.25 Td (. ) Tj ET Q q 0 0 0 rg BT 200.13 629.25 Td (W) Tj ET Q q 0 0 0 rg BT 208.76 629.25 Td (e expect that our cash flows from operating activities will increase in future periods as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.25 Td (result of owning assets acquired during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.91 617.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.91 617.25 Td ( for an entire period, leasing additional space that is currently unoccupied and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (anticipated future acquisitions of real estate and real estate-related investments. However) Tj ET Q q 0 0 0 rg BT 405.34 605.25 Td (, our cash flows from operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.25 Td (activities may decrease to the extent that we dispose of additional assets.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 575.25 Td (Cash Flows from Investing ) Tj ET Q q 0 0 0 rg BT 163.60 575.25 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 560.25 Td (Net cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.21 560.25 Td (used in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.82 560.25 Td ( investing activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.13 560.25 Td ($339.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.02 560.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.40 560.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.07 560.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.89 560.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.72 560.25 Td ( and primarily consisted of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 530.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 530.25 Td (Acquisition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.00 530.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.98 530.25 Td ( of) Tj ET Q q 0 0 0 rg BT 180.63 530.25 Td (fice properties for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.76 530.25 Td ($312.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.65 530.25 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 515.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 515.25 Td (Investment in real estate equity securities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.55 515.25 Td ($15.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.44 515.25 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 500.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 500.25 Td (Improvements to real estate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.12 500.25 Td ($14.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.01 500.25 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 485.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 485.25 Td (Proceeds from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.13 485.25 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.13 485.25 Td ( acres of undeveloped land of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.64 485.25 Td ($2.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.53 485.25 Td (;) 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 (Reimbursement of construction costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.91 470.25 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.81 470.25 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 455.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 455.25 Td (Contribution to an unconsolidated joint venture of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.02 455.25 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.91 455.25 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 440.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 440.25 Td (Distribution of capital from an unconsolidated joint venture of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.88 440.25 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.78 440.25 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 425.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 425.25 Td (Funding of development obligations of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.59 425.25 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.49 425.25 Td (; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 410.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 410.25 Td (Purchase of an interest rate cap for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.32 410.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.21 410.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (Cash Flows from Financing ) Tj ET Q q 0 0 0 rg BT 168.61 389.25 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 374.25 Td (Net cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.21 374.25 Td (provided by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.25 374.25 Td ( financing activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.67 374.25 Td ($22.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.56 374.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.94 374.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.61 374.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.43 374.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.26 374.25 Td ( and consisted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (primarily of the following: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 344.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 344.25 Td ($176.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.89 344.25 Td ( of net cash provided by debt and other financings as a result of proceeds from notes payable of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.93 344.25 Td ($184.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 332.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.89 332.25 Td (, partially of) Tj ET Q q 0 0 0 rg BT 167.86 332.25 Td (fset by principal payments on notes and bonds payable of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.03 332.25 Td ($5.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.92 332.25 Td ( and payments of deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 320.25 Td (financing costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.59 320.25 Td ($2.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.49 320.25 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 305.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 305.25 Td ($1) Tj ET Q q 0 0 0 rg BT 99.63 305.25 Td (15.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.52 305.25 Td ( of cash used for redemptions of common stock;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 290.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 290.25 Td ($38.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.89 290.25 Td ( of net cash distributions to stockholders, after giving ef) Tj ET Q q 0 0 0 rg BT 367.00 290.25 Td (fect to distributions reinvested by stockholders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 278.25 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.83 278.25 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.72 278.25 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 263.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 263.25 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 263.25 Td ( of contributions from noncontrolling interests; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 248.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 248.25 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 248.25 Td ( of payments made in connection with a potential of) Tj ET Q q 0 0 0 rg BT 346.71 248.25 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 227.25 Td (In order to execute our investment strategy) Tj ET Q q 0 0 0 rg BT 242.96 227.25 Td (, we utilize secured debt and we may) Tj ET Q q 0 0 0 rg BT 390.03 227.25 Td (, to the extent available, utilize unsecured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.25 Td (debt, to finance a portion of our investment portfolio. Management remains vigilant in monitoring the risks inherent with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.25 Td (use of debt in our portfolio and is taking actions to ensure that these risks, including refinancing and interest risks, are properly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.25 Td (balanced with the benefit of using leverage. ) Tj ET Q q 0 0 0 rg BT 226.47 191.25 Td (There is no limitation on the amount we may borrow for any single investment. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.25 Td (charter limits our total liabilities such that our total liabilities may not exceed 75% of the cost of our tangible assets; however) Tj ET Q q 0 0 0 rg BT 549.25 179.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.25 Td (we may exceed that limit if a majority of the conflicts committee approves each borrowing in excess of our charter limitation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.25 Td (and we disclose such borrowing to our common stockholders in our next quarterly report with an explanation from the conflicts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.25 Td (committee of the justification for the excess borrowing. ) Tj ET Q q 0 0 0 rg BT 273.61 143.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.05 143.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.88 143.25 Td (, our borrowings and other liabilities were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.25 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 131.25 Td (72%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.09 131.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.53 131.25 Td (70%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.86 131.25 Td ( and of the cost \(before depreciation and other noncash reserves\) and book value \(before ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.25 Td (depreciation\) of our tangible assets, respectively) Tj ET Q q 0 0 0 rg BT 242.11 119.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 101.25 Td (In March 2016, we, through a wholly-owned subsidiary) Tj ET Q q 0 0 0 rg BT 294.36 101.25 Td (, issued 970.2 million Israeli new Shekels \(approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.10 101.25 Td ($249.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 89.25 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.55 89.25 Td (March 8, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.15 89.25 Td (\) in 4.25% bonds to investors in Israel pursuant to a public of) Tj ET Q q 0 0 0 rg BT 405.65 89.25 Td (fering registered in Israel. ) Tj ET Q q 0 0 0 rg BT 511.26 89.25 Td (The bonds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.25 Td (have a seven year term, with principal payable in five equal annual installments from 2019 to 2023. ) Tj ET Q q 0 0 0 rg BT 450.03 77.25 Td (W) Tj ET Q q 0 0 0 rg BT 458.67 77.25 Td (e have used a majority of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.25 Td (the proceeds from the issuance of these bonds to make additional investments.) Tj ET Q endstream endobj 77 0 obj <>] /Rotate 0 /Contents 78 0 R>> endobj 78 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 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 24.60 Td (37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (In addition to making investments in accordance with our investment objectives, we use or have used 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 and our dealer manager) Tj ET Q q 0 0 0 rg BT 346.33 692.10 Td (. During our of) Tj ET Q q 0 0 0 rg BT 406.14 692.10 Td (fering stage, these payments included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (payments to our dealer manager for selling commissions and dealer manager fees related to sales in our primary of) Tj ET Q q 0 0 0 rg BT 508.05 680.10 Td (fering and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (payments to our dealer manager and our advisor for reimbursement of certain or) Tj ET Q q 0 0 0 rg BT 370.31 668.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 462.60 668.10 Td (fering expenses related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (both to the primary of) Tj ET Q q 0 0 0 rg BT 137.08 656.10 Td (fering and the dividend reinvestment plan. During our acquisition and development stage, we expect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (continue to make payments to our advisor in connection with the selection and origination or purchase of investments, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (management of our assets and costs incurred by our advisor in providing services to us as well as for any dispositions of assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (\(including the discounted payof) Tj ET Q q 0 0 0 rg BT 176.23 620.10 Td (f of non-performing loans\). In addition, an af) Tj ET Q q 0 0 0 rg BT 356.28 620.10 Td (filiate of our advisor) Tj ET Q q 0 0 0 rg BT 437.80 620.10 Td (, KBS Management Group, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (was formed to provide property management services with respect to certain properties owned by KBS-advised companies. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (the future, we may engage KBS Management Group with respect to one or more of our properties to provide property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (management services. ) Tj ET Q q 0 0 0 rg BT 142.62 584.10 Td (W) Tj ET Q q 0 0 0 rg BT 151.65 584.10 Td (ith respect to any such properties, we would expect to pay KBS Management Group a monthly fee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (equal to a percentage of the rent \(to be determined on a property by property basis, consistent with current market rates\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 554.10 Td (The advisory agreement has a one-year term but may be renewed for an unlimited number of successive one-year periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (upon the mutual consent of our advisor and our conflicts committee.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 524.10 Td (Among the fees payable to our advisor is an asset management fee. ) Tj ET Q q 0 0 0 rg BT 343.12 524.10 Td (W) Tj ET Q q 0 0 0 rg BT 352.16 524.10 Td (ith respect to investments in loans and any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (investments other than real property) Tj ET Q q 0 0 0 rg BT 193.25 512.10 Td (, the asset management fee is a monthly fee calculated, each month, as one-twelfth of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (0.75% of the lesser of \(i\) the amount actually paid or allocated to acquire or fund the loan or other investment, inclusive of fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (and expenses related thereto and the amount of any debt associated with or used to acquire or fund such investment and \(ii\) the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (outstanding principal amount of such loan or other investment, plus the fees and expenses related to the acquisition or funding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (of such investment, as of the time of calculation. ) Tj ET Q q 0 0 0 rg BT 246.21 464.10 Td (W) Tj ET Q q 0 0 0 rg BT 255.25 464.10 Td (ith respect to investments in real property) Tj ET Q q 0 0 0 rg BT 420.66 464.10 Td (, the asset management fee is a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (monthly fee equal to one-twelfth of 0.75% of the sum of the amount paid or allocated to acquire the investment, plus the cost of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (any subsequent development, construction or improvements to the property) Tj ET Q q 0 0 0 rg BT 350.73 440.10 Td (, and inclusive of fees and expenses related thereto ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (and the amount of any debt associated with or used to acquire such investment. In the case of investments made through joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (ventures, the asset management fee will be determined based on our proportionate share of the underlying investment, inclusive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (of our proportionate share of any fees and expenses related thereto.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (Contractual Commitments and Contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 368.10 Td (The following is a summary of our contractual obligations as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.94 368.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.77 368.10 Td ( \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 313.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 313.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 313.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.50 313.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.50 313.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 313.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.50 313.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.50 313.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 313.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 313.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.50 313.60 57.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318.5 336.6 m 379.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 336.6 m 383.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 336.6 m 440.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440.5 336.6 m 444.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 336.6 m 501.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 336.6 m 505.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 336.6 m 562.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 313.6 m 250.5 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 313.6 m 314.5 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318.5 336.6 m 379.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318.5 313.6 m 379.5 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 336.6 m 440.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 313.6 m 440.5 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 336.6 m 501.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 313.6 m 501.5 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 336.6 m 562.5 336.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 313.6 m 562.5 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318.5 313.6 m 379.5 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 313.6 m 440.5 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 313.6 m 501.5 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 313.6 m 562.5 313.6 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 336.25 341.05 Td (Payments Due During the ) Tj ET Q q 0 0 0 rg BT 437.58 341.05 Td (Y) Tj ET Q q 0 0 0 rg BT 443.41 341.05 Td (ears Ending December) Tj ET Q q 0 0 0 rg BT 530.32 341.05 Td ( 31,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 103.35 318.05 Td (Contractual Obligations) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.15 318.05 Td (T) Tj ET Q q 0 0 0 rg BT 279.33 318.05 Td (otal) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 322.20 327.05 Td (Remainder) Tj ET Q q 0 0 0 rg BT 365.03 327.05 Td ( of ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 339.50 318.05 Td (2018) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 392.00 318.05 Td (2019-2020) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 453.00 318.05 Td (2021-2022) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 512.90 318.05 Td (Ther) Tj ET Q q 0 0 0 rg BT 531.73 318.05 Td (eafter) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 303.06 Td (Outstanding debt obligations ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 159.24 307.14 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 257.00 303.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.75 303.06 Td (776,818) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 321.00 303.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.75 303.06 Td (103,416) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.00 303.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 407.75 303.06 Td (252,092) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.00 303.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 468.75 303.06 Td (362,843) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 508.00 303.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 303.06 Td (58,467) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 288.06 Td (Interest payments on outstanding debt obligations ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 234.47 292.14 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 286.25 288.06 Td (77,637) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 351.25 288.06 Td (15,299) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.25 288.06 Td (44,294) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.25 288.06 Td (14,905) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 288.06 Td (3,139) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 272.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 50.00 263.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.06 259.50 Td ( ) Tj ET Q q 0 0 0 rg BT 57.62 259.50 Td (Amounts include principal payments only) Tj ET Q q 0 0 0 rg BT 191.30 259.50 Td (. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 50.00 250.52 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.06 246.90 Td ( Projected interest payments are based on the outstanding principal amounts, maturity dates, foreign currency rates and interest rates in ef) Tj ET Q q 0 0 0 rg BT 495.33 246.90 Td (fect at ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 517.09 246.90 Td (June 30, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 50.00 237.30 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 66.00 237.30 Td (. ) Tj ET Q q 0 0 0 rg BT 69.86 237.30 Td (W) Tj ET Q q 0 0 0 rg BT 76.77 237.30 Td (e incurred interest expense of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 172.95 237.30 Td ($14.0 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 216.06 237.30 Td (, excluding amortization of deferred financing costs of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.22 237.30 Td ($1.7 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.33 237.30 Td ( and including interest capitalized of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 50.00 227.70 Td ($1.3 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 89.11 227.70 Td (, for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.21 227.70 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 125.55 227.70 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 174.21 227.70 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 218.88 227.70 Td (.) Tj ET Q endstream endobj 79 0 obj <>] /Rotate 0 /Contents 80 0 R>> endobj 80 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 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 31.60 Td (38) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 704.25 Td (Participation Fee Liability) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 689.25 Td (Pursuant to the advisory agreement currently in ef) Tj ET Q q 0 0 0 rg BT 272.53 689.25 Td (fect with our advisor) Tj ET Q q 0 0 0 rg BT 355.17 689.25 Td (, our advisor is due a subordinated participation in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 677.25 Td (our net cash flows \(the “Incentive Fee”\) if, after the stockholders have received, together as a collective group, aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 665.25 Td (distributions \(including distributions that may constitute a return of capital for federal income tax purposes\) suf) Tj ET Q q 0 0 0 rg BT 494.99 665.25 Td (ficient to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 653.25 Td (provide \(i\) a return of their net invested capital, or the amount calculated by multiplying the total number of shares purchased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 641.25 Td (by stockholders by the issue price, reduced by any amounts to repurchase shares pursuant to the share redemption program, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 629.25 Td (\(ii\) a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.66 629.25 Td (7.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.49 629.25 Td ( per year cumulative, noncompounded return on such net invested capital, our advisor is entitled to receive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.51 629.25 Td (15.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.34 629.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 617.25 Td (our net cash flows, whether from continuing operations, net sale proceeds or otherwise. Net sales proceeds means the net cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 605.25 Td (proceeds we realized after deduction of all expenses incurred in connection with a sale, including disposition fees paid to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 593.25 Td (advisor) Tj ET Q q 0 0 0 rg BT 78.89 593.25 Td (. ) Tj ET Q q 0 0 0 rg BT 83.71 593.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.75 593.25 Td (7.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.58 593.25 Td ( per year cumulative, noncompounded return on net invested capital is calculated on a daily basis. In making ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 581.25 Td (this calculation, the net invested capital is reduced to the extent distributions in excess of a cumulative, noncompounded, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 569.25 Td (annual return of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.36 569.25 Td (7.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.19 569.25 Td ( are paid \(from whatever source\), except to the extent such distributions would be required to supplement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 557.25 Td (prior distributions paid in order to achieve a cumulative, noncompounded, annual return of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.73 557.25 Td (7.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.56 557.25 Td ( \(invested capital is only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 545.25 Td (reduced as described in this sentence; it is not reduced simply because a distribution constitutes a return of capital for federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 533.25 Td (income tax purposes\). ) Tj ET Q q 0 0 0 rg BT 140.35 533.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.40 533.25 Td (7.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.23 533.25 Td ( per year cumulative, noncompounded return is not based on the return provided to any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 521.25 Td (individual stockholder) Tj ET Q q 0 0 0 rg BT 139.16 521.25 Td (. ) Tj ET Q q 0 0 0 rg BT 143.60 521.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 192.94 521.25 Td (, it is not necessary for each of the stockholders to have received any minimum return in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 509.25 Td (order for our advisor to participate in our net cash flows. In fact, if our advisor is entitled to participate in our net cash flows, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 497.25 Td (the returns of the stockholders will dif) Tj ET Q q 0 0 0 rg BT 202.56 497.25 Td (fer) Tj ET Q q 0 0 0 rg BT 213.26 497.25 Td (, and some may be less than a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.62 497.25 Td (7.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.45 497.25 Td ( per year cumulative, noncompounded return. ) Tj ET Q q 0 0 0 rg BT 540.21 497.25 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 485.25 Td (fee is payable only if we are not listed on an exchange. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 467.25 Td (On ) Tj ET Q q 0 0 0 rg BT 86.67 467.25 Td (April 4, 2018, our stockholders approved the acceleration of the payment of such incentive compensation, subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 455.25 Td (certain conditions. Such accelerated payment would require approval by a special committee of our board of directors in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 443.25 Td (connection with our anticipated conversion into a net asset value REIT) Tj ET Q q 0 0 0 rg BT 332.50 443.25 Td (. Our advisor estimated the fair value of this liability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 431.25 Td (be as much as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.32 431.25 Td ($34 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.71 431.25 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.87 431.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.70 431.25 Td (, based on a hypothetical liquidation of the assets and liabilities at their estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 419.25 Td (fair values, after considering the impact of any potential closing costs and fees related to the disposition of real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 407.25 Td (properties. ) Tj ET Q q 0 0 0 rg BT 94.80 407.25 Td (The fair value of the Incentive Fee liability as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.84 407.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.67 407.25 Td ( is based on the estimated fair values of our assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 395.25 Td (and liabilities as of that date and changes to the fair values of assets and liabilities could have a material impact to the Incentive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 383.25 Td (Fee calculation. ) Tj ET Q q 0 0 0 rg BT 115.63 383.25 Td (The Incentive Fee is not currently payable to our advisor) Tj ET Q q 0 0 0 rg BT 342.09 383.25 Td (, as it remains subject to further approval by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 371.25 Td (special committee and our conversion to a perpetual-life NA) Tj ET Q q 0 0 0 rg BT 290.84 371.25 Td (V) Tj ET Q q 0 0 0 rg BT 297.89 371.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 321.86 371.25 Td (, and there is no guarantee that it will ever be payable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 353.25 Td (Results of Operations) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 335.25 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 320.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 320.25 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 320.25 Td (, we owned 1) Tj ET Q q 0 0 0 rg BT 205.22 320.25 Td (1 of) Tj ET Q q 0 0 0 rg BT 220.87 320.25 Td (fice properties, one of) Tj ET Q q 0 0 0 rg BT 308.43 320.25 Td (fice campus consisting of nine of) Tj ET Q q 0 0 0 rg BT 440.72 320.25 Td (fice buildings, one of) Tj ET Q q 0 0 0 rg BT 525.52 320.25 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (portfolio consisting of four of) Tj ET Q q 0 0 0 rg BT 168.19 308.25 Td (fice buildings and 14 acres of undeveloped land, one of) Tj ET Q q 0 0 0 rg BT 389.61 308.25 Td (fice portfolio consisting of three of) Tj ET Q q 0 0 0 rg BT 529.11 308.25 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (properties, one of) Tj ET Q q 0 0 0 rg BT 119.57 296.25 Td (fice/flex/industrial portfolio consisting of 21 buildings, one retail property) Tj ET Q q 0 0 0 rg BT 415.25 296.25 Td (, two apartment properties, three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (investments in undeveloped land with approximately 1,100 developable acres, two investments in unconsolidated joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.25 Td (ventures, an investment in real estate debt securities and an investment in real estate equity securities. ) Tj ET Q q 0 0 0 rg BT 457.70 272.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.14 272.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.97 272.25 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.25 Td (owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.66 260.25 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.43 260.25 Td ( of) Tj ET Q q 0 0 0 rg BT 112.08 260.25 Td (fice properties \(of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.15 260.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.59 260.25 Td ( of) Tj ET Q q 0 0 0 rg BT 238.24 260.25 Td (fice property was held for sale\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.90 260.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.34 260.25 Td ( of) Tj ET Q q 0 0 0 rg BT 392.99 260.25 Td (fice portfolio consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.86 260.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.52 260.25 Td ( of) Tj ET Q q 0 0 0 rg BT 529.17 260.25 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.25 Td (buildings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.17 248.25 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.17 248.25 Td ( acres of undeveloped land, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.34 248.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.78 248.25 Td ( of) Tj ET Q q 0 0 0 rg BT 253.43 248.25 Td (fice/flex/industrial portfolio consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.17 248.25 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.17 248.25 Td ( buildings, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.90 248.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.34 248.25 Td ( retail property) Tj ET Q q 0 0 0 rg BT 549.11 248.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 236.25 Td ( apartment properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.47 236.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.45 236.25 Td ( investments in undeveloped land with approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.35 236.25 Td (1,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.85 236.25 Td ( developable acres, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.70 236.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.68 236.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.25 Td (investments in unconsolidated joint ventures, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.81 224.25 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.24 224.25 Td ( investment in real estate debt securities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.07 224.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.06 224.25 Td ( investments in real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.25 Td (equity securities. Our results of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.28 212.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.27 212.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.71 212.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.38 212.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.20 212.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.03 212.25 Td ( may not be indicative of those in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.25 Td (future periods due to acquisition and disposition activities. ) Tj ET Q q 0 0 0 rg BT 285.30 200.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 335.20 200.25 Td (, the occupancy in our properties has not been stabilized. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.94 188.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.77 188.25 Td (, our of) Tj ET Q q 0 0 0 rg BT 158.75 188.25 Td (fice and retail properties were collectively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.78 188.25 Td (77%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.11 188.25 Td ( occupied. However) Tj ET Q q 0 0 0 rg BT 427.95 188.25 Td (, due to the amount of near) Tj ET Q q 0 0 0 rg BT 535.22 188.25 Td (-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (lease expirations, we do not put significant emphasis on quarterly changes in occupancy \(positive or negative\) in the short run. