%PDF-1.5 1 0 obj <> endobj 3 0 obj <>] /Rotate 0 /Contents 4 0 R>> endobj 4 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 18.00 Tf ET q 0 0 0 rg BT 235.55 720.65 Td (UNITED ST) Tj ET Q q 0 0 0 rg BT 330.74 720.65 Td (A) Tj ET Q q 0 0 0 rg BT 342.41 720.65 Td (TES) Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 112.70 699.05 Td (SECURITIES ) Tj ET Q q 0 0 0 rg BT 225.25 699.05 Td (AND EXCHANGE COMMISSION) Tj ET Q BT /F2 12.00 Tf ET q 0 0 0 rg BT 244.15 684.65 Td (W) Tj ET Q q 0 0 0 rg BT 255.49 684.65 Td (ashington, D.C. 20549) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 171.00 672.65 Td (______________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 660.65 Td ( ) Tj ET Q BT 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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 every Interactive Data File required to be submitted ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 229.65 Td (pursuant to Rule 405 of Regulation S-T) Tj ET Q q 0 0 0 rg BT 192.32 229.65 Td ( \(§232.405 of this chapter\) during the preceding 12 months \(or for such shorter period that the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 218.85 Td (registrant was required to submit such files\). ) Tj ET Q q 0 0 0 rg BT 218.88 218.85 Td (Y) Tj ET Q q 0 0 0 rg BT 224.48 218.85 Td (es ) Tj ET Q /GS0 gs q 9.54 0 0 9.18 236.47 216.91 cm /I5 Do Q /GS0 gs q 9.00 0 0 9.18 246.01 216.91 cm /I6 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.01 218.85 Td (No ) Tj ET Q /GS0 gs q 8.02 0 0 9.18 270.51 216.91 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 9.54 0 0 9.78 158.00 142.47 cm /I10 Do 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 72.00 64.25 Td (November 5, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 139.24 64.25 Td (, there were ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 183.71 64.25 Td (18,055,883) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 224.21 64.25 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 241.70 64.25 Td (12,172,486) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 282.20 64.25 Td ( outstanding shares of Class ) Tj ET Q q 0 0 0 rg BT 384.45 64.25 Td (A) Tj ET Q q 0 0 0 rg BT 390.45 64.25 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 429.53 64.25 Td (T) Tj ET Q q 0 0 0 rg BT 434.87 64.25 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 537.26 64.25 Td (, of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 53.45 Td (KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 170.08 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 264.25 706.25 Td (September) Tj ET Q q 0 0 0 rg BT 310.17 706.25 Td ( 30, 2018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.67 706.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 289.85 688.25 Td (INDEX) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.08 688.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 662.32 Td (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 504.1240234375 630.9833984375 l s q 0 0 1 rg BT 137.00 632.32 Td (Consolidated Balance Sheets as of September 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 498.953125 615.9833984375 l s q 0 0 1 rg BT 137.00 617.32 Td (Consolidated Statements of Operations \(unaudited\) for the ) Tj ET Q q 0 0 1 rg BT 373.15 617.32 Td (Three and Nine Months Ended ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 605.9833984375 m 256.7021484375 605.9833984375 l s q 0 0 1 rg BT 137.00 607.32 Td (September 30, 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 495.330078125 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 ) 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 339.7490234375 580.9833984375 l s q 0 0 1 rg BT 137.00 582.32 Td (Nine Months Ended September 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 490.80859375 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 Nine ) 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 326.9658203125 555.9833984375 l s q 0 0 1 rg BT 137.00 557.32 Td (Months Ended September 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 455.564453125 540.9833984375 l s q 0 0 1 rg BT 137.00 542.32 Td (Consolidated Statement of Cash Flows \(unaudited\) for the Nine Months Ended ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 530.9833984375 m 256.7021484375 530.9833984375 l s q 0 0 1 rg BT 137.00 532.32 Td (September 30, 2018 and 2017) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 137 515.9833984375 m 511.931640625 515.9833984375 l s q 0 0 1 rg BT 137.00 517.32 Td (Condensed Notes to Consolidated Financial Statements as of September 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 (34) 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 (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 549 470.9833984375 m 559 470.9833984375 l s q 0 0 1 rg BT 549.00 472.32 Td (51) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 455.9833984375 m 559 455.9833984375 l s q 0 0 1 rg BT 549.00 457.32 Td (52) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 440.9833984375 m 559 440.9833984375 l s q 0 0 1 rg BT 549.00 442.32 Td (52) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 425.9833984375 m 559 425.9833984375 l s q 0 0 1 rg BT 549.00 427.32 Td (52) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 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Tw 0 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 (57) 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 (58) 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 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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 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 284.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 284.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 284.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 284.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 247.75 340.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 247.75 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 247.75 82.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 247.75 4.00 -32.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 247.75 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 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 99.75 340.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 99.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 99.75 82.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 99.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 99.75 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 394.5 340.75 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 480.5 340.75 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 394.5 340.75 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 394.5 326.75 m 476.5 326.75 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 480.5 326.75 m 562.5 326.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 141.75 m 476.5 141.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 141.75 m 562.5 141.75 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 394.5 99.75 m 476.5 99.75 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 480.5 99.75 m 562.5 99.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 86.75 m 476.5 86.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 84.75 m 476.5 84.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 86.75 m 562.5 86.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 84.75 m 562.5 84.75 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 397.45 639.20 Td (September) Tj ET Q q 0 0 0 rg BT 438.86 639.20 Td ( 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 ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 597.21 Td (523,842) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 597.21 Td ($) 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 (6,814) 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 (530,656) 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 (27,038) 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 (6,638) 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 (2,810) 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 (6,791) 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 (69) 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 (8,297) 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 ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 457.21 Td (582,299) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 457.21 Td ($) 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 ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 429.21 Td (326,409) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 429.21 Td ($) 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 (7,859) 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 459.50 401.21 Td (271) 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 (473) 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 (8,1) Tj ET Q q 0 0 0 rg BT 464.00 373.21 Td (13) 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 (13,367) 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 71.00 345.21 Td (Redeemable common stock payable) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 452.75 345.21 Td (2,126) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 345.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 331.21 Td (T) Tj ET Q q 0 0 0 rg BT 57.87 331.21 Td (otal liabilities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 331.21 Td (358,618) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 331.21 Td (360,606) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 317.21 Td (Commitments and contingencies \(Note) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 193.72 317.21 Td ( 12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 204.97 317.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 303.21 Td (Redeemable common stock) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.50 303.21 Td (194) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 303.21 Td (2,61) Tj ET Q q 0 0 0 rg BT 554.50 303.21 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 289.21 Td (Equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 275.21 Td (KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 185.08 275.21 Td ( II, Inc. stockholders’) Tj ET Q q 0 0 0 rg BT 261.63 275.21 Td ( equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 261.21 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 71.00 252.21 Td (issued and outstanding) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.00 252.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 252.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 238.21 Td (Class ) Tj ET Q q 0 0 0 rg BT 92.26 238.21 Td (A) Tj ET Q q 0 0 0 rg BT 98.26 238.21 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 360.94 238.21 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 229.21 Td (17,963,199) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 111.50 229.21 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 128.99 229.21 Td (16,888,940) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 169.49 229.21 Td ( shares issued and outstanding as of) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.97 229.21 Td ( September 30, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 372.46 229.21 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 220.21 Td (and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 86.24 220.21 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 156.97 220.21 Td (, respectively) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.50 220.21 Td (180) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 220.21 Td (169) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 206.21 Td (Class ) Tj ET Q q 0 0 0 rg BT 92.59 206.21 Td (T) Tj ET Q q 0 0 0 rg BT 97.93 206.21 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 360.60 206.21 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 197.21 Td (12,100,736) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 111.50 197.21 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 128.99 197.21 Td (1) Tj ET Q q 0 0 0 rg BT 133.16 197.21 Td (1,031,895) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 169.16 197.21 Td ( shares issued and outstanding as of) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 297.64 197.21 Td ( September 30, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 372.13 197.21 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 188.21 Td (and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 86.24 188.21 Td (December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 156.97 188.21 Td (, respectively) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.50 188.21 Td (121) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 188.21 Td (1) Tj ET Q q 0 0 0 rg BT 550.00 188.21 Td (10) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 174.21 Td (Additional paid-in capital) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 174.21 Td (264,807) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 174.21 Td (245,077) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 160.21 Td (Cumulative distributions and net losses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.25 160.21 Td (\(55,269) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.00 160.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.25 160.21 Td (\(39,657) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 160.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 146.21 Td (Accumulated other comprehensive) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 196.45 146.21 Td ( income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 459.50 146.21 Td (1) Tj ET Q q 0 0 0 rg BT 464.00 146.21 Td (18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 146.21 Td (202) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 132.21 Td (T) Tj ET Q q 0 0 0 rg BT 69.87 132.21 Td (otal KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 205.69 132.21 Td ( II, Inc. stockholders’) Tj ET Q q 0 0 0 rg BT 282.25 132.21 Td ( equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 132.21 Td (209,957) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 132.21 Td (205,901) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 118.21 Td (Noncontrolling interests) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 448.25 118.21 Td (13,530) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 118.21 Td (13,397) 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 equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 104.21 Td (223,487) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 104.21 Td (219,298) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 90.21 Td (T) Tj ET Q q 0 0 0 rg BT 57.87 90.21 Td (otal liabilities and equity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.00 90.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 443.75 90.21 Td (582,299) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.00 90.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.75 90.21 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 68.25 Td (See accompanying condensed notes to consolidated financial statements.) 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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 354.5 381.75 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 407.5 381.75 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 460.5 381.75 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 513.5 381.75 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 354.5 381.75 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 354.5 367.75 m 403.5 367.75 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 407.5 367.75 m 456.5 367.75 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 460.5 367.75 m 509.5 367.75 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 513.5 367.75 m 562.5 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 297.75 m 403.5 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 297.75 m 456.5 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 297.75 m 509.5 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 297.75 m 562.5 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 297.75 m 403.5 297.75 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 407.5 297.75 m 456.5 297.75 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 460.5 297.75 m 509.5 297.75 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 513.5 297.75 m 562.5 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 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 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 354.5 227.75 m 403.5 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 227.75 m 456.5 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 227.75 m 509.5 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 227.75 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 354.5 227.75 m 403.5 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 214.75 m 403.5 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 212.75 m 403.5 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 227.75 m 456.5 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 214.75 m 456.5 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 212.75 m 456.5 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 227.75 m 509.5 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 214.75 m 509.5 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 212.75 m 509.5 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 227.75 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 513.5 214.75 m 562.5 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 212.75 m 562.5 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 212.75 m 403.5 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 214.75 m 403.5 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 212.75 m 456.5 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 214.75 m 456.5 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 212.75 m 509.5 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 214.75 m 509.5 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 212.75 m 562.5 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 214.75 m 562.5 214.75 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 354.5 158.75 m 403.5 158.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 156.75 m 403.5 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 158.75 m 456.5 158.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 156.75 m 456.5 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 158.75 m 509.5 158.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 156.75 m 509.5 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 158.75 m 562.5 158.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 156.75 m 562.5 156.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 144.75 m 403.5 144.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 142.75 m 403.5 142.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 144.75 m 456.5 144.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 142.75 m 456.5 142.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 144.75 m 509.5 144.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 142.75 m 509.5 142.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 144.75 m 562.5 144.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 142.75 m 562.5 142.75 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 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 88.75 m 403.5 88.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 86.75 m 403.5 86.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 88.75 m 456.5 88.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 86.75 m 456.5 86.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 88.75 m 509.5 88.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 86.75 m 509.5 86.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 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 513.5 86.75 m 562.5 86.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 74.75 m 403.5 74.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 72.75 m 403.5 72.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 74.75 m 456.5 74.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 72.75 m 456.5 72.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 74.75 m 509.5 74.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 72.75 m 509.5 72.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 74.75 m 562.5 74.