%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 /F2 18.00 Tf ET q 0 0 0 rg BT 257.25 639.05 Td (FORM 10-Q) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 171.00 621.05 Td (______________________________________________________) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 603.05 Td (\(Mark One\)) Tj ET Q /GS0 gs q 10.60 0 0 10.76 53.00 580.29 cm /I1 Do Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 73.00 581.92 Td (QUAR) Tj ET Q q 0 0 0 rg BT 107.91 581.92 Td (TERL) Tj ET Q q 0 0 0 rg BT 139.49 581.92 Td (Y) Tj ET Q q 0 0 0 rg BT 147.71 581.92 Td ( REPOR) Tj ET Q q 0 0 0 rg BT 192.29 581.92 Td (T) Tj ET Q q 0 0 0 rg BT 200.07 581.92 Td ( PURSUANT) Tj ET Q q 0 0 0 rg BT 268.19 581.92 Td ( ) Tj ET Q q 0 0 0 rg BT 270.98 581.92 Td (T) Tj ET Q q 0 0 0 rg BT 278.76 581.92 Td (O SECTION 13 OR 15\(d\) OF) Tj ET Q q 0 0 0 rg BT 430.00 581.92 Td ( ) Tj ET Q q 0 0 0 rg BT 432.78 581.92 Td (THE SECURITIES) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 73.00 569.92 Td (EXCHANGE ) Tj ET Q q 0 0 0 rg BT 144.68 569.92 Td (ACT) Tj ET Q q 0 0 0 rg BT 169.80 569.92 Td ( 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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 108.65 438.25 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 195.85 438.25 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 320.72 438.25 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 390.07 438.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 438.26 438.25 Td ( II, 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 (46-2822978) 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 74.00 278.85 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 50.00 268.05 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 87.23 268.05 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 50.00 257.25 Td (\(2\) has been subject to such filing requirements for the past 90 days. ) Tj ET Q q 0 0 0 rg BT 304.35 257.25 Td (Y) Tj ET Q q 0 0 0 rg BT 309.95 257.25 Td (es ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 321.95 255.31 cm /I3 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.49 257.25 Td ( No ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 351.49 255.31 cm /I4 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 74.00 240.45 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 495.77 240.45 Td (, every Interactive ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 229.65 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 358.78 229.65 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 50.00 218.85 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 405.84 218.85 Td (Y) Tj ET Q q 0 0 0 rg BT 411.44 218.85 Td (es ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 423.43 216.91 cm /I5 Do Q /GS0 gs q 9.00 0 0 9.18 432.97 216.91 cm /I6 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.97 218.85 Td (No ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 457.47 216.91 cm /I7 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 74.00 202.05 Td (Indicate by check mark whether the registrant is a lar) Tj ET Q q 0 0 0 rg BT 265.00 202.05 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 333.09 202.05 Td (, an accelerated filer) Tj ET Q q 0 0 0 rg BT 405.67 202.05 Td (, a non-accelerated filer) Tj ET Q q 0 0 0 rg BT 490.25 202.05 Td (, a smaller ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 191.25 Td (reporting company or an emer) Tj ET Q q 0 0 0 rg BT 158.80 191.25 Td (ging growth company) Tj ET Q q 0 0 0 rg BT 237.20 191.25 Td (. See the definitions of “lar) Tj ET Q q 0 0 0 rg BT 334.01 191.25 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 402.09 191.25 Td (,” “accelerated filer”, “smaller reporting ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 180.45 Td (company” and “emer) Tj ET Q q 0 0 0 rg BT 126.30 180.45 Td (ging growth company” in Rule 12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 323.50 180.45 Td (Act. \(Check one\):) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 159.41 Td (Lar) Tj ET Q q 0 0 0 rg BT 65.41 159.41 Td (ge ) Tj ET Q q 0 0 0 rg BT 75.82 159.41 Td (Accelerated Filer) Tj ET Q /GS0 gs q 8.02 0 0 9.78 158.00 157.47 cm /I8 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 159.41 Td (Accelerated Filer) Tj ET Q /GS0 gs q 8.02 0 0 9.78 548.00 157.47 cm /I9 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 144.41 Td (Non-Accelerated ) Tj ET Q q 0 0 0 rg BT 116.71 144.41 Td (Filer) Tj ET Q /GS0 gs q 8.02 0 0 9.78 158.00 142.47 cm /I10 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 166.02 144.31 Td ( \(Do ) Tj ET Q q 0 0 0 rg BT 186.77 144.31 Td (not ) Tj ET Q q 0 0 0 rg BT 200.52 144.31 Td (check ) Tj ET Q q 0 0 0 rg BT 223.75 144.31 Td (if ) Tj ET Q q 0 0 0 rg BT 231.50 144.31 Td (a ) Tj ET Q q 0 0 0 rg BT 237.74 144.31 Td (smaller ) Tj ET Q q 0 0 0 rg BT 266.48 144.31 Td (reporting ) Tj ET Q q 0 0 0 rg BT 301.72 144.31 Td (company\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 144.41 Td (Smaller reporting company) Tj ET Q /GS0 gs q 9.54 0 0 9.78 548.00 142.47 cm /I11 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.00 129.41 Td (Emer) Tj ET Q q 0 0 0 rg BT 447.33 129.41 Td (ging ) Tj ET Q q 0 0 0 rg BT 465.58 129.41 Td (growth ) Tj ET Q q 0 0 0 rg BT 493.32 129.41 Td (company) Tj ET Q /GS0 gs q 9.54 0 0 9.78 548.00 127.47 cm /I12 Do Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.50 108.65 Td (If an emer) Tj ET Q q 0 0 0 rg BT 109.31 108.65 Td (ging growth company) Tj ET Q q 0 0 0 rg BT 187.72 108.65 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 97.85 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 97.85 Td (Act. ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 500.62 95.91 cm /I13 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 72.50 81.05 Td (Indicate by check mark whether the registrant is a shell company \(as defined in Rule 12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 462.62 81.05 Td (Act\). ) Tj ET Q q 0 0 0 rg BT 489.52 81.05 Td (Y) Tj ET Q q 0 0 0 rg BT 495.12 81.05 Td (es ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 507.12 79.11 cm /I14 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 515.14 81.05 Td ( No ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 535.14 79.11 cm /I15 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 64.25 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.50 64.25 Td (August 7, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 126.75 64.25 Td (, there were ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 171.23 64.25 Td (17,853,044) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 211.73 64.25 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 229.22 64.25 Td (1) Tj ET Q q 0 0 0 rg BT 233.39 64.25 Td (1,980,251) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 269.39 64.25 Td ( outstanding shares of Class ) Tj ET Q q 0 0 0 rg BT 371.63 64.25 Td (A) Tj ET Q q 0 0 0 rg BT 377.63 64.25 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 416.72 64.25 Td (T) Tj ET Q q 0 0 0 rg BT 422.05 64.25 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 524.44 64.25 Td (, of KBS ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 53.45 Td (Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 150.32 53.45 Td ( II, 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 218.15 742.25 Td (KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 362.15 742.25 Td ( II, 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 492.8544921875 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 ) 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 232.2685546875 605.9833984375 l s q 0 0 1 rg BT 137.00 607.32 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 137 590.9833984375 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 484.7099609375 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 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 137 555.9833984375 m 302.5322265625 555.9833984375 l s q 0 0 1 rg BT 137.00 557.32 Td (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 507.7958984375 540.9833984375 l s q 0 0 1 rg BT 137.00 542.32 Td (Consolidated Statement of Cash Flows \(unaudited\) for the Six Months Ended June 30, 2018 ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 530.9833984375 m 173.9384765625 530.9833984375 l s q 0 0 1 rg BT 137.00 532.32 Td (and 2017) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 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 (31) 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 (48) 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 (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 549 455.9833984375 m 559 455.9833984375 l s q 0 0 1 rg BT 549.00 457.32 Td (50) 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 (50) 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 (50) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 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Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 350.9833984375 m 559 350.9833984375 l s q 0 0 1 rg BT 549.00 352.32 Td (54) 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 549 335.9833984375 m 559 335.9833984375 l s q 0 0 1 rg BT 549.00 337.32 Td (55) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL endstream endobj 7 0 obj <>] /Rotate 0 /Contents 8 0 R>> endobj 8 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.35 701.25 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 701.25 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 701.25 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 701.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 701.25 Td ( II, 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 50.50 620.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 620.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 620.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 620.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 620.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 592.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 592.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 592.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 592.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 592.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 564.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 564.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 564.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 564.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 564.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 536.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 536.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 536.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 536.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 536.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 508.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 508.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 508.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 508.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 508.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 480.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 480.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 480.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 480.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 480.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 452.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 452.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 452.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 452.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 452.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 424.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 424.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 424.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 424.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 424.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 396.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 396.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 396.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 396.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 396.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 368.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 368.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 368.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 368.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 368.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 340.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 340.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 340.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 340.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 340.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 312.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 312.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 312.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 312.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 312.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 284.75 340.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 284.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 284.75 82.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 284.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 284.75 82.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 229.75 340.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 229.75 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 229.75 82.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 229.75 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 229.75 82.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 183.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 183.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 183.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 183.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 183.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 155.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 155.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 155.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 155.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 155.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 127.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 127.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 127.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 127.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 127.75 82.00 -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 394.5 634.75 m 476.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 634.75 m 562.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 634.75 m 476.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 564.75 m 476.5 564.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 564.75 m 562.5 564.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 466.75 m 476.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 466.75 m 562.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 453.75 m 476.5 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 451.75 m 476.5 451.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 466.75 m 562.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 453.75 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 480.5 451.75 m 562.5 451.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 354.75 m 476.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 340.75 m 476.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 354.75 m 562.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 340.75 m 562.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 155.75 m 476.5 155.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 155.75 m 562.5 155.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 127.75 m 476.5 127.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 113.75 m 476.5 113.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 127.75 m 562.5 127.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 113.75 m 562.5 113.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 100.75 m 476.5 100.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 98.75 m 476.5 98.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 100.75 m 562.5 100.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 98.75 m 562.5 98.75 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 220.00 639.21 Td ( ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 408.85 639.20 Td (June 30, 2018) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 484.70 639.20 Td (December) Tj ET Q q 0 0 0 rg BT 523.59 639.20 Td ( 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 625.21 Td ( ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 412.45 625.20 Td (\(unaudited\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 611.21 Td (Assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 597.21 Td (Real estate, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.00 597.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 597.21 Td (529,187) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 597.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 597.21 Td (530,440) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 583.21 Td (Real estate equity securities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 583.21 Td (7,300) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 583.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 569.21 Td (Real estate loan receivable, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.00 569.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 569.21 Td (3,500) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 555.21 Td (T) Tj ET Q q 0 0 0 rg BT 75.87 555.21 Td (otal real estate and real estate-related investments, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 555.21 Td (536,487) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 555.21 Td (533,940) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 541.21 Td (Cash and cash equivalents) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.25 541.21 Td (27,134) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 541.21 Td (29,031) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 527.21 Td (Restricted cash) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 527.21 Td (7,056) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 527.21 Td (6,022) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 513.21 Td (Investment in unconsolidated entity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 513.21 Td (2,732) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 513.21 Td (2,698) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 499.21 Td (Rents and other receivables) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 499.21 Td (6,241) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 499.21 Td (3,265) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 485.21 Td (Above-market leases, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.00 485.21 Td (74) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 485.21 Td (83) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 471.21 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 471.21 Td (8,231) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 471.21 Td (7,476) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 457.21 Td (T) Tj ET Q q 0 0 0 rg BT 57.87 457.21 Td (otal assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.00 457.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 457.21 Td (587,955) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 457.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 457.21 Td (582,515) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 443.21 Td (Liabilities and equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 429.21 Td (Notes payable, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.00 429.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 429.21 Td (328,674) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 429.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 429.21 Td (328,351) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 415.21 Td (Accounts payable and accrued liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 415.21 Td (7,357) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 415.21 Td (6,845) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 401.21 Td (Due to af) Tj ET Q q 0 0 0 rg BT 104.32 401.21 Td (filiates) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 401.21 Td (1,535) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 401.21 Td (1,862) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 387.21 Td (Distributions payable) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.50 387.21 Td (374) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 387.21 Td (366) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 373.21 Td (Below-market leases, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 373.21 Td (8,951) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 373.21 Td (10,783) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 359.21 Td (Other liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.25 359.21 Td (13,861) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 359.21 Td (12,399) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 345.21 Td (T) Tj ET Q q 0 0 0 rg BT 57.87 345.21 Td (otal liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 345.21 Td (360,752) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 345.21 Td (360,606) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 331.21 Td (Commitments and contingencies \(Note) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 193.72 331.21 Td ( 12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.97 331.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 317.21 Td (Redeemable common stock) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 317.21 Td (1,846) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 317.21 Td (2,61) Tj ET Q q 0 0 0 rg BT 554.50 317.21 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 303.21 Td (Equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 289.21 Td (KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 185.08 289.21 Td ( II, Inc. stockholders’) Tj ET Q q 0 0 0 rg BT 261.63 289.21 Td ( equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 275.21 Td (Preferred stock, $.01 par value per share; 10,000,000 shares authorized, no shares ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 266.21 Td (issued and outstanding) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.00 266.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 266.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 252.21 Td (Class ) Tj ET Q q 0 0 0 rg BT 92.26 252.21 Td (A) Tj ET Q q 0 0 0 rg BT 98.26 252.21 Td ( common stock, $.01 par value per share; 500,000,000 shares authorized, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 243.21 Td (17,619,873) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 111.50 243.21 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 128.99 243.21 Td (16,888,940) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 169.49 243.21 Td ( shares issued and outstanding as of) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.97 243.21 Td ( June 30, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 350.47 243.21 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 234.21 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 141.73 234.21 Td (, respectively) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.50 234.21 Td (176) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 234.21 Td (169) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 220.21 Td (Class ) Tj ET Q q 0 0 0 rg BT 92.59 220.21 Td (T) Tj ET Q q 0 0 0 rg BT 97.93 220.21 Td ( common stock, $.01 par value per share; 500,000,000 shares authorized,) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 360.60 220.21 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 211.21 Td (1) Tj ET Q q 0 0 0 rg BT 75.17 211.21 Td (1,770,887) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 111.17 211.21 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 128.66 211.21 Td (1) Tj ET Q q 0 0 0 rg BT 132.83 211.21 Td (1,031,895) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 168.83 211.21 Td ( shares issued and outstanding as of) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.31 211.21 Td ( June 30, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.80 211.21 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 202.21 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 141.73 202.21 Td (, respectively) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.50 202.21 Td (1) Tj ET Q q 0 0 0 rg BT 464.00 202.21 Td (18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 202.21 Td (1) Tj ET Q q 0 0 0 rg BT 550.00 202.21 Td (10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 188.21 Td (Additional paid-in capital) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 188.21 Td (259,191) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 188.21 Td (245,077) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 174.21 Td (Cumulative distributions and net losses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 174.21 Td (\(47,614) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.00 174.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.25 174.21 Td (\(39,657) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 174.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 160.21 Td (Accumulated other comprehensive) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 196.45 160.21 Td ( income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.50 160.21 Td (134) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 160.21 Td (202) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 146.21 Td (T) Tj ET Q q 0 0 0 rg BT 69.87 146.21 Td (otal KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 205.69 146.21 Td ( II, Inc. stockholders’) Tj ET Q q 0 0 0 rg BT 282.25 146.21 Td ( equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 146.21 Td (212,005) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 146.21 Td (205,901) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 132.21 Td (Noncontrolling interests) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.25 132.21 Td (13,352) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 132.21 Td (13,397) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 118.21 Td (T) Tj ET Q q 0 0 0 rg BT 57.87 118.21 Td (otal equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 118.21 Td (225,357) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 118.21 Td (219,298) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 104.21 Td (T) Tj ET Q q 0 0 0 rg BT 57.87 104.21 Td (otal liabilities and equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.00 104.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 104.21 Td (587,955) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 104.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 104.21 Td (582,515) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 82.25 Td (See accompanying condensed notes to consolidated financial statements.) 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Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 189.15 695.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 248.97 695.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 283.52 695.25 Td (A) Tj ET Q q 0 0 0 rg BT 290.00 695.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 354.92 695.25 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 391.68 695.25 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 677.25 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.05 659.25 Td (\(in thousands, except share and per share amounts\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 591.75 300.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 591.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 591.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 591.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 591.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 591.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 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403.50 171.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 171.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 171.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 171.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.50 171.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.50 171.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 143.75 300.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 143.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 143.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 143.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 143.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 143.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 143.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.50 143.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.50 143.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 115.75 300.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 115.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 115.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 115.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 115.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 115.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 115.75 49.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.50 115.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.50 115.75 49.00 -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 354.5 619.75 m 403.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 619.75 m 407.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 619.75 m 456.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 619.75 m 509.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 619.75 m 513.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 619.75 m 562.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 619.75 m 403.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 605.75 m 403.5 605.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 619.75 m 407.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 619.75 m 456.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 605.75 m 456.5 605.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 619.75 m 509.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 605.75 m 509.5 605.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 619.75 m 513.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 619.75 m 562.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 605.75 m 562.5 605.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 605.75 m 509.5 605.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 521.75 m 403.5 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 507.75 m 403.5 507.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 521.75 m 456.5 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 507.75 m 456.5 507.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 521.75 m 509.5 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 507.75 m 509.5 507.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 521.75 m 562.5 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 507.75 m 562.5 507.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 395.75 m 403.5 395.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 395.75 m 456.5 395.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 395.75 m 509.5 395.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 395.75 m 562.5 395.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 395.75 m 403.5 395.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 381.75 m 403.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 395.75 m 456.5 395.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 381.75 m 456.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 395.75 m 509.5 395.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 381.75 m 509.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 395.75 m 562.5 395.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 381.75 m 562.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 325.75 m 403.5 325.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 325.75 m 456.5 325.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 325.75 m 403.5 325.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 311.75 m 403.5 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 325.75 m 456.5 325.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 311.75 m 456.5 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 325.75 m 509.5 325.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 311.75 m 509.5 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 325.75 m 562.5 325.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 311.75 m 562.5 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 311.75 m 403.5 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 311.75 m 456.5 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 311.75 m 509.5 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 311.75 m 562.5 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 283.75 m 403.5 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 283.75 m 456.5 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 283.75 m 509.5 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 283.75 m 562.5 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 283.75 m 403.5 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 283.75 m 456.5 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 283.75 m 509.5 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 283.75 m 562.5 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 255.75 m 403.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 255.75 m 456.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 255.75 m 509.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 255.75 m 562.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 255.75 m 403.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 242.75 m 403.5 242.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 240.75 m 403.5 240.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 255.75 m 456.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 242.75 m 456.5 242.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 240.75 m 456.5 240.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 255.75 m 509.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 242.75 m 509.5 242.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 240.75 m 509.5 240.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 255.75 m 562.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 242.75 m 562.5 242.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 240.75 m 562.5 240.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 240.75 m 403.5 240.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 242.75 m 403.5 242.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 240.75 m 456.5 240.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 242.75 m 456.5 242.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 240.75 m 509.5 240.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 242.75 m 509.5 242.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 240.75 m 562.5 240.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 242.75 m 562.5 242.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 200.75 m 403.5 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 198.75 m 403.5 198.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 200.75 m 456.5 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 198.75 m 456.5 198.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 200.75 m 509.5 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 198.75 m 509.5 198.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 200.75 m 562.5 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 198.75 m 562.5 198.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 186.75 m 403.5 186.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 184.75 m 403.5 184.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 186.75 m 456.5 186.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 184.75 m 456.5 184.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 186.75 m 509.5 186.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 184.75 m 509.5 184.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 186.75 m 562.5 186.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 184.75 m 562.5 184.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 172.75 m 403.5 172.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 170.75 m 403.5 170.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 172.75 m 456.5 172.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 170.75 m 456.5 170.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 172.75 m 509.5 172.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 170.75 m 509.5 170.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 172.75 m 562.5 172.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 170.75 m 562.5 170.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 130.75 m 403.5 130.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 128.75 m 403.5 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 130.75 m 456.5 130.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 128.75 m 456.5 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 130.75 m 509.5 130.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 128.75 m 509.5 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 130.75 m 562.5 130.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 128.75 m 562.5 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 116.75 m 403.5 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 114.75 m 403.5 114.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 116.75 m 456.5 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 114.75 m 456.5 114.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 116.75 m 509.5 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 114.75 m 509.5 114.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 116.75 m 562.5 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 114.75 m 562.5 114.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 102.75 m 403.5 102.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 100.75 m 403.5 100.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 102.75 m 456.5 102.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 100.75 m 456.5 100.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 102.75 m 509.5 102.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 100.75 m 509.5 100.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 102.75 m 562.5 102.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 100.75 m 562.5 100.75 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 364.05 633.20 Td (Thr) Tj ET Q q 0 0 0 rg BT 378.97 633.20 Td (ee Months Ended) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 388.95 624.20 Td (June 30,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 475.45 633.20 Td (Six Months Ended ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 494.95 624.20 Td (June 30,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 369.50 610.20 Td (2018) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 422.50 610.20 Td (2017) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 475.50 610.20 Td (2018) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 528.50 610.20 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 596.21 Td (Revenues:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 582.21 Td (Of) Tj ET Q q 0 0 0 rg BT 80.33 582.21 Td (fice revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.00 582.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.75 582.21 Td (7,361) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 582.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 582.21 Td (1,782) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.00 582.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.25 582.21 Td (14,960) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.00 582.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 582.21 Td (3,606) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 568.21 Td (Hotel revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.25 568.21 Td (10,263) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 568.21 Td (6,470) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.25 568.21 Td (15,773) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 568.21 Td (1) Tj ET Q q 0 0 0 rg BT 538.75 568.21 Td (1,313) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 554.21 Td (Apartment revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.75 554.21 Td (1,803) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 554.21 Td (1,699) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.75 554.21 Td (3,519) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 554.21 Td (3,438) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 540.21 Td (Dividend income from real estate equity securities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 540.21 Td (36) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.00 540.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 497.00 540.21 Td (36) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 540.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 526.21 Td (Interest income from real estate loan receivable) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 526.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.50 526.21 Td (101) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 497.00 526.21 Td (10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 526.21 Td (200) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 512.21 Td (T) Tj ET Q q 0 0 0 rg BT 57.87 512.21 Td (otal revenues) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.25 512.21 Td (19,463) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.25 512.21 Td (10,052) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.25 512.21 Td (34,298) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 512.21 Td (18,557) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 498.21 Td (Expenses:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 484.21 Td (Of) Tj ET Q q 0 0 0 rg BT 80.33 484.21 Td (fice expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.75 484.21 Td (3,039) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.50 484.21 Td (597) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.75 484.21 Td (5,710) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 484.21 Td (1,177) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 470.21 Td (Hotel expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.75 470.21 Td (6,265) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 470.21 Td (4,788) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.25 470.21 Td (1) Tj ET Q q 0 0 0 rg BT 485.75 470.21 Td (1,055) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 470.21 Td (9,032) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 456.21 Td (Apartment expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.50 456.21 Td (965) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.50 456.21 Td (862) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.75 456.21 Td (1,882) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 456.21 Td (1,698) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 442.21 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 174.30 442.21 Td (filiate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.50 442.21 Td (986) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.50 442.21 Td (577) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.75 442.21 Td (1,920) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 442.21 Td (1,081) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 428.21 Td (General and administrative expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.50 428.21 Td (604) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.50 428.21 Td (772) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.75 428.21 Td (1,244) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 428.21 Td (1,346) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 414.21 Td (Depreciation and amortization) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.75 414.21 Td (5,069) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 414.21 Td (2,614) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.25 414.21 Td (10,172) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 414.21 Td (5,467) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 400.21 Td (Interest expense) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.75 400.21 Td (3,407) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 400.21 Td (1,834) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.75 400.21 Td (6,304) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 400.21 Td (3,544) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 386.21 Td (T) Tj ET Q q 0 0 0 rg BT 57.87 386.21 Td (otal expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.25 386.21 Td (20,335) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.25 386.21 Td (12,044) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.25 386.21 Td (38,287) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 386.21 Td (23,345) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 372.21 Td (Other ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 75.74 372.21 Td (income:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 358.21 Td (Other interest income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 358.21 Td (91) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.50 358.21 Td (193) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.50 358.21 Td (152) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 358.21 Td (289) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 344.21 Td (Equity in income of unconsolidated entity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.50 344.21 Td (1) Tj ET Q q 0 0 0 rg BT 391.00 344.21 Td (16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.00 344.21 Td (13) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.50 344.21 Td (131) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 344.21 Td (26) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 330.21 Td (Unrealized) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 110.48 330.21 Td ( gain ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 130.47 330.21 Td (on real estate equity securities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.50 330.21 Td (400) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.00 330.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.50 330.21 Td (314) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 330.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 316.21 Td (T) Tj ET Q q 0 0 0 rg BT 57.87 316.21 Td (otal other) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 92.11 316.21 Td ( income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.50 316.21 Td (607) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.50 316.21 Td (206) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.50 316.21 Td (597) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 316.21 Td (315) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 302.21 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.99 302.21 Td ( loss ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 84.50 302.21 Td (before income taxes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.50 302.21 Td (\(265) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 302.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.75 302.21 Td (\(1,786) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 302.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.75 302.21 Td (\(3,392) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 302.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 302.21 Td (\(4,473) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 302.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 288.21 Td (Income tax ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 113.48 288.21 Td (benefit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 288.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.50 288.21 Td (428) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.50 288.21 Td (9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 288.21 Td (437) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 274.21 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.99 274.21 Td ( loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.50 274.21 Td (\(265) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 274.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.75 274.21 Td (\(1,358) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 274.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.75 274.21 Td (\(3,383) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 274.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 274.21 Td (\(4,036) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 274.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 260.21 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 83.99 260.21 Td ( \(income\) loss ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 137.23 260.21 Td (attributable to noncontrolling interests) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 388.00 260.21 Td (\(39) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 260.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.00 260.21 Td (78) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.50 260.21 Td (213) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 260.21 Td (308) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 246.21 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.99 246.21 Td ( loss ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 84.50 246.21 Td (attributable to common stockholders) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.00 246.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.50 246.21 Td (\(304) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 246.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 246.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 429.75 246.21 Td (\(1,280) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 246.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.00 246.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.75 246.21 Td (\(3,170) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 246.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.00 246.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 246.21 Td (\(3,728) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 246.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 218.21 Td (Class ) Tj ET Q q 0 0 0 rg BT 74.26 218.21 Td (A) Tj ET Q q 0 0 0 rg BT 80.26 218.21 Td ( Common Stock:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 204.21 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.99 204.21 Td ( loss ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 84.50 204.21 Td (attributable to common stockholders) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.00 204.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 388.00 204.21 Td (\(23) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 204.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 204.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.50 204.21 Td (\(650) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 204.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.00 204.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.75 204.21 Td (\(1,593) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 204.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.00 204.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 204.21 Td (\(2,138) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 204.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 190.21 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.99 190.21 Td ( loss ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 84.50 190.21 Td (per common share, basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.00 190.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 190.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 190.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 434.25 190.21 Td (\(0.04) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 190.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.00 190.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.25 190.21 Td (\(0.09) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 190.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.00 190.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.25 190.21 Td (\(0.14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 190.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 176.21 Td (W) Tj ET Q q 0 0 0 rg BT 60.77 176.21 Td (eighted-average number of common shares outstanding, basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.50 176.21 Td (17,565,835) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.50 176.21 Td (15,632,018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 176.21 Td (17,399,380) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.50 176.21 Td (15,285,252) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 148.21 Td (Class ) Tj ET Q q 0 0 0 rg BT 74.59 148.21 Td (T) Tj ET Q q 0 0 0 rg BT 79.93 148.21 Td ( Common Stock:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 134.21 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.99 134.21 Td ( loss ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 84.50 134.21 Td (attributable to common stockholders) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.00 134.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.50 134.21 Td (\(281) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 134.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 134.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.50 134.21 Td (\(630) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 134.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.00 134.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.75 134.21 Td (\(1,577) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 134.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.00 134.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.75 134.21 Td (\(1,590) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 134.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 120.21 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.99 120.21 Td ( loss ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 84.50 120.21 Td (per common share, basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.00 120.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.25 120.21 Td (\(0.02) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 120.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 120.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 434.25 120.21 Td (\(0.06) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 120.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.00 120.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.25 120.21 Td (\(0.14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 120.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.00 120.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.25 120.21 Td (\(0.19) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 120.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 106.21 Td (W) Tj ET Q q 0 0 0 rg BT 60.77 106.21 Td (eighted-average number of common shares outstanding, basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 359.50 106.21 Td (1) Tj ET Q q 0 0 0 rg BT 364.00 106.21 Td (1,664,545) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.00 106.21 Td (9,776,935) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 106.21 Td (1) Tj ET Q q 0 0 0 rg BT 470.00 106.21 Td (1,514,548) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.00 106.21 Td (8,580,397) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 84.25 Td (See accompanying condensed notes to consolidated financial statements.) Tj ET Q endstream endobj 11 0 obj <>] /Rotate 0 /Contents 12 0 R>> endobj 12 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.35 713.25 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 713.25 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 713.25 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 713.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 713.25 Td ( II, INC.) 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359.5 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 506.75 m 359.5 506.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 521.75 m 424.5 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 508.75 m 424.5 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 506.75 m 424.5 506.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 521.75 m 489.5 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 508.75 m 489.5 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 506.75 m 489.5 506.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 521.75 m 554.5 521.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 508.75 m 554.5 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 506.75 m 554.5 506.75 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 633.21 Td ( ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 302.90 633.20 Td (Thr) Tj ET Q q 0 0 0 rg BT 317.74 633.20 Td (ee Months Ended June 30,) Tj ET Q BT 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BT 486.00 605.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.00 605.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.75 605.21 Td (\(4,036) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.00 605.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 591.21 Td (Other comprehensive) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 136.22 591.21 Td ( \(loss\) income:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 577.21 Td (Foreign currency translation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 172.97 577.21 Td ( \(loss\) gain) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.50 577.21 Td (\(135) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.00 577.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 407.50 577.21 Td (162) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 577.21 Td (\(68) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 577.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.50 577.21 Td (191) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 563.21 Td (T) Tj ET Q q 0 0 0 rg BT 63.87 563.21 Td (otal other comprehensive) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 154.84 563.21 Td ( \(loss\) income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.50 563.21 Td (\(135) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.00 563.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 407.50 563.21 Td (162) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 563.21 Td (\(68) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 563.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.50 563.21 Td (191) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 549.21 Td (T) Tj ET Q q 0 0 0 rg BT 63.87 549.21 Td (otal comprehensive) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 134.09 549.21 Td ( loss) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.50 549.21 Td (\(400) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.00 549.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.75 549.21 Td (\(1,196) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 549.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.75 549.21 Td (\(3,451) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 549.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.75 549.21 Td (\(3,845) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.00 549.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 535.21 Td (T) Tj ET Q q 0 0 0 rg BT 63.87 535.21 Td (otal comprehensive) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 134.09 535.21 Td ( \(income\) loss ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 187.33 535.21 Td (attributable to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 526.21 Td (noncontrolling interests) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.00 526.21 Td (\(39) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.00 526.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.00 526.21 Td (78) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.50 526.21 Td (213) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.50 526.21 Td (308) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 512.21 Td (T) Tj ET Q q 0 0 0 rg BT 63.87 512.21 Td (otal comprehensive) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 134.09 512.21 Td ( loss ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 152.60 512.21 Td (attributable to common stockholders) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 301.00 512.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 339.50 512.21 Td (\(439) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.00 512.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 366.00 512.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.75 512.21 Td (\(1,1) Tj ET Q q 0 0 0 rg BT 412.00 512.21 Td (18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 512.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.00 512.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.75 512.21 Td (\(3,238) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 512.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.00 512.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.75 512.21 Td (\(3,537) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.00 512.21 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 490.25 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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215.00 346.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 346.75 35.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 346.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 346.75 30.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 346.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 346.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 346.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 346.75 43.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 346.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 346.75 47.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 346.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 346.75 42.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 346.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 346.75 46.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 346.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.00 346.75 39.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 312.75 96.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 146.00 312.75 35.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 312.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.00 312.75 30.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 215.00 312.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 312.75 35.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 312.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 312.75 30.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 312.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 312.75 34.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 312.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 312.75 43.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 312.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 312.75 47.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 312.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 312.75 42.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 312.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 312.75 46.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 312.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.00 312.75 39.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 284.75 96.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 146.00 284.75 35.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 284.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.00 284.75 30.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 215.00 284.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 219.00 284.75 35.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 284.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 284.75 30.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 284.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 284.75 34.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.00 284.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 284.75 43.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 284.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 284.75 47.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 284.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 284.75 42.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 284.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 284.75 46.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 284.75 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.00 284.75 39.00 -17.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 613.75 m 181 613.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181 613.75 m 185 613.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 185 613.75 m 215 613.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 613.75 m 219 613.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 613.75 m 254 613.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 613.75 m 258 613.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 613.75 m 288 613.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 602.75 m 181 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181 602.75 m 185 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 185 602.75 m 215 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 602.75 m 254 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 602.75 m 258 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 602.75 m 288 602.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 591.75 m 181 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 185 591.75 m 215 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 591.75 m 254 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 591.75 m 258 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 591.75 m 288 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 591.75 m 326 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 591.75 m 373 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 591.75 m 424 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 591.75 m 470 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 591.75 m 520 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 524 591.75 m 563 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 591.75 m 181 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 185 591.75 m 215 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 591.75 m 254 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 591.75 m 258 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 591.75 m 288 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 591.75 m 326 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 591.75 m 373 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 591.75 m 424 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 591.75 m 470 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 591.75 m 520 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 524 591.75 m 563 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 429.75 m 181 429.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 185 429.75 m 215 429.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 429.75 m 254 429.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 429.75 m 288 429.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 429.75 m 326 429.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 429.75 m 373 429.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 429.75 m 424 429.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 429.75 m 470 429.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 429.75 m 520 429.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 524 429.75 m 563 429.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 267.75 m 181 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 185 267.75 m 215 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 267.75 m 254 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 267.75 m 288 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 267.75 m 326 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 267.75 m 373 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 267.75 m 424 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 267.75 m 470 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 267.75 m 520 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 524 267.75 m 563 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 267.75 m 181 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 257.75 m 181 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 255.75 m 181 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 185 267.75 m 215 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 185 257.75 m 215 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 185 255.75 m 215 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 267.75 m 254 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 257.75 m 254 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 255.75 m 254 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 267.75 m 288 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 257.75 m 288 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 255.75 m 288 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 267.75 m 326 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 257.75 m 326 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 255.75 m 326 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 267.75 m 373 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 257.75 m 373 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 255.75 m 373 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 267.75 m 424 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 257.75 m 424 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 255.75 m 424 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 267.75 m 470 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 257.75 m 470 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 255.75 m 470 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 267.75 m 520 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 257.75 m 520 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 255.75 m 520 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 524 267.75 m 563 267.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 524 257.75 m 563 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 524 255.75 m 563 255.75 l s BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 617.59 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 196.70 617.59 Td (Common Stock) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 294.80 607.59 Td (Additional ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 299.15 601.59 Td (Paid-in ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 298.95 595.59 Td (Capital) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 336.00 613.59 Td (Cumulative ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 334.15 607.59 Td (Distributions ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 340.90 601.59 Td (and Net ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 342.65 595.59 Td (Losses) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 383.00 613.59 Td (Accumulated ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 392.35 607.59 Td (Other) Tj ET Q q 0 0 0 rg BT 407.57 607.59 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 380.05 601.59 Td (Compr) Tj ET Q q 0 0 0 rg BT 398.27 601.59 Td (ehensive ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 381.90 595.59 Td (Income \(Loss\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 441.90 607.59 Td (T) Tj ET Q q 0 0 0 rg BT 445.35 607.59 Td (otal ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 431.05 601.59 Td (Stockholders’) Tj ET Q q 0 0 0 rg BT 465.94 601.59 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 439.80 595.59 Td (Equity) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 477.20 601.59 Td (Noncontr) Tj ET Q q 0 0 0 rg BT 501.42 601.59 Td (olling ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 485.35 595.59 Td (Inter) Tj ET Q q 0 0 0 rg BT 498.24 595.59 Td (ests) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 527.00 595.59 Td (T) Tj ET Q q 0 0 0 rg BT 530.45 595.59 Td (otal Equity) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 170.55 606.59 Td (Class ) Tj ET Q q 0 0 0 rg BT 185.39 606.59 Td (A) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 243.50 606.59 Td (Class ) Tj ET Q q 0 0 0 rg BT 258.56 606.59 Td (T) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 595.59 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 154.35 595.59 Td (Shar) Tj ET Q q 0 0 0 rg BT 166.58 595.59 Td (es) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 187.80 595.59 Td (Amounts) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 227.35 595.59 Td (Shar) Tj ET Q q 0 0 0 rg BT 239.58 595.59 Td (es) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 260.80 595.59 Td (Amounts) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 584.59 Td (Balance, December 31, 2016) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 151.50 584.59 Td (14,074,793) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 187.50 584.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 203.50 584.59 Td (140) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 227.50 584.59 Td (6,046,591) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 260.50 584.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 584.59 Td (61) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 294.50 584.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 304.00 584.59 Td (176,021) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 332.50 584.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 352.00 584.59 Td (\(27,817) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.50 584.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 379.50 584.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 410.50 584.59 Td (\(1) Tj ET Q q 0 0 0 rg BT 415.50 584.59 Td (1) Tj ET Q q 0 0 0 rg BT 418.50 584.59 Td (1) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 421.50 584.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 430.50 584.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 448.00 584.59 Td (148,294) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 476.50 584.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 501.00 584.59 Td (1) Tj ET Q q 0 0 0 rg BT 504.00 584.59 Td (1,674) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 526.50 584.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 541.00 584.59 Td (159,968) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 573.59 Td (Net loss) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 573.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 573.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 573.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 573.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 317.50 573.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 355.00 573.59 Td (\(3,272) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.50 573.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 573.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 452.00 573.59 Td (\(3,272) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 573.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 509.50 573.59 Td (\(26) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 517.50 573.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 545.00 573.59 Td (\(3,298) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 573.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 562.59 Td (Other comprehensive income) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 562.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 562.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 562.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 562.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 317.50 562.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 562.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 412.50 562.59 Td (313) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 458.50 562.59 Td (313) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 562.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 551.50 562.59 Td (313) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 551.59 Td (Issuance of common stock) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 154.50 551.59 Td (2,641,090) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 551.59 Td (27) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 227.50 551.59 Td (4,822,456) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 551.59 Td (48) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 307.00 551.59 Td (71,841) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 551.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 551.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 451.00 551.59 Td (71,916) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 551.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 544.00 551.59 Td (71,916) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 540.59 Td (Stock dividends issued) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 159.00 540.59 Td (308,857) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 209.50 540.59 Td (3) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 232.00 540.59 Td (184,606) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 282.50 540.59 Td (2) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 310.00 540.59 Td (4,643) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 355.00 540.59 Td (\(4,648) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.50 540.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 540.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 461.50 540.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 540.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 554.50 540.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 529.59 Td (Redemptions of common stock) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 157.00 529.59 Td (\(135,800) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 178.50 529.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 207.50 529.59 Td (\(1) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 212.50 529.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 233.00 529.59 Td (\(21,758) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 251.50 529.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 280.50 529.59 Td (\(1) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 285.50 529.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 308.00 529.59 Td (\(1,357) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 323.50 529.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 529.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 529.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 452.00 529.59 Td (\(1,359) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 529.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 529.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 545.00 529.59 Td (\(1,359) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 529.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 518.59 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 518.59 Td (ransfers to redeemable common ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 512.59 Td (stock) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 512.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 512.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 512.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 512.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 312.50 512.59 Td (\(490) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 323.50 512.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 512.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 512.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 456.50 512.59 Td (\(490) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 512.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 512.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 549.50 512.59 Td (\(490) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 512.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 501.59 Td (Distributions declared) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 501.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 501.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 501.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 501.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 317.50 501.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 355.00 501.59 Td (\(3,920) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.50 501.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 501.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 452.00 501.59 Td (\(3,920) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 501.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 501.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 545.00 501.59 Td (\(3,920) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 501.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 490.59 Td (Commissions on stock sales, dealer ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 484.59 Td (manager fees and stockholder ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 478.59 Td (servicing fees to af) Tj ET Q q 0 0 0 rg BT 97.87 478.59 Td (filiate) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 478.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 478.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 478.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 478.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 308.00 478.59 Td (\(4,913) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 323.50 478.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 478.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 478.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 452.00 478.59 Td (\(4,913) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 478.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 478.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 545.00 478.59 Td (\(4,913) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 478.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 467.59 Td (Other of) Tj ET Q q 0 0 0 rg BT 72.55 467.59 Td (fering costs) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 467.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 467.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 467.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 467.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 312.50 467.59 Td (\(668) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 323.50 467.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 467.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 467.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 456.50 467.59 Td (\(668) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 467.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 467.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 549.50 467.59 Td (\(668) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 467.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 456.59 Td (Noncontrolling interests ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 450.59 Td (contributions) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 450.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 450.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 450.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 450.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 317.50 450.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 450.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 450.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 461.50 450.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 504.00 450.59 Td (1,774) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 547.00 450.59 Td (1,774) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 439.59 Td (Distributions to noncontrolling ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 433.59 Td (interests) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 433.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 433.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 433.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 433.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 317.50 433.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 433.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 433.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 461.50 433.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 509.50 433.59 Td (\(25) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 517.50 433.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 552.50 433.59 Td (\(25) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 433.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 422.59 Td (Balance, ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 74.82 422.59 Td (December 31, 2017) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 151.50 422.59 Td (16,888,940) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 187.50 422.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 203.50 422.59 Td (169) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 224.50 422.59 Td (1) Tj ET Q q 0 0 0 rg BT 227.50 422.59 Td (1,031,895) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 260.50 422.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 276.50 422.59 Td (1) Tj ET Q q 0 0 0 rg BT 279.50 422.59 Td (10) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 294.50 422.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 304.00 422.59 Td (245,077) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 332.50 422.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 352.00 422.59 Td (\(39,657) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.50 422.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 379.50 422.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 412.50 422.59 Td (202) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 430.50 422.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 448.00 422.59 Td (205,901) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 476.50 422.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 501.00 422.59 Td (13,397) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 526.50 422.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 541.00 422.59 Td (219,298) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 411.59 Td (Net) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 61.16 411.59 Td ( loss) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 411.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 411.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 411.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 411.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 317.50 411.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 355.00 411.59 Td (\(3,170) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.50 411.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 411.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 452.00 411.59 Td (\(3,170) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 411.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 506.50 411.59 Td (\(213) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 517.50 411.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 545.00 411.59 Td (\(3,383) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 411.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 400.59 Td (Other comprehensive ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 105.48 400.59 Td (loss) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 400.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 400.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 400.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 400.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 317.50 400.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 400.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 413.50 400.59 Td (\(68) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 421.50 400.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 459.50 400.59 Td (\(68) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 400.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 400.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 552.50 400.59 Td (\(68) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 400.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 389.59 Td (Issuance of common stock) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 159.00 389.59 Td (762,335) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 209.50 389.59 Td (7) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 232.00 389.59 Td (665,366) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 282.50 389.59 Td (7) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 307.00 389.59 Td (13,705) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 389.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 389.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 451.00 389.59 Td (13,719) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 389.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 544.00 389.59 Td (13,719) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 378.59 Td (Stock dividends issued) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 159.00 378.59 Td (171,682) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 209.50 378.59 Td (2) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 232.00 378.59 Td (1) Tj ET Q q 0 0 0 rg BT 235.00 378.59 Td (13,539) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 282.50 378.59 Td (1) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 310.00 378.59 Td (2,578) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 355.00 378.59 Td (\(2,581) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.50 378.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 378.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 461.50 378.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 378.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 554.50 378.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 367.59 Td (Redemptions of common stock) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 157.00 367.59 Td (\(203,084) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 178.50 367.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 207.50 367.59 Td (\(2) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 212.50 367.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 233.00 367.59 Td (\(39,913) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 251.50 367.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 367.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 308.00 367.59 Td (\(2,120) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 323.50 367.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 367.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 367.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 452.00 367.59 Td (\(2,122) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 367.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 367.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 545.00 367.59 Td (\(2,122) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 367.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 356.59 Td (T) Tj ET Q q 0 0 0 rg BT 55.95 356.59 Td (ransfers ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 76.44 356.59 Td (from) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 88.11 356.59 Td ( redeemable common ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 350.59 Td (stock) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 350.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 350.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 350.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 350.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 314.50 350.59 Td (765) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 350.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 350.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 458.50 350.59 Td (765) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 350.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 551.50 350.59 Td (765) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 339.59 Td (Distributions declared) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 339.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 339.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 339.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 339.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 317.50 339.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 355.00 339.59 Td (\(2,206) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.50 339.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 339.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 452.00 339.59 Td (\(2,206) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 339.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 339.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 545.00 339.59 Td (\(2,206) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 339.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 328.59 Td (Commissions on stock sales, dealer ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 322.59 Td (manager fees and stockholder ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 316.59 Td (servicing fees to af) Tj ET Q q 0 0 0 rg BT 97.87 316.59 Td (filiate) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 316.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 316.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 316.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 316.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 312.50 316.59 Td (\(685) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 323.50 316.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 316.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 316.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 456.50 316.59 Td (\(685) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 316.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 316.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 549.50 316.59 Td (\(685) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 316.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 305.59 Td (Other of) Tj ET Q q 0 0 0 rg BT 72.55 305.59 Td (fering costs) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 305.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 305.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 305.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 305.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 312.50 305.59 Td (\(129) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 323.50 305.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 305.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 305.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 456.50 305.59 Td (\(129) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 305.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 511.50 305.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 549.50 305.59 Td (\(129) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 305.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 294.59 Td (Noncontrolling interests ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 288.59 Td (contributions) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 288.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 288.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 288.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 288.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 317.50 288.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 288.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 288.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 461.50 288.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 508.50 288.59 Td (518) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 551.50 288.59 Td (518) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 277.59 Td (Distributions to noncontrolling ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 271.59 Td (interests) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 172.50 271.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 271.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 245.50 271.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 279.50 271.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 317.50 271.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.50 271.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 415.50 271.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 461.50 271.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 506.50 271.59 Td (\(350) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 517.50 271.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 549.50 271.59 Td (\(350) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 271.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 260.59 Td (Balance,) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 73.32 260.59 Td ( June 30, 2018) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 151.50 260.59 Td (17,619,873) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 187.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 203.50 260.59 Td (176) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 224.50 260.59 Td (1) Tj ET Q q 0 0 0 rg BT 227.50 260.59 Td (1,770,887) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 260.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 276.50 260.59 Td (1) Tj ET Q q 0 0 0 rg BT 279.50 260.59 Td (18) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 294.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 304.00 260.59 Td (259,191) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 332.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 352.00 260.59 Td (\(47,614) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.50 260.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 379.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 412.50 260.59 Td (134) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 430.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 448.00 260.59 Td (212,005) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 476.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 501.00 260.59 Td (13,352) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 526.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 541.00 260.59 Td (225,357) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 239.25 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 31.60 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.35 713.25 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 713.25 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 713.25 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 713.25 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 713.25 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.65 695.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 248.47 695.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 283.02 695.25 Td (A) Tj ET Q q 0 0 0 rg BT 289.50 695.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 354.42 695.25 Td ( CASH FLOWS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 677.25 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 659.25 Td (\(in thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 627.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 627.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 627.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 627.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 627.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 607.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 607.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 607.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 607.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 607.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 587.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 587.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 587.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 587.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 587.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 567.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 567.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 567.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 567.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 567.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 547.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 547.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 547.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 547.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 547.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 527.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 527.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 527.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 527.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 527.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 507.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 507.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 507.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 507.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 507.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 487.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 487.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 487.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 487.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 487.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 467.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 467.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 467.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 467.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 467.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 447.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 447.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 447.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 447.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 447.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 427.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 427.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 427.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 427.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 427.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 407.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 407.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 407.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 407.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 407.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 387.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 387.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 387.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 387.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 387.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 367.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 367.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 367.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 367.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 367.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 347.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 347.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 347.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 347.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 347.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 327.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 327.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 327.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 327.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 327.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 307.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 307.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 307.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 307.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 307.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 287.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 287.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 287.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 287.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 287.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 267.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 267.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 267.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 267.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 267.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 247.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 247.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 247.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 247.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 247.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 227.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 227.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 227.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 227.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 227.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 207.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 207.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 207.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 207.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 207.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 187.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 187.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 187.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 187.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 187.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 167.