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.25 Td (Our underwriting and valuations are generally more sensitive to “terminal values” that may be realized upon the disposition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (the assets in the portfolio and less sensitive to ongoing cash flows generated by the portfolio in the years leading up to an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.25 Td (eventual sale. ) Tj ET Q q 0 0 0 rg BT 106.24 140.25 Td (There are no guarantees that occupancies of our assets will increase, or that we will recognize a gain on the sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.25 Td (of our assets. In general, we expect that our income and expenses related to our portfolio will increase in future periods as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.25 Td (result of leasing additional space and acquiring additional assets but decrease due to disposition activity) Tj ET Q q 0 0 0 rg BT 463.74 116.25 Td (.) Tj ET Q endstream endobj 81 0 obj <>] /Rotate 0 /Contents 82 0 R>> endobj 82 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (39) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 72 702.7669921875 m 148.9482421875 702.7669921875 l s q 0 0 0 rg BT 72.00 704.10 Td (Comparison of the ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 148.9482421875 702.7669921875 m 169.1240234375 702.7669921875 l s q 0 0 0 rg BT 148.95 704.10 Td (thr) Tj ET Q q 0 0 0 rg BT 160.25 704.10 Td (ee) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 169.1240234375 702.7669921875 m 229.392578125 702.7669921875 l s q 0 0 0 rg BT 169.12 704.10 Td ( months ended ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 229.392578125 702.7669921875 m 285.76953125 702.7669921875 l s q 0 0 0 rg BT 229.39 704.10 Td (June 30, 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 702.7669921875 m 331.0380859375 702.7669921875 l s q 0 0 0 rg BT 285.77 704.10 Td ( versus the ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 331.0380859375 702.7669921875 m 351.2138671875 702.7669921875 l s q 0 0 0 rg BT 331.04 704.10 Td (thr) Tj ET Q q 0 0 0 rg BT 342.34 704.10 Td (ee) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 351.2138671875 702.7669921875 m 411.482421875 702.7669921875 l s q 0 0 0 rg BT 351.21 704.10 Td ( months ended ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 411.482421875 702.7669921875 m 467.859375 702.7669921875 l s q 0 0 0 rg BT 411.48 704.10 Td (June 30, 2017) Tj ET Q BT /F3 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 689.10 Td (The following table provides summary information about our results of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.75 689.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.74 689.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.56 689.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 677.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 677.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 677.10 Td ( \(dollar amounts in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 627.60 182.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.00 627.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.00 627.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 627.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 627.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 627.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 627.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 627.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 627.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 627.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 627.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 627.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 627.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 601.60 182.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.00 601.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.00 601.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 601.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 601.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 601.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 601.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 601.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 601.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 601.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 601.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 601.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 601.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 575.60 182.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.00 575.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.00 575.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 575.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 575.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 575.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 575.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 575.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 575.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 575.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 575.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 575.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 575.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 549.60 182.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.00 549.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.00 549.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 549.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 549.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 549.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 549.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 549.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 549.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 549.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 549.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 549.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 549.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 523.60 182.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.00 523.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.00 523.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 523.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 523.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 523.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 523.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 523.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 523.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 523.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 523.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 523.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 523.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 497.60 182.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.00 497.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.00 497.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 497.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 497.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 497.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 497.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 497.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 497.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 497.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 497.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 497.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 497.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 471.60 182.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.00 471.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.00 471.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 471.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 471.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 471.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 471.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 471.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 471.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 471.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 471.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 471.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 471.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 445.60 182.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.00 445.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.00 445.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 445.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 445.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 445.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 445.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 445.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 445.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 445.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 445.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 445.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 445.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 419.60 182.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.00 419.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 236.00 419.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 419.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 419.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 419.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 419.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 419.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 419.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 419.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 419.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 419.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 419.60 66.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236 642.6 m 281 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 642.6 m 285 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 642.6 m 330 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236 642.6 m 281 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236 627.6 m 281 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 642.6 m 285 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 642.6 m 330 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 627.6 m 330 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 627.6 m 379 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383 627.6 m 428 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 627.6 m 493 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 627.6 m 563 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236 627.6 m 281 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 627.6 m 330 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 627.6 m 563 627.6 l s BT /F1 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 52.50 646.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 246.10 654.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 259.29 654.83 Td (ee Months Ended ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 268.25 646.83 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.60 639.83 Td (Incr) Tj ET Q q 0 0 0 rg BT 356.19 639.83 Td (ease) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 338.05 631.83 Td (\(Decr) Tj ET Q q 0 0 0 rg BT 357.07 631.83 Td (ease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.15 639.83 Td (Per) Tj ET Q q 0 0 0 rg BT 398.07 639.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.85 631.83 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.95 655.68 Td ($ Change Due ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 435.65 647.68 Td (to ) Tj ET Q q 0 0 0 rg BT 443.87 647.68 Td (Acquisitions/ ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.30 639.68 Td (Originations/ ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.25 631.68 Td (Dispositions ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 480.60 635.31 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 501.15 655.68 Td ($ Change Due to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.60 647.68 Td (Investments Held ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.85 639.68 Td (Thr) Tj ET Q q 0 0 0 rg BT 522.04 639.68 Td (oughout ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.35 631.68 Td (Both Periods ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 549.57 635.31 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 52.50 631.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 250.00 631.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 299.00 631.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 618.85 Td (Rental income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 238.50 618.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.75 618.85 Td (18,915) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 287.50 618.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 618.85 Td (31,704) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.50 618.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 618.85 Td (\(12,789) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 618.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 618.85 Td (\(40) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 618.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 434.50 618.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.10 618.85 Td (\(12,889) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 618.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.50 618.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 618.85 Td (100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 605.85 Td (T) Tj ET Q q 0 0 0 rg BT 68.83 605.85 Td (enant reimbursements) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 605.85 Td (3,703) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.75 605.85 Td (6,456) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 605.85 Td (\(2,753) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 605.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 605.85 Td (\(43) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 605.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.10 605.85 Td (\(2,999) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 605.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 605.85 Td (246) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 592.85 Td (Other operating income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 265.80 592.85 Td (952) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.80 592.85 Td (987) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.10 592.85 Td (\(35) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 592.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.45 592.85 Td (\(4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 592.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.10 592.85 Td (\(33) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 592.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 553.10 592.85 Td (\(2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 592.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 579.85 Td (Interest income from real estate debt securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 265.80 579.85 Td (51) Tj ET Q q 0 0 0 rg BT 273.80 579.85 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.80 579.85 Td (601) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.10 579.85 Td (\(90) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 579.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 579.85 Td (\(15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 579.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.80 579.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 579.85 Td (\(90) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 579.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 566.85 Td (Dividend income from real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 566.85 Td (1,209) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.80 566.85 Td (489) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 566.85 Td (720) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.15 566.85 Td (147) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.75 566.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 566.85 Td (720) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 566.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 553.85 Td (Operating, maintenance, and management costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 553.85 Td (7,571) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 553.85 Td (1) Tj ET Q q 0 0 0 rg BT 308.75 553.85 Td (1,299) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 553.85 Td (\(3,728) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 553.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 553.85 Td (\(33) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 553.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.10 553.85 Td (\(3,826) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 553.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 553.85 Td (98) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 540.85 Td (Real estate taxes and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 540.85 Td (3,435) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.75 540.85 Td (5,415) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 540.85 Td (\(1,980) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 540.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 540.85 Td (\(37) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 540.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.10 540.85 Td (\(2,076) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 540.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 540.85 Td (96) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 527.85 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 156.32 527.85 Td (filiate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 527.85 Td (2,217) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.75 527.85 Td (2,856) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.10 527.85 Td (\(639) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 527.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 527.85 Td (\(22) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 527.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.10 527.85 Td (\(672) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 527.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 527.85 Td (33) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 514.85 Td (General and administrative expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 514.85 Td (2,250) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.75 514.85 Td (1,378) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 514.85 Td (872) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.15 514.85 Td (63) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.75 514.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.70 514.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 514.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 501.85 Td (Foreign currency transaction) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 156.46 501.85 Td ( \(gain\) loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 192.02 501.85 Td (, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.10 501.85 Td (\(10,1) Tj ET Q q 0 0 0 rg BT 269.76 501.85 Td (1) Tj ET Q q 0 0 0 rg BT 273.76 501.85 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 277.80 501.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.75 501.85 Td (2,426) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 501.85 Td (\(12,537) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 501.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.45 501.85 Td (\(517) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 501.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.70 501.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 501.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 488.85 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 488.85 Td (9,042) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 488.85 Td (15,307) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 488.85 Td (\(6,265) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 488.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 488.85 Td (\(41) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 488.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.10 488.85 Td (\(5,328) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 488.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 488.85 Td (\(937) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 488.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 475.85 Td (Interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 475.85 Td (7,819) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 475.85 Td (10,324) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 475.85 Td (\(2,505) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 475.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 475.85 Td (\(24) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 475.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.10 475.85 Td (\(2,936) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 475.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 475.85 Td (431) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 462.85 Td (Income from unconsolidated joint venture) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 265.80 462.85 Td (131) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.80 462.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 462.85 Td (131) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 414.70 462.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.80 462.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 462.85 Td (131) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 449.85 Td (Equity in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.05 449.85 Td (loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 108.50 449.85 Td ( of unconsolidated joint ventures) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.10 449.85 Td (\(2,373) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 277.80 449.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.10 449.85 Td (\(1,622) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 326.80 449.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.10 449.85 Td (\(751) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 449.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.15 449.85 Td (46) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.75 449.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.10 449.85 Td (\(851) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 449.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 449.85 Td (100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 436.85 Td (Other interest income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 265.80 436.85 Td (419) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.80 436.85 Td (171) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 436.85 Td (248) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.15 436.85 Td (145) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.75 436.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.70 436.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 436.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 423.85 Td (Unrealized gain on real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 423.85 Td (8,724) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.80 423.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.75 423.85 Td (8,724) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 414.70 423.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.80 423.85 Td (8,724) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 423.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 410.85 Td (Gain on sale of real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 269.80 410.85 Td (25) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 410.85 Td (34,028) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 410.85 Td (\(34,003) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 410.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.45 410.85 Td (\(100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 410.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.10 410.85 Td (\(34,003) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 410.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 410.85 Td (—) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 386.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 382.50 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 382.50 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.25 382.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.91 382.50 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 348.57 382.50 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.11 382.50 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.09 382.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.75 382.50 Td (June 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 513.42 382.50 Td ( related to real ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 372.90 Td (estate and real estate-related investments acquired, originated, repaid, disposed or deconsolidated on or after ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.59 372.90 Td (April) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 414.48 372.90 Td ( 1, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 424.48 372.90 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 440.48 372.90 Td (. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 363.93 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 360.30 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 360.30 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.25 360.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.91 360.30 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 348.57 360.30 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.11 360.30 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.09 360.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.75 360.30 Td (June 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 513.42 360.30 Td ( with respect ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 350.70 Td (to real estate and real estate-related investments owned by us during the entirety of both periods presented.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 326.70 Td (Rental income and tenant reimbursements decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.63 326.70 Td ($31.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.53 326.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.96 326.70 Td ($6.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.86 326.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 481.52 326.70 Td (, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.39 326.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.38 326.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.70 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 314.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 314.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.43 314.70 Td ($18.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.33 314.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.76 314.70 Td ($3.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.66 314.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 351.32 314.70 Td (, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.19 314.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.18 314.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.00 314.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.83 314.70 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.70 Td (primarily as a result of the sale of 1) Tj ET Q q 0 0 0 rg BT 190.75 302.70 Td (1 properties to a newly formed real estate investment trust that was listed on the Singapore ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.70 Td (Stock Exchange \(the “the Singapore Portfolio”\) and 50 Congress Street, partially of) Tj ET Q q 0 0 0 rg BT 384.23 290.70 Td (fset by properties acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.36 290.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.36 290.70 Td (. ) Tj ET Q q 0 0 0 rg BT 528.18 290.70 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.70 Td (occupancy of our of) Tj ET Q q 0 0 0 rg BT 129.56 278.70 Td (fice and retail properties, collectively) Tj ET Q q 0 0 0 rg BT 278.01 278.70 Td (, held throughout both periods decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.18 278.70 Td (78%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.51 278.70 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.67 278.70 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.70 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 266.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.28 266.70 Td (77%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.61 266.70 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.77 266.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.60 266.70 Td ( and the occupancy of our apartment properties, collectively) Tj ET Q q 0 0 0 rg BT 420.13 266.70 Td (, held throughout both periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.70 Td (decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.35 254.70 Td (96%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.68 254.70 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.84 254.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.67 254.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.45 254.70 Td (94%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.78 254.70 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.94 254.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.77 254.70 Td (. ) Tj ET Q q 0 0 0 rg BT 327.22 254.70 Td (Annualized base rent per square foot increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.70 Td ($19.27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 242.70 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.16 242.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.99 242.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.77 242.70 Td ($20.22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.27 242.70 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.43 242.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.26 242.70 Td ( related to properties \(excluding apartments\) held throughout both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.70 Td (periods. ) Tj ET Q q 0 0 0 rg BT 83.76 230.70 Td (W) Tj ET Q q 0 0 0 rg BT 92.40 230.70 Td (e expect rental income and tenant reimbursements to increase in future periods as a result of owning the properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.70 Td (acquired during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.03 218.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.03 218.70 Td ( for an entire period, leasing additional space and to the extent we acquire additional properties, but to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.70 Td (decrease to the extent we dispose of properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 188.70 Td (Dividend income from real estate equity securities increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.29 188.70 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.18 188.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.56 188.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.54 188.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.37 188.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.20 188.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.70 Td (to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.78 176.70 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.67 176.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.05 176.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.03 176.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.86 176.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.69 176.70 Td (, as a result of additional real estate equity securities acquired. ) Tj ET Q q 0 0 0 rg BT 527.24 176.70 Td (W) Tj ET Q q 0 0 0 rg BT 535.88 176.70 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.70 Td (expect dividend income from real estate equity securities to increase in future periods as a result of owning the real estate equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.70 Td (securities acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.97 152.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 152.70 Td ( for an entire period but to decrease to the extent we sell any of the securities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 134.70 Td (Property operating costs and real estate taxes and insurance decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.04 134.70 Td ($1) Tj ET Q q 0 0 0 rg BT 385.67 134.70 Td (1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.56 134.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.00 134.70 Td ($5.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.89 134.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 550.55 134.70 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.70 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 122.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.36 122.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.19 122.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.02 122.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.80 122.70 Td ($7.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.69 122.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.13 122.70 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.02 122.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 397.68 122.70 Td (, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.56 122.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.54 122.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.37 122.70 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 110.70 Td (, primarily as a result of the sale of the Singapore Portfolio and 50 Congress Street, partially of) Tj ET Q q 0 0 0 rg BT 448.40 110.70 Td (fset by real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.70 Td (investments made in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.21 98.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.21 98.70 Td (. ) Tj ET Q q 0 0 0 rg BT 159.03 98.70 Td (W) Tj ET Q q 0 0 0 rg BT 167.66 98.70 Td (e expect property operating costs and real estate taxes and insurance to increase in future periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.70 Td (as a result of owning real estate acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.27 86.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.27 86.70 Td ( for an entire period, future acquisitions of real estate, increasing occupancy of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.70 Td (our real estate assets and inflation, but to decrease to the extent we dispose of properties.) Tj ET Q endstream endobj 83 0 obj <>] /Rotate 0 /Contents 84 0 R>> endobj 84 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (Asset management fees decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.76 704.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.65 704.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.03 704.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.02 704.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.84 704.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.67 704.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.45 704.10 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.34 704.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 692.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.31 692.