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 72.75 m 562.5 72.75 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 377.55 624.20 Td (September) Tj ET Q q 0 0 0 rg BT 418.96 624.20 Td ( 30,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 472.45 633.20 Td (Nine Months Ended) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 483.55 624.20 Td (September) Tj ET Q q 0 0 0 rg BT 524.96 624.20 Td ( 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 ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.75 582.21 Td (7,515) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 582.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 582.21 Td (4,218) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.00 582.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.25 582.21 Td (22,475) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.00 582.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 582.21 Td (7,824) 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 (10,461) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.25 568.21 Td (12,160) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.25 568.21 Td (26,234) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 568.21 Td (23,473) 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 (1,940) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 554.21 Td (1,746) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.75 554.21 Td (5,459) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 554.21 Td (5,184) 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 (77) 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 492.50 540.21 Td (1) Tj ET Q q 0 0 0 rg BT 497.00 540.21 Td (13) 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 (103) 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 (303) 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 (19,993) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.25 512.21 Td (18,227) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.25 512.21 Td (54,291) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 512.21 Td (36,784) 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 (3,241) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 484.21 Td (1,536) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.75 484.21 Td (8,951) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 484.21 Td (2,713) 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 (6,106) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 470.21 Td (5,807) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.25 470.21 Td (17,161) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 470.21 Td (14,839) 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 (976) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 456.21 Td (1,026) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.75 456.21 Td (2,858) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 456.21 Td (2,724) 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 379.75 442.21 Td (1,020) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.50 442.21 Td (739) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.75 442.21 Td (2,940) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 442.21 Td (1,820) 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 (704) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 428.21 Td (1,146) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.75 428.21 Td (1,947) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 428.21 Td (2,492) 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 (5,150) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 414.21 Td (3,709) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.25 414.21 Td (15,322) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 414.21 Td (9,176) 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 (3,435) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 400.21 Td (2,255) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.75 400.21 Td (9,740) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 400.21 Td (5,798) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 386.21 Td (Impairment char) Tj ET Q q 0 0 0 rg BT 130.56 386.21 Td (ge on real estate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 379.75 386.21 Td (4,245) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.00 386.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.75 386.21 Td (4,245) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 386.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 372.21 Td (T) Tj ET Q q 0 0 0 rg BT 57.87 372.21 Td (otal expenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.25 372.21 Td (24,877) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.25 372.21 Td (16,218) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 481.25 372.21 Td (63,164) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.25 372.21 Td (39,562) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 358.21 Td (Other ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 75.74 358.21 Td (\(loss\) income:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 344.21 Td (Other interest income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.50 344.21 Td (105) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.50 344.21 Td (178) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.50 344.21 Td (257) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.50 344.21 Td (467) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 330.21 Td (Equity in income of unconsolidated entity) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 330.21 Td (94) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.00 330.21 Td (14) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.50 330.21 Td (225) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 330.21 Td (40) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 316.21 Td (Loss ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 90.25 316.21 Td (on real estate equity securities) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.50 316.21 Td (\(486) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 316.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 444.00 316.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 489.50 316.21 Td (\(172) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 316.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.00 316.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 302.21 Td (Casualty-related income, net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 302.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 302.21 Td (1,614) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 497.00 302.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 302.21 Td (1,614) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 288.21 Td (T) Tj ET Q q 0 0 0 rg BT 57.87 288.21 Td (otal other) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 92.11 288.21 Td ( \(loss\) income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.50 288.21 Td (\(287) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 288.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 288.21 Td (1,806) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.50 288.21 Td (310) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.75 288.21 Td (2,121) 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 ( \(loss\) income ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 119.23 274.21 Td (before income taxes) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 376.75 274.21 Td (\(5,171) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 274.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 274.21 Td (3,815) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.75 274.21 Td (\(8,563) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 274.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 274.21 Td (\(657) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 274.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 260.21 Td (Income tax ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 113.48 260.21 Td (\(expense\) benefit) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.00 260.21 Td (—) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.50 260.21 Td (\(431) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 260.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.50 260.21 Td (9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 260.21 Td (5) 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 ( \(loss\) income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 376.75 246.21 Td (\(5,171) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 246.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 246.21 Td (3,384) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.75 246.21 Td (\(8,554) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 246.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 246.21 Td (\(652) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 246.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 232.21 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 83.99 232.21 Td ( loss \(income\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 137.23 232.21 Td (attributable to noncontrolling interests) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.50 232.21 Td (208) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.50 232.21 Td (\(491) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 453.00 232.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.50 232.21 Td (421) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 232.21 Td (\(182) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 232.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 218.21 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.99 218.21 Td ( \(loss\) income ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 119.23 218.21 Td (attributable to common stockholders) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.00 218.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 376.75 218.21 Td (\(4,963) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 218.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 218.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 218.21 Td (2,893) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.00 218.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.75 218.21 Td (\(8,133) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 218.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.00 218.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 218.21 Td (\(834) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 218.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 190.21 Td (Class ) Tj ET Q q 0 0 0 rg BT 74.26 190.21 Td (A) Tj ET Q q 0 0 0 rg BT 80.26 190.21 Td ( Common Stock:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 176.21 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.99 176.21 Td ( \(loss\) income ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 119.23 176.21 Td (attributable to common stockholders) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.00 176.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 376.75 176.21 Td (\(2,914) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 176.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 176.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 432.75 176.21 Td (1,904) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.00 176.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.75 176.21 Td (\(4,514) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 176.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.00 176.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 176.21 Td (\(124) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 176.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 162.21 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.99 162.21 Td ( \(loss\) income ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 119.23 162.21 Td (per common share, basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.00 162.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.25 162.21 Td (\(0.16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 162.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 162.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.25 162.21 Td (0.12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.00 162.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.25 162.21 Td (\(0.26) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 162.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.00 162.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.25 162.21 Td (\(0.01) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 162.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 148.21 Td (W) Tj ET Q q 0 0 0 rg BT 60.77 148.21 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 359.50 148.21 Td (17,938,824) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.50 148.21 Td (16,514,730) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 148.21 Td (17,640,671) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.50 148.21 Td (15,759,082) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 120.21 Td (Class ) Tj ET Q q 0 0 0 rg BT 74.59 120.21 Td (T) Tj ET Q q 0 0 0 rg BT 79.93 120.21 Td ( Common Stock:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 106.21 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.99 106.21 Td ( \(loss\) income ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 119.23 106.21 Td (attributable to common stockholders) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.00 106.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 376.75 106.21 Td (\(2,049) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 106.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 106.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 439.50 106.21 Td (989) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.00 106.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.75 106.21 Td (\(3,619) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 106.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.00 106.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 106.21 Td (\(710) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 106.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 92.21 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.99 92.21 Td ( \(loss\) income ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 119.23 92.21 Td (per common share, basic and diluted) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 357.00 92.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.25 92.21 Td (\(0.17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.00 92.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 410.00 92.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 437.25 92.21 Td (0.09) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.00 92.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 487.25 92.21 Td (\(0.31) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 506.00 92.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 516.00 92.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 540.25 92.21 Td (\(0.08) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.00 92.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 78.21 Td (W) Tj ET Q q 0 0 0 rg BT 60.77 78.21 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 78.21 Td (12,044,757) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.50 78.21 Td (10,714,415) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 465.50 78.21 Td (1) Tj ET Q q 0 0 0 rg BT 470.00 78.21 Td (1,733,316) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.00 78.21 Td (9,339,643) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 56.25 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.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 137.40 695.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 197.22 695.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 231.78 695.25 Td (A) Tj ET Q q 0 0 0 rg BT 238.25 695.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 303.17 695.25 Td ( COMPREHENSIVE INCOME \(LOSS\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 677.25 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 659.25 Td (\(in thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 56.50 605.75 238.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 605.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 605.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.50 605.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 605.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 605.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 605.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 605.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 605.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 56.50 577.75 238.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 577.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 577.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.50 577.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 577.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 577.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 577.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 577.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 577.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 56.50 549.75 238.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 549.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 549.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.50 549.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 549.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 549.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 549.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 549.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 549.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 56.50 512.75 238.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 512.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 512.75 61.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.50 512.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 363.50 512.75 61.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 512.75 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 512.75 61.00 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0 j 3 M 363.5 605.75 m 424.5 605.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 619.75 m 489.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 605.75 m 489.5 605.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 619.75 m 493.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 619.75 m 554.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 605.75 m 554.5 605.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 605.75 m 359.5 605.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 605.75 m 424.5 605.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 605.75 m 489.5 605.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 605.75 m 554.5 605.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 563.75 m 359.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 563.75 m 489.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 563.75 m 359.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 549.75 m 359.5 549.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 563.75 m 424.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 549.75 m 424.5 549.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 563.75 m 489.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 549.75 m 489.5 549.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 563.75 m 554.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 549.75 m 554.5 549.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 512.75 m 359.5 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 512.75 m 424.5 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 512.75 m 489.5 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 512.75 m 554.5 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 512.75 m 359.5 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 490.75 m 359.5 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 488.75 m 359.5 488.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 512.75 m 424.5 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 490.75 m 424.5 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 363.5 488.75 m 424.5 488.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 512.75 m 489.5 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 490.75 m 489.5 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 488.75 m 489.5 488.