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 167.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 167.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 167.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 167.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 147.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 147.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 147.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 147.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 147.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 127.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 127.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 127.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 127.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 127.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 107.75 380.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 107.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 107.75 62.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 107.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 107.75 62.00 -10.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 637.75 m 496.5 637.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 637.75 m 500.5 637.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 637.75 m 562.5 637.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 637.75 m 496.5 637.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 627.75 m 496.5 627.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 637.75 m 500.5 637.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 637.75 m 562.5 637.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 627.75 m 562.5 627.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 627.75 m 496.5 627.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 627.75 m 562.5 627.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 427.75 m 496.5 427.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 417.75 m 496.5 417.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 427.75 m 562.5 427.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 417.75 m 562.5 417.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 347.75 m 496.5 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 347.75 m 562.5 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 347.75 m 496.5 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 337.75 m 496.5 337.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 347.75 m 562.5 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 337.75 m 562.5 337.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 227.75 m 496.5 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 227.75 m 562.5 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 227.75 m 496.5 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 217.75 m 496.5 217.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 227.75 m 562.5 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 217.75 m 562.5 217.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 197.75 m 496.5 197.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 188.75 m 496.5 188.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 186.75 m 496.5 186.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 197.75 m 562.5 197.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 188.75 m 562.5 188.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 186.75 m 562.5 186.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 168.75 m 496.5 168.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 166.75 m 496.5 166.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 168.75 m 562.5 168.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 166.75 m 562.5 166.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 148.75 m 496.5 148.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 146.75 m 496.5 146.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 148.75 m 562.5 148.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 146.75 m 562.5 146.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 138.75 m 496.5 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 136.75 m 496.5 136.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 138.75 m 562.5 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 136.75 m 562.5 136.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 128.75 m 496.5 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 126.75 m 496.5 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 128.75 m 562.5 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 126.75 m 562.5 126.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 118.75 m 496.5 118.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 116.75 m 496.5 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 118.75 m 562.5 118.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 116.75 m 562.5 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 116.75 m 496.5 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 118.75 m 496.5 118.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 108.75 m 496.5 108.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 106.75 m 496.5 106.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 116.75 m 562.5 116.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 118.75 m 562.5 118.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 108.75 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 500.5 106.75 m 562.5 106.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 98.75 m 496.5 98.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 96.75 m 496.5 96.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 98.75 m 562.5 98.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 96.75 m 562.5 96.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 88.75 m 496.5 88.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 86.75 m 496.5 86.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 88.75 m 562.5 88.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 86.75 m 562.5 86.75 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 445.25 641.51 Td (For) Tj ET Q q 0 0 0 rg BT 456.01 641.51 Td ( the Six Months Ended June 30,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 458.00 630.51 Td (2018) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 524.00 630.51 Td (2017) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 620.40 Td (Cash Flows from Operating ) Tj ET Q q 0 0 0 rg BT 132.33 620.40 Td (Activities:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 610.40 Td (Net loss) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.00 610.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.55 610.45 Td (\(3,383) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 610.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 503.00 610.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 610.45 Td (\(4,036) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 610.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 600.40 Td (Adjustment to reconcile) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 138.26 600.40 Td ( net loss ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 162.95 600.40 Td (to net cash) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 192.89 600.40 Td ( provided by) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 228.27 600.40 Td ( operating activities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 590.40 Td (Equity in income of unconsolidated entity) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 480.80 590.45 Td (\(131) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 590.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 550.30 590.45 Td (\(26) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 590.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 580.40 Td (Distribution of earnings from unconsolidated entity) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.65 580.40 Td (29) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 580.40 Td (26) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 570.40 Td (Depreciation and amortization) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 474.40 570.40 Td (10,172) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.90 570.40 Td (5,467) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 560.40 Td (Unrealized) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 131.70 560.40 Td ( gain ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 147.26 560.40 Td (on real estate equity securities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 480.80 560.45 Td (\(314) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 560.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 560.40 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 550.40 Td (Insurance proceeds received for repair and cleanup costs) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.65 550.40 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.90 550.40 Td (2,368) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 540.40 Td (Noncash interest income on real estate-related investment) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.65 540.40 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 550.30 540.45 Td (\(38) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 540.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 530.40 Td (Deferred rents) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.55 530.45 Td (\(1,042) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 530.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 550.30 530.45 Td (\(1) Tj ET Q q 0 0 0 rg BT 556.13 530.45 Td (1) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 530.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 520.40 Td (Bad debt expense) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.15 520.40 Td (179) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.15 520.40 Td (213) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 510.40 Td (Amortization of above- and below-market leases, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.55 510.45 Td (\(1,823) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 510.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 546.80 510.45 Td (\(329) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 510.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 500.40 Td (Amortization of deferred financing costs) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.15 500.40 Td (530) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.15 500.40 Td (384) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 490.40 Td (Unrealized \(gain\) loss on derivative instruments) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 484.30 490.45 Td (\(61) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 490.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 490.40 Td (73) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 89.00 480.40 Td (Changes in operating assets and liabilities:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 470.40 Td (Rents and other receivables) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.55 470.45 Td (\(2,259) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 470.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.15 470.40 Td (380) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 460.40 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.55 460.45 Td (\(1,370) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 460.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 546.80 460.45 Td (\(995) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 460.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 450.40 Td (Accounts payable and accrued liabilities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.15 450.40 Td (412) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 450.45 Td (\(3,104) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 450.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 440.40 Td (Due to af) Tj ET Q q 0 0 0 rg BT 126.92 440.40 Td (filiates) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 490.15 440.40 Td (6) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 556.15 440.40 Td (6) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 101.00 430.40 Td (Other liabilities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 477.90 430.40 Td (1,621) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.15 430.40 Td (417) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 113.00 420.40 Td (Net cash ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 139.04 420.40 Td (provided by) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 172.68 420.40 Td ( operating activities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 477.90 420.40 Td (2,566) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.15 420.40 Td (795) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 410.40 Td (Cash Flows from Investing ) Tj ET Q q 0 0 0 rg BT 130.39 410.40 Td (Activities:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 400.40 Td (Improvements to real estate) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.55 400.45 Td (\(4,768) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 400.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 400.45 Td (\(4,489) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 400.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 390.40 Td (Investment in real estate securities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.55 390.45 Td (\(6,986) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 390.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 390.40 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 380.40 Td (Payments for construction in progress) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.55 380.45 Td (\(3,244) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 380.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 380.45 Td (\(2,325) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 380.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 370.40 Td (Payof) Tj ET Q q 0 0 0 rg BT 87.20 370.40 Td (f of real estate loan receivable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 477.90 370.40 Td (3,500) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 370.40 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 360.40 Td (Purchase of interest rate cap agreement) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.80 360.45 Td (\(8) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 360.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 360.40 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 350.40 Td (Proceeds from insurance claims) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.15 350.40 Td (237) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.15 350.40 Td (908) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 113.00 340.40 Td (Net cash ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 139.04 340.40 Td (used in) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 159.07 340.40 Td ( investing activities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 472.05 340.45 Td (\(1) Tj ET Q q 0 0 0 rg BT 477.88 340.45 Td (1,269) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 340.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 340.45 Td (\(5,906) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 340.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 330.40 Td (Cash Flows from Financing ) Tj ET Q q 0 0 0 rg BT 132.33 330.40 Td (Activities:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 320.40 Td (Proceeds from notes payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 477.90 320.40 Td (1,753) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.90 320.40 Td (1,951) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 310.40 Td (Principal payments on notes payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.55 310.45 Td (\(2,166) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 310.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 310.40 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 300.40 Td (Payments of deferred financing costs ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 480.80 300.45 Td (\(100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 300.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 550.30 300.45 Td (\(58) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 300.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 290.40 Td (Principal payments on capital lease obligations) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 480.80 290.45 Td (\(175) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 290.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 290.40 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 280.40 Td (Proceeds from issuance of common stock) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 474.40 280.40 Td (12,509) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 280.40 Td (52,336) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 270.40 Td (Payments to redeem common stock) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.55 270.45 Td (\(2,122) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 270.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 546.80 270.45 Td (\(302) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 270.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 260.40 Td (Payments of commissions on stock sales, dealer manager fees and stockholder servicing fees) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 475.55 260.45 Td (\(1,185) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 260.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 541.55 260.45 Td (\(3,161) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 260.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 250.40 Td (Distributions paid) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 480.80 250.45 Td (\(842) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 250.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 546.80 250.45 Td (\(677) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 250.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 240.40 Td (Noncontrolling interest contributions) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.15 240.40 Td (518) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 240.40 Td (80) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 230.40 Td (Distributions to noncontrolling interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 480.80 230.45 Td (\(350) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 230.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 550.30 230.45 Td (\(25) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 559.65 230.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 113.00 220.40 Td (Net cash ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 139.04 220.40 Td (provided by ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 174.43 220.40 Td (financing activities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 477.90 220.40 Td (7,840) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 220.40 Td (50,144) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 210.40 Td (Net ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 64.86 210.40 Td (\(decrease\) increase ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 120.04 210.40 Td (in cash, cash equivalents and restricted cash) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 480.80 210.45 Td (\(863) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 210.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 210.40 Td (45,033) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 200.40 Td (Cash, cash equivalents and restricted cash, beginning of period) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 474.40 200.40 Td (35,053) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 200.40 Td (47,126) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 190.40 Td (Cash, cash equivalents and restricted cash, end of period) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.00 190.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 474.40 190.40 Td (34,190) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 503.00 190.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.40 190.40 Td (92,159) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 180.40 Td (Supplemental Disclosure of Cash Flow Information:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 170.40 Td (Interest paid, net of capitalized interest of) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 187.42 170.40 Td ( $2,607 ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 210.17 170.40 Td (and ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 222.03 170.40 Td ($1,710) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.28 170.40 Td ( for the) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 261.49 170.40 Td ( six) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 271.41 170.40 Td ( months ended) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 312.24 170.40 Td ( June 30, 2018) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 353.07 170.40 Td ( and ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 366.68 170.40 Td (2017) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 380.68 170.40 Td (, respectively) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.00 170.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 477.90 170.40 Td (5,160) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 503.00 170.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.90 170.40 Td (2,595) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 53.00 160.40 Td (Supplemental Disclosure of Noncash Investing and Financing ) Tj ET Q q 0 0 0 rg BT 227.77 160.40 Td (Activities:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 150.40 Td (Distributions paid to common stockholders through common stock issuances pursuant to the dividend reinvestment plan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.00 150.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 477.90 150.40 Td (1,356) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 503.00 150.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.90 150.40 Td (1,084) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 140.40 Td (Increase in accrued improvements to real estate) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.00 140.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.15 140.40 Td (218) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 503.00 140.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.15 140.40 Td (158) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 130.40 Td (Increase in other of) Tj ET Q q 0 0 0 rg BT 125.10 130.40 Td (fering costs due to af) Tj ET Q q 0 0 0 rg BT 183.67 130.40 Td (filiates) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.00 130.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.15 130.40 Td (129) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 503.00 130.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.15 130.40 Td (496) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 120.40 Td (Stock dividends issued) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.00 120.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 477.90 120.40 Td (2,581) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 503.00 120.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 543.90 120.40 Td (2,225) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 110.40 Td (Increase in distributions payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.00 110.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 490.15 110.40 Td (8) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 503.00 110.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.65 110.40 Td (51) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 100.40 Td (Foreign currency translation) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 150.31 100.40 Td ( \(loss\) gai) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 177.91 100.40 Td (n) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 181.41 100.40 Td ( on investment in unconsolidated entity) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.00 100.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 484.30 100.45 Td (\(68) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 493.65 100.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 503.00 100.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.15 100.40 Td (191) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 71.00 90.40 Td (Increase in construction in progress payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 437.00 90.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.65 90.40 Td (23) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 503.00 90.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.15 90.40 Td (649) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 70.25 Td (See accompanying condensed notes to consolidated financial statements.) Tj ET Q endstream endobj 17 0 obj <>] /Rotate 0 /Contents 18 0 R>> endobj 18 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 142.65 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 244.16 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 250.65 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 320.75 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 399.93 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 413.92 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 420.40 694.60 Td (TEMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 629.10 Td (1. ) Tj ET Q q 0 0 0 rg BT 72.00 629.10 Td (ORGANIZA) Tj ET Q q 0 0 0 rg BT 126.26 629.10 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 611.10 Td (KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 205.42 611.10 Td ( II, Inc. \(the “Company”\) was formed on February 6, 2013 as a Maryland corporation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (that elected to be taxed as a real estate investment trust \(“REIT”\) beginning with the taxable year ended December 31, 2014 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (intends to continue to operate in such a manner) Tj ET Q q 0 0 0 rg BT 237.78 587.10 Td (. ) Tj ET Q q 0 0 0 rg BT 245.10 587.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 304.81 587.10 Td (s business is conducted through KBS Strategic Opportunity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (Limited Partnership II \(the “Operating Partnership”\), a Delaware limited partnership formed on February 7, 2013. ) Tj ET Q q 0 0 0 rg BT 510.01 575.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (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 256.94 563.10 Td (0.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.77 563.10 Td ( partnership interest in, the Operating Partnership. KBS Strategic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (Opportunity Holdings II LLC \(“REIT) Tj ET Q q 0 0 0 rg BT 200.41 551.10 Td ( Holdings”\), a Delaware limited liability company formed on February 7, 2013, owns the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.54 539.10 Td (99.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.37 539.10 Td ( partnership interest in the Operating Partnership and is the sole limited partner) Tj ET Q q 0 0 0 rg BT 433.85 539.10 Td (. ) Tj ET Q q 0 0 0 rg BT 441.17 539.10 Td (The Company is the sole ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (member and manager of REIT) Tj ET Q q 0 0 0 rg BT 171.49 527.10 Td ( Holdings. ) Tj ET Q q 0 0 0 rg BT 215.48 527.10 Td (The Company has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.75 527.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.73 527.10 Td ( wholly owned taxable REIT) Tj ET Q q 0 0 0 rg BT 426.08 527.10 Td ( subsidiaries \(“TRS”\), two of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (which lease the Company’) Tj ET Q q 0 0 0 rg BT 155.31 515.10 Td (s hotel properties and in turn contract with independent hotel management companies that manage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (the day-to-day operations of the Company’) Tj ET Q q 0 0 0 rg BT 221.40 503.10 Td (s hotels; the third consolidates the Company’) Tj ET Q q 0 0 0 rg BT 401.38 503.10 Td (s wholly owned ) Tj ET Q q 0 0 0 rg BT 467.02 503.10 Td (TRSs. ) Tj ET Q q 0 0 0 rg BT 496.58 503.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 556.29 503.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (TRSs are subject to federal and state income tax at regular corporate tax rates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 473.10 Td (Subject to certain restrictions and limitations, the business of the Company has been externally managed by KBS Capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.10 Td (Advisors LLC \(the “Advisor”\), an af) Tj ET Q q 0 0 0 rg BT 196.50 461.10 Td (filiate of the Company) Tj ET Q q 0 0 0 rg BT 286.11 461.10 Td (, since July 2013 pursuant to an advisory agreement \(the “Advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.10 Td (Agreement”\). ) Tj ET Q q 0 0 0 rg BT 109.01 449.10 Td (The ) Tj ET Q q 0 0 0 rg BT 126.51 449.10 Td (Advisor conducts the Company’) Tj ET Q q 0 0 0 rg BT 255.66 449.10 Td (s operations and manages its portfolio of real estate loans, opportunistic real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.10 Td (estate, and other real estate-related investments. ) Tj ET Q q 0 0 0 rg BT 245.62 437.10 Td (The ) Tj ET Q q 0 0 0 rg BT 263.12 437.10 Td (Advisor has entered into a sub-advisory agreement with ST) Tj ET Q q 0 0 0 rg BT 500.04 437.10 Td (AM, a real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.10 Td (estate operating company to provide real estate acquisition and portfolio management services to the ) Tj ET Q q 0 0 0 rg BT 453.81 425.10 Td (Advisor in connection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.10 Td (with any investments the Company may make in value-added real estate, distressed debt, and real estate-related investments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.10 Td (Europe. On July 3, 2013, the Company issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.37 401.10 Td (21,739) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.87 401.10 Td ( shares of its common stock to the ) Tj ET Q q 0 0 0 rg BT 404.19 401.10 Td (Advisor at a purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.92 401.10 Td ($9.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.42 401.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.10 Td (per share. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 371.10 Td (The Company expects to invest in and manage a diverse portfolio of opportunistic real estate, real estate-related loans, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (real estate-related debt securities and other real estate-related investments located in the United States and Europe. Such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (investments may include the acquisition of distressed debt, the origination and acquisition of mortgage, mezzanine, bridge and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.10 Td (other real estate-related loans, investment in opportunistic real estate and investments in real estate-related debt securities such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (as residential and commercial mortgage-backed securities and collateralized debt obligations. ) Tj ET Q q 0 0 0 rg BT 428.06 323.10 Td (The Company may also invest in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (entities that make similar investments. ) Tj ET Q q 0 0 0 rg BT 205.03 311.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.47 311.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.30 311.10 Td (, the Company had invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.45 311.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.45 311.10 Td ( hotel properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.43 311.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.09 311.10 Td ( of) Tj ET Q q 0 0 0 rg BT 521.74 311.10 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.49 299.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.92 299.10 Td ( apartment building, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.24 299.10 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.68 299.10 Td ( investment in an unconsolidated entity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.03 299.10 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.47 299.10 Td ( investment in real estate equity securities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (Additionally as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.21 287.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.04 287.10 Td (, the Company had entered into a joint venture to develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.76 287.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.20 287.10 Td ( retail property) Tj ET Q q 0 0 0 rg BT 485.96 287.10 Td (, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (currently under construction.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 257.10 Td (From July 3, 2013 to ) Tj ET Q q 0 0 0 rg BT 157.57 257.10 Td (August 1) Tj ET Q q 0 0 0 rg BT 193.59 257.10 Td (1, 2014, the Company conducted a private placement of) Tj ET Q q 0 0 0 rg BT 417.22 257.10 Td (fering \(the “Private Of) Tj ET Q q 0 0 0 rg BT 507.28 257.10 Td (fering”\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (exempt from registration under Regulation D of the Securities ) Tj ET Q q 0 0 0 rg BT 299.71 245.10 Td (Act of 1933, as amended \(the “Act”\). ) Tj ET Q q 0 0 0 rg BT 453.92 245.10 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.67 233.10 Td (3,619,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.67 233.10 Td ( shares of common stock for gross of) Tj ET Q q 0 0 0 rg BT 256.52 233.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.76 233.10 Td ($32.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 233.10 Td ( in the Private Of) Tj ET Q q 0 0 0 rg BT 454.34 233.10 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 215.10 Td (On November 14, 2013, the Company filed a registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 394.35 215.10 Td (1 with the Securities and Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (Commission \(the “SEC”\) to of) Tj ET Q q 0 0 0 rg BT 172.09 203.10 Td (fer a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.51 203.10 Td (180,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.51 203.10 Td ( shares of common stock for sale to the public \(the “Public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 191.10 Td (fering”\), of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.29 191.10 Td (100,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.29 191.10 Td ( shares were registered in a primary of) Tj ET Q q 0 0 0 rg BT 337.65 191.10 Td (fering and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.96 191.10 Td (80,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.96 191.10 Td ( shares were registered to be sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (under the Company’) Tj ET Q q 0 0 0 rg BT 131.15 179.10 Td (s dividend reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 253.72 179.10 Td (The SEC declared the Company’) Tj ET Q q 0 0 0 rg BT 385.35 179.10 Td (s registration statement ef) Tj ET Q q 0 0 0 rg BT 488.20 179.10 Td (fective on ) Tj ET Q q 0 0 0 rg BT 529.85 179.10 Td (August ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (12, 2014. On February 1) Tj ET Q q 0 0 0 rg BT 147.45 167.10 Td (1, 2016, the Company filed an amended registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 448.96 167.10 Td (1 with the SEC to of) Tj ET Q q 0 0 0 rg BT 530.73 167.10 Td (fer a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (second class of common stock designated as Class ) Tj ET Q q 0 0 0 rg BT 253.72 155.10 Td (T) Tj ET Q q 0 0 0 rg BT 259.65 155.10 Td ( shares and to designate its initially of) Tj ET Q q 0 0 0 rg BT 410.83 155.10 Td (fered and outstanding common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (as Class ) Tj ET Q q 0 0 0 rg BT 83.95 143.10 Td (A) Tj ET Q q 0 0 0 rg BT 90.62 143.10 Td ( shares. Pursuant to the amended registration statement, the Company is of) Tj ET Q q 0 0 0 rg BT 388.98 143.10 Td (fering to sell any combination of Class ) Tj ET Q q 0 0 0 rg BT 545.90 143.10 Td (A) Tj ET Q q 0 0 0 rg BT 552.57 143.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (and Class ) Tj ET Q q 0 0 0 rg BT 90.43 131.10 Td (T) Tj ET Q q 0 0 0 rg BT 96.36 131.10 Td ( shares in the Public Of) Tj ET Q q 0 0 0 rg BT 189.77 131.10 Td (fering but in no event may the Company sell more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.33 131.10 Td (180,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.33 131.10 Td ( of shares of its common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (stock pursuant to the Public Of) Tj ET Q q 0 0 0 rg BT 173.47 119.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 204.67 119.10 Td (The Company commenced of) Tj ET Q q 0 0 0 rg BT 323.06 119.10 Td (fering Class ) Tj ET Q q 0 0 0 rg BT 373.43 119.10 Td (T) Tj ET Q q 0 0 0 rg BT 379.35 119.10 Td ( shares of common stock for sale to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (public on February 17, 2016. KBS Capital Markets Group LLC \(the “Dealer Manager”\), an af) Tj ET Q q 0 0 0 rg BT 425.60 107.10 Td (filiate of the ) Tj ET Q q 0 0 0 rg BT 476.41 107.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 508.24 107.10 Td (, serves as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (the dealer manager of the Public Of) Tj ET Q q 0 0 0 rg BT 192.04 95.10 Td (fering pursuant to a dealer manager agreement originally dated ) Tj ET Q q 0 0 0 rg BT 445.54 95.10 Td (August 12, 2014 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.10 Td (amended and restated February 17, 2016 \(the “Dealer Manager ) Tj ET Q q 0 0 0 rg BT 303.84 83.10 Td (Agreement”\). Previously the Dealer Manager served as dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.10 Td (manager for the Private Of) Tj ET Q q 0 0 0 rg BT 156.50 71.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 185.19 71.10 Td (The Dealer Manager is responsible for marketing the Company’) Tj ET Q q 0 0 0 rg BT 441.22 71.10 Td (s shares. ) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (On January 7, 2015, the Company broke escrow in the Public Of) Tj ET Q q 0 0 0 rg BT 330.94 632.10 Td (fering and through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.86 632.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.69 632.10 Td (, the Company had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (12,242,387) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.94 620.10 Td (1) Tj ET Q q 0 0 0 rg BT 118.57 620.10 Td (1,443,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.57 620.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 223.01 620.10 Td (A) Tj ET Q q 0 0 0 rg BT 229.68 620.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 273.10 620.10 Td (T) Tj ET Q q 0 0 0 rg BT 279.03 620.10 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 392.80 620.10 Td (, in the Public Of) Tj ET Q q 0 0 0 rg BT 461.22 620.10 Td (fering for aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (gross of) Tj ET Q q 0 0 0 rg BT 81.26 608.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.51 608.10 Td ($230.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.40 608.10 Td (, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.67 608.10 Td (496,426) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.17 608.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.61 608.10 Td (146,459) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.11 608.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 409.55 608.10 Td (A) Tj ET Q q 0 0 0 rg BT 416.22 608.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 459.65 608.10 Td (T) Tj ET Q q 0 0 0 rg BT 465.57 608.10 Td ( common stock, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 596.10 Td (, under its dividend reinvestment plan for aggregate gross of) Tj ET Q q 0 0 0 rg BT 338.03 596.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.27 596.10 Td ($6.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.16 596.10 Td (. ) Tj ET Q q 0 0 0 rg BT 466.61 596.10 Td (Also as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.66 596.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 584.10 Td (, the Company had redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.90 584.10 Td (410,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.40 584.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.84 584.10 Td (61,671) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.34 584.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 332.78 584.10 Td (A) Tj ET Q q 0 0 0 rg BT 339.45 584.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 382.88 584.10 Td (T) Tj ET Q q 0 0 0 rg BT 388.81 584.10 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 502.57 584.10 Td (, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.73 584.10 Td ($4.1 ) 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 (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 554.10 Td (On each of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.82 554.10 Td (April 2, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.42 554.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.86 554.10 Td (July 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.03 554.10 Td (, the Company issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.64 554.10 Td (120,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.14 554.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 430.57 554.10 Td (A) Tj ET Q q 0 0 0 rg BT 437.24 554.10 Td ( common stock to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.54 542.10 Td (illowbrook Capital Group LLC, an entity owned and controlled by Keith D. Hall, one of the Company’) Tj ET Q q 0 0 0 rg BT 470.40 542.10 Td (s directors and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 530.10 Td (s Chief Executive Of) Tj ET Q q 0 0 0 rg BT 175.13 530.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 193.04 530.10 Td (, and Peter McMillan III, also one of the Company’) Tj ET Q q 0 0 0 rg BT 398.27 530.10 Td (s directors and the Company’) Tj ET Q q 0 0 0 rg BT 515.47 530.10 Td (s President, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.66 518.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.55 518.10 Td (. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.27 518.10 Td (July 14, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.44 518.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.88 518.10 Td (February 13, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.48 518.10 Td (, the Company issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.08 518.10 Td (214,175) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.58 518.10 Td ( shares and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.51 518.10 Td (10,935) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.01 518.10 Td ( shares, respectively) Tj ET Q q 0 0 0 rg BT 555.16 518.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (of Class ) Tj ET Q q 0 0 0 rg BT 83.95 506.10 Td (A) Tj ET Q q 0 0 0 rg BT 90.62 506.10 Td ( common stock to a business associate of Keith D. Hall and Peter McMillan III for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.30 506.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.19 506.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 494.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 151.05 494.10 Td (. ) Tj ET Q q 0 0 0 rg BT 155.87 494.10 Td (The Company issued these shares of common stock in a private transaction exempt from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (registration requirements of the ) Tj ET Q q 0 0 0 rg BT 177.24 482.10 Td (Act pursuant to Section 4\(2\) of the ) Tj ET Q q 0 0 0 rg BT 318.04 482.10 Td (Act. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 464.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.17 464.10 Td (August 10, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.56 464.10 Td (, the Company filed a registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 380.48 464.10 Td (1 with the SEC to register a proposed follow-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (on of) Tj ET Q q 0 0 0 rg BT 70.15 452.10 Td (fering. Pursuant to the follow-on of) Tj ET Q q 0 0 0 rg BT 211.61 452.10 Td (fering registration statement, the Company proposes to register up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.05 452.10 Td ($500.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.94 452.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (shares of common stock for sale to the public in a primary of) Tj ET Q q 0 0 0 rg BT 293.14 440.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 321.84 440.10 Td (The Company also proposes to register up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.97 440.10 Td ($125.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 428.10 Td ( of shares of common stock pursuant to the dividend reinvestment plan in the follow-on of) Tj ET Q q 0 0 0 rg BT 439.52 428.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 468.22 428.10 Td (The Company can give ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (no assurance that it will commence or complete the follow-on of) Tj ET Q q 0 0 0 rg BT 307.57 416.10 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 398.10 Td (The Company ceased of) Tj ET Q q 0 0 0 rg BT 168.73 398.10 Td (fering shares of common stock in the primary of) Tj ET Q q 0 0 0 rg BT 361.83 398.10 Td (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.71 398.10 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.88 398.10 Td ( and is continuing to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (process subscriptions. Subscriptions must be dated on or before July 31, 2018, and subscriptions and all related documents and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (funds must be received by the Company in good order no later than September 28, 2018.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (2. ) Tj ET Q q 0 0 0 rg BT 72.00 350.10 Td (SUMMAR) Tj ET Q q 0 0 0 rg BT 117.75 350.10 Td (Y) Tj ET Q q 0 0 0 rg BT 124.60 350.10 Td ( OF) Tj ET Q q 0 0 0 rg BT 140.62 350.10 Td ( SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 209.62 350.10 Td ( ) Tj ET Q q 0 0 0 rg BT 211.57 350.10 Td (ACCOUNTING POLICIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 332.10 Td (There have been no significant changes to the Company’) Tj ET Q q 0 0 0 rg BT 299.15 332.10 Td (s accounting policies since it filed its audited financial statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (in its ) Tj ET Q q 0 0 0 rg BT 71.17 320.10 Td (Annual Report on Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.51 320.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.10 320.10 Td (, except for the Company’) Tj ET Q q 0 0 0 rg BT 450.23 320.10 Td (s adoption of the revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (recognition and financial instruments standards issued by the Financial ) Tj ET Q q 0 0 0 rg BT 335.27 308.10 Td (Accounting Standards Board \(“F) Tj ET Q q 0 0 0 rg BT 465.89 308.10 Td (ASB”\) ef) Tj ET Q q 0 0 0 rg BT 503.20 308.10 Td (fective on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (January 1, 2018 and the addition of an accounting policy with respect to real estate equity securities. For further information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (about the Company’) Tj ET Q q 0 0 0 rg BT 130.60 284.10 Td (s accounting policies, refer to the Company’) Tj ET Q q 0 0 0 rg BT 307.49 284.10 Td (s consolidated financial statements and notes thereto for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.58 272.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.17 272.10 Td ( included in the Company’) Tj ET Q q 0 0 0 rg BT 280.26 272.10 Td (s ) Tj ET Q q 0 0 0 rg BT 286.10 272.10 Td (Annual Report on Form 10-K filed with the SEC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (Principles of Consolidation and Basis of Pr) Tj ET Q q 0 0 0 rg BT 232.12 254.10 Td (esentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 236.10 Td (The accompanying unaudited consolidated financial statements and condensed notes thereto have been prepared in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (accordance with U.S. generally accepted accounting principles \(“GAAP”\) for interim financial information as contained within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (the F) Tj ET Q q 0 0 0 rg BT 69.04 212.10 Td (ASB ) Tj ET Q q 0 0 0 rg BT 90.44 212.10 Td (Accounting Standards Codification \(“ASC”\) and the rules and regulations of the SEC, including the instructions to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (Form 10-Q and ) Tj ET Q q 0 0 0 rg BT 113.11 200.10 Td (Article 10 of Regulation S-X. ) Tj ET Q q 0 0 0 rg BT 236.15 200.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 285.48 200.10 Td (, the unaudited consolidated financial statements do not include all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (of the information and footnotes required by GAAP) Tj ET Q q 0 0 0 rg BT 256.58 188.10 Td ( for audited financial statements. In the opinion of management, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (nature, necessary for a fair and consistent presentation of the results for such periods. Operating results for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.19 164.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.17 164.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.61 164.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.28 164.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 152.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 152.10 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 504.63 152.10 Td (December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 140.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 122.10 Td (The consolidated financial statements include the accounts of the Company) Tj ET Q q 0 0 0 rg BT 373.20 122.10 Td (, REIT) Tj ET Q q 0 0 0 rg BT 400.24 122.10 Td ( Holdings, the Operating Partnership ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (and their direct and indirect wholly owned subsidiaries and joint ventures in which the Company has a controlling interest. ) Tj ET Q q 0 0 0 rg BT 544.67 110.10 Td (All ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (significant intercompany balances and transactions are eliminated in consolidation. ) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Use of Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (The preparation of the consolidated financial statements in conformity with GAAP) Tj ET Q q 0 0 0 rg BT 403.21 614.25 Td ( requires management to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 183.18 602.25 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 49.50 590.25 Td (Actual results could materially dif) Tj ET Q q 0 0 0 rg BT 185.95 590.25 Td (fer from those estimates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 554.25 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.26 554.25 Td (fective January 1, 2018, the Company adopted ) Tj ET Q q 0 0 0 rg BT 269.27 554.25 Td (ASU No. 2014-09, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 347.32 554.25 Td (Revenue fr) Tj ET Q q 0 0 0 rg BT 389.98 554.25 Td (om Contracts with Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.16 554.25 Td ( \(T) Tj ET Q q 0 0 0 rg BT 520.40 554.25 Td (opic 606\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (\(“ASU No. 2014-09”\), using the modified retrospective approach, which requires a cumulative ef) Tj ET Q q 0 0 0 rg BT 439.47 542.25 Td (fect adjustment as of the date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (of the Company’) Tj ET Q q 0 0 0 rg BT 116.71 530.25 Td (s adoption. Under the modified retrospective approach, an entity may also elect to apply this standard to either ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (\(i\) all contracts as of January 1, 2018 or \(ii\) only to contracts that were not completed as of January 1, 2018. ) Tj ET Q q 0 0 0 rg BT 486.04 518.25 Td (A) Tj ET Q q 0 0 0 rg BT 492.71 518.25 Td ( completed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (contract is a contract for which all \(or substantially all\) of the revenue was recognized under legacy GAAP) Tj ET Q q 0 0 0 rg BT 476.47 506.25 Td ( that was in ef) Tj ET Q q 0 0 0 rg BT 532.38 506.25 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (before the date of initial application. ) Tj ET Q q 0 0 0 rg BT 197.32 494.25 Td (The Company elected to apply this standard only to contracts that were not completed as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (of January 1, 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 464.25 Td (Based on the Company’) Tj ET Q q 0 0 0 rg BT 167.82 464.25 Td (s evaluation of contracts within the scope of ) Tj ET Q q 0 0 0 rg BT 346.11 464.25 Td (ASU No. 2014-09, revenue that is impacted by ) Tj ET Q q 0 0 0 rg BT 536.07 464.25 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.25 Td (No. 2014-09 includes revenue generated by other operating income and tenant reimbursements for substantial services earned at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.25 Td (the Company’) Tj ET Q q 0 0 0 rg BT 105.88 440.25 Td (s of) Tj ET Q q 0 0 0 rg BT 120.42 440.25 Td (fice properties and hotel revenues. ) Tj ET Q q 0 0 0 rg BT 260.18 440.25 Td (The recognition of such revenue will occur when the services are provided ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (and the performance obligations are satisfied.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (Hotel Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 395.25 Td (The Company recognizes revenue for hotels as hotel revenue when earned. Revenues are recorded net of any sales or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.25 Td (occupancy tax collected from the Company’) Tj ET Q q 0 0 0 rg BT 226.38 383.25 Td (s guests. ) Tj ET Q q 0 0 0 rg BT 262.22 383.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 312.12 383.25 Td (, some of the Company’) Tj ET Q q 0 0 0 rg BT 407.94 383.25 Td (s hotel rooms are booked through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.25 Td (independent internet travel intermediaries. If the guest pays the independent internet travel intermediary directly) Tj ET Q q 0 0 0 rg BT 497.57 371.25 Td (, revenue for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.25 Td (the room is booked by the Company at the price the Company sold the room to the independent internet travel intermediary) Tj ET Q q 0 0 0 rg BT 543.17 359.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.25 Td (less any discount or commission paid. If the guest pays the Company directly) Tj ET Q q 0 0 0 rg BT 358.52 347.25 Td (, revenue for the room is booked by the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.25 Td (on a gross basis. ) Tj ET Q q 0 0 0 rg BT 117.37 335.25 Td (The Company participates in frequent guest programs sponsored by the brand owners of the Company’) Tj ET Q q 0 0 0 rg BT 529.50 335.25 Td (s hotels ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.25 Td (and the Company expenses the char) Tj ET Q q 0 0 0 rg BT 192.88 323.25 Td (ges associated with those programs, as incurred. Hotel operating revenues are disaggregated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.25 Td (in the real estate footnote into the categories of rooms revenue, food, beverage and convention services revenue, campground ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.25 Td (revenue and other revenue to demonstrate how economic factors af) Tj ET Q q 0 0 0 rg BT 317.82 299.25 Td (fect the nature, amount, timing, and uncertainty of revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.25 Td (and cash flows.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 269.25 Td (Room revenue is generated through contracts with customers whereby the customer agrees to pay a daily rate for right to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.25 Td (use a hotel room. ) Tj ET Q q 0 0 0 rg BT 120.69 257.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 180.40 257.25 Td (s contract performance obligations are fulfilled at the end of the day that the customer is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.25 Td (provided the room and revenue is recognized daily at the contract rate. Payment from the customer is secured at the end of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.25 Td (contract upon check-out by the customer from the Company’) Tj ET Q q 0 0 0 rg BT 293.32 233.25 Td (s hotel. ) Tj ET Q q 0 0 0 rg BT 324.52 233.25 Td (The Company records contract liabilities in the form of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.25 Td (advanced deposits when a customer or group of customers provides a deposit for a future stay at the Company’) Tj ET Q q 0 0 0 rg BT 493.27 221.25 Td (s hotels. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.25 Td (Advanced deposits for room revenue are included in the balance of other liabilities on the consolidated balance sheet. ) Tj ET Q q 0 0 0 rg BT 521.28 209.25 Td (Advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.25 Td (deposits are recognized as revenue at the time of the guest’) Tj ET Q q 0 0 0 rg BT 284.96 197.25 Td (s stay) Tj ET Q q 0 0 0 rg BT 306.81 197.25 Td (. ) Tj ET Q q 0 0 0 rg BT 311.63 197.25 Td (The Company notes no significant judgments regarding the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.25 Td (recognition of rooms revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 167.25 Td (Food, beverage and convention revenue is generated through contracts with customers whereby the customer agrees to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.25 Td (pay a contract rate for restaurant dining services or convention services. ) Tj ET Q q 0 0 0 rg BT 339.20 155.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 398.91 155.25 Td (s contract performance obligations are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.25 Td (fulfilled at the time that the meal is provided to the customer or when the convention facilities and related dining amenities are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.25 Td (provided to the customer) Tj ET Q q 0 0 0 rg BT 148.65 131.25 Td (. ) Tj ET Q q 0 0 0 rg BT 153.46 131.25 Td (The Company recognizes food and beverage revenue upon the fulfillment of the contract with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.25 Td (customer) Tj ET Q q 0 0 0 rg BT 85.60 119.25 Td (. ) Tj ET Q q 0 0 0 rg BT 90.42 119.25 Td (The Company records contract liabilities in the form of advanced deposits when a customer or group of customers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.25 Td (provides a deposit for a future banquet event at the Company’) Tj ET Q q 0 0 0 rg BT 296.65 107.25 Td (s hotels. ) Tj ET Q q 0 0 0 rg BT 331.38 107.25 Td (Advanced deposits for food and beverage revenue are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.25 Td (included in the balance of other liabilities on the consolidated balance sheet. ) Tj ET Q q 0 0 0 rg BT 356.34 95.25 Td (Advanced deposits for banquet services are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.25 Td (recognized as revenue following the completion of the banquet services. ) Tj ET Q q 0 0 0 rg BT 341.16 83.25 Td (The Company notes no significant judgements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.25 Td (regarding the recognition of food and beverage revenue.) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (Campground revenue is recognized on a straight-line basis over the term of the lease when collectability is reasonably ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (assured.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (Real Estate Equity Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 584.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 131.71 584.10 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 49.50 572.10 Td (security) Tj ET Q q 0 0 0 rg BT 80.51 572.10 Td (. ) Tj ET Q q 0 0 0 rg BT 85.33 572.10 Td (T) Tj ET Q q 0 0 0 rg BT 91.08 572.10 Td (ransaction costs that are directly attributable to the acquisition of real estate equity securities are capitalized to its cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (basis. Upon adoption of ) Tj ET Q q 0 0 0 rg BT 147.00 560.10 Td (ASU No. 2016-01, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 225.05 560.10 Td (Financial Instruments - Overall \(Subtopic 825-10\): Recognition and Measur) Tj ET Q q 0 0 0 rg BT 531.85 560.10 Td (ement ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (of Financial ) Tj ET Q q 0 0 0 rg BT 100.98 548.10 Td (Assets and Financial Liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.42 548.10 Td (\(“ASU No. 2016-01”\) on January 1, 2018, unrealized gains and losses on real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (estate equity securities are recognized in earnings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 518.10 Td (Dividend income from real estate equity securities is recognized on an accrual basis based on eligible shares as of the ex-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (dividend date.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (Segments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 470.10 Td (The Company has invested in opportunistic real estate investments, real estate equity securities and originated a loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (secured by a non-stabilized real estate asset, which was repaid on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.29 458.10 Td (January 12, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.89 458.10 Td (. In general, the Company intends to hold its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (investments in opportunistic real estate, real estate equity securities and other real estate-related assets for capital appreciation. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 434.10 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 49.50 422.10 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 516.94 422.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (investments exhibit similar long-term financial performance and have similar economic characteristics. ) Tj ET Q q 0 0 0 rg BT 464.72 410.10 Td (These investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 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 454.68 398.10 Td (As a result, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 386.10 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 49.50 374.10 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 49.50 362.10 Td (Company currently aggregates its operating segments into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.72 362.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.16 362.10 Td ( reportable business segment. In addition, the Company has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (invested in a participating loan facility secured by a portfolio of light industrial properties located in Europe. However) Tj ET Q q 0 0 0 rg BT 522.29 350.10 Td (, based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (on the Company’) Tj ET Q q 0 0 0 rg BT 118.38 338.10 Td (s investment portfolio and future investment focus, the Company does not believe that its investment in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (European asset is a reportable segment.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (Per) Tj ET Q q 0 0 0 rg BT 64.30 308.10 Td ( Shar) Tj ET Q q 0 0 0 rg BT 87.19 308.10 Td (e Data) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 290.10 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 49.50 278.10 Td (stockholders by the weighted-average number of shares of common stock issued and outstanding for each class of share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (outstanding during such period. Diluted net income \(loss\) per share of common stock equals basic net income \(loss\) per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (of common stock as there were no potentially dilutive securities outstanding during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.25 254.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.24 254.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.68 254.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.35 254.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.17 254.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 242.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 242.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 242.10 Td (. For the purpose of determining the weighted-average number of shares outstanding, stock dividends issued are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (adjusted retroactively and treated as if they were issued and outstanding for all periods presented. ) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 33.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 33.60 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 131.71 632.10 Td (s board of directors has declared and issued stock dividends on shares of the Company’) Tj ET Q q 0 0 0 rg BT 480.52 632.10 Td (s common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 620.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.81 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.25 620.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.92 620.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.74 620.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.57 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.01 620.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.01 620.10 Td ( as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 595.60 171.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 221.00 595.60 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.00 595.60 193.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 595.60 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 595.60 141.00 -16.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 595.6 m 221 595.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225 595.6 m 418 595.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 595.6 m 563 595.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 595.6 m 221 595.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225 595.6 m 418 595.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 595.6 m 563 595.6 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 76.90 600.05 Td (Thr) Tj ET Q q 0 0 0 rg BT 91.74 600.05 Td (ee Months Ended June 30,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 237.45 600.05 Td (Amount Declar) Tj ET Q q 0 0 0 rg BT 296.53 600.05 Td (ed per) Tj ET Q q 0 0 0 rg BT 320.61 600.05 Td ( Shar) Tj ET Q q 0 0 0 rg BT 341.20 600.05 Td (e Outstanding ) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 397.71 604.13 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 454.70 600.05 Td (T) Tj ET Q q 0 0 0 rg BT 459.88 600.05 Td (otal Shar) Tj ET Q q 0 0 0 rg BT 494.97 600.05 Td (es Issued) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 126.00 584.06 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.75 584.06 Td (0.005001 shares) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.35 584.06 Td (121,213) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 126.00 568.06 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.75 568.06 Td (0.005001 shares) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.35 568.06 Td (144,436) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 552.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 540.13 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 536.50 Td (Amount declared per share outstanding includes monthly dividends and assumes each share was issued and outstanding for the entire periods presented. ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 526.90 Td (Stock dividends are issued in the same class of shares as the shares for which such stockholder received the stock dividend.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 490.40 171.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 221.00 490.40 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.00 490.40 193.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 490.40 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 490.40 141.00 -16.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 490.4 m 221 490.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225 490.4 m 418 490.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 490.4 m 563 490.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 490.4 m 221 490.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225 490.4 m 418 490.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 490.4 m 563 490.4 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 82.35 494.85 Td (Six Months Ended June 30,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 237.45 494.85 Td (Amount Declar) Tj ET Q q 0 0 0 rg BT 296.53 494.85 Td (ed per) Tj ET Q q 0 0 0 rg BT 320.61 494.85 Td ( Shar) Tj ET Q q 0 0 0 rg BT 341.20 494.85 Td (e Outstanding ) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 397.71 498.93 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 454.70 494.85 Td (T) Tj ET Q q 0 0 0 rg BT 459.88 494.85 Td (otal Shar) Tj ET Q q 0 0 0 rg BT 494.97 494.85 Td (es Issued) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 126.00 478.86 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.75 478.86 Td (0.010002 shares) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.35 478.86 Td (225,738) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 126.00 462.86 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.75 462.86 Td (0.010002 shares) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.35 462.86 Td (285,221) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.90 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 434.93 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 431.30 Td (Amount declared per share outstanding includes monthly dividends and assumes each share was issued and outstanding for the entire periods presented. ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 421.70 Td (Stock dividends are issued in the same class of shares as the shares for which such stockholder received the stock dividend.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 397.70 Td (Until the Company established an estimated net asset value per share of common stock on June 6, 2017, for the purpose of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.70 Td (calculating the dollar amount of the Class ) Tj ET Q q 0 0 0 rg BT 218.07 385.70 Td (A) Tj ET Q q 0 0 0 rg BT 224.74 385.70 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 268.17 385.70 Td (T) Tj ET Q q 0 0 0 rg BT 274.09 385.70 Td ( stock dividends issued, the Company used the Class ) Tj ET Q q 0 0 0 rg BT 486.86 385.70 Td (A) Tj ET Q q 0 0 0 rg BT 493.53 385.70 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 536.96 385.70 Td (T) Tj ET Q q 0 0 0 rg BT 542.88 385.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.70 Td (primary of) Tj ET Q q 0 0 0 rg BT 91.80 373.70 Td (fering price at the time of issuance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 355.70 Td (Cash distributions declared per share of Class ) Tj ET Q q 0 0 0 rg BT 256.18 355.70 Td (A) Tj ET Q q 0 0 0 rg BT 262.85 355.70 Td ( common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.38 355.70 Td ($0.048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.88 355.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.32 355.70 Td ($0.095) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.82 355.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.20 355.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.19 355.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.62 355.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.29 355.70 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.70 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 343.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 343.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 184.37 343.70 Td (. Cash distributions declared per share of Class ) Tj ET Q q 0 0 0 rg BT 374.42 343.70 Td (T) Tj ET Q q 0 0 0 rg BT 380.35 343.70 Td ( common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.88 343.70 Td ($0.025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.38 343.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.82 343.70 Td ($0.049) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.32 343.70 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 331.70 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 331.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.20 331.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.64 331.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.31 331.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.14 331.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.97 331.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 284.63 331.70 Td (. ) Tj ET Q q 0 0 0 rg BT 289.45 331.70 Td (The declared rate of cash distributions for Class ) Tj ET Q q 0 0 0 rg BT 483.09 331.70 Td (T) Tj ET Q q 0 0 0 rg BT 489.02 331.70 Td ( Shares is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.70 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 319.70 Td (ferent than the rate declared for the Class ) Tj ET Q q 0 0 0 rg BT 227.02 319.70 Td (A) Tj ET Q q 0 0 0 rg BT 233.69 319.70 Td ( Shares by an amount equivalent to any applicable daily stockholder servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 307.70 Td (fees. Distributions declared per share of common stock assumes each share was issued and outstanding each day that was a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 295.70 Td (record date during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.02 295.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.00 295.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.44 295.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.11 295.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.94 295.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.77 295.70 Td (. Each day during the period from January 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.10 295.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.10 295.70 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 283.70 Td ( was a record date for distributions. Distributions for this period were calculated based on stockholders of record ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.70 Td (each day during this period at a rate of \(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.77 271.70 Td ($0.00052548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.27 271.70 Td ( per share per day less \(ii\) the applicable daily stockholder servicing fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 259.70 Td (accrued for and allocable to any class of common stock, divided by the number of shares of common stock of such class ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.70 Td (outstanding as of the close of business on each respective record date. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 229.70 Td (Cash distributions declared per share of Class ) Tj ET Q q 0 0 0 rg BT 256.18 229.70 Td (A) Tj ET Q q 0 0 0 rg BT 262.85 229.70 Td ( common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.38 229.70 Td ($0.048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.88 229.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.32 229.70 Td ($0.095) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.82 229.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.20 229.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.19 229.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.62 229.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.29 229.70 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.70 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 217.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 217.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 184.37 217.70 Td (. Cash distributions declared per share of Class ) Tj ET Q q 0 0 0 rg BT 374.42 217.70 Td (T) Tj ET Q q 0 0 0 rg BT 380.35 217.70 Td ( common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.88 217.70 Td ($0.024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.38 217.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.82 217.70 Td ($0.048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.32 217.70 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.70 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 205.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.20 205.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.64 205.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.31 205.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.14 205.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.97 205.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 284.63 205.70 Td (. ) Tj ET Q q 0 0 0 rg BT 289.45 205.70 Td (The declared rate of cash distributions for Class ) Tj ET Q q 0 0 0 rg BT 483.09 205.70 Td (T) Tj ET Q q 0 0 0 rg BT 489.02 205.70 Td ( Shares is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.70 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 193.70 Td (ferent than the rate declared for the Class ) Tj ET Q q 0 0 0 rg BT 227.02 193.70 Td (A) Tj ET Q q 0 0 0 rg BT 233.69 193.70 Td ( Shares by an amount equivalent to any applicable daily stockholder servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.70 Td (fees. Distributions declared per share of common stock assumes each share was issued and outstanding each day that was a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.70 Td (record date during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.02 169.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.00 169.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.44 169.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.11 169.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.94 169.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.77 169.70 Td (. Each day during the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.50 169.70 Td (January 1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.10 169.70 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 157.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 157.70 Td ( was a record date for distributions. Distributions for this period were calculated based on stockholders of record ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.70 Td (each day during this period at a rate of \(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.77 145.70 Td ($0.00052548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.27 145.70 Td ( per share per day less \(ii\) the applicable daily stockholder servicing fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.70 Td (accrued for and allocable to any class of common stock, divided by the number of shares of common stock of such class ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.70 Td (outstanding as of the close of business on each respective record date. ) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 632.10 Td (The Company uses the two-class method to calculate earnings per share. Basic earnings per share is calculated based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (dividends declared \(“distributed earnings”\) and the rights of common shares and participating securities in any undistributed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (earnings, which represents net income remaining after deduction of dividends declared during the period. ) Tj ET Q q 0 0 0 rg BT 473.06 608.10 Td (The undistributed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (earnings are allocated to all outstanding common shares based on the relative percentage of each class of shares to the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (number of outstanding shares. ) Tj ET Q q 0 0 0 rg BT 172.35 584.10 Td (The Company does not have any participating securities outstanding other than Class ) Tj ET Q q 0 0 0 rg BT 515.06 584.10 Td (A) Tj ET Q q 0 0 0 rg BT 521.73 584.10 Td ( Common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (Stock and Class ) Tj ET Q q 0 0 0 rg BT 115.71 572.10 Td (T) Tj ET Q q 0 0 0 rg BT 121.63 572.10 Td ( Common stock during the periods presented.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 554.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 131.21 554.10 Td (s calculated earnings per share for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.75 554.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.74 554.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.18 554.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.85 554.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.67 554.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.50 554.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.94 554.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.94 554.10 Td ( were as follows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (\(in thousands, except share and per share amounts\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 503.60 233.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 503.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 503.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 503.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 503.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 503.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 503.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 503.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 503.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 479.60 233.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 479.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 479.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 479.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 479.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 479.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 479.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 479.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 479.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 455.60 233.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 455.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 455.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 455.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 455.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 455.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 455.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 455.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 455.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 430.60 233.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 430.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 430.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 430.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 430.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 430.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 430.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 430.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 430.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 406.60 233.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 406.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 406.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 406.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 406.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 406.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 406.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 406.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 406.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 374.60 233.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 374.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 374.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 374.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 374.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 374.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 374.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 374.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 374.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 350.60 233.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 350.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 350.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 350.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 350.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 350.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 350.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 350.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 350.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 326.60 233.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 326.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 326.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 326.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 326.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 326.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 326.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 326.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 326.60 66.00 -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 287 519.6 m 353 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 519.6 m 357 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 519.6 m 423 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 519.6 m 493 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 519.6 m 497 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 519.6 m 563 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 519.6 m 353 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 507.6 m 353 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 519.6 m 357 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 519.6 m 423 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 507.6 m 423 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 519.6 m 493 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 507.6 m 493 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 519.6 m 497 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 519.6 m 563 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 507.6 m 563 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 467.6 m 423 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 467.6 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 287 467.6 m 353 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 456.6 m 353 456.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 454.6 m 353 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 467.6 m 423 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 456.6 m 423 456.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 454.6 m 423 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 467.6 m 493 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 456.6 m 493 456.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 454.6 m 493 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 467.6 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 497 456.6 m 563 456.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 454.6 m 563 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 418.6 m 353 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 418.6 m 423 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 418.6 m 493 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 418.6 m 563 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 418.6 m 353 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 407.6 m 353 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 405.6 m 353 405.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 418.6 m 423 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 407.6 m 423 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 405.6 m 423 405.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 418.6 m 493 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 407.6 m 493 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 405.6 m 493 405.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 418.6 m 563 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 407.6 m 563 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 405.6 m 563 405.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 405.6 m 353 405.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 407.6 m 353 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 395.6 m 353 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 393.6 m 353 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 405.6 m 423 405.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 407.6 m 423 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 395.6 m 423 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 393.6 m 423 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 405.6 m 493 405.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 407.6 m 493 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 395.6 m 493 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 393.6 m 493 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 405.6 m 563 405.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 407.6 m 563 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 395.6 m 563 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 393.6 m 563 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 393.6 m 353 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 395.6 m 353 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 375.6 m 353 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 373.6 m 353 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 393.6 m 423 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 395.6 m 423 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 375.6 m 423 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 373.6 m 423 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 393.6 m 493 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 395.6 m 493 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 375.6 m 493 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 373.6 m 493 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 393.6 m 563 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 395.6 m 563 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 375.6 m 563 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 373.6 m 563 373.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 338.6 m 353 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 338.6 m 423 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 338.6 m 493 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 338.6 m 563 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 338.6 m 353 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 327.6 m 353 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 325.6 m 353 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 338.6 m 423 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 327.6 m 423 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 325.6 m 423 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 338.6 m 493 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 327.6 m 493 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 325.6 m 493 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 338.6 m 563 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 327.6 m 563 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 325.6 m 563 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 325.6 m 353 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 327.6 m 353 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 315.6 m 353 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 313.6 m 353 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 325.6 m 423 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 327.6 m 423 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 315.6 m 423 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 313.6 m 423 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 325.6 m 493 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 327.6 m 493 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 315.6 m 493 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 313.6 m 493 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 325.6 m 563 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 327.6 m 563 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 315.6 m 563 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 313.6 m 563 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 313.6 m 353 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 315.6 m 353 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 295.6 m 353 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 293.6 m 353 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 313.6 m 423 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 315.6 m 423 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 295.6 m 423 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 293.6 m 423 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 313.6 m 493 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 315.6 m 493 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 295.6 m 493 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 293.6 m 493 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 313.6 m 563 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 315.6 m 563 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 295.6 m 563 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 293.6 m 563 293.6 l s BT /F2 7.50 Tf ET q 0 0 0 rg BT 306.10 523.72 Td (Thr) Tj ET Q q 0 0 0 rg BT 318.47 523.72 Td (ee Months Ended June 30,) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 450.60 523.72 Td (Six Months Ended June 30,) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 312.00 511.72 Td (2018) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 382.00 511.72 Td (2017) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 452.00 511.72 Td (2018) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 522.00 511.72 Td (2017) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 495.75 Td (Net ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 65.20 495.75 Td (loss) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 76.88 495.75 Td ( attributable to common stockholders) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 495.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 336.25 495.75 Td (\(304) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 350.00 495.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 495.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 400.60 495.75 Td (\(1,280) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 420.00 495.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 495.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 495.75 Td (\(3,170) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 495.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 495.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 495.75 Td (\(3,728) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 495.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 483.75 Td (Less: Class ) Tj ET Q q 0 0 0 rg BT 87.92 483.75 Td (A) Tj ET Q q 0 0 0 rg BT 92.92 483.75 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 338.75 483.75 Td (836) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 408.75 483.75 Td (728) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 473.10 483.75 Td (1,642) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 543.10 483.75 Td (1,410) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 471.75 Td (Less: Class ) Tj ET Q q 0 0 0 rg BT 88.20 471.75 Td (T) Tj ET Q q 0 0 0 rg BT 92.65 471.75 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 338.75 471.75 Td (288) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 408.75 471.75 Td (232) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 478.75 471.75 Td (564) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 548.75 471.75 Td (402) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 459.75 Td (Undistributed net) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 104.79 459.75 Td ( los) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 115.41 459.75 Td (s) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 118.33 459.75 Td ( attributable to common stockholders) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 459.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 330.60 459.75 Td (\(1,428) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 350.00 459.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 459.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 400.60 459.75 Td (\(2,240) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 420.00 459.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 459.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 459.75 Td (\(5,376) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 459.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 459.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 459.75 Td (\(5,540) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 459.75 Td (\)) Tj ET Q BT /F2 7.50 Tf ET 0 0 0 RG /GS0 gs 0.71 w 0 i [] 0 d 1 J 1 j 3 M 52.5 445.5467041015625 m 129.80224609375 445.5467041015625 l s q 0 0 0 rg BT 52.50 446.72 Td (Class ) Tj ET Q q 0 0 0 rg BT 71.05 446.72 Td (A) Tj ET Q q 0 0 0 rg BT 76.05 446.72 Td ( Common Stock:) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 434.75 Td (Undistributed net ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 115.66 434.75 Td (loss) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 127.33 434.75 Td ( attributable to common stockholders) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 434.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 336.25 434.75 Td (\(859) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 350.00 434.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 434.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 400.60 434.75 Td (\(1,378) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 420.00 434.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 434.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 434.75 Td (\(3,235) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 434.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 434.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 434.75 Td (\(3,548) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 434.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 422.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 79.21 422.75 Td (A) Tj ET Q q 0 0 0 rg BT 84.22 422.75 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 338.75 422.75 Td (836) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 408.75 422.75 Td (728) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 473.10 422.75 Td (1,642) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 543.10 422.75 Td (1,410) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 410.75 Td (Net ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 74.20 410.75 Td (loss) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 85.88 410.75 Td ( attributable to Class ) Tj ET Q q 0 0 0 rg BT 149.21 410.75 Td (A) Tj ET Q q 0 0 0 rg BT 154.21 410.75 Td ( common stockholders) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 410.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 340.00 410.75 Td (\(23) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 350.00 410.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 410.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 406.25 410.75 Td (\(650) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 420.00 410.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 410.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 410.75 Td (\(1,593) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 410.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 410.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 410.75 Td (\(2,138) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 410.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 398.75 Td (Net ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 74.20 398.75 Td (loss) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 85.88 398.75 Td ( per common share, basic and diluted) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 398.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 342.50 398.75 Td (—) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 398.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 404.35 398.75 Td (\(0.04) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 420.00 398.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 398.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 474.35 398.75 Td (\(0.09) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 398.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 398.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 544.35 398.75 Td (\(0.14) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 398.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 386.25 Td (W) Tj ET Q q 0 0 0 rg BT 67.98 386.25 Td (eighted-average number of common shares outstanding, basic and ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 378.75 Td (diluted) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 316.25 378.75 Td (17,565,835) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 386.25 378.75 Td (15,632,018) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 456.25 378.75 Td (17,399,380) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 526.25 378.75 Td (15,285,252) Tj ET Q BT /F2 7.50 Tf ET 0 0 0 RG /GS0 gs 0.71 w 0 i [] 0 d 1 J 1 j 3 M 52.5 365.5467041015625 m 129.9453125 365.5467041015625 l s q 0 0 0 rg BT 52.50 366.72 Td (Class ) Tj ET Q q 0 0 0 rg BT 71.33 366.72 Td (T) Tj ET Q q 0 0 0 rg BT 76.20 366.72 Td ( Common Stock:) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 354.75 Td (Undistributed net ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 115.66 354.75 Td (loss) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 127.33 354.75 Td ( attributable to common stockholders) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 354.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 336.25 354.75 Td (\(569) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 350.00 354.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 354.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 406.25 354.75 Td (\(862) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 420.00 354.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 354.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 354.75 Td (\(2,141) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 354.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 354.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 354.75 Td (\(1,992) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 354.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 342.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 79.49 342.75 Td (T) Tj ET Q q 0 0 0 rg BT 83.94 342.75 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 338.75 342.75 Td (288) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 408.75 342.75 Td (232) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 478.75 342.75 Td (564) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 548.75 342.75 Td (402) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 330.75 Td (Net ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 74.20 330.75 Td (loss) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 85.88 330.75 Td ( attributable to Class ) Tj ET Q q 0 0 0 rg BT 149.48 330.75 Td (T) Tj ET Q q 0 0 0 rg BT 153.93 330.75 Td ( common stockholders) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 330.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 336.25 330.75 Td (\(281) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 350.00 330.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 330.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 406.25 330.75 Td (\(630) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 420.00 330.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 330.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 330.75 Td (\(1,577) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 330.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 330.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 330.75 Td (\(1,590) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 330.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 318.75 Td (Net ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 74.20 318.75 Td (loss) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 85.88 318.75 Td ( per common share, basic and diluted) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 318.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 334.35 318.75 Td (\(0.02) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 350.00 318.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 318.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 404.35 318.75 Td (\(0.06) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 420.00 318.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 318.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 474.35 318.75 Td (\(0.14) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 318.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 318.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 544.35 318.75 Td (\(0.19) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 318.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 306.25 Td (W) Tj ET Q q 0 0 0 rg BT 67.98 306.25 Td (eighted-average number of common shares outstanding, basic and ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 298.75 Td (diluted) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 316.25 298.75 Td (1) Tj ET Q q 0 0 0 rg BT 320.00 298.75 Td (1,664,545) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 390.00 298.75 Td (9,776,935) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 456.25 298.75 Td (1) Tj ET Q q 0 0 0 rg BT 460.00 298.75 Td (1,514,548) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 530.00 298.75 Td (8,580,397) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 271.10 Td (Squar) Tj ET Q q 0 0 0 rg BT 75.44 271.10 Td (e Footage, Occupancy and Other) Tj ET Q q 0 0 0 rg BT 215.53 271.10 Td ( Measur) Tj ET Q q 0 0 0 rg BT 250.61 271.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 253.10 Td ( ) Tj ET Q q 0 0 0 rg BT 72.45 253.10 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 49.50 241.10 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 241.10 Td (s independent registered public accounting firm’) Tj ET Q q 0 0 0 rg BT 284.71 241.10 Td (s review of the Company’) Tj ET Q q 0 0 0 rg BT 388.03 241.10 Td (s financial statements in accordance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.10 Td (the standards of the United States Public Company ) Tj ET Q q 0 0 0 rg BT 255.03 229.10 Td (Accounting Oversight Board.) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (13) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 118.39 632.25 Td (Accounting Standards Updates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (In February 2016, the F) Tj ET Q q 0 0 0 rg BT 165.96 614.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 214.87 614.25 Td (ASU No. 2016-02, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 292.92 614.25 Td (Leases \(T) Tj ET Q q 0 0 0 rg BT 330.62 614.25 Td (opic 842\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.67 614.25 Td ( \(“ASU No. 2016-02”\). ) Tj ET Q q 0 0 0 rg BT 467.08 614.25 Td (The amendments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (ASU No. 2016-02 change the existing accounting standards for lease accounting, including requiring lessees to recognize most ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (leases on their balance sheets and making tar) Tj ET Q q 0 0 0 rg BT 228.97 590.25 Td (geted changes to lessor accounting. ) Tj ET Q q 0 0 0 rg BT 372.26 590.25 Td (ASU No. 2016-02 is ef) Tj ET Q q 0 0 0 rg BT 464.58 590.25 Td (fective for annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of ) Tj ET Q q 0 0 0 rg BT 508.27 578.25 Td (ASU No. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (2016-02 as of its issuance is permitted. ) Tj ET Q q 0 0 0 rg BT 209.75 566.25 Td (ASU No. 2016-02 requires a modified retrospective transition approach for all leases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (existing at, or entered into after) Tj ET Q q 0 0 0 rg BT 174.61 554.25 Td (, the date of initial application, with an option to use certain transition relief. ) Tj ET Q q 0 0 0 rg BT 484.34 554.25 Td (The Company is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (currently evaluating the impact of adopting the new lease accounting standard on its consolidated financial statements. Upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (adoption of ) Tj ET Q q 0 0 0 rg BT 97.27 530.25 Td (ASU No. 2016-02, the Company expects to adopt the package of practical expedients for all leases that commenced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (before the ef) Tj ET Q q 0 0 0 rg BT 99.84 518.25 Td (fective date of January 1, 2019. ) Tj ET Q q 0 0 0 rg BT 230.08 518.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 279.41 518.25 Td (, the Company will 1\) not reassess whether any expired or existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (contracts are or contain leases, 2\) not reassess the lease classification for any expired or existing lease, and 3\) not reassess initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (direct costs for any existing leases. ) Tj ET Q q 0 0 0 rg BT 193.72 494.25 Td (The Company does not expect to elect the practical expedient related to using hindsight to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (reevaluate the lease term. In addition, the Company expects to adopt the practical expedient for land easements to not assess ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (whether existing or expired land easements that were not previously accounted for as leases under the current lease accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (standards of ) Tj ET Q q 0 0 0 rg BT 100.42 458.25 Td (T) Tj ET Q q 0 0 0 rg BT 105.83 458.25 Td (opic 840 are or contain a lease under ) Tj ET Q q 0 0 0 rg BT 255.03 458.25 Td (T) Tj ET Q q 0 0 0 rg BT 260.44 458.25 Td (opic 842.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 440.25 Td (In July 2018, the F) Tj ET Q q 0 0 0 rg BT 146.54 440.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 195.44 440.25 Td (ASU No. 2018-1) Tj ET Q q 0 0 0 rg BT 263.12 440.25 Td (1, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.12 440.25 Td (Leases \(T) Tj ET Q q 0 0 0 rg BT 310.82 440.25 Td (opic 842\), T) Tj ET Q q 0 0 0 rg BT 358.51 440.25 Td (ar) Tj ET Q q 0 0 0 rg BT 367.03 440.25 Td (geted Impr) Tj ET Q q 0 0 0 rg BT 410.26 440.25 Td (ovements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.46 440.25 Td ( \(“ASU No. 2018-1) Tj ET Q q 0 0 0 rg BT 525.42 440.25 Td (1”\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (which provides lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (associated lease component and, instead to account for those components as a single component if the nonlease components ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (otherwise would be accounted for under the new revenue recognition standard \(T) Tj ET Q q 0 0 0 rg BT 373.96 404.25 Td (opic 606\) and if certain conditions are met. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (Upon adoption of the lease accounting standard under ) Tj ET Q q 0 0 0 rg BT 267.59 392.25 Td (T) Tj ET Q q 0 0 0 rg BT 273.00 392.25 Td (opic 842, the Company expects to adopt this practical expedient, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (specifically related to its tenant reimbursements which would otherwise be accounted for under the new revenue recognition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (standard. ) Tj ET Q q 0 0 0 rg BT 88.20 368.25 Td (The Company believes the two conditions have been met for tenant reimbursements as 1\) the timing and pattern of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (transfer of the nonlease components and associated lease components are the same and 2\) the lease component would be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.25 Td (classified as an operating lease. In addition, ) Tj ET Q q 0 0 0 rg BT 225.83 344.25 Td (ASU No. 2018-1) Tj ET Q q 0 0 0 rg BT 293.52 344.25 Td (1 provides an additional optional transition method to allow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (entities to apply the new lease accounting standard at the adoption date and recognize a cumulative-ef) Tj ET Q q 0 0 0 rg BT 456.66 332.25 Td (fect adjustment to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (opening balance of retained earnings. ) Tj ET Q q 0 0 0 rg BT 203.61 320.25 Td (An entity’) Tj ET Q q 0 0 0 rg BT 243.88 320.25 Td (s reporting for the comparative periods presented in the financial statements in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (which it adopts the new lease accounting standard will continue to be reported under the current lease accounting standards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 296.25 Td (opic 840. ) Tj ET Q q 0 0 0 rg BT 96.95 296.25 Td (The Company expects to adopt this transition method upon adoption of the lease accounting standard of ) Tj ET Q q 0 0 0 rg BT 515.00 296.25 Td (T) Tj ET Q q 0 0 0 rg BT 520.41 296.25 Td (opic 842 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (on January 1, 2019.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 260.25 Td (3. ) Tj ET Q q 0 0 0 rg BT 72.00 260.25 Td (REAL) Tj ET Q q 0 0 0 rg BT 99.23 260.25 Td ( EST) Tj ET Q q 0 0 0 rg BT 119.89 260.25 Td (A) Tj ET Q q 0 0 0 rg BT 126.37 260.25 Td (TE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 242.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 242.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 242.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 213.66 242.25 Td (s real estate portfolio was composed of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.22 242.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.22 242.25 Td ( hotel properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.20 242.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.86 242.25 Td ( of) Tj ET Q q 0 0 0 rg BT 484.51 242.25 Td (fice properties and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.94 230.25 Td ( apartment building. In addition, the Company has entered into a consolidated joint venture to develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.51 230.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.94 230.25 Td ( retail property) Tj ET Q q 0 0 0 rg BT 548.71 230.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.25 Td (which is currently under construction. ) Tj ET Q q 0 0 0 rg BT 203.72 218.25 Td (The following table summarizes the Company’) Tj ET Q q 0 0 0 rg BT 391.74 218.25 Td (s real estate as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.54 218.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.37 218.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 206.25 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 178.75 320.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 178.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 178.75 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 178.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 178.75 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 156.75 320.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 156.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 156.75 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 156.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 156.75 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 134.75 320.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 134.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 134.75 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 134.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 134.75 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 112.75 320.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 112.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 112.75 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 112.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 112.75 93.00 -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 374 178.75 m 467 178.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 178.75 m 564 178.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 178.75 m 467 178.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 178.75 m 564 178.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 134.75 m 467 134.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 134.75 m 564 134.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 112.75 m 467 112.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 112.75 m 564 112.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 112.75 m 467 112.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 102.75 m 467 102.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 100.75 m 467 100.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 112.75 m 564 112.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 102.75 m 564 102.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 100.75 m 564 100.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.75 181.83 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.75 181.83 Td (December) Tj ET Q q 0 0 0 rg BT 519.25 181.83 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 170.70 Td (Land) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 376.50 170.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 170.70 Td (104,138) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.50 170.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.80 170.70 Td (104,138) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 159.70 Td (Buildings and improvements) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 159.70 Td (366,988) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.80 159.70 Td (362,210) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 148.70 Td (Construction in progress) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 148.70 Td (67,232) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.80 148.70 Td (63,732) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 137.70 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 137.70 Td (enant origination and absorption costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 137.70 Td (18,510) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.80 137.70 Td (19,006) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 126.70 Td (T) Tj ET Q q 0 0 0 rg BT 62.83 126.70 Td (otal real estate, cost) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 126.70 Td (556,868) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.80 126.70 Td (549,086) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 115.70 Td (Accumulated depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.10 115.70 Td (\(27,681) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.80 115.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.10 115.70 Td (\(18,646) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 560.80 115.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 104.70 Td (T) Tj ET Q q 0 0 0 rg BT 62.83 104.70 Td (otal real estate, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 376.50 104.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 104.70 Td (529,187) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.50 104.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.80 104.70 Td (530,440) Tj ET Q BT /F1 10.00 Tf ET 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (The following table provides summary information regarding the Company’) Tj ET Q q 0 0 0 rg BT 376.93 632.10 Td (s real estate as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.73 632.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.56 632.10 Td ( \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 574.60 52.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 102.00 574.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 106.00 574.60 35.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 574.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 145.00 574.60 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 574.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 574.60 21.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.00 574.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 574.60 34.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.00 574.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 574.60 30.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 574.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 574.60 50.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 574.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 574.60 41.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 574.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 574.60 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 574.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 574.60 46.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 574.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 574.60 43.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 574.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.00 574.60 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 540.60 52.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 102.00 540.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 106.00 540.60 35.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 540.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 145.00 540.60 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 540.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 540.60 21.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.00 540.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 540.60 34.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.00 540.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 540.60 30.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 540.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 540.60 50.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 540.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 540.60 41.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 540.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 540.60 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 540.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 540.60 46.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 540.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 540.60 43.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 540.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.00 540.60 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 506.60 52.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 102.00 506.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 106.00 506.60 35.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 506.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 145.00 506.60 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 506.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 506.60 21.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.00 506.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 506.60 34.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.00 506.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 506.60 30.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 506.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 506.60 50.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 506.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 506.60 41.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 506.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 506.60 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 506.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 506.60 46.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 506.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 506.60 43.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 506.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.00 506.60 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 472.60 52.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 102.00 472.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 106.00 472.60 35.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 472.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 145.00 472.60 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 472.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 472.60 21.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.00 472.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 472.60 34.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.00 472.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 472.60 30.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 472.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 472.60 50.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 472.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 472.60 41.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 472.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 472.60 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 472.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 472.60 46.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 472.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 472.60 43.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 472.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.00 472.60 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 438.60 52.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 102.00 438.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 106.00 438.60 35.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 438.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 145.00 438.60 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 438.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 438.60 21.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.00 438.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 438.60 34.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.00 438.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 438.60 30.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 438.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 438.60 50.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 438.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 438.60 41.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 438.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 438.60 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 438.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 438.60 46.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 438.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 438.60 43.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 438.60 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 524.00 438.60 39.00 -17.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 574.6 m 102 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 106 574.6 m 141 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 574.6 m 184 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 574.6 m 209 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 574.6 m 247 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 574.6 m 281 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 574.6 m 335 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 574.6 m 380 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 574.6 m 423 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 574.6 m 473 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 574.6 m 520 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 524 574.6 m 563 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 438.6 m 281 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 438.6 m 335 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 438.6 m 380 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 438.6 m 423 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 438.6 m 473 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 438.6 m 520 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 438.6 m 281 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 422.6 m 281 422.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 420.6 m 281 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 438.6 m 335 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 422.6 m 335 422.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 420.6 m 335 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 438.6 m 380 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 422.6 m 380 422.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 420.6 m 380 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 438.6 m 423 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 422.6 m 423 422.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 420.6 m 423 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 438.6 m 473 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 422.6 m 473 422.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 420.6 m 473 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 438.6 m 520 438.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 422.6 m 520 422.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 420.6 m 520 420.6 l s BT /F2 6.00 Tf ET q 0 0 0 rg BT 64.05 578.44 Td (Pr) Tj ET Q q 0 0 0 rg BT 70.27 578.44 Td (operty) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 117.00 584.44 Td (Date ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 111.05 578.44 Td (Acquir) Tj ET Q q 0 0 0 rg BT 128.94 578.44 Td (ed) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 158.50 578.44 Td (City) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 191.50 578.44 Td (State) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 218.05 584.44 Td (Pr) Tj ET Q q 0 0 0 rg BT 224.27 584.44 Td (operty ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 223.20 578.44 Td (T) Tj ET Q q 0 0 0 rg BT 226.76 578.44 Td (ype) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 258.65 578.44 Td (Land) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 298.45 590.44 Td (Building ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 304.65 584.44 Td (and ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 287.85 578.44 Td (Impr) Tj ET Q q 0 0 0 rg BT 301.07 578.44 Td (ovements) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 325.07 578.44 Td ( ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 326.57 581.16 Td (\(1\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 331.12 578.44 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 350.10 596.44 Td (T) Tj ET Q q 0 0 0 rg BT 353.55 596.44 Td (enant ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 343.95 590.44 Td (Origination ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 354.15 584.44 Td (and ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 344.45 578.44 Td (Absorption) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 389.85 590.44 Td (T) Tj ET Q q 0 0 0 rg BT 393.30 590.44 Td (otal Real ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 391.00 584.44 Td (Estate, at ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 397.15 578.44 Td (Cost) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 432.50 596.44 Td (Accumulated ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 433.05 590.44 Td (Depr) Tj ET Q q 0 0 0 rg BT 445.94 590.44 Td (eciation ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 444.65 584.44 Td (and ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 432.30 578.44 Td (Amortization) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 484.85 584.44 Td (T) Tj ET Q q 0 0 0 rg BT 488.30 584.44 Td (otal Real ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 484.00 578.44 Td (Estate, Net) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 528.80 584.44 Td (Ownership ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 540.00 578.44 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 567.44 Td (Springmaid Beach ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 61.50 561.44 Td (Resort) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.30 561.44 Td (12/30/2014) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 147.55 561.44 Td (Myrtle Beach) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 194.30 561.44 Td (SC) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 222.80 561.44 Td (Hotel) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 253.50 561.44 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 262.00 561.44 Td (27,438) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 287.50 561.44 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 316.00 561.44 Td (33,154) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 341.50 561.44 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 371.50 561.44 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 386.50 561.44 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 404.00 561.44 Td (60,592) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 429.50 561.44 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 455.00 561.44 Td (\(5,750) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 470.50 561.44 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 479.50 561.44 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 501.00 561.44 Td (54,842) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 535.25 561.44 Td (90.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 544.44 Td (Q&C Hotel) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.30 544.44 Td (12/17/2015) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 148.25 544.44 Td (New Orleans) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 194.15 544.44 Td (LA) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 222.80 544.44 Td (Hotel) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 265.00 544.44 Td (1,232) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 316.00 544.44 Td (53,036) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 371.50 544.44 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 404.00 544.44 Td (54,268) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 455.00 544.44 Td (\(4,955) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 470.50 544.44 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 501.00 544.44 Td (49,313) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 535.25 544.44 Td (90.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 527.44 Td (2200 Paseo ) Tj ET Q q 0 0 0 rg BT 81.39 527.44 Td (V) Tj ET Q q 0 0 0 rg BT 85.06 527.44 Td (erde) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.30 527.44 Td (12/23/2015) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 151.00 527.44 Td (Henderson) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 193.70 527.44 Td (NV) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 221.85 527.44 Td (Of) Tj ET Q q 0 0 0 rg BT 228.07 527.44 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 265.00 527.44 Td (1,850) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 316.00 527.44 Td (1) Tj ET Q q 0 0 0 rg BT 319.00 527.44 Td (1,606) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 368.50 527.44 Td (553) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 404.00 527.44 Td (14,009) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 455.00 527.44 Td (\(1,352) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 470.50 527.44 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 501.00 527.44 Td (12,657) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 533.75 527.44 Td (100.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 510.44 Td (Lincoln Court) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.30 510.44 Td (05/20/2016) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 152.30 510.44 Td (Campbell) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 193.95 510.44 Td (CA) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 221.85 510.44 Td (Of) Tj ET Q q 0 0 0 rg BT 228.07 510.44 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 262.00 510.44 Td (14,706) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 316.00 510.44 Td (34,060) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.00 510.44 Td (3,643) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 404.00 510.44 Td (52,409) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 455.00 510.44 Td (\(4,615) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 470.50 510.44 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 501.00 510.44 Td (47,794) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 533.75 510.44 Td (100.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 499.44 Td (Lofts at NoHo ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 61.50 493.44 Td (Commons) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.40 493.44 Td (1) Tj ET Q q 0 0 0 rg BT 112.18 493.44 Td (1/16/2016) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 157.00 499.44 Td (North ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 150.50 493.44 Td (Hollywood) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 193.95 493.44 Td (CA) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 216.65 493.44 Td (Apartment) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 262.00 493.44 Td (26,222) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 316.00 493.44 Td (76,503) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 371.50 493.44 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 401.00 493.44 Td (102,725) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 455.00 493.44 Td (\(3,076) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 470.50 493.44 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 501.00 493.44 Td (99,649) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 535.25 493.44 Td (90.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 482.44 Td (210 ) Tj ET Q q 0 0 0 rg BT 62.89 482.44 Td (W) Tj ET Q q 0 0 0 rg BT 68.07 482.44 Td (est 31st ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 61.50 476.44 Td (Street ) Tj ET Q BT /F1 6.00 Tf ET BT /F1 3.90 Tf ET q 0 0 0 rg BT 77.00 479.16 Td (\(2\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.30 476.44 Td (12/01/2016) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 151.80 476.44 Td (New ) Tj ET Q q 0 0 0 rg BT 164.41 476.44 Td (Y) Tj ET Q q 0 0 0 rg BT 168.14 476.44 Td (ork) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 193.75 476.44 Td (NY) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 222.30 476.44 Td (Retail) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 272.50 476.44 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 316.00 476.44 Td (67,232) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 371.50 476.44 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 404.00 476.44 Td (67,232) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 464.50 476.44 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 501.00 476.44 Td (67,232) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 535.25 476.44 Td (80.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 465.44 Td (Oakland City ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 61.50 459.44 Td (Center) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.30 459.44 Td (08/18/2017) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 153.80 459.44 Td (Oakland) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 193.95 459.44 Td (CA) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 221.85 459.44 Td (Of) Tj ET Q q 0 0 0 rg BT 228.07 459.44 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 262.00 459.44 Td (22,150) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 313.00 459.44 Td (138,713) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 361.00 459.44 Td (1) Tj ET Q q 0 0 0 rg BT 364.00 459.44 Td (1,514) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 401.00 459.44 Td (172,377) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 455.00 459.44 Td (\(6,847) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 470.50 459.44 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 498.00 459.44 Td (165,530) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 533.75 459.44 Td (100.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 442.44 Td (Madison Square ) Tj ET Q BT /F1 6.00 Tf ET BT /F1 3.90 Tf ET q 0 0 0 rg BT 93.16 445.16 Td (\(3\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.30 442.44 Td (10/03/2017) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 154.15 442.44 Td (Phoenix) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 194.00 442.44 Td (AZ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 221.85 442.44 Td (Of) Tj ET Q q 0 0 0 rg BT 228.07 442.44 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 262.00 442.44 Td (10,540) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 316.00 442.44 Td (19,916) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 364.00 442.44 Td (2,800) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 404.00 442.44 Td (33,256) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 455.00 442.44 Td (\(1,086) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 470.50 442.44 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 501.00 442.44 Td (32,170) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 535.25 442.44 Td (90.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 253.50 425.44 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 259.00 425.44 Td (104,138) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 287.50 425.44 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 313.00 425.44 Td (434,220) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 341.50 425.44 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 361.00 425.44 Td (18,510) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 386.50 425.44 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 401.00 425.44 Td (556,868) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 429.50 425.44 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 452.00 425.44 Td (\(27,681) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 470.50 425.44 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 479.50 425.44 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 498.00 425.44 Td (529,187) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 401.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 397.50 Td ( Building and improvements includes construction in progress.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 388.52 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 384.90 Td ( ) Tj ET Q q 0 0 0 rg BT 57.42 384.90 Td (The Company acquired the rights to a leasehold interest with respect to this property) Tj ET Q q 0 0 0 rg BT 327.27 384.90 Td (. ) Tj ET Q q 0 0 0 rg BT 331.13 384.90 Td (The leasehold interest expires January 31, 21) Tj ET Q q 0 0 0 rg BT 475.00 384.90 Td (14. ) Tj ET Q q 0 0 0 rg BT 486.56 384.90 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 506.12 384.90 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.78 384.90 Td (, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 375.30 Td (the capital lease asset had a carrying value of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 195.88 375.30 Td ($6.8 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 234.99 375.30 Td ( included in construction in progress. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 366.32 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 362.70 Td ( ) Tj ET Q q 0 0 0 rg BT 57.42 362.70 Td (The Company acquired the rights to a leasehold interest with respect to the land at this property) Tj ET Q q 0 0 0 rg BT 362.59 362.70 Td (. ) Tj ET Q q 0 0 0 rg BT 366.45 362.70 Td (This property was formerly known as Grace Court and was ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (re-named Madison Square in connection with the Company’) Tj ET Q q 0 0 0 rg BT 242.57 353.10 Td (s re-branding strategy of this property) Tj ET Q q 0 0 0 rg BT 363.13 353.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (Office Pr) Tj ET Q q 0 0 0 rg BT 88.46 329.10 Td (operties) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 311.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 311.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 311.10 Td (, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.54 311.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.20 311.10 Td ( of) Tj ET Q q 0 0 0 rg BT 269.85 311.10 Td (fice properties encompassing in the aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.33 311.10 Td (864,941) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.83 311.10 Td ( rentable square ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (feet which were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.85 299.10 Td (72%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.18 299.10 Td ( occupied. ) Tj ET Q q 0 0 0 rg BT 177.60 299.10 Td (The following table provides detailed information regarding the Company’) Tj ET Q q 0 0 0 rg BT 476.96 299.10 Td (s of) Tj ET Q q 0 0 0 rg BT 491.50 299.10 Td (fice revenues and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (expenses for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.98 287.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.96 287.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.40 287.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.07 287.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.89 287.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.72 287.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.16 287.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.16 287.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 242.60 237.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 242.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 242.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 242.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 242.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 242.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 242.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 242.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 242.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 214.60 237.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 214.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 214.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 214.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 214.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 214.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 214.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 214.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 214.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 186.60 237.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 186.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 186.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 186.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 186.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 186.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 186.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 186.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 186.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 158.60 237.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 158.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 158.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 158.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 158.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 158.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 158.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 158.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 158.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 130.60 237.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 130.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 130.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 130.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 130.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 130.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 130.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 130.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 130.60 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 256.6 m 356 256.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 256.6 m 360 256.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 256.6 m 425 256.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 256.6 m 494 256.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 256.6 m 498 256.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 256.6 m 563 256.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 256.6 m 356 256.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 242.60000000000002 m 356 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 256.6 m 360 256.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 256.6 m 425 256.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 242.60000000000002 m 425 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 242.60000000000002 m 494 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 242.60000000000002 m 563 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 200.60000000000002 m 356 200.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 187.60000000000002 m 356 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 185.60000000000002 m 356 185.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 200.60000000000002 m 425 200.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 187.60000000000002 m 425 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 185.60000000000002 m 425 185.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 200.60000000000002 m 494 200.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 187.60000000000002 m 494 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 185.60000000000002 m 494 185.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 200.60000000000002 m 563 200.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 187.60000000000002 m 563 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 185.60000000000002 m 563 185.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 130.60000000000002 m 356 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 130.60000000000002 m 425 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 130.60000000000002 m 356 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 117.60000000000002 m 356 117.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 115.60000000000002 m 356 115.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 130.60000000000002 m 425 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 117.60000000000002 m 425 117.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 115.60000000000002 m 425 115.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 130.60000000000002 m 494 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 117.60000000000002 m 494 117.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 115.60000000000002 m 494 115.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 130.60000000000002 m 563 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 117.60000000000002 m 563 117.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 115.60000000000002 m 563 115.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 305.85 260.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 319.11 260.83 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.70 260.83 Td (Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 315.00 246.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.00 246.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 246.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 246.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 232.85 Td (Of) Tj ET Q q 0 0 0 rg BT 60.80 232.85 Td (fice revenues:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 218.85 Td (Rental income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 218.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 218.85 Td (6,585) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.50 218.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 218.85 Td (1,716) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 218.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.80 218.85 Td (13,429) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 218.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 218.85 Td (3,466) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 204.85 Td (T) Tj ET Q q 0 0 0 rg BT 68.83 204.85 Td (enant reimbursements and other income ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 198.79 208.48 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 340.80 204.85 Td (776) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 204.85 Td (66) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 204.85 Td (1,531) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 204.85 Td (140) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 190.85 Td (Of) Tj ET Q q 0 0 0 rg BT 60.80 190.85 Td (fice revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 190.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 190.85 Td (7,361) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.50 190.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 190.85 Td (1,782) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 190.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.80 190.85 Td (14,960) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 190.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 190.85 Td (3,606) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 162.85 Td (Of) Tj ET Q q 0 0 0 rg BT 60.80 162.85 Td (fice expenses:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 148.85 Td (Operating, maintenance, and management) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 148.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 148.85 Td (2,134) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.50 148.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.80 148.85 Td (405) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 148.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 148.85 Td (3,853) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 148.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 148.85 Td (796) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 134.85 Td (Real estate taxes and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 340.80 134.85 Td (905) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.80 134.85 Td (192) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 134.85 Td (1,857) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 134.85 Td (381) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 120.85 Td (Of) Tj ET Q q 0 0 0 rg BT 60.80 120.85 Td (fice expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 120.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 120.85 Td (3,039) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.50 120.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.80 120.85 Td (597) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 120.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 120.85 Td (5,710) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 120.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 120.85 Td (1,177) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 96.13 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 92.50 Td (For the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 81.75 92.50 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 97.74 92.50 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 113.29 92.50 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 122.62 92.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 171.28 92.50 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 215.95 92.50 Td (, included in tenant reimbursements and other income for of) Tj ET Q q 0 0 0 rg BT 407.75 92.50 Td (fice properties is ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.06 92.50 Td ($0.2 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 502.17 92.50 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 517.72 92.50 Td ($0.4 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 556.83 92.50 Td (, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 82.90 Td (respectively) Tj ET Q q 0 0 0 rg BT 87.63 82.90 Td (, of other operating income and tenant reimbursements for substantial services accounted for under ) Tj ET Q q 0 0 0 rg BT 405.52 82.90 Td (ASU No. 2014-09.) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (15) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Operating Leases) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 617.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 131.71 617.25 Td (s of) Tj ET Q q 0 0 0 rg BT 146.25 617.25 Td (fice properties are leased to tenants under operating leases for which the terms and expirations vary) Tj ET Q q 0 0 0 rg BT 542.95 617.25 Td (. ) Tj ET Q q 0 0 0 rg BT 549.90 617.25 Td (As ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 605.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.16 605.25 Td (, the leases had remaining terms, excluding options to extend, of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.88 605.25 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.38 605.25 Td ( years with a weighted-average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.25 Td (remaining term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.20 593.25 Td (3.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.70 593.25 Td ( years. Some of the leases may have provisions to extend the term of the lease, options for early ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.25 Td (termination for all or a part of the leased premises after paying a specified penalty) Tj ET Q q 0 0 0 rg BT 376.50 581.25 Td (, rights of first refusal to purchase the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.25 Td (property at competitive market rates, and other terms and conditions as negotiated. ) Tj ET Q q 0 0 0 rg BT 382.55 569.25 Td (The Company retains substantially all of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.25 Td (risks and benefits of ownership of the real estate assets leased to tenants. Generally) Tj ET Q q 0 0 0 rg BT 380.96 557.25 Td (, upon the execution of a lease, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.25 Td (requires a security deposit from the tenant in the form of a cash deposit and/or a letter of credit. ) Tj ET Q q 0 0 0 rg BT 433.07 545.25 Td (The amount required as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.25 Td (security deposit varies depending upon the terms of the respective lease and the creditworthiness of the tenant, but generally is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.25 Td (not a significant amount. ) Tj ET Q q 0 0 0 rg BT 151.24 521.25 Td (Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.25 Td (amount of its security deposit. Security deposits received in cash related to of) Tj ET Q q 0 0 0 rg BT 361.46 509.25 Td (fice tenant leases are included in other liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.25 Td (in the accompanying consolidated balance sheets and totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.97 497.25 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.86 497.25 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.02 497.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.85 497.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.29 497.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.87 497.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 479.25 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 479.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 479.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 479.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.64 479.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.47 479.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.30 479.25 Td (, the Company recognized deferred rent from tenants of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.21 479.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.10 479.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 467.25 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.33 467.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 167.99 467.25 Td (, net of lease incentive amortization. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.26 467.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.93 467.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.75 467.25 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.58 467.25 Td (, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.25 Td (recognized deferred rent from tenants of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.31 455.25 Td ($1) Tj ET Q q 0 0 0 rg BT 222.94 455.25 Td (1,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.44 455.25 Td (, net of lease incentive amortization. ) Tj ET Q q 0 0 0 rg BT 392.61 455.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.05 455.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.88 455.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.32 455.25 Td (December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 443.25 Td (, the cumulative 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 491.52 443.25 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.41 443.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.25 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 431.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 151.05 431.25 Td (, and is included in rents and other receivables on the accompanying balance sheets. ) Tj ET Q q 0 0 0 rg BT 489.08 431.25 Td (The cumulative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.25 Td (deferred rent balance included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.32 419.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.21 419.25 Td ( of unamortized lease incentives as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.21 419.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.04 419.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.48 419.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.06 419.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 401.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 401.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 401.25 Td (, the future minimum rental income from the Company’) Tj ET Q q 0 0 0 rg BT 375.28 401.25 Td (s of) Tj ET Q q 0 0 0 rg BT 389.82 401.25 Td (fice properties under its non-cancelable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (operating leases was as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 372.75 396.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 372.75 117.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 344.75 396.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 344.75 117.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 316.75 396.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 316.75 117.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 288.75 396.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 288.75 117.00 -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 446 288.75 m 563 288.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 275.75 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 446 273.75 m 563 273.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 363.85 Td (July 1, 2018 through December 31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 448.50 363.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 363.85 Td (10,845) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 349.85 Td (2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 349.85 Td (20,498) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 335.85 Td (2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 335.85 Td (17,789) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 321.85 Td (2021) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 321.85 Td (14,935) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 307.85 Td (2022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 307.85 Td (1) Tj ET Q q 0 0 0 rg BT 541.80 307.85 Td (1,748) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 293.85 Td (Thereafter) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 293.85 Td (27,741) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 448.50 279.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 279.85 Td (103,556) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 251.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 251.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 251.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 213.66 251.25 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 474.93 251.25 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.93 251.25 Td ( tenants over a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.25 Td (diverse range of industries and geographic areas. ) Tj ET Q q 0 0 0 rg BT 246.65 239.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.09 239.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.92 239.25 Td (, the highest tenant industry concentrations \(greater than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.25 Td (10% of annualized base rent\) in the Company’) Tj ET Q q 0 0 0 rg BT 235.28 227.25 Td (s portfolio were as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 189.75 200.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 189.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 189.75 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 189.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 189.75 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 189.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 189.75 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 163.75 200.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 163.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 163.75 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 163.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 163.75 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 163.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 163.75 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 137.75 200.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 137.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 137.75 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 137.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 137.75 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 137.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 137.75 100.00 -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 50 189.75 m 250 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 189.75 m 354 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 189.75 m 458 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 189.75 m 562 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 189.75 m 250 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 189.75 m 354 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 189.75 m 458 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 189.75 m 562 189.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 137.75 m 458 137.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 137.75 m 562 137.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 137.75 m 458 137.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 125.75 m 458 125.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 123.75 m 458 123.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 137.75 m 562 137.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 125.75 m 562 125.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 123.75 m 562 123.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 193.98 Td (Industry) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 270.65 193.98 Td (Number) Tj ET Q q 0 0 0 rg BT 298.95 193.98 Td ( of ) Tj ET Q q 0 0 0 rg BT 309.47 193.98 Td (T) Tj ET Q q 0 0 0 rg BT 314.07 193.98 Td (enants) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.65 201.98 Td (Annualized Base Rent ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 443.21 205.61 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.27 201.98 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.15 193.98 Td (\(in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.35 201.98 Td (Per) Tj ET Q q 0 0 0 rg BT 500.19 201.98 Td (centage of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.70 193.98 Td (Annualized Base Rent) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 181.00 Td (Legal Services) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.50 181.00 Td (1) Tj ET Q q 0 0 0 rg BT 303.50 181.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.50 181.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.80 181.00 Td (3,564) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 181.00 Td (15.3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 181.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 168.00 Td (Public ) Tj ET Q q 0 0 0 rg BT 74.50 168.00 Td (Administration \(Government\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.50 168.00 Td (6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.80 168.00 Td (3,168) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 168.00 Td (13.6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 168.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 155.00 Td (Professional, Scientific and Legal) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.50 155.00 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.80 155.00 Td (2,970) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 155.00 Td (12.7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 155.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 142.00 Td (Finance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.50 142.00 Td (13) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.80 142.00 Td (2,505) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 142.00 Td (10.7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 142.00 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.50 129.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 432.80 129.00 Td (12,207) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 129.00 Td (52.3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 129.00 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 104.27 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 100.65 Td (Annualized base rent represents annualized contractual base rental income as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.30 100.65 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.97 100.65 Td (, adjusted to straight-line any contractual tenant concessions ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 91.05 Td (\(including free rent\), rent increases and rent decreases from the lease’) Tj ET Q q 0 0 0 rg BT 271.84 91.05 Td (s inception through the balance of the lease term.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 67.05 Td (No other tenant industries accounted for more than 10% of annualized base rent. No tenant accounted for more than 10% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 55.05 Td (of annualized base rent. No material tenant credit issues have been identified at this time.) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (16) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Hotel Pr) Tj ET Q q 0 0 0 rg BT 85.69 632.25 Td (operties) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 614.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 614.25 Td (, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.54 614.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.54 614.25 Td ( hotel properties. ) Tj ET Q q 0 0 0 rg BT 329.84 614.25 Td (The following table provides detailed information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (regarding the Company’) Tj ET Q q 0 0 0 rg BT 146.70 602.25 Td (s hotel revenues and expenses for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.04 602.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.02 602.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.46 602.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.13 602.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.95 602.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.78 602.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.22 602.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.22 602.25 Td ( \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (thousands\):) Tj ET Q 1 1 1 rg /GS0 gs 50.00 561.75 229.00 -12.00 re f /GS0 gs 1 1 1 rg /GS0 gs 279.00 561.75 4.00 -12.00 re f /GS0 gs 1 1 1 rg /GS0 gs 283.00 561.75 67.00 -12.00 re f /GS0 gs 1 1 1 rg /GS0 gs 350.00 561.75 4.00 -12.00 re f /GS0 gs 1 1 1 rg /GS0 gs 354.00 561.75 67.00 -12.00 re f /GS0 gs 1 1 1 rg /GS0 gs 421.00 561.75 4.00 -12.00 re f /GS0 gs 1 1 1 rg /GS0 gs 425.00 561.75 67.00 -12.00 re f /GS0 gs 1 1 1 rg /GS0 gs 492.00 561.75 4.00 -12.00 re f /GS0 gs 1 1 1 rg /GS0 gs 496.00 561.75 67.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 549.75 229.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 549.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 549.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 549.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 549.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 549.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 549.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 549.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 549.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 523.75 229.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 523.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 523.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 523.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 523.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 523.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 523.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 523.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 523.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 497.75 229.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 497.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 497.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 497.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 497.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 497.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 497.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 497.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 497.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 471.75 229.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 471.75 4.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 471.75 67.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 471.75 4.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 471.75 67.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 471.75 4.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 471.75 67.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 471.75 4.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 471.75 67.00 -7.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 451.75 229.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 451.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 451.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 451.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 451.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 451.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 451.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 451.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 451.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 425.75 229.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 425.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 425.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 425.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 425.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 425.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 425.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 425.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 425.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 399.75 229.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 399.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 399.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 399.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 399.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 399.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 399.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 399.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 399.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 373.75 229.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 373.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 373.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 373.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 373.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 373.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 373.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 373.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 373.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 347.75 229.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 347.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 347.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 347.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 347.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.00 347.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 347.75 67.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 347.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 347.75 67.00 -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 283 561.75 m 350 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 561.75 m 492 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 561.75 m 350 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 549.75 m 350 549.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 561.75 m 354 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 561.75 m 421 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 549.75 m 421 549.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 561.75 m 492 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 549.75 m 492 549.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 561.75 m 496 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 561.75 m 563 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 549.75 m 563 549.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 484.75 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 283 472.75 m 350 472.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 470.75 m 350 470.75 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 421 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 472.75 m 421 472.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 470.75 m 421 470.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 484.75 m 492 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 472.75 m 492 472.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 470.75 m 492 470.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 484.75 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 496 472.75 m 563 472.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 470.75 m 563 470.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 347.75 m 350 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 335.75 m 350 335.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 333.75 m 350 333.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 347.75 m 421 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 335.75 m 421 335.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 333.75 m 421 333.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 347.75 m 492 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 335.75 m 492 335.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 333.75 m 492 333.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 347.75 m 563 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 335.75 m 563 335.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 333.75 m 563 333.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 299.85 565.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 313.11 565.83 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.70 565.83 Td (Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.00 553.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.00 553.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.00 553.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.00 553.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 541.00 Td (Hotel revenues:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 528.00 Td (Room) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.50 528.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.80 528.00 Td (8,002) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 528.00 Td (4,736) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.50 528.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.80 528.00 Td (12,1) Tj ET Q q 0 0 0 rg BT 480.80 528.00 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 528.00 Td (8,330) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 515.00 Td (Food, beverage and convention services) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.80 515.00 Td (1,503) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 515.00 Td (1,002) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 515.00 Td (2,318) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 515.00 Td (1,754) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 502.00 Td (Campground) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 502.00 Td (292) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 502.00 Td (278) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 502.00 Td (582) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 502.00 Td (550) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 489.00 Td (Other) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 489.00 Td (466) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 489.00 Td (454) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 489.00 Td (761) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 489.00 Td (679) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 476.00 Td (Hotel revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.50 476.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 324.80 476.00 Td (10,263) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.50 476.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 476.00 Td (6,470) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.50 476.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.80 476.00 Td (15,773) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 476.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 476.00 Td (1) Tj ET Q q 0 0 0 rg BT 541.80 476.00 Td (1,313) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 456.00 Td (Hotel expenses:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 443.00 Td (Room) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.50 443.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.80 443.00 Td (1,765) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 443.00 Td (1,182) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.50 443.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 443.00 Td (3,015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 443.00 Td (2,213) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 430.00 Td (Food, beverage and convention services) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.80 430.00 Td (1,197) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 430.00 Td (836) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 430.00 Td (1,921) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 430.00 Td (1,513) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 417.00 Td (General and administrative) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 417.00 Td (809) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 417.00 Td (581) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 417.00 Td (1,445) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 417.00 Td (1,147) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 404.00 Td (Sales and marketing) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 404.00 Td (797) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 404.00 Td (764) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 404.00 Td (1,449) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 404.00 Td (1,368) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 391.00 Td (Repairs and maintenance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 391.00 Td (509) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 391.00 Td (454) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 391.00 Td (995) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 391.00 Td (896) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 378.00 Td (Utilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 378.00 Td (276) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 378.00 Td (232) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 378.00 Td (552) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 378.00 Td (452) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 365.00 Td (Property taxes and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 365.00 Td (421) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 365.00 Td (400) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 365.00 Td (864) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 365.00 Td (783) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 352.00 Td (Other) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 352.00 Td (491) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 352.00 Td (339) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 352.00 Td (814) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 352.00 Td (660) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 339.00 Td (Hotel expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.50 339.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.80 339.00 Td (6,265) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.50 339.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 339.00 Td (4,788) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.50 339.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.80 339.00 Td (1) Tj ET Q q 0 0 0 rg BT 470.80 339.00 Td (1,055) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 339.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 339.00 Td (9,032) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 311.25 Td (Contract liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 296.25 Td (The Company records contract liabilities in the form of advanced deposits when a customer or group of customers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (provides a deposit for a future stay or a deposit for a future banquet event at the Company’) Tj ET Q q 0 0 0 rg BT 411.89 284.25 Td (s hotels. ) Tj ET Q q 0 0 0 rg BT 446.61 284.25 Td (Advanced deposits are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.25 Td (recognized as revenue at the time of the guest’) Tj ET Q q 0 0 0 rg BT 234.98 272.25 Td (s stay or completion of the banquet services. ) Tj ET Q q 0 0 0 rg BT 415.03 272.25 Td (The following table summarizes the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.25 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 260.25 Td (s contract liabilities, which are included in other liabilities in the accompanying consolidated balance sheets, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 248.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.77 248.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.35 248.25 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 218.75 327.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 218.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 218.75 89.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 218.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 218.75 89.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 192.75 327.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 192.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 192.75 89.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 192.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 192.75 89.00 -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 381 218.75 m 470 218.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 218.75 m 563 218.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 218.75 m 470 218.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 218.75 m 563 218.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.75 222.98 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 485.75 222.98 Td (December) Tj ET Q q 0 0 0 rg BT 520.25 222.98 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 210.00 Td (Contract liability) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.50 210.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 210.00 Td (992) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.50 210.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 210.00 Td (358) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 197.00 Td (Revenue recognized in the period from:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 184.00 Td (Amounts included in contract liability at the beginning of the period) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.50 184.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 184.00 Td (231) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 553.40 188.11 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 159.27 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 155.65 Td ( ) Tj ET Q q 0 0 0 rg BT 58.72 155.65 Td (The amount of revenue recognized in the period from amounts included in contract liability at the beginning of the period is not relevant for the year ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 146.05 Td (December 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 112.37 146.05 Td (, as the Company adopted ) Tj ET Q q 0 0 0 rg BT 196.80 146.05 Td (ASU No. 2014-09 ef) Tj ET Q q 0 0 0 rg BT 263.31 146.05 Td (fective January 1, 2018.) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (17) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Apartment Pr) Tj ET Q q 0 0 0 rg BT 109.58 632.25 Td (operty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 614.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 614.25 Td (, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.54 614.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.98 614.25 Td ( apartment property with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.61 614.25 Td (292) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.61 614.25 Td ( units which was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.05 614.25 Td (94%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.38 614.25 Td ( occupied. ) Tj ET Q q 0 0 0 rg BT 504.79 614.25 Td (The following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (table provides detailed information regarding the Company’) Tj ET Q q 0 0 0 rg BT 289.43 602.25 Td (s apartment revenues and expenses for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.75 602.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.74 602.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.18 602.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.85 602.25 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 590.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 590.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.15 590.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.15 590.25 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 560.75 217.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 560.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 560.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 560.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 560.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 560.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 560.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 560.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 560.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 534.75 217.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 534.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 534.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 534.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 534.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 534.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 534.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 534.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 534.75 70.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 510.75 217.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 510.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 510.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 510.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 510.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 510.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 510.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 510.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 510.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 484.75 217.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 484.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 484.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 484.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 484.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 484.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 484.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 484.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 484.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 458.75 217.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 458.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 458.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.00 458.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.00 458.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 458.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 458.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 458.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 458.75 70.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341 560.75 m 345 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 560.75 m 415 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 560.75 m 493 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 560.75 m 563 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 560.75 m 341 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 547.75 m 341 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 560.75 m 415 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 547.75 m 415 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 560.75 m 489 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 547.75 m 489 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 560.75 m 563 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 547.75 m 563 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 510.75 m 341 510.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 510.75 m 415 510.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 510.75 m 341 510.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 498.75 m 341 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 496.75 m 341 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 510.75 m 415 510.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 498.75 m 415 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 496.75 m 415 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 510.75 m 489 510.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 498.75 m 489 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 496.75 m 489 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 510.75 m 563 510.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 498.75 m 563 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 496.75 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 271 445.75 m 341 445.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 445.75 m 415 445.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 445.75 m 341 445.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 433.75 m 341 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 431.75 m 341 431.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 445.75 m 415 445.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 433.75 m 415 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 431.75 m 415 431.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 445.75 m 489 445.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 433.75 m 489 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 431.75 m 489 431.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 445.75 m 563 445.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 433.75 m 563 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 431.75 m 563 431.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.85 564.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 304.11 564.98 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.70 564.98 Td (Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.50 551.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.50 551.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.50 551.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.50 551.98 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 539.00 Td (Apartment revenues:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 526.70 Td (Rental income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 526.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.80 526.70 Td (1,645) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 526.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 526.70 Td (1,603) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 526.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 526.70 Td (3,229) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 526.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 526.70 Td (3,218) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 514.70 Td (T) Tj ET Q q 0 0 0 rg BT 68.83 514.70 Td (enant reimbursements and other income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 514.70 Td (158) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 514.70 Td (96) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.80 514.70 Td (290) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 514.70 Td (220) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 502.00 Td (Apartment revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 502.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.80 502.00 Td (1,803) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 502.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 502.00 Td (1,699) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 502.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 502.00 Td (3,519) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 502.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 502.00 Td (3,438) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 476.00 Td (Apartment expenses:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 463.00 Td (Operating, maintenance, and management) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 463.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 463.00 Td (636) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 463.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 463.00 Td (534) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 463.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 463.00 Td (1,205) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 463.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 463.00 Td (1,021) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 450.00 Td (Real estate taxes and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 450.00 Td (329) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 450.00 Td (328) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.80 450.00 Td (677) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 450.00 Td (677) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 437.00 Td (Apartment expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 437.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 437.00 Td (965) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 437.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 437.00 Td (862) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 437.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 437.00 Td (1,882) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 437.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 437.00 Td (1,698) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 409.25 Td (Geographic Concentration Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 391.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 391.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 391.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 213.66 391.25 Td (s real estate investments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.35 391.25 Td (California) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.89 391.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.33 391.25 Td (New ) Tj ET Q q 0 0 0 rg BT 404.34 391.25 Td (Y) Tj ET Q q 0 0 0 rg BT 410.56 391.25 Td (ork) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.89 391.25 Td ( represented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.97 391.25 Td (53.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.80 391.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.24 391.25 Td (1) Tj ET Q q 0 0 0 rg BT 524.87 391.25 Td (1.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.70 391.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 379.25 Td (, of the Company’) Tj ET Q q 0 0 0 rg BT 169.37 379.25 Td (s total assets. ) Tj ET Q q 0 0 0 rg BT 223.82 379.25 Td (As a result, the geographic concentration of the Company’) Tj ET Q q 0 0 0 rg BT 457.36 379.25 Td (s portfolio makes it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.25 Td (particularly susceptible to adverse economic developments in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.75 367.25 Td (California) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.29 367.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.73 367.25 Td (New ) Tj ET Q q 0 0 0 rg BT 393.74 367.25 Td (Y) Tj ET Q q 0 0 0 rg BT 399.96 367.25 Td (ork) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.29 367.25 Td ( real estate markets. ) Tj ET Q q 0 0 0 rg BT 494.64 367.25 Td (Any adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.25 Td (economic or real estate developments in these markets, such as business layof) Tj ET Q q 0 0 0 rg BT 360.89 355.25 Td (fs or downsizing, industry slowdowns, relocations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.25 Td (of businesses, changing demographics and other factors, or any decrease in demand for of) Tj ET Q q 0 0 0 rg BT 408.92 343.25 Td (fice space resulting from the local ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 331.25 Td (business climate, could adversely af) Tj ET Q q 0 0 0 rg BT 193.44 331.25 Td (fect the Company’) Tj ET Q q 0 0 0 rg BT 267.31 331.25 Td (s operating results and its ability to make distributions to stockholders.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 307.25 Td (4. ) Tj ET Q q 0 0 0 rg BT 72.00 307.25 Td (TENANT) Tj ET Q q 0 0 0 rg BT 113.49 307.25 Td ( ORIGINA) Tj ET Q q 0 0 0 rg BT 160.26 307.25 Td (TION ) Tj ET Q q 0 0 0 rg BT 187.77 307.25 Td (AND ) Tj ET Q q 0 0 0 rg BT 211.38 307.25 Td (ABSORPTION COSTS, ) Tj ET Q q 0 0 0 rg BT 317.24 307.25 Td (ABOVE-MARKET) Tj ET Q q 0 0 0 rg BT 400.96 307.25 Td ( LEASE ) Tj ET Q q 0 0 0 rg BT 438.20 307.25 Td (ASSETS ) Tj ET Q q 0 0 0 rg BT 477.39 307.25 Td (AND ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 295.25 Td (BELOW) Tj ET Q q 0 0 0 rg BT 109.42 295.25 Td (-MARKET) Tj ET Q q 0 0 0 rg BT 157.57 295.25 Td ( LEASE LIABILITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 277.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 277.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 277.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.71 277.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.30 277.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 311.68 277.25 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 49.50 265.25 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 49.50 253.25 Td (follows \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 213.75 93.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 143.00 213.75 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 214.00 213.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.00 213.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 213.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.00 213.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 213.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 213.75 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 213.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 213.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 213.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 213.75 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 187.75 93.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 143.00 187.75 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 214.00 187.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.00 187.75 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 187.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.00 187.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 187.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 187.75 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 187.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 187.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 187.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 187.75 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 143 226.75 m 214 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214 226.75 m 218 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218 226.75 m 291 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 226.75 m 354 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 226.75 m 358 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 226.75 m 429 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 226.75 m 492 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 226.75 m 496 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 226.75 m 567 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 226.75 m 214 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 213.75 m 214 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214 226.75 m 218 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218 226.75 m 291 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218 213.75 m 291 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 226.75 m 354 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 213.75 m 354 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 226.75 m 358 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 226.75 m 429 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 213.75 m 429 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 226.75 m 492 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 213.75 m 492 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 226.75 m 496 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 226.75 m 567 226.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 213.75 m 567 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 213.75 m 214 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218 213.75 m 291 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 213.75 m 354 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 213.75 m 429 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 213.75 m 492 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 213.75 m 567 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 187.75 m 214 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218 187.75 m 291 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 187.75 m 354 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 187.75 m 429 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 187.75 m 492 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 187.75 m 567 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 187.75 m 214 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 175.75 m 214 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 173.75 m 214 173.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218 187.75 m 291 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218 175.75 m 291 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218 173.75 m 291 173.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 187.75 m 354 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 175.75 m 354 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 173.75 m 354 173.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 187.75 m 429 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 175.75 m 429 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 173.75 m 429 173.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 175.75 m 492 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 173.75 m 492 173.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 187.75 m 567 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 175.75 m 567 175.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 173.75 m 567 173.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 231.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 145.70 230.98 Td (T) Tj ET Q q 0 0 0 rg BT 150.30 230.98 Td (enant Origination and ) Tj ET Q q 0 0 0 rg BT 227.88 230.98 Td (Absorption Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 314.15 230.98 Td (Above-Market Lease ) Tj ET Q q 0 0 0 rg BT 387.47 230.98 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.95 230.98 Td (Below-Market Lease Liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 218.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 154.75 217.98 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 221.75 217.98 Td (December) Tj ET Q q 0 0 0 rg BT 256.32 217.98 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 300.75 217.98 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.75 217.98 Td (December) Tj ET Q q 0 0 0 rg BT 395.32 217.98 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.75 217.98 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.75 217.98 Td (December) Tj ET Q q 0 0 0 rg BT 533.25 217.98 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 205.00 Td (Cost) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 145.50 205.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 188.80 205.00 Td (18,510) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 220.50 205.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 265.80 205.00 Td (19,006) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 297.50 205.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.80 205.00 Td (99) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.50 205.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.80 205.00 Td (99) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.50 205.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.10 205.00 Td (\(12,527) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.80 205.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 205.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 205.05 Td (\(12,869) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 563.80 205.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 192.00 Td (Accumulated ) Tj ET Q q 0 0 0 rg BT 96.71 192.00 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 190.10 192.00 Td (\(5,355) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 210.80 192.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 267.10 192.00 Td (\(3,473) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 287.80 192.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 340.10 192.00 Td (\(25) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 350.80 192.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.10 192.00 Td (\(16) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.80 192.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 192.00 Td (3,576) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.80 192.00 Td (2,086) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 179.00 Td (Net ) Tj ET Q q 0 0 0 rg BT 65.61 179.00 Td (Amount) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 145.50 179.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 188.80 179.00 Td (13,155) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 220.50 179.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 265.80 179.00 Td (15,533) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 297.50 179.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.80 179.00 Td (74) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.50 179.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.80 179.00 Td (83) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.50 179.