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.14 692.10 Td (, primarily as a result of the sale of the Singapore Portfolio and 50 Congress Street. ) Tj ET Q q 0 0 0 rg BT 520.89 692.10 Td (W) Tj ET Q q 0 0 0 rg BT 529.52 692.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (expect asset management fees to increase in future periods as a result of owning real estate investments acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.39 680.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.39 680.10 Td ( for an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (entire period, future acquisitions of real estate and capital expenditures, but to decrease to the extent we dispose of properties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (All asset management fees incurred as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.38 656.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.21 656.10 Td ( have been paid.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 638.10 Td (General and administrative expenses increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.58 638.10 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.47 638.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.85 638.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.84 638.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.66 638.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.49 638.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.27 638.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 562.16 638.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 626.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.36 626.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.19 626.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.02 626.10 Td (, primarily due to increased legal expenses and printing and marketing expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (incurred to complete certain proxy campaigns. ) Tj ET Q q 0 0 0 rg BT 237.86 614.10 Td (W) Tj ET Q q 0 0 0 rg BT 246.50 614.10 Td (e expect general and administrative expenses to fluctuate based on investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (and disposition activity) Tj ET Q q 0 0 0 rg BT 142.18 602.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 584.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 584.10 Td (e recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.94 584.10 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.83 584.10 Td ( of foreign currency transaction loss, net, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.04 584.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.03 584.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.85 584.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.68 584.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.12 584.10 Td ($10.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 572.10 Td ( of foreign currency transaction gain, net, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.26 572.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.24 572.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.07 572.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.90 572.10 Td ( related to the issuance of Series ) Tj ET Q q 0 0 0 rg BT 542.69 572.10 Td (A) Tj ET Q q 0 0 0 rg BT 549.36 572.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (debentures in Israel. ) Tj ET Q q 0 0 0 rg BT 132.62 560.10 Td (These debentures are denominated in Israeli new Shekels and we expect to recognize foreign transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (gains and losses based on changes in foreign currency exchange rates, but expect our exposure to be limited to the extent that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (we have entered into foreign currency options and foreign currency collars. ) Tj ET Q q 0 0 0 rg BT 352.71 536.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.16 536.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.99 536.10 Td (, we had entered into one ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (foreign currency option, a USD put/ILS call option, to hedge against a change in the exchange rate of the Israeli new Shekel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (versus the U.S. Dollar) Tj ET Q q 0 0 0 rg BT 137.55 512.10 Td (. ) Tj ET Q q 0 0 0 rg BT 142.37 512.10 Td (The foreign currency option expired in ) Tj ET Q q 0 0 0 rg BT 299.53 512.10 Td (August 2018 and had an aggregate U.S. Dollar notional amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (of $285.4 million. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.33 500.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.32 500.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.14 500.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.97 500.10 Td (, the foreign currency transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.91 500.10 Td (gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.13 500.10 Td (, net, consists of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.35 500.10 Td ($12.3 ) 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 ( of foreign currency transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.95 488.10 Td (gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.16 488.10 Td (, of) Tj ET Q q 0 0 0 rg BT 237.31 488.10 Td (fset by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.69 488.10 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.58 488.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.08 488.10 Td (loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.64 488.10 Td ( related to our foreign currency option.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 470.10 Td (Depreciation and amortization decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.97 470.10 Td ($15.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.86 470.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.24 470.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.22 470.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.05 470.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.88 470.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.66 470.10 Td ($9.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.55 470.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 458.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.20 458.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.03 458.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.86 458.10 Td (, primarily as a result of the sale of the Singapore Portfolio and 50 Congress Street, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.47 446.10 Td (fset by real estate investments made in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.36 446.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.36 446.10 Td (. ) Tj ET Q q 0 0 0 rg BT 275.18 446.10 Td (W) Tj ET Q q 0 0 0 rg BT 283.82 446.10 Td (e expect depreciation and amortization to increase in future periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (as a result of owning real estate acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.27 434.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.27 434.10 Td ( for an entire period and future acquisitions of real estate properties, but to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (decrease as a result of amortization of tenant origination costs related to lease expirations and disposition of properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 404.10 Td (Interest expense decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.04 404.10 Td ($10.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.94 404.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.31 404.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.30 404.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.12 404.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.95 404.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.73 404.10 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.62 404.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.00 404.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.99 404.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 392.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 392.10 Td (, primarily as a result of the paydown of debt on disposed properties. Excluded from interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.26 380.10 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.15 380.10 Td ( of interest capitalized to our investments in undeveloped land during each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.16 380.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 380.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 368.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.77 368.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.77 368.10 Td (. Our interest expense in future periods will vary based on interest rate fluctuations, the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (interest capitalized and our level of future borrowings, which will depend on the availability and cost of debt financing and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (opportunity to acquire real estate and real estate-related investments meeting our investment objectives and will decrease to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (extent we dispose of properties and paydown debt.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 314.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 314.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 314.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.36 314.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.19 314.10 Td (, we received a distribution of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.09 314.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.98 314.10 Td ( related to our investment in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (NIP) Tj ET Q q 0 0 0 rg BT 65.24 302.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 89.51 302.10 Td (V) Tj ET Q q 0 0 0 rg BT 95.62 302.10 Td (enture. ) Tj ET Q q 0 0 0 rg BT 125.43 302.10 Td (W) Tj ET Q q 0 0 0 rg BT 134.07 302.10 Td (e recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.37 302.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.26 302.10 Td ( of income distributions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.96 302.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.86 302.10 Td ( of return of capital from the NIP) Tj ET Q q 0 0 0 rg BT 531.94 302.10 Td ( Joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 290.10 Td (enture. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.15 290.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.13 290.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.96 290.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.79 290.10 Td (, we did not receive any distributions related to our investment in the NIP) Tj ET Q q 0 0 0 rg BT 561.24 290.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (Joint ) Tj ET Q q 0 0 0 rg BT 71.27 278.10 Td (V) Tj ET Q q 0 0 0 rg BT 77.38 278.10 Td (enture.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 260.10 Td (Equity in loss of unconsolidated joint ventures increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.78 260.10 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.67 260.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.05 260.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.04 260.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.86 260.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.69 260.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 248.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.77 248.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.75 248.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.58 248.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.41 248.10 Td (, primarily as a result of the equity in loss related to 353 Sacramento, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (which has been accounted for as an unconsolidated joint venture under the equity method of accounting beginning July 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 218.10 Td (Other interest income increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.33 218.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.22 218.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.60 218.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.58 218.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.41 218.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.24 218.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.02 218.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.91 218.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.28 218.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.27 218.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 206.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 206.10 Td (, primarily as a result of increased dividends from our investment in money market mutual funds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (using the net cash proceeds from the sale of properties in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.71 194.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.71 194.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 176.10 Td (Unrealized gain on real estate equity securities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.14 176.10 Td ($8.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.03 176.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.86 176.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.84 176.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.67 176.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.50 176.10 Td (, primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (as a result of increases in share prices of our investments in real estate equity securities and the adoption of ) Tj ET Q q 0 0 0 rg BT 479.36 164.10 Td (ASU No. 2016-01.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 146.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 146.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 146.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.36 146.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.19 146.10 Td (, we sold one of) Tj ET Q q 0 0 0 rg BT 317.61 146.10 Td (fice property and 102 acres of undeveloped land that resulted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (in a gain on sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.81 134.10 Td ($34.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.70 134.10 Td (. ) Tj ET Q q 0 0 0 rg BT 186.52 134.10 Td (W) Tj ET Q q 0 0 0 rg BT 195.16 134.10 Td (e recognized a gain on sale of $29.4 million related to the disposition of the of) Tj ET Q q 0 0 0 rg BT 507.67 134.10 Td (fice property) Tj ET Q q 0 0 0 rg BT 558.39 134.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 122.10 Td (e recognized a gain on sale related to the disposition of the undeveloped land based on the percentage of completion method ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (due to our continuing development obligations to the purchasers. ) Tj ET Q q 0 0 0 rg BT 311.49 110.10 Td (W) Tj ET Q q 0 0 0 rg BT 320.13 110.10 Td (e recognized a gain on sale of $4.6 million related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (land sale, which is net of deferred profit of $3.3 million. In addition, we deferred $1.7 million related to proceeds received from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (the purchasers and another developer for the value of land that was contributed to a master association that we consolidated. ) Tj ET Q endstream endobj 85 0 obj <>] /Rotate 0 /Contents 86 0 R>> endobj 86 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (41) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 72 702.7669921875 m 148.9482421875 702.7669921875 l s q 0 0 0 rg BT 72.00 704.10 Td (Comparison of the ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 148.9482421875 702.7669921875 m 160.056640625 702.7669921875 l s q 0 0 0 rg BT 148.95 704.10 Td (six) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 160.056640625 702.7669921875 m 220.3251953125 702.7669921875 l s q 0 0 0 rg BT 160.06 704.10 Td ( months ended ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 220.3251953125 702.7669921875 m 276.7021484375 702.7669921875 l s q 0 0 0 rg BT 220.33 704.10 Td (June 30, 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 BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 689.10 Td (The following table provides summary information about our results of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.75 689.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.42 689.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.25 689.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.08 689.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 677.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 677.10 Td ( \(dollar amounts in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 627.60 174.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 627.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.00 627.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.00 627.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 627.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 627.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 627.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 627.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 627.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 627.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 627.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 627.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 627.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 601.60 174.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 601.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.00 601.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.00 601.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 601.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 601.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 601.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 601.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 601.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 601.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 601.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 601.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 601.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 575.60 174.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 575.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.00 575.60 49.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.00 575.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 575.60 49.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 575.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 575.60 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 575.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 575.60 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 575.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 575.60 61.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 575.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 575.60 66.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 541.60 174.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 541.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.00 541.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.00 541.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 541.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 541.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 541.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 541.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 541.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 541.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 541.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 541.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 541.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 515.60 174.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 515.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.00 515.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.00 515.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 515.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 515.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 515.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 515.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 515.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 515.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 515.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 515.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 515.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 489.60 174.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 489.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.00 489.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.00 489.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 489.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 489.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 489.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 489.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 489.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 489.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 489.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 489.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 489.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 463.60 174.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 463.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.00 463.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.00 463.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 463.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 463.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 463.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 463.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 463.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 463.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 463.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 463.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 463.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 437.60 174.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 437.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.00 437.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.00 437.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 437.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 437.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 437.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 437.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 437.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 437.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 437.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 437.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 437.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 411.60 174.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 411.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.00 411.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.00 411.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 411.60 49.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 411.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 411.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 411.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 411.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 411.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 411.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 411.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 411.60 66.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228 642.6 m 277 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 277 642.6 m 281 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 642.6 m 330 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228 642.6 m 277 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228 627.6 m 277 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 277 642.6 m 281 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 642.6 m 330 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 627.6 m 330 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 627.6 m 379 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383 627.6 m 428 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 627.6 m 493 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 627.6 m 563 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228 627.6 m 277 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 627.6 m 330 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 627.6 m 563 627.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 646.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 231.70 646.83 Td (Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.60 639.83 Td (Incr) Tj ET Q q 0 0 0 rg BT 356.19 639.83 Td (ease) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 338.05 631.83 Td (\(Decr) Tj ET Q q 0 0 0 rg BT 357.07 631.83 Td (ease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.15 639.83 Td (Per) Tj ET Q q 0 0 0 rg BT 398.07 639.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.85 631.83 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.95 655.68 Td ($ Change Due ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 435.65 647.68 Td (to ) Tj ET Q q 0 0 0 rg BT 443.87 647.68 Td (Acquisitions/ ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.30 639.68 Td (Originations/ ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.25 631.68 Td (Dispositions ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 480.60 635.31 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 501.15 655.68 Td ($ Change Due to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.60 647.68 Td (Investments Held ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.85 639.68 Td (Thr) Tj ET Q q 0 0 0 rg BT 522.04 639.68 Td (oughout ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.35 631.68 Td (Both Periods ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 549.57 635.31 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 631.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 244.00 631.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.00 631.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 618.85 Td (Rental income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 230.50 618.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.75 618.85 Td (34,096) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 283.50 618.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 618.85 Td (62,350) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.50 618.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 618.85 Td (\(28,254) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 618.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 618.85 Td (\(45) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 618.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 434.50 618.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.10 618.85 Td (\(29,044) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 618.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 499.50 618.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 618.85 Td (790) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 605.85 Td (T) Tj ET Q q 0 0 0 rg BT 68.83 605.85 Td (enant reimbursements) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.75 605.85 Td (6,384) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 605.85 Td (12,094) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 605.85 Td (\(5,710) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 605.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 605.85 Td (\(47) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 605.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.10 605.85 Td (\(6,227) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 605.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 605.85 Td (517) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 592.85 Td (Other operating income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.75 592.85 Td (1,173) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.75 592.85 Td (2,540) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 592.85 Td (\(1,367) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 592.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 592.85 Td (\(54) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 592.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.10 592.85 Td (\(823) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 592.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 592.85 Td (\(544) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 592.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 579.85 Td (Interest income from real estate debt securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.75 579.85 Td (1,012) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.80 579.85 Td (760) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 579.85 Td (252) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.15 579.85 Td (33) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.75 579.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.80 579.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 579.85 Td (252) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 566.85 Td (Dividend income from real estate equity ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 558.85 Td (securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.75 558.85 Td (2,260) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.80 558.85 Td (489) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.75 558.85 Td (1,771) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.15 558.85 Td (362) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.75 558.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 471.80 558.85 Td (1,771) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 558.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 545.85 Td (Operating, maintenance, and management costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.75 545.85 Td (13,058) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 545.85 Td (22,207) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 545.85 Td (\(9,149) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 545.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 545.85 Td (\(41) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 545.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.10 545.85 Td (\(9,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 545.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 545.85 Td (651) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 532.85 Td (Real estate taxes and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.75 532.85 Td (5,773) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 532.85 Td (10,152) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 532.85 Td (\(4,379) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 532.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 532.85 Td (\(43) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 532.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.10 532.85 Td (\(4,696) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 532.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 532.85 Td (317) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 519.85 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 156.32 519.85 Td (filiate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.75 519.85 Td (4,043) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.75 519.85 Td (5,603) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 519.85 Td (\(1,560) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 519.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 519.85 Td (\(28) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 519.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.10 519.85 Td (\(1,599) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 519.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 519.85 Td (39) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 506.85 Td (General and administrative expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.75 506.85 Td (4,302) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.75 506.85 Td (3,123) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.75 506.85 Td (1,179) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.15 506.85 Td (38) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.75 506.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.70 506.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 506.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 493.85 Td (Foreign currency transaction) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 156.46 493.85 Td ( \(gain\) loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 192.02 493.85 Td (, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.10 493.85 Td (\(9,1) Tj ET Q q 0 0 0 rg BT 265.76 493.85 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.80 493.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.75 493.85 Td (7,097) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 493.85 Td (\(16,21) Tj ET Q q 0 0 0 rg BT 371.76 493.85 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 493.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.45 493.85 Td (\(228) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 493.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.70 493.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 493.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 480.85 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.75 480.85 Td (16,307) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 480.85 Td (29,908) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 480.85 Td (\(13,601) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 480.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 480.85 Td (\(45) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 480.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.10 480.85 Td (\(12,837) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 480.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 480.85 Td (\(764) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 480.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 467.85 Td (Interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.75 467.85 Td (14,410) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 467.85 Td (19,709) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 467.85 Td (\(5,299) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 467.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 467.85 Td (\(27) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 467.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.10 467.85 Td (\(6,097) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 467.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 467.85 Td (798) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 454.85 Td (Income from unconsolidated joint venture) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 261.80 454.85 Td (185) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.75 454.85 Td (1,869) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 454.85 Td (\(1,684) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 454.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 454.85 Td (\(90) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 454.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.80 454.