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 512.75 m 554.5 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 490.75 m 554.5 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 488.75 m 554.5 488.75 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 624.21 Td ( ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 320.05 633.20 Td (Thr) Tj ET Q q 0 0 0 rg BT 334.89 633.20 Td (ee Months Ended ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 333.55 624.20 Td (September) Tj ET Q q 0 0 0 rg BT 374.88 624.20 Td ( 30,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 452.45 633.20 Td (Nine Months Ended ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 463.55 624.20 Td (September) Tj ET Q q 0 0 0 rg BT 504.88 624.20 Td ( 30,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 319.50 610.20 Td (2018) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 384.50 610.20 Td (2017) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 449.50 610.20 Td (2018) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 514.50 610.20 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 596.21 Td (Net) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.99 596.21 Td ( \(loss\) income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 301.00 596.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 332.75 596.21 Td (\(5,171) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.00 596.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 366.00 596.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.75 596.21 Td (3,384) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.00 596.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.75 596.21 Td (\(8,554) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 596.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.00 596.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.50 596.21 Td (\(652) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.00 596.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 582.21 Td (Other comprehensive) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 136.22 582.21 Td ( \(loss\) income:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 71.00 568.21 Td (Foreign currency translation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 172.97 568.21 Td ( \(loss\) gain) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.00 568.21 Td (\(16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.00 568.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.00 568.21 Td (82) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 568.21 Td (\(84) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 568.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.50 568.21 Td (273) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 554.21 Td (T) Tj ET Q q 0 0 0 rg BT 63.87 554.21 Td (otal other comprehensive) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 154.84 554.21 Td ( \(loss\) income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 344.00 554.21 Td (\(16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.00 554.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.00 554.21 Td (82) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.00 554.21 Td (\(84) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 554.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 537.50 554.21 Td (273) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 540.21 Td (T) Tj ET Q q 0 0 0 rg BT 63.87 540.21 Td (otal comprehensive) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 134.09 540.21 Td ( \(loss\) income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 332.75 540.21 Td (\(5,187) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.00 540.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.75 540.21 Td (3,466) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.75 540.21 Td (\(8,638) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 540.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.50 540.21 Td (\(379) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.00 540.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 526.21 Td (T) Tj ET Q q 0 0 0 rg BT 63.87 526.21 Td (otal comprehensive) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 134.09 526.21 Td ( loss \(income\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 187.33 526.21 Td (attributable to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 517.21 Td (noncontrolling interests) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.50 517.21 Td (208) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.50 517.21 Td (\(491) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 421.00 517.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.50 517.21 Td (421) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.50 517.21 Td (\(182) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.00 517.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 503.21 Td (T) Tj ET Q q 0 0 0 rg BT 63.87 503.21 Td (otal comprehensive) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 134.09 503.21 Td ( \(loss\) income ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 187.33 503.21 Td (attributable to common ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 494.21 Td (stockholders) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 301.00 494.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 332.75 494.21 Td (\(4,979) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.00 494.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 366.00 494.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.75 494.21 Td (2,975) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.00 494.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 462.75 494.21 Td (\(8,217) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.00 494.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 496.00 494.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.50 494.21 Td (\(561) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.00 494.21 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 472.25 Td (See accompanying condensed notes to consolidated financial statements.) Tj ET Q endstream endobj 13 0 obj <>] /Rotate 0 /Contents 14 0 R>> endobj 14 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (5) 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 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 128.10 677.25 Td (For the ) Tj ET Q q 0 0 0 rg BT 158.84 677.25 Td (Y) Tj ET Q q 0 0 0 rg BT 165.06 677.25 Td (ear Ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.81 677.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.40 677.25 Td ( and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.55 677.25 Td (Nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.99 677.25 Td ( Months Ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.60 677.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.86 677.25 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 (\(8,133) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.50 411.59 Td (\)) 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 (\(8,133) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 411.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 506.50 411.59 Td (\(421) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 517.50 411.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 545.00 411.59 Td (\(8,554) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 411.59 Td (\)) 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 (\(84) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 421.50 400.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 459.50 400.59 Td (\(84) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 400.59 Td (\)) 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 (\(84) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 400.59 Td (\)) 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 154.50 389.59 Td (1,047,279) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 206.50 389.59 Td (10) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 232.00 389.59 Td (937,874) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 282.50 389.59 Td (9) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 307.00 389.59 Td (19,074) 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 (19,093) 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 (19,093) 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 (260,498) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 209.50 378.59 Td (3) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 232.00 378.59 Td (173,135) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 282.50 378.59 Td (2) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 310.00 378.59 Td (3,919) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 355.00 378.59 Td (\(3,924) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.50 378.59 Td (\)) 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 (\(233,518) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 178.50 367.59 Td (\)) 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 (\(42,168) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 251.50 367.59 Td (\)) 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 (\(2,415) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 323.50 367.59 Td (\)) 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 (\(2,417) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 367.59 Td (\)) 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 (\(2,417) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 367.59 Td (\)) 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 (291) 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 (291) 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 (291) 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 (\(3,555) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.50 339.59 Td (\)) 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 (\(3,555) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 339.59 Td (\)) 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 (\(3,555) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 339.59 Td (\)) 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 (\(965) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 323.50 316.59 Td (\)) 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 (\(965) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 316.59 Td (\)) 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 (\(965) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 316.59 Td (\)) 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 (\(174) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 323.50 305.59 Td (\)) 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 (\(174) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 467.50 305.59 Td (\)) 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 (\(174) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 305.59 Td (\)) 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 504.00 288.59 Td (1,054) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 547.00 288.59 Td (1,054) 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 (\(500) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 517.50 271.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 549.50 271.59 Td (\(500) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 560.50 271.59 Td (\)) 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 ( September 30, 2018) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 151.50 260.59 Td (17,963,199) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 187.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 203.50 260.59 Td (180) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 224.50 260.59 Td (12,100,736) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 260.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 276.50 260.59 Td (121) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 294.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 304.00 260.59 Td (264,807) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 332.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 352.00 260.59 Td (\(55,269) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 370.50 260.59 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 379.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 412.50 260.59 Td (1) Tj ET Q q 0 0 0 rg BT 415.50 260.59 Td (18) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 430.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 448.00 260.59 Td (209,957) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 476.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 501.00 260.59 Td (13,530) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 526.50 260.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 541.00 260.59 Td (223,487) 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 188.65 701.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 248.47 701.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 283.02 701.25 Td (A) Tj ET Q q 0 0 0 rg BT 289.50 701.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 354.42 701.25 Td ( CASH FLOWS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 689.25 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 677.25 Td (\(in thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 646.75 374.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 646.75 4.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 646.75 65.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 646.75 4.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 646.75 65.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 628.75 374.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 628.75 4.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 628.75 65.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 628.75 4.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 628.75 65.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 610.75 374.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 610.75 4.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 610.75 65.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 610.75 4.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 610.75 65.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 592.75 374.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 592.75 4.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 592.75 65.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 592.75 4.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 592.75 65.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 574.75 374.00 -9.00 re f /GS0 gs 0.8 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496.50 538.75 65.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 520.75 374.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 520.75 4.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 520.75 65.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 520.75 4.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 520.75 65.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 502.75 374.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 502.75 4.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 502.75 65.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 502.75 4.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 502.75 65.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 484.75 374.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 484.75 4.00 -9.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 484.75 65.00 -9.00 re f 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0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 149.75 m 561.5 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 147.75 m 561.5 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 139.75 m 492.5 139.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 137.75 m 492.5 137.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 139.75 m 561.5 139.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 137.75 m 561.5 137.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 137.75 m 492.5 137.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 139.75 m 492.5 139.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 129.75 m 492.5 129.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 127.75 m 492.5 127.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 137.75 m 561.5 137.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 139.75 m 561.5 139.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 129.75 m 561.5 129.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 127.75 m 561.5 127.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 119.75 m 492.5 119.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 117.75 m 492.5 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 119.75 m 561.5 119.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 117.75 m 561.5 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 117.75 m 492.5 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 119.75 m 492.5 119.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 109.75 m 492.5 109.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 107.75 m 492.5 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 117.75 m 561.5 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 119.75 m 561.5 119.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 109.75 m 561.5 109.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 107.75 m 561.5 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 99.75 m 492.5 99.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 97.75 m 492.5 97.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 99.75 m 561.5 99.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 97.75 m 561.5 97.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 89.75 m 492.5 89.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 87.75 m 492.5 87.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 89.75 m 561.5 89.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 87.75 m 561.5 87.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 87.75 m 492.5 87.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 89.75 m 492.5 89.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 79.75 m 492.5 79.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 77.75 m 492.5 77.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 87.75 m 561.5 87.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 89.75 m 561.5 89.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 79.75 m 561.5 79.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 77.75 m 561.5 77.75 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 430.05 659.51 Td (For) Tj ET Q q 0 0 0 rg BT 440.81 659.51 Td ( the Nine Months Ended September) Tj ET Q q 0 0 0 rg BT 547.43 659.51 Td ( 30,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 452.50 648.56 Td (2018) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 521.50 648.56 Td (2017) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.00 639.45 Td (Cash Flows from Operating ) Tj ET Q q 0 0 0 rg BT 131.33 639.45 Td (Activities:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 630.45 Td (Net ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 81.86 630.45 Td (loss) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 430.00 630.45 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 471.55 630.45 Td (\(8,554) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 630.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.00 630.45 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 545.80 630.45 Td (\(652) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 630.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 621.45 Td (Adjustment to reconcile) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 137.26 621.45 Td ( net loss ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 161.95 621.45 Td (to net cash) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 191.89 621.45 Td ( provided by) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 227.27 621.45 Td ( operating activities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 612.45 Td (Equity in income of unconsolidated entity) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 476.80 612.45 Td (\(225) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 612.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.30 612.45 Td (\(40) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 612.