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.10 179.00 Td (\(8,951) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.80 179.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 179.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 179.05 Td (\(10,783) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 563.80 179.00 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 39 0 obj <>] /Rotate 0 /Contents 40 0 R>> endobj 40 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (Increases \(decreases\) in net income as a result of amortization of the Company’) Tj ET Q q 0 0 0 rg BT 391.16 632.10 Td (s tenant origination and absorption costs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 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 321.34 620.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.32 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.76 620.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.43 620.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.25 620.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.08 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.52 620.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.52 620.10 Td ( were as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 555.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 110.00 555.60 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 182.00 555.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 186.00 555.60 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 555.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 262.00 555.60 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 555.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 555.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 555.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 555.60 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 555.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 555.60 72.00 -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 110 581.6 m 182 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182 581.6 m 186 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186 581.6 m 258 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 581.6 m 334 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 581.6 m 338 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 581.6 m 409 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 581.6 m 485 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 581.6 m 489 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 581.6 m 561 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 110 581.6 m 182 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 110 568.6 m 182 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182 581.6 m 186 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182 568.6 m 186 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186 581.6 m 258 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186 568.6 m 258 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 581.6 m 334 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 568.6 m 334 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 581.6 m 338 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 568.6 m 338 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 581.6 m 409 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 568.6 m 409 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 581.6 m 485 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 568.6 m 485 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 581.6 m 489 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 568.6 m 489 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 581.6 m 561 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 568.6 m 561 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 110 568.6 m 182 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 110 555.6 m 182 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186 568.6 m 258 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186 555.6 m 258 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 568.6 m 334 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 555.6 m 334 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 568.6 m 338 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 568.6 m 409 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 555.6 m 409 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 568.6 m 485 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 555.6 m 485 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 568.6 m 489 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 568.6 m 561 568.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 555.6 m 561 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 110 555.6 m 182 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 110 543.6 m 182 543.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 110 541.6 m 182 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186 555.6 m 258 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186 543.6 m 258 543.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186 541.6 m 258 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 555.6 m 334 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 543.6 m 334 543.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 541.6 m 334 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 555.6 m 409 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 543.6 m 409 543.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 541.6 m 409 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 555.6 m 485 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 543.6 m 485 543.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 541.6 m 485 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 555.6 m 561 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 543.6 m 561 543.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 541.6 m 561 541.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 112.70 585.83 Td (T) Tj ET Q q 0 0 0 rg BT 117.67 585.83 Td (enant Origination and ) Tj ET Q q 0 0 0 rg BT 195.10 585.83 Td (Absorption Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 287.65 585.83 Td (Above-Market Lease ) Tj ET Q q 0 0 0 rg BT 361.19 585.83 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.95 585.83 Td (Below-Market Lease Liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 118.45 572.83 Td (For) Tj ET Q q 0 0 0 rg BT 130.82 572.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 145.33 572.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 158.53 572.83 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 269.95 572.83 Td (For) Tj ET Q q 0 0 0 rg BT 282.32 572.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 296.83 572.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 310.03 572.83 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.45 572.83 Td (For) Tj ET Q q 0 0 0 rg BT 433.82 572.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 448.33 572.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 461.53 572.83 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 137.50 559.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 213.50 559.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.50 559.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.00 559.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.50 559.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.50 559.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 546.85 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 112.50 546.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 158.10 546.85 Td (\(1,164) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 178.80 546.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 188.50 546.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 240.10 546.85 Td (\(716) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 254.80 546.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 264.50 546.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 324.10 546.85 Td (\(5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 330.80 546.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 340.50 546.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.10 546.85 Td (\(1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 546.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.50 546.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 546.85 Td (885) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.50 546.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.80 546.85 Td (158) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 481.60 61.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 111.00 481.60 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 183.00 481.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 187.00 481.60 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 481.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.00 481.60 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 481.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 481.60 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 481.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 481.60 72.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 481.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 481.60 72.00 -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 111 507.6 m 183 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 507.6 m 187 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187 507.6 m 259 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 507.6 m 335 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 507.6 m 339 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 507.6 m 411 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 507.6 m 487 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 507.6 m 491 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 507.6 m 563 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 111 494.6 m 183 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 494.6 m 187 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187 494.6 m 259 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 507.6 m 335 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 494.6 m 335 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 507.6 m 339 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 494.6 m 339 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 507.6 m 411 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 494.6 m 411 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 507.6 m 487 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 494.6 m 487 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 507.6 m 491 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 494.6 m 491 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 507.6 m 563 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 494.6 m 563 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 111 494.6 m 183 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 111 481.6 m 183 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187 494.6 m 259 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187 481.6 m 259 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 494.6 m 335 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 481.6 m 335 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 494.6 m 339 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 494.6 m 411 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 481.6 m 411 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 494.6 m 487 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 481.6 m 487 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 494.6 m 491 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 494.6 m 563 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 481.6 m 563 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 111 469.6 m 183 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 111 467.6 m 183 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187 469.6 m 259 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 187 467.6 m 259 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 469.6 m 335 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 467.6 m 335 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 469.6 m 411 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 467.6 m 411 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 469.6 m 487 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 467.6 m 487 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 469.6 m 563 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 467.6 m 563 467.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 113.70 511.83 Td (T) Tj ET Q q 0 0 0 rg BT 118.67 511.83 Td (enant Origination and ) Tj ET Q q 0 0 0 rg BT 196.10 511.83 Td (Absorption Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.15 511.83 Td (Above-Market Lease ) Tj ET Q q 0 0 0 rg BT 362.69 511.83 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.95 511.83 Td (Below-Market Lease Liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 124.20 498.83 Td (For) Tj ET Q q 0 0 0 rg BT 136.57 498.83 Td ( the Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 276.20 498.83 Td (For) Tj ET Q q 0 0 0 rg BT 288.57 498.83 Td ( the Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.20 498.83 Td (For) Tj ET Q q 0 0 0 rg BT 440.57 498.83 Td ( the Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 138.50 485.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 214.50 485.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.50 485.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.50 485.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.50 485.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.50 485.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 472.85 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 113.50 472.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 159.10 472.85 Td (\(2,378) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 179.80 472.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 189.50 472.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 235.10 472.85 Td (\(1,713) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.80 472.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 265.50 472.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.10 472.85 Td (\(9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.80 472.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.50 472.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.10 472.85 Td (\(3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 472.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.50 472.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 472.85 Td (1,832) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.50 472.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 472.85 Td (332) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 445.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 445.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 445.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.21 445.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.80 445.10 Td (, the Company had recorded a housing subsidy intangible asset, net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.10 Td (amortization, which is 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 484.36 433.10 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.25 433.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.10 Td (which is amortized on a straight line basis over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.29 421.10 Td (31.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.79 421.10 Td ( years. During each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.58 421.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.56 421.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.39 421.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.22 421.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.66 421.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.66 421.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.10 Td (Company recorded amortization expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.94 409.10 Td ($20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.44 409.10 Td ( related to the housing subsidy intangible asset. During each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.99 409.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.66 409.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 397.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 397.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.09 397.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.09 397.10 Td (, the Company recorded amortization expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.25 397.10 Td ($40,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.75 397.10 Td ( related to the housing subsidy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.10 Td (intangible asset.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 367.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 123.40 367.10 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.06 367.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.89 367.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.33 367.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.92 367.10 Td (, the Company had recorded property tax abatement intangible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.10 Td (assets, net 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 543.78 355.10 Td ($2.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 343.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 343.10 Td ($2.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.72 343.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 199.38 343.10 Td (, which are amortized on a straight line basis over a range of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.18 343.10 Td (0.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.68 343.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.46 343.10 Td (6.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.96 343.10 Td ( years. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 331.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 331.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.92 331.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.59 331.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.42 331.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.25 331.10 Td (, the Company recorded amortization expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.40 331.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.29 331.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.73 331.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.62 331.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 319.10 Td (, related to the property tax abatement intangible assets. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 295.10 Td (5. ) Tj ET Q q 0 0 0 rg BT 72.00 295.10 Td (REAL) Tj ET Q q 0 0 0 rg BT 99.23 295.10 Td ( EST) Tj ET Q q 0 0 0 rg BT 119.89 295.10 Td (A) Tj ET Q q 0 0 0 rg BT 126.37 295.10 Td (TE LOAN RECEIV) Tj ET Q q 0 0 0 rg BT 211.21 295.10 Td (ABLE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 277.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 277.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.03 277.10 Td (, the Company had originated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.11 277.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.55 277.10 Td ( real estate loan receivable. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.32 277.10 Td (January 12, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.92 277.10 Td (, the real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.10 Td (estate loan receivable was repaid in full. Information for the real estate loan receivable was as follows \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 225.60 93.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 143.00 225.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 147.00 225.60 34.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 225.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 185.00 225.60 31.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 216.00 225.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 225.60 30.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 225.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 225.60 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 225.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 225.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 225.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 225.60 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 225.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 225.60 38.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 225.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 225.60 41.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 529.00 225.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 533.00 225.60 30.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 225.60000000000002 m 143 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 147 225.60000000000002 m 181 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 185 225.60000000000002 m 216 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220 225.60000000000002 m 250 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 225.60000000000002 m 318 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 225.60000000000002 m 377 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 225.60000000000002 m 442 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 225.60000000000002 m 484 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 225.60000000000002 m 529 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 533 225.60000000000002 m 563 225.60000000000002 l s BT /F2 6.00 Tf ET q 0 0 0 rg BT 52.50 241.44 Td (Loan Name ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 61.50 235.44 Td (Location of Related Pr) Tj ET Q q 0 0 0 rg BT 119.55 235.44 Td (operty ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 61.50 229.44 Td (or) Tj ET Q q 0 0 0 rg BT 67.05 229.44 Td ( Collateral) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 157.50 235.44 Td (Date) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 149.50 229.44 Td (Originated) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 188.55 235.44 Td (Pr) Tj ET Q q 0 0 0 rg BT 194.82 235.44 Td (operty) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 193.70 229.44 Td (T) Tj ET Q q 0 0 0 rg BT 197.48 229.44 Td (ype) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 227.80 235.44 Td (Loan) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 228.20 229.44 Td (T) Tj ET Q q 0 0 0 rg BT 231.98 229.44 Td (ype) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 256.90 241.44 Td (Outstanding Principal ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 268.65 235.44 Td (Balance as of) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 268.05 229.44 Td (June 30, 2018) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 327.70 235.44 Td (Book ) Tj ET Q q 0 0 0 rg BT 342.43 235.44 Td (V) Tj ET Q q 0 0 0 rg BT 346.21 235.44 Td (alue as of ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 328.55 229.44 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 364.89 232.16 Td (\(1\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 389.70 235.44 Td (Book ) Tj ET Q q 0 0 0 rg BT 404.43 235.44 Td (V) Tj ET Q q 0 0 0 rg BT 408.21 235.44 Td (alue as of ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 383.75 229.44 Td (December) Tj ET Q q 0 0 0 rg BT 409.63 229.44 Td ( 31, 2017 ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 433.63 232.16 Td (\(1\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 449.00 241.44 Td (Contractual) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 454.55 235.44 Td (Inter) Tj ET Q q 0 0 0 rg BT 467.49 235.44 Td (est) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 458.50 229.44 Td (Rate) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 493.30 241.44 Td (Annualized) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 496.65 235.44 Td (Effective) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 491.30 229.44 Td (Inter) Tj ET Q q 0 0 0 rg BT 504.24 229.44 Td (est Rate) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 535.80 235.44 Td (Maturity) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 541.50 229.44 Td (Date) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 215.44 Td (655 Summer Street First Mortgage) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 58.50 201.44 Td (Boston, Massachusetts) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 150.15 201.44 Td (09/04/2014) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 192.35 201.44 Td (Of) Tj ET Q q 0 0 0 rg BT 198.57 201.44 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 222.80 201.44 Td (Mortgage) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 256.50 201.44 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 309.50 201.44 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 324.50 201.44 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 368.50 201.44 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 383.50 201.44 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 426.00 201.44 Td (3,500) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 456.75 201.44 Td (9.25%) Tj ET Q BT /F1 3.90 Tf ET q 0 0 0 rg BT 505.70 204.48 Td (\(2\)) Tj ET Q BT /F1 3.90 Tf ET q 0 0 0 rg BT 545.20 204.48 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 177.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 173.50 Td ( Book value of the real estate loan receivable represents outstanding principal balance adjusted for unamortized origination fees and direct origination and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 163.90 Td (acquisition costs. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 154.92 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 151.30 Td (On ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 68.64 151.30 Td (January 12, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 123.52 151.30 Td (, the real estate loan receivable was repaid in full.) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (The following summarizes the activity related to the real estate loan receivable for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.52 632.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.19 632.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.02 632.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.85 632.10 Td ( \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 603.60 438.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 603.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 603.60 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 575.60 438.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 575.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 575.60 71.00 -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 492 575.6 m 563 575.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 562.6 m 563 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 560.6 m 563 560.6 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 594.06 Td (Real estate loan receivable -) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 153.94 594.06 Td ( December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.50 594.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 594.06 Td (3,500) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 580.06 Td (Principal repayment) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 536.25 580.06 Td (\(3,500) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 580.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 566.06 Td (Real estate loan receivable -) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 153.94 566.06 Td ( June 30, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.50 566.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 566.06 Td (—) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 538.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.11 538.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.09 538.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.53 538.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.20 538.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.03 538.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.86 538.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.30 538.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.30 538.10 Td (, interest income from the real estate loan receivable consisted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 487.60 209.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 487.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.00 487.60 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 487.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 487.60 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 487.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 487.60 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 487.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 487.60 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 457.60 209.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 457.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.00 457.60 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 457.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 457.60 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 457.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 457.60 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 457.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 457.60 72.00 -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 263 502.6 m 335 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 502.6 m 339 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 502.6 m 411 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 502.6 m 487 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 502.6 m 491 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 502.6 m 563 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 487.6 m 335 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 487.6 m 411 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 487.6 m 487 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 487.6 m 563 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 487.6 m 335 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 487.6 m 411 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 487.6 m 487 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 487.6 m 563 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 457.6 m 335 457.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 457.6 m 411 457.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 457.6 m 487 457.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 457.6 m 563 457.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 443.6 m 335 443.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 441.6 m 335 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 443.6 m 411 443.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 441.6 m 411 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 443.6 m 487 443.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 441.6 m 487 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 443.6 m 563 443.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 441.6 m 563 441.6 l s BT /F2 8.50 Tf ET q 0 0 0 rg BT 267.40 506.94 Td (For) Tj ET Q q 0 0 0 rg BT 280.54 506.94 Td ( the ) Tj ET Q q 0 0 0 rg BT 295.97 506.94 Td (Thr) Tj ET Q q 0 0 0 rg BT 309.98 506.94 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 424.45 506.94 Td (For) Tj ET Q q 0 0 0 rg BT 437.59 506.94 Td ( the Six Months Ended June 30,) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 290.00 491.94 Td (2018) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 366.00 491.94 Td (2017) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 442.00 491.94 Td (2018) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 518.00 491.94 Td (2017) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 476.96 Td (Contractual interest income) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.50 476.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 323.15 476.96 Td (—) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 341.50 476.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 399.15 476.96 Td (82) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 417.50 476.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 475.15 476.96 Td (10) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 493.50 476.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 546.90 476.96 Td (162) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 461.96 Td (Amortization of closing costs and origination fees, net) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 323.15 461.96 Td (—) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 399.15 461.96 Td (19) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 475.15 461.96 Td (—) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 551.15 461.96 Td (38) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 446.96 Td (Interest income from real estate loan receivable) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.50 446.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 323.15 446.96 Td (—) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 341.50 446.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 394.90 446.96 Td (101) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 417.50 446.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 475.15 446.96 Td (10) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 493.50 446.96 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 546.90 446.96 Td (200) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (6. ) Tj ET Q q 0 0 0 rg BT 72.00 419.10 Td (REAL) Tj ET Q q 0 0 0 rg BT 99.23 419.10 Td ( EST) Tj ET Q q 0 0 0 rg BT 119.89 419.10 Td (A) Tj ET Q q 0 0 0 rg BT 126.37 419.10 Td (TE EQUITY) Tj ET Q q 0 0 0 rg BT 181.29 419.10 Td ( SECURITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 401.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 401.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.22 401.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.04 401.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.87 401.10 Td (, the Company purchased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.01 401.10 Td (852,797) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.51 401.10 Td ( shares of common stock of Franklin Street ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.10 Td (Properties Corp. \(NYSE ) Tj ET Q q 0 0 0 rg BT 149.31 389.10 Td (T) Tj ET Q q 0 0 0 rg BT 155.07 389.10 Td (icker: FSP\) for an aggregate purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.66 389.10 Td ($7.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.55 389.10 Td (. ) Tj ET Q q 0 0 0 rg BT 395.37 389.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 455.08 389.10 Td (s real estate equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.10 Td (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 430.63 377.10 Td (. ) Tj ET Q q 0 0 0 rg BT 435.45 377.10 Td (T) Tj ET Q q 0 0 0 rg BT 441.20 377.10 Td (ransaction costs that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td (directly attributable to the acquisition of real estate equity securities are capitalized to its cost basis. Unrealized gains and losses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (on real estate equity securities are recognized in earnings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 335.10 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 408.27 335.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.94 335.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.76 335.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.59 335.10 Td ( \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 293.60 245.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.00 293.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 293.60 84.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 293.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 293.60 86.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 293.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 293.60 83.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 267.60 245.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.00 267.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 267.60 84.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 267.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 267.60 86.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 267.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 267.60 83.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 241.60 245.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.00 241.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 241.60 84.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 241.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 241.60 86.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 241.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 241.60 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 299 293.6 m 383 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387 293.6 m 473 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 293.6 m 560 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387 241.60000000000002 m 473 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 241.60000000000002 m 383 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 229.60000000000002 m 383 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 227.60000000000002 m 383 227.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387 241.60000000000002 m 473 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387 229.60000000000002 m 473 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387 227.60000000000002 m 473 227.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 241.60000000000002 m 560 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 229.60000000000002 m 560 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 227.60000000000002 m 560 227.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 303.60 297.83 Td (Amortized Cost Basis) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.45 297.83 Td (Unr) Tj ET Q q 0 0 0 rg BT 415.08 297.83 Td (ealized Gain) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.25 297.83 Td (T) Tj ET Q q 0 0 0 rg BT 513.85 297.83 Td (otal) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 284.85 Td (Real estate equity securities - ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 148.24 284.85 Td (December 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.50 284.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.80 284.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.50 284.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 461.80 284.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.50 284.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.80 284.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 271.85 Td (Acquisition of real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.80 271.85 Td (6,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 461.80 271.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.80 271.85 Td (6,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 258.85 Td (Acquisition fee to af) Tj ET Q q 0 0 0 rg BT 117.89 258.85 Td (filiate and purchase commission) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 258.85 Td (186) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 461.80 258.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.80 258.85 Td (186) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 245.85 Td (Unrealized change in market value of real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.80 245.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 245.85 Td (314) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.80 245.85 Td (314) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 232.85 Td (Real estate equity securities -) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 146.24 232.85 Td ( June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.50 232.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.80 232.85 Td (6,986) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.50 232.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.80 232.85 Td (314) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.50 232.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.80 232.85 Td (7,300) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 205.10 Td (7. ) Tj ET Q q 0 0 0 rg BT 72.00 205.10 Td (INVESTMENT) Tj ET Q q 0 0 0 rg BT 139.06 205.10 Td ( IN UNCONSOLIDA) Tj ET Q q 0 0 0 rg BT 229.44 205.10 Td (TED ENTITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 187.10 Td (On June 28, 2016, the Company originated a participating loan facility in an amount up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.20 187.10 Td (€2.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.09 187.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.92 187.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.81 187.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.10 Td (closing\). ) Tj ET Q q 0 0 0 rg BT 86.54 175.10 Td (The Company funded approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.50 175.10 Td (€2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.39 175.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.22 175.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.11 175.10 Td ( at closing\). ) Tj ET Q q 0 0 0 rg BT 389.36 175.10 Td (The proceeds were used by ST) Tj ET Q q 0 0 0 rg BT 511.58 175.10 Td (AM to fund ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.10 Td (a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.44 163.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.77 163.10 Td ( general partner interest in a joint venture acquiring a portfolio of light industrial properties located throughout France. ) Tj ET Q q 0 0 0 rg BT 546.38 163.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (total acquisition cost of the portfolio was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.12 151.10 Td (€95.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.01 151.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.84 151.10 Td ($105.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.73 151.10 Td ( at closing\). Under the terms of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (participating loan facility) Tj ET Q q 0 0 0 rg BT 149.92 139.10 Td (, the Company participates in the expected residual profits of the portfolio and the terms are structured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.10 Td (in a manner such that the risks and rewards of the arrangement are similar to those associated with an investment in a real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.10 Td (joint venture. ) Tj ET Q q 0 0 0 rg BT 107.27 115.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 156.60 115.10 Td (, the participating loan facility is accounted for under the equity method of accounting. In addition to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 103.10 Td (the amount funded at closing, the Company also capitalized an additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.53 103.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.42 103.10 Td ( of acquisition costs and fees. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 91.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 91.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.92 91.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.59 91.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.42 91.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.25 91.10 Td (, the Company recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.71 91.10 Td ($1) Tj ET Q q 0 0 0 rg BT 334.34 91.10 Td (16,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.84 91.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.28 91.10 Td ($131,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.78 91.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 471.44 91.10 Td (, of income with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 79.10 Td (respect to this investment. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.97 79.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.96 79.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.39 79.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.06 79.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.89 79.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.72 79.10 Td (, the Company recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.19 79.10 Td ($13,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.69 79.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 67.10 Td ($26,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 67.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 134.66 67.10 Td (, of income with respect to this investment.) Tj ET Q endstream endobj 43 0 obj <>] /Rotate 0 /Contents 44 0 R>> endobj 44 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (8. ) Tj ET Q q 0 0 0 rg BT 72.00 632.25 Td (NOTES P) Tj ET Q q 0 0 0 rg BT 113.77 632.25 Td (A) Tj ET Q q 0 0 0 rg BT 120.07 632.25 Td (Y) Tj ET Q q 0 0 0 rg BT 126.38 632.25 Td (ABLE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 614.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 614.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 614.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.21 614.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.80 614.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 313.18 614.25 Td (s notes payable consisted of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 578.75 134.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 578.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 578.75 69.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.00 578.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 578.75 70.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 578.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 578.75 75.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 578.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 578.75 60.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 578.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 578.75 40.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 578.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 578.75 41.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 540.75 134.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 540.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 540.75 69.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.00 540.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 540.75 70.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 540.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 540.75 75.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 540.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 540.75 60.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 540.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 540.75 40.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 540.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 540.75 41.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 502.75 134.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 502.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 502.75 69.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.00 502.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 502.75 70.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 502.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 502.75 75.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 502.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 502.75 60.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 502.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 502.75 40.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 502.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 502.75 41.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 464.75 134.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 464.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 464.75 69.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.00 464.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 464.75 70.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 464.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 464.75 75.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 464.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 464.75 60.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 464.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 464.75 40.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 464.75 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 464.75 41.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 426.75 134.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 426.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 426.75 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.00 426.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 426.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 426.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 426.75 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 426.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 426.75 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 426.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 426.75 40.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 426.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 426.75 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 400.75 134.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 400.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 400.75 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.00 400.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 400.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 400.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 400.75 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 400.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 400.75 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 400.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 400.75 40.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 400.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 400.75 41.00 -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 188 578.75 m 257 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 578.75 m 331 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 578.75 m 410 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 578.75 m 474 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 578.75 m 518 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 578.75 m 563 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 578.75 m 257 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 578.75 m 331 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 578.75 m 410 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 578.75 m 474 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 578.75 m 518 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 578.75 m 563 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 426.75 m 257 426.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 426.75 m 331 426.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 426.75 m 257 426.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 426.75 m 331 426.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 400.75 m 257 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 388.75 m 257 388.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 386.75 m 257 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 400.75 m 331 400.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 388.75 m 331 388.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 386.75 m 331 386.75 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 197.20 589.81 Td (Book ) Tj ET Q q 0 0 0 rg BT 214.39 589.81 Td (V) Tj ET Q q 0 0 0 rg BT 218.80 589.81 Td (alue as of ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 201.65 582.81 Td (June 30, 2018) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 270.70 589.81 Td (Book ) Tj ET Q q 0 0 0 rg BT 287.89 589.81 Td (V) Tj ET Q q 0 0 0 rg BT 292.30 589.81 Td (alue as of ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 267.25 582.81 Td (December) Tj ET Q q 0 0 0 rg BT 297.44 582.81 Td ( 31, 2017) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 341.40 589.81 Td (Contractual Inter) Tj ET Q q 0 0 0 rg BT 394.35 589.81 Td (est ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 361.45 582.81 Td (Rate ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 377.19 585.98 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 417.80 589.81 Td (Effective Inter) Tj ET Q q 0 0 0 rg BT 461.01 589.81 Td (est ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 432.95 582.81 Td (Rate ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 448.69 585.98 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 484.25 589.81 Td (Payment) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 490.15 582.81 Td (T) Tj ET Q q 0 0 0 rg BT 494.56 582.81 Td (ype) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 528.35 589.81 Td (Maturity) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 535.00 582.81 Td (Date) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 563.80 Td (Springmaid Beach Resort Mortgage Loan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 190.50 563.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 234.90 563.80 Td (37,640) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 263.50 563.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.90 563.80 Td (38,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 570.80 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.95 563.80 Td (3.00%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 563.80 Td (4.98%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.25 570.80 Td (Principal &) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 563.80 Td (Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 563.80 Td (12/30/2018) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 544.80 Td (Q&C Hotel Mortgage Loan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 234.90 544.80 Td (26,524) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.90 544.80 Td (28,330) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 551.80 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.95 544.80 Td (3.25%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 544.80 Td (5.23%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.25 551.80 Td (Principal &) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 544.80 Td (Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 544.80 Td (12/17/2018) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 525.80 Td (2200 Paseo ) Tj ET Q q 0 0 0 rg BT 86.20 525.80 Td (V) Tj ET Q q 0 0 0 rg BT 90.48 525.80 Td (erde Mortgage Loan ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 149.38 528.97 Td (\(2\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 238.40 525.80 Td (7,947) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 312.40 525.80 Td (7,947) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 532.80 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.95 525.80 Td (2.25%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 525.80 Td (4.23%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 532.80 Td (Interest ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.95 525.80 Td (Only ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 502.70 528.97 Td (\(2\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 525.80 Td (07/01/2020) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 506.80 Td (Lincoln Court Mortgage Loan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 234.90 506.80 Td (33,500) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.90 506.80 Td (33,500) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 513.80 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.95 506.80 Td (1.75%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 506.80 Td (3.84%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 513.80 Td (Interest ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 490.50 506.80 Td (Only) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 506.80 Td (06/01/2020) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 487.80 Td (Lofts at NoHo Commons Mortgage Loan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 234.90 487.80 Td (72,100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.90 487.80 Td (72,100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 494.80 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.95 487.80 Td (2.66%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 487.80 Td (4.66%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 494.80 Td (Interest ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 490.50 487.80 Td (Only) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 487.80 Td (12/01/2019) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 468.80 Td (210 ) Tj ET Q q 0 0 0 rg BT 64.62 468.80 Td (W) Tj ET Q q 0 0 0 rg BT 70.67 468.80 Td (est 31st Street Mortgage Loan ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 156.79 471.97 Td (\(3\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 234.90 468.80 Td (37,516) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.90 468.80 Td (35,763) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 475.80 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.95 468.80 Td (5.50%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 468.80 Td (7.48%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 475.80 Td (Interest ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 490.50 468.80 Td (Only) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 468.80 Td (12/01/2019) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 449.80 Td (Oakland City Center Mortgage Loan ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 157.28 452.97 Td (\(4\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 234.90 449.80 Td (94,500) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.90 449.80 Td (94,500) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 456.80 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.95 449.80 Td (1.75%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 449.80 Td (3.73%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 456.80 Td (Interest ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.95 449.80 Td (Only ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 502.70 452.97 Td (\(4\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 449.80 Td (09/01/2022) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 430.80 Td (Madison Square Mortgage Loan ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 145.03 433.97 Td (\(5\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 234.90 430.80 Td (21,895) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.90 430.80 Td (21,895) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 437.80 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 359.40 430.80 Td (4.05% ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 379.23 433.97 Td (\(5\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 430.80 Td (6.12%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 437.80 Td (Interest ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 490.50 430.80 Td (Only) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 430.80 Td (10/09/2020) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 417.80 Td (T) Tj ET Q q 0 0 0 rg BT 56.29 417.80 Td (otal notes payable principal outstanding) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 231.40 417.80 Td (331,622) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 305.40 417.80 Td (332,035) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 404.80 Td ( Deferred financing costs, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 236.05 404.80 Td (\(2,948) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 254.15 404.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 310.05 404.85 Td (\(3,684) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 328.15 404.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 391.80 Td (T) Tj ET Q q 0 0 0 rg BT 56.29 391.80 Td (otal notes payable, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 190.50 391.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 231.40 391.80 Td (328,674) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 263.50 391.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 305.40 391.80 Td (328,351) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 367.27 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 363.65 Td ( Contractual interest rate represents the interest rate in ef) Tj ET Q q 0 0 0 rg BT 236.45 363.65 Td (fect under the loan as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 315.53 363.65 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.19 363.65 Td (. Ef) Tj ET Q q 0 0 0 rg BT 373.60 363.65 Td (fective interest rate is calculated as the actual interest rate ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 354.05 Td (in ef) Tj ET Q q 0 0 0 rg BT 63.79 354.05 Td (fect as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 95.11 354.05 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 139.77 354.05 Td ( \(consisting of the contractual interest rate, contractual floor rates and the ef) Tj ET Q q 0 0 0 rg BT 381.97 354.05 Td (fects of interest rate caps, if applicable\), using interest ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 344.45 Td (rate indices at ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 95.92 344.45 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 140.59 344.45 Td (, where applicable. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 335.48 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 331.85 Td ( ) Tj ET Q q 0 0 0 rg BT 57.12 331.85 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.68 331.85 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 121.34 331.85 Td (, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 125.34 331.85 Td ($7.9 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 164.45 331.85 Td ( had been disbursed to the Company and up to ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.65 331.85 Td ($1.6 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.76 331.85 Td ( is available for future disbursements to be used for tenant ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (improvement costs, capital improvements costs and leasing commissions, subject to certain terms and conditions contained in the loan documents. Beginning ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 312.65 Td (August 1, 2019, monthly payments include principal amortization payments of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.68 312.65 Td ($10,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.68 312.65 Td ( per month.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 303.68 Td (\(3\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 300.05 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.42 300.05 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 121.08 300.05 Td (, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 125.08 300.05 Td ($37.5 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 168.19 300.05 Td ( had been disbursed to the Company and up to ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.39 300.05 Td ($9.6 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.50 300.05 Td ( is available for future disbursements to be used for capital ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 290.45 Td (improvement costs, tenant improvement costs, leasing commissions and operating/interest shortfall, subject to certain terms and conditions contained in the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 280.85 Td (loan documents.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 271.88 Td (\(4\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 268.25 Td ( ) Tj ET Q q 0 0 0 rg BT 58.42 268.25 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 77.98 268.25 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 122.64 268.25 Td (, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 126.64 268.25 Td ($94.5 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 169.75 268.25 Td ( had been disbursed to the Company and up to ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.95 268.25 Td ($8.9 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.06 268.25 Td ( is available for future disbursements to be used for tenant ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 258.65 Td (improvements and leasing commissions, subject to certain terms and conditions contained in the loan documents. Beginning October 1, 2020, monthly ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 249.05 Td (payments will include principal and interest with principal payments of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 279.66 249.05 Td ($1) Tj ET Q q 0 0 0 rg BT 287.37 249.05 Td (10,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.37 249.05 Td ( or) Tj ET Q q 0 0 0 rg BT 317.71 249.05 Td (, in the event the Company repays any principal of the loan amount, with ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 239.45 Td (principal payments calculated using an amortization schedule of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 256.98 239.45 Td (30) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 264.98 239.45 Td ( years and an annual interest rate of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.49 239.45 Td (6.0%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.15 239.45 Td (, subject to certain terms and conditions contained ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 229.85 Td (in the loan documents.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 220.88 Td (\(5\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 217.25 Td ( ) Tj ET Q q 0 0 0 rg BT 57.12 217.25 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.68 217.25 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 121.34 217.25 Td (, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 125.34 217.25 Td ($21.9 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 168.45 217.25 Td ( had been disbursed to the Company and up to ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.65 217.25 Td ($12.2 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.76 217.25 Td ( is available for future disbursements to be used for tenant ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 207.65 Td (improvements and leasing expenses, subject to certain terms and conditions contained in the loan documents. ) Tj ET Q q 0 0 0 rg BT 401.04 207.65 Td (The Madison Square Mortgage Loan bears ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 198.05 Td (interest at a floating rate of 405 basis points over one-month LIBOR, but at no point shall the interest rate be less than ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 428.52 198.05 Td (5.05%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.19 198.05 Td (. ) Tj ET Q q 0 0 0 rg BT 453.04 198.05 Td (The property securing this ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 188.45 Td (mortgage loan was formerly known as Grace Court and was re-named Madison Square in connection with the Company’) Tj ET Q q 0 0 0 rg BT 436.73 188.45 Td (s re-branding strategy of the property) Tj ET Q q 0 0 0 rg BT 555.50 188.45 Td (.) Tj ET Q endstream endobj 45 0 obj <>] /Rotate 0 /Contents 46 0 R>> endobj 46 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 632.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 632.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.64 632.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.47 632.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.30 632.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.21 632.10 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.11 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.54 632.10 Td ($6.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.44 632.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 552.10 632.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (of interest expense. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.02 620.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.00 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.44 620.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.11 620.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.94 620.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.77 620.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.69 620.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.58 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.02 620.10 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.91 620.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 608.10 Td (, of interest expense. Included in interest expense was: \(i\) the amortization of deferred financing costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.29 608.10 Td ($0.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 596.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 596.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.72 596.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.38 596.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.37 596.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.81 596.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.48 596.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.30 596.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.13 596.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 383.79 596.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.73 596.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.62 596.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.06 596.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.95 596.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 584.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.92 584.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.59 584.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.42 584.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.25 584.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 269.91 584.10 Td (, \(ii\) the capitalization of interest to construction in progress related to its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (redevelopment project at 210 ) Tj ET Q q 0 0 0 rg BT 168.72 572.10 Td (W) Tj ET Q q 0 0 0 rg BT 177.36 572.10 Td (est 31st Street, which decreased interest expense by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.45 572.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.34 572.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.78 572.10 Td ($2.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.67 572.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.33 572.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.32 572.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.17 560.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 560.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.83 560.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 230.49 560.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.42 560.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.32 560.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.75 560.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.65 560.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.31 560.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.29 560.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.73 560.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.40 560.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.23 560.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.06 560.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 548.10 Td (, and \(iii\) an unrealized loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.57 548.10 Td ($20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.07 548.10 Td ( and an unrealized gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.13 548.10 Td ($10,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.63 548.10 Td ( on interest rate cap agreements for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 536.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.92 536.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.59 536.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.42 536.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.25 536.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 269.91 536.10 Td (, and unrealized losses related to interest rate cap agreements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.02 536.10 Td ($23,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.52 536.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 524.10 Td ($73,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.94 524.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.32 524.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.30 524.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.74 524.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.41 524.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.23 524.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.06 524.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 350.73 524.10 Td (. ) Tj ET Q q 0 0 0 rg BT 355.17 524.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.62 524.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.45 524.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.89 524.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.47 524.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 512.10 Td (s interest payable was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.14 512.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.03 512.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.47 512.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.36 512.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 351.02 512.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 494.10 Td (The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 482.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.16 482.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 468.60 408.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 468.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 468.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 442.60 408.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 442.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 442.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 416.60 408.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 416.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 416.60 100.00 -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 462 403.6 m 562 403.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 391.6 m 562 391.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 389.6 m 562 389.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 459.85 Td (July 1, 2018 through December 31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.50 459.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.80 459.85 Td (64,164) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 446.85 Td (2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.80 446.85 Td (109,666) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 433.85 Td (2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.80 433.85 Td (63,622) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 420.85 Td (2021) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 420.85 Td (1,320) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 407.85 Td (2022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.80 407.85 Td (92,850) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.50 394.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.80 394.85 Td (331,622) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 367.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 133.21 367.10 Td (s notes payable contain financial and non-financial debt covenants. ) Tj ET Q q 0 0 0 rg BT 403.12 367.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.56 367.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.39 367.10 Td (, the Company was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.10 Td (in compliance with all debt covenants, except that the borrowers under the Q&C Hotel Mortgage Loan and Madison Square ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.10 Td (Mortgage Loan were out of debt service coverage compliance. Such non-compliance does not constitute an event of default ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 331.10 Td (under the applicable loan agreements. Under the Q&C Hotel Mortgage Loan, as a result of such non-compliance, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.10 Td (is required to make a principal paydown. Under the Madison Square Mortgage Loan, as a result of such non-compliance, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 307.10 Td (Company is required to maintain an interest shortfall reserve.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 289.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 133.21 289.10 Td (s note payable with respect to the Springmaid Beach Resort Mortgage Loan requires the Company to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.10 Td (maintain a minimum working capital reserve in an amount suf) Tj ET Q q 0 0 0 rg BT 298.42 277.10 Td (ficient to fund the working capital requirements of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.10 Td (Springmaid Beach Resort through the of) Tj ET Q q 0 0 0 rg BT 211.23 265.10 Td (f-peak season, which amount shall be reduced by any amounts for working capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.10 Td (reserved by the third-party hotel operator) Tj ET Q q 0 0 0 rg BT 213.61 253.10 Td (. In addition, until certain renovations are complete, the loan documents impose a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.10 Td (“cash trap” which restricts the use of accumulated cash from the Springmaid Beach Resort to the payment of working capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.10 Td (shortfalls, renovation expenditures and distributions required to satisfy the Company’) Tj ET Q q 0 0 0 rg BT 391.10 229.10 Td (s REIT) Tj ET Q q 0 0 0 rg BT 419.53 229.10 Td ( requirements. ) Tj ET Q q 0 0 0 rg BT 479.05 229.10 Td (The working capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.10 Td (reserve was included in restricted cash on the accompanying consolidated balance sheets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 193.10 Td (9. ) Tj ET Q q 0 0 0 rg BT 72.00 193.10 Td (DERIV) Tj ET Q q 0 0 0 rg BT 102.94 193.10 Td (A) Tj ET Q q 0 0 0 rg BT 109.42 193.10 Td (TIVE INSTRUMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 175.10 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 49.50 163.10 Td (variability caused by changing interest rates. ) Tj ET Q q 0 0 0 rg BT 232.59 163.10 Td (The primary goal of the Company’) Tj ET Q q 0 0 0 rg BT 371.72 163.10 Td (s risk management practices related to interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (rate risk is to prevent changes in interest rates from adversely impacting the Company’) Tj ET Q q 0 0 0 rg BT 396.34 151.10 Td (s ability to achieve its investment return ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (objectives. ) Tj ET Q q 0 0 0 rg BT 97.36 139.10 Td (The Company does not enter into the derivatives for speculative purposes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 121.10 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 49.50 109.10 Td (payable. ) Tj ET Q q 0 0 0 rg BT 85.41 109.10 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 97.10 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 85.10 Td (the value of interest rate caps. ) Tj ET Q q 0 0 0 rg BT 170.84 85.10 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 73.10 Td (decrease towards zero.) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 632.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.77 632.10 Td (, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.82 632.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.48 632.10 Td ( interest rate caps outstanding, which were not designated as hedging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (instruments. ) Tj ET Q q 0 0 0 rg BT 100.98 620.10 Td (The following table summarizes the notional amount and other information related to the Company’) Tj ET Q q 0 0 0 rg BT 501.16 620.10 Td (s derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (instruments as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.33 608.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.16 608.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.59 608.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.18 608.10 Td (. ) Tj ET Q q 0 0 0 rg BT 281.50 608.10 Td (The notional amount is an indication of the extent of the Company’) Tj ET Q q 0 0 0 rg BT 550.60 608.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks \(dollars in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 536.60 69.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 119.00 536.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 123.00 536.60 50.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 173.00 536.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 536.60 50.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 536.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 536.60 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 536.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 536.60 75.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 536.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 536.60 53.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 536.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 536.60 75.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 536.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 536.60 68.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 494.60 69.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 119.00 494.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 123.00 494.60 50.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 173.00 494.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 494.60 50.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 494.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 494.60 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 494.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 494.60 75.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 494.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 494.60 53.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 494.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 494.60 75.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 494.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 494.60 68.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 452.60 69.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 119.00 452.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 123.00 452.60 50.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 173.00 452.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 452.60 50.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 452.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 452.60 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 452.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 452.60 75.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 452.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 452.60 53.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 452.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 452.60 75.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 452.60 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 452.60 68.00 -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 359 557.6 m 412 557.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 557.6 m 416 557.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 557.6 m 491 557.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 536.6 m 119 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 123 536.6 m 173 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 536.6 m 227 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231 536.6 m 276 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 536.6 m 355 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 557.6 m 412 557.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 536.6 m 412 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 557.6 m 416 557.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 557.6 m 491 557.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 536.6 m 491 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 536.6 m 563 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 431.6 m 412 431.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 431.6 m 491 431.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 431.6 m 412 431.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 419.6 m 412 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 417.6 m 412 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 431.6 m 491 431.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 419.6 m 491 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 417.6 m 491 417.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 392.45 561.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 406.97 561.83 Td ( ) Tj ET Q q 0 0 0 rg BT 408.82 561.83 Td (V) Tj ET Q q 0 0 0 rg BT 413.86 561.83 Td (alue of ) Tj ET Q q 0 0 0 rg BT 438.31 561.83 Td (Asset) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 548.83 Td (Derivative ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 540.83 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 132.35 548.83 Td (Effective ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 139.50 540.83 Td (Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 185.90 548.83 Td (Maturity ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 193.50 540.83 Td (Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 238.30 548.83 Td (Notional ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 243.35 540.83 Td (V) Tj ET Q q 0 0 0 rg BT 248.39 540.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.95 540.83 Td (Refer) Tj ET Q q 0 0 0 rg BT 309.90 540.83 Td (ence Rate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.75 540.83 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.75 540.83 Td (December) Tj ET Q q 0 0 0 rg BT 455.25 540.83 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.60 548.83 Td (Balance Sheet ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.35 540.83 Td (Location) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 519.85 Td (Interest Rate Cap) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.25 519.85 Td (12/29/2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.25 519.85 Td (01/01/2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.50 519.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.75 519.85 Td (26,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.75 527.85 Td (One-month LIBOR ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.75 519.85 Td (at 3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.50 519.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.80 519.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.50 519.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 519.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 527.85 Td (Prepaid expenses ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.15 519.85 Td (and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 498.85 Td (Interest Rate Cap) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.25 498.85 Td (12/15/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.25 498.85 Td (12/23/2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.50 498.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.75 498.85 Td (28,330) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.75 506.85 Td (One-month LIBOR ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.75 498.85 Td (at 3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.80 498.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 498.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 506.85 Td (Prepaid expenses ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.15 498.85 Td (and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 477.85 Td (Interest Rate Cap) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.25 477.85 Td (12/01/2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.25 477.85 Td (12/01/2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.50 477.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.75 477.85 Td (47,1) Tj ET Q q 0 0 0 rg BT 264.75 477.85 Td (10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.75 485.85 Td (One-month LIBOR ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.75 477.85 Td (at 3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.80 477.85 Td (21) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 477.85 Td (9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 485.85 Td (Prepaid expenses ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.15 477.85 Td (and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 456.85 Td (Interest Rate Cap) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.25 456.85 Td (10/03/2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.25 456.85 Td (10/15/2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.50 456.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.75 456.85 Td (34,125) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.75 464.85 Td (One-month LIBOR ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.75 456.85 Td (at 3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.80 456.85 Td (10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 456.85 Td (4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 464.85 Td (Prepaid expenses ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.15 456.85 Td (and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 435.85 Td (Interest Rate Cap) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.25 435.85 Td (02/02/2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.25 435.85 Td (12/30/2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.50 435.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.75 435.85 Td (26,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.75 443.85 Td (One-month LIBOR ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.75 435.85 Td (at 3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.80 435.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 435.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 443.85 Td (Prepaid expenses ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.15 435.85 Td (and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 422.85 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 422.85 Td (otal Derivative Instruments not designated as hedging instruments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.50 422.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.80 422.85 Td (31) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.50 422.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 422.85 Td (13) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 395.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 395.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.03 395.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.86 395.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.69 395.10 Td (, the Company recorded an unrealized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.35 395.10 Td (loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.91 395.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.24 395.10 Td ($20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.74 395.10 Td ( on interest rate cap ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (agreements, which is 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 538.81 383.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.48 383.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 371.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 371.10 Td (, the Company recorded an unrealized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.31 371.10 Td (gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.53 371.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.86 371.10 Td ($10,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.36 371.10 Td ( on interest rate cap agreements, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (included as an of) Tj ET Q q 0 0 0 rg BT 117.35 359.10 Td (fset to 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 500.02 359.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.01 359.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.45 359.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.12 359.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 347.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 347.10 Td (, the Company recorded an unrealized loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.21 347.10 Td ($23,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.71 347.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.14 347.10 Td ($73,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.64 347.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 484.30 347.10 Td (, on interest rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.10 Td (cap agreements, which is included in interest expense on the accompanying consolidated statements of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 317.10 Td (The Company enters into foreign currency forward contracts to mitigate its exposure to foreign currency exchange rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (movements on its investment in unconsolidated entity) Tj ET Q q 0 0 0 rg BT 264.38 305.10 Td (. ) Tj ET Q q 0 0 0 rg BT 269.20 305.10 Td (The foreign currency forward contract is a commitment to deliver a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (certain amount of currency at a certain price on a specific date in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 275.10 Td (The following table summarizes the notional amount and other information related to the Company’) Tj ET Q q 0 0 0 rg BT 473.68 275.10 Td (s foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (forward contract as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.01 263.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.84 263.10 Td (. ) Tj ET Q q 0 0 0 rg BT 200.66 263.10 Td (The notional amount is an indication of the extent of the Company’) Tj ET Q q 0 0 0 rg BT 469.77 263.10 Td (s involvement in each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (instrument 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 50.00 224.60 513.00 -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 50 224.60000000000002 m 263 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 224.60000000000002 m 338 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 224.60000000000002 m 413 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 224.60000000000002 m 488 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 224.60000000000002 m 563 224.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 228.83 Td (Derivative Instrument) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 272.55 228.83 Td (Notional ) Tj ET Q q 0 0 0 rg BT 303.67 228.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 356.65 228.83 Td (Strike Price) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.85 228.83 Td (T) Tj ET Q q 0 0 0 rg BT 437.89 228.83 Td (rade Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.45 228.83 Td (Maturity Date) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 215.83 Td (Derivative instrument not designated as hedging instrument) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 202.85 Td (Foreign currency forward contract) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 269.50 202.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 316.80 202.85 Td (2,668) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.65 202.85 Td (1.2704 USD-EUR) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.75 202.85 Td (09/05/2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 508.75 202.85 Td (09/07/2021) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 175.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 175.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.03 175.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.47 175.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.14 175.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.97 175.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.80 175.10 Td (, the Company recorded a foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.17 175.10 Td (gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.38 175.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.71 175.10 Td ($135,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.21 175.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.10 Td ($51,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 163.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 134.66 163.10 Td (, on foreign currency forward contract, which is included as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.18 163.10 Td (of) Tj ET Q q 0 0 0 rg BT 396.33 163.10 Td (fset) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.76 163.10 Td ( to general and administrative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (expenses on the accompanying consolidated statements of operations. ) Tj ET Q q 0 0 0 rg BT 331.18 151.10 Td (The fair value of the foreign currency forward contract ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.55 139.10 Td ($27,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.05 139.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.49 139.10 Td ($79,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.99 139.10 Td ( liability as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.76 139.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.59 139.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.03 139.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.61 139.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 416.27 139.10 Td (, included in other liabilities on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.10 Td (accompanying balance sheets.) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (23) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (10. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 632.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 632.25 Td (F) Tj ET Q q 0 0 0 rg BT 77.37 632.25 Td (AIR ) Tj ET Q q 0 0 0 rg BT 98.02 632.25 Td (V) Tj ET Q q 0 0 0 rg BT 103.95 632.25 Td (ALUE DISCLOSURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (Under GAAP) Tj ET Q q 0 0 0 rg BT 125.61 614.25 Td (, the Company is required to measure certain financial instruments at fair value on a recurring basis. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (addition, the Company is required to measure other non-financial and financial assets at fair value on a non-recurring basis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (\(e.g., carrying value of impaired real estate loans receivable and long-lived assets\). Fair value is defined as the price that would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (measurement date. ) Tj ET Q q 0 0 0 rg BT 129.29 566.25 Td (The GAAP) Tj ET Q q 0 0 0 rg BT 174.19 566.25 Td ( fair value framework uses a three-tiered approach. Fair value measurements are classified and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (disclosed in one of the following three categories:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 536.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 536.25 Td (Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 524.25 Td (liabilities; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 509.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 509.25 Td (Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 497.25 Td (markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 485.25 Td (observable in active markets; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 470.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 470.25 Td (Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 458.25 Td (significant to the fair value measurement and unobservable. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 437.25 Td (The fair value for certain financial instruments is derived using a combination of market quotes, pricing models and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.25 Td (valuation techniques that involve significant management judgment. ) Tj ET Q q 0 0 0 rg BT 327.86 425.25 Td (The price transparency of financial instruments is a key ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.25 Td (determinant of the degree of judgment involved in determining the fair value of the Company’) Tj ET Q q 0 0 0 rg BT 426.61 413.25 Td (s financial instruments. Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.25 Td (instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (or consist of non-orderly trades. ) Tj ET Q q 0 0 0 rg BT 182.34 377.25 Td (The Company evaluates several factors when determining if a market is inactive or when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.25 Td (market transactions are not orderly) Tj ET Q q 0 0 0 rg BT 188.24 365.25 Td (. ) Tj ET Q q 0 0 0 rg BT 195.56 365.25 Td (The following is a summary of the methods and assumptions used by management in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.25 Td (estimating the fair value of each class of assets and liabilities for which it is practicable to estimate the fair value:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 335.25 Td (Cash and cash equivalents, r) Tj ET Q q 0 0 0 rg BT 187.45 335.25 Td (estricted cash, r) Tj ET Q q 0 0 0 rg BT 251.24 335.25 Td (ent and other r) Tj ET Q q 0 0 0 rg BT 310.58 335.25 Td (eceivables and accounts payable and accrued liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.41 335.25 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.25 Td (These balances approximate their fair values due to the short maturities of these items.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 305.25 Td (Real estate equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.91 305.25 Td (: ) Tj ET Q q 0 0 0 rg BT 189.01 305.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 248.72 305.25 Td (s real estate equity securities are presented at fair value on the accompanying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.25 Td (consolidated balance sheet. ) Tj ET Q q 0 0 0 rg BT 160.94 293.25 Td (The fair values of real estate equity securities were based on a quoted price in an active market on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.25 Td (major stock exchange. ) Tj ET Q q 0 0 0 rg BT 141.51 281.25 Td (The Company classifies these inputs as Level 1 inputs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 263.25 Td (Real estate loan r) Tj ET Q q 0 0 0 rg BT 142.45 263.25 Td (eceivable:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.53 263.25 Td ( ) Tj ET Q q 0 0 0 rg BT 185.85 263.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 245.56 263.25 Td (s real estate loan receivable is presented in the accompanying consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.25 Td (balance sheets at its amortized cost net of recorded loan loss reserves \(if any\) and not at fair value. ) Tj ET Q q 0 0 0 rg BT 447.78 251.25 Td (The fair value of real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.25 Td (loan receivable was estimated using an internal valuation model that considered the expected cash flows for the loan, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.25 Td (underlying collateral value \(for collateral-dependent loans\) and estimated yield requirements of institutional investors for loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.25 Td (with similar characteristics, including remaining loan term, loan-to-value, type of collateral and other credit enhancements. ) Tj ET Q q 0 0 0 rg BT 546.36 215.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.25 Td (Company classifies these inputs as Level 3 inputs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 184.05 Td (Derivative instruments:) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 166.70 184.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.45 184.05 Td (The Company’) Tj ET Q q 0 0 0 rg BT 229.16 184.05 Td (s derivative instruments are presented at fair value on the accompanying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.05 Td (consolidated balance sheets. ) Tj ET Q q 0 0 0 rg BT 167.33 172.05 Td (The valuation of these instruments are determined using a proprietary model that utilizes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 160.05 Td (observable inputs. ) Tj ET Q q 0 0 0 rg BT 126.71 160.05 Td (As such, the Company classifies these inputs as Level 2 inputs. ) Tj ET Q q 0 0 0 rg BT 384.27 160.05 Td (The proprietary model uses the contractual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.05 Td (terms of the derivatives, including the period to maturity) Tj ET Q q 0 0 0 rg BT 275.18 148.05 Td (, as well as observable market-based inputs, including interest rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.05 Td (curves and volatility) Tj ET Q q 0 0 0 rg BT 130.50 136.05 Td (. ) Tj ET Q q 0 0 0 rg BT 137.82 136.05 Td (The fair value of interest rate caps \(floors\) are determined using the market standard methodology of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.05 Td (discounting the future expected cash payments \(receipts\) which would occur if variable interest rates rise above \(below\) the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.05 Td (strike rate of the caps \(floors\). ) Tj ET Q q 0 0 0 rg BT 172.33 112.05 Td (The variable interest rates used in the calculation of projected payments \(receipts\) on the cap ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.05 Td (\(floor\) are based on an expectation of future interest rates derived from observed market interest rate curves and volatilities. ) Tj ET Q q 0 0 0 rg BT 546.90 100.05 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 88.05 Td (fair value of foreign currency forward contract are valued by comparing the contracted forward exchange rate to the current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 76.05 Td (market exchange rate. ) Tj ET Q endstream endobj 51 0 obj <>] /Rotate 0 /Contents 52 0 R>> endobj 52 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (24) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (Notes payable:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.76 632.10 Td ( ) Tj ET Q q 0 0 0 rg BT 136.08 632.10 Td (The fair value of the Company’) Tj ET Q q 0 0 0 rg BT 261.87 632.10 Td (s notes payable are estimated using a discounted cash flow analysis based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (on management’) Tj ET Q q 0 0 0 rg BT 115.87 620.10 Td (s estimates of current market interest rates for instruments with similar characteristics, including remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (loan term, loan-to-value ratio, type of collateral and other credit enhancements. ) Tj ET Q q 0 0 0 rg BT 368.26 608.