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 454.85 Td (\(1,684) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 454.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 441.85 Td (Equity in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.05 441.85 Td (loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 108.50 441.85 Td ( of unconsolidated joint ventures) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.10 441.85 Td (\(4,751) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.80 441.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 306.10 441.85 Td (\(1,776) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 326.80 441.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 441.85 Td (\(2,975) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 441.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.15 441.85 Td (168) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.75 441.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.10 441.85 Td (\(1,649) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 441.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 441.85 Td (\(1,326) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 441.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 428.85 Td (Other interest income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.75 428.85 Td (1,349) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.80 428.85 Td (196) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.75 428.85 Td (1,153) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.15 428.85 Td (588) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.75 428.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.70 428.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 428.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 415.85 Td (Unrealized loss on real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.10 415.85 Td (\(7,287) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.80 415.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.80 415.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 415.85 Td (\(7,287) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 415.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 414.70 415.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.10 415.85 Td (\(7,287) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 415.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 415.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 402.85 Td (Gain on sale of real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 261.80 402.85 Td (649) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 402.85 Td (34,028) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 402.85 Td (\(33,379) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.80 402.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.45 402.85 Td (\(98) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.15 402.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.10 402.85 Td (\(33,379) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 402.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 402.85 Td (—) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 378.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 374.50 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 374.50 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.59 374.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 297.25 374.50 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.92 374.50 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.45 374.50 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.79 374.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.45 374.50 Td (June 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.11 374.50 Td ( related to real ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 364.90 Td (estate and real estate-related investments acquired, originated, repaid, disposed or deconsolidated on or after ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.03 364.90 Td (January) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 422.91 364.90 Td ( 1, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 432.91 364.90 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 448.91 364.90 Td (. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 355.93 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 352.30 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 352.30 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.59 352.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 297.25 352.30 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.92 352.30 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.45 352.30 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.79 352.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.45 352.30 Td (June 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.11 352.30 Td ( with respect to ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 342.70 Td (real estate and real estate-related investments owned by us during the entirety of both periods presented.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 318.70 Td (Rental income and tenant reimbursements decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.63 318.70 Td ($62.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.53 318.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.96 318.70 Td ($12.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.86 318.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 486.52 318.70 Td (, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.39 318.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.06 318.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.70 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 306.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 306.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.43 306.70 Td ($34.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.33 306.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.76 306.70 Td ($6.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.66 306.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 351.32 306.70 Td (, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.19 306.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.86 306.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.69 306.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.52 306.70 Td (, primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.70 Td (as a result of the sale of the Singapore Portfolio and 50 Congress Street, partially of) Tj ET Q q 0 0 0 rg BT 383.68 294.70 Td (fset by properties acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.81 294.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.81 294.70 Td (. ) Tj ET Q q 0 0 0 rg BT 527.63 294.70 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.70 Td (occupancy of our of) Tj ET Q q 0 0 0 rg BT 129.56 282.70 Td (fice and retail properties, collectively) Tj ET Q q 0 0 0 rg BT 278.01 282.70 Td (, held throughout both periods decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.18 282.70 Td (80%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.51 282.70 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.67 282.70 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.70 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 270.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.28 270.70 Td (78%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.61 270.70 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.77 270.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.60 270.70 Td ( and the occupancy of our apartment properties, collectively) Tj ET Q q 0 0 0 rg BT 420.13 270.70 Td (, held throughout both periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.70 Td (decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.35 258.70 Td (96%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.68 258.70 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.84 258.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.67 258.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.45 258.70 Td (94%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.78 258.70 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.94 258.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.77 258.70 Td (. ) Tj ET Q q 0 0 0 rg BT 327.22 258.70 Td (Annualized base rent per square foot increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.70 Td ($18.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 246.70 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.16 246.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.99 246.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.77 246.70 Td ($18.91) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.27 246.70 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.43 246.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.26 246.70 Td ( related to properties \(excluding apartments\) held throughout both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.70 Td (periods. ) Tj ET Q q 0 0 0 rg BT 83.76 234.70 Td (W) Tj ET Q q 0 0 0 rg BT 92.40 234.70 Td (e expect rental income and tenant reimbursements to increase in future periods as a result of owning the properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.70 Td (acquired during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.03 222.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.03 222.70 Td ( for an entire period, leasing additional space and to the extent we acquire additional properties, but to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.70 Td (decrease to the extent we dispose of properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 192.70 Td (Other operating income decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.32 192.70 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.21 192.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.59 192.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.26 192.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.08 192.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.91 192.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.69 192.70 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.58 192.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.96 192.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.63 192.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.70 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 180.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 180.70 Td ( primarily as a result of the sale of the Singapore Portfolio and 50 Congress Street and an award of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.70 Td ($0.5 million for legal fees incurred at the Burbank Collection during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.26 168.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.93 168.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.75 168.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.58 168.70 Td (. ) Tj ET Q q 0 0 0 rg BT 473.40 168.70 Td (W) Tj ET Q q 0 0 0 rg BT 482.04 168.70 Td (e expect other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.70 Td (operating income to increase in future periods as a result of owning the properties acquired during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.37 156.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.37 156.70 Td ( for an entire period, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.70 Td (leasing additional space and increases in parking rates and to the extent we acquire additional properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 126.70 Td (Interest income from real estate debt securities increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.28 126.70 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.17 126.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.55 126.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.22 126.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.04 126.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.87 126.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.65 126.70 Td ($1.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.70 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 114.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.77 114.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.44 114.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.26 114.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.09 114.70 Td (, as a result of additional real estate debt securities acquired. ) Tj ET Q q 0 0 0 rg BT 480.87 114.70 Td (W) Tj ET Q q 0 0 0 rg BT 489.51 114.70 Td (e expect interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.70 Td (income from real estate debt securities to remain consistent, but to decrease upon principal repayment or maturity) Tj ET Q q 0 0 0 rg BT 503.42 102.70 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 84.70 Td (Dividend income from real estate equity securities increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.29 84.70 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.18 84.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.56 84.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.23 84.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.05 84.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.88 84.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 72.70 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 72.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.77 72.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.44 72.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.26 72.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.09 72.70 Td (, as a result of additional real estate equity securities acquired. ) Tj ET Q q 0 0 0 rg BT 508.65 72.70 Td (W) Tj ET Q q 0 0 0 rg BT 517.29 72.70 Td (e expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 60.70 Td (dividend income from real estate equity securities to increase in future periods as a result of owning the real estate equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 48.70 Td (securities acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.97 48.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 48.70 Td ( for an entire period but to decrease to the extent we sell any of the securities.) Tj ET Q endstream endobj 87 0 obj <>] /Rotate 0 /Contents 88 0 R>> endobj 88 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (Property operating costs and real estate taxes and insurance decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.04 704.10 Td ($22.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.93 704.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.37 704.10 Td ($10.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.26 704.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 555.93 704.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 692.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.05 692.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.87 692.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.70 692.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.48 692.10 Td ($13.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.37 692.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.81 692.10 Td ($5.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.70 692.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 394.36 692.10 Td (, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.24 692.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.91 692.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.74 692.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.57 692.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (primarily as a result of the sale of the Singapore Portfolio and 50 Congress Street, partially of) Tj ET Q q 0 0 0 rg BT 423.40 680.10 Td (fset by real estate investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (made in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.93 668.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.93 668.10 Td (. ) Tj ET Q q 0 0 0 rg BT 108.75 668.10 Td (W) Tj ET Q q 0 0 0 rg BT 117.39 668.10 Td (e expect property operating costs and real estate taxes and insurance to increase in future periods as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (owning real estate acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.95 656.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.95 656.10 Td ( for an entire period, future acquisitions of real estate, increasing occupancy of our real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (estate assets and inflation, but to decrease to the extent we dispose of properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 626.10 Td (Asset management fees decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.76 626.10 Td ($5.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.65 626.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.03 626.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.70 626.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.53 626.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.36 626.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.13 626.10 Td ($4.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.03 626.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.40 626.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.07 626.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 614.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 614.10 Td (, primarily as a result of the sale of the Singapore Portfolio and 50 Congress Street. ) Tj ET Q q 0 0 0 rg BT 498.40 614.10 Td (W) Tj ET Q q 0 0 0 rg BT 507.04 614.10 Td (e expect asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (management fees to increase in future periods as a result of owning real estate investments acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.85 602.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.85 602.10 Td ( for an entire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (period, future acquisitions of real estate and capital expenditures, but to decrease to the extent we dispose of properties. ) Tj ET Q q 0 0 0 rg BT 528.78 590.10 Td (All ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (asset management fees incurred as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.10 578.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.93 578.10 Td ( have been paid.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 560.10 Td (General and administrative expenses increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.58 560.10 Td ($3.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.47 560.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.85 560.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.52 560.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.35 560.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.18 560.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.95 560.10 Td ($4.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.85 560.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 548.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.05 548.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.87 548.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.70 548.10 Td (, primarily due to increased legal expenses and printing and marketing expenses incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (to complete certain proxy campaigns. ) Tj ET Q q 0 0 0 rg BT 202.04 536.10 Td (W) Tj ET Q q 0 0 0 rg BT 210.68 536.10 Td (e expect general and administrative expenses to fluctuate based on investment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (disposition activity) Tj ET Q q 0 0 0 rg BT 125.24 524.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 506.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 506.10 Td (e recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.94 506.10 Td ($7.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.83 506.10 Td ( of foreign currency transaction loss, net, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.54 506.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.21 506.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.04 506.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.87 506.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 506.10 Td ($9.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 494.10 Td ( of foreign currency transaction gain, net, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.26 494.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.93 494.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.75 494.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.58 494.10 Td ( related to the issuance of Series ) Tj ET Q q 0 0 0 rg BT 534.37 494.10 Td (A) Tj ET Q q 0 0 0 rg BT 541.04 494.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (debentures in Israel. ) Tj ET Q q 0 0 0 rg BT 132.62 482.10 Td (These debentures are denominated in Israeli new Shekels and we expect to recognize foreign transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (gains and losses based on changes in foreign currency exchange rates, but expect our exposure to be limited to the extent that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (we have entered into foreign currency options and foreign currency collars. ) Tj ET Q q 0 0 0 rg BT 352.71 458.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.16 458.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.99 458.10 Td (, we had entered into one ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (foreign currency option, a USD put/ILS call option, to hedge against a change in the exchange rate of the Israeli new Shekel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (versus the U.S. Dollar) Tj ET Q q 0 0 0 rg BT 137.55 434.10 Td (. ) Tj ET Q q 0 0 0 rg BT 142.37 434.10 Td (The foreign currency option expired in ) Tj ET Q q 0 0 0 rg BT 299.53 434.10 Td (August 2018 and had an aggregate U.S. Dollar notional amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (of $285.4 million. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.33 422.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.00 422.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.83 422.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.66 422.10 Td (, the foreign currency transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.60 422.10 Td (gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.81 422.10 Td (, net, consists of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.03 422.10 Td ($13.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.92 422.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (of foreign currency transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.55 410.10 Td (gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.77 410.10 Td (, of) Tj ET Q q 0 0 0 rg BT 205.92 410.10 Td (fset by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.30 410.10 Td ($4.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.19 410.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.69 410.10 Td (loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.25 410.10 Td ( related to our foreign currency option.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 392.10 Td (Depreciation and amortization decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.97 392.10 Td ($29.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.86 392.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.24 392.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.91 392.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.73 392.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.56 392.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.34 392.10 Td ($16.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.23 392.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 380.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.89 380.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.71 380.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.54 380.10 Td (, primarily as a result of the sale of the Singapore Portfolio and 50 Congress Street, partially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 368.10 Td (fset by real estate investments made in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.54 368.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.54 368.10 Td (. ) Tj ET Q q 0 0 0 rg BT 239.36 368.10 Td (W) Tj ET Q q 0 0 0 rg BT 248.00 368.10 Td (e expect depreciation and amortization to increase in future periods as a result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (of owning real estate acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.78 356.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.78 356.10 Td ( for an entire period and future acquisitions of real estate properties, but to decrease as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (result of amortization of tenant origination costs related to lease expirations and disposition of properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 326.10 Td (Interest expense decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.04 326.10 Td ($19.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.94 326.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.31 326.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.98 326.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.81 326.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.64 326.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.42 326.10 Td ($14.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.31 326.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.69 326.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.36 326.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 314.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 314.10 Td (, primarily as a result of the paydown of debt on disposed properties. Excluded from interest expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 302.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.83 302.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.72 302.10 Td ( of interest capitalized to our investments in undeveloped land during each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.73 302.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.40 302.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 290.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 290.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.15 290.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.15 290.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 223.81 290.10 Td (. Our interest expense in future periods will vary based on interest rate fluctuations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (the amount of interest capitalized and our level of future borrowings, which will depend on the availability and cost of debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (financing and the opportunity to acquire real estate and real estate-related investments meeting our investment objectives and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (will decrease to the extent we dispose of properties and paydown debt.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 236.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 236.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.22 236.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.04 236.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.87 236.10 Td (, we received a distribution of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.78 236.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.67 236.10 Td ( related to our investment in the NIP) Tj ET Q q 0 0 0 rg BT 562.10 236.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (Joint ) Tj ET Q q 0 0 0 rg BT 71.27 224.10 Td (V) Tj ET Q q 0 0 0 rg BT 77.38 224.10 Td (enture. ) Tj ET Q q 0 0 0 rg BT 107.19 224.10 Td (W) Tj ET Q q 0 0 0 rg BT 115.82 224.10 Td (e recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.12 224.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.02 224.10 Td ( of income distributions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.72 224.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.61 224.10 Td ( of return of capital from the NIP) Tj ET Q q 0 0 0 rg BT 513.70 224.10 Td ( Joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 212.10 Td (enture. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.15 212.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.82 212.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.64 212.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.47 212.10 Td (, we received a distribution of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.38 212.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.27 212.10 Td ( related to our investment in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (NIP) Tj ET Q q 0 0 0 rg BT 65.24 200.10 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 89.51 200.10 Td (V) Tj ET Q q 0 0 0 rg BT 95.62 200.10 Td (enture. ) Tj ET Q q 0 0 0 rg BT 125.43 200.10 Td (W) Tj ET Q q 0 0 0 rg BT 134.07 200.10 Td (e recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.37 200.10 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.26 200.10 Td ( of income distributions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.96 200.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.86 200.10 Td ( of return of capital from the NIP) Tj ET Q q 0 0 0 rg BT 531.94 200.10 Td ( Joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 188.10 Td (enture.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 170.10 Td (Equity in loss of unconsolidated joint ventures increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.78 170.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.67 170.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.05 170.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.72 170.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.54 170.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.38 170.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 170.10 Td ($4.8 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 158.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.77 158.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.44 158.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.26 158.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.09 158.10 Td (, primarily as a result of the equity in loss related to the 1) Tj ET Q q 0 0 0 rg BT 466.00 158.10 Td (10 ) Tj ET Q q 0 0 0 rg BT 478.32 158.10 Td (W) Tj ET Q q 0 0 0 rg BT 487.36 158.10 Td (illiam Joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 146.10 Td (enture, primarily due to increased interest expense, and the equity in loss related to 353 Sacramento, which has been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (accounted for as an unconsolidated joint venture under the equity method of accounting beginning July 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 116.10 Td (Other interest income increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.33 116.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.22 116.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.60 116.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.27 116.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.09 116.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.92 116.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.70 116.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.59 116.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.97 116.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.64 116.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 104.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 104.10 Td (, primarily as a result of increased dividends from our investment in money market mutual funds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.10 Td (using the net cash proceeds from the sale of properties in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.71 92.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.71 92.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 74.10 Td (Unrealized loss on real estate equity securities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.48 74.10 Td ($7.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.38 74.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.20 74.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.87 74.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.70 74.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.53 74.10 Td (, primarily as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (result of decreases in share prices of our investments in real estate equity securities and the adoption of ) Tj ET Q q 0 0 0 rg BT 463.25 62.10 Td (ASU No. 2016-01.) Tj ET Q endstream endobj 89 0 obj <>] /Rotate 0 /Contents 90 0 R>> endobj 90 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 704.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.22 704.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.04 704.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.87 704.10 Td (, we sold one of) Tj ET Q q 0 0 0 rg BT 309.29 704.10 Td (fice property and 102 acres of undeveloped land that resulted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (in a gain on sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.81 692.10 Td ($34.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.70 692.10 Td (. ) Tj ET Q q 0 0 0 rg BT 186.52 692.10 Td (W) Tj ET Q q 0 0 0 rg BT 195.16 692.10 Td (e recognized a gain on sale of $29.4 million related to the disposition of the of) Tj ET Q q 0 0 0 rg BT 507.67 692.10 Td (fice property) Tj ET Q q 0 0 0 rg BT 558.39 692.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 680.10 Td (e recognized a gain on sale related to the disposition of the undeveloped land based on the percentage of completion method ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (due to our continuing development obligations to the purchasers. ) Tj ET Q q 0 0 0 rg BT 311.49 668.10 Td (W) Tj ET Q q 0 0 0 rg BT 320.13 668.10 Td (e recognized a gain on sale of $4.6 million related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (land sale, which is net of deferred profit of $3.3 million. In addition, we deferred $1.7 million related to proceeds received from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (the purchasers and another developer for the value of land that was contributed to a master association that we consolidated. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.05 632.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.72 632.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.54 632.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.37 632.10 Td (, we sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.70 632.10 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.70 632.10 Td ( acres of undeveloped land that resulted in a gain on sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.34 632.10 Td ($0.7 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 620.10 Td (, which is net of deferred profit of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.40 620.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.29 620.10 Td ( related to proceeds received from the purchaser for the value of land that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (was contributed to a master association that we consolidated.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (Funds fr) Tj ET Q q 0 0 0 rg BT 86.27 590.10 Td (om Operations, Modified Funds fr) Tj ET Q q 0 0 0 rg BT 233.04 590.10 Td (om Operations and ) Tj ET Q q 0 0 0 rg BT 317.22 590.10 Td (Adjusted Modified Funds fr) Tj ET Q q 0 0 0 rg BT 436.78 590.10 Td (om Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 572.