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 603.45 Td (Distribution of earnings from unconsolidated entity) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 482.65 603.45 Td (29) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 551.65 603.45 Td (40) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 594.45 Td (Casualty-related income, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 482.65 594.45 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.55 594.45 Td (\(1,614) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 594.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 585.45 Td (Depreciation and amortization) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 470.40 585.45 Td (15,322) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.90 585.45 Td (9,176) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 576.45 Td (Impairment char) Tj ET Q q 0 0 0 rg BT 146.32 576.45 Td (ge on real estate) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 473.90 576.45 Td (4,245) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 551.65 576.45 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 567.45 Td (Loss ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 114.97 567.45 Td (on real estate equity securities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 479.15 567.45 Td (172) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 551.65 567.45 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 558.45 Td (Noncash interest income on real estate-related investment) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 482.65 558.45 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.30 558.45 Td (\(58) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 558.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 549.45 Td (Deferred rents) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 471.55 549.45 Td (\(1,244) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 549.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 545.80 549.45 Td (\(319) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 549.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 540.45 Td (Bad debt expense) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 479.15 540.45 Td (285) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 548.15 540.45 Td (425) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 531.45 Td (Amortization of above- and below-market leases, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 471.55 531.45 Td (\(2,656) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 531.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 545.80 531.45 Td (\(974) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 531.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 522.45 Td (Amortization of deferred financing costs) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 479.15 522.45 Td (794) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 548.15 522.45 Td (612) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 513.45 Td (Unrealized \(gain\) loss on derivative instruments) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 480.30 513.45 Td (\(84) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 513.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 548.15 513.45 Td (1) Tj ET Q q 0 0 0 rg BT 551.65 513.45 Td (17) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 88.00 504.45 Td (Changes in operating assets and liabilities:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 495.45 Td (Rents and other receivables) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 471.55 495.45 Td (\(2,521) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 495.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 545.80 495.45 Td (\(499) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 495.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 486.45 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 471.55 486.45 Td (\(1,633) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 486.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.90 486.45 Td (2,444) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 477.45 Td (Accounts payable and accrued liabilities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 479.15 477.45 Td (538) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 548.15 477.45 Td (509) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 468.45 Td (Due to af) Tj ET Q q 0 0 0 rg BT 125.92 468.45 Td (filiates) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 482.65 468.45 Td (20) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 551.65 468.45 Td (23) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 100.00 459.45 Td (Other liabilities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 473.90 459.45 Td (1,1) Tj ET Q q 0 0 0 rg BT 482.65 459.45 Td (15) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.90 459.45 Td (1,176) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 112.00 450.45 Td (Net cash ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 138.04 450.45 Td (provided by) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 171.68 450.45 Td ( operating activities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 473.90 450.45 Td (5,603) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 539.40 450.45 Td (10,366) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.00 441.45 Td (Cash Flows from Investing ) Tj ET Q q 0 0 0 rg BT 129.39 441.45 Td (Activities:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 432.45 Td (Acquisition of real estate) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 482.65 432.45 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 533.55 432.45 Td (\(154,719) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 432.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 423.45 Td (Improvements to real estate) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 471.55 423.45 Td (\(6,485) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 423.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.55 423.45 Td (\(7,830) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 423.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 414.45 Td (Investment in real estate securities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 471.55 414.45 Td (\(6,986) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 414.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 551.65 414.45 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 405.45 Td (Payments for construction in progress) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 471.55 405.45 Td (\(4,796) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 405.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.55 405.45 Td (\(4,103) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 405.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 396.45 Td (Payof) Tj ET Q q 0 0 0 rg BT 86.20 396.45 Td (f of real estate loan receivable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 473.90 396.45 Td (3,500) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 551.65 396.45 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 387.45 Td (Purchase of interest rate cap agreement) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 483.80 387.45 Td (\(8) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 387.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 551.65 387.45 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 378.45 Td (Escrow deposits for future real estate purchases) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 482.65 378.45 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.55 378.45 Td (\(1,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 378.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 369.45 Td (Proceeds from insurance claims) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 479.15 369.45 Td (237) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.90 369.45 Td (5,080) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 112.00 360.45 Td (Net cash ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 138.04 360.45 Td (used in) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 158.07 360.45 Td ( investing activities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 468.05 360.45 Td (\(14,538) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 360.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 533.55 360.45 Td (\(162,572) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 360.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.00 351.45 Td (Cash Flows from Financing ) Tj ET Q q 0 0 0 rg BT 131.33 351.45 Td (Activities:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 342.45 Td (Proceeds from notes payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 473.90 342.45 Td (2,058) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 539.40 342.45 Td (97,374) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 333.45 Td (Principal payments on notes payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 471.55 333.45 Td (\(5,154) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 333.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 551.65 333.45 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 324.45 Td (Payments of deferred financing costs ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 476.80 324.45 Td (\(100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 324.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.55 324.45 Td (\(1,225) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 324.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 315.45 Td (Principal payments on capital lease obligations) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 476.80 315.45 Td (\(175) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 315.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 551.65 315.45 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 306.45 Td (Proceeds from issuance of common stock) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 470.40 306.45 Td (16,921) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 539.40 306.45 Td (61,559) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 297.45 Td (Payments to redeem common stock) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 471.55 297.45 Td (\(2,417) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 297.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 545.80 297.45 Td (\(634) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 297.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 288.45 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 471.55 288.45 Td (\(1,645) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 288.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.55 288.45 Td (\(3,803) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 288.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 279.45 Td (Payments of other of) Tj ET Q q 0 0 0 rg BT 128.39 279.45 Td (fering costs) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 471.55 279.45 Td (\(1,162) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 279.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 551.65 279.45 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 270.45 Td (Distributions paid) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 471.55 270.45 Td (\(1,322) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 270.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 540.55 270.45 Td (\(1,059) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 270.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 261.45 Td (Noncontrolling interest contributions) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 473.90 261.45 Td (1,054) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 548.15 261.45 Td (500) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 252.45 Td (Distributions to noncontrolling interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 476.80 252.45 Td (\(500) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 252.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 549.30 252.45 Td (\(25) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 558.65 252.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 112.00 243.45 Td (Net cash ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 138.04 243.45 Td (provided by ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 173.43 243.45 Td (financing activities) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 473.90 243.45 Td (7,558) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 535.90 243.45 Td (152,687) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.00 234.45 Td (Net ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 63.86 234.45 Td (\(decrease\) increase ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 119.04 234.45 Td (in cash, cash equivalents and restricted cash) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 471.55 234.45 Td (\(1,377) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 234.45 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 548.15 234.45 Td (481) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.00 225.45 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 470.40 225.45 Td (35,053) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 539.40 225.45 Td (47,126) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.00 216.45 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 430.00 216.45 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 470.40 216.45 Td (33,676) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.00 216.45 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 539.40 216.45 Td (47,607) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.00 207.45 Td (Supplemental Disclosure of Cash Flow Information:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 198.40 Td (Interest paid, net of capitalized interest of) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 186.42 198.40 Td ( $3,920 ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 209.17 198.40 Td (and ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 221.03 198.40 Td ($2,985) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 240.28 198.40 Td ( for the) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 260.49 198.40 Td ( nine) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 274.30 198.40 Td ( months ended) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 315.12 198.40 Td ( September 30, 2018) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 373.06 198.40 Td ( and ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 386.66 198.40 Td (2017) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 400.66 198.40 Td (, ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 191.40 Td (respectively) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 430.00 192.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 473.90 192.80 Td (8,101) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.00 192.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.90 192.80 Td (4,062) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.00 181.40 Td (Supplemental Disclosure of Noncash Investing and Financing ) Tj ET Q q 0 0 0 rg BT 226.77 181.40 Td (Activities:) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 171.40 Td (Distributions paid to common stockholders through common stock issuances pursuant to the dividend reinvestment plan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 430.00 171.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 473.90 171.40 Td (2,126) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.00 171.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.90 171.40 Td (1,721) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 161.40 Td (Increase in redemption payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 430.00 161.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 473.90 161.40 Td (2,126) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.00 161.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 551.65 161.40 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 151.40 Td (Increase in accrued improvements to real estate) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 430.00 151.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 479.15 151.40 Td (215) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.00 151.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 548.15 151.40 Td (134) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 141.40 Td (Increase in other of) Tj ET Q q 0 0 0 rg BT 124.10 141.40 Td (fering costs due to af) Tj ET Q q 0 0 0 rg BT 182.67 141.40 Td (filiates) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 430.00 141.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 482.65 141.40 Td (—) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.00 141.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 548.15 141.40 Td (583) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 131.40 Td (Increase in acquisition fees due to af) Tj ET Q q 0 0 0 rg BT 172.11 131.40 Td (filiates) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 430.00 131.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 482.65 131.40 Td (57) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.00 131.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.90 131.40 Td (4,099) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 121.40 Td (Stock dividends issued) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 430.00 121.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 473.90 121.40 Td (3,924) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.00 121.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 542.90 121.40 Td (3,415) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 111.40 Td (Increase in distributions payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 430.00 111.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 479.15 111.40 Td (107) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.00 111.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 551.65 111.40 Td (67) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 101.40 Td (Foreign currency translation) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 149.31 101.40 Td ( \(loss\) gai) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 176.91 101.40 Td (n) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 180.41 101.40 Td ( on investment in unconsolidated entity) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 430.00 101.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 480.30 101.45 Td (\(84) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.65 101.40 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.00 101.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 548.15 101.40 Td (273) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 91.40 Td (Increase in construction in progress payable) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 430.00 91.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 479.15 91.40 Td (261) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.00 91.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 548.15 91.40 Td (403) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 70.00 81.40 Td (Increase in construction in progress for amortization of deferred financing costs) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 430.00 81.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 479.15 81.40 Td (460) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.00 81.40 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 548.15 81.40 Td (459) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.90 67.25 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 265.85 676.60 Td (September 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 has invested in and manages a diverse portfolio of opportunistic real estate, real estate-related loans, real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (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 include the origination and acquisition of mortgage, mezzanine, bridge and other real estate-related loans and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.10 Td (investment in opportunistic real estate. ) Tj ET Q q 0 0 0 rg BT 206.13 335.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.57 335.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.84 335.10 Td (, the Company had invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.98 335.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.98 335.10 Td ( hotel properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.96 335.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.62 335.10 Td ( of) Tj ET Q q 0 0 0 rg BT 547.27 335.10 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.49 323.