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 418.16 608.10 Td (, when determining the fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (liabilities in circumstances in which a quoted price in an active market for an identical liability is not available, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (measures fair value using \(i\) a valuation technique that uses the quoted price of the identical liability when traded as an asset or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (quoted prices for similar liabilities or similar liabilities when traded as assets or \(ii\) another valuation technique that is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (consistent with the principles of fair value measurement, such as the income approach or the market approach. ) Tj ET Q q 0 0 0 rg BT 495.83 560.10 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (classifies these inputs as Level 3 inputs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 530.10 Td (The following were the face value, carrying amount and fair value of the Company’) Tj ET Q q 0 0 0 rg BT 406.87 530.10 Td (s financial instruments as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.57 530.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 518.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 518.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.52 518.10 Td (, which carrying amounts do not approximate the fair values \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 480.60 150.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 480.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 480.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 480.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 480.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 480.60 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 480.60 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 480.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 480.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 480.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 480.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 480.60 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 454.60 150.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 454.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 454.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 454.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 454.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 454.60 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 454.60 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 454.60 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 454.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 454.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 454.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 454.60 52.00 -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 200 493.6 m 250 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250 493.6 m 254 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 493.6 m 323 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 493.6 m 327 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 493.6 m 379 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 493.6 m 434 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 493.6 m 438 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 493.6 m 507 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 493.6 m 511 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 493.6 m 563 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 480.6 m 250 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 480.6 m 323 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 480.6 m 379 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 493.6 m 434 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 480.6 m 434 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 493.6 m 438 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 493.6 m 507 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 480.6 m 507 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 493.6 m 511 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 493.6 m 563 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 480.6 m 563 480.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 265.75 497.83 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.75 497.83 Td (December) Tj ET Q q 0 0 0 rg BT 475.32 497.83 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.90 484.83 Td (Face ) Tj ET Q q 0 0 0 rg BT 223.82 484.83 Td (V) Tj ET Q q 0 0 0 rg BT 229.15 484.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 257.40 484.83 Td (Carrying ) Tj ET Q q 0 0 0 rg BT 290.73 484.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 334.65 484.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 349.24 484.83 Td ( ) Tj ET Q q 0 0 0 rg BT 351.09 484.83 Td (V) Tj ET Q q 0 0 0 rg BT 356.43 484.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.90 484.83 Td (Face ) Tj ET Q q 0 0 0 rg BT 407.82 484.83 Td (V) Tj ET Q q 0 0 0 rg BT 413.15 484.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.40 484.83 Td (Carrying ) Tj ET Q q 0 0 0 rg BT 474.73 484.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.65 484.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 533.17 484.83 Td ( ) Tj ET Q q 0 0 0 rg BT 535.02 484.83 Td (V) Tj ET Q q 0 0 0 rg BT 540.06 484.83 Td (alue) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 471.85 Td (Financial asset:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 458.85 Td (Real estate loan receivable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.50 458.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 238.80 458.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 256.50 458.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.80 458.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.50 458.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 458.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 386.50 458.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 458.85 Td (3,500) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 440.50 458.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.80 458.85 Td (3,500) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 513.50 458.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 458.85 Td (3,500) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 445.85 Td (Financial liability:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 432.85 Td (Notes payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.50 432.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 220.75 432.85 Td (331,622) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 256.50 432.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.80 432.85 Td (328,674) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.50 432.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 349.75 432.85 Td (333,932) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 386.50 432.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.75 432.85 Td (332,035) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 440.50 432.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 432.85 Td (328,351) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 513.50 432.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.75 432.85 Td (333,336) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 405.10 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 49.50 393.10 Td (period end and requires a significant amount of judgment. Despite increased capital market and credit market activity) Tj ET Q q 0 0 0 rg BT 518.40 393.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.10 Td (transaction volume for certain financial instruments remains relatively low) Tj ET Q q 0 0 0 rg BT 347.64 381.10 Td (. ) Tj ET Q q 0 0 0 rg BT 352.46 381.10 Td (This has made the estimation of fair values dif) Tj ET Q q 0 0 0 rg BT 537.78 381.10 Td (ficult ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.10 Td (and, therefore, both the actual results and the Company’) Tj ET Q q 0 0 0 rg BT 273.32 369.10 Td (s estimate of value at a future date could be materially dif) Tj ET Q q 0 0 0 rg BT 503.32 369.10 Td (ferent.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 351.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 351.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 351.10 Td (, the Company measured the following assets at fair value \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 292.60 217.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 292.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 292.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 292.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 292.60 81.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 292.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 292.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 292.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 292.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 266.60 217.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 266.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 266.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 266.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 266.60 81.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 266.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 266.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 266.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 266.60 70.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 327.6 m 415 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 327.6 m 419 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 327.6 m 489 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 327.6 m 493 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 327.6 m 563 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 292.6 m 330 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 327.6 m 415 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 292.6 m 415 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 292.6 m 489 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 292.6 m 563 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 292.6 m 415 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 292.6 m 489 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 292.6 m 563 292.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 331.85 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 331.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.35 331.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 407.94 331.83 Td ( ) Tj ET Q q 0 0 0 rg BT 409.79 331.83 Td (V) Tj ET Q q 0 0 0 rg BT 415.13 331.83 Td (alue Measur) Tj ET Q q 0 0 0 rg BT 457.13 331.83 Td (ements Using) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 296.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 291.25 296.83 Td (T) Tj ET Q q 0 0 0 rg BT 295.85 296.83 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 345.55 319.68 Td (Quoted Prices in ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.60 311.68 Td (Active Markets for) Tj ET Q q 0 0 0 rg BT 406.31 311.68 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 347.40 303.68 Td (Identical ) Tj ET Q q 0 0 0 rg BT 379.18 303.68 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.00 295.68 Td (\(Level 1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.90 312.83 Td (Significant Other) Tj ET Q q 0 0 0 rg BT 483.09 312.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.80 304.83 Td (Observable Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.50 296.83 Td (\(Level 2\) ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.05 319.68 Td (Significant ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.90 311.68 Td (Unobservable ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.35 303.68 Td (Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.50 295.68 Td (\(Level 3\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 283.85 Td (Recurring Basis:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 270.85 Td (Real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 270.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 270.85 Td (7,300) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.50 270.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 270.85 Td (7,300) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 270.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 270.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 270.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 270.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 257.85 Td (Asset derivatives - interest rate caps) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 257.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.80 257.85 Td (31) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.50 257.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 257.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 257.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 257.85 Td (31) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 257.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 257.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 244.85 Td (Liability derivative - foreign currency forward contract) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 244.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.80 244.85 Td (27) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.50 244.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 244.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 244.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 244.85 Td (27) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 244.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 244.85 Td (—) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 217.10 Td (1) Tj ET Q q 0 0 0 rg BT 53.95 217.10 Td (1. ) Tj ET Q q 0 0 0 rg BT 72.00 217.10 Td (RELA) Tj ET Q q 0 0 0 rg BT 99.04 217.10 Td (TED P) Tj ET Q q 0 0 0 rg BT 127.47 217.10 Td (AR) Tj ET Q q 0 0 0 rg BT 141.56 217.10 Td (TY) Tj ET Q q 0 0 0 rg BT 155.08 217.10 Td ( ) Tj ET Q q 0 0 0 rg BT 157.40 217.10 Td (TRANSACTIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 199.10 Td (The Company has entered into the ) Tj ET Q q 0 0 0 rg BT 211.41 199.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 250.58 199.10 Td (Agreement with the ) Tj ET Q q 0 0 0 rg BT 331.95 199.10 Td (Advisor and dealer manager agreements with the Dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.10 Td (Manager) Tj ET Q q 0 0 0 rg BT 84.64 187.10 Td (, with respect to the Private Of) Tj ET Q q 0 0 0 rg BT 206.92 187.10 Td (fering and the Public Of) Tj ET Q q 0 0 0 rg BT 303.38 187.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 334.58 187.10 Td (These agreements entitle the ) Tj ET Q q 0 0 0 rg BT 450.64 187.10 Td (Advisor and the Dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.10 Td (Manager to specified fees upon the provision of certain of) Tj ET Q q 0 0 0 rg BT 281.18 175.10 Td (fering-related services and the investment of funds in real estate-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.10 Td (related investments, among other services, as well as reimbursement of or) Tj ET Q q 0 0 0 rg BT 344.78 163.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 414.02 163.10 Td (fering costs incurred by the ) Tj ET Q q 0 0 0 rg BT 525.38 163.10 Td (Advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (and the Dealer Manager on behalf of the Company and certain costs incurred by the ) Tj ET Q q 0 0 0 rg BT 386.88 151.10 Td (Advisor in providing services to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (Company) Tj ET Q q 0 0 0 rg BT 87.74 139.10 Td (. In addition, the ) Tj ET Q q 0 0 0 rg BT 155.51 139.10 Td (Advisor is entitled to certain other fees, including an incentive fee upon achieving certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.10 Td (performance goals, as described in the ) Tj ET Q q 0 0 0 rg BT 204.72 127.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 243.89 127.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 293.13 127.10 Td (The ) Tj ET Q q 0 0 0 rg BT 310.63 127.10 Td (Advisor also serves as the advisor for KBS Real Estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.10 Td (Investment ) Tj ET Q q 0 0 0 rg BT 96.25 115.10 Td (T) Tj ET Q q 0 0 0 rg BT 102.01 115.10 Td (rust, Inc. \(“KBS REIT) Tj ET Q q 0 0 0 rg BT 191.54 115.10 Td ( I”\), KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 326.60 115.10 Td (T) Tj ET Q q 0 0 0 rg BT 332.36 115.10 Td (rust II, Inc. \(“KBS REIT) Tj ET Q q 0 0 0 rg BT 431.04 115.10 Td ( II”\), KBS Real Estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 103.10 Td (Investment ) Tj ET Q q 0 0 0 rg BT 96.25 103.10 Td (T) Tj ET Q q 0 0 0 rg BT 102.01 103.10 Td (rust III, Inc. \(“KBS REIT) Tj ET Q q 0 0 0 rg BT 204.03 103.10 Td ( III”\), KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 317.88 103.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 384.62 103.10 Td (, Inc. \(“KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 503.75 103.10 Td (Apartment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 91.10 Td (REIT”\), KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 217.34 91.10 Td (, Inc. \(“KBS Strategic Opportunity REIT”\) and KBS Growth & Income REIT) Tj ET Q q 0 0 0 rg BT 527.93 91.10 Td (, Inc. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 79.10 Td (\(“KBS Growth & Income REIT”\). ) Tj ET Q q 0 0 0 rg BT 189.84 79.10 Td (The Dealer Manager also serves as the dealer manager for the KBS dividend reinvestment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 67.10 Td (plan of) Tj ET Q q 0 0 0 rg BT 77.37 67.10 Td (ferings for KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 254.65 67.10 Td (, KBS REIT) Tj ET Q q 0 0 0 rg BT 303.64 67.10 Td ( III and KBS Growth & Income REIT) Tj ET Q q 0 0 0 rg BT 454.81 67.10 Td (. ) Tj ET Q endstream endobj 53 0 obj <>] /Rotate 0 /Contents 54 0 R>> endobj 54 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (25) 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 254.09 620.10 Td (, the Dealer Manager) Tj ET Q q 0 0 0 rg BT 338.09 620.10 Td (, the ) Tj ET Q q 0 0 0 rg BT 357.26 620.10 Td (Advisor and other KBS-af) Tj ET Q q 0 0 0 rg BT 462.34 620.10 Td (filiated entities, entered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (into an errors and omissions and directors and of) Tj ET Q q 0 0 0 rg BT 244.28 608.10 Td (ficers liability insurance program where the lower tiers of such insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (coverage are shared. ) Tj ET Q q 0 0 0 rg BT 136.21 596.10 Td (The cost of these lower tiers is allocated by the ) Tj ET Q q 0 0 0 rg BT 326.15 596.10 Td (Advisor and its insurance broker among each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (various entities covered by the program, and is billed directly to each entity) Tj ET Q q 0 0 0 rg BT 350.70 584.10 Td (. ) Tj ET Q q 0 0 0 rg BT 358.02 584.10 Td (The allocation of these shared coverage costs is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (proportionate to the pricing by the insurance marketplace for the first tiers of directors and of) Tj ET Q q 0 0 0 rg BT 421.69 572.10 Td (ficers liability coverage purchased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (individually by each REIT) Tj ET Q q 0 0 0 rg BT 155.12 560.10 Td (. ) Tj ET Q q 0 0 0 rg BT 162.44 560.10 Td (The ) Tj ET Q q 0 0 0 rg BT 179.93 560.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 212.53 560.10 Td (’) Tj ET Q q 0 0 0 rg BT 215.31 560.10 Td (s and the Dealer Manager) Tj ET Q q 0 0 0 rg BT 318.41 560.10 Td (’) Tj ET Q q 0 0 0 rg BT 321.18 560.10 Td (s portion of the shared lower tiers’) Tj ET Q q 0 0 0 rg BT 458.18 560.10 Td ( cost is proportionate to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (the respective entities’) Tj ET Q q 0 0 0 rg BT 138.72 548.10 Td ( prior cost for the errors and omissions insurance. In June 2015, KBS Growth & Income REIT) Tj ET Q q 0 0 0 rg BT 518.19 548.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (added to the insurance program at terms similar to those described above. KBS REIT) Tj ET Q q 0 0 0 rg BT 390.34 536.10 Td ( I elected to cease participation in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (program at the June 2017 renewal and obtained separate insurance coverage. ) Tj ET Q q 0 0 0 rg BT 358.26 524.10 Td (At renewal in June 2018, the Company) Tj ET Q q 0 0 0 rg BT 513.97 524.10 Td (, KBS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 160.96 512.10 Td ( and KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 269.00 512.10 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 336.30 512.10 Td ( elected to cease participation in the program and obtain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (separate insurance coverage. ) Tj ET Q q 0 0 0 rg BT 166.47 500.10 Td (The Company) Tj ET Q q 0 0 0 rg BT 222.76 500.10 Td (, together with KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 416.16 500.10 Td (, entered into an errors and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (omissions and directors and of) Tj ET Q q 0 0 0 rg BT 171.52 488.10 Td (ficers liability insurance program where the lower tiers of such insurance coverage are shared. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (The cost of these lower tiers is allocated by the ) Tj ET Q q 0 0 0 rg BT 239.44 476.10 Td (Advisor and its insurance broker among each REIT) Tj ET Q q 0 0 0 rg BT 445.03 476.10 Td ( covered by the program, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (is billed directly to each REIT) Tj ET Q q 0 0 0 rg BT 169.55 464.10 Td (. ) Tj ET Q q 0 0 0 rg BT 176.87 464.10 Td (The program is ef) Tj ET Q q 0 0 0 rg BT 248.05 464.10 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 (The ) Tj ET Q q 0 0 0 rg BT 89.50 416.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 128.67 416.10 Td (Agreement has a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.36 416.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.80 416.10 Td (-year term that expires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.98 416.10 Td (August 12, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.37 416.10 Td (. ) Tj ET Q q 0 0 0 rg BT 376.19 416.10 Td (The Company may terminate the ) Tj ET Q q 0 0 0 rg BT 509.76 416.10 Td (Advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (Agreement on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.92 404.10 Td (60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.92 404.10 Td ( days’) Tj ET Q q 0 0 0 rg BT 142.34 404.10 Td ( written notice. ) Tj ET Q q 0 0 0 rg BT 207.42 404.10 Td (The ) Tj ET Q q 0 0 0 rg BT 224.92 404.10 Td (Advisor in its sole discretion may defer any fee payable to it under the ) Tj ET Q q 0 0 0 rg BT 508.17 404.10 Td (Advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 100.87 392.10 Td (All or any portion of such fee not taken may be deferred without interest and paid when the ) Tj ET Q q 0 0 0 rg BT 468.54 392.10 Td (Advisor determines. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 374.10 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 49.50 362.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 362.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.92 362.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.59 362.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.42 362.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.25 362.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.69 362.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.69 362.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 309.35 362.10 Td (, and any related amounts payable as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.57 362.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.40 362.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 350.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 295.60 146.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 196.00 295.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 295.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 295.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 295.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.00 295.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 295.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 295.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 295.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 295.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 295.60 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 295.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 295.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 269.60 146.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 196.00 269.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 269.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 269.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 269.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.00 269.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 269.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 269.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 269.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 269.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 269.60 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 269.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 269.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 243.60 146.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 196.00 243.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 243.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 243.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 243.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.00 243.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 243.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 243.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 243.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 243.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 243.60 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 243.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 243.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 217.60 146.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 196.00 217.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 217.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 217.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 217.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.00 217.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 217.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 217.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 217.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 217.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 217.60 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 217.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 217.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 191.60 146.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 196.00 191.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 191.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 191.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 191.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.00 191.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 191.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 191.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 191.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 191.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 191.60 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 191.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 191.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 165.60 146.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 196.00 165.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 165.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 165.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 165.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.00 165.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 165.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 165.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 165.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 165.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.00 165.60 56.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 165.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 165.60 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 196 321.6 m 200 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 321.6 m 254 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 321.6 m 258 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 321.6 m 312 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 321.6 m 316 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 321.6 m 370 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 321.6 m 374 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 321.6 m 428 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 321.6 m 488 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 321.6 m 492 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 321.6 m 563 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 196 321.6 m 200 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 321.6 m 254 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 308.6 m 254 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 321.6 m 258 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 308.6 m 258 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 321.6 m 312 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 308.6 m 312 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 321.6 m 316 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 321.6 m 370 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 308.6 m 370 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 321.6 m 374 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 308.6 m 374 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 321.6 m 428 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 308.6 m 428 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 321.6 m 488 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 321.6 m 563 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 308.6 m 254 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 295.6 m 254 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 308.6 m 258 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 308.6 m 312 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 295.6 m 312 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 295.6 m 370 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 295.6 m 428 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 295.6 m 488 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 295.6 m 563 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 295.6 m 488 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 152.60000000000002 m 254 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 152.60000000000002 m 312 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 152.60000000000002 m 370 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 152.60000000000002 m 428 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 152.60000000000002 m 254 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 140.60000000000002 m 254 140.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 138.60000000000002 m 254 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 152.60000000000002 m 312 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 140.60000000000002 m 312 140.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 138.60000000000002 m 312 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 152.60000000000002 m 370 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 140.60000000000002 m 370 140.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 138.60000000000002 m 370 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 152.60000000000002 m 428 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 140.60000000000002 m 428 140.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 138.60000000000002 m 428 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 152.60000000000002 m 488 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 140.60000000000002 m 488 140.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 138.60000000000002 m 488 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 152.60000000000002 m 563 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 140.60000000000002 m 563 140.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 138.60000000000002 m 563 138.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 298.20 325.68 Td (Incurr) Tj ET Q q 0 0 0 rg BT 320.79 325.68 Td (ed) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.55 325.68 Td (Payable as of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 203.85 312.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 217.04 312.83 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 324.70 312.83 Td (Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.25 299.83 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.75 299.83 Td (December) Tj ET Q q 0 0 0 rg BT 529.32 299.83 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 218.50 299.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 276.50 299.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 334.50 299.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 392.50 299.83 Td (2017) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 286.83 Td (Expensed) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 273.85 Td (Asset management fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.50 273.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 238.80 273.85 Td (986) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 260.50 273.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 296.80 273.85 Td (577) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.50 273.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 348.80 273.85 Td (1,920) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 376.50 273.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.80 273.85 Td (1,081) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 434.50 273.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 273.85 Td (20) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.50 273.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 273.85 Td (22) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 260.85 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 162.02 264.48 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 238.80 260.85 Td (132) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 300.80 260.85 Td (71) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.80 260.85 Td (224) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.80 260.85 Td (174) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 260.85 Td (50) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 260.85 Td (42) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 247.83 Td (Capitalized) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 234.85 Td (Acquisition fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 238.80 234.85 Td (108) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.80 234.85 Td (9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.80 234.85 Td (215) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.80 234.85 Td (25) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 234.85 Td (1) Tj ET Q q 0 0 0 rg BT 476.80 234.85 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 234.85 Td (76) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 221.85 Td (Asset management fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 242.80 221.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 300.80 221.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.80 221.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.80 221.85 Td (67) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 221.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 221.85 Td (—) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 208.83 Td (Additional Paid-in Capital) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 195.85 Td (Sales commissions) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 238.80 195.85 Td (223) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 296.80 195.85 Td (759) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.80 195.85 Td (424) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.80 195.85 Td (1,761) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 195.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 195.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 182.85 Td (Dealer manager fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 238.80 182.85 Td (136) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 296.80 182.85 Td (437) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.80 182.85 Td (245) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.80 182.85 Td (1,047) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 182.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 182.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 169.85 Td (Stockholder servicing fees ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 139.36 173.48 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 246.80 169.85 Td (3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 296.80 169.85 Td (432) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.80 169.85 Td (16) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.80 169.85 Td (536) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 169.85 Td (180) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 169.85 Td (680) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 156.85 Td (Reimbursable other of) Tj ET Q q 0 0 0 rg BT 123.89 156.85 Td (fering costs ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 162.99 160.48 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 242.80 156.85 Td (68) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 296.80 156.85 Td (185) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.80 156.85 Td (129) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.80 156.85 Td (496) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.80 156.85 Td (1,171) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 156.85 Td (1,042) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.50 143.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 232.80 143.85 Td (1,656) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 260.50 143.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 290.80 143.85 Td (2,470) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.50 143.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 348.80 143.85 Td (3,173) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 376.50 143.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.80 143.85 Td (5,187) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 434.50 143.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.80 143.85 Td (1,535) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.50 143.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 143.85 Td (1,862) Tj ET Q BT /F1 10.00 Tf ET 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 623.13 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 619.50 Td (Reimbursable operating expenses primarily consists of internal audit personnel costs, accounting software and cyber) Tj ET Q q 0 0 0 rg BT 429.48 619.50 Td (-security related expenses incurred by ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 609.90 Td (the ) Tj ET Q q 0 0 0 rg BT 60.83 609.90 Td (Advisor under the ) Tj ET Q q 0 0 0 rg BT 120.16 609.90 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 151.49 609.90 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 190.89 609.90 Td (The Company has reimbursed the ) Tj ET Q q 0 0 0 rg BT 300.42 609.90 Td (Advisor for the Company’) Tj ET Q q 0 0 0 rg BT 384.63 609.90 Td (s allocable portion of the salaries, benefits and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 600.30 Td (overhead of internal audit department personnel providing services to the Company) Tj ET Q q 0 0 0 rg BT 316.46 600.30 Td (. ) Tj ET Q q 0 0 0 rg BT 320.31 600.30 Td (These amounts totaled ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 394.29 600.30 Td ($0.1 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.41 600.30 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 448.96 600.30 Td ($0.2 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.07 600.30 Td ( for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 513.17 600.30 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 529.16 600.30 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.71 600.30 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.05 600.30 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 590.70 Td (months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.16 590.70 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 140.82 590.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 182.95 590.70 Td (, and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 200.50 590.70 Td ($0.1 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.62 590.70 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.17 590.70 Td ($0.2 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 294.28 590.70 Td ( for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.38 590.70 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 335.37 590.70 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 350.92 590.70 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.26 590.70 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.92 590.70 Td (June 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.58 590.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 495.71 590.70 Td (, and were the only ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 581.10 Td (employee costs reimbursed under the ) Tj ET Q q 0 0 0 rg BT 170.13 581.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 201.47 581.10 Td (Agreement for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 262.11 581.10 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 278.10 581.10 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.65 581.10 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.98 581.10 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.64 581.10 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.31 581.10 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.86 581.10 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.86 581.10 Td (. ) Tj ET Q q 0 0 0 rg BT 431.71 581.10 Td (The ) Tj ET Q q 0 0 0 rg BT 445.71 581.10 Td (Advisor may seek reimbursement ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 571.50 Td (for certain other employee costs under the ) Tj ET Q q 0 0 0 rg BT 185.67 571.50 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 217.01 571.50 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 256.40 571.50 Td (The Company will not reimburse for employee costs in connection with services for which the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 561.90 Td (Advisor earns acquisition or origination fees or disposition fees \(other than reimbursement of travel and communication expenses\) or for the salaries or benefits ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 552.30 Td (the ) Tj ET Q q 0 0 0 rg BT 60.83 552.30 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 112.90 552.30 Td (filiates may pay to the Company’) Tj ET Q q 0 0 0 rg BT 219.32 552.30 Td (s executive of) Tj ET Q q 0 0 0 rg BT 263.61 552.30 Td (ficers. In addition to the amounts above, the Company reimburses the ) Tj ET Q q 0 0 0 rg BT 487.78 552.30 Td (Advisor for certain of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 542.70 Td (the Company’) Tj ET Q q 0 0 0 rg BT 94.61 542.70 Td (s direct costs incurred from third parties that were initially paid by the ) Tj ET Q q 0 0 0 rg BT 320.10 542.70 Td (Advisor on behalf of the Company) Tj ET Q q 0 0 0 rg BT 430.89 542.70 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 533.73 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 530.10 Td (Reflects the estimated amount of the stockholder servicing fee payable based on the terms of the Class ) Tj ET Q q 0 0 0 rg BT 386.62 530.10 Td (T) Tj ET Q q 0 0 0 rg BT 391.36 530.10 Td ( Shares.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 521.13 Td (\(3\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 517.50 Td (See “Other Of) Tj ET Q q 0 0 0 rg BT 102.48 517.50 Td (fering Costs” below) Tj ET Q q 0 0 0 rg BT 165.94 517.50 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 493.50 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 493.50 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.22 493.50 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.04 493.50 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.87 493.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.31 493.50 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.31 493.50 Td (, the ) Tj ET Q q 0 0 0 rg BT 304.48 493.50 Td (Advisor reimbursed the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.79 493.50 Td ($35,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.29 493.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.72 493.50 Td ($21,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.22 493.50 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.50 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 481.50 Td (, for a property insurance rebate.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 463.50 Td (Other) Tj ET Q q 0 0 0 rg BT 74.87 463.50 Td ( Offering Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 445.50 Td (Or) Tj ET Q q 0 0 0 rg BT 82.37 445.50 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 151.61 445.50 Td (fering costs \(other than selling commissions, dealer manager fees and the stockholder servicing fee\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.50 Td (the Company may be paid by the ) Tj ET Q q 0 0 0 rg BT 183.64 433.50 Td (Advisor) Tj ET Q q 0 0 0 rg BT 215.46 433.50 Td (, the Dealer Manager or their af) Tj ET Q q 0 0 0 rg BT 341.60 433.50 Td (filiates on behalf of the Company or may be paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.50 Td (directly by the Company) Tj ET Q q 0 0 0 rg BT 148.00 421.50 Td (. ) Tj ET Q q 0 0 0 rg BT 155.32 421.50 Td (These of) Tj ET Q q 0 0 0 rg BT 189.84 421.50 Td (fering costs include all expenses incurred by the Company in connection with the Private ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.50 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 409.50 Td (fering and the Public Of) Tj ET Q q 0 0 0 rg BT 156.33 409.50 Td (fering. Or) Tj ET Q q 0 0 0 rg BT 198.08 409.50 Td (ganization costs include all expenses incurred by the Company in connection with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.50 Td (formation of the Company) Tj ET Q q 0 0 0 rg BT 155.22 397.50 Td (, including but not limited to legal fees and other costs to incorporate the Company) Tj ET Q q 0 0 0 rg BT 486.44 397.50 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 379.50 Td (The Company recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.91 379.50 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.80 379.50 Td ( of of) Tj ET Q q 0 0 0 rg BT 239.28 379.50 Td (fering costs \(other than selling commissions and dealer manager fees\) related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.50 Td (the Private Of) Tj ET Q q 0 0 0 rg BT 105.41 367.50 Td (fering, all of which was initially paid by the ) Tj ET Q q 0 0 0 rg BT 282.60 367.50 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 347.68 367.50 Td (filiates on behalf of the Company and subsequently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.50 Td (reimbursed by the Company) Tj ET Q q 0 0 0 rg BT 162.44 355.50 Td (. In addition, the Company paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.86 355.50 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.75 355.50 Td ( in selling commissions and dealer manager fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.50 Td (related to the Private Of) Tj ET Q q 0 0 0 rg BT 145.39 343.50 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 325.50 Td (During the Public Of) Tj ET Q q 0 0 0 rg BT 155.97 325.50 Td (fering, pursuant to the ) Tj ET Q q 0 0 0 rg BT 246.23 325.50 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 285.40 325.50 Td (Agreement and the Dealer Manager ) Tj ET Q q 0 0 0 rg BT 430.61 325.50 Td (Agreement, the Company is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.50 Td (obligated to reimburse the ) Tj ET Q q 0 0 0 rg BT 156.14 313.50 Td (Advisor) Tj ET Q q 0 0 0 rg BT 187.96 313.50 Td (, the Dealer Manager or their af) Tj ET Q q 0 0 0 rg BT 314.10 313.50 Td (filiates, as applicable, for or) Tj ET Q q 0 0 0 rg BT 425.54 313.50 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 517.83 313.50 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.50 Td (costs paid by them on behalf of the Company) Tj ET Q q 0 0 0 rg BT 230.48 301.50 Td (, provided that no reimbursements made by the Company to the ) Tj ET Q q 0 0 0 rg BT 487.10 301.50 Td (Advisor or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.50 Td (Dealer Manager may cause total or) Tj ET Q q 0 0 0 rg BT 189.53 289.50 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 258.77 289.50 Td (fering expenses incurred by the Company in connection with the Public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.50 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 277.50 Td (fering \(including selling commissions, dealer manager fees and the stockholder servicing fee\) to exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.22 277.50 Td (15%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.55 277.50 Td ( of the aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.50 Td (gross proceeds from the Public Of) Tj ET Q q 0 0 0 rg BT 186.23 265.50 Td (fering as of the date of reimbursement. In addition, the ) Tj ET Q q 0 0 0 rg BT 406.72 265.50 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 477.92 265.50 Td (filiates will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.50 Td (reimburse the Company to the extent that the or) Tj ET Q q 0 0 0 rg BT 240.38 253.50 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 332.66 253.50 Td (fering expenses \(which exclude selling commissions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.50 Td (dealer manager fees and stockholder servicing fees\) paid directly or reimbursed by the Company in connection with the primary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.50 Td (portion of the Public Of) Tj ET Q q 0 0 0 rg BT 144.86 229.50 Td (fering, regardless of when incurred, exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.33 229.50 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.17 229.50 Td ( of gross of) Tj ET Q q 0 0 0 rg BT 386.26 229.50 Td (fering proceeds from the primary portion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.50 Td (the Public Of) Tj ET Q q 0 0 0 rg BT 102.64 217.50 Td (fering. ) Tj ET Q q 0 0 0 rg BT 131.34 217.50 Td (The ) Tj ET Q q 0 0 0 rg BT 148.84 217.50 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 220.03 217.50 Td (filiates will be responsible for any or) Tj ET Q q 0 0 0 rg BT 367.03 217.50 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 459.32 217.50 Td (fering expenses related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.50 Td (the primary portion of the Public Of) Tj ET Q q 0 0 0 rg BT 193.73 205.50 Td (fering to the extent they exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.01 205.50 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.84 205.50 Td ( of gross proceeds from the primary portion of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.50 Td (Public Of) Tj ET Q q 0 0 0 rg BT 87.93 193.50 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 175.50 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 175.50 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.77 175.50 Td (, the ) Tj ET Q q 0 0 0 rg BT 183.93 175.50 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 255.13 175.50 Td (filiates had incurred or) Tj ET Q q 0 0 0 rg BT 345.75 175.50 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 438.03 175.50 Td (fering costs \(which exclude ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.50 Td (selling commissions dealer manager fees and stockholder servicing fees\) on the Company’) Tj ET Q q 0 0 0 rg BT 411.90 163.50 Td (s behalf in connection with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.50 Td (Public Of) Tj ET Q q 0 0 0 rg BT 87.93 151.50 Td (fering of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.39 151.50 Td ($10.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.29 151.50 Td (. ) Tj ET Q q 0 0 0 rg BT 246.23 151.50 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.68 151.50 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.51 151.50 Td (, the Company had recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.02 151.50 Td ($14.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.92 151.50 Td ( in selling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.50 Td (commissions and dealer manager fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.55 139.50 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.44 139.50 Td ( of stockholder servicing fees. ) Tj ET Q q 0 0 0 rg BT 391.63 139.50 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.07 139.50 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.90 139.50 Td (, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.50 Td (recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.98 127.50 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.87 127.50 Td ( of other or) Tj ET Q q 0 0 0 rg BT 180.39 127.50 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 249.63 127.50 Td (fering expenses, which amounts represent the Company’) Tj ET Q q 0 0 0 rg BT 475.96 127.50 Td (s maximum liability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.50 Td (for or) Tj ET Q q 0 0 0 rg BT 71.81 115.50 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 164.09 115.50 Td (fering costs as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.63 115.50 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.46 115.50 Td ( based on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.45 115.50 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.28 115.50 Td ( limitation described above.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 97.50 Td (In addition, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.26 97.50 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.09 97.50 Td (, the ) Tj ET Q q 0 0 0 rg BT 217.26 97.50 Td (Advisor had incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.73 97.50 Td ($31,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.23 97.50 Td ( in or) Tj ET Q q 0 0 0 rg BT 358.16 97.50 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 427.40 97.50 Td (fering costs on behalf of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 85.50 Td (Company in connection with a proposed follow-on of) Tj ET Q q 0 0 0 rg BT 264.00 85.50 Td (fering the Company filed with the SEC on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.09 85.50 Td (August 10, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.48 85.50 Td (. ) Tj ET Q q 0 0 0 rg BT 508.43 85.50 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.50 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 73.50 Td (, the Company had not commenced the follow-on of) Tj ET Q q 0 0 0 rg BT 314.27 73.50 Td (fering and therefore had not recorded any of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 61.50 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 61.50 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 126.89 61.50 Td (fering expenses as they are subject to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.94 61.50 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.77 61.50 Td ( limitation described above. ) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (27) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (12. ) Tj ET Q q 0 0 0 rg BT 72.00 632.25 Td (COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 153.95 632.25 Td (AND CONTINGENCIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (Management ) Tj ET Q q 0 0 0 rg BT 107.55 614.25 Td (Agr) Tj ET Q q 0 0 0 rg BT 124.03 614.25 Td (eement) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 596.25 Td (Springmaid Beach Resort) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 581.25 Td (The consolidated joint venture entity through which the Company leases the operations for Springmaid Beach Resort has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.25 Td (entered into a management agreement with Doubletree Management LLC, an independent third-party hotel operator \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.25 Td (“Operator”\) pursuant to which the Operator will manage and operate the Springmaid Beach Resort. ) Tj ET Q q 0 0 0 rg BT 449.46 557.25 Td (The hotel was branded a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.25 Td (DoubleT) Tj ET Q q 0 0 0 rg BT 84.70 545.25 Td (ree by Hilton in September 2016 \(the “Brand Commencement Date”\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 527.25 Td (The management agreement expires on December 31 of the 20th full year following the Brand Commencement Date. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.25 Td (Upon mutual agreement, the parties may extend the term of the agreement for two successive periods of five years each. If an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.25 Td (event of default occurs and continues beyond any applicable notice and cure periods set forth in the management agreement, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (non-defaulting party generally has, among other remedies, the option of terminating the management agreement upon written ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (notice to the defaulting party with no termination fee payable to Doubletree. In addition, the Company has the right to terminate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (the management agreement without the payment of a termination fee if Doubletree fails to achieve certain criteria relating to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.25 Td (performance of the hotel for any two consecutive years following the Brand Commencement Date. Under certain circumstances ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.25 Td (following a casualty or condemnation event, either party may terminate the management agreement provided Doubletree ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.25 Td (receives a termination fee an amount equal to two years of the base fee. ) Tj ET Q q 0 0 0 rg BT 340.31 431.25 Td (The Company is permitted to terminate the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.25 Td (management agreement upon a sale, lease or other transfer of the Springmaid Beach Resort any time so long as the buyer is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.25 Td (approved for) Tj ET Q q 0 0 0 rg BT 100.47 407.25 Td (, and enters into a DoubleT) Tj ET Q q 0 0 0 rg BT 208.97 407.25 Td (ree by Hilton franchise agreement for the balance of the agreement’) Tj ET Q q 0 0 0 rg BT 479.40 407.25 Td (s term. Finally) Tj ET Q q 0 0 0 rg BT 536.80 407.25 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.25 Td (Company is restricted in its ability to assign the management agreement upon a sale, lease or other transfer the Springmaid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.25 Td (Beach Resort unless the transferee is approved by Doubletree to assume the management agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 365.25 Td (Pursuant to the management agreement the Operator receives the following fees:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 347.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 347.25 Td (a base fee, which is a percentage of total operating revenue that starts at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.09 347.25 Td (2.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.92 347.25 Td ( and increases to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.79 347.25 Td (2.75%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.62 347.25 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 335.25 Td (second year following the Brand Commencement Date and further increases in the third year following the Brand ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 323.25 Td (Commencement Date and thereafter to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.93 323.25 Td (3.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.76 323.25 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 308.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 308.25 Td (a campground area management fee, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.97 308.25 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.30 308.25 Td ( of any campground revenue;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 293.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 293.25 Td (an incentive fee, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.90 293.25 Td (15%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.23 293.25 Td ( of operating cash flow \(after deduction for capital renewals reserve and the joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 281.25 Td (venture owner) Tj ET Q q 0 0 0 rg BT 161.35 281.25 Td (’) Tj ET Q q 0 0 0 rg BT 164.13 281.25 Td (s priority) Tj ET Q q 0 0 0 rg BT 199.86 281.25 Td (, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.97 281.25 Td (12%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.30 281.25 Td ( of the joint venture owner) Tj ET Q q 0 0 0 rg BT 366.03 281.25 Td (’) Tj ET Q q 0 0 0 rg BT 368.81 281.25 Td (s total investment\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 266.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 266.25 Td (an additional services fee in the amount reasonably determined by the Operator from time to time; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 251.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 251.25 Td (a brand services fee in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.44 251.25 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.77 251.25 Td ( of total rooms revenue, and an other brand services fee in an amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 239.25 Td (determined by the Operator from time to time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 218.25 Td (The management agreement contains specific standards for the operation and maintenance of the hotel, which allows the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (Operator to maintain uniformity in the system created by the Operator) Tj ET Q q 0 0 0 rg BT 330.34 206.25 Td (’) Tj ET Q q 0 0 0 rg BT 333.12 206.25 Td (s franchise. Such standards generally regulate the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (appearance of the hotel, quality and type of goods and services of) Tj ET Q q 0 0 0 rg BT 311.45 194.25 Td (fered, signage and protection of trademarks. Compliance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.25 Td (the management agreement will require the Company to make significant expenditures for capital improvements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 164.25 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 164.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.03 164.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.47 164.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.14 164.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.97 164.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.80 164.25 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.71 164.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.61 164.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.04 164.25 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.94 164.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 553.60 164.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (of fees related to the management agreement, which are included in hotel expenses on the accompanying consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.25 Td (statements of operations. During each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.89 140.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.88 140.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.31 140.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.98 140.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.81 140.25 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.64 140.25 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.56 140.25 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.45 140.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.25 Td (fees related to the management agreement, which are included in hotel expenses on the accompanying consolidated statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.25 Td (of operations. ) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (28) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (Q&C Hotel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.89 632.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 617.10 Td (A) Tj ET Q q 0 0 0 rg BT 78.67 617.10 Td ( wholly owned subsidiary of the joint venture through which the Company leases the operations of the Q&C Hotel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.10 Td (\(“Q&C Hotel Operations”\) has entered into a management agreement with Encore Hospitality) Tj ET Q q 0 0 0 rg BT 425.67 605.10 Td (, LLC \(“Encore Hospitality”\), an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 593.10 Td (filiate of the joint venture partner) Tj ET Q q 0 0 0 rg BT 189.69 593.10 Td (, pursuant to which Encore Hospitality will manage and operate the Q&C Hotel. ) Tj ET Q q 0 0 0 rg BT 513.04 593.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.10 Td (management agreement expires on December 17, 2035. Subject to certain conditions, Encore Hospitality may extend the term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.10 Td (of the agreement for a period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.16 569.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.71 569.10 Td ( years. Pursuant to the management agreement Encore Hospitality will receive a base fee, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.10 Td (which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.61 557.10 Td (4.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.44 557.10 Td ( of gross revenue \(as defined in the management agreement\). During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.27 557.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.26 557.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.70 557.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.37 557.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.19 557.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 545.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.42 545.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.31 545.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.75 545.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.64 545.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 336.30 545.10 Td (, of fees related to the management agreement, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.10 Td (are included in hotel expenses on the accompanying consolidated statements of operations. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.33 533.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.31 533.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.75 533.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.42 533.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 521.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 521.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.63 521.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.52 521.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.96 521.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.85 521.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 398.51 521.10 Td (, of fees related to the management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.10 Td (agreement, which are included in hotel expenses on the accompanying consolidated statements of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 491.10 Td (Q&C Hotel Operations has also entered into a franchise agreement with Marriott International \(“Marriott”\) pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (which Marriott has granted Q&C Hotel Operations a limited, non-exclusive license to establish and operate the Q&C Hotel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (using certain of Marriott’) Tj ET Q q 0 0 0 rg BT 150.31 467.10 Td (s proprietary marks and systems and the hotel was branded as a Marriott ) Tj ET Q q 0 0 0 rg BT 441.62 467.10 Td (Autograph Collection hotel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (on May 25, 2016. ) Tj ET Q q 0 0 0 rg BT 122.65 455.10 Td (The franchise agreement will expire on May 25, 2041. Pursuant to the franchise agreement, Q&C Hotel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (Operations pays Marriott a monthly franchise fee equal to a percent of gross room sales on a sliding scale that is initially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.37 443.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.70 443.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (and increases to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.86 431.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.19 431.10 Td ( on May 25, 2019 and a monthly marketing fund contribution fee equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.63 431.10 Td (1.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.46 431.10 Td ( of the Q&C Hotel’) Tj ET Q q 0 0 0 rg BT 524.67 431.10 Td (s gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (room sales. In addition, the franchise agreement requires the maintenance of a reserve account to fund all renovations at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (hotel based on a percentage of gross revenues which starts at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.25 407.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.58 407.10 Td ( of gross revenues and increases to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.92 407.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.25 407.10 Td ( of gross revenues on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (May 25, 2019. Q&C Hotel Operations is also responsible for the payment of certain other fees, char) Tj ET Q q 0 0 0 rg BT 448.93 395.10 Td (ges and costs as set forth in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (the agreement. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.40 383.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.39 383.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.83 383.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.50 383.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.32 383.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.15 383.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.07 383.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.96 383.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.40 383.10 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.29 383.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 371.10 Td (, of fees related to the Marriott franchise agreement. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.45 371.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.43 371.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.87 371.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.54 371.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.36 371.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.19 371.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.70 359.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.59 359.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.03 359.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.92 359.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 296.58 359.10 Td (, of fees related to the Marriott franchise agreement. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 341.10 Td (In addition, in connection with the execution of the franchise agreement, SOR US Properties II is providing an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (unconditional guarantee that all Q&C Hotel Operations’) Tj ET Q q 0 0 0 rg BT 273.69 329.10 Td ( obligations under the franchise agreement will be punctually paid and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (performed. Finally) Tj ET Q q 0 0 0 rg BT 123.83 317.10 Td (, certain transfers of the Q&C Hotel or an ownership interest therein are subject to a notice and consent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (requirement, and the franchise agreement further provides Marriott with a right of first refusal with respect to a sale of the hotel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (to a competitor of Marriott.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (Lease Obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 257.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 257.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 257.10 Td (, the Company had leasehold interests expiring on various expiration dates between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.57 257.10 Td (July 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.74 257.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (21) Tj ET Q q 0 0 0 rg BT 59.13 245.10 Td (14. Future minimum lease payments owed by the Company under the capital leases as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.38 245.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.21 245.10 Td ( are as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 216.60 439.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 216.60 74.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 194.60 439.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 194.60 74.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 172.60 439.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 172.60 74.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 150.60 439.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 150.60 74.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 128.60 439.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 128.60 74.00 -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 489 150.60000000000002 m 563 150.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 150.60000000000002 m 563 150.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 128.60000000000002 m 563 128.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 118.60000000000002 m 563 118.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 116.60000000000002 m 563 116.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 208.55 Td (July 1, 2018 through December 31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.50 208.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 208.55 Td (240) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 197.55 Td (2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 197.55 Td (635) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 186.55 Td (2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 186.55 Td (680) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 175.55 Td (2021) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 175.55 Td (735) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 164.55 Td (2022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 164.55 Td (935) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 153.55 Td (Thereafter) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 153.55 Td (53,841) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 142.55 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 142.55 Td (otal expected minimum lease obligations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 142.55 Td (57,066) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 131.55 Td (Less: ) Tj ET Q q 0 0 0 rg BT 70.95 131.55 Td (Amount representing interest ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 166.25 135.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 535.10 131.55 Td (\(48,752) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 131.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 120.55 Td (Present value of net minimum lease payments ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 201.57 124.18 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.50 120.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 120.55 Td (8,314) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 97.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 93.50 Td ( Interest includes the amount necessary to reduce the total expected minimum lease obligations to present value calculated at the Company’) Tj ET Q q 0 0 0 rg BT 501.64 93.50 Td (s incremental ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 83.90 Td (borrowing rate at acquisition.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 74.92 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 71.30 Td ( ) Tj ET Q q 0 0 0 rg BT 57.42 71.30 Td (The present value of net minimum lease payments are presented in other liabilities in the accompanying consolidated balance sheets.) 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Economic Dependency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (The Company is dependent on the ) Tj ET Q q 0 0 0 rg BT 210.86 614.25 Td (Advisor and the Dealer Manager for certain services that are essential to the Company) Tj ET Q q 0 0 0 rg BT 555.36 614.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (including the sale of the Company’) Tj ET Q q 0 0 0 rg BT 189.75 602.25 Td (s shares of common stock; the identification, evaluation, negotiation, origination, acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (and disposition of investments; management of the daily operations of the Company’) Tj ET Q q 0 0 0 rg BT 389.71 590.25 Td (s investment portfolio; and other general ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (and administrative responsibilities. In the event that these companies are unable to provide the respective services, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (Company will be required to obtain such services from other sources.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (Envir) Tj ET Q q 0 0 0 rg BT 73.77 548.25 Td (onmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 530.25 Td (As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (Although there can be no assurance, the Company is not aware of any environmental liability that could have a material adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 506.25 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 292.86 506.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.69 506.25 Td (. However) Tj ET Q q 0 0 0 rg BT 392.44 506.25 Td (, changes in applicable environmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (laws and regulations, the uses and conditions of properties in the vicinity of the Company’) Tj ET Q q 0 0 0 rg BT 410.82 494.25 Td (s properties, the activities of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (future environmental liabilities. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 452.25 Td (Legal Matters) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 434.25 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 49.50 422.25 Td (Management is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.13 410.25 Td (fect on the Company’) Tj ET Q q 0 0 0 rg BT 176.49 410.25 Td (s results of operations or financial condition, which would require accrual or disclosure of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (contingency and the possible range of loss. ) Tj ET Q q 0 0 0 rg BT 225.85 398.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 275.75 398.25 Td (, the Company has not recorded any loss contingencies related to legal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (proceedings in which the potential loss is deemed to be remote. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (13. ) Tj ET Q q 0 0 0 rg BT 72.00 362.25 Td (SUBSEQUENT) Tj ET Q q 0 0 0 rg BT 139.07 362.25 Td ( EVENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 344.25 Td (The Company evaluates subsequent events up until the date the consolidated financial statements are issued.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (Status of the Offering) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 308.25 Td (The Company commenced the Public Of) Tj ET Q q 0 0 0 rg BT 235.39 308.25 Td (fering on ) Tj ET Q q 0 0 0 rg BT 273.71 308.25 Td (August 12, 2014 and broke escrow on January 7, 2015. ) Tj ET Q q 0 0 0 rg BT 499.05 308.25 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (ceased of) Tj ET Q q 0 0 0 rg BT 86.79 296.25 Td (fering shares of common stock in the primary of) Tj ET Q q 0 0 0 rg BT 279.90 296.25 Td (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.77 296.25 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.94 296.25 Td ( and is continuing to process subscriptions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (Subscriptions must be dated on or before July 31, 2018, and subscriptions and all related documents and funds must be received ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.25 Td (by the Company in good order no later than September 28, 2018. ) Tj ET Q q 0 0 0 rg BT 311.67 272.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.56 272.25 Td (August 7, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.96 272.25 Td (, the Company had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.17 272.25 Td (12,446,971) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.17 272.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.25 Td (1) Tj ET Q q 0 0 0 rg BT 54.13 260.25 Td (1,615,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.13 260.25 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 158.57 260.25 Td (A) Tj ET Q q 0 0 0 rg BT 165.24 260.25 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 208.67 260.25 Td (T) Tj ET Q q 0 0 0 rg BT 214.59 260.25 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 328.36 260.25 Td (, in the Public Of) Tj ET Q q 0 0 0 rg BT 396.78 260.25 Td (fering for aggregate gross of) Tj ET Q q 0 0 0 rg BT 510.44 260.25 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.25 Td (proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.37 248.25 Td ($233.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.26 248.25 Td (. Included in these amounts were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.38 248.25 Td (531,570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.88 248.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.32 248.25 Td (162,456) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.82 248.25 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 440.26 248.25 Td (A) Tj ET Q q 0 0 0 rg BT 446.93 248.25 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 490.36 248.25 Td (T) Tj ET Q q 0 0 0 rg BT 496.29 248.25 Td ( common stock, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 236.25 Td (, sold under the Company’) Tj ET Q q 0 0 0 rg BT 202.98 236.25 Td (s dividend reinvestment plan for aggregate gross of) Tj ET Q q 0 0 0 rg BT 408.02 236.25 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.26 236.25 Td ($6.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.16 236.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 218.25 Td (Cash Distributions Paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 200.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 200.25 Td (July 3, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.39 200.25 Td (, the Company paid distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.55 200.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.44 200.25 Td ( related to cash distributions on the outstanding shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.25 Td (the common stock based on daily record dates for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.53 188.25 Td (June 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.36 188.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.47 188.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.30 188.25 Td (. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.47 188.25 Td (August 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.86 188.25 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (Company paid distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.94 176.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.83 176.25 Td ( related to cash distributions on the outstanding shares of the common stock based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.25 Td (on daily record dates for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.44 164.25 Td (July 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.61 164.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.72 164.25 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.89 164.25 Td (. Distributions for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.48 164.25 Td (June 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.31 164.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.11 152.25 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.28 152.25 Td ( were calculated based on stockholders of record each day during these periods at a rate of \(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.25 Td ($0.00052548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.00 140.25 Td ( per share per day less \(ii\) the applicable daily stockholder servicing fees accrued for and allocable to any class of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.25 Td (common stock, divided by the number of shares of common stock of such class outstanding as of the close of business on each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.25 Td (respective record date. ) Tj ET Q endstream endobj 63 0 obj <>] /Rotate 0 /Contents 64 0 R>> endobj 64 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 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 196.35 712.60 Td (KBS STRA) Tj ET Q q 0 0 0 rg BT 244.79 712.60 Td (TEGIC OPPOR) Tj ET Q q 0 0 0 rg BT 314.17 712.60 Td (TUNITY) Tj ET Q q 0 0 0 rg BT 352.69 712.60 Td ( REIT) Tj ET Q q 0 0 0 rg BT 379.47 712.60 Td ( II, INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 107.50 694.60 Td (CONDENSED NOTES ) Tj ET Q q 0 0 0 rg BT 209.01 694.60 Td (T) Tj ET Q q 0 0 0 rg BT 215.50 694.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 285.60 694.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 364.78 694.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 378.77 694.60 Td (A) Tj ET Q q 0 0 0 rg BT 385.25 694.60 Td (TEMENTS \(CONTINUED\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 676.60 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Stock Dividends Issued) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 614.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 614.25 Td (May 10, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.05 614.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 203.43 614.25 Td (s board of directors authorized stock dividends for the month of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.87 614.25 Td (June 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.70 614.25 Td (, in the amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 602.25 Td (0.001667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 602.25 Td ( shares of each class of the Company’) Tj ET Q q 0 0 0 rg BT 248.62 602.25 Td (s common stock on each outstanding share of common stock issuable to all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (common stockholders of record as of the close of business on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.05 590.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.88 590.25 Td (. ) Tj ET Q q 0 0 0 rg BT 361.20 590.25 Td (The Company issued the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.85 590.25 Td (June 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.68 590.25 Td ( stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (dividend, consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.38 578.25 Td (48,994) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.88 578.25 Td ( shares, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.87 578.25 Td (July 5, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.04 578.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 560.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 560.25 Td (May 10, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.05 560.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 203.43 560.25 Td (s board of directors authorized stock dividends for the month of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.87 560.25 Td (July 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.04 560.25 Td (, in the amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 548.25 Td (0.001667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 548.25 Td ( shares of each class of the Company’) Tj ET Q q 0 0 0 rg BT 248.62 548.25 Td (s common stock on each outstanding share of common stock issuable to all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (common stockholders of record as of the close of business on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.05 536.25 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.22 536.25 Td (. ) Tj ET Q q 0 0 0 rg BT 359.54 536.25 Td (The Company issued the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.19 536.25 Td (July 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.36 536.25 Td ( stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (dividends, consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.27 524.25 Td (49,556) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.77 524.25 Td ( shares, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.21 524.25 Td (August 2, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.60 524.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (Distributions Declar) Tj ET Q q 0 0 0 rg BT 136.26 506.25 Td (ed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 488.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 488.25 Td (July 13, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.39 488.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 201.77 488.25 Td (s board of directors declared cash distributions on the outstanding shares of all classes of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.25 Td (its common stock based on daily record dates for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.21 476.25 Td (August 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.60 476.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.16 476.25 Td (August 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.55 476.25 Td (, which the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.25 Td (expects to pay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.48 464.25 Td (September 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.74 464.25 Td (. Investors may choose to receive cash distributions or purchase additional shares through the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.25 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 452.25 Td (s dividend reinvestment plan. Distributions for these periods will be calculated based on stockholders of record each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.25 Td (day during this period at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.01 440.25 Td ($0.00052548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.51 440.25 Td ( per share per day) Tj ET Q q 0 0 0 rg BT 307.94 440.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 422.25 Td (Also on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.39 422.25 Td (July 13, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.56 422.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 220.94 422.25 Td (s board of directors authorized a stock dividend for the month of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.88 422.25 Td (August 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.27 422.25 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 410.25 Td (0.001667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.33 410.25 Td ( shares of common stock on each outstanding share of common stock, issuable to all common stockholders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (of record as of the close of business on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.96 398.25 Td (August 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.35 398.25 Td (. Stock dividends are issued in the same class of shares as the shares for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (which such stockholder received the stock dividend. ) Tj ET Q q 0 0 0 rg BT 260.93 386.25 Td (The Company expects to issue this stock dividend in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.95 386.25 Td (September 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.22 386.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 368.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.67 368.25 Td (August 9, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.06 368.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 208.44 368.25 Td (s board of directors declared cash distributions on the outstanding shares of all classes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (of its common stock based on daily record dates for the periods from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.48 356.25 Td (September 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.75 356.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.86 356.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.12 356.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.25 Td (October 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.21 344.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.32 344.25 Td (October 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.02 344.25 Td (, which the Company expects to pay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.04 344.25 Td (October 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.75 344.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.19 344.25 Td (November 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.90 344.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 332.25 Td (. Investors may choose to receive cash distributions or purchase additional shares through the Company’) Tj ET Q q 0 0 0 rg BT 514.56 332.25 Td (s dividend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (reinvestment plan. Distributions for these periods will be calculated based on stockholders of record each day during these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (periods at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.41 308.25 Td ($0.00052548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.91 308.25 Td ( per share per day) Tj ET Q q 0 0 0 rg BT 249.33 308.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 290.25 Td (Also on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.84 290.25 Td (August 9, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.23 290.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 227.61 290.25 Td (s board of directors authorized a stock dividend for the months of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.99 290.25 Td (September 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.25 290.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 278.25 Td (October 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.15 278.25 Td ( in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.97 278.25 Td (0.001667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.47 278.25 Td ( shares of common stock on each outstanding share of common stock, issuable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.25 Td (all common stockholders of record as of the close of business on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.55 266.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.81 266.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.25 266.25 Td (October 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.96 266.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 532.62 266.25 Td (. Stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.25 Td (dividends are issued in the same class of shares as the shares for which such stockholder received the stock dividend. ) Tj ET Q q 0 0 0 rg BT 520.02 254.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.25 Td (Company expects to issue these stock dividends in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.47 242.25 Td (October 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.18 242.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.62 242.25 Td (November 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.32 242.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 445.98 242.25 Td (.) Tj ET Q endstream endobj 65 0 obj <>] /Rotate 0 /Contents 66 0 R>> endobj 66 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management'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 (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (The following discussion and analysis should be read in conjunction with the accompanying financial statements of KBS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 160.96 692.10 Td ( II, Inc. and the notes thereto. ) Tj ET Q q 0 0 0 rg BT 282.87 692.10 Td (As used herein, the terms “we,” “our” and “us” refer to KBS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 160.96 680.10 Td ( II, Inc., a Maryland corporation, and, as required by context, KBS Strategic Opportunity Limited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (Partnership II, a Delaware limited partnership, which we refer to as the “Operating Partnership,” and to their subsidiaries. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (Forward-Looking Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 Td (Certain statements included in this Quarterly Report on Form 10-Q are forward-looking statements. ) Tj ET Q q 0 0 0 rg BT 476.83 632.10 Td (Those statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (include statements regarding the intent, belief or current expectations of KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 473.09 620.10 Td ( II, Inc. and members ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (of words such as “may) Tj ET Q q 0 0 0 rg BT 139.94 596.10 Td (,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should” or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (similar expressions. ) Tj ET Q q 0 0 0 rg BT 133.38 584.10 Td (Actual results may dif) Tj ET Q q 0 0 0 rg BT 221.79 584.10 Td (fer materially from those contemplated by such forward-looking statements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (Further) Tj ET Q q 0 0 0 rg BT 78.54 572.10 Td (, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (operating results over time, unless required by law) Tj ET Q q 0 0 0 rg BT 251.02 548.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 530.10 Td (The following are some of the risks and uncertainties, although not all of the risks and uncertainties, that could cause our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (actual results to dif) Tj ET Q q 0 0 0 rg BT 125.69 518.10 Td (fer materially from those presented in our forward-looking statements: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 500.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 500.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 500.10 Td (e have a limited operating history and as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.86 500.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.69 500.10 Td (, our total assets were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.55 500.10 Td ($588.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.45 500.10 Td (. ) Tj ET Q q 0 0 0 rg BT 484.58 500.10 Td (Y) Tj ET Q q 0 0 0 rg BT 490.80 500.10 Td (ou will not have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 488.10 Td (an opportunity to evaluate our investments before we make them, making our future operations speculative. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 473.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 473.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 473.10 Td (e depend on our advisor to identify suitable investments and conduct our operations and our dealer manager to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 461.10 Td (conduct our of) Tj ET Q q 0 0 0 rg BT 148.13 461.10 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 446.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 446.10 Td (All of our executive of) Tj ET Q q 0 0 0 rg BT 180.90 446.10 Td (ficers, our af) Tj ET Q q 0 0 0 rg BT 231.52 446.10 Td (filiated directors and other key real estate and debt finance professionals are also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 434.10 Td (of) Tj ET Q q 0 0 0 rg BT 98.15 434.10 Td (ficers, directors, managers, key professionals and/or holders of a direct or indirect controlling interest in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 422.10 Td (advisor) Tj ET Q q 0 0 0 rg BT 119.04 422.10 Td (, our dealer manager and other KBS-af) Tj ET Q q 0 0 0 rg BT 274.07 422.10 Td (filiated entities. ) Tj ET Q q 0 0 0 rg BT 340.72 422.10 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 90.00 410.10 Td (significant conflicts created by our advisor) Tj ET Q q 0 0 0 rg BT 261.15 410.10 Td (’) Tj ET Q q 0 0 0 rg BT 263.93 410.10 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 90.00 398.10 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 476.67 398.10 Td (These conflicts could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 386.10 Td (result in unanticipated actions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 371.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 371.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 371.10 Td (e raised substantially less than the maximum of) Tj ET Q q 0 0 0 rg BT 288.14 371.10 Td (fering amount in our initial public of) Tj ET Q q 0 0 0 rg BT 434.59 371.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 463.29 371.10 Td (Therefore, we will not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 359.10 Td (be able to invest in as diverse a portfolio of properties as we otherwise would, which will cause the value of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 347.10 Td (stockholders’) Tj ET Q q 0 0 0 rg BT 143.13 347.10 Td ( investment to vary more widely with the performance of specific assets, and cause our general and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 335.10 Td (administrative expenses to constitute a greater percentage of our revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 320.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 320.10 Td (Our board of directors has begun to explore strategic alternatives for the company) Tj ET Q q 0 0 0 rg BT 417.01 320.10 Td (. If we consummate a mer) Tj ET Q q 0 0 0 rg BT 520.68 320.10 Td (ger or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 308.10 Td (pursue another exit strategy in the near term, stockholders may not receive an amount per share equal to our current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 296.10 Td (of) Tj ET Q q 0 0 0 rg BT 98.15 296.10 Td (fering prices or our estimated NA) Tj ET Q q 0 0 0 rg BT 231.54 296.10 Td (V) Tj ET Q q 0 0 0 rg BT 238.58 296.10 Td ( per share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 281.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 281.10 Td (Our advisor and its af) Tj ET Q q 0 0 0 rg BT 176.46 281.10 Td (filiates receive fees in connection with transactions involving the origination, acquisition and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 269.10 Td (management of our investments. ) Tj ET Q q 0 0 0 rg BT 222.84 269.10 Td (These fees will be based on the cost of the investment, and not based on the quality ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 257.10 Td (of the investment or the quality of the services rendered to us. ) Tj ET Q q 0 0 0 rg BT 339.47 257.10 Td (This may influence our advisor to recommend riskier ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 245.10 Td (transactions to us and increase our stockholders’) Tj ET Q q 0 0 0 rg BT 283.09 245.10 Td ( risk of loss.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 230.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 230.10 Td (Our distribution policy is generally not to use of) Tj ET Q q 0 0 0 rg BT 282.57 230.10 Td (fering proceeds to pay distributions. However) Tj ET Q q 0 0 0 rg BT 465.45 230.10 Td (, we may pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 218.10 Td (distributions from any source, including, without limitation, from of) Tj ET Q q 0 0 0 rg BT 362.29 218.10 Td (fering proceeds or borrowings \(which may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 206.10 Td (constitute a return of capital\). If we pay distributions from sources other than our cash flow from operations, we will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 194.10 Td (have less funds available for investment in properties and other assets, the overall return to our stockholders may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 182.10 Td (reduced and subsequent investors may experience dilution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 167.