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 572.10 Td (e believe that funds from operations \(“FFO”\) is a beneficial indicator of the performance of an equity REIT) Tj ET Q q 0 0 0 rg BT 510.02 572.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 560.10 Td (e compute FFO in accordance with the current National ) Tj ET Q q 0 0 0 rg BT 282.79 560.10 Td (Association of Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 437.84 560.10 Td (T) Tj ET Q q 0 0 0 rg BT 443.60 560.10 Td (rusts \(“NAREIT”\) definition. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (FFO represents net income, excluding gains and losses from sales of operating real estate assets \(which can vary among owners ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (of identical assets in similar conditions based on historical cost accounting and useful-life estimates\), impairment losses on real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 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 49.50 512.10 Td (ventures. ) Tj ET Q q 0 0 0 rg BT 88.20 512.10 Td (W) Tj ET Q q 0 0 0 rg BT 96.83 512.10 Td (e believe FFO facilitates comparisons of operating performance between periods and among other REIT) Tj ET Q q 0 0 0 rg BT 513.49 512.10 Td (s. However) Tj ET Q q 0 0 0 rg BT 558.64 512.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (our computation of FFO may not be comparable to other REIT) Tj ET Q q 0 0 0 rg BT 300.41 500.10 Td (s that do not define FFO in accordance with the NAREIT) Tj ET Q q 0 0 0 rg BT 529.62 500.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (definition or that interpret the current NAREIT) Tj ET Q q 0 0 0 rg BT 237.59 488.10 Td ( definition dif) Tj ET Q q 0 0 0 rg BT 292.40 488.10 Td (ferently than we do. Our management believes that historical cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (accounting for real estate assets in accordance with U.S. Generally ) Tj ET Q q 0 0 0 rg BT 318.28 476.10 Td (Accepted ) Tj ET Q q 0 0 0 rg BT 357.99 476.10 Td (Accounting Principles \(“GAAP”\) implicitly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (fallen with market conditions, many industry investors and analysts have considered the presentation of operating results for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (real estate companies that use historical cost accounting to be insuf) Tj ET Q q 0 0 0 rg BT 317.57 440.10 Td (ficient by themselves. ) Tj ET Q q 0 0 0 rg BT 406.99 440.10 Td (As a result, we believe that the use of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (FFO, together with the required GAAP) Tj ET Q q 0 0 0 rg BT 205.77 428.10 Td ( presentations, provides a more complete understanding of our performance relative to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (our competitors and provides a more informed and appropriate basis on which to make decisions involving operating, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (financing, and investing activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 386.10 Td (Changes in accounting rules have resulted in a substantial increase in the number of non-operating and non-cash items ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (included in the calculation of FFO. ) Tj ET Q q 0 0 0 rg BT 191.42 374.10 Td (As a result, our management also uses modified funds from operations \(“MFFO”\) as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (indicator of our ongoing performance as well as our dividend sustainability) Tj ET Q q 0 0 0 rg BT 349.89 362.10 Td (. MFFO excludes from FFO: acquisition fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (expenses \(to the extent that such fees and expenses have been recorded as operating expenses\); adjustments related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (contingent purchase price obligations; amounts relating to straight-line rents and amortization of above- and below-market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (intangible lease assets and liabilities; accretion of discounts and amortization of premiums on debt investments; amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (closing costs relating to debt investments; impairments of real estate-related investments; mark-to-market adjustments included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (in net income; and gains or losses included in net income for the extinguishment or sale of debt or hedges. ) Tj ET Q q 0 0 0 rg BT 476.72 302.10 Td (W) Tj ET Q q 0 0 0 rg BT 485.35 302.10 Td (e compute MFFO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (in accordance with the definition of MFFO included in the practice guideline issued by the Institute for Portfolio ) Tj ET Q q 0 0 0 rg BT 501.62 290.10 Td (Alternatives ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (\(“IP) Tj ET Q q 0 0 0 rg BT 65.24 278.10 Td (A”\) in November 2010 as interpreted by management. Our computation of MFFO may not be comparable to other REIT) Tj ET Q q 0 0 0 rg BT 547.47 278.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (that do not compute MFFO in accordance with the current IP) Tj ET Q q 0 0 0 rg BT 292.97 266.10 Td (A) Tj ET Q q 0 0 0 rg BT 299.64 266.10 Td ( definition or that interpret the current IP) Tj ET Q q 0 0 0 rg BT 461.72 266.10 Td (A) Tj ET Q q 0 0 0 rg BT 468.39 266.10 Td ( definition dif) Tj ET Q q 0 0 0 rg BT 523.20 266.10 Td (ferently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (than we do. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 236.10 Td (In addition, our management uses an adjusted MFFO \(“Adjusted MFFO”\) as an indicator of our ongoing performance, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (well as our dividend sustainability) Tj ET Q q 0 0 0 rg BT 186.05 224.10 Td (. ) Tj ET Q q 0 0 0 rg BT 190.50 224.10 Td (Adjusted MFFO provides adjustments to reduce MFFO related to operating expenses that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (are capitalized with respect to certain of our investments in undeveloped land. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 194.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 194.10 Td (e believe that MFFO and ) Tj ET Q q 0 0 0 rg BT 184.07 194.10 Td (Adjusted MFFO are helpful as measures of ongoing operating performance because they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (exclude costs that management considers more reflective of investing activities and other non-operating items included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (FFO. Management believes that excluding acquisition costs, prior to our early adoption of ) Tj ET Q q 0 0 0 rg BT 411.93 170.10 Td (ASU No. 2017-01 on January 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (2017, from MFFO and ) Tj ET Q q 0 0 0 rg BT 142.56 158.10 Td (Adjusted MFFO provides investors with supplemental performance information that is consistent with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (management’) Tj ET Q q 0 0 0 rg BT 103.37 146.10 Td (s analysis of the operating performance of the portfolio over time, including periods after our acquisition stage. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (MFFO and ) Tj ET Q q 0 0 0 rg BT 95.62 134.10 Td (Adjusted MFFO also exclude non-cash items such as straight-line rental revenue. ) Tj ET Q q 0 0 0 rg BT 425.27 134.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 475.17 134.10 Td (, we believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (MFFO and ) Tj ET Q q 0 0 0 rg BT 95.62 122.10 Td (Adjusted MFFO provide 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 49.50 110.10 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 49.50 98.10 Td (defined by GAAP) Tj ET Q q 0 0 0 rg BT 120.60 98.10 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 49.50 86.10 Td (operating performance of our portfolio with other non-traded REIT) Tj ET Q q 0 0 0 rg BT 317.60 86.10 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 49.50 74.10 Td (acquisition periods and tar) Tj ET Q q 0 0 0 rg BT 155.13 74.10 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 542.93 74.10 Td (s, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (and we believe often used by analysts and investors for comparison purposes. ) Tj ET Q endstream endobj 91 0 obj <>] /Rotate 0 /Contents 92 0 R>> endobj 92 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 142.97 704.10 Td (Adjusted MFFO are non-GAAP) Tj ET Q q 0 0 0 rg BT 271.21 704.10 Td ( financial measures and do not represent net income as defined by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (GAAP) Tj ET Q q 0 0 0 rg BT 75.62 692.10 Td (. Net income as defined by GAAP) Tj ET Q q 0 0 0 rg BT 212.16 692.10 Td ( is the most relevant measure in determining our operating performance because FFO, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (MFFO and ) Tj ET Q q 0 0 0 rg BT 95.62 680.10 Td (Adjusted MFFO include adjustments that investors may deem subjective, such as adding back expenses such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (depreciation and amortization and the other items described above. ) Tj ET Q q 0 0 0 rg BT 319.40 668.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 368.74 668.10 Td (, FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 443.21 668.10 Td (Adjusted MFFO should not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (be considered as alternatives to net income as an indicator of our current and historical operating performance. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 118.97 644.10 Td (Adjusted MFFO do not represent cash flows from operating activities determined in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 552.38 644.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (and should not be considered an indication of our liquidity) Tj ET Q q 0 0 0 rg BT 282.97 632.10 Td (. ) Tj ET Q q 0 0 0 rg BT 287.79 632.10 Td (W) Tj ET Q q 0 0 0 rg BT 296.43 632.10 Td (e believe FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 404.21 632.10 Td (Adjusted MFFO, in addition to net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (income and cash flows from operating activities as defined by GAAP) Tj ET Q q 0 0 0 rg BT 326.10 620.10 Td (, are meaningful supplemental performance measures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 602.10 Td (Although MFFO includes other adjustments, the exclusion of straight-line rent, the amortization of above- and below-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (market leases, the amortization of discounts and closing costs, unrealized loss on real estate equity securities and mark to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (market foreign currency transaction adjustment are the most significant adjustments for the periods presented. ) Tj ET Q q 0 0 0 rg BT 494.18 578.10 Td (W) Tj ET Q q 0 0 0 rg BT 502.82 578.10 Td (e have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (excluded these items based on the following economic considerations:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 548.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 548.10 Td (Adjustments for straight-line r) Tj ET Q q 0 0 0 rg BT 211.02 548.10 Td (ent. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.24 548.10 Td ( ) Tj ET Q q 0 0 0 rg BT 230.56 548.10 Td (These are adjustments to rental revenue as required by GAAP) Tj ET Q q 0 0 0 rg BT 477.60 548.10 Td ( to recognize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 536.10 Td (contractual lease payments on a straight-line basis over the life of the respective lease. ) Tj ET Q q 0 0 0 rg BT 439.68 536.10 Td (W) Tj ET Q q 0 0 0 rg BT 448.32 536.10 Td (e have excluded these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 524.10 Td (adjustments in our calculation of MFFO to more appropriately reflect the current economic impact of our in-place ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 512.10 Td (leases, while also providing investors with a useful supplemental metric that addresses core operating performance by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 500.10 Td (removing rent we expect to receive in a future period or rent that was received in a prior period; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 485.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 485.10 Td (Amortization of above- and below-market leases.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.64 485.10 Td ( Similar to depreciation and amortization of real estate assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 473.10 Td (lease related costs that are excluded from FFO, GAAP) Tj ET Q q 0 0 0 rg BT 307.62 473.10 Td ( implicitly assumes that the value of intangible lease assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 461.10 Td (liabilities diminishes predictably over time and requires that these char) Tj ET Q q 0 0 0 rg BT 372.79 461.10 Td (ges be recognized currently in revenue. Since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 449.10 Td (market lease rates in the aggregate have historically risen or fallen with local market conditions, management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 437.10 Td (believes that by excluding these char) Tj ET Q q 0 0 0 rg BT 237.27 437.10 Td (ges, MFFO provides useful supplemental information on the realized economics ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 425.10 Td (of the real estate; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 410.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 410.10 Td (Amortization of discounts and closing costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.67 410.10 Td ( Discounts and closing costs related to debt investments are amortized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 398.10 Td (over the term of the loan as an adjustment to interest income. ) Tj ET Q q 0 0 0 rg BT 339.19 398.10 Td (This application results in income recognition that is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 386.10 Td (dif) Tj ET Q q 0 0 0 rg BT 100.93 386.10 Td (ferent than the underlying contractual terms of the debt investments. ) Tj ET Q q 0 0 0 rg BT 378.99 386.10 Td (W) Tj ET Q q 0 0 0 rg BT 387.63 386.10 Td (e have excluded the amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 374.10 Td (discounts and closing costs related to our debt investments in our calculation of MFFO to more appropriately reflect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 362.10 Td (the economic impact of our debt investments, as discounts will not be economically recognized until the loan is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 350.10 Td (repaid and closing costs are essentially the same as acquisition fees and expenses on real estate \(discussed below\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 338.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 338.10 Td (e believe excluding these items provides investors with a useful supplemental metric that directly addresses core ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 326.10 Td (operating performance; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 311.10 Td (•) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 75.50 311.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 311.10 Td (Unr) Tj ET Q q 0 0 0 rg BT 105.74 311.10 Td (ealized losses on r) Tj ET Q q 0 0 0 rg BT 178.98 311.10 Td (eal estate equity securities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.78 311.10 Td (Upon our adoption of ) Tj ET Q q 0 0 0 rg BT 378.11 311.10 Td (ASU No. 2016-01 on January 1, 2018, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 299.10 Td (unrealized gains and losses on real estate securities are recognized in earnings. ) Tj ET Q q 0 0 0 rg BT 406.64 299.10 Td (This is a non-cash mark-to-market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 287.10 Td (adjustment which is included in net income which we have excluded in our calculation of MFFO to more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 275.10 Td (appropriately reflect our ongoing operating performance, as these gains or losses will not be realized until the real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 263.10 Td (estate equity securities are sold; and) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 248.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 248.10 Td (Mark-to-market for) Tj ET Q q 0 0 0 rg BT 167.67 248.10 Td (eign curr) Tj ET Q q 0 0 0 rg BT 204.23 248.10 Td (ency transaction adjustments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.88 248.10 Td (The U.S. Dollar is our functional currency) Tj ET Q q 0 0 0 rg BT 494.63 248.10 Td (. ) Tj ET Q q 0 0 0 rg BT 499.45 248.10 Td (T) Tj ET Q q 0 0 0 rg BT 505.21 248.10 Td (ransactions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 236.10 Td (denominated in currency other than our functional currency are recorded upon initial recognition at the exchange rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 224.10 Td (on the date of the transaction. ) Tj ET Q q 0 0 0 rg BT 210.24 224.10 Td (After initial recognition, monetary assets and liabilities denominated in foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 212.10 Td (currency are remeasured at each reporting date into the foreign currency at the exchange rate on that date. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 200.10 Td (we have entered into foreign currency collars and foreign currency options that results in a foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 188.10 Td (transaction adjustment. ) Tj ET Q q 0 0 0 rg BT 185.07 188.10 Td (These amounts can increase or reduce net income. ) Tj ET Q q 0 0 0 rg BT 388.41 188.10 Td (W) Tj ET Q q 0 0 0 rg BT 397.05 188.10 Td (e exclude them from MFFO to more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 176.10 Td (appropriately present the ongoing operating performance of our real estate investments on a comparative basis.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 155.10 Td (Adjusted MFFO includes adjustments to reduce MFFO related to real estate taxes, property insurance and financing costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (which are capitalized with respect to certain of our investments in undeveloped land. ) Tj ET Q q 0 0 0 rg BT 393.37 143.10 Td (W) Tj ET Q q 0 0 0 rg BT 402.00 143.10 Td (e have included adjustments for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (costs incurred necessary to bring these investments to their intended use, as these costs are recurring operating costs that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (capitalized in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 200.18 119.10 Td ( and not reflected in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.47 119.10 Td (net loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.75 119.10 Td (, FFO and MFFO. ) Tj ET Q endstream endobj 93 0 obj <>] /Rotate 0 /Contents 94 0 R>> endobj 94 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (Our calculation of FFO, which we believe is consistent with the calculation of FFO as defined by NAREIT) Tj ET Q q 0 0 0 rg BT 499.50 704.10 Td (, is presented in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (the following table, along with our calculations of MFFO and ) Tj ET Q q 0 0 0 rg BT 298.07 692.10 Td (Adjusted MFFO, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.80 692.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.78 692.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.22 692.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.89 692.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.71 692.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 680.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 680.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 680.10 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 50.00 632.60 265.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 632.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 632.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 632.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 632.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 632.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 632.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 632.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 632.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 608.60 265.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 608.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 608.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 608.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 608.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 608.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 608.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 608.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 608.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 584.60 265.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 584.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 584.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 584.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 584.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 584.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 584.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 584.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 584.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 560.60 265.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 560.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 560.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 560.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 560.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 560.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 560.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 560.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 560.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 536.60 265.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 536.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 536.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 536.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 536.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 536.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 536.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 536.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 536.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 512.60 265.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 512.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 512.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 512.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 512.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 512.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 512.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 512.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 512.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 488.60 265.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 488.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 488.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 488.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 488.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 488.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 488.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 488.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 488.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 464.60 265.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 464.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 464.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 464.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 464.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 464.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 464.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 464.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 464.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 440.60 265.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 440.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 440.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 440.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 440.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 440.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.00 440.60 58.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 440.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 440.60 58.00 -12.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 644.6 m 377 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 644.6 m 381 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 644.6 m 439 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 644.6 m 501 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 644.6 m 505 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 644.6 m 563 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 644.6 m 377 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 644.6 m 381 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 644.6 m 439 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 644.6 m 501 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 632.6 m 501 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 644.6 m 505 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 644.6 m 563 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 632.6 m 563 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 632.6 m 377 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 632.6 m 439 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 632.6 m 501 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 632.6 m 563 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 560.6 m 377 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 560.6 m 439 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 560.6 m 501 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 560.6 m 563 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 560.6 m 377 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 560.6 m 439 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 560.6 m 501 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 560.6 m 563 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 452.6 m 377 452.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 452.6 m 439 452.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 452.6 m 501 452.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 452.6 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 319 452.6 m 377 452.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 440.6 m 377 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 452.6 m 439 452.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 440.6 m 439 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 452.6 m 501 452.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 440.6 m 501 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 452.6 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 505 440.6 m 563 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 440.6 m 377 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 440.6 m 439 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 440.6 m 501 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 440.6 m 563 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 428.6 m 377 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 417.6 m 377 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 415.6 m 377 415.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 428.6 m 439 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 417.6 m 439 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 415.6 m 439 415.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 428.6 m 501 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 417.6 m 501 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 415.6 m 501 415.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 428.6 m 563 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 417.6 m 563 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 415.6 m 563 415.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 328.70 655.68 Td (For) Tj ET Q q 0 0 0 rg BT 341.07 655.68 Td ( the ) Tj ET Q q 0 0 0 rg BT 355.58 655.68 Td (Thr) Tj ET Q q 0 0 0 rg BT 368.78 655.68 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 364.25 647.68 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.45 655.68 Td (For) Tj ET Q q 0 0 0 rg BT 469.82 655.68 Td ( the Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.25 647.68 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.50 636.68 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.50 636.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.50 636.68 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.50 636.68 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 624.55 Td (Net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.05 624.55 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 66.05 624.55 Td (income \() Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 94.26 624.55 Td (loss\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 111.38 624.55 Td (attributable to common stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 321.50 624.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.80 624.55 Td (10,036) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.50 624.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 624.55 Td (23,846) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.50 624.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.10 624.55 Td (\(13,645) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 624.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 507.50 624.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 624.55 Td (14,754) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 612.55 Td (Depreciation of real estate assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 612.55 Td (4,878) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.80 612.55 Td (8,789) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 612.55 Td (8,996) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 612.55 Td (17,296) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 600.55 Td (Amortization of lease-related costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 600.55 Td (4,164) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.80 600.55 Td (6,518) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 600.55 Td (7,31) Tj ET Q q 0 0 0 rg BT 493.80 600.55 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 600.55 Td (12,612) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 588.55 Td (Gain on sale of real estate ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 149.35 592.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.10 588.55 Td (\(25) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 588.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.10 588.55 Td (\(34,028) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 588.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.10 588.55 Td (\(649) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 588.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 535.10 588.55 Td (\(34,028) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 588.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 576.55 Td (Adjustments for noncontrolling interests - consolidated entities ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 268.24 580.18 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.10 576.55 Td (\(122) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 576.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.10 576.55 Td (\(137) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 576.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.10 576.55 Td (\(243) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 576.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 576.55 Td (\(257) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 576.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 564.55 Td (Adjustments for investments in unconsolidated entities) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 240.25 568.18 Td ( \(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 564.55 Td (3,249) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.80 564.55 Td (2,639) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 564.55 Td (6,588) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 564.55 Td (4,589) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 552.55 Td (FFO attributable to common stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.80 552.55 Td (22,180) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.80 552.55 Td (7,627) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 552.55 Td (8,358) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 552.55 Td (14,966) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 540.55 Td (Straight-line rent and amortization of above- and below-market leases) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.10 540.55 Td (\(1,199) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 540.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.10 540.55 Td (\(1,588) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 540.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.10 540.55 Td (\(2,100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 540.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 540.55 Td (\(3,407) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 540.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 528.55 Td (Amortization of discounts and closing costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.10 528.55 Td (\(21) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 528.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.10 528.55 Td (\(279) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 528.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.10 528.55 Td (\(128) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 528.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 528.55 Td (\(348) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 528.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 516.55 Td (Unrealized) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 99.59 516.55 Td ( \(gain\) loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 135.14 516.55 Td ( on real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.10 516.55 Td (\(8,724) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 516.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 516.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 516.55 Td (7,287) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 516.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 504.55 Td (Amortization of net premium/discount on bond and notes payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 504.55 Td (15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 504.55 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 504.55 Td (29) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 504.55 Td (23) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 492.55 Td (Unrealized) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 99.59 492.55 Td ( loss ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.04 492.55 Td (on interest rate caps) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 492.55 Td (62) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.80 492.55 Td (31) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.80 492.55 Td (31) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 492.55 Td (88) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 480.55 Td (Mark-to-market foreign currency transaction ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 209.77 480.55 Td (loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 222.22 480.55 Td (, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 349.10 480.55 Td (\(10,1) Tj ET Q q 0 0 0 rg BT 365.76 480.55 Td (1) Tj ET Q q 0 0 0 rg BT 369.76 480.55 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 480.