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.92 323.10 Td ( apartment building, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.24 323.10 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.68 323.10 Td ( investment in an unconsolidated entity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.03 323.10 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.47 323.10 Td ( investment in real estate equity securities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (Additionally as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.21 311.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.48 311.10 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 437.19 311.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.63 311.10 Td ( retail property) Tj ET Q q 0 0 0 rg BT 510.40 311.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 293.10 Td (From July 3, 2013 to ) Tj ET Q q 0 0 0 rg BT 157.57 293.10 Td (August 1) Tj ET Q q 0 0 0 rg BT 193.59 293.10 Td (1, 2014, the Company conducted a private placement of) Tj ET Q q 0 0 0 rg BT 417.22 293.10 Td (fering \(the “Private Of) Tj ET Q q 0 0 0 rg BT 507.28 293.10 Td (fering”\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (exempt from registration under Regulation D of the Securities ) Tj ET Q q 0 0 0 rg BT 299.71 281.10 Td (Act of 1933, as amended \(the “Act”\). ) Tj ET Q q 0 0 0 rg BT 453.92 281.10 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.67 269.10 Td (3,619,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.67 269.10 Td ( shares of common stock for gross of) Tj ET Q q 0 0 0 rg BT 256.52 269.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.76 269.10 Td ($32.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 269.10 Td ( in the Private Of) Tj ET Q q 0 0 0 rg BT 454.34 269.10 Td (fering. ) 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 265.85 676.60 Td (September 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 November 14, 2013, the Company filed a registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 394.35 632.10 Td (1 with the Securities and Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (Commission \(the “SEC”\) to of) Tj ET Q q 0 0 0 rg BT 172.09 620.10 Td (fer a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.51 620.10 Td (180,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.51 620.10 Td ( shares of common stock for sale to the public \(the “Public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 608.10 Td (fering”\), of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.29 608.10 Td (100,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.29 608.10 Td ( shares were registered in a primary of) Tj ET Q q 0 0 0 rg BT 337.65 608.10 Td (fering and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.96 608.10 Td (80,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.96 608.10 Td ( shares were registered to be sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (under the Company’) Tj ET Q q 0 0 0 rg BT 131.15 596.10 Td (s dividend reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 253.72 596.10 Td (The SEC declared the Company’) Tj ET Q q 0 0 0 rg BT 385.35 596.10 Td (s registration statement ef) Tj ET Q q 0 0 0 rg BT 488.20 596.10 Td (fective on ) Tj ET Q q 0 0 0 rg BT 529.85 596.10 Td (August ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (12, 2014. On February 1) Tj ET Q q 0 0 0 rg BT 147.45 584.10 Td (1, 2016, the Company filed an amended registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 448.96 584.10 Td (1 with the SEC to of) Tj ET Q q 0 0 0 rg BT 530.73 584.10 Td (fer a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (second class of common stock designated as Class ) Tj ET Q q 0 0 0 rg BT 253.72 572.10 Td (T) Tj ET Q q 0 0 0 rg BT 259.65 572.10 Td ( shares and to designate its initially of) Tj ET Q q 0 0 0 rg BT 410.83 572.10 Td (fered and outstanding common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (as Class ) Tj ET Q q 0 0 0 rg BT 83.95 560.10 Td (A) Tj ET Q q 0 0 0 rg BT 90.62 560.10 Td ( shares. Pursuant to the amended registration statement, the Company is of) Tj ET Q q 0 0 0 rg BT 388.98 560.10 Td (fering to sell any combination of Class ) Tj ET Q q 0 0 0 rg BT 545.90 560.10 Td (A) Tj ET Q q 0 0 0 rg BT 552.57 560.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (and Class ) Tj ET Q q 0 0 0 rg BT 90.43 548.10 Td (T) Tj ET Q q 0 0 0 rg BT 96.36 548.10 Td ( shares in the Public Of) Tj ET Q q 0 0 0 rg BT 189.77 548.10 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 413.33 548.10 Td (180,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.33 548.10 Td ( of shares of its common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (stock pursuant to the Public Of) Tj ET Q q 0 0 0 rg BT 173.47 536.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 204.67 536.10 Td (The Company commenced of) Tj ET Q q 0 0 0 rg BT 323.06 536.10 Td (fering Class ) Tj ET Q q 0 0 0 rg BT 373.43 536.10 Td (T) Tj ET Q q 0 0 0 rg BT 379.35 536.10 Td ( shares of common stock for sale to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 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 425.60 524.10 Td (filiate of the ) Tj ET Q q 0 0 0 rg BT 476.41 524.10 Td (Advisor) Tj ET Q q 0 0 0 rg BT 508.24 524.10 Td (, serves as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (the dealer manager of the Public Of) Tj ET Q q 0 0 0 rg BT 192.04 512.10 Td (fering pursuant to a dealer manager agreement originally dated ) Tj ET Q q 0 0 0 rg BT 445.54 512.10 Td (August 12, 2014 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (amended and restated February 17, 2016 \(the “Dealer Manager ) Tj ET Q q 0 0 0 rg BT 303.84 500.10 Td (Agreement”\). Previously the Dealer Manager served as dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (manager for the Private Of) Tj ET Q q 0 0 0 rg BT 156.50 488.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 185.19 488.10 Td (The Dealer Manager is responsible for marketing the Company’) Tj ET Q q 0 0 0 rg BT 441.22 488.10 Td (s shares. ) Tj ET Q q 0 0 0 rg BT 477.42 488.10 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (ceased of) Tj ET Q q 0 0 0 rg BT 86.79 476.10 Td (fering shares of common stock in the Public Of) Tj ET Q q 0 0 0 rg BT 276.02 476.10 Td (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.90 476.10 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.07 476.10 Td ( and terminated the primary Of) Tj ET Q q 0 0 0 rg BT 493.01 476.10 Td (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (September 28, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 464.10 Td (. ) Tj ET Q q 0 0 0 rg BT 134.58 464.10 Td (The Company continues to of) Tj ET Q q 0 0 0 rg BT 253.27 464.10 Td (fer shares of common stock under its dividend reinvestment plan. In some ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (states, the Company will need to renew the registration statement annually or file a new registration statement to continue its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (dividend reinvestment plan of) Tj ET Q q 0 0 0 rg BT 169.01 440.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 197.71 440.10 Td (The Company may terminate its dividend reinvestment plan of) Tj ET Q q 0 0 0 rg BT 448.58 440.10 Td (fering at any time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 422.10 Td (The Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.60 422.10 Td (1) Tj ET Q q 0 0 0 rg BT 155.23 422.10 Td (1,977,758) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.23 422.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.67 422.10 Td (1) Tj ET Q q 0 0 0 rg BT 219.30 422.10 Td (1,537,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.30 422.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 323.74 422.10 Td (A) Tj ET Q q 0 0 0 rg BT 330.41 422.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 373.84 422.10 Td (T) Tj ET Q q 0 0 0 rg BT 379.76 422.10 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 493.53 422.10 Td (, in the Public ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 410.10 Td (fering for aggregate gross of) Tj ET Q q 0 0 0 rg BT 173.53 410.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.78 410.10 Td ($228.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.67 410.10 Td (. ) Tj ET Q q 0 0 0 rg BT 312.12 410.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.56 410.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.82 410.10 Td (, the Company had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.04 410.10 Td (549,572) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.54 410.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 398.10 Td (178,325) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.94 398.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 163.38 398.10 Td (A) Tj ET Q q 0 0 0 rg BT 170.05 398.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 213.47 398.10 Td (T) Tj ET Q q 0 0 0 rg BT 219.40 398.10 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 333.17 398.10 Td (, under its dividend reinvestment plan for aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (gross of) Tj ET Q q 0 0 0 rg BT 81.26 386.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.51 386.10 Td ($6.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.40 386.10 Td (. ) Tj ET Q q 0 0 0 rg BT 209.85 386.10 Td (Also as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.90 386.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.16 386.10 Td (, the Company had redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.57 386.10 Td (440,842) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.07 386.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 386.10 Td (63,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.00 386.10 Td ( shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (of Class ) Tj ET Q q 0 0 0 rg BT 83.95 374.10 Td (A) Tj ET Q q 0 0 0 rg BT 90.62 374.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 134.05 374.10 Td (T) Tj ET Q q 0 0 0 rg BT 139.97 374.10 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 253.74 374.10 Td (, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.90 374.10 Td ($4.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.79 374.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 356.10 Td (On each of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.82 356.10 Td (April 2, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.42 356.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.86 356.10 Td (July 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.03 356.10 Td (, the Company issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.64 356.10 Td (120,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.14 356.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 430.57 356.10 Td (A) Tj ET Q q 0 0 0 rg BT 437.24 356.10 Td ( common stock to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.54 344.10 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 470.40 344.10 Td (s directors and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 332.10 Td (s Chief Executive Of) Tj ET Q q 0 0 0 rg BT 175.13 332.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 193.04 332.10 Td (, and Peter McMillan III, also one of the Company’) Tj ET Q q 0 0 0 rg BT 398.27 332.10 Td (s directors and the Company’) Tj ET Q q 0 0 0 rg BT 515.47 332.10 Td (s President, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.66 320.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.55 320.10 Td (. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.27 320.10 Td (July 14, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.44 320.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.88 320.10 Td (February 13, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.48 320.10 Td (, the Company issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.08 320.10 Td (214,175) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.58 320.10 Td ( shares and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.51 320.10 Td (10,935) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.01 320.10 Td ( shares, respectively) Tj ET Q q 0 0 0 rg BT 555.16 320.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (of Class ) Tj ET Q q 0 0 0 rg BT 83.95 308.10 Td (A) Tj ET Q q 0 0 0 rg BT 90.62 308.10 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 483.30 308.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.19 308.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 296.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 151.05 296.10 Td (. ) Tj ET Q q 0 0 0 rg BT 155.87 296.10 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 49.50 284.10 Td (registration requirements of the ) Tj ET Q q 0 0 0 rg BT 177.24 284.10 Td (Act pursuant to Section 4\(2\) of the ) Tj ET Q q 0 0 0 rg BT 318.04 284.10 Td (Act. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (2. ) Tj ET Q q 0 0 0 rg BT 72.00 260.10 Td (SUMMAR) Tj ET Q q 0 0 0 rg BT 117.75 260.10 Td (Y) Tj ET Q q 0 0 0 rg BT 124.60 260.10 Td ( OF) Tj ET Q q 0 0 0 rg BT 140.62 260.10 Td ( SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 209.62 260.10 Td ( ) Tj ET Q q 0 0 0 rg BT 211.57 260.10 Td (ACCOUNTING POLICIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 242.10 Td (There have been no significant changes to the Company’) Tj ET Q q 0 0 0 rg BT 299.15 242.10 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 49.50 230.10 Td (in its ) Tj ET Q q 0 0 0 rg BT 71.17 230.10 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 267.51 230.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.10 230.10 Td (, except for the Company’) Tj ET Q q 0 0 0 rg BT 450.23 230.10 Td (s adoption of the revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (recognition and financial instruments standards issued by the Financial ) Tj ET Q q 0 0 0 rg BT 335.27 218.10 Td (Accounting Standards Board \(“F) Tj ET Q q 0 0 0 rg BT 465.89 218.10 Td (ASB”\) ef) Tj ET Q q 0 0 0 rg BT 503.20 218.10 Td (fective on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 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 49.50 194.10 Td (about the Company’) Tj ET Q q 0 0 0 rg BT 130.60 194.10 Td (s accounting policies, refer to the Company’) Tj ET Q q 0 0 0 rg BT 307.49 194.10 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 49.50 182.10 Td (year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.58 182.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.17 182.10 Td ( included in the Company’) Tj ET Q q 0 0 0 rg BT 280.26 182.10 Td (s ) Tj ET Q q 0 0 0 rg BT 286.10 182.10 Td (Annual Report on Form 10-K filed with the SEC.) 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 265.85 676.60 Td (September 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 (Principles of Consolidation and Basis of Pr) Tj ET Q q 0 0 0 rg BT 232.12 632.25 Td (esentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 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 49.50 602.25 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 49.50 590.25 Td (the F) Tj ET Q q 0 0 0 rg BT 69.04 590.25 Td (ASB ) Tj ET Q q 0 0 0 rg BT 90.44 590.25 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 49.50 578.25 Td (Form 10-Q and ) Tj ET Q q 0 0 0 rg BT 113.11 578.25 Td (Article 10 of Regulation S-X. ) Tj ET Q q 0 0 0 rg BT 236.15 578.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 285.48 578.25 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 49.50 566.25 Td (of the information and footnotes required by GAAP) Tj ET Q q 0 0 0 rg BT 256.58 566.25 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 49.50 554.25 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 49.50 542.25 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 495.19 542.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.17 542.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.61 542.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.83 542.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 530.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 530.25 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 49.50 518.25 Td (December 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 518.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 500.25 Td (The consolidated financial statements include the accounts of the Company) Tj ET Q q 0 0 0 rg BT 373.20 500.25 Td (, REIT) Tj ET Q q 0 0 0 rg BT 400.24 500.25 Td ( Holdings, the Operating Partnership ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 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 544.67 488.25 Td (All ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.25 Td (significant intercompany balances and transactions are eliminated in consolidation. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (Use of Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 440.25 Td (The preparation of the consolidated financial statements in conformity with GAAP) Tj ET Q q 0 0 0 rg BT 403.21 440.25 Td ( requires management to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 183.18 428.25 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 49.50 416.25 Td (Actual results could materially dif) Tj ET Q q 0 0 0 rg BT 185.95 416.25 Td (fer from those estimates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 380.25 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.26 380.25 Td (fective January 1, 2018, the Company adopted ) Tj ET Q q 0 0 0 rg BT 269.27 380.25 Td (ASU No. 2014-09, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 347.32 380.25 Td (Revenue fr) Tj ET Q q 0 0 0 rg BT 389.98 380.25 Td (om Contracts with Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.16 380.25 Td ( \(T) Tj ET Q q 0 0 0 rg BT 520.40 380.25 Td (opic 606\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (\(“ASU No. 2014-09”\), using the modified retrospective approach, which requires a cumulative ef) Tj ET Q q 0 0 0 rg BT 439.47 368.25 Td (fect adjustment as of the date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (of the Company’) Tj ET Q q 0 0 0 rg BT 116.71 356.25 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 49.50 344.25 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 486.04 344.25 Td (A) Tj ET Q q 0 0 0 rg BT 492.71 344.25 Td ( completed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 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 476.47 332.25 Td ( that was in ef) Tj ET Q q 0 0 0 rg BT 532.38 332.25 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (before the date of initial application. ) Tj ET Q q 0 0 0 rg BT 197.32 320.25 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 49.50 308.25 Td (of January 1, 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 290.25 Td (Based on the Company’) Tj ET Q q 0 0 0 rg BT 167.82 290.25 Td (s evaluation of contracts within the scope of ) Tj ET Q q 0 0 0 rg BT 346.11 290.25 Td (ASU No. 2014-09, revenue that is impacted by ) Tj ET Q q 0 0 0 rg BT 536.07 290.25 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.25 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 49.50 266.25 Td (the Company’) Tj ET Q q 0 0 0 rg BT 105.88 266.25 Td (s of) Tj ET Q q 0 0 0 rg BT 120.42 266.25 Td (fice properties and hotel revenues. ) Tj ET Q q 0 0 0 rg BT 260.18 266.25 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 49.50 254.25 Td (and the performance obligations are satisfied.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 236.25 Td (Hotel Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 221.25 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 49.50 209.25 Td (occupancy tax collected from the Company’) Tj ET Q q 0 0 0 rg BT 226.38 209.25 Td (s guests. ) Tj ET Q q 0 0 0 rg BT 262.22 209.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 312.12 209.25 Td (, some of the Company’) Tj ET Q q 0 0 0 rg BT 407.94 209.25 Td (s hotel rooms are booked through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.25 Td (independent internet travel intermediaries. If the guest pays the independent internet travel intermediary directly) Tj ET Q q 0 0 0 rg BT 497.57 197.25 Td (, revenue for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.25 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 543.17 185.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.25 Td (less any discount or commission paid. If the guest pays the Company directly) Tj ET Q q 0 0 0 rg BT 358.52 173.25 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 49.50 161.25 Td (on a gross basis. ) Tj ET Q q 0 0 0 rg BT 117.37 161.25 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 529.50 161.25 Td (s hotels ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.25 Td (and the Company expenses the char) Tj ET Q q 0 0 0 rg BT 192.88 149.25 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 49.50 137.25 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 49.50 125.25 Td (revenue and other revenue to demonstrate how economic factors af) Tj ET Q q 0 0 0 rg BT 317.82 125.25 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 49.50 113.25 Td (and cash flows.) 