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 167.10 Td (If we are unable to find suitable investments, we may not be able to achieve our investment objectives or pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 155.10 Td (distributions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 140.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 140.10 Td (Our policies do not limit us from incurring debt until our total liabilities would exceed 75% of the cost of our tangible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 128.10 Td (assets \(before deducting depreciation and other non-cash reserves\), and we may exceed this limit with the approval of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 116.10 Td (the conflicts committee of our board of directors. During the early stages of our initial public of) Tj ET Q q 0 0 0 rg BT 472.21 116.10 Td (fering, and to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 104.10 Td (extent financing in excess of this limit is available on attractive terms, our conflicts committee may approve debt such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 92.10 Td (that our total liabilities would exceed this limit. High debt levels could limit the amount of cash we have available to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 80.10 Td (distribute and could result in a decline in the value of an investment in us.) Tj ET Q endstream endobj 67 0 obj <>] /Rotate 0 /Contents 68 0 R>> endobj 68 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) 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 (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 704.10 Td (Disruptions in the financial markets and uncertain economic conditions could adversely af) Tj ET Q q 0 0 0 rg BT 451.10 704.10 Td (fect our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 692.10 Td (implement our business strategy and generate returns to stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 677.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 677.10 Td (Except with respect to unimproved or non-incoming producing property) Tj ET Q q 0 0 0 rg BT 378.17 677.10 Td (, we are not limited in the percentage of net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 665.10 Td (proceeds that we may allocate to a specific real estate asset type. ) Tj ET Q q 0 0 0 rg BT 350.53 665.10 Td (Thus, we may make all of our investments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 653.10 Td (investments which present an increased risk of loss. In addition, we may change our tar) Tj ET Q q 0 0 0 rg BT 439.17 653.10 Td (geted investments and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 641.10 Td (investment guidelines at any time without the consent of our stockholders, which could result in our making ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 629.10 Td (investments that are dif) Tj ET Q q 0 0 0 rg BT 183.40 629.10 Td (ferent from, and possibly riskier than, the investments we initially expect to focus on.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 614.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 614.10 Td (e expect to focus our investments in real estate-related loans and real estate-related debt securities in distressed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 602.10 Td (debt, which involves more risk than in performing debt.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 587.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 587.10 Td (Our opportunistic property-acquisition strategy involves a higher risk of loss than would a strategy of investing in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 575.10 Td (stabilized properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 560.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 560.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 560.10 Td (e have made foreign investments and will be susceptible to risks associated with such investments, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 548.10 Td (changes in currency exchange rates, adverse political or economic developments, lack of uniform accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 536.10 Td (standards and changes in foreign laws.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 515.10 Td (All forward-looking statements should be read in light of the risks identified herein in Part II, Item 1A) Tj ET Q q 0 0 0 rg BT 481.74 515.10 Td ( “Risk Factors” and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 119.21 503.10 Td ( of our ) Tj ET Q q 0 0 0 rg BT 147.82 503.10 Td (Annual Report on Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.16 503.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.74 503.10 Td ( and in Part II, Item 1A) Tj ET Q q 0 0 0 rg BT 515.22 503.10 Td ( of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (Quarterly Report on Form 10-Q for the period ended March 31, 2018, as filed with the Securities and Exchange Commission ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (\(the “SEC”\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 461.10 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 443.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 443.10 Td (e were formed on February 6, 2013 as a Maryland corporation and 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 49.50 431.10 Td (\(“REIT”\) beginning with the taxable year ending December 31, 2014. On July 3, 2013, we commenced a private placement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 419.10 Td (fering exempt from registration under the Securities ) Tj ET Q q 0 0 0 rg BT 267.31 419.10 Td (Act of 1933, as amended \(the “Securities ) Tj ET Q q 0 0 0 rg BT 433.37 419.10 Td (Act”\), to of) Tj ET Q q 0 0 0 rg BT 479.00 419.10 Td (fer a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td ($105,000,000 of shares of common stock for sale to certain accredited investors, of which $5,000,000 of shares were of) Tj ET Q q 0 0 0 rg BT 527.80 407.10 Td (fered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (pursuant to our dividend reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 228.73 395.10 Td (W) Tj ET Q q 0 0 0 rg BT 237.37 395.10 Td (e ceased of) Tj ET Q q 0 0 0 rg BT 281.60 395.10 Td (fering shares in our private of) Tj ET Q q 0 0 0 rg BT 399.99 395.10 Td (fering on ) Tj ET Q q 0 0 0 rg BT 438.31 395.10 Td (August 1) Tj ET Q q 0 0 0 rg BT 474.33 395.10 Td (1, 2014. KBS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (Capital Markets Group LLC, an af) Tj ET Q q 0 0 0 rg BT 187.62 383.10 Td (filiate of our advisor) Tj ET Q q 0 0 0 rg BT 269.13 383.10 Td (, served as the dealer manager of the of) Tj ET Q q 0 0 0 rg BT 425.82 383.10 Td (fering pursuant to a dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (manager agreement and was responsible for marketing our shares in the of) Tj ET Q q 0 0 0 rg BT 347.27 371.10 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 353.10 Td (On November 14, 2013, we filed a registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 352.41 353.10 Td (1 with the Securities and Exchange Commission ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (\(the “SEC”\) to register for sale to the public a maximum of 180,000,000 shares of common stock, of which 80,000,000 shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (were to be of) Tj ET Q q 0 0 0 rg BT 101.79 329.10 Td (fered pursuant to our dividend reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 304.06 329.10 Td (The SEC declared our registration statement ef) Tj ET Q q 0 0 0 rg BT 491.59 329.10 Td (fective on ) Tj ET Q q 0 0 0 rg BT 533.24 329.10 Td (August ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (12, 2014 and we retained KBS Capital Markets Group LLC to serve as the dealer manager of the initial public of) Tj ET Q q 0 0 0 rg BT 501.14 317.10 Td (fering pursuant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (to a dealer manager agreement. On February 1) Tj ET Q q 0 0 0 rg BT 237.65 305.10 Td (1, 2016, we filed an amended registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 497.22 305.10 Td (1 with the SEC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (to of) Tj ET Q q 0 0 0 rg BT 67.93 293.10 Td (fer a second class of common stock designated as Class ) Tj ET Q q 0 0 0 rg BT 292.69 293.10 Td (T) Tj ET Q q 0 0 0 rg BT 298.62 293.10 Td ( shares and to designate our initially of) Tj ET Q q 0 0 0 rg BT 453.67 293.10 Td (fered and outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (common stock as Class ) Tj ET Q q 0 0 0 rg BT 145.05 281.10 Td (A) Tj ET Q q 0 0 0 rg BT 151.72 281.10 Td ( shares. Pursuant to the amended registration statement, we are of) Tj ET Q q 0 0 0 rg BT 416.18 281.10 Td (fering to sell any combination of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.12 269.10 Td (A) Tj ET Q q 0 0 0 rg BT 79.79 269.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 123.22 269.10 Td (T) Tj ET Q q 0 0 0 rg BT 129.14 269.10 Td ( shares in our primary of) Tj ET Q q 0 0 0 rg BT 227.55 269.10 Td (fering and dividend reinvestment plan of) Tj ET Q q 0 0 0 rg BT 390.37 269.10 Td (fering but in no event may we sell more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (than 180,000,000 of shares of our common stock pursuant to the of) Tj ET Q q 0 0 0 rg BT 317.88 257.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 349.08 257.10 Td (W) Tj ET Q q 0 0 0 rg BT 357.72 257.10 Td (e commenced of) Tj ET Q q 0 0 0 rg BT 423.62 257.10 Td (fering our Class ) Tj ET Q q 0 0 0 rg BT 489.81 257.10 Td (T) Tj ET Q q 0 0 0 rg BT 495.74 257.10 Td ( shares of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (common stock for sale to the public on February 17, 2016. ) Tj ET Q q 0 0 0 rg BT 288.72 245.10 Td (The dealer manager is responsible for marketing our shares in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (initial public of) Tj ET Q q 0 0 0 rg BT 110.97 233.10 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 215.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.17 215.10 Td (August 10, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.56 215.10 Td (, we filed a registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 338.54 215.10 Td (1 with the SEC to register a proposed follow-on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 203.10 Td (fering. Pursuant to the follow-on of) Tj ET Q q 0 0 0 rg BT 199.11 203.10 Td (fering registration statement, we propose to register up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.71 203.10 Td ($500.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.60 203.10 Td ( of shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (common stock for sale to the public in a primary of) Tj ET Q q 0 0 0 rg BT 254.82 191.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 283.52 191.10 Td (W) Tj ET Q q 0 0 0 rg BT 292.16 191.10 Td (e also propose to register up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.91 191.10 Td ($125.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.80 191.10 Td ( of shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (common stock pursuant to our dividend reinvestment plan in the follow-on of) Tj ET Q q 0 0 0 rg BT 360.10 179.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 388.79 179.10 Td (W) Tj ET Q q 0 0 0 rg BT 397.43 179.10 Td (e can give no assurance that we will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (commence or complete the follow-on of) Tj ET Q q 0 0 0 rg BT 210.10 167.10 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 149.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 149.10 Td (e ceased of) Tj ET Q q 0 0 0 rg BT 124.87 149.10 Td (fering shares of common stock in our primary public of) Tj ET Q q 0 0 0 rg BT 346.58 149.10 Td (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.46 149.10 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.63 149.10 Td ( and are continuing to process ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.10 Td (subscriptions. Subscriptions must be dated on or before July 31, 2018, and subscriptions and all related documents and funds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.10 Td (must be received by us in good order no later than September 28, 2018.) 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 \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 704.10 Td (e intend to use substantially all of the net proceeds from our of) Tj ET Q q 0 0 0 rg BT 330.95 704.10 Td (ferings to invest in and manage a diverse portfolio of real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (estate-related loans, opportunistic real estate, real estate-related debt securities and other real estate-related investments located ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (in the United States and Europe. Such investments will include the acquisition of distressed debt, the origination and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (acquisition of mortgage, mezzanine, bridge and other real estate-related loans, investment in opportunistic real estate and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (investments in real estate-related debt securities such as residential and commercial mortgage-backed securities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (collateralized debt obligations. ) Tj ET Q q 0 0 0 rg BT 177.33 644.10 Td (W) Tj ET Q q 0 0 0 rg BT 185.97 644.10 Td (e may also invest in entities that make similar investments. ) Tj ET Q q 0 0 0 rg BT 423.43 644.10 Td (Although this is our current tar) Tj ET Q q 0 0 0 rg BT 546.83 644.10 Td (get ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (portfolio, we may make adjustments to our tar) Tj ET Q q 0 0 0 rg BT 234.28 632.10 Td (get portfolio based on real estate market conditions and investment opportunities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 620.10 Td (e will not forego what we believe to be a good investment because it does not precisely fit our expected portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (composition. ) Tj ET Q q 0 0 0 rg BT 105.89 608.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.33 608.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.17 608.10 Td (, we had invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.37 608.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.37 608.10 Td ( hotel properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.35 608.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.01 608.10 Td ( of) Tj ET Q q 0 0 0 rg BT 380.66 608.10 Td (fice properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.13 608.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.57 608.10 Td ( apartment building, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.88 608.10 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.32 608.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (investment in an unconsolidated entity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.35 596.10 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.79 596.10 Td ( investment in real estate equity securities. ) Tj ET Q q 0 0 0 rg BT 404.41 596.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 454.31 596.10 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.97 596.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.80 596.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (had entered into a joint venture to develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.11 584.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.55 584.10 Td ( retail property) Tj ET Q q 0 0 0 rg BT 294.32 584.10 Td (, which is currently under construction.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 566.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 566.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 566.10 Td (, we had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.54 566.10 Td (12,242,387) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.54 566.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.98 566.10 Td (1) Tj ET Q q 0 0 0 rg BT 276.61 566.10 Td (1,443,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.61 566.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 381.05 566.10 Td (A) Tj ET Q q 0 0 0 rg BT 387.72 566.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 431.15 566.10 Td (T) Tj ET Q q 0 0 0 rg BT 437.07 566.10 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 550.84 566.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (for aggregate gross of) Tj ET Q q 0 0 0 rg BT 136.79 554.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.03 554.10 Td ($230.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.92 554.10 Td ( in our initial public of) Tj ET Q q 0 0 0 rg BT 361.00 554.10 Td (fering, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 554.10 Td (496,426) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 554.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.09 554.10 Td (146,459) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.59 554.10 Td ( shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.12 542.10 Td (A) Tj ET Q q 0 0 0 rg BT 79.79 542.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 123.22 542.10 Td (T) Tj ET Q q 0 0 0 rg BT 129.14 542.10 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 242.91 542.10 Td (, under our dividend reinvestment plan for aggregate gross of) Tj ET Q q 0 0 0 rg BT 487.65 542.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td ($6.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 530.10 Td (. ) Tj ET Q q 0 0 0 rg BT 102.84 530.10 Td (Also as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.89 530.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.72 530.10 Td (, we had redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.18 530.10 Td (410,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.68 530.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.12 530.10 Td (61,671) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.62 530.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 423.06 530.10 Td (A) Tj ET Q q 0 0 0 rg BT 429.73 530.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 473.16 530.10 Td (T) Tj ET Q q 0 0 0 rg BT 479.08 530.10 Td ( common stock, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 518.10 Td (, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.32 518.10 Td ($4.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.21 518.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 500.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 500.10 Td (e sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.75 500.10 Td (3,619,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.75 500.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 211.18 500.10 Td (A) Tj ET Q q 0 0 0 rg BT 217.85 500.10 Td ( common stock for gross of) Tj ET Q q 0 0 0 rg BT 327.38 500.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.63 500.10 Td ($32.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.52 500.10 Td ( in our private of) Tj ET Q q 0 0 0 rg BT 523.54 500.10 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.40 488.10 Td (, on each of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.00 488.10 Td (April 2, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.60 488.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.04 488.10 Td (July 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.21 488.10 Td (, we issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.87 488.10 Td (120,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.37 488.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 418.81 488.10 Td (A) Tj ET Q q 0 0 0 rg BT 425.48 488.10 Td ( common stock to an entity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 476.10 Td (filiated with two of our of) Tj ET Q q 0 0 0 rg BT 160.50 476.10 Td (ficers and af) Tj ET Q q 0 0 0 rg BT 209.73 476.10 Td (filiated directors for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.20 476.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.09 476.10 Td ( in separate private transactions exempt from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (registration requirements of the Securities ) Tj ET Q q 0 0 0 rg BT 219.17 464.10 Td (Act. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.33 464.10 Td (July 14, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.50 464.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.94 464.10 Td (February 13, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.54 464.10 Td (, we issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.20 464.10 Td (214,175) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.70 464.10 Td ( shares and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.63 464.10 Td (10,935) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.13 464.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (shares, respectively) Tj ET Q q 0 0 0 rg BT 127.15 452.10 Td (, of Class ) Tj ET Q q 0 0 0 rg BT 166.60 452.10 Td (A) Tj ET Q q 0 0 0 rg BT 173.27 452.10 Td ( common stock to a business associate of two of our of) Tj ET Q q 0 0 0 rg BT 392.21 452.10 Td (ficers and af) Tj ET Q q 0 0 0 rg BT 441.45 452.10 Td (filiated director for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.02 452.10 Td ($2.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 440.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 440.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.72 440.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 199.38 440.10 Td (, in a separate private transaction exempt from the registration requirements of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (Securities ) Tj ET Q q 0 0 0 rg BT 90.88 428.10 Td (Act. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 410.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 410.10 Td (e have no employees and KBS Capital ) Tj ET Q q 0 0 0 rg BT 236.44 410.10 Td (Advisors LLC \(“KBS Capital ) Tj ET Q q 0 0 0 rg BT 356.99 410.10 Td (Advisors”\) has served as our external advisor since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (commencement of the private of) Tj ET Q q 0 0 0 rg BT 179.27 398.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 210.09 398.10 Td (As our advisor) Tj ET Q q 0 0 0 rg BT 268.57 398.10 Td (, KBS Capital ) Tj ET Q q 0 0 0 rg BT 326.36 398.10 Td (Advisors manages our day-to-day operations and manages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (our portfolio of real estate properties and real estate-related investments. KBS Capital ) Tj ET Q q 0 0 0 rg BT 394.67 386.10 Td (Advisors will make recommendations on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (all investments to our board of directors. ) Tj ET Q q 0 0 0 rg BT 213.91 374.10 Td (All proposed investments must be approved by at least a majority of our board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (directors, including a majority of the conflicts committee. Unless otherwise provided by our charter) Tj ET Q q 0 0 0 rg BT 447.60 362.10 Td (, the conflicts committee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (may approve a proposed investment without action by the full board of directors if the approving members of the conflicts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (committee constitute at least a majority of the board of directors. KBS Capital ) Tj ET Q q 0 0 0 rg BT 366.37 338.10 Td (Advisors also provides asset-management, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (marketing, investor) Tj ET Q q 0 0 0 rg BT 127.06 326.10 Td (-relations and other administrative services on our behalf. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 308.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 308.10 Td (e have formed a strategic relationship with ST) Tj ET Q q 0 0 0 rg BT 264.50 308.10 Td (AM, a commercial real estate investment and asset management firm ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (headquartered in Paris, France to support us and our advisor in connection with any investments we may make in Europe. ) Tj ET Q q 0 0 0 rg BT 541.14 296.10 Td (W) Tj ET Q q 0 0 0 rg BT 549.78 296.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (can give no assurances as to the number) Tj ET Q q 0 0 0 rg BT 209.32 284.10 Td (, if any) Tj ET Q q 0 0 0 rg BT 236.72 284.10 Td (, of investments we may make in Europe. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (Market Outlook - Real Estate and Real Estate Finance Markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 248.10 Td (V) Tj ET Q q 0 0 0 rg BT 77.93 248.10 Td (olatility in global financial markets and changing political environments can cause fluctuations in the performance of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (U.S. commercial real estate markets. Possible future declines in rental rates, slower or potentially negative net absorption of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (leased space and expectations of future rental concessions, including free rent to renew tenants early) Tj ET Q q 0 0 0 rg BT 450.08 224.10 Td (, to retain tenants who are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (up for renewal or to attract new tenants, may result in decreases in cash flows from investment properties. Increases in the cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (of financing due to higher interest rates may cause dif) Tj ET Q q 0 0 0 rg BT 264.52 200.10 Td (ficulty in refinancing debt obligations prior to or at maturity or at terms as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (favorable as the terms of existing indebtedness. Market conditions can change quickly) Tj ET Q q 0 0 0 rg BT 393.75 188.10 Td (, potentially negatively impacting the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (value of real estate investments. Management continuously reviews our investment and debt financing strategies to optimize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (our portfolio and the cost of our debt exposure.) 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 (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 payment of operating expenses, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (capital expenditures and general and administrative expenses; payments under debt obligations; redemptions of common stock; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (capital commitments and development expenses under our joint venture agreements; 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 BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.25 Td (T) Tj ET Q q 0 0 0 rg BT 77.41 632.25 Td (o date, we have had four primary sources of capital for meeting our cash requirements:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 614.25 Td (Proceeds from the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 318.93 614.25 Td (fering; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 599.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 599.25 Td (Proceeds from our dividend reinvestment plan;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 584.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 584.25 Td (Debt financings; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 569.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 569.25 Td (Cash flow generated by our real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 548.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 548.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 548.25 Td (, we had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.54 548.25 Td (12,242,387) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.54 548.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.98 548.25 Td (1) Tj ET Q q 0 0 0 rg BT 276.61 548.25 Td (1,443,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.61 548.25 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 381.05 548.25 Td (A) Tj ET Q q 0 0 0 rg BT 387.72 548.25 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 431.15 548.25 Td (T) Tj ET Q q 0 0 0 rg BT 437.07 548.25 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 550.84 548.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (for aggregate gross of) Tj ET Q q 0 0 0 rg BT 136.79 536.25 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.03 536.25 Td ($230.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.92 536.25 Td ( in our initial public of) Tj ET Q q 0 0 0 rg BT 361.00 536.25 Td (fering. ) Tj ET Q q 0 0 0 rg BT 389.33 536.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 439.23 536.25 Td (, we sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.56 536.25 Td (3,619,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.56 536.25 Td ( shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (common stock in our private of) Tj ET Q q 0 0 0 rg BT 175.13 524.25 Td (fering for gross of) Tj ET Q q 0 0 0 rg BT 247.42 524.25 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.67 524.25 Td ($32.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.56 524.25 Td (. ) Tj ET Q q 0 0 0 rg BT 381.38 524.25 Td (W) Tj ET Q q 0 0 0 rg BT 390.02 524.25 Td (e ceased of) Tj ET Q q 0 0 0 rg BT 434.25 524.25 Td (fering shares of common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (in our primary public of) Tj ET Q q 0 0 0 rg BT 145.41 512.25 Td (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.29 512.25 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.46 512.25 Td ( and are continuing to process subscriptions. Subscriptions must be dated on or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.25 Td (before July 31, 2018, and subscriptions and all related documents and funds must be received by us in good order no later than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (September 28, 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 470.25 Td (T) Tj ET Q q 0 0 0 rg BT 77.41 470.25 Td (o date, we have invested a significant amount of the proceeds from the primary public of) Tj ET Q q 0 0 0 rg BT 432.11 470.25 Td (fering in real estate and do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (anticipate making additional real estate acquisitions due to the termination of the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 528.63 458.25 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.00 446.25 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.17 446.25 Td (. ) Tj ET Q q 0 0 0 rg BT 120.99 446.25 Td (W) Tj ET Q q 0 0 0 rg BT 129.63 446.25 Td (e intend to use our cash on hand, cash flow generated by our real estate operations and proceeds from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (dividend reinvestment plan as our primary sources of immediate and long-term liquidity) Tj ET Q q 0 0 0 rg BT 401.82 434.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 416.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 416.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.27 416.25 Td (, we had invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.48 416.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.48 416.25 Td ( hotel properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.46 416.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.12 416.25 Td ( of) Tj ET Q q 0 0 0 rg BT 346.77 416.25 Td (fice properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.24 416.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.67 416.25 Td ( apartment building, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.99 416.25 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.43 416.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (investment in an unconsolidated entity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.35 404.25 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.79 404.25 Td ( investment in real estate equity securities. ) Tj ET Q q 0 0 0 rg BT 404.41 404.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 454.31 404.25 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.97 404.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.80 404.25 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (had entered into a joint venture to develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.11 392.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.55 392.25 Td ( retail property) Tj ET Q q 0 0 0 rg BT 294.32 392.25 Td (, which is currently under construction. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 374.25 Td (Our of) Tj ET Q q 0 0 0 rg BT 98.20 374.25 Td (fice and apartment properties generate cash flow in the form of rental revenues and tenant reimbursements, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (are reduced by operating expenditures, capital expenditures, debt service payments, the payment of asset management fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.25 Td (corporate general and administrative expenses. Cash flow from operations from of) Tj ET Q q 0 0 0 rg BT 378.93 350.25 Td (fice and apartment properties is primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.25 Td (dependent upon the occupancy level of our properties, the net ef) Tj ET Q q 0 0 0 rg BT 306.17 338.25 Td (fective rental rates on our leases, the collectibility of rent and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (operating recoveries from our tenants and how well we manage our expenditures. ) Tj ET Q q 0 0 0 rg BT 377.44 326.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.89 326.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.72 326.25 Td (, we owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.04 326.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.70 326.25 Td ( of) Tj ET Q q 0 0 0 rg BT 533.35 326.25 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (properties that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.41 314.25 Td (72%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.74 314.25 Td ( occupied and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.77 314.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.21 314.25 Td ( apartment property that was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.11 314.25 Td (94%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.44 314.25 Td ( occupied.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 296.25 Td (Our hotel properties generate cash flow in the form of room, food, beverage and convention services, campground and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (other revenues, which are reduced by hotel expenses, capital expenditures, debt service payments, the payment of asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.25 Td (management fees and corporate general and administrative expenses. Cash flow from operations from our hotel properties are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.25 Td (primarily dependent upon the occupancy levels of our hotels, the average daily rates and how well we manage our expenditures. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.25 Td (The following table provides summary information regarding our hotel properties as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.52 248.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.35 248.25 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 210.75 123.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 173.00 210.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 210.75 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 210.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 210.75 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 210.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 210.75 103.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 210.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 210.75 86.00 -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 50 210.75 m 173 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 210.75 m 231 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 235 210.75 m 366 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 210.75 m 473 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 210.75 m 563 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 210.75 m 231 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 235 210.75 m 366 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 210.75 m 473 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 210.75 m 563 210.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 214.98 Td (Pr) Tj ET Q q 0 0 0 rg BT 60.79 214.98 Td (operty) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 185.00 222.98 Td (Number) Tj ET Q q 0 0 0 rg BT 213.37 222.98 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 191.70 214.98 Td (Rooms) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 245.25 222.98 Td (Per) Tj ET Q q 0 0 0 rg BT 257.09 222.98 Td (centage Occupied for) Tj ET Q q 0 0 0 rg BT 329.38 222.98 Td ( the Six ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 250.50 214.98 Td (Months Ended June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.70 222.98 Td (A) Tj ET Q q 0 0 0 rg BT 390.18 222.98 Td (verage Revenue per) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.85 214.98 Td (A) Tj ET Q q 0 0 0 rg BT 399.33 214.98 Td (vailable Room) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 486.45 214.98 Td (A) Tj ET Q q 0 0 0 rg BT 491.63 214.98 Td (verage Daily Rate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 202.00 Td (Springmaid Beach Resort) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 197.50 202.00 Td (452) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.65 202.00 Td (57.8%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.00 202.00 Td ($88.52) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 506.50 202.00 Td ($153.16) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 189.00 Td (Q&C Hotel) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 197.50 189.00 Td (196) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.65 189.00 Td (80.5%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.00 189.00 Td ($137.19) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 506.50 189.00 Td ($170.43) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 161.25 Td (Investments in real estate equity securities generate cash flow in the form of dividend income, which is reduced by asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.25 Td (management fees. ) Tj ET Q q 0 0 0 rg BT 123.64 149.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.08 149.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.91 149.25 Td (, we had an investment in real estate equity securities outstanding with a total book value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.25 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 137.25 Td ($7.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.22 137.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 119.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.94 119.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.77 119.25 Td (, we had mortgage debt obligations in the aggregate principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.52 119.25 Td ($331.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.41 119.25 Td (, with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.25 Td (weighted-average remaining term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.77 107.25 Td (2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.27 107.25 Td ( years. ) Tj ET Q q 0 0 0 rg BT 238.31 107.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.76 107.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.59 107.25 Td (, an aggregate amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.21 107.25 Td ($32.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.10 107.25 Td ( was available under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.25 Td (our mortgage loans for future disbursements to be used for capital improvement costs, tenant improvement costs, leasing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.25 Td (commissions and expenses and operating/interest shortfall, subject to certain terms and conditions contained in the loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.25 Td (documents. ) 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 33.60 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 704.10 Td (In addition to making investments in accordance with our investment objectives, we expect to use our capital resources to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (make certain payments to our advisor and the dealer manager) Tj ET Q q 0 0 0 rg BT 294.68 692.10 Td (. During our or) Tj ET Q q 0 0 0 rg BT 354.49 692.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 423.73 692.10 Td (fering stage, these payments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (include payments to the dealer manager for selling commissions, the dealer manager fee and the stockholder servicing fee and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (payments to the dealer manager and our advisor for reimbursement of certain commercially reasonable or) Tj ET Q q 0 0 0 rg BT 471.93 668.10 Td (ganization and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 656.10 Td (fering expenses, provided that no reimbursements made by us to our advisor or dealer manager may cause total or) Tj ET Q q 0 0 0 rg BT 513.16 656.10 Td (ganization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (and of) Tj ET Q q 0 0 0 rg BT 74.59 644.10 Td (fering expenses incurred by us in connection with our initial public of) Tj ET Q q 0 0 0 rg BT 353.50 644.10 Td (fering \(including selling commissions, dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (manager fees, stockholder servicing fees and all other items of or) Tj ET Q q 0 0 0 rg BT 310.06 632.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 379.29 632.10 Td (fering expenses\) to exceed 15% of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (aggregate gross proceeds from our public of) Tj ET Q q 0 0 0 rg BT 225.93 620.10 Td (fering as of the date of reimbursement. ) Tj ET Q q 0 0 0 rg BT 383.09 620.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.54 620.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.37 620.10 Td (, our advisor has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (incurred or) Tj ET Q q 0 0 0 rg BT 93.46 608.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 162.70 608.10 Td (fering expenses on our behalf related to our initial public of) Tj ET Q q 0 0 0 rg BT 400.78 608.10 Td (fering of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.25 608.10 Td ($10.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.14 608.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (In addition, our advisor and its af) Tj ET Q q 0 0 0 rg BT 182.35 596.10 Td (filiates will reimburse us to the extent that the or) Tj ET Q q 0 0 0 rg BT 376.28 596.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 468.57 596.10 Td (fering expenses \(which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (exclude selling commissions, dealer manager fees and stockholder servicing fees\) paid directly or reimbursed by us in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (connection with the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 284.54 572.10 Td (fering, regardless of when incurred, exceed 1.0% of gross of) Tj ET Q q 0 0 0 rg BT 525.94 572.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (proceeds from the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 277.87 560.10 Td (fering. Our advisor and its af) Tj ET Q q 0 0 0 rg BT 393.21 560.10 Td (filiates will be responsible for any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 548.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 149.93 548.10 Td (fering expenses related to the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 423.28 548.10 Td (fering to the extent they exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (1.0% of gross proceeds from the primary portion of the initial public of) Tj ET Q q 0 0 0 rg BT 334.53 536.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 363.23 536.10 Td (There was no limit on the or) Tj ET Q q 0 0 0 rg BT 476.35 536.10 Td (ganization and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 524.10 Td (fering expenses we could incur in connection with our private of) Tj ET Q q 0 0 0 rg BT 315.72 524.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 344.05 524.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.49 524.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.32 524.10 Td (, our advisor had incurred of) Tj ET Q q 0 0 0 rg BT 537.99 524.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (expenses on our behalf related to our private of) Tj ET Q q 0 0 0 rg BT 238.14 512.10 Td (fering of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.34 512.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.24 512.10 Td (, all of which have been reimbursed from proceeds from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (our now terminated private of) Tj ET Q q 0 0 0 rg BT 168.72 500.10 Td (fering. During our acquisition and development stage, we expect to make payments to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (advisor in connection with the selection and origination or purchase of investments, the management of our assets and costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (incurred by our advisor in providing services to us. ) Tj ET Q q 0 0 0 rg BT 255.95 476.10 Td (W) Tj ET Q q 0 0 0 rg BT 264.58 476.10 Td (e will also continue to make payments to our dealer manager related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (the stockholder servicing fees based on the terms of the Class ) Tj ET Q q 0 0 0 rg BT 297.86 464.10 Td (T) Tj ET Q q 0 0 0 rg BT 303.79 464.10 Td ( Shares. Our currently ef) Tj ET Q q 0 0 0 rg BT 402.19 464.10 Td (fective advisory agreement expires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (August 12, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.89 452.10 Td ( and may be renewed for an unlimited number of successive one-year periods upon the mutual consent of KBS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (Capital ) Tj ET Q q 0 0 0 rg BT 80.33 440.10 Td (Advisors and our conflicts committee.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 422.10 Td (Among the fees payable to our advisor is an asset management fee. ) Tj ET Q q 0 0 0 rg BT 342.62 422.10 Td (W) Tj ET Q q 0 0 0 rg BT 351.26 422.10 Td (e pay our advisor a monthly fee equal to the lesser ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (of one-twelfth of \(i\) 1.0% of the cost of our investments and \(ii\) 2.0% of the sum of the cost of our investments, less any debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (secured by or attributable to the investments. ) Tj ET Q q 0 0 0 rg BT 231.49 398.10 Td (The cost of the real property investments is calculated as the amount paid or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (allocated to acquire the real property) Tj ET Q q 0 0 0 rg BT 195.72 386.10 Td (, including the cost of any subsequent development, construction or improvements to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (property and including fees and expenses related thereto \(but excluding acquisition fees paid or payable our advisor\). ) Tj ET Q q 0 0 0 rg BT 520.27 374.10 Td (The cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (of the loans and any investments other than real property is calculated as the lesser of \(x\) the amount actually paid or allocated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (to acquire or fund the loan or other investment, including fees and expenses related thereto \(but excluding acquisition fees paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (or payable to our advisor\) and \(y\) the outstanding principal amount of such loan or other investment, including fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (expenses related to the acquisition or funding of such investment \(but excluding acquisition fees paid or payable to our advisor\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (as of the time of calculation. In the case of investments made through joint ventures, the asset management fee is determined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (based on our proportionate share of the underlying investment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 284.10 Td (In addition, an af) Tj ET Q q 0 0 0 rg BT 140.13 284.10 Td (filiate of our advisor) Tj ET Q q 0 0 0 rg BT 221.65 284.10 Td (, KBS Management Group, was recently formed to provide property management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (services with respect to certain properties owned by KBS-advised companies. In the future, we may engage KBS Management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (Group with respect to one or more of our properties to provide property management services. ) Tj ET Q q 0 0 0 rg BT 431.70 260.10 Td (W) Tj ET Q q 0 0 0 rg BT 440.74 260.10 Td (ith respect to any such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (properties, we would expect to pay KBS Management Group a monthly fee equal to a percentage of the rent \(to be determined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (on a property by property basis, consistent with current market rates\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 218.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 218.10 Td (e elected to be taxed and to operate as a REIT) Tj ET Q q 0 0 0 rg BT 263.70 218.10 Td ( beginning with our taxable year ended December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 505.67 218.10 Td (T) Tj ET Q q 0 0 0 rg BT 511.08 218.10 Td (o maintain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (our qualification as a REIT) Tj ET Q q 0 0 0 rg BT 157.61 206.10 Td (, we will be required to make aggregate annual distributions to our stockholders of at least 90% of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (our REIT) Tj ET Q q 0 0 0 rg BT 87.37 194.10 Td ( taxable income \(computed without regard to the dividends paid deduction and excluding net capital gain\). Our board ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (of directors may authorize distributions in excess of those required for us to maintain REIT) Tj ET Q q 0 0 0 rg BT 414.23 182.10 Td ( status depending on our financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (condition and such other factors as our board of directors deems relevant. ) Tj ET Q q 0 0 0 rg BT 345.61 170.10 Td (W) Tj ET Q q 0 0 0 rg BT 354.25 170.10 Td (e have not established a minimum distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (level.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 140.10 Td (Under our charter) Tj ET Q q 0 0 0 rg BT 142.67 140.10 Td (, we are required to limit our total operating expenses to the greater of 2% of our average invested assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (or 25% of our net income for the four most recently completed fiscal quarters, as these terms are defined in our charter) Tj ET Q q 0 0 0 rg BT 523.92 128.10 Td (, unless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (the conflicts committee has determined that such excess expenses were justified based on unusual and non-recurring factors. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (Operating expense reimbursements for the four fiscal quarters ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.34 104.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.17 104.10 Td ( did not exceed the charter imposed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.10 Td (limitation.) Tj ET Q endstream endobj 75 0 obj <>] /Rotate 0 /Contents 76 0 R>> endobj 76 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) 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 (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 (W) Tj ET Q q 0 0 0 rg BT 80.64 689.25 Td (e commenced operations on September 4, 2014 in connection with our first investment. ) Tj ET Q q 0 0 0 rg BT 432.50 689.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.95 689.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.78 689.25 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.60 677.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.60 677.25 Td ( hotel properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.58 677.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.24 677.25 Td ( of) Tj ET Q q 0 0 0 rg BT 207.89 677.25 Td (fice properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.36 677.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.80 677.25 Td ( apartment building, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.12 677.25 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.56 677.25 Td ( investment in an unconsolidated entity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.94 665.25 Td ( investment in real estate equity securities. ) Tj ET Q q 0 0 0 rg BT 230.55 665.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 280.46 665.25 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.12 665.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.95 665.25 Td (, we had entered into a joint venture to develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.94 653.25 Td ( retail property) Tj ET Q q 0 0 0 rg BT 122.71 653.25 Td (, which is currently under construction. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.66 653.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.33 653.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.15 653.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.98 653.25 Td (, net cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.97 653.25 Td (provided by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.02 653.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td (operating activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.41 641.25 Td ($2.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.31 641.25 Td (. ) Tj ET Q q 0 0 0 rg BT 202.63 641.25 Td (W) Tj ET Q q 0 0 0 rg BT 211.26 641.25 Td (e expect that our cash flows from operating activities will generally increase in future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (periods as a result of leasing additional space that is currently unoccupied, the development and subsequent operation of 210 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 617.25 Td (est 31st Street, which is currently under construction, and owning real estate securities acquired during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.63 617.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.63 617.25 Td ( for an entire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (period.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 587.25 Td (Cash Flows from Investing ) Tj ET Q q 0 0 0 rg BT 163.60 587.25 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 572.25 Td (Net cash used in investing activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.13 572.25 Td ($1) Tj ET Q q 0 0 0 rg BT 245.76 572.25 Td (1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 572.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.03 572.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.70 572.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.52 572.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.35 572.25 Td ( and primarily consisted of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.25 Td (the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 542.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 542.25 Td ($7.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 542.25 Td ( investment in real estate equity securities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 527.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 527.25 Td ($4.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 527.25 Td ( of improvements to real estate; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 512.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 512.25 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 512.25 Td ( of cash received in connection with the real estate loan receivable payof) Tj ET Q q 0 0 0 rg BT 429.13 512.25 Td (f;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 497.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 497.25 Td ($3.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 497.25 Td ( of payments for construction in progress; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 482.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 482.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 482.25 Td ( of proceeds from insurance claims.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 461.25 Td (Cash Flows from Financing ) Tj ET Q q 0 0 0 rg BT 168.61 461.25 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 446.25 Td (Net cash provided by financing activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.67 446.25 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.56 446.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.94 446.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.61 446.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.43 446.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.26 446.25 Td ( and primarily consisted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (of the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 416.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 416.25 Td ($1) Tj ET Q q 0 0 0 rg BT 99.63 416.25 Td (1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.52 416.25 Td ( of net cash provided by of) Tj ET Q q 0 0 0 rg BT 250.53 416.25 Td (fering proceeds related to our initial public of) Tj ET Q q 0 0 0 rg BT 432.23 416.25 Td (fering, net of payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 404.25 Td (commissions, dealer manager fees and stockholder servicing fees of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.35 404.25 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.24 404.25 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 389.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 389.25 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 389.25 Td ( of cash used for redemptions of common stock; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 374.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 374.25 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 374.25 Td ( of net cash distributions, after giving ef) Tj ET Q q 0 0 0 rg BT 298.67 374.25 Td (fect to distributions reinvested by stockholders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.91 374.25 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.80 374.25 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 359.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 359.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 359.25 Td ( of net cash used in debt and other financings as a result of principal payments on notes payable of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.89 359.25 Td ($2.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 347.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.89 347.25 Td ( and payments of deferred financing costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.38 347.25 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.28 347.25 Td (, partially of) Tj ET Q q 0 0 0 rg BT 397.25 347.25 Td (fset by proceeds from notes payable of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 335.25 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 335.25 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 320.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 320.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 320.25 Td ( of noncontrolling interest contributions;) 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 ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 305.25 Td ( of distributions to noncontrolling interest; and) 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 ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 290.25 Td ( of principal payments on capital lease obligations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 269.25 Td (In order to execute our investment strategy) Tj ET Q q 0 0 0 rg BT 242.96 269.25 Td (, we utilize secured debt and we may) Tj ET Q q 0 0 0 rg BT 390.03 269.25 Td (, to the extent available, utilize unsecured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.25 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 49.50 245.25 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 49.50 233.25 Td (balanced with the benefit of using leverage. Once we have fully invested the proceeds from our of) Tj ET Q q 0 0 0 rg BT 444.17 233.25 Td (fering stage, we expect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.25 Td (debt financing will be 60% or less of the cost of our tangible assets \(before deducting depreciation or other non-cash reserves\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.25 Td (There is no limitation on the amount we may borrow for any single investment. Our charter limits our total liabilities such that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.25 Td (our total liabilities may not exceed 75% of the cost of our tangible assets \(before deducting depreciation or other non-cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.25 Td (reserves\); however) Tj ET Q q 0 0 0 rg BT 124.90 185.25 Td (, we may exceed that limit if a majority of the Conflicts Committee approves each borrowing in excess of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.25 Td (our charter limitation and we disclose such borrowing to our common stockholders in our next quarterly report with an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.25 Td (explanation from the conflicts committee of the justification for the excess borrowing. ) Tj ET Q q 0 0 0 rg BT 398.85 161.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.29 161.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.12 161.25 Td (, our borrowings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.25 Td (other liabilities were approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.45 149.25 Td (60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.78 149.25 Td ( of the cost \(before depreciation and other noncash reserves\) and book value \(before ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.25 Td (depreciation\) of our tangible assets.) 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 33.60 Td (37) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Contractual Commitments and Contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 686.25 Td (The following is a summary of our contractual obligations as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.44 686.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.27 686.25 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 634.75 200.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 634.75 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 634.75 60.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.00 634.75 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 634.75 62.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 634.75 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 634.75 57.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.00 634.75 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 634.75 57.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 634.75 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 634.75 57.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 602.75 200.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 602.75 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 602.75 60.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.00 602.75 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 602.75 62.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 602.75 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 602.75 57.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.00 602.75 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 602.75 57.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 602.75 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 602.75 57.00 -16.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 657.75 m 380 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 657.75 m 384 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 657.75 m 441 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 657.75 m 445 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 657.75 m 502 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 657.75 m 506 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 657.75 m 563 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 634.75 m 250 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 634.75 m 314 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 657.75 m 380 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 634.75 m 380 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 657.75 m 441 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 634.75 m 441 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 657.75 m 502 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 634.75 m 502 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 634.75 m 563 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 634.75 m 380 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 634.75 m 441 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 634.75 m 502 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 634.75 m 563 634.75 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 336.25 661.15 Td (Payments Due During the ) Tj ET Q q 0 0 0 rg BT 437.58 661.15 Td (Y) Tj ET Q q 0 0 0 rg BT 443.41 661.15 Td (ears Ending December) Tj ET Q q 0 0 0 rg BT 530.32 661.15 Td ( 31,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 102.85 639.20 Td (Contractual Obligations) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 273.65 639.20 Td (T) Tj ET Q q 0 0 0 rg BT 279.24 639.20 Td (otal) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 322.20 648.20 Td (Remainder) Tj ET Q q 0 0 0 rg BT 365.11 648.20 Td ( of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 339.50 639.20 Td (2018) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 392.50 639.20 Td (2019-2020) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 453.50 639.20 Td (2021-2022) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 513.40 639.20 Td (Ther) Tj ET Q q 0 0 0 rg BT 532.23 639.20 Td (eafter) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 623.21 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 156.49 627.29 Td ( \(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 256.50 623.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.25 623.21 Td (331,622) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.50 623.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 351.75 623.21 Td (64,164) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.50 623.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.25 623.21 Td (173,288) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.50 623.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 623.21 Td (94,170) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 508.50 623.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 623.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 607.21 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 233.97 611.29 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.75 607.21 Td (30,904) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.25 607.21 Td (7,702) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.75 607.21 Td (17,423) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.25 607.21 Td (5,779) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 607.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 591.21 Td (Stockholder servicing fee liability ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 176.97 595.29 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.00 591.21 Td (180) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.00 591.21 Td (180) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.50 591.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.50 591.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 591.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 575.21 Td (Capital lease obligations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.75 575.21 Td (57,066) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.00 575.21 Td (240) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.25 575.21 Td (1,315) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.25 575.21 Td (1,670) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 575.21 Td (53,841) Tj ET Q 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 ( ) Tj ET Q q 0 0 0 rg BT 57.12 546.65 Td (Amounts include principal payments only) Tj ET Q q 0 0 0 rg BT 190.80 546.65 Td (. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 537.67 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 534.05 Td ( Projected interest payments are based on the outstanding principal amounts and interest rates in ef) Tj ET Q q 0 0 0 rg BT 371.10 534.05 Td (fect at ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.86 534.05 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.53 534.05 Td (. ) Tj ET Q q 0 0 0 rg BT 443.38 534.05 Td (W) Tj ET Q q 0 0 0 rg BT 450.29 534.05 Td (e incurred interest expense of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.47 534.05 Td ($8.1 ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 524.45 Td (million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 72.61 524.45 Td (, excluding amortization of deferred financing costs of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.77 524.45 Td ($0.8 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 287.89 524.45 Td ( and unrealized ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 338.75 524.45 Td (gain) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.52 524.45 Td ( on interest rate cap of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.82 524.45 Td ($10,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.82 524.45 Td ( and including interest capitalized ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 514.85 Td (of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.16 514.85 Td ($2.6 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 97.28 514.85 Td ( for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 122.38 514.85 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 131.71 514.85 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 180.38 514.85 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 225.04 514.85 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 505.88 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 502.25 Td ( Stockholder servicing fee is an annual fee of 1.0% of the purchase price per Class ) Tj ET Q q 0 0 0 rg BT 320.88 502.25 Td (T) Tj ET Q q 0 0 0 rg BT 325.62 502.25 Td ( share sold in our primary public of) Tj ET Q q 0 0 0 rg BT 438.56 502.25 Td (fering for services rendered to Class ) Tj ET Q q 0 0 0 rg BT 556.15 502.25 Td (T) Tj ET Q q 0 0 0 rg BT 560.89 502.25 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 492.65 Td (stockholders by the broker dealer of record after the initial sale of the Class ) Tj ET Q q 0 0 0 rg BT 292.38 492.65 Td (T) Tj ET Q q 0 0 0 rg BT 297.12 492.65 Td ( share. ) Tj ET Q q 0 0 0 rg BT 319.86 492.65 Td (The stockholder servicing fee will accrue daily and be paid monthly in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 483.05 Td (arrears for up to the fourth anniversary of the issuance of the Class ) Tj ET Q q 0 0 0 rg BT 264.62 483.05 Td (T) Tj ET Q q 0 0 0 rg BT 269.36 483.05 Td ( share. ) Tj ET Q q 0 0 0 rg BT 292.09 483.05 Td (The amount shown is the amount estimated as payable as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.05 483.05 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 530.71 483.05 Td ( based on ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 473.45 Td (the terms of the Class ) Tj ET Q q 0 0 0 rg BT 120.68 473.45 Td (T) Tj ET Q q 0 0 0 rg BT 125.42 473.45 Td ( shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 449.45 Td (In addition, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.26 449.45 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.09 449.45 Td (, we expect to incur approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.43 449.45 Td ($10.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.32 449.45 Td ( of development costs related to 210 ) Tj ET Q q 0 0 0 rg BT 540.60 449.45 Td (W) Tj ET Q q 0 0 0 rg BT 549.24 449.45 Td (est ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.45 Td (31st Street.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 419.45 Td (Results of Operations) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 401.45 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 386.45 Td ( ) Tj ET Q q 0 0 0 rg BT 73.95 386.45 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 386.45 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.22 386.45 Td (, we had invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.42 386.45 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.42 386.45 Td ( hotel properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.40 386.45 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.40 386.45 Td ( of) Tj ET Q q 0 0 0 rg BT 347.05 386.45 Td (fice properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.52 386.45 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.96 386.45 Td ( apartment building, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.28 386.45 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.72 386.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.45 Td (investment in an unconsolidated entity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.35 374.45 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.79 374.45 Td ( first mortgage loan. ) Tj ET Q q 0 0 0 rg BT 320.83 374.45 Td (Additionally) Tj ET Q q 0 0 0 rg BT 370.73 374.45 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.39 374.45 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.22 374.45 Td (, we had entered into a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.45 Td (joint venture to develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.25 362.45 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.69 362.45 Td ( retail property) Tj ET Q q 0 0 0 rg BT 220.46 362.45 Td (, which was under construction. ) Tj ET Q q 0 0 0 rg BT 349.60 362.45 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.05 362.45 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.88 362.45 Td (, we had invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.08 362.45 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.08 362.45 Td ( hotel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.45 Td (properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.49 350.45 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.15 350.45 Td ( of) Tj ET Q q 0 0 0 rg BT 121.79 350.45 Td (fice properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.27 350.45 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.70 350.45 Td ( apartment building, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.02 350.45 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 350.45 Td ( investment in an unconsolidated entity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.81 350.45 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.25 350.45 Td ( investment in real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.45 Td (estate equity securities. ) Tj ET Q q 0 0 0 rg BT 144.47 338.45 Td (Additionally) Tj ET Q q 0 0 0 rg BT 194.37 338.45 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.03 338.45 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.86 338.45 Td (, we had entered into a joint venture to develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.63 338.45 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.07 338.45 Td ( retail property) Tj ET Q q 0 0 0 rg BT 540.84 338.45 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.45 Td (which is currently under construction. ) Tj ET Q q 0 0 0 rg BT 203.72 326.45 Td (W) Tj ET Q q 0 0 0 rg BT 212.36 326.45 Td (e funded the acquisitions of these investments with proceeds from our terminated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.45 Td (private of) Tj ET Q q 0 0 0 rg BT 87.91 314.45 Td (fering, initial public of) Tj ET Q q 0 0 0 rg BT 178.26 314.45 Td (fering and debt financing. Our results of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.58 314.45 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.57 314.45 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.01 314.45 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.68 314.45 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.50 314.45 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.45 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 302.45 Td ( are not indicative of those in future periods as we commenced operations on September 4, 2014 in connection with our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.45 Td (first investment and we have acquired additional investments since that time. In general, we expect that our revenue and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.45 Td (expenses related to our portfolio will increase in future periods as our development of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.95 278.45 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.39 278.45 Td ( retail property is completed and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.45 Td (occupancies at our properties stabilize as discussed below) Tj ET Q q 0 0 0 rg BT 280.16 266.45 Td (. ) Tj ET Q q 0 0 0 rg BT 284.61 266.45 Td (Additionally) Tj ET Q q 0 0 0 rg BT 334.51 266.45 Td (, our investment objectives include acquiring properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.45 Td (with significant possibilities for short-term capital appreciation, such as non-stabilized properties, properties with moderate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.45 Td (vacancies or near) Tj ET Q q 0 0 0 rg BT 118.70 242.45 Td (-term lease rollovers, poorly managed and positioned properties, properties owned by distressed sellers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.45 Td (built-to-suit properties. ) Tj ET Q q 0 0 0 rg BT 146.16 230.45 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.60 230.45 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.43 230.45 Td (, the occupancy in our properties has not been stabilized. However) Tj ET Q q 0 0 0 rg BT 492.05 230.45 Td (, due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.45 Td (amount of near) Tj ET Q q 0 0 0 rg BT 109.83 218.45 Td (-term lease expirations, we do not put significant emphasis on quarterly changes in occupancy \(positive or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.45 Td (negative\) in the short run. Our underwriting and valuations are generally more sensitive to “terminal values” that may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.45 Td (realized upon the disposition of the assets in the portfolio and less sensitive to ongoing cash flows generated by the portfolio in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.45 Td (the years leading up to an eventual sale. ) Tj ET Q q 0 0 0 rg BT 211.20 182.45 Td (There are no guarantees that occupancies of our assets will increase, or that we will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.45 Td (recognize a gain on the sale of our assets. In general, we expect that our income and expenses related to our portfolio will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.45 Td (increase in future periods as a result of leasing additional space, improving our properties and acquiring additional assets but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.45 Td (decrease due to disposition activity) Tj ET Q q 0 0 0 rg BT 189.37 146.45 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 33.60 Td (38) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 72 702.7669921875 m 148.9482421875 702.7669921875 l s q 0 0 0 rg BT 72.00 704.10 Td (Comparison of the ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 148.9482421875 702.7669921875 m 169.1240234375 702.7669921875 l s q 0 0 0 rg BT 148.95 704.10 Td (thr) Tj ET Q q 0 0 0 rg BT 160.25 704.10 Td (ee) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 169.1240234375 702.7669921875 m 229.392578125 702.7669921875 l s q 0 0 0 rg BT 169.12 704.10 Td ( months ended ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 229.392578125 702.7669921875 m 285.76953125 702.7669921875 l s q 0 0 0 rg BT 229.39 704.10 Td (June 30, 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 q 0 0 0 rg BT 467.86 704.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 689.10 Td (The following table provides summary information about our results of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.75 689.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.74 689.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.56 689.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (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 50.00 624.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 624.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 624.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 624.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 624.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 624.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 624.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 624.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 624.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 624.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 624.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 624.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 624.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 598.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 598.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 598.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 598.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 598.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 598.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 598.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 598.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 598.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 598.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 598.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 598.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 598.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 572.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 572.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 572.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 572.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 572.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 572.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 572.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 572.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 572.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 572.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 572.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 572.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 572.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 546.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 546.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 546.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 546.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 546.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 546.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 546.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 546.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 546.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 546.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 546.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 546.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 546.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 520.60 179.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 520.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 520.60 42.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 520.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 520.60 41.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 520.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 520.60 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 520.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 520.60 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 520.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 520.60 69.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 520.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 520.60 68.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 495.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 495.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 495.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 495.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 495.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 495.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 495.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 495.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 495.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 495.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 495.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 495.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 495.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 469.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 469.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 469.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 469.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 469.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 469.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 469.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 469.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 469.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 469.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 469.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 469.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 469.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 443.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 443.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 443.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 443.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 443.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 443.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 443.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 443.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 443.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 443.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 443.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 443.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 443.60 68.00 -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 233 642.6 m 275 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 642.6 m 279 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 642.6 m 320 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 642.6 m 275 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 624.6 m 275 624.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 642.6 m 279 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 642.6 m 320 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 624.6 m 320 624.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 624.6 m 369 624.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 624.6 m 418 624.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 624.6 m 491 624.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 624.6 m 563 624.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 624.6 m 275 624.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 624.6 m 320 624.6 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 239.60 654.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 252.79 654.83 Td (ee Months Ended ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 261.75 646.83 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.60 636.83 Td (Incr) Tj ET Q q 0 0 0 rg BT 346.19 636.83 Td (ease) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 328.05 628.83 Td (\(Decr) Tj ET Q q 0 0 0 rg BT 347.07 628.83 Td (ease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.15 636.83 Td (Per) Tj ET Q q 0 0 0 rg BT 388.07 636.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 381.85 628.83 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.65 644.83 Td ($ Change Due to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.75 636.83 Td (Acquisitions/) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.85 628.83 Td (Repayments ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 475.07 632.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 500.15 652.83 Td ($ Change Due to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.60 644.83 Td (Investments Held ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.85 636.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 521.04 636.83 Td (oughout ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.35 628.83 Td (Both Periods ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 548.57 632.46 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 628.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 245.50 628.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 291.00 628.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 615.85 Td (Of) Tj ET Q q 0 0 0 rg BT 60.80 615.85 Td (fice revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 235.50 615.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 615.85 Td (7,361) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 281.50 615.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 615.85 Td (1,782) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 326.50 615.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 615.85 Td (5,579) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.15 615.85 Td (313) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 615.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 424.50 615.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 615.85 Td (5,601) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.50 615.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 615.85 Td (\(22) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 615.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 602.85 Td (Hotel revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 249.75 602.85 Td (10,263) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 602.85 Td (6,470) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 602.85 Td (3,793) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 602.85 Td (59) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 602.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 602.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 602.85 Td (3,793) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 589.85 Td (Apartment revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 589.85 Td (1,803) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 589.85 Td (1,699) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 589.85 Td (104) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.15 589.85 Td (6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 589.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 589.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 589.85 Td (104) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 576.85 Td (Dividend income from real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.80 576.85 Td (36) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 576.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.80 576.85 Td (36) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.70 576.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 576.85 Td (36) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 576.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 563.85 Td (Interest income from real estate loan receivable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.80 563.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 563.85 Td (101) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 563.85 Td (\(101) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 563.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.45 563.85 Td (\(100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.15 563.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.10 563.85 Td (\(101) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 563.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 563.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 550.85 Td (Of) Tj ET Q q 0 0 0 rg BT 60.80 550.85 Td (fice expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 550.85 Td (3,039) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 550.85 Td (597) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 550.85 Td (2,442) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.15 550.85 Td (409) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 550.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 550.85 Td (2,481) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 550.85 Td (\(39) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 550.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 537.85 Td (Hotel expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 537.85 Td (6,265) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 537.85 Td (4,788) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 537.85 Td (1,477) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 537.85 Td (31) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 537.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 537.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 537.85 Td (1,477) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 524.85 Td (Apartment expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 524.85 Td (965) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 524.85 Td (862) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 524.85 Td (103) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 524.85 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 524.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 524.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 524.85 Td (103) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 512.55 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 144.32 512.55 Td (filiate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 512.55 Td (986) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 512.55 Td (577) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 512.55 Td (409) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 512.55 Td (71) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 512.55 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 512.55 Td (347) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 512.55 Td (62) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 499.85 Td (General and administrative expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 499.85 Td (604) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 499.85 Td (772) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 499.85 Td (\(168) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 499.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.45 499.85 Td (\(22) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.15 499.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.70 499.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 499.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 486.85 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 486.85 Td (5,069) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 486.85 Td (2,614) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 486.85 Td (2,455) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 486.85 Td (94) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 486.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 486.85 Td (2,519) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 486.85 Td (\(64) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 486.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 473.85 Td (Interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 473.85 Td (3,407) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 473.85 Td (1,834) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 473.85 Td (1,573) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 473.85 Td (86) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 473.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.70 473.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 473.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 460.85 Td (Other interest income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.80 460.85 Td (91) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 460.85 Td (193) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 460.85 Td (\(102) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 460.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.45 460.85 Td (\(53) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.15 460.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.70 460.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 460.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 447.85 Td (Equity in income of unconsolidated entity) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 447.85 Td (1) Tj ET Q q 0 0 0 rg BT 263.75 447.85 Td (16) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 447.85 Td (13) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 447.85 Td (103) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.15 447.85 Td (792) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 447.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 447.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 447.85 Td (103) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 434.85 Td (Unrealized) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.59 434.85 Td ( gain ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 105.36 434.85 Td (on real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 434.85 Td (400) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 434.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 434.85 Td (400) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.70 434.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 434.85 Td (400) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 434.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 421.85 Td (Income tax ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.26 421.85 Td (benefit) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.80 421.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 421.85 Td (428) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 421.85 Td (\(428) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 421.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.45 421.85 Td (\(100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.15 421.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 421.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 421.85 Td (\(428) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 421.85 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 397.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 393.50 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 393.50 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.25 393.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.91 393.50 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 348.57 393.50 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.11 393.50 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.09 393.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.75 393.50 Td (June 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 513.42 393.50 Td ( related to real ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 383.90 Td (estate and real estate-related investments acquired or repaid on or after ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 277.17 383.90 Td (April) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 294.06 383.90 Td ( 1, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.06 383.90 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 320.06 383.90 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 374.93 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 371.30 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 371.30 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.25 371.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.91 371.30 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 348.57 371.30 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.11 371.30 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.09 371.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.75 371.30 Td (June 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 513.42 371.30 Td ( with respect ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 361.70 Td (to real estate and real estate-related investments owned by us during the entire periods presented.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 337.70 Td (Of) Tj ET Q q 0 0 0 rg BT 80.87 337.70 Td (fice revenues increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.59 337.70 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.48 337.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.85 337.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.84 337.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.67 337.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.50 337.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.27 337.70 Td ($7.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.17 337.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.54 337.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.53 337.70 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.70 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 325.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 325.70 Td ( primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 381.45 325.70 Td (W) Tj ET Q q 0 0 0 rg BT 390.09 325.70 Td (e expect of) Tj ET Q q 0 0 0 rg BT 433.77 325.70 Td (fice revenues to vary in future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.70 Td (periods based on occupancy rates and rental rates of our of) Tj ET Q q 0 0 0 rg BT 284.23 313.70 Td (fice properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 295.70 Td (Hotel revenues increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.45 295.70 Td ($6.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.34 295.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.71 295.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.70 295.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.53 295.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.36 295.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.13 295.70 Td ($10.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.03 295.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.40 295.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.39 295.70 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.70 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 283.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 283.70 Td ( primarily due to the impact of Hurricane Matthew in October 2016, the result of which placed certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.70 Td (rooms at Springmaid Beach Resort out of service during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.22 271.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.21 271.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.04 271.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.87 271.70 Td (. ) Tj ET Q q 0 0 0 rg BT 433.68 271.70 Td (W) Tj ET Q q 0 0 0 rg BT 442.32 271.70 Td (e expect hotel revenues to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 259.70 Td (vary in future periods based on occupancy and room rates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 241.70 Td (Interest income from our real estate loan receivable, recognized using the interest method, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.46 241.70 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.35 241.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.73 241.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.72 241.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.70 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 229.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 229.70 Td (. ) Tj ET Q q 0 0 0 rg BT 168.47 229.70 Td (The real estate loan receivable was repaid in full on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.27 229.70 Td (January 12, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.87 229.70 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 211.70 Td (Of) Tj ET Q q 0 0 0 rg BT 80.87 211.70 Td (fice expenses increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.15 211.70 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.04 211.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.42 211.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.40 211.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.23 211.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.06 211.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.83 211.70 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.73 211.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.10 211.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.09 211.70 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.70 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 199.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 199.70 Td ( primarily as a result of the growth in our real estate portfolio. Hotel expenses increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.14 199.70 Td ($4.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.03 199.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.70 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 187.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.36 187.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.19 187.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.02 187.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.80 187.70 Td ($6.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.69 187.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.06 187.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.05 187.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.88 187.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.71 187.70 Td ( primarily due to an increase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.70 Td (in occupancy rates. ) Tj ET Q q 0 0 0 rg BT 128.36 175.70 Td (Apartment expenses increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.41 175.70 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.30 175.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.68 175.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.67 175.