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.80 480.55 Td (2,426) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.10 480.55 Td (\(9,1) Tj ET Q q 0 0 0 rg BT 489.76 480.55 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 480.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 480.55 Td (7,097) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 468.55 Td (Adjustments for noncontrolling interests - consolidated entities ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 268.24 472.18 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.10 468.55 Td (\(1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 468.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.10 468.55 Td (\(10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 468.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.80 468.55 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 468.55 Td (\(23) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 468.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 456.55 Td (Adjustments for investments in unconsolidated entities ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 242.25 460.18 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.10 456.55 Td (\(440) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 456.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.10 456.55 Td (\(475) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 456.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.10 456.55 Td (\(1,096) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 456.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 456.55 Td (\(1,674) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 456.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 444.55 Td (MFFO attributable to common stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 444.55 Td (1,761) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.80 444.55 Td (7,744) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 444.55 Td (3,269) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 444.55 Td (16,722) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 432.55 Td (Other capitalized operating expenses ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 184.45 436.18 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.10 432.55 Td (\(693) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 432.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.10 432.55 Td (\(659) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.80 432.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.10 432.55 Td (\(1,439) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.80 432.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 432.55 Td (\(1,308) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 432.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 420.55 Td (Adjusted MFFO attributable to common stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 321.50 420.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.80 420.55 Td (1,068) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.50 420.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.80 420.55 Td (7,085) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 445.50 420.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 420.55 Td (1,830) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 507.50 420.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 420.55 Td (15,414) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 405.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 396.13 Td (\(1\)) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 55.56 392.50 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.81 392.50 Td (Reflects an adjustment to eliminate gain on sale of undepreciated land. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 383.52 Td (\(2\)) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 55.56 379.90 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.81 379.90 Td (Reflects adjustments to eliminate the noncontrolling interest holders’) Tj ET Q q 0 0 0 rg BT 277.28 379.90 Td ( share of the adjustments to convert our ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.69 379.90 Td (net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.91 379.90 Td ( attributable to common stockholders to ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 370.30 Td (FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 105.07 370.30 Td (Adjusted MFFO.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 361.32 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 357.70 Td ( Reflects adjustments to add back our noncontrolling interest share of the adjustments to convert our ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.59 357.70 Td (net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.82 357.70 Td ( attributable to common stockholders to FFO, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 348.10 Td (MFFO and ) Tj ET Q q 0 0 0 rg BT 86.40 348.10 Td (Adjusted MFFO for our equity investments in unconsolidated joint ventures.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 339.13 Td (\(4\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 335.50 Td (Reflects real estate taxes, property insurance and financing costs that are capitalized with respect to certain of our investments in undeveloped land. During ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 325.90 Td (the periods in which we are incurring costs necessary to bring these investments to their intended use, certain normal recurring operating costs are capitalized in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 316.30 Td (accordance with GAAP) Tj ET Q q 0 0 0 rg BT 125.18 316.30 Td ( and not reflected in our ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 203.81 316.30 Td (net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 228.04 316.30 Td (, FFO and MFFO.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 292.30 Td (FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 141.47 292.30 Td (Adjusted MFFO may also be used to fund all or a portion of certain capitalizable items that are excluded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.30 Td (from FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 140.91 280.30 Td (Adjusted MFFO, such as tenant improvements, building improvements and deferred leasing costs. ) Tj ET Q q 0 0 0 rg BT 536.49 280.30 Td (W) Tj ET Q q 0 0 0 rg BT 545.13 280.30 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.30 Td (expect FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 147.56 268.30 Td (Adjusted MFFO to improve in future periods to the extent that we continue to lease up vacant space ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.30 Td (and acquire additional assets. ) Tj ET Q q 0 0 0 rg BT 169.00 256.30 Td (W) Tj ET Q q 0 0 0 rg BT 177.64 256.30 Td (e expect FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 282.64 256.30 Td (Adjusted MFFO to decrease as a result of dispositions.) Tj ET Q endstream endobj 95 0 obj <>] /Rotate 0 /Contents 96 0 R>> endobj 96 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (46) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Distributions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 686.25 Td (Distributions declared, distributions paid and cash flows provided by operations were as follows for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.58 686.25 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.69 686.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.12 686.25 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.89 686.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (quarters of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.04 674.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.04 674.25 Td ( \(in thousands, except per share amounts\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 615.75 104.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 154.00 615.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 158.00 615.75 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 222.00 615.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.00 615.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 615.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.00 615.75 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 615.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.00 615.75 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 615.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 615.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 615.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 615.75 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 585.75 104.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 154.00 585.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 158.00 585.75 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 222.00 585.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.00 585.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 585.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.00 585.75 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 585.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.00 585.75 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 585.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 585.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 585.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 585.75 67.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 629.75 m 359 629.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 629.75 m 363 629.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363 629.75 m 427 629.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 629.75 m 431 629.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 629.75 m 492 629.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 615.75 m 154 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 615.75 m 222 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226 615.75 m 291 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 615.75 m 359 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363 615.75 m 427 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 615.75 m 492 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 615.75 m 563 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 615.75 m 222 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226 615.75 m 291 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 615.75 m 359 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 615.75 m 563 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 585.75 m 222 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226 585.75 m 291 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 585.75 m 222 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 571.75 m 222 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 569.75 m 222 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226 585.75 m 291 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226 571.75 m 291 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226 569.75 m 291 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 585.75 m 359 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 571.75 m 359 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 569.75 m 359 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363 585.75 m 427 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363 571.75 m 427 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363 569.75 m 427 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 585.75 m 492 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 571.75 m 492 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 569.75 m 492 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 585.75 m 563 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 571.75 m 563 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 569.75 m 563 569.75 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 634.21 Td ( ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 165.95 629.20 Td (Distribution) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 172.30 620.20 Td (Declar) Tj ET Q q 0 0 0 rg BT 197.70 620.20 Td (ed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 232.70 638.20 Td (Distributions) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 233.05 629.20 Td (Declar) Tj ET Q q 0 0 0 rg BT 258.45 629.20 Td (ed Per) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 246.80 620.20 Td (Shar) Tj ET Q q 0 0 0 rg BT 265.22 620.20 Td (e) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 353.30 634.20 Td (Distributions Paid ) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 425.81 638.28 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 506.85 647.20 Td (Cash Flows) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 511.10 638.20 Td (\(Used In\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 505.20 629.20 Td (Pr) Tj ET Q q 0 0 0 rg BT 514.61 629.20 Td (ovided By) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 507.45 620.20 Td (Operations) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 88.75 620.20 Td (Period) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 316.70 620.20 Td (Cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 373.50 620.20 Td (Reinvested) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.15 620.20 Td (T) Tj ET Q q 0 0 0 rg BT 456.33 620.20 Td (otal) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 605.21 Td (First Quarter 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 160.50 605.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 198.25 605.21 Td (1,034) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 228.50 605.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 267.25 605.21 Td (0.016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.50 605.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.75 605.21 Td (38,170) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.50 605.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 605.21 Td (479) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.50 605.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.75 605.21 Td (38,649) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.50 605.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 536.25 605.21 Td (\(5,013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 605.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 590.21 Td (Second Quarter 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 205.00 590.21 Td (882) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 267.25 590.21 Td (0.016) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.00 590.21 Td (397) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 590.21 Td (485) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.00 590.21 Td (882) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 590.21 Td (5,581) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 160.50 575.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 198.25 575.21 Td (1,916) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 228.50 575.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 267.25 575.21 Td (0.032) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.50 575.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.75 575.21 Td (38,567) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 365.50 575.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 575.21 Td (964) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 433.50 575.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.75 575.21 Td (39,531) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.50 575.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 546.00 575.21 Td (568) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 550.27 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 546.65 Td ( On December 7, 2017, our board of directors authorized a Special Dividend of $3.61 per share of common stock payable in either shares of our common ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 537.05 Td (stock or cash to, and at the election of, the stockholders of record as of December 7, 2017 \(the “Record Date”\). ) Tj ET Q q 0 0 0 rg BT 406.33 537.05 Td (The Special Dividend was paid on January 17, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 527.45 Td (2018 to stockholders of record as of the close of business on the Record Date. If stockholders elected all cash, their election was subject to adjustment such that ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 517.85 Td (the aggregate amount of cash to be distributed by us was a maximum of 20% of the total Special Dividend \(the “Maximum Cash Distribution”\), with the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 508.25 Td (remainder paid in shares of common stock. ) Tj ET Q q 0 0 0 rg BT 189.32 508.25 Td (The aggregate amount of cash paid by us pursuant to the Special Dividend and the actual number of shares of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 498.65 Td (common stock issued pursuant to the Special Dividend depended upon the number of stockholders that elected cash or stock and whether the Maximum Cash ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 489.05 Td (Distribution was met. ) Tj ET Q q 0 0 0 rg BT 120.16 489.05 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 159.63 489.05 Td (, on January 17, 2018, we paid $37.6 million in cash. ) Tj ET Q q 0 0 0 rg BT 331.02 489.05 Td (W) Tj ET Q q 0 0 0 rg BT 337.93 489.05 Td (e issued $150.3 million in common stock pursuant to the Special ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 479.45 Td (Dividend on January 17, 2018, which has been excluded from the distributions paid in the table.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 455.45 Td (On March 8, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.82 455.45 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.82 455.45 Td (, our board of directors authorized a distribution in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.81 455.45 Td ($0.01597500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.31 455.45 Td ( per share of common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.45 Td (stock to stockholders of record as of the close of business on March 16, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.04 443.45 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.04 443.45 Td (. ) Tj ET Q q 0 0 0 rg BT 362.86 443.45 Td (W) Tj ET Q q 0 0 0 rg BT 371.50 443.45 Td (e paid this distribution on March 21, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.82 443.45 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.82 443.45 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.45 Td (this was the only distribution declared during the first quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.05 431.45 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.05 431.45 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 413.45 Td (On June 12, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.05 413.45 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.05 413.45 Td (, our board of directors authorized a distribution in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.04 413.45 Td ($0.01597500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.54 413.45 Td ( per share of common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.45 Td (stock to stockholders of record as of the close of business on June 15, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.28 401.45 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.28 401.45 Td (. ) Tj ET Q q 0 0 0 rg BT 355.10 401.45 Td (W) Tj ET Q q 0 0 0 rg BT 363.73 401.45 Td (e paid this distribution on June 20, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.28 401.45 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.28 401.45 Td ( and this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.45 Td (was the only distribution declared during the second quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.76 389.45 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.76 389.45 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 371.45 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.11 371.45 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.78 371.45 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.60 371.45 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.43 371.45 Td (, we paid aggregate distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.01 371.45 Td ($39.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.90 371.45 Td (, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.17 371.45 Td ($38.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.06 371.45 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.45 Td (distributions paid in cash and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.21 359.45 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.10 359.45 Td ( of distributions reinvested through our dividend reinvestment plan. Our net loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.45 Td (attributable to common stockholders for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.23 347.45 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.90 347.45 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.73 347.45 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.56 347.45 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.11 347.45 Td ($13.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 347.45 Td ( and our cash flows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.26 347.45 Td (provided by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.31 347.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.45 Td (operations were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.58 335.45 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.48 335.45 Td (. Our cumulative distributions paid and net income attributable to common stockholders from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.45 Td (inception through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.82 323.45 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.65 323.45 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.08 323.45 Td ($160.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.97 323.45 Td ( \(which excludes the $150.3 million in common stock issued pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.45 Td (the Special Dividend discussed above\) and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.34 311.45 Td ($139.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.23 311.45 Td (, respectively) Tj ET Q q 0 0 0 rg BT 334.90 311.45 Td (. ) Tj ET Q q 0 0 0 rg BT 339.71 311.45 Td (W) Tj ET Q q 0 0 0 rg BT 348.35 311.45 Td (e have funded our cumulative distributions, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.45 Td (includes net cash distributions and distributions reinvested by stockholders, with proceeds from debt financing of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.96 299.45 Td ($18.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.86 299.45 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.45 Td (proceeds from the dispositions of property of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.52 287.45 Td ($51.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.41 287.45 Td ( and cash provided by operations of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.65 287.45 Td ($90.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.54 287.45 Td (. ) Tj ET Q q 0 0 0 rg BT 490.36 287.45 Td (T) Tj ET Q q 0 0 0 rg BT 495.77 287.45 Td (o the extent that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.45 Td (we pay distributions from sources other than our cash flow from operations or gains from asset sales, we will have fewer funds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.45 Td (available for investment in real estate-related loans, opportunistic real estate, real estate-related debt securities and other real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.45 Td (estate-related investments, the overall return to our stockholders may be reduced and subsequent investors may experience ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.45 Td (dilution.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 221.45 Td (Critical ) Tj ET Q q 0 0 0 rg BT 84.21 221.45 Td (Accounting Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 203.45 Td (Our consolidated interim financial statements have been prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 441.77 203.45 Td ( and in conjunction with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.45 Td (rules and regulations of the SEC. ) Tj ET Q q 0 0 0 rg BT 184.02 191.45 Td (The preparation of our financial statements requires significant management judgments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.45 Td (assumptions and estimates about matters that are inherently uncertain. ) Tj ET Q q 0 0 0 rg BT 332.01 179.45 Td (These judgments af) Tj ET Q q 0 0 0 rg BT 410.14 179.45 Td (fect the reported amounts of assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.45 Td (and liabilities and our disclosure of contingent assets and liabilities as of the dates of the financial statements and the reported ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.45 Td (amounts of revenue and expenses during the reporting periods. ) Tj ET Q q 0 0 0 rg BT 303.14 155.45 Td (W) Tj ET Q q 0 0 0 rg BT 312.18 155.45 Td (ith dif) Tj ET Q q 0 0 0 rg BT 336.16 155.45 Td (ferent estimates or assumptions, materially dif) Tj ET Q q 0 0 0 rg BT 520.93 155.45 Td (ferent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.45 Td (amounts could be reported in our financial statements. ) Tj ET Q q 0 0 0 rg BT 268.61 143.45 Td (Additionally) Tj ET Q q 0 0 0 rg BT 318.51 143.45 Td (, other companies may utilize dif) Tj ET Q q 0 0 0 rg BT 449.95 143.45 Td (ferent estimates that may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.45 Td (impact the comparability of our results of operations to those of companies in similar businesses. ) Tj ET Q q 0 0 0 rg BT 439.42 131.45 Td (A) Tj ET Q q 0 0 0 rg BT 446.09 131.45 Td ( discussion of the accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.45 Td (policies that management considers critical in that they involve significant management judgments, assumptions and estimates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.45 Td (is included in our ) Tj ET Q q 0 0 0 rg BT 121.16 107.45 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 317.50 107.45 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.08 107.45 Td ( filed with the SEC. ) Tj ET Q q 0 0 0 rg BT 477.56 107.45 Td (There have been no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.45 Td (significant changes to our policies during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.24 95.45 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.24 95.45 Td (, except for our adoption of the revenue recognition and financial instruments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.45 Td (standards issued by the Financial ) Tj ET Q q 0 0 0 rg BT 183.65 83.45 Td (Accounting Standards Board ef) Tj ET Q q 0 0 0 rg BT 309.27 83.45 Td (fective on January 1, 2018.) Tj ET Q endstream endobj 97 0 obj <>] /Rotate 0 /Contents 98 0 R>> endobj 98 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (47) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.25 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 677.25 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.26 677.25 Td (fective January 1, 2018, we adopted ) Tj ET Q q 0 0 0 rg BT 227.32 677.25 Td (ASU No. 2014-09, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 305.38 677.25 Td (Revenue fr) Tj ET Q q 0 0 0 rg BT 348.04 677.25 Td (om Contracts with Customers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.72 677.25 Td (\(T) Tj ET Q q 0 0 0 rg BT 478.46 677.25 Td (opic 606\) \(“ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (No. 2014-09”\), using the modified retrospective approach, which requires a cumulative ef) Tj ET Q q 0 0 0 rg BT 409.20 665.25 Td (fect adjustment as of the date of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 653.25 Td (s adoption. Under the modified retrospective approach, an entity may also elect to apply this standard to either \(i\) all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td (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 461.61 641.25 Td (A) Tj ET Q q 0 0 0 rg BT 468.28 641.25 Td ( completed contract is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (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 432.60 629.25 Td ( that was in ef) Tj ET Q q 0 0 0 rg BT 488.51 629.25 Td (fect before the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.25 Td (date of initial application. ) Tj ET Q q 0 0 0 rg BT 154.56 617.25 Td (W) Tj ET Q q 0 0 0 rg BT 163.20 617.25 Td (e elected to apply this standard only to contracts that were not completed as of January 1, 2018. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 599.25 Td (Based on our evaluation of contracts within the scope of ) Tj ET Q q 0 0 0 rg BT 299.16 599.25 Td (ASU No. 2014-09, revenue that is impacted by ) Tj ET Q q 0 0 0 rg BT 489.13 599.25 Td (ASU No. 2014-09 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.25 Td (includes revenue generated by sales of real estate, other operating income and tenant reimbursements for substantial services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.25 Td (earned at our properties. ) Tj ET Q q 0 0 0 rg BT 149.00 575.25 Td (The recognition of such revenue will occur when the services are provided and the performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.25 Td (obligations are satisfied. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.58 563.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.57 563.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.01 563.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.68 563.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.50 563.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.33 563.25 Td (, tenant reimbursements for substantial services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.25 Td (accounted for under ) Tj ET Q q 0 0 0 rg BT 131.41 551.25 Td (ASU No. 2014-09 were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.89 551.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.79 551.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.22 551.25 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.12 551.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 398.78 551.25 Td (, which were included in tenant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.25 Td (reimbursements on the accompanying statements of operations. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 521.25 Td (Sale of Real Estate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 506.25 Td (Prior to January 1, 2018, gains on real estate sold were recognized using the full accrual method at closing when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (collectibility of the sales price was reasonably assured, we were not obligated to perform additional activities that may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (considered significant, the initial investment from the buyer was suf) Tj ET Q q 0 0 0 rg BT 321.47 482.25 Td (ficient and other profit recognition criteria had been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (satisfied. Gain on sales of real estate may have been deferred in whole or in part until the requirements for gain recognition had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (been met.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 440.25 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.26 440.25 Td (fective January 1, 2018, we adopted the guidance of ) Tj ET Q q 0 0 0 rg BT 291.46 440.25 Td (ASC 610-20, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 346.75 440.25 Td (Other Income - Gains and Losses fr) Tj ET Q q 0 0 0 rg BT 489.70 440.25 Td (om the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (Der) Tj ET Q q 0 0 0 rg BT 64.68 428.25 Td (ecognition of Nonfinancial ) Tj ET Q q 0 0 0 rg BT 174.21 428.25 Td (Assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.71 428.25 Td (\(“ASC 610-20”\), 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 49.50 416.25 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 437.37 416.25 Td (, our sales of real estate would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (be considered a sale of a nonfinancial asset as defined by ) Tj ET Q q 0 0 0 rg BT 279.69 404.25 Td (ASC 610-20.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 386.25 Td (ASC 610-20 refers to the revenue recognition principles under ) Tj ET Q q 0 0 0 rg BT 323.88 386.25 Td (ASU No. 2014-09. Under ) Tj ET Q q 0 0 0 rg BT 431.37 386.25 Td (ASC 610-20, if we determine it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (does not have a controlling financial interest in the entity that holds the asset and the arrangement meets the criteria to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (accounted for as a contract, we would derecognize the asset and recognize a gain or loss on the sale of the real estate when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.25 Td (control of the underlying asset transfers to the buyer) Tj ET Q q 0 0 0 rg BT 257.78 350.25 Td (. ) Tj ET Q q 0 0 0 rg BT 264.72 350.25 Td (As a result of the adoption of ) Tj ET Q q 0 0 0 rg BT 383.31 350.25 Td (ASC 610-20 on January 1, 2018, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.25 Td (recorded a cumulative ef) Tj ET Q q 0 0 0 rg BT 148.43 338.25 Td (fect adjustment to increase retained earnings by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.41 338.25 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.30 338.25 Td ( to recognize the deferred gain from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 326.25 Td (102) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.38 326.25 Td ( developable acres at Park Highlands that closed on May 1, 2017, as control of the sold acres had transferred to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (buyers at closing. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (Real Estate Equity Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 278.25 Td (Our real estate equity securities are carried at their estimated fair value based on quoted market prices for the security) Tj ET Q q 0 0 0 rg BT 541.42 278.25 Td (, net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.25 Td (of any discounts for restrictions on the sale of the security) Tj ET Q q 0 0 0 rg BT 280.46 266.25 Td (. ) Tj ET Q q 0 0 0 rg BT 284.91 266.25 Td (Any discount for lack of marketability is estimated using an option ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.25 Td (pricing model. ) Tj ET Q q 0 0 0 rg BT 110.14 254.25 Td (T) Tj ET Q q 0 0 0 rg BT 115.90 254.25 Td (ransaction costs that are directly attributable to the acquisition of real estate equity securities are capitalized to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.25 Td (its cost basis. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 224.25 Td (Prior to our adoption of ) Tj ET Q q 0 0 0 rg BT 168.38 224.25 Td (ASU No. 2016-01, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 246.44 224.25 Td (Financial Instruments - Overall \(Subtopic 825-10\): Recognition and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 212.25 Td (Measur) Tj ET Q q 0 0 0 rg BT 79.68 212.25 Td (ement of Financial ) Tj ET Q q 0 0 0 rg BT 157.54 212.25 Td (Assets and Financial Liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.98 212.25 Td (\(“ASU No. 2016-01”\) on January 1, 2018, we classified our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.25 Td (investments in real estate equity securities as available-for) Tj ET Q q 0 0 0 rg BT 282.27 200.25 Td (-sale and unrealized gains and losses were reported in accumulated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.25 Td (other comprehensive income \(loss\). Upon the sale of a security) Tj ET Q q 0 0 0 rg BT 300.99 188.25 Td (, the previously recognized unrealized gain \(loss\) would be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (reversed out of accumulated other comprehensive income \(loss\) and the actual realized gain \(loss\) recognized in earnings. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.25 Td (Ef) Tj ET Q q 0 0 0 rg BT 58.76 164.25 Td (fective January 1, 2018, unrealized gains and losses on real estate equity securities are recognized in earnings. ) Tj ET Q endstream endobj 99 0 obj <>] /Rotate 0 /Contents 100 0 R>> endobj 100 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 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 (48) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.25 Td (Investment in Unconsolidated Joint ) Tj ET Q q 0 0 0 rg BT 203.23 695.25 Td (V) Tj ET Q q 0 0 0 rg BT 209.53 695.25 Td (entur) Tj ET Q q 0 0 0 rg BT 232.68 695.25 Td (es) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (Equity Investment ) Tj ET Q q 0 0 0 rg BT 127.10 677.25 Td (W) Tj ET Q q 0 0 0 rg BT 135.62 677.25 Td (ithout Readily Determinable V) Tj ET Q q 0 0 0 rg BT 260.35 677.25 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 662.25 Td (Prior to the adoption of ) Tj ET Q q 0 0 0 rg BT 167.27 662.25 Td (ASU No. 2016-01 on January 1, 2018, we accounted for investments in unconsolidated joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (venture entities in which we did not have the ability to exercise significant influence and had virtually no influence over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (partnership operating and financial policies using the cost method of accounting. Under the cost method, income distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (from the partnership were recognized in other income. Distributions that exceed our share of earnings were applied to reduce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (the carrying value of our investment and any capital contributions increased the carrying value of our investment. On a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (quarterly basis, we evaluated our cost method investment in an unconsolidated joint venture for other) Tj ET Q q 0 0 0 rg BT 454.47 602.25 Td (-than-temporary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (impairments. ) Tj ET Q q 0 0 0 rg BT 106.81 590.25 Td (The fair value of a cost method investment was not estimated if there were no identified events or changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (circumstances that indicated a significant adverse ef) Tj ET Q q 0 0 0 rg BT 257.56 578.25 Td (fect on the fair value of the investment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 560.25 Td (In accordance with ) Tj ET Q q 0 0 0 rg BT 150.02 560.25 Td (ASU No. 2016-01, we may elect to measure an equity investment without a readily determinable value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (that does not qualify for the practical expedient to estimate fair value using the net asset value per share, at its cost minus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (impairment, if any) Tj ET Q q 0 0 0 rg BT 123.00 536.25 Td (, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (similar investment of the same issuer) Tj ET Q q 0 0 0 rg BT 197.53 524.25 Td (. ) Tj ET Q q 0 0 0 rg BT 204.85 524.25 Td (W) Tj ET Q q 0 0 0 rg BT 213.48 524.25 Td (e elected to measure our investment in the NIP) Tj ET Q q 0 0 0 rg BT 400.28 524.25 Td ( Joint ) Tj ET Q q 0 0 0 rg BT 424.54 524.25 Td (V) Tj ET Q q 0 0 0 rg BT 430.66 524.25 Td (enture in accordance with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (above guidance, applying it prospectively) Tj ET Q q 0 0 0 rg BT 215.75 512.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (Subsequent Events) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 476.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 476.25 Td (e evaluate subsequent events up until the date the consolidated financial statements are issued. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (Partial Real Estate Land Sale Subsequent to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 234.80 458.25 Td (June 30, 2018) Tj ET Q BT /F4 10.00 Tf ET 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 72 441.9169921875 m 135.6083984375 441.9169921875 l s q 0 0 0 rg BT 72.00 443.25 Td (Park Highlands) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 428.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 428.25 Td (July 2, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.89 428.25 Td (, we sold approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.48 428.25 Td (83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.48 428.25 Td ( developable acres of Park Highlands undeveloped land for an aggregate sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (price, net of closing credits, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.90 416.25 Td ($18.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.80 416.25 Td (, excluding closing costs. ) Tj ET Q q 0 0 0 rg BT 330.94 416.25 Td (The purchasers are not af) Tj ET Q q 0 0 0 rg BT 431.81 416.25 Td (filiated with us or our advisor) Tj ET Q q 0 0 0 rg BT 549.85 416.25 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (Real Estate Disposition Subsequent to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 208.69 398.25 Td (June 30, 2018) Tj ET Q BT /F4 10.00 Tf ET 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 72 381.9169921875 m 139.5 381.9169921875 l s q 0 0 0 rg BT 72.00 383.25 Td (Central Building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 368.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 368.25 Td (July 17, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.89 368.25 Td (, we sold the Central Building to a purchaser unaf) Tj ET Q q 0 0 0 rg BT 339.55 368.25 Td (filiated with us or our advisor) Tj ET Q q 0 0 0 rg BT 457.74 368.25 Td (, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.90 368.25 Td ($67.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.79 368.25 Td ( before ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (closing costs and credits. ) Tj ET Q q 0 0 0 rg BT 151.43 356.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.87 356.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.70 356.25 Td (, the carrying value of the Central Building was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.43 356.25 Td ($32.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.32 356.25 Td (, which was net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.25 Td ($5.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 344.25 Td ( of accumulated depreciation and amortization.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 326.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 326.25 Td (July 17, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.89 326.25 Td (, in connection with the disposition of the Central Building, we repaid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.06 326.25 Td ($27.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.96 326.25 Td ( of the outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (principal balance due under the Central Building mortgage loan.) Tj ET Q endstream endobj 101 0 obj <>] /Rotate 0 /Contents 102 0 R>> endobj 102 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 3. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Quantitative and Qualitative Disclosur) Tj ET Q q 0 0 0 rg BT 255.60 730.60 Td (es about Market Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 704.10 Td (e are exposed to the ef) Tj ET Q q 0 0 0 rg BT 170.13 704.10 Td (fects of interest rate changes as a result of borrowings used to maintain liquidity) Tj ET Q q 0 0 0 rg BT 489.68 704.10 Td (, fund ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (distributions and to fund the refinancing of our real estate investment portfolio and operations. ) Tj ET Q q 0 0 0 rg BT 429.50 692.10 Td (W) Tj ET Q q 0 0 0 rg BT 438.14 692.10 Td (e may also be exposed to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 680.10 Td (fects of changes in interest rates as a result of the acquisition and origination of mortgage, mezzanine, bridge and other loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (and the acquisition of real estate securities. ) Tj ET Q q 0 0 0 rg BT 223.70 668.10 Td (W) Tj ET Q q 0 0 0 rg BT 232.34 668.10 Td (e are also exposed to the ef) Tj ET Q q 0 0 0 rg BT 340.44 668.10 Td (fects of foreign currency changes in Israel with respect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (to the 4.25% bonds issued to investors in Israel in March 2016. Our profitability and the value of our investment portfolio may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (be adversely af) Tj ET Q q 0 0 0 rg BT 109.84 644.10 Td (fected during any period as a result of interest rate changes and foreign currency changes. Our interest rate risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (management objectives are to limit the impact of interest rate changes on earnings, prepayment penalties and cash flows and to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (lower overall borrowing costs. ) Tj ET Q q 0 0 0 rg BT 174.01 620.10 Td (W) Tj ET Q q 0 0 0 rg BT 182.65 620.10 Td (e may manage interest rate risk by maintaining a ratio of fixed rate, long-term debt such that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (floating rate exposure is kept at an acceptable level. In addition, we may utilize a variety of financial instruments, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (interest rate caps, floors, and swap agreements, in order to limit the ef) Tj ET Q q 0 0 0 rg BT 328.39 596.10 Td (fects of changes in interest rates on our operations. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (order to limit the ef) Tj ET Q q 0 0 0 rg BT 127.07 584.10 Td (fects of changes in foreign currency on our operations, we may utilize a variety of foreign currency hedging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (strategies such as cross currency swaps, forward contracts, puts or calls. ) Tj ET Q q 0 0 0 rg BT 339.78 572.10 Td (When we use these types of derivatives to hedge the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (risk of interest-earning assets or interest-bearing liabilities, we may be subject to certain risks, including the risk that losses on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (hedge position will reduce the funds available for payments to holders of our common stock and that the losses may exceed the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (amount we invested in the instruments. ) Tj ET Q q 0 0 0 rg BT 208.09 536.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 257.99 536.10 Td (, certain of these strategies may cause us to fund a mar) Tj ET Q q 0 0 0 rg BT 476.06 536.10 Td (gin account ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (periodically to of) Tj ET Q q 0 0 0 rg BT 118.19 524.10 Td (fset changes in foreign currency rates which may also reduce the funds available for payments to holders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (our common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 494.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 494.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 494.10 Td (, we had entered into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.35 494.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.79 494.10 Td ( foreign currency option, a USD put/ILS call option, to hedge against a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (change in the exchange rate of the Israeli new Shekel versus the U.S. Dollar) Tj ET Q q 0 0 0 rg BT 353.01 482.10 Td (. ) Tj ET Q q 0 0 0 rg BT 357.83 482.10 Td (The foreign currency option expired in ) Tj ET Q q 0 0 0 rg BT 514.99 482.10 Td (August ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (2018 and had an aggregate U.S. Dollar notional amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.11 470.10 Td ($285.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.00 470.10 Td (. ) Tj ET Q q 0 0 0 rg BT 349.82 470.10 Td (W) Tj ET Q q 0 0 0 rg BT 358.46 470.10 Td (e had the right, but not the obligation, to purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.28 458.10 Td (970.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.17 458.10 Td ( Israeli Shekels at the rate of ILS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.01 458.10 Td (3.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.51 458.10 Td ( per USD.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 440.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 440.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 440.10 Td (, we held ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.15 440.10 Td (0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.04 440.10 Td ( Israeli new Shekels and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.73 440.10 Td (21.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.63 440.10 Td ( Israeli new Shekels in cash and restricted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (cash, respectively) Tj ET Q q 0 0 0 rg BT 119.93 428.10 Td (. In addition, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.19 428.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.02 428.10 Td (, we had bonds outstanding and the related interest payable in the amounts of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (970.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 416.10 Td ( Israeli new Shekels and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.08 416.10 Td (13.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.98 416.10 Td ( Israeli new Shekels, respectively) Tj ET Q q 0 0 0 rg BT 384.89 416.10 Td (. Foreign currency exchange rate risk is the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (possibility that our financial results could be better or worse than planned because of changes in foreign currency exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (rates. Based solely on the remeasurement for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.38 392.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.04 392.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.87 392.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.70 392.10 Td (, if foreign currency exchange rates were to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (increase or decrease by 10%, our net income would increase or decrease by approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.07 380.10 Td ($23.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.96 380.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.40 380.10 Td ($29.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.29 380.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (the same period, respectively) Tj ET Q q 0 0 0 rg BT 165.47 368.10 Td (. ) Tj ET Q q 0 0 0 rg BT 170.29 368.10 Td (The foreign currency transaction income or loss as a result of the change in foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (exchange rates does not take into account any gains or losses on our foreign currency option as a result of such change, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (would reduce our foreign currency exposure.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 326.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 326.10 Td (e borrow funds at a combination of fixed and variable rates. Interest rate fluctuations will generally not af) Tj ET Q q 0 0 0 rg BT 502.53 326.10 Td (fect our future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (earnings or cash flows on our fixed rate debt unless such instruments mature or are otherwise terminated. However) Tj ET Q q 0 0 0 rg BT 508.96 314.10 Td (, interest rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (changes will af) Tj ET Q q 0 0 0 rg BT 109.85 302.10 Td (fect the fair value of our fixed rate instruments. ) Tj ET Q q 0 0 0 rg BT 300.89 302.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.33 302.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.17 302.10 Td (, the fair value of our KBS SOR \(BVI\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (Holdings, Ltd. Series ) Tj ET Q q 0 0 0 rg BT 136.44 290.10 Td (A) Tj ET Q q 0 0 0 rg BT 143.11 290.10 Td ( Debentures was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.70 290.10 Td ($274.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.59 290.10 Td ( and the outstanding principal balance was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.04 290.10 Td ($265.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.93 290.10 Td (. ) Tj ET Q q 0 0 0 rg BT 506.38 290.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 278.10 Td (, excluding the KBS SOR \(BVI\) Holdings, Ltd. Series ) Tj ET Q q 0 0 0 rg BT 324.21 278.10 Td (A) Tj ET Q q 0 0 0 rg BT 330.88 278.10 Td ( Debentures, the fair value of our fixed rate debt was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td ($31.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 266.10 Td ( and the outstanding principal balance of our fixed rate debt was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.75 266.10 Td ($30.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.64 266.10 Td (. ) Tj ET Q q 0 0 0 rg BT 421.46 266.10 Td (The fair value estimate of our KBS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (SOR \(BVI\) Holdings, Ltd. Series ) Tj ET Q q 0 0 0 rg BT 184.78 254.10 Td (A) Tj ET Q q 0 0 0 rg BT 191.45 254.10 Td ( Debentures was calculated using the quoted bond price as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.31 254.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.14 254.10 Td ( on the ) Tj ET Q q 0 0 0 rg BT 523.68 254.10 Td (T) Tj ET Q q 0 0 0 rg BT 529.09 254.10 Td (el ) Tj ET Q q 0 0 0 rg BT 538.25 254.10 Td (A) Tj ET Q q 0 0 0 rg BT 544.73 254.10 Td (viv ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (Stock Exchange of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.53 242.10 Td (103.32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.03 242.10 Td ( Israeli new Shekels. ) Tj ET Q q 0 0 0 rg BT 240.11 242.10 Td (The fair value estimate of our fixed rate debt was calculated using a discounted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (cash flow analysis utilizing rates we would expect to pay for debt of a similar type and remaining maturity if the loans were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (originated as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.20 218.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.03 218.10 Td (. ) Tj ET Q q 0 0 0 rg BT 174.48 218.10 Td (As we expect to hold our fixed rate instruments to maturity and the amounts due under such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (instruments would be limited to the outstanding principal balance and any accrued and unpaid interest, we do not expect that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (fluctuations in interest rates, and the resulting changes in fair value of our fixed rate instruments, would have a significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (impact on our operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 164.10 Td (Conversely) Tj ET Q q 0 0 0 rg BT 116.90 164.10 Td (, movements in interest rates on variable rate debt would change our future earnings and cash flows, but would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (not significantly af) Tj ET Q q 0 0 0 rg BT 124.86 152.10 Td (fect the fair value of those instruments. However) Tj ET Q q 0 0 0 rg BT 319.94 152.10 Td (, changes in required risk premiums would result in changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (in the fair value of floating rate instruments. ) Tj ET Q q 0 0 0 rg BT 228.06 140.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.50 140.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.33 140.10 Td (, we were exposed to market risks related to fluctuations in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (interest rates on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.31 128.10 Td ($481.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.20 128.10 Td ( of variable rate debt outstanding. ) Tj ET Q q 0 0 0 rg BT 310.55 128.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.99 128.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.82 128.10 Td (, we had entered into one interest rate cap ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (with a notional amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.32 116.10 Td ($46.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.21 116.10 Td ( that ef) Tj ET Q q 0 0 0 rg BT 236.79 116.10 Td (fectively limits one-month LIBOR at 3.0% ef) Tj ET Q q 0 0 0 rg BT 418.51 116.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.22 116.10 Td (February 21, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.81 116.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (February 13, 2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.10 104.10 Td ( and one interest rate cap with a notional amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.09 104.10 Td ($77.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.98 104.10 Td ( that ef) Tj ET Q q 0 0 0 rg BT 412.56 104.10 Td (fectively limits one-month LIBOR at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.10 Td (3.5% ef) Tj ET Q q 0 0 0 rg BT 80.42 92.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.57 92.10 Td (April 2, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.18 92.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.79 92.10 Td (March 5, 2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.38 92.10 Td (. Based on interest rates as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.79 92.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.62 92.10 Td (, if interest rates were 100 basis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.10 Td (points higher or lower during the 12 months ending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.08 80.10 Td (June 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.91 80.10 Td (, interest expense on our variable rate debt would increase or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 68.10 Td (decrease, respectively) Tj ET Q q 0 0 0 rg BT 136.58 68.10 Td (, by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.08 68.10 Td ($4.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.97 68.10 Td (. ) Tj ET Q endstream endobj 103 0 obj <>] /Rotate 0 /Contents 104 0 R>> endobj 104 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 3. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Quantitative and Qualitative Disclosur) Tj ET Q q 0 0 0 rg BT 255.60 730.60 Td (es about Market Risk \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (The weighted-average interest rates of our fixed rate debt and variable rate debt as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.34 704.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.17 704.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.60 704.10 Td (4.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.43 704.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.87 704.10 Td (4.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.70 704.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 692.10 Td (. ) Tj ET Q q 0 0 0 rg BT 101.98 692.10 Td (The interest rate and weighted-average interest rate represent the actual interest rate in ef) Tj ET Q q 0 0 0 rg BT 456.89 692.10 Td (fect as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.04 692.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.87 692.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (\(consisting of the contractual interest rate and the ef) Tj ET Q q 0 0 0 rg BT 257.01 680.10 Td (fect of contractual floor rates, if applicable\), using interest rate indices as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 668.10 Td ( where applicable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 650.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 650.10 Td (e are exposed to financial market risk with respect to our real estate equity securities. Financial market risk is the risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (that we will incur economic losses due to adverse changes in our real estate equity security prices. Our exposure to changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (real estate equity security prices is a result of our investment in these types of securities. Market prices are subject to fluctuation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (and, therefore, the amount realized in the subsequent sale of an investment may significantly dif) Tj ET Q q 0 0 0 rg BT 433.64 614.10 Td (fer from the reported market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (value. Fluctuation in the market prices of a real estate equity security may result from any number of factors, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (perceived changes in the underlying fundamental characteristics of the issuer) Tj ET Q q 0 0 0 rg BT 357.03 590.10 Td (, the relative price of alternative investments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (interest rates, default rates and general market conditions. In addition, amounts realized in the sale of a particular security may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (be af) Tj ET Q q 0 0 0 rg BT 69.03 566.10 Td (fected by the relative quantity of the real estate equity security being sold. ) Tj ET Q q 0 0 0 rg BT 367.07 566.10 Td (W) Tj ET Q q 0 0 0 rg BT 375.71 566.10 Td (e do not currently engage in derivative or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (other hedging transactions to manage our real estate equity security price risk. ) Tj ET Q q 0 0 0 rg BT 363.56 554.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.01 554.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.84 554.10 Td (, we owned real estate equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (securities with a book value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.47 542.10 Td ($98.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.36 542.10 Td (. Based solely on the prices of real estate equity securities for the three months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 530.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 530.10 Td (, if prices were to increase or decrease by 10%, our net income would increase or decrease, respectively) Tj ET Q q 0 0 0 rg BT 545.87 530.10 Td (, by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 518.10 Td ($9.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.65 518.10 Td (.) Tj ET Q endstream endobj 105 0 obj <>] /Rotate 0 /Contents 106 0 R>> endobj 106 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 4. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Contr) Tj ET Q q 0 0 0 rg BT 115.87 730.60 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 159.03 730.60 Td (ocedur) Tj ET Q q 0 0 0 rg BT 188.29 730.60 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (51) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td (Disclosur) Tj ET Q q 0 0 0 rg BT 89.82 713.25 Td (e Contr) Tj ET Q q 0 0 0 rg BT 122.13 713.25 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 165.29 713.25 Td (ocedur) Tj ET Q q 0 0 0 rg BT 194.55 713.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 695.25 Td (As of the end of the period covered by this report, management, including our principal executive of) Tj ET Q q 0 0 0 rg BT 475.36 695.25 Td (ficer and principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 683.25 Td (financial of) Tj ET Q q 0 0 0 rg BT 95.63 683.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 113.54 683.25 Td (, evaluated the ef) Tj ET Q q 0 0 0 rg BT 181.66 683.25 Td (fectiveness of the design and operation of our disclosure controls and procedures. Based upon, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 671.25 Td (and as of the date of, the evaluation, our principal executive of) Tj ET Q q 0 0 0 rg BT 300.00 671.25 Td (ficer and principal financial of) Tj ET Q q 0 0 0 rg BT 421.43 671.25 Td (ficer concluded that the disclosure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 659.25 Td (controls and procedures were ef) Tj ET Q q 0 0 0 rg BT 177.54 659.25 Td (fective as of the end of the period covered by this report to ensure that information required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 647.25 Td (be disclosed in the reports we file and submit under the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 356.86 647.25 Td (Act of 1934, as amended \(the “Exchange ) Tj ET Q q 0 0 0 rg BT 522.91 647.25 Td (Act”\) is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 635.25 Td (recorded, processed, summarized and reported as and when required. Disclosure controls and procedures include, without ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 623.25 Td (limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 611.25 Td (submit under the Exchange ) Tj ET Q q 0 0 0 rg BT 161.08 611.25 Td (Act is accumulated and communicated to our management, including our principal executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 599.25 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 599.25 Td (ficer and our principal financial of) Tj ET Q q 0 0 0 rg BT 195.41 599.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 213.32 599.25 Td (, as appropriate to allow timely decisions regarding required disclosure. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 581.25 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 112.87 581.25 Td (ol Over) Tj ET Q q 0 0 0 rg BT 144.62 581.25 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 563.25 Td (There have been no changes in our internal control over financial reporting that occurred during our last fiscal quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 551.25 Td (that have materially af) Tj ET Q q 0 0 0 rg BT 139.50 551.25 Td (fected, or are reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 326.45 551.25 Td (fect, our internal control over financial reporting.) Tj ET Q endstream endobj 107 0 obj <>] /Rotate 0 /Contents 108 0 R>> endobj 108 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( II. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.26 748.60 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (52) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 719.25 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 719.25 Td (Legal Pr) Tj ET Q q 0 0 0 rg BT 127.25 719.25 Td (oceedings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 701.25 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (Item 1A. ) Tj ET Q q 0 0 0 rg BT 90.00 677.25 Td (Risk Factors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 659.25 Td (Please see the risks discussed in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 263.47 659.25 Td ( of our ) Tj ET Q q 0 0 0 rg BT 292.07 659.25 Td (Annual Report on Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.41 659.25 Td (December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 647.25 Td ( and in Part II, Item IA) Tj ET Q q 0 0 0 rg BT 160.31 647.25 Td ( of our Quarterly Report on Form 10-Q for the period ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.03 647.25 Td (March 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.62 647.25 Td (, both as filed with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.25 Td (SEC. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 45.00 611.25 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 85.50 611.25 Td (Unr) Tj ET Q q 0 0 0 rg BT 102.54 611.25 Td (egister) Tj ET Q q 0 0 0 rg BT 130.68 611.25 Td (ed Sales of Equity Securities and Use of Pr) Tj ET Q q 0 0 0 rg BT 311.60 611.25 Td (oceeds) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 593.25 Td (a\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 593.25 Td (During the period covered by this Form 10-Q, we did not sell any equity securities that were not registered under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 581.25 Td (the Securities ) Tj ET Q q 0 0 0 rg BT 164.10 581.25 Td (Act of 1933.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 563.25 Td (b\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 563.25 Td (Not applicable. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 545.25 Td (c\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 545.25 Td (W) Tj ET Q q 0 0 0 rg BT 116.64 545.25 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 108.00 533.25 Td (circumstances.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 515.25 Td (Pursuant to the share redemption program there are several limitations on our ability to redeem shares: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 497.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 497.25 Td (Unless the shares are being redeemed in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 409.61 497.25 Td (’) Tj ET Q q 0 0 0 rg BT 412.39 497.25 Td (s death, “qualifying disability” or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 485.25 Td (“determination of incompetence” \(each as defined under the share redemption program\), we may not redeem ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 473.25 Td (shares until the stockholder has held the shares for one year) Tj ET Q q 0 0 0 rg BT 363.71 473.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 458.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 458.25 Td (During any calendar year) Tj ET Q q 0 0 0 rg BT 226.94 458.25 Td (, we may redeem no more than 5% of the weighted-average number of shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 446.25 Td (outstanding during the prior calendar year) Tj ET Q q 0 0 0 rg BT 293.45 446.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 431.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 431.25 Td (W) Tj ET Q q 0 0 0 rg BT 134.64 431.25 Td (e have no obligation to redeem shares if the redemption would violate the restrictions on distributions under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 419.25 Td (Maryland law) Tj ET Q q 0 0 0 rg BT 181.17 419.25 Td (, which prohibits distributions that would cause a corporation to fail to meet statutory tests of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 407.25 Td (solvency) Tj ET Q q 0 0 0 rg BT 160.90 407.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 392.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 392.25 Td (During each calendar year) Tj ET Q q 0 0 0 rg BT 230.81 392.25 Td (, redemptions are limited to the amount of net proceeds from the sale of shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 380.25 Td (under our dividend reinvestment plan during the prior calendar year) Tj ET Q q 0 0 0 rg BT 396.74 380.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 365.