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 265.85 676.60 Td (September 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 (Room revenue is generated through contracts with customers whereby the customer agrees to pay a daily rate for the right ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (to use a hotel room. ) Tj ET Q q 0 0 0 rg BT 130.97 620.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 190.68 620.10 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 49.50 608.10 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 49.50 596.10 Td (contract upon check-out by the customer from the Company’) Tj ET Q q 0 0 0 rg BT 293.32 596.10 Td (s hotel. ) Tj ET Q q 0 0 0 rg BT 324.52 596.10 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 49.50 584.10 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 493.27 584.10 Td (s hotels. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 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 521.28 572.10 Td (Advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (deposits are recognized as revenue at the time of the guest’) Tj ET Q q 0 0 0 rg BT 284.96 560.10 Td (s stay) Tj ET Q q 0 0 0 rg BT 306.81 560.10 Td (. ) Tj ET Q q 0 0 0 rg BT 311.63 560.10 Td (The Company notes no significant judgments regarding the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (recognition of rooms revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 530.10 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 49.50 518.10 Td (pay a contract rate for restaurant dining services or convention services. ) Tj ET Q q 0 0 0 rg BT 339.20 518.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 398.91 518.10 Td (s contract performance obligations are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 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 49.50 494.10 Td (provided to the customer) Tj ET Q q 0 0 0 rg BT 148.65 494.10 Td (. ) Tj ET Q q 0 0 0 rg BT 153.46 494.10 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 49.50 482.10 Td (customer) Tj ET Q q 0 0 0 rg BT 85.60 482.10 Td (. ) Tj ET Q q 0 0 0 rg BT 90.42 482.10 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 49.50 470.10 Td (provides a deposit for a future banquet event at the Company’) Tj ET Q q 0 0 0 rg BT 296.65 470.10 Td (s hotels. ) Tj ET Q q 0 0 0 rg BT 331.38 470.10 Td (Advanced deposits for food and beverage revenue are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (included in the balance of other liabilities on the consolidated balance sheet. ) Tj ET Q q 0 0 0 rg BT 356.34 458.10 Td (Advanced deposits for banquet services are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (recognized as revenue following the completion of the banquet services. ) Tj ET Q q 0 0 0 rg BT 341.16 446.10 Td (The Company notes no significant judgements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (regarding the recognition of food and beverage revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 416.10 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 49.50 404.10 Td (assured.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (Real Estate Equity Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 368.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 131.71 368.10 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 49.50 356.10 Td (security) Tj ET Q q 0 0 0 rg BT 80.51 356.10 Td (. ) Tj ET Q q 0 0 0 rg BT 85.33 356.10 Td (T) Tj ET Q q 0 0 0 rg BT 91.08 356.10 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 49.50 344.10 Td (basis. Upon adoption of ) Tj ET Q q 0 0 0 rg BT 147.00 344.10 Td (ASU No. 2016-01, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 225.05 344.10 Td (Financial Instruments - Overall \(Subtopic 825-10\): Recognition and Measur) Tj ET Q q 0 0 0 rg BT 531.85 344.10 Td (ement ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (of Financial ) Tj ET Q q 0 0 0 rg BT 100.98 332.10 Td (Assets and Financial Liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.42 332.10 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 49.50 320.10 Td (estate equity securities are recognized in earnings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 302.10 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 49.50 290.10 Td (dividend date.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (Segments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 254.10 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 49.50 242.10 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 313.29 242.10 Td (January 12, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.89 242.10 Td (. In general, the Company intends to hold its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 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 49.50 218.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 218.10 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 49.50 206.10 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 516.94 206.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (investments exhibit similar long-term financial performance and have similar economic characteristics. ) Tj ET Q q 0 0 0 rg BT 464.72 194.10 Td (These investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 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 454.68 182.10 Td (As a result, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 170.10 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 49.50 158.10 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 49.50 146.10 Td (Company currently aggregates its operating segments into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.72 146.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.16 146.10 Td ( reportable business segment. In addition, the Company has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 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 522.29 134.10 Td (, based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (on the Company’) Tj ET Q q 0 0 0 rg BT 118.38 122.10 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 49.50 110.10 Td (European asset is a reportable segment.) 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 265.85 676.60 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 33.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 33.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Per) Tj ET Q q 0 0 0 rg BT 64.30 632.25 Td ( Shar) Tj ET Q q 0 0 0 rg BT 87.19 632.25 Td (e Data) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (Basic net income \(loss\) per share of common stock is calculated by dividing net income \(loss\) attributable to common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 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 49.50 590.25 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 49.50 578.25 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 400.25 578.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.24 578.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.68 578.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.89 578.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 566.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.20 566.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.20 566.25 Td (. For the purpose of determining the weighted-average number of shares outstanding, stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (dividends issued are adjusted retroactively and treated as if they were issued and outstanding for all periods presented. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 536.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 131.71 536.25 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 480.52 536.25 Td (s common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 524.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.81 524.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.25 524.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.47 524.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.29 524.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.55 524.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.99 524.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.99 524.25 Td ( as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 499.75 171.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 221.00 499.75 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.00 499.75 193.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 499.75 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 499.75 141.00 -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 50 499.75 m 221 499.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225 499.75 m 418 499.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 499.75 m 563 499.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 499.75 m 221 499.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225 499.75 m 418 499.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 499.75 m 563 499.75 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 65.50 504.20 Td (Thr) Tj ET Q q 0 0 0 rg BT 80.34 504.20 Td (ee Months Ended September) Tj ET Q q 0 0 0 rg BT 190.92 504.20 Td ( 30,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 237.45 504.20 Td (Amount Declar) Tj ET Q q 0 0 0 rg BT 296.53 504.20 Td (ed per) Tj ET Q q 0 0 0 rg BT 320.61 504.20 Td ( Shar) Tj ET Q q 0 0 0 rg BT 341.20 504.20 Td (e Outstanding ) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 397.71 508.28 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 454.70 504.20 Td (T) Tj ET Q q 0 0 0 rg BT 459.88 504.20 Td (otal Shar) Tj ET Q q 0 0 0 rg BT 494.97 504.20 Td (es Issued) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 126.00 488.21 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.75 488.21 Td (0.005001 shares) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.35 488.21 Td (131,477) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 126.00 472.21 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.75 472.21 Td (0.005001 shares) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.35 472.21 Td (148,412) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 49.50 461.05 Td (__________________________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 452.07 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 448.45 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 49.50 438.85 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 50.00 402.35 171.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 221.00 402.35 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.00 402.35 193.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 402.35 4.00 -16.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 402.35 141.00 -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 50 402.35 m 221 402.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225 402.35 m 418 402.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 402.35 m 563 402.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 402.35 m 221 402.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225 402.35 m 418 402.35 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 402.35 m 563 402.35 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 67.95 406.80 Td (Nine Months Ended September) Tj ET Q q 0 0 0 rg BT 188.54 406.80 Td ( 30,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 237.45 406.80 Td (Amount Declar) Tj ET Q q 0 0 0 rg BT 296.53 406.80 Td (ed per) Tj ET Q q 0 0 0 rg BT 320.61 406.80 Td ( Shar) Tj ET Q q 0 0 0 rg BT 341.20 406.80 Td (e Outstanding ) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 397.71 410.88 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 454.70 406.80 Td (T) Tj ET Q q 0 0 0 rg BT 459.88 406.80 Td (otal Shar) Tj ET Q q 0 0 0 rg BT 494.97 406.80 Td (es Issued) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 126.00 390.81 Td (2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.75 390.81 Td (0.015003 shares) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.35 390.81 Td (357,215) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 126.00 374.81 Td (2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.75 374.81 Td (0.015003 shares) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 477.35 374.81 Td (433,633) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.00 Tf ET q 0 0 0 rg BT 49.50 363.65 Td (__________________________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 354.68 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 351.05 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 49.50 341.45 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 70.50 317.45 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 49.50 305.45 Td (calculating the dollar amount of the Class ) Tj ET Q q 0 0 0 rg BT 218.07 305.45 Td (A) Tj ET Q q 0 0 0 rg BT 224.74 305.45 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 268.17 305.45 Td (T) Tj ET Q q 0 0 0 rg BT 274.09 305.45 Td ( stock dividends issued, the Company used the Class ) Tj ET Q q 0 0 0 rg BT 486.86 305.45 Td (A) Tj ET Q q 0 0 0 rg BT 493.53 305.45 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 536.96 305.45 Td (T) Tj ET Q q 0 0 0 rg BT 542.88 305.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.45 Td (primary of) Tj ET Q q 0 0 0 rg BT 91.80 293.45 Td (fering price at the time of issuance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 275.45 Td (Cash distributions declared per share of Class ) Tj ET Q q 0 0 0 rg BT 256.18 275.45 Td (A) Tj ET Q q 0 0 0 rg BT 262.85 275.45 Td ( common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.38 275.45 Td ($0.048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.88 275.45 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.32 275.45 Td ($0.143) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.82 275.45 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.20 275.45 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.19 275.45 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.62 275.45 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.84 275.45 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.45 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 263.45 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.14 263.45 Td (, respectively) Tj ET Q q 0 0 0 rg BT 208.80 263.45 Td (. Cash distributions declared per share of Class ) Tj ET Q q 0 0 0 rg BT 398.86 263.45 Td (T) Tj ET Q q 0 0 0 rg BT 404.78 263.45 Td ( common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.32 263.45 Td ($0.041) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.82 263.45 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.45 Td ($0.090) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 251.45 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.38 251.45 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.36 251.45 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.80 251.45 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.02 251.45 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.84 251.45 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.11 251.45 Td (, respectively) Tj ET Q q 0 0 0 rg BT 358.77 251.45 Td (. Until the Company ceased of) Tj ET Q q 0 0 0 rg BT 480.22 251.45 Td (fering shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.45 Td (common stock in the Public Of) Tj ET Q q 0 0 0 rg BT 174.03 239.45 Td (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.90 239.45 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.07 239.45 Td (, the declared rate of cash distributions for Class ) Tj ET Q q 0 0 0 rg BT 462.39 239.45 Td (T) Tj ET Q q 0 0 0 rg BT 468.32 239.45 Td ( Shares was dif) Tj ET Q q 0 0 0 rg BT 528.96 239.45 Td (ferent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.45 Td (than the rate declared for the Class ) Tj ET Q q 0 0 0 rg BT 190.28 227.45 Td (A) Tj ET Q q 0 0 0 rg BT 196.95 227.45 Td ( Shares by an amount equivalent to any applicable daily stockholder servicing fees. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.45 Td (Distributions declared per share of common stock assumes each share was issued and outstanding each day that was a record ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.45 Td (date during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.98 203.45 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.97 203.45 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.40 203.45 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.62 203.45 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.45 203.45 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.71 203.45 Td (. Each day during the period from January 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.04 203.45 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.04 203.45 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.45 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 191.45 Td ( was a record date for distributions. Distributions for this period were calculated based on stockholders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.45 Td (record 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 245.80 179.45 Td ($0.00052548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.30 179.45 Td ( per share per day less \(ii\) the applicable daily stockholder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.45 Td (servicing fees accrued for and allocable to any class of common stock, divided by the number of shares of common stock of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.45 Td (such class 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 265.85 676.60 Td (September 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 (Cash distributions declared per share of Class ) Tj ET Q q 0 0 0 rg BT 256.18 632.10 Td (A) Tj ET Q q 0 0 0 rg BT 262.85 632.10 Td ( common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.38 632.10 Td ($0.048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.88 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.32 632.10 Td ($0.143) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.82 632.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.20 632.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.19 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.62 632.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.84 632.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 620.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.14 620.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 208.80 620.10 Td (. Cash distributions declared per share of Class ) Tj ET Q q 0 0 0 rg BT 398.86 620.10 Td (T) Tj ET Q q 0 0 0 rg BT 404.78 620.10 Td ( common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.32 620.10 Td ($0.025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.82 620.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td ($0.073) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 608.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.38 608.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.36 608.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.80 608.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.02 608.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.84 608.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.11 608.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 358.77 608.10 Td (. ) Tj ET Q q 0 0 0 rg BT 363.59 608.10 Td (The declared rate of cash distributions for Class ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.43 596.10 Td ( Shares was dif) Tj ET Q q 0 0 0 rg BT 116.07 596.10 Td (ferent than the rate declared for the Class ) Tj ET Q q 0 0 0 rg BT 282.66 596.10 Td (A) Tj ET Q q 0 0 0 rg BT 289.33 596.10 Td ( Shares by an amount equivalent to any applicable daily stockholder ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (servicing fees. Distributions declared per share of common stock assumes each share was issued and outstanding each day that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (was a record date during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.01 572.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.99 572.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.43 572.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.65 572.