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.49 175.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.32 175.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.10 175.70 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.99 175.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.70 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 163.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.36 163.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.19 163.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.02 163.70 Td (. ) Tj ET Q q 0 0 0 rg BT 219.84 163.70 Td (W) Tj ET Q q 0 0 0 rg BT 228.47 163.70 Td (e expect total expenses to vary in future periods based on occupancy rates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 145.70 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 185.28 145.70 Td (filiate increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.29 145.70 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.18 145.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.56 145.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.54 145.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.37 145.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.20 145.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.98 145.70 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.87 145.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.70 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 133.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.36 133.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.19 133.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.02 133.70 Td ( primarily as a result of the growth of our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 465.32 133.70 Td (W) Tj ET Q q 0 0 0 rg BT 473.95 133.70 Td (e expect asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.70 Td (management fees to increase in future periods as a result of any improvements we make to our properties and as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 109.70 Td (owning our investment in real estate equity securities acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.20 109.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.20 109.70 Td ( for an entire period. ) Tj ET Q q 0 0 0 rg BT 416.06 109.70 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.10 109.70 Td ($20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.60 109.70 Td ( of asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 97.70 Td (management fees incurred were payable as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.69 97.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.52 97.70 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 /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 704.10 Td (General and administrative expenses decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.74 704.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.63 704.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.01 704.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.00 704.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.82 704.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.65 704.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.43 704.10 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 562.32 704.10 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 (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.36 692.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.19 692.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.02 692.10 Td (, primarily due to a foreign currency gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.28 692.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.18 692.10 Td ( on our foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (forward contract. ) Tj ET Q q 0 0 0 rg BT 120.67 680.10 Td (W) Tj ET Q q 0 0 0 rg BT 129.31 680.10 Td (e expect general and administrative expenses to fluctuate based on our legal expenses and investment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (disposition activity) Tj ET Q q 0 0 0 rg BT 125.24 668.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 650.10 Td (Depreciation and amortization expenses increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.41 650.10 Td ($2.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.30 650.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.68 650.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.66 650.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.49 650.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.32 650.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.09 650.10 Td ($5.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 638.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.77 638.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.75 638.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.58 638.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.41 638.10 Td ( primarily due to the growth of our real estate portfolio, partially of) Tj ET Q q 0 0 0 rg BT 514.76 638.10 Td (fset by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 626.10 Td (fect of fully amortized assets related to properties held throughout both periods. ) Tj ET Q q 0 0 0 rg BT 378.21 626.10 Td (W) Tj ET Q q 0 0 0 rg BT 386.84 626.10 Td (e expect depreciation and amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (expenses to vary in future periods as a result of a decrease in amortization related to fully amortized tenant origination and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (absorption costs and increase as a result of the development and subsequent operation of 210 ) Tj ET Q q 0 0 0 rg BT 423.38 602.10 Td (W) Tj ET Q q 0 0 0 rg BT 432.02 602.10 Td (est 31st Street.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 584.10 Td (Interest expense increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.88 584.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.78 584.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.15 584.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.14 584.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.96 584.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.79 584.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.57 584.10 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.46 584.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.84 584.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.83 584.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 572.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 572.10 Td ( primarily due to increased borrowings in connection with our acquisition activity and increased one-month ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (LIBOR rates during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.70 560.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.69 560.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.51 560.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.34 560.10 Td (. Excluded from interest expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.24 560.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.13 560.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.57 560.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.46 560.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (of interest capitalized to our construction in progress during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.10 548.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.08 548.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.91 548.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.74 548.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.18 548.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.18 548.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 534.84 548.10 Td (. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (interest expense in future periods will vary based on our level of future borrowings, which will depend on the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (proceeds raised in our ongoing initial public of) Tj ET Q q 0 0 0 rg BT 236.78 524.10 Td (fering, the availability and cost of debt financing and the opportunity to acquire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (real estate and real estate-related investments meeting our investment objectives. ) Tj ET Q q 0 0 0 rg BT 375.03 512.10 Td (The increase in interest expense due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (increases in LIBOR rates would be minimized to the extent rates are above the strike rates on our interest rate cap instruments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 482.10 Td (Unrealized gain on real estate equity securities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.64 482.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.53 482.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.36 482.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.34 482.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.17 482.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.00 482.10 Td (, primarily as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (a result of an increase in share price of our investment in real estate equity securities.) 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 72 450.7669921875 m 148.9482421875 450.7669921875 l s q 0 0 0 rg BT 72.00 452.10 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 450.7669921875 m 160.056640625 450.7669921875 l s q 0 0 0 rg BT 148.95 452.10 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 450.7669921875 m 220.3251953125 450.7669921875 l s q 0 0 0 rg BT 160.06 452.10 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 450.7669921875 m 276.7021484375 450.7669921875 l s q 0 0 0 rg BT 220.33 452.10 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 450.7669921875 m 321.970703125 450.7669921875 l s q 0 0 0 rg BT 276.70 452.10 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 450.7669921875 m 333.0791015625 450.7669921875 l s q 0 0 0 rg BT 321.97 452.10 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 450.7669921875 m 393.34765625 450.7669921875 l s q 0 0 0 rg BT 333.08 452.10 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 450.7669921875 m 449.724609375 450.7669921875 l s q 0 0 0 rg BT 393.35 452.10 Td (June 30, 2017) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 449.72 452.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 437.10 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 432.75 437.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.42 437.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.25 437.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.08 437.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 425.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 425.10 Td ( \(dollar amounts in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 372.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 372.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 372.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 372.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 372.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 372.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 372.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 372.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 372.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 372.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 372.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 372.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 372.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 346.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 346.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 346.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 346.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 346.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 346.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 346.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 346.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 346.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 346.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 346.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 346.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 346.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 320.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 320.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 320.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 320.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 320.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 320.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 320.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 320.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 320.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 320.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 320.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 320.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 320.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 294.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 294.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 294.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 294.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 294.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 294.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 294.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 294.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 294.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 294.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 294.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 294.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 294.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 268.60 179.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 268.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 268.60 42.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 268.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 268.60 41.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 268.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 268.60 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 268.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 268.60 45.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 268.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 268.60 69.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 268.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 268.60 68.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 243.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 243.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 243.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 243.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 243.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 243.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 243.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 243.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 243.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 243.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 243.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 243.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 243.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 217.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 217.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 217.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 217.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 217.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 217.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 217.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 217.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 217.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 217.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 217.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 217.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 217.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 191.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 191.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 191.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 191.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 191.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 191.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 191.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 191.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 191.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 191.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 191.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 191.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 191.60 68.00 -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 233 390.6 m 275 390.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 390.6 m 279 390.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 390.6 m 320 390.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 390.6 m 275 390.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 372.6 m 275 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 390.6 m 279 390.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 390.6 m 320 390.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 372.6 m 320 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 372.6 m 369 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 372.6 m 418 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 372.6 m 491 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 372.6 m 563 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 372.6 m 275 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 372.6 m 320 372.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 394.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 244.40 402.83 Td (Six Months Ended ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 261.75 394.83 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.60 384.83 Td (Incr) Tj ET Q q 0 0 0 rg BT 346.19 384.83 Td (ease) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 328.05 376.83 Td (\(Decr) Tj ET Q q 0 0 0 rg BT 347.07 376.83 Td (ease\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.15 384.83 Td (Per) Tj ET Q q 0 0 0 rg BT 388.07 384.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 381.85 376.83 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.65 392.83 Td ($ Change Due to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.75 384.83 Td (Acquisitions/) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.85 376.83 Td (Repayments ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 475.07 380.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 500.15 400.83 Td ($ Change Due to ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.60 392.83 Td (Investments Held ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.85 384.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 521.04 384.83 Td (oughout ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.35 376.83 Td (Both Periods ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 548.57 380.46 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 376.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 245.50 376.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 291.00 376.83 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 363.85 Td (Of) Tj ET Q q 0 0 0 rg BT 60.80 363.85 Td (fice revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 235.50 363.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 249.75 363.85 Td (14,960) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 281.50 363.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 363.85 Td (3,606) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 326.50 363.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 343.75 363.85 Td (1) Tj ET Q q 0 0 0 rg BT 347.75 363.85 Td (1,354) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.15 363.85 Td (315) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 363.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 424.50 363.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 363.85 Td (1) Tj ET Q q 0 0 0 rg BT 469.80 363.85 Td (1,286) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.50 363.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 363.85 Td (68) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 350.85 Td (Hotel revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 249.75 350.85 Td (15,773) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 294.75 350.85 Td (1) Tj ET Q q 0 0 0 rg BT 298.75 350.85 Td (1,313) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 350.85 Td (4,460) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 350.85 Td (39) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 350.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 350.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 350.85 Td (4,460) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 337.85 Td (Apartment revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 337.85 Td (3,519) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 337.85 Td (3,438) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.80 337.85 Td (81) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.15 337.85 Td (2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 337.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 337.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 337.85 Td (81) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 324.85 Td (Dividend income from real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.80 324.85 Td (36) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 324.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.80 324.85 Td (36) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.70 324.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 324.85 Td (36) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 324.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 311.85 Td (Interest income from real estate loan receivable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.80 311.85 Td (10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 311.85 Td (200) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 311.85 Td (\(190) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 311.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.45 311.85 Td (\(95) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.15 311.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.10 311.85 Td (\(190) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 311.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 311.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 298.85 Td (Of) Tj ET Q q 0 0 0 rg BT 60.80 298.85 Td (fice expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 298.85 Td (5,710) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 298.85 Td (1,177) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 298.85 Td (4,533) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.15 298.85 Td (385) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 298.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 298.85 Td (4,630) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 298.85 Td (\(97) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 298.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 285.85 Td (Hotel expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 249.75 285.85 Td (1) Tj ET Q q 0 0 0 rg BT 253.75 285.85 Td (1,055) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 285.85 Td (9,032) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 285.85 Td (2,023) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 285.85 Td (22) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 285.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 285.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 285.85 Td (2,023) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 272.85 Td (Apartment expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 272.85 Td (1,882) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 272.85 Td (1,698) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 272.85 Td (184) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 272.85 Td (1) Tj ET Q q 0 0 0 rg BT 404.15 272.85 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 272.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 272.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 272.85 Td (184) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 260.55 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 144.32 260.55 Td (filiate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 260.55 Td (1,920) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 260.55 Td (1,081) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 260.55 Td (839) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 260.55 Td (78) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 260.55 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 260.55 Td (684) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 260.55 Td (155) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 247.85 Td (General and administrative expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 247.85 Td (1,244) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 247.85 Td (1,346) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 247.85 Td (\(102) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 247.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.45 247.85 Td (\(8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.15 247.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.70 247.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 247.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 234.85 Td (Depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 249.75 234.85 Td (10,172) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 234.85 Td (5,467) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 234.85 Td (4,705) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 234.85 Td (86) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 234.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 234.85 Td (5,084) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 234.85 Td (\(379) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 234.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 221.85 Td (Interest expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 221.85 Td (6,304) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 221.85 Td (3,544) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 221.85 Td (2,760) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 221.85 Td (78) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 221.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.70 221.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 221.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 208.85 Td (Other interest income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 208.85 Td (152) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 208.85 Td (289) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 208.85 Td (\(137) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 208.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.45 208.85 Td (\(47) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.15 208.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.70 208.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 208.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 195.85 Td (Equity in income of unconsolidated entity) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 195.85 Td (131) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 195.85 Td (26) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 195.85 Td (105) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.15 195.85 Td (404) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 195.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 195.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 195.85 Td (105) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 182.85 Td (Unrealized) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 87.59 182.85 Td ( gain ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 105.36 182.85 Td (on real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 182.85 Td (314) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 182.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 182.85 Td (314) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.70 182.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 475.80 182.85 Td (314) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 182.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 169.85 Td (Income tax ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.26 169.85 Td (benefit) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 267.80 169.85 Td (9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 169.85 Td (437) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 169.85 Td (\(428) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 169.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.45 169.85 Td (\(98) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.15 169.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 169.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 169.85 Td (\(428) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 169.85 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 145.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 141.50 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 141.50 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.59 141.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 297.25 141.50 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.92 141.50 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.45 141.50 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.79 141.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.45 141.50 Td (June 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.11 141.50 Td ( related to real ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 131.90 Td (estate and real estate-related investments acquired or repaid on or after ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 277.61 131.90 Td (January) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.49 131.90 Td ( 1, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.49 131.90 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.49 131.90 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 122.92 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 119.30 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 119.30 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.59 119.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 297.25 119.30 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.92 119.30 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.45 119.30 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.79 119.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.45 119.30 Td (June 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.11 119.30 Td ( with respect to ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 109.70 Td (real estate and real estate-related investments owned by us during the entire periods presented.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 85.70 Td (Of) Tj ET Q q 0 0 0 rg BT 80.87 85.70 Td (fice revenues increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.59 85.70 Td ($3.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.48 85.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.85 85.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.52 85.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.35 85.70 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.18 85.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.96 85.70 Td ($15.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.85 85.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.23 85.70 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.90 85.70 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.70 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 73.70 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 73.70 Td ( primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 381.45 73.70 Td (W) Tj ET Q q 0 0 0 rg BT 390.09 73.70 Td (e expect of) Tj ET Q q 0 0 0 rg BT 433.77 73.70 Td (fice revenues to vary in future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 61.70 Td (periods based on occupancy rates and rental rates of our of) Tj ET Q q 0 0 0 rg BT 284.23 61.70 Td (fice 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 70.50 704.10 Td (Hotel revenues increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.45 704.10 Td ($1) Tj ET Q q 0 0 0 rg BT 205.08 704.10 Td (1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.97 704.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.34 704.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.01 704.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.84 704.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.67 704.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.45 704.10 Td ($15.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.34 704.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.72 704.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.39 704.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 692.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 692.10 Td ( primarily due to the impact of Hurricane Matthew in October 2016, the result of which placed certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (rooms at Springmaid Beach Resort out of service during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.22 680.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.89 680.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.72 680.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.55 680.10 Td (. ) Tj ET Q q 0 0 0 rg BT 425.37 680.10 Td (W) Tj ET Q q 0 0 0 rg BT 434.01 680.10 Td (e expect hotel revenues to vary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (in future periods based on occupancy and room rates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 650.10 Td (Interest income from our real estate loan receivable, recognized using the interest method, decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.26 650.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.15 650.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 638.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.89 638.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.71 638.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.54 638.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.32 638.10 Td ($10,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.82 638.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.20 638.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.87 638.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.69 638.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.52 638.10 Td ( as a result of the real estate loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (receivable being repaid in full on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.45 626.10 Td (January 12, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.04 626.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 608.10 Td (Of) Tj ET Q q 0 0 0 rg BT 80.87 608.10 Td (fice expenses increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.15 608.10 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.04 608.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.42 608.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.09 608.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.91 608.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.74 608.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.52 608.10 Td ($5.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.41 608.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.79 608.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.46 608.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 596.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 596.10 Td ( primarily as a result of the growth in our real estate portfolio. Hotel expenses increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.14 596.10 Td ($9.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.03 596.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 584.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.05 584.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.87 584.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.70 584.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.48 584.10 Td ($1) Tj ET Q q 0 0 0 rg BT 229.11 584.10 Td (1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.00 584.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.38 584.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.05 584.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.87 584.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.70 584.10 Td ( primarily due to an increase in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (occupancy rates. ) Tj ET Q q 0 0 0 rg BT 118.08 572.10 Td (Apartment expenses increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.13 572.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.03 572.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.40 572.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.07 572.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.90 572.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.73 572.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.51 572.10 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.40 572.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 560.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.89 560.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.71 560.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.54 560.10 Td (. ) Tj ET Q q 0 0 0 rg BT 197.36 560.10 Td (W) Tj ET Q q 0 0 0 rg BT 206.00 560.10 Td (e expect total expenses to vary in future periods based on occupancy rates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 542.10 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 185.28 542.10 Td (filiate increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.29 542.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.18 542.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.56 542.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.23 542.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.05 542.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.88 542.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.66 542.10 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.55 542.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 530.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.89 530.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.71 530.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.54 530.10 Td ( primarily as a result of the growth of our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 442.84 530.10 Td (W) Tj ET Q q 0 0 0 rg BT 451.48 530.10 Td (e expect asset management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (fees to increase in future periods as a result of any improvements we make to our properties and as a result of owning our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (investment in real estate equity securities acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.87 506.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.87 506.10 Td ( for an entire period. ) Tj ET Q q 0 0 0 rg BT 367.73 506.10 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.77 506.10 Td ($20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.27 506.10 Td ( of asset management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (fees incurred were payable as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.10 494.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.93 494.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 476.10 Td (General and administrative expenses decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.74 476.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.63 476.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.01 476.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.68 476.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.51 476.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.34 476.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.11 476.10 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.01 476.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 464.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.05 464.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.87 464.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.70 464.10 Td (, primarily due to a foreign currency gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.97 464.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.86 464.10 Td ( on our foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (forward contract. ) Tj ET Q q 0 0 0 rg BT 120.67 452.10 Td (W) Tj ET Q q 0 0 0 rg BT 129.31 452.10 Td (e expect general and administrative expenses to fluctuate based on our legal expenses and investment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (disposition activity) Tj ET Q q 0 0 0 rg BT 125.24 440.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 422.10 Td (Depreciation and amortization expenses increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.41 422.10 Td ($5.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.30 422.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.68 422.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.35 422.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.17 422.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 422.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.78 422.10 Td ($10.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 410.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.77 410.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.44 410.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.26 410.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.09 410.10 Td ( primarily due to the growth of our real estate portfolio, partially of) Tj ET Q q 0 0 0 rg BT 506.44 410.10 Td (fset by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 398.10 Td (fect of fully amortized assets related to properties held throughout both periods. ) Tj ET Q q 0 0 0 rg BT 378.21 398.10 Td (W) Tj ET Q q 0 0 0 rg BT 386.84 398.10 Td (e expect depreciation and amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (expenses to vary in future periods as a result of a decrease in amortization related to fully amortized tenant origination and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (absorption costs and increase as a result of the development and subsequent operation of 210 ) Tj ET Q q 0 0 0 rg BT 423.38 374.10 Td (W) Tj ET Q q 0 0 0 rg BT 432.02 374.10 Td (est 31st Street.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 356.10 Td (Interest expense increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.88 356.10 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.78 356.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.15 356.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.82 356.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.65 356.10 Td (June 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.48 356.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.26 356.10 Td ($6.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 356.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.53 356.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.20 356.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 344.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 344.10 Td ( primarily due to increased borrowings in connection with our acquisition activity and increased one-month ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (LIBOR rates during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.70 332.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.37 332.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.20 332.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.03 332.10 Td (. Excluded from interest expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.92 332.10 Td ($2.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.81 332.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.25 332.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.14 332.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (interest capitalized to our construction in progress during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.27 320.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.94 320.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.76 320.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.59 320.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.03 320.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.03 320.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 515.69 320.10 Td (. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (interest expense in future periods will vary based on our level of future borrowings, which will depend on the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (proceeds raised in our ongoing initial public of) Tj ET Q q 0 0 0 rg BT 236.78 296.10 Td (fering, the availability and cost of debt financing and the opportunity to acquire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (real estate and real estate-related investments meeting our investment objectives. ) Tj ET Q q 0 0 0 rg BT 375.03 284.10 Td (The increase in interest expense due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (increases in LIBOR rates would be minimized to the extent rates are above the strike rates on our interest rate cap instruments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 254.10 Td (Unrealized gain on real estate equity securities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.64 254.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.53 254.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.36 254.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.03 254.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.85 254.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.68 254.10 Td (, primarily as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (result of an increase in share price of our investment in real estate equity securities.) 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 /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Funds fr) Tj ET Q q 0 0 0 rg BT 86.27 704.25 Td (om Operations, Modified Funds fr) Tj ET Q q 0 0 0 rg BT 233.04 704.25 Td (om Operations and ) Tj ET Q q 0 0 0 rg BT 317.22 704.25 Td (Adjusted Modified Funds fr) Tj ET Q q 0 0 0 rg BT 436.78 704.25 Td (om Operations) 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 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 510.02 686.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 674.25 Td (e compute FFO in accordance with the current National ) Tj ET Q q 0 0 0 rg BT 282.79 674.25 Td (Association of Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 437.84 674.25 Td (T) Tj ET Q q 0 0 0 rg BT 443.60 674.25 Td (rusts \(“NAREIT”\) definition. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (FFO represents net income, excluding gains and losses from sales of operating real estate assets \(which can vary among owners ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (of identical assets in similar conditions based on historical cost accounting and useful-life estimates\), impairment losses on real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (estate assets, depreciation and amortization of real estate assets, and adjustments for unconsolidated partnerships and joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (ventures. ) Tj ET Q q 0 0 0 rg BT 90.70 626.25 Td (W) Tj ET Q q 0 0 0 rg BT 99.33 626.25 Td (e believe FFO facilitates comparisons of operating performance between periods and among other REIT) Tj ET Q q 0 0 0 rg BT 515.99 626.25 Td (s. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (However) Tj ET Q q 0 0 0 rg BT 85.75 614.25 Td (, our computation of FFO may not be comparable to other REIT) Tj ET Q q 0 0 0 rg BT 341.66 614.25 Td (s that do not define FFO in accordance with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (NAREIT) Tj ET Q q 0 0 0 rg BT 85.98 602.25 Td ( definition or that interpret the current NAREIT) Tj ET Q q 0 0 0 rg BT 276.57 602.25 Td ( definition dif) Tj ET Q q 0 0 0 rg BT 331.38 602.25 Td (ferently than we do. Our management believes that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (historical cost accounting for real estate assets in accordance with U.S. generally accepted accounting principles \(“GAAP”\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (historically risen or fallen with market conditions, many industry investors and analysts have considered the presentation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (operating results for real estate companies that use historical cost accounting to be insuf) Tj ET Q q 0 0 0 rg BT 400.60 554.25 Td (ficient by themselves. ) Tj ET Q q 0 0 0 rg BT 492.52 554.25 Td (As a result, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (believe that the use of FFO, together with the required GAAP) Tj ET Q q 0 0 0 rg BT 296.02 542.25 Td ( presentations, provides a more complete understanding of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (performance relative to our competitors and provides a more informed and appropriate basis on which to make decisions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (involving operating, financing, and investing activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 500.25 Td (Changes in accounting rules have resulted in a substantial increase in the number of non-operating and non-cash items ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (included in the calculation of FFO. ) Tj ET Q q 0 0 0 rg BT 193.92 488.25 Td (As a result, our management also uses modified funds from operations \(“MFFO”\) as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.25 Td (indicator of our ongoing performance as well as our dividend sustainability) Tj ET Q q 0 0 0 rg BT 349.89 476.25 Td (. MFFO excludes from FFO: acquisition fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.25 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 49.50 452.25 Td (contingent purchase price obligations; amounts relating to straight-line rents and amortization of above- and below-market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.25 Td (intangible lease assets and liabilities; accretion of discounts and amortization of premiums on debt investments; amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (closing costs relating to debt investments; impairments of real estate-related investments; mark-to-market adjustments included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (in net income; and gains or losses included in net income for the extinguishment or sale of debt or hedges. ) Tj ET Q q 0 0 0 rg BT 479.22 416.25 Td (W) Tj ET Q q 0 0 0 rg BT 487.85 416.25 Td (e compute MFFO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 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 501.62 404.25 Td (Alternatives ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (\(“IP) Tj ET Q q 0 0 0 rg BT 65.24 392.25 Td (A”\) in November 2010 as interpreted by management. Our computation of MFFO may not be comparable to other REIT) Tj ET Q q 0 0 0 rg BT 549.97 392.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (that do not compute MFFO in accordance with the current IP) Tj ET Q q 0 0 0 rg BT 292.97 380.25 Td (A) Tj ET Q q 0 0 0 rg BT 299.64 380.25 Td ( definition or that interpret the current IP) Tj ET Q q 0 0 0 rg BT 461.72 380.25 Td (A) Tj ET Q q 0 0 0 rg BT 468.39 380.25 Td ( definition dif) Tj ET Q q 0 0 0 rg BT 523.20 380.25 Td (ferently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (than we do. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 350.25 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 49.50 338.25 Td (well as our dividend sustainability) Tj ET Q q 0 0 0 rg BT 186.05 338.25 Td (. ) Tj ET Q q 0 0 0 rg BT 193.00 338.25 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 49.50 326.25 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 73.50 308.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 308.25 Td (e believe that MFFO and ) Tj ET Q q 0 0 0 rg BT 184.07 308.25 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 49.50 296.25 Td (exclude costs that management considers more reflective of investing activities and other non-operating items included in FFO. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (Management believes that excluding acquisition costs \(to the extent that such costs have been recorded as operating expenses\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.25 Td (from MFFO and ) Tj ET Q q 0 0 0 rg BT 117.56 272.25 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 49.50 260.25 Td (management’) Tj ET Q q 0 0 0 rg BT 103.37 260.25 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 49.50 248.25 Td (MFFO and ) Tj ET Q q 0 0 0 rg BT 95.62 248.25 Td (Adjusted MFFO also exclude non-cash items such as straight-line rental revenue. ) Tj ET Q q 0 0 0 rg BT 425.27 248.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 475.17 248.25 Td (, we believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.25 Td (MFFO and ) Tj ET Q q 0 0 0 rg BT 95.62 236.25 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 49.50 224.25 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 49.50 212.25 Td (defined by GAAP) Tj ET Q q 0 0 0 rg BT 120.60 212.25 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 49.50 200.25 Td (operating performance of our portfolio with other non-traded REIT) Tj ET Q q 0 0 0 rg BT 317.60 200.25 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 49.50 188.25 Td (acquisition periods and tar) Tj ET Q q 0 0 0 rg BT 155.13 188.25 Td (geted exit strategies. MFFO, or an equivalent measure, is routinely reported by non-traded REIT) Tj ET Q q 0 0 0 rg BT 542.93 188.25 Td (s, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (and we believe often used by analysts and investors for comparison purposes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 158.25 Td (FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 142.97 158.25 Td (Adjusted MFFO are non-GAAP) Tj ET Q q 0 0 0 rg BT 271.21 158.25 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 49.50 146.25 Td (GAAP) Tj ET Q q 0 0 0 rg BT 75.62 146.25 Td (. Net income as defined by GAAP) Tj ET Q q 0 0 0 rg BT 214.66 146.25 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 49.50 134.25 Td (MFFO and ) Tj ET Q q 0 0 0 rg BT 95.62 134.25 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 49.50 122.25 Td (depreciation and amortization and the other items described above. ) Tj ET Q q 0 0 0 rg BT 321.90 122.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 371.24 122.25 Td (, FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 445.71 122.25 Td (Adjusted MFFO should not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.25 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 98.25 Td (FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 118.97 98.25 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 98.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.25 Td (and should not be considered an indication of our liquidity) Tj ET Q q 0 0 0 rg BT 282.97 86.25 Td (. ) Tj ET Q q 0 0 0 rg BT 290.29 86.25 Td (W) Tj ET Q q 0 0 0 rg BT 298.93 86.25 Td (e believe FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 406.71 86.25 Td (Adjusted MFFO, in addition to net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.25 Td (income and cash flows from operating activities as defined by GAAP) Tj ET Q q 0 0 0 rg BT 326.10 74.25 Td (, are meaningful supplemental performance measures.) 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 73.50 704.10 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 49.50 692.10 Td (market leases and mark-to-market adjustments included in net income, are the most significant adjustments for the periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (presented. ) Tj ET Q q 0 0 0 rg BT 95.13 680.10 Td (W) Tj ET Q q 0 0 0 rg BT 103.77 680.10 Td (e have excluded these items based on the following economic considerations:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 662.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 662.10 Td (Adjustments for straight-line r) Tj ET Q q 0 0 0 rg BT 211.02 662.10 Td (ent. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.24 662.10 Td ( ) Tj ET Q q 0 0 0 rg BT 230.56 662.10 Td (These are adjustments to rental revenue as required by GAAP) Tj ET Q q 0 0 0 rg BT 477.60 662.10 Td ( to recognize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 650.10 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 439.68 650.10 Td (W) Tj ET Q q 0 0 0 rg BT 448.32 650.10 Td (e have excluded these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 638.10 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 90.00 626.10 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 90.00 614.10 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 72.00 599.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 599.10 Td (Amortization of above- and below-market leases.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.64 599.10 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 90.00 587.10 Td (lease related costs that are excluded from FFO, GAAP) Tj ET Q q 0 0 0 rg BT 307.62 587.10 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 90.00 575.10 Td (liabilities diminishes predictably over time and requires that these char) Tj ET Q q 0 0 0 rg BT 372.79 575.10 Td (ges be recognized currently in revenue. Since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 563.10 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 90.00 551.10 Td (believes that by excluding these char) Tj ET Q q 0 0 0 rg BT 237.27 551.10 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 90.00 539.10 Td (of the real estate; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 524.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 524.10 Td (Mark to Market adjustments included in net income. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.90 524.10 Td (These are fair value adjustments to derivative instruments and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 512.10 Td (real estate equity securities. ) Tj ET Q q 0 0 0 rg BT 202.83 512.10 Td (W) Tj ET Q q 0 0 0 rg BT 211.46 512.10 Td (e have excluded these adjustments in our calculation of MFFO to more appropriately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 500.10 Td (reflect core operating performance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 476.10 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 49.50 464.10 Td (which are capitalized with respect to certain renovation projects. ) Tj ET Q q 0 0 0 rg BT 312.26 464.10 Td (W) Tj ET Q q 0 0 0 rg BT 320.90 464.10 Td (e have included adjustments for the costs incurred necessary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (to bring these investments to their intended use, as these costs are recurring operating costs that are capitalized in accordance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (with GAAP) Tj ET Q q 0 0 0 rg BT 96.63 440.10 Td ( and not reflected in our net income \(loss\), FFO and MFFO. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 422.10 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 499.50 422.10 Td (, is presented in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (the following table, along with our calculations of MFFO and ) Tj ET Q q 0 0 0 rg BT 298.07 410.10 Td (Adjusted MFFO, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.80 410.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.78 410.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.22 410.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.89 410.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.71 410.10 Td (June 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 398.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 398.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 398.10 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 50.00 351.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 351.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 351.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 351.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 351.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 351.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 351.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 351.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 351.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 327.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 327.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 327.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 327.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 327.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 327.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 327.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 327.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 327.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 303.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 303.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 303.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 303.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 303.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 303.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 303.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 303.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 303.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 279.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 279.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 279.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 279.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 279.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 279.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 279.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 279.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 279.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 255.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 255.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 255.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 255.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 255.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 255.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 255.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 255.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 255.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 231.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 231.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 231.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 231.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 231.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 231.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 231.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 231.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 231.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 207.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 207.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 207.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 207.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 207.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 207.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 207.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 207.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 207.60 55.00 -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 329 363.6 m 385 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 363.6 m 445 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 363.6 m 504 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 363.6 m 563 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 363.6 m 385 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 351.6 m 385 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 363.6 m 389 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 363.6 m 445 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 351.6 m 445 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 363.6 m 504 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 351.6 m 504 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 363.6 m 508 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 363.6 m 563 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 351.6 m 563 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 351.6 m 385 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 351.6 m 445 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 351.6 m 504 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 351.6 m 563 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 291.6 m 385 291.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 291.6 m 445 291.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 291.6 m 504 291.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 291.6 m 563 291.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 291.6 m 385 291.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 291.6 m 445 291.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 291.6 m 504 291.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 291.6 m 563 291.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 219.60000000000002 m 385 219.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 219.60000000000002 m 445 219.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 219.60000000000002 m 504 219.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 219.60000000000002 m 563 219.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 207.60000000000002 m 385 207.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 207.60000000000002 m 445 207.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 207.60000000000002 m 504 207.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 207.60000000000002 m 563 207.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 195.60000000000002 m 385 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 195.60000000000002 m 445 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 195.60000000000002 m 385 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 184.60000000000002 m 385 184.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 182.60000000000002 m 385 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 195.60000000000002 m 445 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 184.60000000000002 m 445 184.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 182.60000000000002 m 445 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 195.60000000000002 m 504 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 184.60000000000002 m 504 184.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 182.60000000000002 m 504 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 195.60000000000002 m 563 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 184.60000000000002 m 563 184.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 182.60000000000002 m 563 182.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.70 375.83 Td (For) Tj ET Q q 0 0 0 rg BT 349.07 375.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 363.58 375.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 376.78 375.83 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.25 367.83 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.45 375.83 Td (For) Tj ET Q q 0 0 0 rg BT 472.82 375.83 Td ( the Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.25 367.83 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.50 355.68 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.50 355.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 355.68 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.00 355.68 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 343.55 Td (Net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.05 343.55 Td ( loss ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 80.50 343.55 Td (attributable to common stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.50 343.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.10 343.55 Td (\(304) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 343.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.50 343.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.10 343.55 Td (\(1,280) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 343.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.50 343.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.10 343.55 Td (\(3,170) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 343.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.50 343.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 343.55 Td (\(3,728) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 343.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 331.55 Td (Depreciation of real estate assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 331.55 Td (3,228) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 331.55 Td (1,746) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.80 331.55 Td (6,415) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 331.55 Td (3,454) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 319.55 Td (Amortization of lease-related costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 319.55 Td (1,841) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.80 319.55 Td (868) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.80 319.55 Td (3,757) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 319.55 Td (2,013) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 307.55 Td (Adjustments for noncontrolling interests ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 196.04 311.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.10 307.55 Td (\(226) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 307.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.10 307.55 Td (\(172) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 307.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.10 307.55 Td (\(450) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 307.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 307.55 Td (\(368) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 307.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 295.55 Td (Adjustments for investment in unconsolidated entity ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 234.25 299.18 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.10 295.55 Td (\(18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 295.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 295.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.10 295.55 Td (\(18) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 295.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 295.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 283.55 Td (FFO attributable to common stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 283.55 Td (4,521) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 283.55 Td (1,162) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.80 283.55 Td (6,534) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 283.55 Td (1,371) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 271.55 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 361.10 271.55 Td (\(1,280) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 271.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.10 271.55 Td (\(157) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 271.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.10 271.55 Td (\(2,865) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 271.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 271.55 Td (\(340) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 271.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 259.55 Td (Amortization of discounts and closing costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 259.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.10 259.55 Td (\(19) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 259.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 259.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 259.55 Td (\(38) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 259.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 247.55 Td (Unrealized) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 99.59 247.55 Td ( gain ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 117.36 247.55 Td (on real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.10 247.55 Td (\(400) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 247.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 247.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.10 247.55 Td (\(314) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 247.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 247.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 235.55 Td (Unrealized losses on derivative instruments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.10 235.55 Td (\(1) Tj ET Q q 0 0 0 rg BT 373.76 235.55 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 235.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 235.55 Td (23) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.10 235.55 Td (\(61) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 235.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 235.55 Td (73) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 223.55 Td (Adjustments for noncontrolling interests ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 196.04 227.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.10 223.55 Td (\(8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 223.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.10 223.55 Td (\(5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 223.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.10 223.55 Td (\(7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 223.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 223.55 Td (\(1) Tj ET Q q 0 0 0 rg BT 555.76 223.55 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 223.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 211.55 Td (MFFO attributable to common stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 211.55 Td (2,719) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 211.55 Td (1,004) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.80 211.55 Td (3,287) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 211.55 Td (1,055) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 199.55 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 184.45 203.18 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.10 199.55 Td (\(274) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 199.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.10 199.55 Td (\(160) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 199.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.10 199.55 Td (\(700) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 199.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 199.55 Td (\(287) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 199.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 187.55 Td (Adjusted MFFO attributable to common stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.50 187.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 187.55 Td (2,445) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.50 187.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.80 187.55 Td (844) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.50 187.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.80 187.55 Td (2,587) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.50 187.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 187.55 Td (768) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 163.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 159.50 Td ( Reflects adjustments to eliminate the noncontrolling interest holders’) Tj ET Q q 0 0 0 rg BT 278.03 159.50 Td ( share of the adjustments to convert our ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.44 159.50 Td (net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 430.66 159.50 Td ( attributable to common stockholders to ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 149.90 Td (FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 105.07 149.90 Td (Adjusted MFFO.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 140.92 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 137.30 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 378.59 137.30 Td (net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.82 137.30 Td ( attributable to common stockholders to FFO for ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 127.70 Td (our equity investment in an unconsolidated entity) Tj ET Q q 0 0 0 rg BT 207.17 127.70 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 118.73 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 115.10 Td ( Reflects financing costs that are capitalized with respect to certain renovation projects but excluding development projects. During the time in which we are ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 105.50 Td (incurring costs necessary to bring these investments to their intended use, certain financing costs are capitalized in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 493.06 105.50 Td ( and not reflected in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 95.90 Td (our ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 62.16 95.90 Td (net loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 86.39 95.90 Td (, FFO and MFFO. ) 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 (FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 141.47 704.10 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 49.50 692.10 Td (from FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 140.91 692.10 Td (Adjusted MFFO, such as tenant improvements, building improvements and deferred leasing costs. ) Tj ET Q q 0 0 0 rg BT 538.99 692.10 Td (W) Tj ET Q q 0 0 0 rg BT 547.63 692.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (expect FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 147.56 680.10 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 49.50 668.10 Td (and acquire additional assets. ) Tj ET Q q 0 0 0 rg BT 169.00 668.10 Td (W) Tj ET Q q 0 0 0 rg BT 177.64 668.10 Td (e expect FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 282.64 668.10 Td (Adjusted MFFO to increase as a result of acquisitions.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (Organization and Offering Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (Our or) Tj ET Q q 0 0 0 rg BT 98.20 632.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 167.44 632.10 Td (fering costs \(other than selling commissions, dealer manager fees and the stockholder servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (fee\) may be paid by our advisor) Tj ET Q q 0 0 0 rg BT 176.28 620.10 Td (, the dealer manager or their af) Tj ET Q q 0 0 0 rg BT 299.08 620.10 Td (filiates on our behalf or may be paid directly by us. ) Tj ET Q q 0 0 0 rg BT 508.57 620.10 Td (These ) 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 57.65 608.10 Td (fering costs include all expenses incurred in connection with our of) Tj ET Q q 0 0 0 rg BT 326.28 608.10 Td (ferings. Or) Tj ET Q q 0 0 0 rg BT 371.92 608.10 Td (ganization costs include all expenses incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (in connection with our formation, including but not limited to legal fees and other costs to incorporate. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 578.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 578.10 Td (e recorded $1.0 million of of) Tj ET Q q 0 0 0 rg BT 195.42 578.10 Td (fering costs \(other than selling commissions and dealer manager fees\) related to our private ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 566.10 Td (fering, all of which were initially paid by our advisor or its af) Tj ET Q q 0 0 0 rg BT 302.68 566.10 Td (filiates on our behalf and subsequently reimbursed by us. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (addition, we paid $1.9 million in selling commissions and dealer manager fees related to our private of) Tj ET Q q 0 0 0 rg BT 460.32 554.10 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 536.10 Td (During our initial public of) Tj ET Q q 0 0 0 rg BT 180.13 536.10 Td (fering, pursuant to the advisory agreement and dealer manager agreement, we are obligated to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (reimburse our advisor) Tj ET Q q 0 0 0 rg BT 136.85 524.10 Td (, the dealer manager or their af) Tj ET Q q 0 0 0 rg BT 259.66 524.10 Td (filiates, as applicable, for or) Tj ET Q q 0 0 0 rg BT 371.10 524.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 463.39 524.10 Td (fering costs paid by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (them on behalf of us, provided that no reimbursements made by us to our advisor or the dealer manager may cause total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 500.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 126.89 500.10 Td (fering expenses incurred by us in connection with our initial public of) Tj ET Q q 0 0 0 rg BT 405.80 500.10 Td (fering \(including selling commissions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (dealer manager fees and the stockholder servicing fees\) to exceed 15% of the aggregate gross proceeds from our initial public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 476.10 Td (fering as of the date of reimbursement. In addition, our advisor and its af) Tj ET Q q 0 0 0 rg BT 348.22 476.10 Td (filiates will reimburse us to the extent that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 464.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 149.93 464.10 Td (fering expenses \(which exclude selling commissions, dealer manager fees and stockholder servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (fees\) paid directly or reimbursed by us in connection with the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 451.72 452.10 Td (fering, regardless of when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (incurred, exceed 1.0% of gross of) Tj ET Q q 0 0 0 rg BT 183.99 440.10 Td (fering proceeds from the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 438.74 440.10 Td (fering. Our advisor and its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 428.10 Td (filiates will be responsible for any or) Tj ET Q q 0 0 0 rg BT 204.09 428.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 296.38 428.10 Td (fering expenses related to the primary portion of our initial public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 416.10 Td (fering to the extent they exceed 1.0% of gross proceeds from the primary portion of the Public Of) Tj ET Q q 0 0 0 rg BT 447.91 416.10 Td (fering as of the termination ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (of the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 228.72 404.10 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 386.10 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 386.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.77 386.10 Td (, our advisor and its af) Tj ET Q q 0 0 0 rg BT 254.01 386.10 Td (filiates had incurred or) Tj ET Q q 0 0 0 rg BT 344.63 386.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 436.91 386.10 Td (fering costs \(which exclude ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (selling commissions dealer manager fees and stockholder servicing fees\) on our behalf in connection with our initial public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 362.10 Td (fering of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.12 362.10 Td ($10.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.01 362.10 Td (. ) Tj ET Q q 0 0 0 rg BT 213.46 362.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.90 362.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.73 362.10 Td (, we had recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.30 362.10 Td ($14.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.19 362.10 Td ( in selling commissions and dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (manager fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.96 350.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.85 350.10 Td ( of stockholder servicing fees. ) Tj ET Q q 0 0 0 rg BT 293.04 350.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.48 350.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.31 350.10 Td (, we had recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.89 350.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.78 350.10 Td ( of other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 338.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 126.89 338.10 Td (fering expenses, which amounts represent our maximum liability for or) Tj ET Q q 0 0 0 rg BT 411.63 338.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 503.92 338.10 Td (fering costs as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 326.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.16 326.10 Td ( based on the 1.0% limitation described above.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (Distributions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 290.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.41 290.10 Td (o maintain our qualification as a REIT) Tj ET Q q 0 0 0 rg BT 230.51 290.10 Td (, we must make aggregate annual distributions to our stockholders of at least 90% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (of our REIT) Tj ET Q q 0 0 0 rg BT 98.20 278.10 Td ( taxable income \(which is computed without regard to the dividends paid deduction or net capital gain and which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (does not necessarily equal net income as calculated in accordance with GAAP\). If we meet the REIT) Tj ET Q q 0 0 0 rg BT 452.78 266.10 Td ( qualification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (requirements, we generally will not be subject to federal income tax on the income that we distribute to our stockholders each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (year) Tj ET Q q 0 0 0 rg BT 66.16 242.10 Td (. In general, we anticipate making distributions to our stockholders of at least 100% of our REIT) Tj ET Q q 0 0 0 rg BT 454.49 242.10 Td ( taxable income so that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (none of our income is subject to federal income tax. Our board of directors may authorize distributions in excess of those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (required for us to maintain REIT) Tj ET Q q 0 0 0 rg BT 180.67 218.10 Td ( status depending on our financial condition and such other factors as our board of directors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (deems relevant.) 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 70.50 704.10 Td (Until we have fully invested the proceeds of our public of) Tj ET Q q 0 0 0 rg BT 301.36 704.10 Td (fering, and from time to time during our operational stage, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (may not pay distributions solely from our cash flow from operating activities, in which case distributions may be paid in whole ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (or in part from debt financing. Distributions declared, distributions paid and cash flow provided by operations were as follows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 668.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.49 668.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.92 668.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.69 668.10 Td ( quarters of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.73 668.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.73 668.10 Td ( \(in thousands, except per share amounts\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 615.60 79.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 129.00 615.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 133.00 615.60 54.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 187.00 615.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 191.00 615.60 69.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.00 615.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.00 615.60 69.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 615.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 615.60 53.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 615.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 615.60 54.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 615.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 615.60 53.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 615.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 615.60 54.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 593.60 79.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 129.00 593.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 133.00 593.60 54.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 187.00 593.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 191.00 593.60 69.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.00 593.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.00 593.60 69.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 593.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 593.60 53.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 593.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 593.60 54.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 593.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 593.60 53.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 593.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 593.60 54.00 -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 337 628.6 m 390 628.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 628.6 m 394 628.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 628.6 m 448 628.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 628.6 m 452 628.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 628.6 m 505 628.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 615.6 m 129 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133 615.6 m 187 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 615.6 m 260 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 615.6 m 333 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 615.6 m 390 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 615.6 m 448 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 615.6 m 505 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 615.6 m 563 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 615.6 m 129 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133 615.6 m 187 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 615.6 m 390 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 615.6 m 448 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 615.6 m 563 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133 593.6 m 187 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133 583.6 m 187 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133 581.6 m 187 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 593.6 m 260 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 583.6 m 260 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 581.6 m 260 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 593.6 m 333 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 583.6 m 333 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 581.6 m 333 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 593.6 m 390 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 583.6 m 390 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 581.6 m 390 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 593.6 m 448 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 583.6 m 448 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 581.6 m 448 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 593.6 m 505 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 583.6 m 505 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 581.6 m 505 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 593.6 m 563 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 583.6 m 563 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 581.6 m 563 581.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 632.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 137.05 627.83 Td (Distributions ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 140.20 619.83 Td (Declar) Tj ET Q q 0 0 0 rg BT 162.71 619.83 Td (ed ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 172.71 623.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 202.55 635.83 Td (Distributions ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 202.80 627.83 Td (Declar) Tj ET Q q 0 0 0 rg BT 225.31 627.83 Td (ed Per) Tj ET Q q 0 0 0 rg BT 247.15 627.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 195.40 619.83 Td (Class ) Tj ET Q q 0 0 0 rg BT 215.19 619.83 Td (A) Tj ET Q q 0 0 0 rg BT 220.52 619.83 Td ( Shar) Tj ET Q q 0 0 0 rg BT 238.83 619.83 Td (e) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 242.38 623.46 Td (\(1\)\(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 275.55 635.83 Td (Distributions ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 275.80 627.83 Td (Declar) Tj ET Q q 0 0 0 rg BT 298.31 627.83 Td (ed Per) Tj ET Q q 0 0 0 rg BT 320.15 627.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 268.35 619.83 Td (Class ) Tj ET Q q 0 0 0 rg BT 288.43 619.83 Td (T) Tj ET Q q 0 0 0 rg BT 293.62 619.83 Td ( Shar) Tj ET Q q 0 0 0 rg BT 311.93 619.83 Td (e) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 315.48 623.46 Td (\(1\)\(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.20 632.83 Td (Distributions Paid ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 449.66 636.46 Td (\(3\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.80 643.68 Td (Cash Flows) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.05 635.68 Td (\(Used in\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.75 627.68 Td (Pr) Tj ET Q q 0 0 0 rg BT 523.12 627.68 Td (ovided by) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.35 619.68 Td (Operations) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 77.65 619.83 Td (Period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.30 619.83 Td (Cash) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.80 619.83 Td (Reinvested) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.25 619.83 Td (T) Tj ET Q q 0 0 0 rg BT 473.85 619.83 Td (otal) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 607.90 Td (First Quarter 2018) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 135.50 607.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 167.10 607.90 Td (1,082) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 193.50 607.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 240.10 607.90 Td (0.047) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 266.50 607.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 313.10 607.90 Td (0.024) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 339.50 607.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 375.75 607.90 Td (407) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 396.50 607.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 433.75 607.90 Td (665) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 454.50 607.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 485.10 607.90 Td (1,072) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 511.50 607.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 607.90 Td (\(1,928) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 607.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 596.90 Td (Second Quarter 2018) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 167.10 596.90 Td (1,124) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 240.10 596.90 Td (0.048) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 313.10 596.90 Td (0.025) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 375.75 596.90 Td (435) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 433.75 596.90 Td (691) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 485.10 596.90 Td (1,126) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 543.10 596.90 Td (4,494) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 135.50 585.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 167.10 585.90 Td (2,206) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 193.50 585.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 240.10 585.90 Td (0.095) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 266.50 585.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 313.10 585.90 Td (0.049) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 339.50 585.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 375.75 585.90 Td (842) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 396.50 585.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 428.10 585.90 Td (1,356) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 454.50 585.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 485.10 585.90 Td (2,198) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 511.50 585.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 543.10 585.90 Td (2,566) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 562.13 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 558.50 Td (Distributions for the period from January 1, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 198.61 558.50 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 214.61 558.50 Td ( through ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 243.50 558.50 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 288.16 558.50 Td ( were based on daily record dates and were calculated at a rate of \(i\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 507.83 558.50 Td ($0.00052548) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.83 558.50 Td ( per ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 548.90 Td (share per day less \(ii\) the applicable daily stockholder servicing fees accrued for and allocable to any class of common stock.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 539.92 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 536.30 Td (Assumes share was issued and outstanding each day that was a record date for distributions during the period presented.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 527.33 Td (\(3\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 523.70 Td (Distributions are paid on a monthly basis. Distributions for all record dates of a given month are paid on or about the first business day of the following ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (month.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 490.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.61 490.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.28 490.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.10 490.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.93 490.10 Td (, we paid aggregate distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.51 490.10 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.40 490.10 Td ( including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.17 490.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.06 490.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (distributions paid in cash and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.21 478.10 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.10 478.10 Td ( of distributions reinvested through our dividend reinvestment plan. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.88 478.10 Td (net loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.16 478.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (attributable to common stockholders for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.23 466.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.90 466.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.73 466.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.56 466.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.11 466.10 Td ($3.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.00 466.10 Td ( and cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.54 466.10 Td (provided by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.59 466.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (operations was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.71 454.10 Td ($2.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.60 454.10 Td (. ) Tj ET Q q 0 0 0 rg BT 165.42 454.10 Td (W) Tj ET Q q 0 0 0 rg BT 174.06 454.10 Td (e funded our total distributions paid, which includes net cash distributions and dividends ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (reinvested by stockholders, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.42 442.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.31 442.10 Td ( cash flow from current operating activities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.46 442.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.36 442.10 Td ( prior period cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (from operating activities in excess of distributions paid. For purposes of determining the source of our distributions paid, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (assume first that we use cash flow from operating activities from the relevant or prior periods to fund distribution payments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 400.10 Td (T) Tj ET Q q 0 0 0 rg BT 75.91 400.10 Td (o the extent that we pay distributions from sources other than our cash flow from operating activities, we will have less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 388.10 Td (funds available for the acquisition of real estate investments, the overall return to our stockholders may be reduced and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.10 Td (subsequent investors will experience dilution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 358.10 Td (In addition, during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.43 358.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.10 358.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.92 358.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.75 358.10 Td (, our board of directors declared stock dividends for each month ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (based on a single record date at the end of each month in an amount that would equal a 2% annualized stock dividend per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (of common stock if paid each month for a year) Tj ET Q q 0 0 0 rg BT 236.38 334.10 Td (. Stock dividends are issued in the same class of shares as the shares for which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (such stockholder received the stock dividend.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 304.10 Td (Going forward we expect our board of directors to continue to authorize and declare cash distributions based on daily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.10 Td (record dates and to pay these distributions on a monthly basis and during our of) Tj ET Q q 0 0 0 rg BT 367.59 292.10 Td (fering stage to continue to authorize and declare ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.10 Td (stock dividends based on a single record date as of the end of the month, and to issue these dividends on a monthly basis. Cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.10 Td (distributions and stock dividends will be determined by our board of directors based on our financial condition and such other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.10 Td (factors as our board of directors deems relevant. Our board of directors has not pre-established a percentage rate of return for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.10 Td (stock dividends or cash distributions to stockholders. ) Tj ET Q q 0 0 0 rg BT 263.74 244.10 Td (W) Tj ET Q q 0 0 0 rg BT 272.38 244.10 Td (e have not established a minimum dividend or distribution level, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.10 Td (our charter does not require that we make dividends or distributions to our stockholders. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 214.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 214.10 Td (e expect that we will fund these cash distributions from interest income on our debt investments, dividend income from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (real estate equity securities, rental and other income on our real property investments and to the extent we acquire investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (with short maturities or investments that are close to maturity) Tj ET Q q 0 0 0 rg BT 294.63 190.10 Td (, we may fund distributions with the proceeds received at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (maturity) Tj ET Q q 0 0 0 rg BT 82.73 178.10 Td (, payof) Tj ET Q q 0 0 0 rg BT 110.32 178.10 Td (f or settlement of those investments. ) Tj ET Q q 0 0 0 rg BT 257.61 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 266.25 178.10 Td (e may also utilize strategic refinancings to fund cash distributions for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (investments that have appreciated in value after our acquisition. Generally) Tj ET Q q 0 0 0 rg BT 345.96 166.10 Td (, our distribution policy is not to pay cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (distributions from sources other than cash flow from operations, investment activities and strategic financings. However) Tj ET Q q 0 0 0 rg BT 530.09 154.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (may fund cash distributions from any source and there are no limits to the amount of distributions that we may pay from any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (source, including proceeds from our public of) Tj ET Q q 0 0 0 rg BT 232.32 130.10 Td (fering or the proceeds from the issuance of securities in the future, other third ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (party borrowings, advances from our advisor or sponsors or from our advisor) Tj ET Q q 0 0 0 rg BT 358.69 118.10 Td (’) Tj ET Q q 0 0 0 rg BT 361.47 118.10 Td (s deferral of its fees under the advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (agreement. Distributions paid from sources other than current or accumulated earnings and profits may constitute a return of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (capital. From time to time, we may generate taxable income greater than our net income for financial reporting purposes, or our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (taxable income may be greater than our cash flow available for distribution to stockholders. In these situations we may make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (distributions in excess of our cash flow from operations, investment activities and strategic financings to satisfy the REIT) Tj ET Q q 0 0 0 rg BT 535.32 70.