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 365.25 Td (W) Tj ET Q q 0 0 0 rg BT 134.64 365.25 Td (e may not redeem more than $3.0 million of shares in a given quarter \(excluding shares redeemed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 353.25 Td (connection with a stockholder) Tj ET Q q 0 0 0 rg BT 246.62 353.25 Td (’) Tj ET Q q 0 0 0 rg BT 249.39 353.25 Td (s death, “qualifying disability” or “determination of incompetence”\). ) Tj ET Q q 0 0 0 rg BT 526.89 353.25 Td (T) Tj ET Q q 0 0 0 rg BT 532.30 353.25 Td (o the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 341.25 Td (extent that we redeem less than $3.0 million of shares \(excluding shares redeemed in connection with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 329.25 Td (stockholder) Tj ET Q q 0 0 0 rg BT 173.03 329.25 Td (’) Tj ET Q q 0 0 0 rg BT 175.80 329.25 Td (s death, “qualifying disability” or “determination of incompetence”\) in a given fiscal quarter) Tj ET Q q 0 0 0 rg BT 544.99 329.25 Td (, any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 317.25 Td (remaining excess capacity to redeem shares in such fiscal quarter will be added to our capacity to otherwise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 305.25 Td (redeem shares \(excluding shares redeemed in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 430.42 305.25 Td (’) Tj ET Q q 0 0 0 rg BT 433.20 305.25 Td (s death, “qualifying disability” or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 293.25 Td (“determination of incompetence”\) during succeeding fiscal quarters. ) Tj ET Q q 0 0 0 rg BT 401.82 293.25 Td (The last $1.0 million of net proceeds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 281.25 Td (from the dividend reinvestment plan during the prior year is reserved exclusively for shares redeemed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 269.25 Td (connection with a stockholder) Tj ET Q q 0 0 0 rg BT 246.62 269.25 Td (’) Tj ET Q q 0 0 0 rg BT 249.39 269.25 Td (s death, “qualifying disability) Tj ET Q q 0 0 0 rg BT 367.05 269.25 Td (,” or “determination of incompetence” with any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 257.25 Td (excess funds being available to redeem shares not requested in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 499.31 257.25 Td (’) Tj ET Q q 0 0 0 rg BT 502.08 257.25 Td (s death, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 245.25 Td (“qualifying disability or “determination of incompetence” during the December redemption date in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 233.25 Td (current year) Tj ET Q q 0 0 0 rg BT 173.47 233.25 Td (. ) Tj ET Q q 0 0 0 rg BT 178.29 233.25 Td (T) Tj ET Q q 0 0 0 rg BT 183.70 233.25 Td (o the extent that, in the last month of any calendar year) Tj ET Q q 0 0 0 rg BT 403.22 233.25 Td (, the amount of special redemption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 221.25 Td (requests is less than the amount of available funds reserved for special redemptions in accordance with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 209.25 Td (previous sentence, any excess funds may be used for all other redemptions during such month. ) Tj ET Q q 0 0 0 rg BT 506.56 209.25 Td (W) Tj ET Q q 0 0 0 rg BT 515.19 209.25 Td (e may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 197.25 Td (increase or decrease this limit upon ten business days’) Tj ET Q q 0 0 0 rg BT 341.86 197.25 Td ( notice to stockholders. Our board of directors may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 185.25 Td (approve an increase in this limit to the extent that we have received proceeds from asset sales or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 173.25 Td (refinancing of debt or for any other reason deemed appropriate by the board of directors. Based on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 161.25 Td (amount of net proceeds raised from the sale of shares under our dividend reinvestment plan during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.55 161.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.55 161.25 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 149.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.83 149.25 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.93 149.25 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.82 149.25 Td ( available for all share redemption requests for the remainder of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.21 149.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.21 149.25 Td (. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 137.25 Td (August 9, 2018, our board of directors approved an additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.94 137.25 Td ($6.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.83 137.25 Td ( of funds available for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 125.25 Td (redemption of shares in 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 104.25 Td (W) Tj ET Q q 0 0 0 rg BT 134.64 104.25 Td (e may amend, suspend or terminate the program upon 10 business days’) Tj ET Q q 0 0 0 rg BT 422.16 104.25 Td ( notice to our stockholders. ) Tj ET Q q 0 0 0 rg BT 533.07 104.25 Td (W) Tj ET Q q 0 0 0 rg BT 541.71 104.25 Td (e may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 92.25 Td (provide notice to our stockholders by including such information in a Current Report on Form 8-K or in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 80.25 Td (annual or quarterly reports, all publicly filed with the SEC, or by a separate mailing to our stockholders. ) Tj ET Q endstream endobj 109 0 obj <>] /Rotate 0 /Contents 110 0 R>> endobj 110 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 754.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 754.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 754.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 754.60 Td ( II. ) Tj ET Q q 0 0 0 rg BT 90.50 754.60 Td (OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.26 754.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 736.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 736.60 Td (Unr) Tj ET Q q 0 0 0 rg BT 107.54 736.60 Td (egister) Tj ET Q q 0 0 0 rg BT 135.68 736.60 Td (ed Sales of Equity Securities and Use of Pr) Tj ET Q q 0 0 0 rg BT 316.60 736.60 Td (oceeds \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 713.10 Td (In anticipation of a self-tender of) Tj ET Q q 0 0 0 rg BT 257.71 713.10 Td (fer in order to make liquidity available to stockholders in excess of that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 701.10 Td (permitted under the share redemption program, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.82 701.10 Td (March 14, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.42 701.10 Td (, our board of directors approved a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 689.10 Td (temporary suspension of the share redemption program starting with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.04 689.10 Td (March 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.64 689.10 Td ( redemption period, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 677.10 Td (including any unsatisfied requests from prior redemption periods. In connection with its approval of the Self-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 665.10 Td (T) Tj ET Q q 0 0 0 rg BT 131.41 665.10 Td (ender \(defined below\), our board of directors approved the reopening of the share redemption program for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 653.10 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.72 653.10 Td (June 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.55 653.10 Td ( redemption period, meaning no redemptions were made in March, ) Tj ET Q q 0 0 0 rg BT 450.91 653.10 Td (April or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.35 653.10 Td (May 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.18 653.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 641.10 Td (\(including those requested following a stockholder) Tj ET Q q 0 0 0 rg BT 329.38 641.10 Td (’) Tj ET Q q 0 0 0 rg BT 332.16 641.10 Td (s death, qualifying disability or determination of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 629.10 Td (incompetence\). ) Tj ET Q q 0 0 0 rg BT 189.68 629.10 Td (W) Tj ET Q q 0 0 0 rg BT 198.31 629.10 Td (e cancelled all outstanding redemption requests under the share redemption program and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 617.10 Td (did not accept any redemption requests under the share redemption program during the term of the Self-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 605.10 Td (T) Tj ET Q q 0 0 0 rg BT 131.41 605.10 Td (ender) Tj ET Q q 0 0 0 rg BT 153.07 605.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 587.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.17 587.10 Td (April 23, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.78 587.10 Td (, we commenced a self-tender of) Tj ET Q q 0 0 0 rg BT 329.09 587.10 Td (fer \(the “Self-T) Tj ET Q q 0 0 0 rg BT 390.02 587.10 Td (ender”\) for up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.44 587.10 Td (8,234,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.44 587.10 Td ( shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 575.10 Td (common stock at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.07 575.10 Td ($10.93) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.57 575.10 Td ( per share, or approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.53 575.10 Td ($90.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.42 575.10 Td ( of shares. ) Tj ET Q q 0 0 0 rg BT 476.56 575.10 Td (W) Tj ET Q q 0 0 0 rg BT 485.20 575.10 Td (e increased the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 563.10 Td (number of shares accepted for payment in the Self-T) Tj ET Q q 0 0 0 rg BT 335.78 563.10 Td (ender by up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.76 563.10 Td (1,294,910) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.76 563.10 Td ( shares at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.72 563.10 Td ($10.93) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.22 563.10 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 551.10 Td (share, or approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.19 551.10 Td ($14.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.08 551.10 Td ( of shares. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.12 551.10 Td (June 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.95 551.10 Td (, we accepted for purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.78 551.10 Td (9,527,724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.78 551.10 Td ( shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 539.10 Td (at a purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.01 539.10 Td ($10.93) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.51 539.10 Td ( per share, or approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.46 539.10 Td ($104.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.36 539.10 Td ( of shares, excluding fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 527.10 Td (expenses related to the Self-T) Tj ET Q q 0 0 0 rg BT 244.14 527.10 Td (ender) Tj ET Q q 0 0 0 rg BT 265.80 527.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 509.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.55 509.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.22 509.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.04 509.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.87 509.10 Td (, we fulfilled redemption requests eligible for redemption under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 497.10 Td (our share redemption program and received in good order and funded redemptions under our share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 485.10 Td (redemption program with the net proceeds from our dividend reinvestment plan and cash on hand. ) Tj ET Q q 0 0 0 rg BT 521.26 485.10 Td (W) Tj ET Q q 0 0 0 rg BT 529.90 485.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 473.10 Td (redeemed shares pursuant to our share redemption program as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 126.50 435.60 68.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 435.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.50 435.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 435.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 435.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 435.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 435.60 183.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 126.50 411.60 68.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 411.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.50 411.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 411.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 411.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 411.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 411.60 183.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 126.50 387.60 68.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 387.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.50 387.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 387.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 387.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 387.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 387.60 183.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 126.50 363.60 68.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 363.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 198.50 363.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 296.50 363.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 363.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 363.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 363.60 183.00 -12.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 126.5 435.6 m 194.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 435.6 m 296.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 435.6 m 398.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 435.6 m 585.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 126.5 435.6 m 194.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 363.6 m 296.5 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 352.6 m 296.5 352.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 350.6 m 296.5 350.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 148.40 439.83 Td (Month) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 223.10 447.83 Td (T) Tj ET Q q 0 0 0 rg BT 227.70 447.83 Td (otal Number) Tj ET Q q 0 0 0 rg BT 270.89 447.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 212.40 439.83 Td (of Shar) Tj ET Q q 0 0 0 rg BT 237.37 439.83 Td (es Redeemed) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 281.58 443.46 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 316.40 447.83 Td (A) Tj ET Q q 0 0 0 rg BT 321.58 447.83 Td (verage Price Paid ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 328.45 439.83 Td (Per) Tj ET Q q 0 0 0 rg BT 340.29 439.83 Td ( Shar) Tj ET Q q 0 0 0 rg BT 358.60 439.83 Td (e) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 362.15 443.46 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.85 447.83 Td (Appr) Tj ET Q q 0 0 0 rg BT 423.93 447.83 Td (oximate Dollar) Tj ET Q q 0 0 0 rg BT 474.66 447.83 Td ( ) Tj ET Q q 0 0 0 rg BT 476.52 447.83 Td (V) Tj ET Q q 0 0 0 rg BT 481.56 447.83 Td (alue of Shar) Tj ET Q q 0 0 0 rg BT 522.75 447.83 Td (es ) Tj ET Q q 0 0 0 rg BT 530.98 447.83 Td (A) Tj ET Q q 0 0 0 rg BT 536.16 447.83 Td (vailable ) Tj ET Q q 0 0 0 rg BT 564.68 447.83 Td (That) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.70 439.83 Td (May ) Tj ET Q q 0 0 0 rg BT 437.95 439.83 Td (Y) Tj ET Q q 0 0 0 rg BT 442.84 439.83 Td (et Be Redeemed Under) Tj ET Q q 0 0 0 rg BT 521.12 439.83 Td ( the Pr) Tj ET Q q 0 0 0 rg BT 544.08 439.83 Td (ogram) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.00 427.55 Td (January 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 267.30 427.55 Td (407,046) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.00 427.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.30 427.55 Td (10.97) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 490.45 431.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.00 415.55 Td (February 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 271.30 415.55 Td (12,526) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.00 415.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.30 415.55 Td (1) Tj ET Q q 0 0 0 rg BT 381.30 415.55 Td (1.50) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 490.45 419.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.00 403.55 Td (March 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.30 403.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.00 403.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 387.30 403.55 Td (—) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 490.45 407.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.00 391.55 Td (April 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.30 391.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.00 391.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 387.30 391.55 Td (—) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 490.45 395.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.00 379.55 Td (May 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.30 379.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.00 379.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 387.30 379.55 Td (—) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 490.45 383.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.00 367.55 Td (June 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 267.30 367.55 Td (577,203) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.00 367.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.30 367.55 Td (10.95) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 490.45 371.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 141.00 355.55 Td (T) Tj ET Q q 0 0 0 rg BT 145.33 355.55 Td (otal) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 267.30 355.55 Td (996,775) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 342.50 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 126.00 333.52 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 133.36 329.90 Td (On December 8, 2016, our board of directors adopted a tenth amended and restated share redemption program \(the “T) Tj ET Q q 0 0 0 rg BT 510.44 329.90 Td (enth ) Tj ET Q q 0 0 0 rg BT 525.77 329.90 Td (Amended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 320.30 Td (Share Redemption Program”\). Pursuant to the ) Tj ET Q q 0 0 0 rg BT 274.94 320.30 Td (T) Tj ET Q q 0 0 0 rg BT 279.27 320.30 Td (enth ) Tj ET Q q 0 0 0 rg BT 294.60 320.30 Td (Amended Share Redemption Program, except for redemptions made upon a ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 310.70 Td (stockholder) Tj ET Q q 0 0 0 rg BT 163.62 310.70 Td (’) Tj ET Q q 0 0 0 rg BT 165.84 310.70 Td (s death, “qualifying disability” or “determination of incompetence,” the price at which we will redeem shares is 95% of our ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 301.10 Td (most recent estimated value per share as of the applicable redemption date. ) Tj ET Q q 0 0 0 rg BT 369.76 301.10 Td (The ) Tj ET Q q 0 0 0 rg BT 384.05 301.10 Td (T) Tj ET Q q 0 0 0 rg BT 388.38 301.10 Td (enth ) Tj ET Q q 0 0 0 rg BT 403.71 301.10 Td (Amended Share Redemption Program was ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 291.50 Td (ef) Tj ET Q q 0 0 0 rg BT 132.07 291.50 Td (fective on December 30, 2016. ) Tj ET Q q 0 0 0 rg BT 232.55 291.50 Td (The ) Tj ET Q q 0 0 0 rg BT 246.85 291.50 Td (T) Tj ET Q q 0 0 0 rg BT 251.18 291.50 Td (enth ) Tj ET Q q 0 0 0 rg BT 266.51 291.50 Td (Amended Share Redemption Program was suspended from ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 291.50 Td (March 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.68 291.50 Td ( through ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 525.57 291.50 Td (May 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.23 291.50 Td (, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 281.90 Td (meaning no redemptions were made in March, ) Tj ET Q q 0 0 0 rg BT 276.62 281.90 Td (April or May 2018 \(including those requested following a stockholder) Tj ET Q q 0 0 0 rg BT 501.54 281.90 Td (’) Tj ET Q q 0 0 0 rg BT 503.76 281.90 Td (s death, qualifying ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 272.30 Td (disability or determination of incompetence\). ) Tj ET Q q 0 0 0 rg BT 272.48 272.30 Td (W) Tj ET Q q 0 0 0 rg BT 279.39 272.30 Td (e cancelled all outstanding redemption requests under the share redemption program and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 262.70 Td (did not accept any redemption requests under the share redemption program during the term of the Self-T) Tj ET Q q 0 0 0 rg BT 463.11 262.70 Td (ender) Tj ET Q q 0 0 0 rg BT 480.43 262.70 Td (.) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 250.10 Td (On December 7, 2017, our board of directors approved an estimated value per share of our common stock of $1) Tj ET Q q 0 0 0 rg BT 483.14 250.10 Td (1.50. ) Tj ET Q q 0 0 0 rg BT 501.00 250.10 Td (The change in the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 240.50 Td (redemption price became ef) Tj ET Q q 0 0 0 rg BT 214.92 240.50 Td (fective for the January 2018 redemption date and is ef) Tj ET Q q 0 0 0 rg BT 387.38 240.50 Td (fective until the estimated value per share is updated. ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 230.90 Td (W) Tj ET Q q 0 0 0 rg BT 132.91 230.90 Td (e expect to update our estimated value per share no later than December 2018. ) Tj ET Q q 0 0 0 rg BT 385.03 230.90 Td (As a result of the Special Dividend paid in January ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 221.30 Td (2018, our board of directors delayed the processing of redemptions that would otherwise occur on the last business day of December ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 211.70 Td (2017 under the share redemption program until the last business day of January 2018. ) Tj ET Q q 0 0 0 rg BT 401.72 211.70 Td (Any submission or withdrawal deadlines ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 202.10 Td (associated with such delayed redemptions were moved to their corresponding dates in January 2018. For purposes of all the volume and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 192.50 Td (funding limitations under the share redemption program, such delayed redemptions and any other redemption requests received and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 182.90 Td (processed in January are deemed to have occurred in December 2017 rather than January 2018.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 126.00 173.92 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 133.36 170.30 Td (W) Tj ET Q q 0 0 0 rg BT 140.27 170.30 Td (e limit the dollar value of shares that may be redeemed under the program as described above. During the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.71 170.30 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 489.04 170.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.70 170.30 Td (June 30, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 160.70 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 142.00 160.70 Td (, we redeemed ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 190.42 160.70 Td ($10.9 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.53 160.70 Td ( of common stock, of which ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.29 160.70 Td ($4.4 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.41 160.70 Td ( relates to delayed December 2017 redemptions, which ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 151.10 Td (represented all redemption requests received in good order and eligible for redemption through the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 443.67 151.10 Td (June 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.33 151.10 Td ( redemption date, except for ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 141.50 Td (the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 137.77 141.50 Td ($0.4 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 176.89 141.50 Td ( of shares in connection with redemption requests not made upon a stockholder) Tj ET Q q 0 0 0 rg BT 430.45 141.50 Td (’) Tj ET Q q 0 0 0 rg BT 432.68 141.50 Td (s death, “qualifying disability” or ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 131.90 Td (“determination of incompetence,” which redemption requests will be fulfilled subject to the limitations described above. Based on the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 122.30 Td (amount of net proceeds raised from the sale of shares under the dividend reinvestment plan during ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 442.35 122.30 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.35 122.30 Td (, we have ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.78 122.30 Td ($2.2 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 529.89 122.30 Td ( available ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 112.70 Td (for all redemptions in the remainder of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.96 112.70 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 267.96 112.70 Td (, including shares that are redeemed in connection with a stockholders’) Tj ET Q q 0 0 0 rg BT 494.62 112.70 Td ( death, “qualifying ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 103.10 Td (disability” or “determination of incompetence” subject to the limitations described above. On ) Tj ET Q q 0 0 0 rg BT 426.58 103.10 Td (August 9, 2018, our board of directors ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.00 93.50 Td (approved an additional ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 201.31 93.50 Td ($6.0 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 240.42 93.50 Td ( of funds available for the redemption of shares in 2018.) Tj ET Q endstream endobj 111 0 obj <>] /Rotate 0 /Contents 112 0 R>> endobj 112 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 /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (54) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 731.25 Td (Item 3. ) Tj ET Q q 0 0 0 rg BT 90.50 731.25 Td (Defaults upon Senior) Tj ET Q q 0 0 0 rg BT 180.33 731.25 Td ( Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 713.25 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 689.25 Td (Item 4. ) Tj ET Q q 0 0 0 rg BT 90.50 689.25 Td (Mine Safety Disclosur) Tj ET Q q 0 0 0 rg BT 184.20 689.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 671.25 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 647.25 Td (Item 5. ) Tj ET Q q 0 0 0 rg BT 90.50 647.25 Td (Other) Tj ET Q q 0 0 0 rg BT 115.87 647.25 Td ( Information) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 629.25 Td (Shar) Tj ET Q q 0 0 0 rg BT 70.38 629.25 Td (e Redemption Pr) Tj ET Q q 0 0 0 rg BT 142.41 629.25 Td (ogram) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 611.25 Td (On ) Tj ET Q q 0 0 0 rg BT 86.67 611.25 Td (August 9, 2018, our board of directors approved, pursuant to Sections 4\(b\) and 4\(c\) of the ) Tj ET Q q 0 0 0 rg BT 448.35 611.25 Td (T) Tj ET Q q 0 0 0 rg BT 453.76 611.25 Td (enth ) Tj ET Q q 0 0 0 rg BT 472.92 611.25 Td (Amended Share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 599.25 Td (Redemption Program, an additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.25 599.25 Td ($6.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.14 599.25 Td ( of funds available for the redemption of shares in 2018. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 581.25 Td (For a stockholder) Tj ET Q q 0 0 0 rg BT 142.86 581.25 Td (’) Tj ET Q q 0 0 0 rg BT 145.63 581.25 Td (s shares to be eligible for redemption in a given month or to withdraw a redemption request, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 569.25 Td (Company must receive a written notice from the stockholder or from an authorized representative of the stockholder in good ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 557.25 Td (order and on a form approved by the Company at least five business days before the redemption date, or by September 21, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 545.25 Td (2018 in the case of the September 28, 2018 redemption date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 527.25 Td (The ) Tj ET Q q 0 0 0 rg BT 90.37 527.25 Td (T) Tj ET Q q 0 0 0 rg BT 95.78 527.25 Td (enth ) Tj ET Q q 0 0 0 rg BT 114.94 527.25 Td (Amended Share Redemption Program was filed with the SEC on December 15, 2016 as an exhibit to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 515.25 Td (Form 8-K.) Tj ET Q endstream endobj 113 0 obj <>] /Rotate 0 /Contents 114 0 R>> endobj 114 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 50.00 754.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 754.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 754.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 754.60 Td ( II. ) Tj ET Q q 0 0 0 rg BT 90.50 754.60 Td (OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.26 754.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 736.60 Td (Item 6. ) Tj ET Q q 0 0 0 rg BT 90.50 736.60 Td (Exhibits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (55) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 706.5 m 94 706.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 98 706.5 m 563 706.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 710.23 Td (Ex.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 100.50 710.23 Td (Description) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 693.07 Td (3.1) 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 100.5 691.7333984375 m 535.6611328125 691.7333984375 l s q 0 0 1 rg BT 100.50 693.07 Td (Second ) Tj ET Q q 0 0 1 rg BT 131.89 693.07 Td (Articles of ) Tj ET Q q 0 0 1 rg BT 176.32 693.07 Td (Amendment and Restatement, incorporated by reference to Exhibit 3.1 of the Company’) Tj ET Q q 0 0 1 rg BT 529.27 693.07 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 100.5 681.7333984375 m 307.4091796875 681.7333984375 l s q 0 0 1 rg BT 100.50 683.07 Td (Current Report on Form 8-K filed February 4, 2010) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 664.07 Td (3.2) 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 100.5 662.7333984375 m 560.3876953125 662.7333984375 l s q 0 0 1 rg BT 100.50 664.07 Td (Second ) Tj ET Q q 0 0 1 rg BT 131.89 664.07 Td (Amended and Restated Bylaws, incorporated by reference to Exhibit 3.1 to the Company’) Tj ET Q q 0 0 1 rg BT 491.23 664.07 Td (s Current Report ) 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 100.5 652.7333984375 m 255.75390625 652.7333984375 l s q 0 0 1 rg BT 100.50 654.07 Td (on Form 8-K filed November 17, 2016) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 635.07 Td (4.1) 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 100.5 633.7333984375 m 554.5185546875 633.7333984375 l s q 0 0 1 rg BT 100.50 635.07 Td (Statement regarding restrictions on transferability of shares of common stock \(to appear on stock certificate or to ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 100.5 623.7333984375 m 532.9755859375 623.7333984375 l s q 0 0 1 rg BT 100.50 625.07 Td (be sent upon request and without char) Tj ET Q q 0 0 1 rg BT 251.95 625.07 Td (ge to stockholders issued shares without certificates\), incorporated by ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 100.5 613.7333984375 m 543 613.7333984375 l s q 0 0 1 rg BT 100.50 615.07 Td (reference to Exhibit 4.2 to Pre-Ef) Tj ET Q q 0 0 1 rg BT 233.60 615.07 Td (fective ) Tj ET Q q 0 0 1 rg BT 262.75 615.07 Td (Amendment No. 1 to the Company’) Tj ET Q q 0 0 1 rg BT 406.07 615.07 Td (s Registration Statement on Form ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 100.5 603.7333984375 m 357.619140625 603.7333984375 l s q 0 0 1 rg BT 100.50 605.07 Td (S-1) Tj ET Q q 0 0 1 rg BT 114.02 605.07 Td (1, Commission File No. 333-156633 filed February 25, 2009) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 586.07 Td (4.2) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 100.5 584.7333984375 m 524.5625 584.7333984375 l s q 0 0 1 rg BT 100.50 586.07 Td (Fifth ) Tj ET Q q 0 0 1 rg BT 121.90 586.07 Td (Amended and Restated Dividend Reinvestment Plan, incorporated by reference to Exhibit 4.2 to the ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 100.5 574.7333984375 m 355.4658203125 574.7333984375 l s q 0 0 1 rg BT 100.50 576.07 Td (Company’) Tj ET Q q 0 0 1 rg BT 142.17 576.07 Td (s Quarterly Report on Form 10-Q filed May 14, 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 52.50 557.07 Td (31.1) 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 100.5 555.7333984375 m 499.09375 555.7333984375 l s q 0 0 1 rg BT 100.50 557.07 Td (Certification of Chief Executive Of) Tj ET Q q 0 0 1 rg BT 241.94 557.07 Td (ficer pursuant to Section 302 of the Sarbanes-Oxley ) Tj ET Q q 0 0 1 rg BT 451.33 557.07 Td (Act of 2002) 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 52.50 538.07 Td (31.2) 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 100.5 536.7333984375 m 496.3251953125 536.7333984375 l s q 0 0 1 rg BT 100.50 538.07 Td (Certification of Chief Financial Of) Tj ET Q q 0 0 1 rg BT 239.17 538.07 Td (ficer pursuant to Section 302 of the Sarbanes-Oxley ) Tj ET Q q 0 0 1 rg BT 448.56 538.07 Td (Act of 2002) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 519.07 Td (32.1) 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 100.5 517.7333984375 m 546.583984375 517.7333984375 l s q 0 0 1 rg BT 100.50 519.07 Td (Certification of Chief Executive Of) Tj ET Q q 0 0 1 rg BT 241.94 519.07 Td (ficer pursuant to 18 U.S.C. 1350, as created by Section 906 of the Sarbanes-) 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 100.5 507.7333984375 m 174.6552734375 507.7333984375 l s q 0 0 1 rg BT 100.50 509.07 Td (Oxley ) Tj ET Q q 0 0 1 rg BT 126.89 509.07 Td (Act of 2002) 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 52.50 490.07 Td (32.2) 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 100.5 488.7333984375 m 543.8154296875 488.7333984375 l s q 0 0 1 rg BT 100.50 490.07 Td (Certification of Chief Financial Of) Tj ET Q q 0 0 1 rg BT 239.17 490.07 Td (ficer pursuant to 18 U.S.C. 1350, as created by Section 906 of the Sarbanes-) 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 100.5 478.7333984375 m 174.6552734375 478.7333984375 l s q 0 0 1 rg BT 100.50 480.07 Td (Oxley ) Tj ET Q q 0 0 1 rg BT 126.89 480.07 Td (Act of 2002) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 461.07 Td (99.1) 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 100.5 459.7333984375 m 528.8447265625 459.7333984375 l s q 0 0 1 rg BT 100.50 461.07 Td (T) Tj ET Q q 0 0 1 rg BT 105.91 461.07 Td (enth ) Tj ET Q q 0 0 1 rg BT 125.08 461.07 Td (Amended and Restated Share Redemption Program, incorporated by reference to Exhibit 99.4 to the ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 100.5 449.7333984375 m 364.474609375 449.7333984375 l s q 0 0 1 rg BT 100.50 451.07 Td (Company's Current Report on Form 8-K filed December 15, 2016) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 432.07 Td (101.INS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 432.07 Td (XBRL) Tj ET Q q 0 0 0 rg BT 126.98 432.07 Td ( Instance Document) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 413.07 Td (101.SCH) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 413.07 Td (XBRL) Tj ET Q q 0 0 0 rg BT 126.98 413.07 Td ( ) Tj ET Q q 0 0 0 rg BT 129.21 413.07 Td (T) Tj ET Q q 0 0 0 rg BT 134.88 413.07 Td (axonomy Extension Schema) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 394.07 Td (101.CAL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 394.07 Td (XBRL) Tj ET Q q 0 0 0 rg BT 126.98 394.07 Td ( ) Tj ET Q q 0 0 0 rg BT 129.21 394.07 Td (T) Tj ET Q q 0 0 0 rg BT 134.88 394.07 Td (axonomy Extension Calculation Linkbase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 375.07 Td (101.DEF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 375.07 Td (XBRL) Tj ET Q q 0 0 0 rg BT 126.98 375.07 Td ( ) Tj ET Q q 0 0 0 rg BT 129.21 375.07 Td (T) Tj ET Q q 0 0 0 rg BT 134.88 375.07 Td (axonomy Extension Definition Linkbase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 356.07 Td (101.LAB) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 356.07 Td (XBRL) Tj ET Q q 0 0 0 rg 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