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.47 572.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.74 572.10 Td (. Each day during the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.47 572.10 Td (January 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 560.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.61 560.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.87 560.10 Td ( was a record date for distributions. Distributions for this period were calculated based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (stockholders of record 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 309.68 548.10 Td ($0.00052548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.18 548.10 Td ( per share per day less \(ii\) the applicable daily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (stockholder servicing fees accrued for and allocable to any class of common stock, divided by the number of shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (common stock of such class 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 71.50 506.10 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 49.50 494.10 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 49.50 482.10 Td (earnings, which represents net income remaining after deduction of dividends declared during the period. ) Tj ET Q q 0 0 0 rg BT 473.06 482.10 Td (The undistributed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 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 49.50 458.10 Td (number of outstanding shares. ) Tj ET Q q 0 0 0 rg BT 172.35 458.10 Td (The Company does not have any participating securities outstanding other than Class ) Tj ET Q q 0 0 0 rg BT 515.06 458.10 Td (A) Tj ET Q q 0 0 0 rg BT 521.73 458.10 Td ( Common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (Stock and Class ) Tj ET Q q 0 0 0 rg BT 115.71 446.10 Td (T) Tj ET Q q 0 0 0 rg BT 121.63 446.10 Td ( Common stock during the periods presented.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 428.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 131.21 428.10 Td (s calculated earnings per share for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.75 428.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.74 428.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.18 428.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.39 428.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.22 428.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.48 428.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.92 428.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.92 428.10 Td ( were as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (follows \(in thousands, except share and per share amounts\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 377.60 233.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 377.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 377.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 377.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 377.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 377.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 377.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 377.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 377.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 353.60 233.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 353.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 353.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 353.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 353.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 353.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 353.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 353.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 353.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 329.60 233.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 329.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 329.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 329.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 329.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 329.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 329.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 329.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 329.60 66.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 304.60 233.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 304.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 304.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 304.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 304.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 304.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 304.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 304.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 304.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 280.60 233.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 280.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 280.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 280.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 280.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 280.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 280.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 280.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 280.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 248.60 233.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 248.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 248.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 248.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 248.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 248.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 248.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 248.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 248.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 224.60 233.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 224.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 224.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 224.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 224.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 224.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 224.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 224.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 224.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 200.60 233.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 200.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 200.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 200.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 200.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 200.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 200.60 66.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 200.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 200.60 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 287 393.6 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 353 393.6 m 357 393.6 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 427 393.6 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 493 393.6 m 497 393.6 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 287 381.6 m 353 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 393.6 m 357 393.6 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 357 381.6 m 423 381.6 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 427 381.6 m 493 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 393.6 m 497 393.6 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 497 381.6 m 563 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 341.6 m 423 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 341.6 m 563 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 341.6 m 353 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 330.6 m 353 330.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 328.6 m 353 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 341.6 m 423 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 330.6 m 423 330.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 328.6 m 423 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 341.6 m 493 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 330.6 m 493 330.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 328.6 m 493 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 341.6 m 563 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 330.6 m 563 330.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 328.6 m 563 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 292.6 m 353 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 292.6 m 423 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 292.6 m 493 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 292.6 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 287 292.6 m 353 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 281.6 m 353 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 279.6 m 353 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 292.6 m 423 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 281.6 m 423 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 279.6 m 423 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 292.6 m 493 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 281.6 m 493 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 279.6 m 493 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 292.6 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 497 281.6 m 563 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 279.6 m 563 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 279.6 m 353 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 281.6 m 353 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 269.6 m 353 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 267.6 m 353 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 279.6 m 423 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 281.6 m 423 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 269.6 m 423 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 267.6 m 423 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 279.6 m 493 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 281.6 m 493 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 269.6 m 493 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 267.6 m 493 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 279.6 m 563 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 281.6 m 563 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 269.6 m 563 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 267.6 m 563 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 267.6 m 353 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 269.6 m 353 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 249.60000000000002 m 353 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 247.60000000000002 m 353 247.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 267.6 m 423 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 269.6 m 423 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 249.60000000000002 m 423 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 247.60000000000002 m 423 247.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 267.6 m 493 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 269.6 m 493 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 249.60000000000002 m 493 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 247.60000000000002 m 493 247.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 267.6 m 563 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 269.6 m 563 269.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 249.60000000000002 m 563 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 247.60000000000002 m 563 247.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 212.60000000000002 m 353 212.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 212.60000000000002 m 423 212.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 212.60000000000002 m 493 212.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 212.60000000000002 m 563 212.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 212.60000000000002 m 353 212.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 201.60000000000002 m 353 201.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 199.60000000000002 m 353 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 212.60000000000002 m 423 212.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 201.60000000000002 m 423 201.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 199.60000000000002 m 423 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 212.60000000000002 m 493 212.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 201.60000000000002 m 493 201.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 199.60000000000002 m 493 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 212.60000000000002 m 563 212.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 201.60000000000002 m 563 201.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 199.60000000000002 m 563 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 199.60000000000002 m 353 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 201.60000000000002 m 353 201.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 189.60000000000002 m 353 189.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 187.60000000000002 m 353 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 199.60000000000002 m 423 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 201.60000000000002 m 423 201.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 189.60000000000002 m 423 189.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 187.60000000000002 m 423 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 199.60000000000002 m 493 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 201.60000000000002 m 493 201.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 189.60000000000002 m 493 189.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 187.60000000000002 m 493 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 199.60000000000002 m 563 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 201.60000000000002 m 563 201.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 189.60000000000002 m 563 189.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 187.60000000000002 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 287 187.60000000000002 m 353 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 189.60000000000002 m 353 189.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 169.60000000000002 m 353 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 167.60000000000002 m 353 167.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 187.60000000000002 m 423 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 189.60000000000002 m 423 189.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 169.60000000000002 m 423 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 167.60000000000002 m 423 167.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 187.60000000000002 m 493 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 189.60000000000002 m 493 189.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 169.60000000000002 m 493 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 167.60000000000002 m 493 167.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 187.60000000000002 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 497 189.60000000000002 m 563 189.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 169.60000000000002 m 563 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 167.60000000000002 m 563 167.60000000000002 l s BT /F2 7.50 Tf ET q 0 0 0 rg BT 296.60 397.72 Td (Thr) Tj ET Q q 0 0 0 rg BT 308.97 397.72 Td (ee Months Ended September) Tj ET Q q 0 0 0 rg BT 401.12 397.72 Td ( 30,) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 438.60 397.72 Td (Nine Months Ended September) Tj ET Q q 0 0 0 rg BT 539.10 397.72 Td ( 30,) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 312.00 385.72 Td (2018) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 382.00 385.72 Td (2017) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 452.00 385.72 Td (2018) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 522.00 385.72 Td (2017) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 369.75 Td (Net ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 65.20 369.75 Td (\(loss\) income) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 105.82 369.75 Td ( attributable to common stockholders) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 369.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 330.60 369.75 Td (\(4,963) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 350.00 369.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 369.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 403.10 369.75 Td (2,893) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 369.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 369.75 Td (\(8,133) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 369.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 369.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 546.25 369.75 Td (\(834) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 369.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 357.75 Td (Less: Class ) Tj ET Q q 0 0 0 rg BT 87.92 357.75 Td (A) Tj ET Q q 0 0 0 rg BT 92.92 357.75 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 338.75 357.75 Td (862) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 408.75 357.75 Td (777) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 473.10 357.75 Td (2,505) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 543.10 357.75 Td (2,187) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 345.75 Td (Less: Class ) Tj ET Q q 0 0 0 rg BT 88.20 345.75 Td (T) Tj ET Q q 0 0 0 rg BT 92.65 345.75 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 338.75 345.75 Td (487) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 408.75 345.75 Td (258) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 473.10 345.75 Td (1,050) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 548.75 345.75 Td (660) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 333.75 Td (Undistributed net) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 104.79 333.75 Td ( \(loss\) income) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 147.28 333.75 Td ( attributable to common stockholders) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 333.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 330.60 333.75 Td (\(6,312) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 350.00 333.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 333.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 403.10 333.75 Td (1,858) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 333.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 466.85 333.75 Td (\(1) Tj ET Q q 0 0 0 rg BT 473.10 333.75 Td (1,688) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 333.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 333.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 333.75 Td (\(3,681) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 333.75 Td (\)) 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 52.5 319.5467041015625 m 129.80224609375 319.5467041015625 l s q 0 0 0 rg BT 52.50 320.72 Td (Class ) Tj ET Q q 0 0 0 rg BT 71.05 320.72 Td (A) Tj ET Q q 0 0 0 rg BT 76.05 320.72 Td ( Common Stock:) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 308.75 Td (Undistributed net ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 115.66 308.75 Td (\(loss\) income) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 156.28 308.75 Td ( attributable to common stockholders) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 308.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 330.60 308.75 Td (\(3,776) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 350.00 308.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 308.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 403.10 308.75 Td (1,127) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 308.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 308.75 Td (\(7,019) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 308.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 308.