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (distribution requirement. In such an event, we would look first to other third party borrowings to fund these distributions.) 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 70.50 704.10 Td (During the early stages of our operations and until our cash flows stabilize, our board of directors believes the declaration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (of stock dividends is in our best interest because it will allow us to focus on our investment strategy of investing in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (opportunistic real estate investments that may generate limited cash flow but have the potential for appreciation. ) Tj ET Q q 0 0 0 rg BT 500.56 680.10 Td (These stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (dividends may reflect in part an increase or anticipated increase in portfolio value to the extent our board of directors believes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (assets in our portfolio have appreciated or will appreciate in value after acquisition or after we have taken control of the assets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (In addition, these stock dividends may reflect in part cash flow from operations. However) Tj ET Q q 0 0 0 rg BT 408.16 644.10 Td (, we can provide no assurances that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (our stock dividends will reflect appreciation in our portfolio or cash flow from operations. Unless our assets appreciate in an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (amount suf) Tj ET Q q 0 0 0 rg BT 94.04 620.10 Td (ficient to of) Tj ET Q q 0 0 0 rg BT 140.51 620.10 Td (fset the dilutive ef) Tj ET Q q 0 0 0 rg BT 212.80 620.10 Td (fect of any stock dividends, the return per share for later investors purchasing our stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (will be below the return per share of earlier investors. ) Tj ET Q q 0 0 0 rg BT 266.18 608.10 Td (W) Tj ET Q q 0 0 0 rg BT 275.22 608.10 Td (ith respect to any non-performing assets that we acquire, we believe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (that within a relatively short time after acquisition or taking control of such investments via foreclosure or deed-in-lieu ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (proceedings, we will often experience an increase in their value. For example, in most instances, we bring financial stability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (the property) Tj ET Q q 0 0 0 rg BT 97.44 572.10 Td (, which reduces uncertainty in the market and alleviates concerns regarding the property’) Tj ET Q q 0 0 0 rg BT 452.58 572.10 Td (s management, ownership ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (and future. ) Tj ET Q q 0 0 0 rg BT 95.13 560.10 Td (W) Tj ET Q q 0 0 0 rg BT 103.77 560.10 Td (e also may have more capital available for investment in these properties than their prior owners and operators ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (were willing to invest, and as such, we are able to invest in tenant improvements and capital expenditures with respect to such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (properties, which enables us to attract substantially increased interest from brokers and tenants.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (Critical ) Tj ET Q q 0 0 0 rg BT 84.21 518.10 Td (Accounting Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 500.10 Td (Our consolidated interim financial statements have been prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 441.77 500.10 Td ( and in conjunction with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (rules and regulations of the SEC. ) Tj ET Q q 0 0 0 rg BT 184.02 488.10 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 49.50 476.10 Td (assumptions and estimates about matters that are inherently uncertain. ) Tj ET Q q 0 0 0 rg BT 332.01 476.10 Td (These judgments af) Tj ET Q q 0 0 0 rg BT 410.14 476.10 Td (fect the reported amounts of assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 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 49.50 452.10 Td (amounts of revenue and expenses during the reporting periods. ) Tj ET Q q 0 0 0 rg BT 303.14 452.10 Td (W) Tj ET Q q 0 0 0 rg BT 312.18 452.10 Td (ith dif) Tj ET Q q 0 0 0 rg BT 336.16 452.10 Td (ferent estimates or assumptions, materially dif) Tj ET Q q 0 0 0 rg BT 520.93 452.10 Td (ferent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (amounts could be reported in our financial statements. ) Tj ET Q q 0 0 0 rg BT 268.61 440.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 318.51 440.10 Td (, other companies may utilize dif) Tj ET Q q 0 0 0 rg BT 449.95 440.10 Td (ferent estimates that may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 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 439.42 428.10 Td (A) Tj ET Q q 0 0 0 rg BT 446.09 428.10 Td ( discussion of the accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 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 49.50 404.10 Td (is included in our ) Tj ET Q q 0 0 0 rg BT 121.16 404.10 Td (Annual Report on Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.50 404.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.08 404.10 Td ( filed with the SEC. ) Tj ET Q q 0 0 0 rg BT 477.56 404.10 Td (There have been no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (significant changes to our policies during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.24 392.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.24 392.10 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 49.50 380.10 Td (standards issued by the Financial ) Tj ET Q q 0 0 0 rg BT 183.65 380.10 Td (Accounting Standards Board ef) Tj ET Q q 0 0 0 rg BT 309.27 380.10 Td (fective on January 1, 2018.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 344.10 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.26 344.10 Td (fective January 1, 2018, we adopted ) Tj ET Q q 0 0 0 rg BT 227.32 344.10 Td (ASU No. 2014-09, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 305.38 344.10 Td (Revenue fr) Tj ET Q q 0 0 0 rg BT 348.04 344.10 Td (om Contracts with Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.22 344.10 Td ( \(T) Tj ET Q q 0 0 0 rg BT 478.46 344.10 Td (opic 606\) \(“ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (No. 2014-09”\), using the modified retrospective approach, which requires a cumulative ef) Tj ET Q q 0 0 0 rg BT 409.20 332.10 Td (fect adjustment as of the date of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (entity’) Tj ET Q q 0 0 0 rg BT 75.05 320.10 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 49.50 308.10 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 461.61 308.10 Td (A) Tj ET Q q 0 0 0 rg BT 468.28 308.10 Td ( completed contract is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 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 432.60 296.10 Td ( that was in ef) Tj ET Q q 0 0 0 rg BT 488.51 296.10 Td (fect before the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (date of initial application. ) Tj ET Q q 0 0 0 rg BT 154.56 284.10 Td (W) Tj ET Q q 0 0 0 rg BT 163.20 284.10 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 72.00 266.10 Td (Based on our evaluation of contracts within the scope of ) Tj ET Q q 0 0 0 rg BT 299.16 266.10 Td (ASU No. 2014-09, revenue that is impacted by ) Tj ET Q q 0 0 0 rg BT 489.13 266.10 Td (ASU No. 2014-09 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (includes revenue generated by other operating income and tenant reimbursements for substantial services earned at our of) Tj ET Q q 0 0 0 rg BT 535.80 254.10 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (properties and hotel revenues. ) Tj ET Q q 0 0 0 rg BT 171.78 242.10 Td (The recognition of such revenue will occur when the services are provided and the performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (obligations are satisfied.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (Hotel Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 197.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 197.10 Td (e recognize revenue for hotels as hotel revenue when earned. Revenues are recorded net of any sales or occupancy tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (collected from our guests. ) Tj ET Q q 0 0 0 rg BT 155.31 185.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 205.21 185.10 Td (, some of our hotel rooms are booked through independent internet travel intermediaries. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.10 Td (If the guest pays the independent internet travel intermediary directly) Tj ET Q q 0 0 0 rg BT 325.69 173.10 Td (, we book revenue for the room at the price we sold the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.10 Td (room to the independent internet travel intermediary) Tj ET Q q 0 0 0 rg BT 258.22 161.10 Td (, less any discount or commission paid. If the guest pays us directly) Tj ET Q q 0 0 0 rg BT 527.53 161.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.10 Td (book revenue for the room on a gross basis. ) Tj ET Q q 0 0 0 rg BT 226.50 149.10 Td (W) Tj ET Q q 0 0 0 rg BT 235.14 149.10 Td (e participate in frequent guest programs sponsored by the brand owners of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.10 Td (hotels and we expense the char) Tj ET Q q 0 0 0 rg BT 173.44 137.10 Td (ges associated with those programs, as incurred. Hotel operating revenues are disaggregated in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.10 Td (the real estate footnote into the categories of rooms revenue, food, beverage and convention services revenue, campground ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.10 Td (revenue and other revenue to demonstrate how economic factors af) Tj ET Q q 0 0 0 rg BT 317.82 113.10 Td (fect the nature, amount, timing, and uncertainty of revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.10 Td (and cash flows.) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (Room revenue is generated through contracts with customers whereby the customer agrees to pay a daily rate for right to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (use a hotel room. Our contract performance obligations are fulfilled at the end of the day that the customer is provided the room ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (and revenue is recognized daily at the contract rate. Payment from the customer is secured at the end of the contract upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (check-out by the customer from our hotel. ) Tj ET Q q 0 0 0 rg BT 220.38 668.10 Td (W) Tj ET Q q 0 0 0 rg BT 229.02 668.10 Td (e record contract liabilities in the form of advanced deposits when a customer or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (group of customers provides a deposit for a future stay at our hotels. ) Tj ET Q q 0 0 0 rg BT 324.44 656.10 Td (Advanced deposits for room revenue are included in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (balance of other liabilities on the consolidated balance sheet. ) Tj ET Q q 0 0 0 rg BT 294.41 644.10 Td (Advanced deposits are recognized as revenue at the time of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (guest’) Tj ET Q q 0 0 0 rg BT 73.39 632.10 Td (s stay) Tj ET Q q 0 0 0 rg BT 95.24 632.10 Td (. ) Tj ET Q q 0 0 0 rg BT 100.06 632.10 Td (W) Tj ET Q q 0 0 0 rg BT 108.69 632.10 Td (e note no significant judgments regarding the recognition of rooms revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.10 Td (Food, beverage and convention revenue is generated through contracts with customers whereby the customer agrees to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (pay a contract rate for restaurant dining services or convention services. Our contract performance obligations are fulfilled at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (the time that the meal is provided to the customer or when the convention facilities and related dining amenities are provided to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (the customer) Tj ET Q q 0 0 0 rg BT 100.32 578.10 Td (. ) Tj ET Q q 0 0 0 rg BT 105.14 578.10 Td (W) Tj ET Q q 0 0 0 rg BT 113.78 578.10 Td (e recognize food and beverage revenue upon the fulfillment of the contract with the customer) Tj ET Q q 0 0 0 rg BT 486.41 578.10 Td (. ) Tj ET Q q 0 0 0 rg BT 491.23 578.10 Td (W) Tj ET Q q 0 0 0 rg BT 499.87 578.10 Td (e record ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (contract liabilities in the form of advanced deposits when a customer or group of customers provides a deposit for a future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (banquet event at our hotels. ) Tj ET Q q 0 0 0 rg BT 161.69 554.10 Td (Advanced deposits for food and beverage revenue are included in the balance of other liabilities on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (the consolidated balance sheet. ) Tj ET Q q 0 0 0 rg BT 175.29 542.10 Td (Advanced deposits for banquet services are recognized as revenue following the completion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (the banquet services. ) Tj ET Q q 0 0 0 rg BT 135.40 530.10 Td (W) Tj ET Q q 0 0 0 rg BT 144.04 530.10 Td (e note no significant judgements regarding the recognition of food and beverage revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 512.10 Td (Campground revenue is recognized on a straight-line basis over the term of the lease when collectability is reasonably ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (assured.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (Real Estate Equity Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 464.10 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 541.42 464.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 452.10 Td (ransaction costs that are directly attributable to the acquisition of real estate equity securities are capitalized to its cost basis. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (Upon adoption of ) Tj ET Q q 0 0 0 rg BT 122.00 440.10 Td (ASU No. 2016-01, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 200.05 440.10 Td (Financial Instruments - Overall \(Subtopic 825-10\): Recognition and Measur) Tj ET Q q 0 0 0 rg BT 506.85 440.10 Td (ement of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (Financial ) Tj ET Q q 0 0 0 rg BT 90.70 428.10 Td (Assets and Financial Liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.14 428.10 Td (\(“ASU No. 2016-01”\) on January 1, 2018, unrealized gains and losses on real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (equity securities are recognized in earnings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 398.10 Td (Dividend income from real estate equity securities is recognized on an accrual basis based on eligible shares as of the ex-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (dividend date. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (Subsequent Events) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 350.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 350.10 Td (e evaluate subsequent events up until the date the consolidated financial statements are issued.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (Status of the Of) Tj ET Q q 0 0 0 rg BT 114.05 332.10 Td (fering) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 317.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 317.10 Td (e commenced our initial public of) Tj ET Q q 0 0 0 rg BT 215.69 317.10 Td (fering on ) Tj ET Q q 0 0 0 rg BT 254.02 317.10 Td (August 12, 2014 and broke escrow on January 7, 2015. ) Tj ET Q q 0 0 0 rg BT 476.85 317.10 Td (W) Tj ET Q q 0 0 0 rg BT 485.49 317.10 Td (e ceased of) Tj ET Q q 0 0 0 rg BT 529.72 317.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (shares of common stock in our primary public of) Tj ET Q q 0 0 0 rg BT 244.83 305.10 Td (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.71 305.10 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.88 305.10 Td ( and are continuing to process subscriptions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (Subscriptions must be dated on or before July 31, 2018, and subscriptions and all related documents and funds must be received ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (by us in good order no later than September 28, 2018. ) Tj ET Q q 0 0 0 rg BT 266.96 281.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.85 281.10 Td (August 7, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.24 281.10 Td (, we had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.51 281.10 Td (12,446,971) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.51 281.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.95 281.10 Td (1) Tj ET Q q 0 0 0 rg BT 476.58 281.10 Td (1,615,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.58 281.10 Td ( shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.12 269.10 Td (A) Tj ET Q q 0 0 0 rg BT 79.79 269.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 123.22 269.10 Td (T) Tj ET Q q 0 0 0 rg BT 129.14 269.10 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 242.91 269.10 Td (, in our initial public of) Tj ET Q q 0 0 0 rg BT 335.49 269.10 Td (fering for aggregate gross of) Tj ET Q q 0 0 0 rg BT 449.15 269.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.40 269.10 Td ($233.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 257.10 Td (. Included in these amounts were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.52 257.10 Td (531,570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.02 257.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.46 257.10 Td (162,456) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.96 257.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 361.39 257.10 Td (A) Tj ET Q q 0 0 0 rg BT 368.06 257.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 411.49 257.10 Td (T) Tj ET Q q 0 0 0 rg BT 417.42 257.10 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 531.18 257.10 Td (, sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (under our dividend reinvestment plan for aggregate gross of) Tj ET Q q 0 0 0 rg BT 289.25 245.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.49 245.10 Td ($6.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.38 245.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (Cash Distributions Paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 212.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 212.10 Td (July 3, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.89 212.10 Td (, we paid distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.10 212.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.00 212.10 Td ( related to cash distributions on the outstanding shares of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (common stock based on daily record dates for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.81 200.10 Td (June 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.64 200.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.75 200.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.58 200.10 Td (. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.75 200.10 Td (August 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.14 200.10 Td (, we paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.83 188.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.73 188.10 Td ( related to cash distributions on the outstanding shares of the common stock based on daily record ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (dates for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.41 176.10 Td (July 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.58 176.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.69 176.10 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.86 176.10 Td (. Distributions for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.45 176.10 Td (June 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.28 176.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.38 176.10 Td (July 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 164.10 Td ( were calculated based on stockholders of record each day during the period at a rate of \(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.67 164.10 Td ($0.00052548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.17 164.10 Td ( per share per day ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (less \(ii\) the applicable daily stockholder servicing fees accrued for and allocable to any class of common stock, divided by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (number of shares of common stock of such class outstanding as of the close of business on each respective record date.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (Stock Dividends Issued) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 107.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 107.10 Td (May 10, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.55 107.10 Td (, our board of directors authorized stock dividends for the month of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.43 107.10 Td (June 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.26 107.10 Td (, in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (0.001667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 95.10 Td ( shares of our common stock on each outstanding share of common stock issuable to all common stockholders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.10 Td (record as of the close of business on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.68 83.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.51 83.10 Td (. ) Tj ET Q q 0 0 0 rg BT 259.83 83.10 Td (W) Tj ET Q q 0 0 0 rg BT 268.47 83.10 Td (e issued the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.63 83.10 Td (June 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.46 83.10 Td ( stock dividend, consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.45 83.10 Td (48,994) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.95 83.10 Td ( shares, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.10 Td (July 5, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.67 71.10 Td (.) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 704.10 Td (May 10, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.55 704.10 Td (, our board of directors authorized stock dividends for the month of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.43 704.10 Td (July 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.60 704.10 Td (, in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (0.001667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 692.10 Td ( shares of our common stock on each outstanding share of common stock issuable to all common stockholders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (record as of the close of business on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.68 680.10 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.85 680.10 Td (. ) Tj ET Q q 0 0 0 rg BT 258.17 680.10 Td (W) Tj ET Q q 0 0 0 rg BT 266.81 680.10 Td (e issued the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.96 680.10 Td (July 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.13 680.10 Td ( stock dividend, consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.13 680.10 Td (49,556) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.63 680.10 Td ( shares, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (August 2, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.89 668.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (Distributions Declared) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 635.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 635.10 Td (July 13, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.39 635.10 Td (, our board of directors declared cash distributions on the outstanding shares of all classes of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (common stock based on daily record dates for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.26 623.10 Td (August 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 623.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.21 623.10 Td (August 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.60 623.10 Td (, which we expect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (pay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.72 611.10 Td (September 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.98 611.10 Td (. Investors may choose to receive cash distributions or purchase additional shares through our dividend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (reinvestment plan. Distributions for this period will be calculated based on stockholders of record each day during this period at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.75 587.10 Td ($0.00052548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.25 587.10 Td ( per share per day) Tj ET Q q 0 0 0 rg BT 207.68 587.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 569.10 Td (Also on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.39 569.10 Td (July 13, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.56 569.10 Td (, our board of directors authorized a stock dividend for the month of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.93 569.10 Td (August 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.32 569.10 Td ( in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.10 Td (0.001667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 557.10 Td ( shares of common stock on each outstanding share of common stock, issuable to all common stockholders of record ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.10 Td (as of the close of business on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.09 545.10 Td (August 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.49 545.10 Td (. Stock dividends are issued in the same class of shares as the shares for which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.10 Td (such stockholder received the stock dividend. ) Tj ET Q q 0 0 0 rg BT 233.99 533.10 Td (W) Tj ET Q q 0 0 0 rg BT 242.63 533.10 Td (e expect to issue this stock dividend in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.27 533.10 Td (September 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.53 533.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 515.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.67 515.10 Td (August 9, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.06 515.10 Td (, our board of directors declared cash distributions on the outstanding shares of all classes of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (common stock based on daily record dates for the periods from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.71 503.10 Td (September 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.97 503.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.08 503.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.34 503.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.78 503.10 Td (October 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 491.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.61 491.10 Td (October 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.32 491.10 Td (, which we expect to pay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.50 491.10 Td (October 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.21 491.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 491.10 Td (November 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.36 491.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 479.02 491.10 Td (. Investors may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (choose to receive cash distributions or purchase additional shares through our dividend reinvestment plan. Distributions for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (these periods will be calculated based on stockholders of record each day during this period at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.52 467.10 Td ($0.00052548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.02 467.10 Td ( per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (per day) Tj ET Q q 0 0 0 rg BT 78.56 455.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 437.10 Td (Also on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.84 437.10 Td (August 9, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.23 437.10 Td (, our board of directors authorized a stock dividend for the months of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.04 437.10 Td (September 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.31 437.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.75 437.10 Td (October ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 425.10 Td ( in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.32 425.10 Td (0.001667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.82 425.10 Td ( shares of common stock on each outstanding share of common stock, issuable to all common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.10 Td (stockholders of record as of the close of business on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.56 413.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.82 413.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.26 413.10 Td (October 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.97 413.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 482.63 413.10 Td (. Stock dividends ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.10 Td (are issued in the same class of shares as the shares for which such stockholder received the stock dividend. ) Tj ET Q q 0 0 0 rg BT 478.63 401.10 Td (W) Tj ET Q q 0 0 0 rg BT 487.27 401.10 Td (e expect to issue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.10 Td (these stock dividends in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.82 389.10 Td (October 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.53 389.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.97 389.10 Td (November 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.67 389.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 339.33 389.10 Td (.) 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 3. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Quantitative and Qualitative Disclosur) Tj ET Q q 0 0 0 rg BT 255.60 730.60 Td (es about Market Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 704.10 Td (e are exposed to the ef) Tj ET Q q 0 0 0 rg BT 170.13 704.10 Td (fects of interest rate changes as a result of borrowings used to maintain liquidity and to fund the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (financing of our real estate investment portfolio and operations. ) Tj ET Q q 0 0 0 rg BT 308.96 692.10 Td (W) Tj ET Q q 0 0 0 rg BT 317.60 692.10 Td (e are also exposed to the ef) Tj ET Q q 0 0 0 rg BT 425.71 692.10 Td (fects of changes in interest rates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (as a result of the origination of a mortgage loan. ) Tj ET Q q 0 0 0 rg BT 243.98 680.10 Td (W) Tj ET Q q 0 0 0 rg BT 252.62 680.10 Td (e are also exposed to the ef) Tj ET Q q 0 0 0 rg BT 360.73 680.10 Td (fects of foreign currency changes in the Euro with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (respect to our €2.1 million participating loan facility) Tj ET Q q 0 0 0 rg BT 258.24 668.10 Td (. Foreign currency exchange rate risk is the possibility that our financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (results could be better or worse than planned because of changes in foreign currency exchange rates. Our profitability and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (value of our investment portfolio may be adversely af) Tj ET Q q 0 0 0 rg BT 264.25 644.10 Td (fected during any period as a result of interest rate changes and foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (currency changes. Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (prepayment penalties and cash flows and to lower overall borrowing costs. ) Tj ET Q q 0 0 0 rg BT 353.40 620.10 Td (W) Tj ET Q q 0 0 0 rg BT 362.04 620.10 Td (e may manage interest rate risk by maintaining a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (ratio of fixed rate, long-term debt such that floating rate exposure is kept at an acceptable level. In addition, we may utilize a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (variety of financial instruments, including interest rate caps, floors, and swap agreements, in order to limit the ef) Tj ET Q q 0 0 0 rg BT 498.90 596.10 Td (fects of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (changes in interest rates on our operations. ) Tj ET Q q 0 0 0 rg BT 225.10 584.10 Td (When we use these types of derivatives to hedge the risk of interest-earning assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (or interest-bearing liabilities, we may be subject to certain risks, including the risk that losses on a hedge position will reduce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (the funds available for payments to holders of our common stock and that the losses may exceed the amount we invested in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (instruments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 530.10 Td (Movements in interest rates on variable rate debt would change our future earnings and cash flows, but would not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (significantly af) Tj ET Q q 0 0 0 rg BT 109.58 518.10 Td (fect the fair value of those instruments. However) Tj ET Q q 0 0 0 rg BT 307.17 518.10 Td (, changes in required risk premiums would result in changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (the fair value of floating rate instruments. ) Tj ET Q q 0 0 0 rg BT 220.28 506.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.72 506.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.55 506.10 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 49.50 494.10 Td (interest rates on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.31 494.10 Td ($331.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.20 494.10 Td ( of variable rate debt outstanding. ) Tj ET Q q 0 0 0 rg BT 310.55 494.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.99 494.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.82 494.10 Td (, we have also entered into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.95 494.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.61 494.10 Td ( interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (rate cap agreements with an aggregate notional value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.23 482.10 Td ($135.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.12 482.10 Td (, which ef) Tj ET Q q 0 0 0 rg BT 373.65 482.10 Td (fectively caps one-month LIBOR at 3.00%. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (The weighted-average remaining term of the interest rate caps is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.39 470.10 Td (0.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.89 470.10 Td ( years. Based on interest rates as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.90 470.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.73 470.10 Td (, if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (interest rates were 100 basis points higher or lower during the 12 months ending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.32 458.10 Td (June 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 458.10 Td (, interest expense on our variable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (rate debt would increase or decrease, respectively) Tj ET Q q 0 0 0 rg BT 247.36 446.10 Td (, by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.86 446.10 Td ($3.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.75 446.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.19 446.10 Td ($3.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.08 446.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 434.74 446.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 428.10 Td (The weighted-average interest rate of our variable rate debt as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.26 428.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.09 428.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.64 428.10 Td (4.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.47 428.10 Td (. ) Tj ET Q q 0 0 0 rg BT 437.79 428.10 Td (The weighted-average interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (rate represents the actual interest rate in ef) Tj ET Q q 0 0 0 rg BT 218.40 416.10 Td (fect as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.54 416.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.37 416.10 Td ( \(consisting of the contractual interest rate and the ef) Tj ET Q q 0 0 0 rg BT 523.39 416.10 Td (fect of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (interest rate caps, if applicable\), using interest rate indices as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.79 404.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.62 404.10 Td ( where applicable. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 386.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 386.10 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 49.50 374.10 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 49.50 362.10 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 49.50 350.10 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 433.64 350.10 Td (fer from the reported market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 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 49.50 326.10 Td (perceived changes in the underlying fundamental characteristics of the issuer) Tj ET Q q 0 0 0 rg BT 357.03 326.10 Td (, the relative price of alternative investments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 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 49.50 302.10 Td (be af) Tj ET Q q 0 0 0 rg BT 69.03 302.10 Td (fected by the relative quantity of the real estate equity security being sold. ) Tj ET Q q 0 0 0 rg BT 367.07 302.10 Td (W) Tj ET Q q 0 0 0 rg BT 375.71 302.10 Td (e do not currently engage in derivative or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (other hedging transactions to manage our real estate equity security price risk. ) Tj ET Q q 0 0 0 rg BT 363.56 290.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.01 290.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.84 290.10 Td (, we owned real estate equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (securities with a book value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.47 278.10 Td ($7.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.36 278.10 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 49.50 266.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 266.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 266.10 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 545.87 266.10 Td (, by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 254.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.65 254.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 236.10 Td (For a discussion of the interest rate risks related to the current capital and credit markets, see “Management’) Tj ET Q q 0 0 0 rg BT 504.07 236.10 Td (s Discussion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (and ) Tj ET Q q 0 0 0 rg BT 65.89 224.10 Td (Analysis of Financial Condition and Results of Operations - Market Outlook” herein, and Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 485.81 224.10 Td ( of our ) Tj ET Q q 0 0 0 rg BT 514.42 224.10 Td (Annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (Report on Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.90 212.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.48 212.10 Td (, as filed with the SEC.) 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 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 33.60 Td (49) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Disclosur) Tj ET Q q 0 0 0 rg BT 89.32 704.25 Td (e Contr) Tj ET Q q 0 0 0 rg BT 121.63 704.25 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 164.79 704.25 Td (ocedur) Tj ET Q q 0 0 0 rg BT 194.05 704.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 686.25 Td (As of the end of the period covered by this report, management, including our principal executive of) Tj ET Q q 0 0 0 rg BT 474.86 686.25 Td (ficer and principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (financial of) Tj ET Q q 0 0 0 rg BT 95.13 674.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 113.04 674.25 Td (, evaluated the ef) Tj ET Q q 0 0 0 rg BT 181.16 674.25 Td (fectiveness of the design and operation of our disclosure controls and procedures. Based upon, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (and as of the date of, the evaluation, our principal executive of) Tj ET Q q 0 0 0 rg BT 299.50 662.25 Td (ficer and principal financial of) Tj ET Q q 0 0 0 rg BT 420.93 662.25 Td (ficer concluded that the disclosure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (controls and procedures were ef) Tj ET Q q 0 0 0 rg BT 177.04 650.25 Td (fective as of the end of the period covered by this report to ensure that information required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (be disclosed in the reports we file and submit under the Exchange ) Tj ET Q q 0 0 0 rg BT 314.43 638.25 Td (Act is recorded, processed, summarized and reported as and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (when required. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (information required to be disclosed by us in the reports we file and submit under the Exchange ) Tj ET Q q 0 0 0 rg BT 434.12 614.25 Td (Act is accumulated and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (communicated to our management, including our principal executive of) Tj ET Q q 0 0 0 rg BT 336.17 602.25 Td (ficer and our principal financial of) Tj ET Q q 0 0 0 rg BT 473.43 602.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 491.34 602.25 Td (, as appropriate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (to allow timely decisions regarding required disclosure. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 112.37 572.25 Td (ol Over) Tj ET Q q 0 0 0 rg BT 144.12 572.25 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 554.25 Td (There have been no changes in our internal control over financial reporting that occurred during our last fiscal quarter that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (have materially af) Tj ET Q q 0 0 0 rg BT 121.50 542.25 Td (fected, or are reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 308.46 542.25 Td (fect, our internal control over financial reporting.) Tj ET Q endstream endobj 103 0 obj <>] /Rotate 0 /Contents 104 0 R>> endobj 104 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( II. ) 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 (50) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 719.25 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.00 719.25 Td (Legal Pr) Tj ET Q q 0 0 0 rg BT 126.75 719.25 Td (oceedings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 701.25 Td (From time to time, we are party to legal proceedings that arise in the ordinary course of our business. Management is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 689.25 Td (aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse ef) Tj ET Q q 0 0 0 rg BT 460.54 689.25 Td (fect on our results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (operations or financial condition, nor are we aware of any such legal proceedings contemplated by government agencies. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (Item 1A. ) Tj ET Q q 0 0 0 rg BT 90.00 653.25 Td (Risk Factors) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 635.25 Td (The following risk factor supplements the risks discussed in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 372.63 635.25 Td ( of our ) Tj ET Q q 0 0 0 rg BT 401.62 635.25 Td (Annual Report on Form 10-K for the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 623.25 Td (year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 96.15 623.25 Td (December 31, 2017) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 174.73 623.25 Td ( and in Part II, Item 1A) Tj ET Q q 0 0 0 rg BT 268.15 623.25 Td ( of our Quarterly Report on Form 10-Q for the period ended Mar) Tj ET Q q 0 0 0 rg BT 529.97 623.25 Td (ch 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 611.25 Td (2018.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 596.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 596.25 Td (e ) Tj ET Q q 0 0 0 rg BT 64.59 596.25 Td (have ) Tj ET Q q 0 0 0 rg BT 86.53 596.25 Td (paid ) Tj ET Q q 0 0 0 rg BT 106.82 596.25 Td (distributions ) Tj ET Q q 0 0 0 rg BT 161.01 596.25 Td (in ) Tj ET Q q 0 0 0 rg BT 171.85 596.25 Td (part ) Tj ET Q q 0 0 0 rg BT 191.03 596.25 Td (from ) Tj ET Q q 0 0 0 rg BT 213.53 596.25 Td (financings ) Tj ET Q q 0 0 0 rg BT 259.94 596.25 Td (and ) Tj ET Q q 0 0 0 rg BT 278.00 596.25 Td (expect ) Tj ET Q q 0 0 0 rg BT 306.60 596.25 Td (that ) Tj ET Q q 0 0 0 rg BT 325.22 596.25 Td (in ) Tj ET Q q 0 0 0 rg BT 336.07 596.25 Td (the ) Tj ET Q q 0 0 0 rg BT 351.35 596.25 Td (future ) Tj ET Q q 0 0 0 rg BT 379.41 596.25 Td (we ) Tj ET Q q 0 0 0 rg BT 393.03 596.25 Td (may ) Tj ET Q q 0 0 0 rg BT 412.75 596.25 Td (not ) Tj ET Q q 0 0 0 rg BT 428.59 596.25 Td (pay ) Tj ET Q q 0 0 0 rg BT 445.53 596.25 Td (distributions ) Tj ET Q q 0 0 0 rg BT 499.73 596.25 Td (solely ) Tj ET Q q 0 0 0 rg BT 525.55 596.25 Td (from ) Tj ET Q q 0 0 0 rg BT 548.06 596.25 Td (our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 584.25 Td (cash ) Tj ET Q q 0 0 0 rg BT 70.13 584.25 Td (flow ) Tj ET Q q 0 0 0 rg BT 89.64 584.25 Td (from ) Tj ET Q q 0 0 0 rg BT 111.38 584.25 Td (operating ) Tj ET Q q 0 0 0 rg BT 152.56 584.25 Td (activities. ) Tj ET Q q 0 0 0 rg BT 192.90 584.25 Td (T) Tj ET Q q 0 0 0 rg BT 198.09 584.25 Td (o ) Tj ET Q q 0 0 0 rg BT 204.82 584.25 Td (the ) Tj ET Q q 0 0 0 rg BT 219.34 584.25 Td (extent ) Tj ET Q q 0 0 0 rg BT 246.07 584.25 Td (that ) Tj ET Q q 0 0 0 rg BT 263.92 584.25 Td (we ) Tj ET Q q 0 0 0 rg BT 276.77 584.25 Td (pay ) Tj ET Q q 0 0 0 rg BT 292.94 584.25 Td (distributions ) Tj ET Q q 0 0 0 rg BT 346.37 584.25 Td (from ) Tj ET Q q 0 0 0 rg BT 368.10 584.25 Td (sources ) Tj ET Q q 0 0 0 rg BT 400.95 584.25 Td (other ) Tj ET Q q 0 0 0 rg BT 424.36 584.25 Td (than ) Tj ET Q q 0 0 0 rg BT 444.99 584.25 Td (our ) Tj ET Q q 0 0 0 rg BT 461.18 584.25 Td (cash ) Tj ET Q q 0 0 0 rg BT 481.81 584.25 Td (flow ) Tj ET Q q 0 0 0 rg BT 501.32 584.25 Td (from ) Tj ET Q q 0 0 0 rg BT 523.06 584.25 Td (operating ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (activities, ) Tj ET Q q 0 0 0 rg BT 90.33 572.25 Td (we ) Tj ET Q q 0 0 0 rg BT 103.67 572.25 Td (will ) Tj ET Q q 0 0 0 rg BT 120.91 572.25 Td (have ) Tj ET Q q 0 0 0 rg BT 142.59 572.25 Td (less ) Tj ET Q q 0 0 0 rg BT 159.82 572.25 Td (funds ) Tj ET Q q 0 0 0 rg BT 185.40 572.25 Td (available ) Tj ET Q q 0 0 0 rg BT 224.84 572.25 Td (for ) Tj ET Q q 0 0 0 rg BT 239.30 572.25 Td (investment ) Tj ET Q q 0 0 0 rg BT 285.98 572.25 Td (in ) Tj ET Q q 0 0 0 rg BT 296.55 572.25 Td (properties ) Tj ET Q q 0 0 0 rg BT 339.89 572.25 Td (and ) Tj ET Q q 0 0 0 rg BT 357.69 572.25 Td (other ) Tj ET Q q 0 0 0 rg BT 381.59 572.25 Td (assets, ) Tj ET Q q 0 0 0 rg BT 410.22 572.25 Td (the ) Tj ET Q q 0 0 0 rg BT 425.23 572.25 Td (overall ) Tj ET Q q 0 0 0 rg BT 455.79 572.25 Td (return ) Tj ET Q q 0 0 0 rg BT 484.15 572.25 Td (to ) Tj ET Q q 0 0 0 rg BT 494.16 572.25 Td (our ) Tj ET Q q 0 0 0 rg BT 510.85 572.25 Td (stockholders ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 560.25 Td (may ) Tj ET Q q 0 0 0 rg BT 69.22 560.25 Td (be ) Tj ET Q q 0 0 0 rg BT 81.16 560.25 Td (reduced ) Tj ET Q q 0 0 0 rg BT 116.42 560.25 Td (and ) Tj ET Q q 0 0 0 rg BT 134.49 560.25 Td (subsequent ) Tj ET Q q 0 0 0 rg BT 183.11 560.25 Td (investors ) Tj ET Q q 0 0 0 rg BT 222.28 560.25 Td (will ) Tj ET Q q 0 0 0 rg BT 239.78 560.25 Td (experience ) Tj ET Q q 0 0 0 rg BT 286.71 560.25 Td (dilution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 545.25 Td (Our or) Tj ET Q q 0 0 0 rg BT 97.70 545.25 Td (ganizational documents permit us to pay distributions from any source, including of) Tj ET Q q 0 0 0 rg BT 433.01 545.25 Td (fering proceeds or borrowings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.25 Td (\(which may constitute a return of capital\), and our charter does not limit the amount of funds we may use from any source to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.25 Td (pay such distributions. ) Tj ET Q q 0 0 0 rg BT 142.09 521.25 Td (W) Tj ET Q q 0 0 0 rg BT 150.73 521.25 Td (e have paid distributions in part from financings and expect that in the future we may not pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.25 Td (distributions solely from our cash flow from operating activities, in which case distributions may be paid in whole or in part ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.25 Td (from debt financing. ) Tj ET Q q 0 0 0 rg BT 133.74 497.25 Td (W) Tj ET Q q 0 0 0 rg BT 142.38 497.25 Td (e may also fund such distributions with proceeds from the sale of assets or from the maturity) Tj ET Q q 0 0 0 rg BT 512.20 497.25 Td (, payof) Tj ET Q q 0 0 0 rg BT 539.79 497.25 Td (f or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.25 Td (settlement of debt investments. If we fund distributions from borrowings, our interest expense and other financing costs, as well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.25 Td (as the repayment of such borrowings, will reduce our earnings and cash flow from operating activities available for distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.25 Td (in future periods. If we fund distributions from the sale of assets or the maturity) Tj ET Q q 0 0 0 rg BT 367.39 461.25 Td (, payof) Tj ET Q q 0 0 0 rg BT 394.98 461.25 Td (f or settlement of debt investments, this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.25 Td (will af) Tj ET Q q 0 0 0 rg BT 75.14 449.25 Td (fect our ability to generate cash flow from operating activities in future periods. ) Tj ET Q q 0 0 0 rg BT 395.96 449.25 Td (T) Tj ET Q q 0 0 0 rg BT 401.38 449.25 Td (o the extent that we pay distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.25 Td (from sources other than our cash flow from operating activities, we will have fewer funds available with which to make real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.25 Td (estate investments, the overall return to our stockholders may be reduced and subsequent investors will experience dilution. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.25 Td (addition, to the extent distributions exceed cash flow from operating activities, a stockholder) Tj ET Q q 0 0 0 rg BT 420.33 413.25 Td (’) Tj ET Q q 0 0 0 rg BT 423.10 413.25 Td (s basis in our stock will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.25 Td (reduced and, to the extent distributions exceed a stockholder) Tj ET Q q 0 0 0 rg BT 291.74 401.25 Td (’) Tj ET Q q 0 0 0 rg BT 294.51 401.25 Td (s basis, the stockholder may recognize capital gain. ) Tj ET Q q 0 0 0 rg BT 502.04 401.25 Td (There is no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (limit on the amount of distributions we may fund from sources other than from cash flow from operating activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 371.25 Td (During our public of) Tj ET Q q 0 0 0 rg BT 153.80 371.25 Td (fering stage, when we may raise capital in this of) Tj ET Q q 0 0 0 rg BT 349.67 371.25 Td (fering \(and possibly future of) Tj ET Q q 0 0 0 rg BT 466.68 371.25 Td (ferings\) more quickly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.25 Td (than we acquire income-producing assets, and from time to time during our operational stage, we may not pay distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.25 Td (solely from our cash flow from operating activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 329.25 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.61 329.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.28 329.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.10 329.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.93 329.25 Td (, we paid aggregate distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.51 329.25 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.40 329.25 Td (, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.67 329.25 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.56 329.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.25 Td (distributions paid in cash and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.21 317.25 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.10 317.25 Td ( of distributions reinvested through our dividend reinvestment plan. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.88 317.25 Td (net loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.16 317.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.25 Td (attributable to common stockholders for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.23 305.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.90 305.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.73 305.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.56 305.25 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.11 305.25 Td ($3.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.00 305.25 Td ( and cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.54 305.25 Td (provided by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.59 305.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.25 Td (operations was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.71 293.25 Td ($2.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.60 293.25 Td (. ) Tj ET Q q 0 0 0 rg BT 165.42 293.25 Td (W) Tj ET Q q 0 0 0 rg BT 174.06 293.25 Td (e funded our total distributions paid, which includes net cash distributions and dividends ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.25 Td (reinvested by stockholders, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.42 281.25 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.31 281.25 Td ( cash flow from current operating activities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.46 281.25 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.36 281.25 Td ( prior period cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.25 Td (from operating activities in excess of distributions paid. For purposes of determining the source of our distributions paid, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.25 Td (assume first that we use cash flow from operating activities from the relevant or prior periods to fund distribution payments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 239.25 Td (T) Tj ET Q q 0 0 0 rg BT 77.41 239.25 Td (o the extent that we pay distributions from sources other than our cash flow from operating activities, we will have less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.25 Td (funds available for the acquisition of real estate investments, the overall return to our stockholders may be reduced and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.25 Td (subsequent investors will experience dilution.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 197.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 197.25 Td (e ) Tj ET Q q 0 0 0 rg BT 64.59 197.25 Td (have ) Tj ET Q q 0 0 0 rg BT 86.53 197.25 Td (a ) Tj ET Q q 0 0 0 rg BT 94.03 197.25 Td (history ) Tj ET Q q 0 0 0 rg BT 124.87 197.25 Td (of ) Tj ET Q q 0 0 0 rg BT 135.70 197.25 Td (operating ) Tj ET Q q 0 0 0 rg BT 177.64 197.25 Td (losses ) Tj ET Q q 0 0 0 rg BT 204.04 197.25 Td (and ) Tj ET Q q 0 0 0 rg BT 222.10 197.25 Td (cannot ) Tj ET Q q 0 0 0 rg BT 252.94 197.25 Td (assure ) Tj ET Q q 0 0 0 rg BT 282.11 197.25 Td (our ) Tj ET Q q 0 0 0 rg BT 299.07 197.25 Td (stockholders ) Tj ET Q q 0 0 0 rg BT 353.24 197.25 Td (that ) Tj ET Q q 0 0 0 rg BT 371.85 197.25 Td (we ) Tj ET Q q 0 0 0 rg BT 385.46 197.25 Td (will ) Tj ET Q q 0 0 0 rg BT 402.97 197.25 Td (achieve ) Tj ET Q q 0 0 0 rg BT 436.56 197.25 Td (profitability) Tj ET Q q 0 0 0 rg BT 484.52 197.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 182.25 Td (Since our inception in 2013, we have experienced net losses \(calculated in accordance with GAAP\) for each fiscal year) Tj ET Q q 0 0 0 rg BT 546.85 182.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.25 Td (which have contributed to our cumulative net loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.50 170.25 Td ($17.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.39 170.25 Td ( from inception through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 170.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.98 170.25 Td (. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.04 170.25 Td (net loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.31 170.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.25 Td (attributable to common stockholders for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.23 158.25 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.90 158.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.73 158.25 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.56 158.25 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.11 158.25 Td ($3.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.00 158.25 Td (. Our net loss attributable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.25 Td (common stockholders for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.00 146.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.59 146.25 Td (, and from inception through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.78 146.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.37 146.25 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.92 146.25 Td ($3.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.81 146.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 134.25 Td ($14.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.33 134.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 172.99 134.25 Td (. Our net loss attributable to common stockholders for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.64 134.25 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.22 134.25 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.25 Td (from inception through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.76 122.25 Td (December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.34 122.25 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.89 122.25 Td ($6.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.79 122.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.22 122.25 Td ($1) Tj ET Q q 0 0 0 rg BT 321.85 122.25 Td (1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.75 122.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 418.41 122.25 Td (. ) Tj ET Q q 0 0 0 rg BT 423.23 122.25 Td (The extent of our future operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.25 Td (losses and the timing of when we will achieve profitability are highly uncertain, and we may never achieve or sustain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.25 Td (profitability) Tj ET Q q 0 0 0 rg BT 96.62 98.25 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 ( II. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Unr) Tj ET Q q 0 0 0 rg BT 107.54 730.60 Td (egister) Tj ET Q q 0 0 0 rg BT 135.68 730.60 Td (ed Sales of Equity Securities and Use of Pr) Tj ET Q q 0 0 0 rg BT 316.60 730.60 Td (oceeds) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (a\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 704.10 Td (During the period covered by this Form 10-Q, we did not sell any equity securities that were not registered under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 692.10 Td (Securities ) Tj ET Q q 0 0 0 rg BT 131.38 692.10 Td (Act of 1933.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 674.10 Td (b\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 674.10 Td (On ) Tj ET Q q 0 0 0 rg BT 104.17 674.10 Td (August 12, 2014, our Registration Statement on Form S-1) Tj ET Q q 0 0 0 rg BT 335.45 674.10 Td (1 \(File No. 333-192331\), covering a public of) Tj ET Q q 0 0 0 rg BT 518.29 674.10 Td (fering of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 662.10 Td (up to 100,000,000 shares of common stock in a primary of) Tj ET Q q 0 0 0 rg BT 324.22 662.10 Td (fering and 80,000,000 shares of common stock under our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 650.10 Td (dividend reinvestment plan, was declared ef) Tj ET Q q 0 0 0 rg BT 265.86 650.10 Td (fective under the Securities ) Tj ET Q q 0 0 0 rg BT 376.93 650.10 Td (Act of 1933. ) Tj ET Q q 0 0 0 rg BT 429.52 650.10 Td (W) Tj ET Q q 0 0 0 rg BT 438.16 650.10 Td (e commenced our initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 638.10 Td (public of) Tj ET Q q 0 0 0 rg BT 125.64 638.10 Td (fering on ) Tj ET Q q 0 0 0 rg BT 163.97 638.10 Td (August 12, 2014 upon retaining KBS Capital Markets Group LLC, an af) Tj ET Q q 0 0 0 rg BT 453.47 638.10 Td (filiate of our advisor) Tj ET Q q 0 0 0 rg BT 534.99 638.10 Td (, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 626.10 Td (the dealer manager of our of) Tj ET Q q 0 0 0 rg BT 203.37 626.10 Td (fering. Initially) Tj ET Q q 0 0 0 rg BT 263.26 626.10 Td (, we were of) Tj ET Q q 0 0 0 rg BT 312.50 626.10 Td (fering 100,000,000 shares of common stock in our primary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 614.10 Td (of) Tj ET Q q 0 0 0 rg BT 98.15 614.10 Td (fering at an aggregate of) Tj ET Q q 0 0 0 rg BT 195.69 614.10 Td (fering price of up to $1.0 billion, or $10.00 per share with discounts available to certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 602.10 Td (categories of purchasers. ) Tj ET Q q 0 0 0 rg BT 193.94 602.10 Td (The 80,000,000 shares of) Tj ET Q q 0 0 0 rg BT 295.13 602.10 Td (fered under our dividend reinvestment plan were initially being ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 590.10 Td (of) Tj ET Q q 0 0 0 rg BT 98.15 590.10 Td (fered at an aggregate of) Tj ET Q q 0 0 0 rg BT 192.35 590.10 Td (fering price of $760 million, or $9.50 per share. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 572.10 Td (On February 1) Tj ET Q q 0 0 0 rg BT 147.95 572.10 Td (1, 2016, we filed an amended registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 407.52 572.10 Td (1 with the SEC to add a second class ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 560.10 Td (of common stock designated as Class ) Tj ET Q q 0 0 0 rg BT 242.02 560.10 Td (T) Tj ET Q q 0 0 0 rg BT 247.94 560.10 Td ( shares and to designate our currently outstanding common stock as Class ) Tj ET Q q 0 0 0 rg BT 544.56 560.10 Td (A) Tj ET Q q 0 0 0 rg BT 551.23 560.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 548.10 Td (shares. Pursuant to the registration statement, as amended, ef) Tj ET Q q 0 0 0 rg BT 333.36 548.10 Td (fective February 17, 2016 through June 7, 2017, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 536.10 Td (of) Tj ET Q q 0 0 0 rg BT 98.15 536.10 Td (fered Class ) Tj ET Q q 0 0 0 rg BT 144.80 536.10 Td (A) Tj ET Q q 0 0 0 rg BT 151.47 536.10 Td ( shares at a price of $10.00 per share and Class ) Tj ET Q q 0 0 0 rg BT 341.23 536.10 Td (T) Tj ET Q q 0 0 0 rg BT 347.16 536.10 Td ( shares at a price of $9.59 per share. Both classes of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 524.10 Td (shares have discounts available to certain categories of purchasers. ) Tj ET Q q 0 0 0 rg BT 359.16 524.10 Td (W) Tj ET Q q 0 0 0 rg BT 367.79 524.10 Td (e also of) Tj ET Q q 0 0 0 rg BT 401.49 524.10 Td (fered up to 76,366,006 in shares of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 512.10 Td (common stock pursuant to our dividend reinvestment plan: Class ) Tj ET Q q 0 0 0 rg BT 351.91 512.10 Td (A) Tj ET Q q 0 0 0 rg BT 358.58 512.10 Td ( shares at a price of $9.50 per share and Class ) Tj ET Q q 0 0 0 rg BT 543.33 512.10 Td (T) Tj ET Q q 0 0 0 rg BT 549.26 512.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 500.10 Td (shares at a price of $9.12 per share. Ef) Tj ET Q q 0 0 0 rg BT 243.09 500.10 Td (fective June 8, 2017, Class ) Tj ET Q q 0 0 0 rg BT 352.24 500.10 Td (A) Tj ET Q q 0 0 0 rg BT 358.91 500.10 Td ( shares are being of) Tj ET Q q 0 0 0 rg BT 436.47 500.10 Td (fered at $10.00 per share and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 488.10 Td (Class ) Tj ET Q q 0 0 0 rg BT 113.99 488.10 Td (T) Tj ET Q q 0 0 0 rg BT 119.92 488.10 Td ( shares at $9.63 per share. ) Tj ET Q q 0 0 0 rg BT 225.81 488.10 Td (W) Tj ET Q q 0 0 0 rg BT 234.45 488.10 Td (e are of) Tj ET Q q 0 0 0 rg BT 264.24 488.10 Td (fering to sell any combination of Class ) Tj ET Q q 0 0 0 rg BT 421.16 488.10 Td (A) Tj ET Q q 0 0 0 rg BT 427.83 488.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 471.26 488.10 Td (T) Tj ET Q q 0 0 0 rg BT 477.19 488.10 Td ( shares in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 476.10 Td (primary of) Tj ET Q q 0 0 0 rg BT 132.30 476.10 Td (fering and dividend reinvestment plan of) Tj ET Q q 0 0 0 rg BT 295.13 476.10 Td (fering but in no event may we sell more than 180,000,000 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 464.10 Td (shares of our common stock pursuant to the of) Tj ET Q q 0 0 0 rg BT 275.34 464.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 304.03 464.10 Td (W) Tj ET Q q 0 0 0 rg BT 312.67 464.10 Td (e reserve the right to reallocate shares between the primary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 452.10 Td (of) Tj ET Q q 0 0 0 rg BT 98.15 452.10 Td (fering and our dividend reinvestment plan of) Tj ET Q q 0 0 0 rg BT 276.81 452.10 Td (fering. Based on our current estimates, we have allocated 103,633,994 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 440.10 Td (and 76,366,006 shares of our common stock to our primary and dividend reinvestment plan of) Tj ET Q q 0 0 0 rg BT 466.41 440.10 Td (ferings, respectively) Tj ET Q q 0 0 0 rg BT 546.84 440.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 422.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.44 422.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.27 422.10 Td (, we had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.54 422.10 Td (12,242,387) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.54 422.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.98 422.10 Td (1) Tj ET Q q 0 0 0 rg BT 294.61 422.10 Td (1,443,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.61 422.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 399.05 422.10 Td (A) Tj ET Q q 0 0 0 rg BT 405.72 422.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 449.15 422.10 Td (T) Tj ET Q q 0 0 0 rg BT 455.07 422.10 Td ( common stock, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 410.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 137.66 410.10 Td (, in our ongoing initial public of) Tj ET Q q 0 0 0 rg BT 265.52 410.10 Td (fering for aggregate gross of) Tj ET Q q 0 0 0 rg BT 379.18 410.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.43 410.10 Td ($230.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.32 410.10 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 398.10 Td (initial public of) Tj ET Q q 0 0 0 rg BT 151.47 398.10 Td (fering, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.63 398.10 Td (496,426) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.13 398.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.56 398.10 Td (146,459) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.06 398.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 369.50 398.10 Td (A) Tj ET Q q 0 0 0 rg BT 376.17 398.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 419.60 398.10 Td (T) Tj ET Q q 0 0 0 rg BT 425.53 398.10 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 539.29 398.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 386.10 Td (under our dividend reinvestment plan for aggregate gross of) Tj ET Q q 0 0 0 rg BT 329.75 386.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.99 386.10 Td ($6.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.88 386.10 Td (. ) Tj ET Q q 0 0 0 rg BT 458.33 386.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.77 386.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.60 386.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 374.10 Td (had incurred selling commissions, dealer manager fees and or) Tj ET Q q 0 0 0 rg BT 336.68 374.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 428.96 374.10 Td (fering costs in connection with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 362.10 Td (our initial public of) Tj ET Q q 0 0 0 rg BT 167.30 362.10 Td (fering in the amounts set forth below) Tj ET Q q 0 0 0 rg BT 314.40 362.10 Td (. ) Tj ET Q q 0 0 0 rg BT 319.22 362.10 Td (W) Tj ET Q q 0 0 0 rg BT 327.86 362.10 Td (e pay selling commissions and dealer manager fees to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 350.10 Td (KBS Capital Markets Group, and KBS Capital Markets Group reallows all selling commissions and a portion of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 338.10 Td (dealer manager fees to participating broker) Tj ET Q q 0 0 0 rg BT 261.66 338.10 Td (-dealers. In addition, we reimburse KBS Capital ) Tj ET Q q 0 0 0 rg BT 456.34 338.10 Td (Advisors and KBS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 326.10 Td (Capital Markets Group for certain of) Tj ET Q q 0 0 0 rg BT 236.71 326.10 Td (fering expenses as described in our prospectus, as amended and supplemented.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 308.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 308.10 Td (e ceased of) Tj ET Q q 0 0 0 rg BT 142.87 308.10 Td (fering shares of common stock in our primary public of) Tj ET Q q 0 0 0 rg BT 364.58 308.10 Td (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.46 308.10 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.63 308.10 Td ( and are continuing to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 296.10 Td (process subscriptions. Subscriptions must be dated on or before July 31, 2018, and subscriptions and all related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 284.10 Td (documents and funds must be received by us in good order no later than September 28, 2018. ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 257.60 295.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 257.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 257.60 101.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 257.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 257.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 223.60 295.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 223.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 223.60 101.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 223.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 223.60 68.00 -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 90.5 257.6 m 385.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 257.6 m 490.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 257.6 m 562.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 257.6 m 490.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 223.60000000000002 m 490.5 223.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 211.60000000000002 m 490.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 209.60000000000002 m 490.5 209.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 93.00 261.83 Td (T) Tj ET Q q 0 0 0 rg BT 97.74 261.83 Td (ype of Expense ) Tj ET Q q 0 0 0 rg BT 150.41 261.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.15 261.83 Td (Amount \(in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.20 261.83 Td (Estimated/Actual) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 249.55 Td (Selling commissions and dealer manager fees ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 240.96 253.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.00 248.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.30 248.85 Td (14,193) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 517.30 248.85 Td (Actual) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 236.55 Td (Or) Tj ET Q q 0 0 0 rg BT 101.30 236.55 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 175.13 236.55 Td (fering costs \(excluding selling commissions, dealer manager ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 228.55 Td (fees and stockholder servicing fees\) ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 209.62 232.18 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.30 227.85 Td (2,261) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 517.30 227.85 Td (Actual) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 215.55 Td (T) Tj ET Q q 0 0 0 rg BT 97.33 215.55 Td (otal expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.00 214.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.30 214.85 Td (16,454) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 195.10 Td (______________________________________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 90.00 186.13 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 97.36 182.50 Td (Except as described in the “Plan of Distribution” section of our prospectus, as amended and supplemented, an annual stockholder servicing fee ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 172.90 Td (of 1.0% of the purchase price per share \(ignoring any discounts that may be available to certain categories of purchasers\) for the Class ) Tj ET Q q 0 0 0 rg BT 521.25 172.90 Td (T) Tj ET Q q 0 0 0 rg BT 526.00 172.90 Td ( shares ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 163.30 Td (sold in the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 248.27 163.30 Td (fering will be paid to our dealer manager and will accrue daily and be paid monthly in arrears. ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 153.70 Td (Our dealer manager will reallow all of the stockholder servicing fees paid to it. ) Tj ET Q q 0 0 0 rg BT 344.21 153.70 Td (The stockholder servicing fee is an ongoing fee that is not paid at ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 144.10 Td (the time of purchase and is not intended to be a principal use of of) Tj ET Q q 0 0 0 rg BT 301.35 144.10 Td (fering proceeds; it is therefore not included in the table above. ) Tj ET Q q 0 0 0 rg BT 503.72 144.10 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.28 144.10 Td (June 30, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 134.50 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 106.00 134.50 Td (, we had recorded approximately ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 213.07 134.50 Td ($1.7 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 252.18 134.50 Td ( in stockholder servicing fees, which is the estimated amount of the stockholder servicing fee ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 124.90 Td (payable with respect to all Class ) Tj ET Q q 0 0 0 rg BT 195.16 124.90 Td (T) Tj ET Q q 0 0 0 rg BT 199.90 124.90 Td ( shares sold in the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 382.17 124.90 Td (fering as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.60 124.90 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.26 124.90 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 90.00 115.92 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 97.36 112.30 Td (Or) Tj ET Q q 0 0 0 rg BT 105.66 112.30 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 179.49 112.30 Td (fering costs \(which exclude selling commissions, dealer manager fees and stockholder servicing fees\) are capped at ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 102.70 Td (1.0% of gross of) Tj ET Q q 0 0 0 rg BT 142.74 102.70 Td (fering proceeds from the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 346.54 102.70 Td (fering. KBS Capital ) Tj ET Q q 0 0 0 rg BT 413.86 102.70 Td (Advisors and its af) Tj ET Q q 0 0 0 rg BT 473.93 102.70 Td (filiates are responsible for ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 93.10 Td (any or) Tj ET Q q 0 0 0 rg BT 110.07 93.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 183.90 93.10 Td (fering costs related to the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 389.70 93.10 Td (fering that exceed this limit. ) Tj ET Q q 0 0 0 rg BT 483.53 93.10 Td (The amount included ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 83.50 Td (above represents our maximum liability for or) Tj ET Q q 0 0 0 rg BT 237.37 83.50 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 311.20 83.50 Td (fering costs based on the 1.0% limit. ) Tj ET Q q 0 0 0 rg BT 431.63 83.50 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.18 83.50 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.84 83.50 Td (, KBS Capital ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 73.90 Td (Advisors and its af) Tj ET Q q 0 0 0 rg BT 150.07 73.90 Td (filiates had incurred an additional ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.59 73.90 Td ($8.5 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.70 73.90 Td ( in or) Tj ET Q q 0 0 0 rg BT 315.44 73.90 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 389.27 73.90 Td (fering costs on our behalf in connection with our ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 64.30 Td (initial public of) Tj ET Q q 0 0 0 rg BT 139.18 64.30 Td (fering.) 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 \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Unr) Tj ET Q q 0 0 0 rg BT 107.54 730.60 Td (egister) Tj ET Q q 0 0 0 rg BT 135.68 730.60 Td (ed Sales of Equity Securities and Use of Pr) Tj ET Q q 0 0 0 rg BT 316.60 730.60 Td (oceeds \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 704.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 704.10 Td (e expect to use substantially all of the net proceeds from our initial public of) Tj ET Q q 0 0 0 rg BT 403.37 704.10 Td (fering to invest in and manage a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 692.10 Td (diverse portfolio of opportunistic real estate, real estate-related loans, real estate-related debt securities and other real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 680.10 Td (estate-related investments located in the United States and Europe. Such investments will include the acquisition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 668.10 Td (distressed debt, the origination and acquisition of mortgage, mezzanine, bridge and other real estate-related loans, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 656.10 Td (investment in opportunistic real estate and investments in real estate-related debt securities such as residential and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 644.10 Td (commercial mortgage-backed securities and collateralized debt obligations. ) Tj ET Q q 0 0 0 rg BT 394.14 644.10 Td (W) Tj ET Q q 0 0 0 rg BT 402.78 644.10 Td (e may also invest in entities that make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 632.10 Td (similar investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 614.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.44 614.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.27 614.10 Td (, we had used the net proceeds from our now terminated private of) Tj ET Q q 0 0 0 rg BT 435.83 614.10 Td (fering and our initial public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 602.10 Td (of) Tj ET Q q 0 0 0 rg BT 98.15 602.10 Td (fering and debt financing to invest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.11 602.10 Td ($568.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 602.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.78 602.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.78 602.10 Td ( hotel properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.76 602.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.42 602.10 Td ( of) Tj ET Q q 0 0 0 rg BT 422.07 602.10 Td (fice properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.54 602.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.98 602.10 Td ( apartment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 590.10 Td (building, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.33 590.10 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.77 590.10 Td ( investment in an unconsolidated entity) Tj ET Q q 0 0 0 rg BT 294.04 590.10 Td (, a leasehold interest through a joint venture to develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.47 590.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.91 590.10 Td ( retail ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 578.10 Td (property) Tj ET Q q 0 0 0 rg BT 123.23 578.10 Td (, one first mortgage loan and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.69 578.10 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.13 578.10 Td ( investment in real estate equity securities, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.57 578.10 Td ($18.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.46 578.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 566.10 Td (acquisition fees and closing costs and origination fees and expenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 548.10 Td (c\) ) Tj ET Q q 0 0 0 rg BT 90.00 548.10 Td (On July 3, 2013, our board of directors adopted a share redemption program that has been amended at various times ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 536.10 Td (thereafter and that may enable stockholders to sell their shares to us in limited circumstances. ) Tj ET Q q 0 0 0 rg BT 468.31 536.10 Td (The terms of the share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 524.10 Td (redemption program described below are the terms as are currently in ef) Tj ET Q q 0 0 0 rg BT 378.31 524.10 Td (fect. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 506.10 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 90.00 488.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 488.10 Td (Unless the shares are being redeemed in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 396.11 488.10 Td (’) Tj ET Q q 0 0 0 rg BT 398.89 488.10 Td (s death, “qualifying disability” or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 476.10 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 112.50 464.10 Td (shares until the stockholder has held the shares for one year) Tj ET Q q 0 0 0 rg BT 350.21 464.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 449.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 449.10 Td (During each calendar year) Tj ET Q q 0 0 0 rg BT 217.31 449.10 Td (, the share redemption program limits the number of shares we may redeem to those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 437.10 Td (that we could purchase with the amount of the net proceeds from the issuance of shares under the dividend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 425.10 Td (reinvestment plan during the prior calendar year) Tj ET Q q 0 0 0 rg BT 304.65 425.10 Td (. ) Tj ET Q q 0 0 0 rg BT 311.97 425.10 Td (W) Tj ET Q q 0 0 0 rg BT 320.61 425.10 Td (e may) Tj ET Q q 0 0 0 rg BT 344.11 425.10 Td (, however) Tj ET Q q 0 0 0 rg BT 383.14 425.10 Td (, increase or decrease the funding available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 413.10 Td (for the redemption of shares pursuant to the program upon ten business days’) Tj ET Q q 0 0 0 rg BT 420.58 413.10 Td ( notice to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 398.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 398.10 Td (During any calendar year) Tj ET Q q 0 0 0 rg BT 213.44 398.10 Td (, we may redeem no more than 5% of the weighted-average number of shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 386.10 Td (outstanding during the prior calendar year) Tj ET Q q 0 0 0 rg BT 279.95 386.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 371.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 371.10 Td (W) Tj ET Q q 0 0 0 rg BT 121.14 371.10 Td (e have no obligation to redeem shares if the redemption would violate the restrictions on distributions under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 359.10 Td (Maryland law) Tj ET Q q 0 0 0 rg BT 167.67 359.10 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 112.50 347.10 Td (solvency) Tj ET Q q 0 0 0 rg BT 147.40 347.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 326.10 Td (On June 6, 2017, our board of directors approved an estimated NA) Tj ET Q q 0 0 0 rg BT 355.59 326.10 Td (V) Tj ET Q q 0 0 0 rg BT 362.63 326.10 Td ( per share of our common stock of $9.05. ) Tj ET Q q 0 0 0 rg BT 529.54 326.10 Td (As a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 314.10 Td (result, and unless the shares are being redeemed in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 415.54 314.10 Td (’) Tj ET Q q 0 0 0 rg BT 418.32 314.10 Td (s death, qualifying disability) Tj ET Q q 0 0 0 rg BT 531.54 314.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 302.10 Td (determination of incompetence, the price at which we redeem the shares is as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 284.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 284.10 Td (For those shares held by the redeeming stockholder for at least one year) Tj ET Q q 0 0 0 rg BT 399.23 284.10 Td (, 92.5% of our most recent estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 272.10 Td (NA) Tj ET Q q 0 0 0 rg BT 125.65 272.10 Td (V) Tj ET Q q 0 0 0 rg BT 132.70 272.10 Td ( per share as of the applicable redemption date;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 257.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 257.10 Td (For those shares held by the redeeming stockholder for at least two years, 95.0% of our most recent estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 245.10 Td (NA) Tj ET Q q 0 0 0 rg BT 125.65 245.10 Td (V) Tj ET Q q 0 0 0 rg BT 132.70 245.10 Td ( per share as of the applicable redemption date;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 230.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 230.10 Td (For those shares held by the redeeming stockholder for at least three years, 97.5% of our most recent estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 218.10 Td (NA) Tj ET Q q 0 0 0 rg BT 125.65 218.10 Td (V) Tj ET Q q 0 0 0 rg BT 132.70 218.10 Td ( per share as of the applicable redemption date; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 203.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 203.10 Td (For those shares held by the redeeming stockholder for at least four years, 100% of our most recent estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 191.10 Td (NA) Tj ET Q q 0 0 0 rg BT 125.65 191.10 Td (V) Tj ET Q q 0 0 0 rg BT 132.70 191.10 Td ( per share as of the applicable redemption date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 170.10 Td (For purposes of determining the time period a redeeming stockholder has held each share, the time period begins as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 158.10 Td (of the date the stockholder acquired the share; provided, that shares purchased by the redeeming stockholder pursuant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 146.10 Td (to our dividend reinvestment plan and shares received as a stock dividend will be deemed to have been acquired on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 134.10 Td (the same date as the initial share to which the dividend reinvestment plan shares or stock dividend shares relate. ) Tj ET Q q 0 0 0 rg BT 541.63 134.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 122.10 Td (date of the share’) Tj ET Q q 0 0 0 rg BT 158.58 122.10 Td (s original issuance by us is not determinative. In addition, as described above, the shares owned by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 110.10 Td (a stockholder may be redeemed at dif) Tj ET Q q 0 0 0 rg BT 239.76 110.10 Td (ferent prices depending on how long the stockholder has held each share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 98.10 Td (submitted for redemption.) 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 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( II. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Unr) Tj ET Q q 0 0 0 rg BT 107.54 730.60 Td (egister) Tj ET Q q 0 0 0 rg BT 135.68 730.60 Td (ed Sales of Equity Securities and Use of Pr) Tj ET Q q 0 0 0 rg BT 316.60 730.60 Td (oceeds \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 704.10 Td (The terms of our share redemption program with respect to redemptions sought upon a stockholder) Tj ET Q q 0 0 0 rg BT 486.38 704.10 Td (’) Tj ET Q q 0 0 0 rg BT 489.16 704.10 Td (s death, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 692.10 Td (qualifying disability or determination of incompetence are as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 674.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 674.10 Td (There is no one-year holding requirement;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 659.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 659.10 Td (Additional funds in an amount up to $500,000 are available for redemption; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 644.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 644.10 Td (The redemption price is the estimated NA) Tj ET Q q 0 0 0 rg BT 278.94 644.10 Td (V) Tj ET Q q 0 0 0 rg BT 285.98 644.10 Td ( of the shares, as determined by our board of directors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 623.10 Td (Upon a transfer of shares any pending redemption requests with respect to such transferred shares will be canceled as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 611.10 Td (of the date we accept the transfer) Tj ET Q q 0 0 0 rg BT 221.60 611.10 Td (. Stockholders wishing to continue to have a redemption request related to any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 599.10 Td (transferred shares considered by us must resubmit their redemption request.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 581.10 Td (Our board may amend, suspend or terminate the share redemption program upon 30 days’) Tj ET Q q 0 0 0 rg BT 449.16 581.10 Td ( notice to stockholders, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 569.10 Td (provided that we may increase or decrease the funding available for the redemption of shares pursuant to the share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 557.10 Td (redemption program upon 10 business days’) Tj ET Q q 0 0 0 rg BT 266.73 557.10 Td ( notice. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 539.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.55 539.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.22 539.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.04 539.10 Td (June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.87 539.10 Td (, we fulfilled redemption requests and redeemed shares pursuant to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 527.10 Td (share redemption program as follows: ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 489.60 81.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.50 489.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.50 489.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 489.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 489.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 489.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 489.60 183.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 465.60 81.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.50 465.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.50 465.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 465.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 465.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 465.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 465.60 183.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 441.60 81.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.50 441.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.50 441.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 441.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 441.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 441.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 441.60 183.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 417.60 81.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.50 417.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.50 417.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 417.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 417.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 417.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 417.60 183.00 -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 90.5 489.6 m 171.5 489.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175.5 489.6 m 273.5 489.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 277.5 489.6 m 375.5 489.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 489.6 m 562.5 489.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 489.6 m 171.5 489.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175.5 417.6 m 273.5 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175.5 406.6 m 273.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175.5 404.6 m 273.5 404.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 118.90 493.83 Td (Month) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 183.25 501.83 Td (T) Tj ET Q q 0 0 0 rg BT 187.85 501.83 Td (otal Number) Tj ET Q q 0 0 0 rg BT 231.04 501.83 Td ( of Shar) Tj ET Q q 0 0 0 rg BT 258.00 501.83 Td (es ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 206.20 493.83 Td (Redeemed) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 241.74 497.46 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.50 501.83 Td (A) Tj ET Q q 0 0 0 rg BT 291.68 501.83 Td (verage Price Paid Per) Tj ET Q q 0 0 0 rg BT 365.50 501.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 312.35 493.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 328.65 493.83 Td (e) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 332.21 497.46 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.85 501.83 Td (Appr) Tj ET Q q 0 0 0 rg BT 400.93 501.83 Td (oximate Dollar) Tj ET Q q 0 0 0 rg BT 451.66 501.83 Td ( ) Tj ET Q q 0 0 0 rg BT 453.52 501.83 Td (V) Tj ET Q q 0 0 0 rg BT 458.56 501.83 Td (alue of Shar) Tj ET Q q 0 0 0 rg BT 499.75 501.83 Td (es ) Tj ET Q q 0 0 0 rg BT 507.98 501.83 Td (A) Tj ET Q q 0 0 0 rg BT 513.16 501.83 Td (vailable ) Tj ET Q q 0 0 0 rg BT 541.68 501.83 Td (That) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 397.70 493.83 Td (May ) Tj ET Q q 0 0 0 rg BT 414.95 493.83 Td (Y) Tj ET Q q 0 0 0 rg BT 419.84 493.83 Td (et Be Redeemed Under) Tj ET Q q 0 0 0 rg BT 498.12 493.83 Td ( the Pr) Tj ET Q q 0 0 0 rg BT 521.08 493.83 Td (ogram) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 481.55 Td (January 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.30 481.55 Td (72,262) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.00 481.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.30 481.55 Td (8.82) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 467.45 485.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 469.55 Td (February 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.30 469.55 Td (10,602) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.00 469.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.30 469.55 Td (8.37) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 467.45 473.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 457.55 Td (March 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.30 457.55 Td (1) Tj ET Q q 0 0 0 rg BT 252.30 457.55 Td (1,025) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.00 457.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.30 457.55 Td (8.57) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 467.45 461.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 445.55 Td (April 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.30 445.55 Td (27,994) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.00 445.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.30 445.55 Td (8.39) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 467.45 449.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 433.55 Td (May 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.30 433.55 Td (36,198) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.00 433.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.30 433.55 Td (8.53) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 467.45 437.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 421.55 Td (June 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.30 421.55 Td (84,916) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.00 421.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.30 421.55 Td (8.91) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 467.45 425.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 105.00 409.55 Td (T) Tj ET Q q 0 0 0 rg BT 109.33 409.55 Td (otal) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.30 409.55 Td (242,997) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 396.50 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 90.00 387.52 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 97.36 383.90 Td (Pursuant to the program, as amended, we will redeem shares at the purchase prices described above.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 90.00 374.93 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 97.36 371.30 Td (W) Tj ET Q q 0 0 0 rg BT 104.27 371.30 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 443.71 371.30 Td (six) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 453.04 371.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 501.70 371.30 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.37 371.30 Td (, we ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 361.70 Td (redeemed ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 123.09 361.70 Td ($2.1 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 162.20 361.70 Td ( of common stock, which 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 90.00 352.10 Td (June 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 122.66 352.10 Td ( redemption date. Based on the 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 540.09 352.10 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 556.09 352.10 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 342.50 Td (and the $0.2 million set aside for stockholder) Tj ET Q q 0 0 0 rg BT 234.71 342.50 Td (’) Tj ET Q q 0 0 0 rg BT 236.93 342.50 Td (s death, qualifying disability or determination of incompetence, we have ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.64 342.50 Td ($0.5 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 509.75 342.50 Td ( available for ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 332.90 Td (redemptions during the remainder of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 209.30 332.90 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 225.30 332.90 Td ( as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.63 332.90 Td (June 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.29 332.90 Td (, subject to the limitations described above.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 308.90 Td (Item 3. ) Tj ET Q q 0 0 0 rg BT 90.00 308.90 Td (Defaults upon Senior) Tj ET Q q 0 0 0 rg BT 179.83 308.90 Td ( Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 290.90 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 266.90 Td (Item 4. ) Tj ET Q q 0 0 0 rg BT 90.00 266.90 Td (Mine Safety Disclosur) Tj ET Q q 0 0 0 rg BT 183.70 266.90 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 248.90 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 224.90 Td (Item 5. ) Tj ET Q q 0 0 0 rg BT 90.00 224.90 Td (Other) Tj ET Q q 0 0 0 rg BT 115.37 224.90 Td ( Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 206.90 Td (None.) 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. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 6. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Exhibits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (54) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 697.5 m 105 697.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 109 697.5 m 563 697.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 701.23 Td (Ex.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 111.50 701.23 Td (Description) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 684.07 Td (3.1) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 682.7333984375 m 540.73828125 682.7333984375 l s q 0 0 1 rg BT 111.50 684.07 Td (Second ) Tj ET Q q 0 0 1 rg BT 142.89 684.07 Td (Articles of ) Tj ET Q q 0 0 1 rg BT 187.32 684.07 Td (Amendment and Restatement adopted on ) Tj ET Q q 0 0 1 rg BT 354.22 684.07 Td (August 1) Tj ET Q q 0 0 1 rg BT 390.25 684.07 Td (1, 2014, incorporated by reference 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 111.5 672.7333984375 m 526.705078125 672.7333984375 l s q 0 0 1 rg BT 111.50 674.07 Td (Exhibit 3.1 to the Company’) Tj ET Q q 0 0 1 rg BT 225.10 674.07 Td (s Quarterly Report on Form 10-Q for the period ended June 30, 2014, filed ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 662.7333984375 m 191.763671875 662.7333984375 l s q 0 0 1 rg BT 111.50 664.07 Td (September 19, 2014) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 645.07 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 111.5 643.7333984375 m 558.0625 643.7333984375 l s q 0 0 1 rg BT 111.50 645.07 Td (Second ) Tj ET Q q 0 0 1 rg BT 142.89 645.07 Td (Amended and Restated Bylaws adopted ) Tj ET Q q 0 0 1 rg BT 304.24 645.07 Td (August 6, 2015, incorporated by reference to Exhibit 3.2 to the ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 633.7333984375 m 520.2353515625 633.7333984375 l s q 0 0 1 rg BT 111.50 635.07 Td (Company’) Tj ET Q q 0 0 1 rg BT 153.17 635.07 Td (s Quarterly Report on Form 10-Q for the period ended June 30, 2015, filed ) Tj ET Q q 0 0 1 rg BT 454.21 635.07 Td (August 1) Tj ET Q q 0 0 1 rg BT 490.24 635.07 Td (1, 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 52.50 616.07 Td (3.3) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 614.7333984375 m 539.37109375 614.7333984375 l s q 0 0 1 rg BT 111.50 616.07 Td (Articles Supplementary for the Class ) Tj ET Q q 0 0 1 rg BT 261.56 616.07 Td (T) Tj ET Q q 0 0 1 rg BT 267.49 616.07 Td ( Shares of common stock dated February 16, 2016, incorporated by ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 604.7333984375 m 555.6796875 604.7333984375 l s q 0 0 1 rg BT 111.50 606.07 Td (reference to Exhibit 3.3 to Post-Ef) Tj ET Q q 0 0 1 rg BT 248.50 606.07 Td (fective ) Tj ET Q q 0 0 1 rg BT 277.65 606.07 Td (Amendment no. 4 to the Company’) Tj ET Q q 0 0 1 rg BT 418.75 606.07 Td (s Registration Statement on Form ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 594.7333984375 m 368.8974609375 594.7333984375 l s q 0 0 1 rg BT 111.50 596.07 Td (S-1) Tj ET Q q 0 0 1 rg BT 125.02 596.07 Td (1, Commission File no. 333-192331, filed February 16, 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 52.50 577.07 Td (3.4) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 575.7333984375 m 539.7421875 575.7333984375 l s q 0 0 1 rg BT 111.50 577.07 Td (Articles Supplementary for the Class ) Tj ET Q q 0 0 1 rg BT 261.19 577.07 Td (A) Tj ET Q q 0 0 1 rg BT 267.86 577.07 Td ( Shares of common stock dated February 16, 2016, incorporated by ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 565.7333984375 m 555.6796875 565.7333984375 l s q 0 0 1 rg BT 111.50 567.07 Td (reference to Exhibit 3.4 to Post-Ef) Tj ET Q q 0 0 1 rg BT 248.50 567.07 Td (fective ) Tj ET Q q 0 0 1 rg BT 277.65 567.07 Td (Amendment no. 4 to the Company’) Tj ET Q q 0 0 1 rg BT 418.75 567.07 Td (s Registration Statement on Form ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 555.7333984375 m 368.8974609375 555.7333984375 l s q 0 0 1 rg BT 111.50 557.07 Td (S-1) Tj ET Q q 0 0 1 rg BT 125.02 557.07 Td (1, Commission File no. 333-192331, filed February 16, 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 52.50 538.07 Td (3.5) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 536.7333984375 m 542.857421875 536.7333984375 l s q 0 0 1 rg BT 111.50 538.07 Td (Articles of ) Tj ET Q q 0 0 1 rg BT 155.93 538.07 Td (Amendment dated February 16, 2016, incorporated by reference to Exhibit 3.5 to Post-Ef) Tj ET Q q 0 0 1 rg BT 513.16 538.07 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 526.7333984375 m 552.5009765625 526.7333984375 l s q 0 0 1 rg BT 111.50 528.07 Td (Amendment no. 4 to the Company’) Tj ET Q q 0 0 1 rg BT 252.59 528.07 Td (s Registration Statement on Form S-1) Tj ET Q q 0 0 1 rg BT 403.05 528.07 Td (1, Commission File no. 333-192331, ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 516.7333984375 m 205.923828125 516.7333984375 l s q 0 0 1 rg BT 111.50 518.07 Td (filed February 16, 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 52.50 499.07 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 111.5 497.7333984375 m 535.85546875 497.7333984375 l s q 0 0 1 rg BT 111.50 499.07 Td (Form of Subscription ) Tj ET Q q 0 0 1 rg BT 199.00 499.07 Td (Agreement, incorporated by reference to ) Tj ET Q q 0 0 1 rg BT 363.37 499.07 Td (Appendix ) Tj ET Q q 0 0 1 rg BT 404.76 499.07 Td (A) Tj ET Q q 0 0 1 rg BT 411.43 499.07 Td ( to the prospectus filed in Post-) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 487.7333984375 m 542.5791015625 487.7333984375 l s q 0 0 1 rg BT 111.50 489.07 Td (Ef) Tj ET Q q 0 0 1 rg BT 120.76 489.07 Td (fective ) Tj ET Q q 0 0 1 rg BT 149.91 489.07 Td (Amendment no. 10 to the Company’) Tj ET Q q 0 0 1 rg BT 296.00 489.07 Td (s Registration Statement on Form S-1) Tj ET Q q 0 0 1 rg BT 446.46 489.07 Td (1, Commission File no. ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 477.7333984375 m 243.7119140625 477.7333984375 l s q 0 0 1 rg BT 111.50 479.07 Td (333-192331, filed ) Tj ET Q q 0 0 1 rg BT 185.10 479.07 Td (April 18, 2017) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 460.07 Td (4.2) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 458.7333984375 m 555.240234375 458.7333984375 l s q 0 0 1 rg BT 111.50 460.07 Td (Statement regarding restrictions on transferability of shares 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