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 308.75 Td (\(2,31) Tj ET Q q 0 0 0 rg BT 556.22 308.75 Td (1) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 308.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 296.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 79.21 296.75 Td (A) Tj ET Q q 0 0 0 rg BT 84.22 296.75 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 338.75 296.75 Td (862) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 408.75 296.75 Td (777) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 473.10 296.75 Td (2,505) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 543.10 296.75 Td (2,187) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 284.75 Td (Net ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 74.20 284.75 Td (\(loss\) income) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 114.82 284.75 Td ( attributable to Class ) Tj ET Q q 0 0 0 rg BT 178.15 284.75 Td (A) Tj ET Q q 0 0 0 rg BT 183.15 284.75 Td ( common stockholders) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 284.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 330.60 284.75 Td (\(2,914) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 350.00 284.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 284.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 403.10 284.75 Td (1,904) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 284.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 284.75 Td (\(4,514) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 284.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 284.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 546.25 284.75 Td (\(124) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 284.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 272.75 Td (Net ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 74.20 272.75 Td (\(loss\) income) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 114.82 272.75 Td ( per common share, basic and diluted) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 272.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 334.35 272.75 Td (\(0.16) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 350.00 272.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 272.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 406.85 272.75 Td (0.12) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 272.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 474.35 272.75 Td (\(0.26) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 272.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 272.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 544.35 272.75 Td (\(0.01) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 272.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 260.25 Td (W) Tj ET Q q 0 0 0 rg BT 67.98 260.25 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 61.50 252.75 Td (diluted) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 316.25 252.75 Td (17,938,824) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 386.25 252.75 Td (16,514,730) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 456.25 252.75 Td (17,640,671) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 526.25 252.75 Td (15,759,082) 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 52.5 239.54670410156245 m 129.9453125 239.54670410156245 l s q 0 0 0 rg BT 52.50 240.72 Td (Class ) Tj ET Q q 0 0 0 rg BT 71.33 240.72 Td (T) Tj ET Q q 0 0 0 rg BT 76.20 240.72 Td ( Common Stock:) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 228.75 Td (Undistributed net ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 115.66 228.75 Td (\(loss\) income) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 156.28 228.75 Td ( attributable to common stockholders) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 228.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 330.60 228.75 Td (\(2,536) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 350.00 228.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 228.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 408.75 228.75 Td (731) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 228.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 228.75 Td (\(4,669) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 228.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 228.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 228.75 Td (\(1,370) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 228.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 216.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 79.49 216.75 Td (T) Tj ET Q q 0 0 0 rg BT 83.94 216.75 Td ( Common Stock cash distributions declared) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 338.75 216.75 Td (487) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 408.75 216.75 Td (258) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 473.10 216.75 Td (1,050) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 548.75 216.75 Td (660) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 204.75 Td (Net ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 74.20 204.75 Td (\(loss\) income) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 114.82 204.75 Td ( attributable to Class ) Tj ET Q q 0 0 0 rg BT 178.43 204.75 Td (T) Tj ET Q q 0 0 0 rg BT 182.88 204.75 Td ( common stockholders) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 204.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 330.60 204.75 Td (\(2,049) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 350.00 204.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 204.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 408.75 204.75 Td (989) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 204.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 470.60 204.75 Td (\(3,619) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 204.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 204.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 546.25 204.75 Td (\(710) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 204.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 192.75 Td (Net ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 74.20 192.75 Td (\(loss\) income) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 114.82 192.75 Td ( per common share, basic and diluted) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 289.50 192.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 334.35 192.75 Td (\(0.17) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 350.00 192.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 359.50 192.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 406.85 192.75 Td (0.09) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 429.50 192.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 474.35 192.75 Td (\(0.31) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 490.00 192.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 499.50 192.75 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 544.35 192.75 Td (\(0.08) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 192.75 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 61.50 180.25 Td (W) Tj ET Q q 0 0 0 rg BT 67.98 180.25 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 61.50 172.75 Td (diluted) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 316.25 172.75 Td (12,044,757) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 386.25 172.75 Td (10,714,415) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 456.25 172.75 Td (1) Tj ET Q q 0 0 0 rg BT 460.00 172.75 Td (1,733,316) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 530.00 172.75 Td (9,339,643) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 145.10 Td (Squar) Tj ET Q q 0 0 0 rg BT 75.44 145.10 Td (e Footage, Occupancy and Other) Tj ET Q q 0 0 0 rg BT 215.53 145.10 Td ( Measur) Tj ET Q q 0 0 0 rg BT 250.61 145.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 127.10 Td ( ) Tj ET Q q 0 0 0 rg BT 72.45 127.10 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 49.50 115.10 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 115.10 Td (s independent registered public accounting firm’) Tj ET Q q 0 0 0 rg BT 284.71 115.10 Td (s review of the Company’) Tj ET Q q 0 0 0 rg BT 388.03 115.10 Td (s financial statements in accordance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 103.10 Td (the standards of the United States Public Company ) Tj ET Q q 0 0 0 rg BT 255.03 103.10 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 265.85 676.60 Td (September 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. Upon adoption of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (ASU No. 2016-02, the Company expects to adopt the package of practical expedients for all leases that commenced before the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 530.25 Td (fective date of January 1, 2019. ) Tj ET Q q 0 0 0 rg BT 187.32 530.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 236.66 530.25 Td (, the Company will 1\) not reassess whether any expired or existing contracts are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (or contain leases, 2\) not reassess the lease classification for any expired or existing lease, and 3\) not reassess initial direct costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (for any existing leases. ) Tj ET Q q 0 0 0 rg BT 145.96 506.25 Td (The Company does not expect to elect the practical expedient related to using hindsight to reevaluate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (the lease term. In addition, the Company expects to adopt the practical expedient for land easements to not assess whether ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (existing or expired land easements that were not previously accounted for as leases under the current lease accounting standards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (of ) Tj ET Q q 0 0 0 rg BT 60.15 470.25 Td (T) Tj ET Q q 0 0 0 rg BT 65.56 470.25 Td (opic 840 are or contain a lease under ) Tj ET Q q 0 0 0 rg BT 214.76 470.25 Td (T) Tj ET Q q 0 0 0 rg BT 220.17 470.25 Td (opic 842.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 452.25 Td (In July 2018, the F) Tj ET Q q 0 0 0 rg BT 146.54 452.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 195.44 452.25 Td (ASU No. 2018-1) Tj ET Q q 0 0 0 rg BT 263.12 452.25 Td (1, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.12 452.25 Td (Leases \(T) Tj ET Q q 0 0 0 rg BT 310.82 452.25 Td (opic 842\), T) Tj ET Q q 0 0 0 rg BT 358.51 452.25 Td (ar) Tj ET Q q 0 0 0 rg BT 367.03 452.25 Td (geted Impr) Tj ET Q q 0 0 0 rg BT 410.26 452.25 Td (ovements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.46 452.25 Td ( \(“ASU No. 2018-1) Tj ET Q q 0 0 0 rg BT 525.42 452.25 Td (1”\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.25 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 49.50 428.25 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 49.50 416.25 Td (otherwise would be accounted for under the new revenue recognition standard \(T) Tj ET Q q 0 0 0 rg BT 373.96 416.25 Td (opic 606\) and if certain conditions are met. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (Upon adoption of the lease accounting standard under ) Tj ET Q q 0 0 0 rg BT 267.59 404.25 Td (T) Tj ET Q q 0 0 0 rg BT 273.00 404.25 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 49.50 392.25 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 49.50 380.25 Td (standard. ) Tj ET Q q 0 0 0 rg BT 88.20 380.25 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 49.50 368.25 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 49.50 356.25 Td (classified as an operating lease. In addition, ) Tj ET Q q 0 0 0 rg BT 225.83 356.25 Td (ASU No. 2018-1) Tj ET Q q 0 0 0 rg BT 293.52 356.25 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 49.50 344.25 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 456.66 344.25 Td (fect adjustment to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (opening balance of retained earnings. ) Tj ET Q q 0 0 0 rg BT 203.61 332.25 Td (An entity’) Tj ET Q q 0 0 0 rg BT 243.88 332.25 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 49.50 320.25 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 49.50 308.25 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 308.25 Td (opic 840. ) Tj ET Q q 0 0 0 rg BT 96.95 308.25 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 515.00 308.25 Td (T) Tj ET Q q 0 0 0 rg BT 520.41 308.25 Td (opic 842 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (on January 1, 2019.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 278.25 Td (The Company is currently evaluating the impact of adopting the new lease accounting standards on its consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.25 Td (financial statements. ) Tj ET Q q 0 0 0 rg BT 134.01 266.25 Td (The Company is in process of creating an inventory of its leases where the Company may be a lessee to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.25 Td (assess the potential impact to the Company’) Tj ET Q q 0 0 0 rg BT 225.02 254.25 Td (s financial statements upon adoption of the new lease accounting standards.) Tj ET Q endstream endobj 31 0 obj <>] /Rotate 0 /Contents 32 0 R>> endobj 32 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 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 265.85 676.60 Td (September 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 (In June 2016, the F) Tj ET Q q 0 0 0 rg BT 148.20 632.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 197.10 632.10 Td (ASU No. 2016-13, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 275.15 632.10 Td (Financial Instruments - Cr) Tj ET Q q 0 0 0 rg BT 382.28 632.10 Td (edit Losses \(T) Tj ET Q q 0 0 0 rg BT 436.92 632.10 Td (opic 326\): Measur) Tj ET Q q 0 0 0 rg BT 510.98 632.10 Td (ement of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (Cr) Tj ET Q q 0 0 0 rg BT 59.69 620.10 Td (edit Losses of Financial Instruments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.74 620.10 Td (\(“ASU No. 2016-13”\). ) Tj ET Q q 0 0 0 rg BT 303.28 620.10 Td (ASU No. 2016-13 af) Tj ET Q q 0 0 0 rg BT 386.43 620.10 Td (fects entities holding financial assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (net investments in leases that are not accounted for at fair value through net income. ) Tj ET Q q 0 0 0 rg BT 391.15 608.10 Td (The amendments in ) Tj ET Q q 0 0 0 rg BT 471.96 608.10 Td (ASU No. 2016-13 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (require a financial asset \(or a group of financial assets\) measured at amortized cost basis to be presented at the net amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (expected to be collected. ) Tj ET Q q 0 0 0 rg BT 153.16 584.10 Td (The allowance for credit losses is a valuation account that is deducted from the amortized cost basis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (of the financial asset\(s\) to present the net carrying value at the amount expected to be collected on the financial asset. ) Tj ET Q q 0 0 0 rg BT 522.93 572.10 Td (ASU No. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (2016-13 also amends the impairment model for available-for) Tj ET Q q 0 0 0 rg BT 292.83 560.10 Td (-sale debt securities. ) Tj ET Q q 0 0 0 rg BT 378.64 560.10 Td (An entity will recognize an allowance for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (credit losses on available-for) Tj ET Q q 0 0 0 rg BT 164.53 548.10 Td (-sale debt securities as a contra-account to the amortized cost basis rather than as a direct reduction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (of the amortized cost basis of the investment, as is currently required. ) Tj ET Q q 0 0 0 rg BT 329.42 536.10 Td (ASU No. 2016-13 also requires new disclosures. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (financial assets measured at amortized cost, an entity will be required to disclose information about how it developed its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (allowance for credit losses, including changes in the factors that influenced management’) Tj ET Q q 0 0 0 rg BT 406.59 512.10 Td (s estimate of expected credit losses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (and the reasons for those changes. For financing receivables and net investments in leases measured at amortized cost, an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (entity will be required to further disaggregate the information it currently discloses about the credit quality of these assets by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (year of the asset’) Tj ET Q q 0 0 0 rg BT 116.97 476.10 Td (s origination for as many as five annual periods. For available-for) Tj ET Q q 0 0 0 rg BT 379.19 476.10 Td (-sale debt securities, an entity will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (required to provide a roll-forward of the allowance for credit losses and an aging analysis for securities that are past due. ) Tj ET Q q 0 0 0 rg BT 536.27 464.10 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (No. 2016-13 is ef) Tj ET Q q 0 0 0 rg BT 119.31 452.10 Td (fective for annual periods beginning after December 15, 2019, including interim periods within those fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (fiscal years. ) Tj ET Q q 0 0 0 rg BT 102.07 428.10 Td (The Company is still evaluating the impact of adopting ) Tj ET Q q 0 0 0 rg BT 324.53 428.10 Td (ASU No. 2016-13 on its financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 410.10 Td (In ) Tj ET Q q 0 0 0 rg BT 82.28 410.10 Td (August 2018, the F) Tj ET Q q 0 0 0 rg BT 158.21 410.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 207.11 410.10 Td (ASU No. 2018-13, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 285.16 410.10 Td (Fair V) Tj ET Q q 0 0 0 rg BT 310.44 410.10 Td (alue Measur) Tj ET Q q 0 0 0 rg BT 360.34 410.10 Td (ement \(T) Tj ET Q q 0 0 0 rg BT 394.69 410.10 Td (opic 820\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.07 410.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 441.07 410.10 Td (Disclosur) Tj ET Q q 0 0 0 rg BT 479.59 410.10 Td (e Framework -) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (Changes to the Disclosur) Tj ET Q q 0 0 0 rg BT 150.52 398.10 Td (e Requir) Tj ET Q q 0 0 0 rg BT 184.30 398.10 Td (ements for Fair V) Tj ET Q q 0 0 0 rg BT 254.02 398.10 Td (alue Measur) Tj ET Q q 0 0 0 rg BT 303.91 398.10 Td (ement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.29 398.10 Td (\(“ASU No. 2018-13”\). ) Tj ET Q q 0 0 0 rg BT 426.20 398.10 Td (The primary focus of ) Tj ET Q q 0 0 0 rg BT 512.84 398.10 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (2018-13 is to improve the ef) Tj ET Q q 0 0 0 rg BT 162.91 386.10 Td (fectiveness of the disclosure requirements for fair value measurements. ) Tj ET Q q 0 0 0 rg BT 449.47 386.10 Td (ASU No. 2018-13 removes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 540.05 374.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (policy for the timing of transfers between levels and the valuation processes for Level 3 fair value measurements. It also adds a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (requirement to disclose changes in unrealized gains and losses for the period included in other comprehensive income for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (recurring Level 3 fair value measurements held at the end of the reporting period and to disclose the range and weighted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (average of significant unobservable inputs used to develop recurring and nonrecurring Level 3 fair value measurements. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (certain unobservable inputs, entities may disclose other quantitative information in lieu of the weighted average if the other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (to develop the Level 3 fair value measurement. In addition, public entities are required to provide information about the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (measurement uncertainty of recurring Level 3 fair value measurements from the use of significant unobservable inputs if those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (inputs reasonably could have been dif) Tj ET Q q 0 0 0 rg BT 200.66 266.10 Td (ferent at the reporting date. ) Tj ET Q q 0 0 0 rg BT 311.17 266.10 Td (ASU No. 2018-13 is ef) Tj ET Q q 0 0 0 rg BT 403.48 266.10 Td (fective for annual periods beginning ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (after December 15, 2019, including interim periods within those fiscal years. Entities are permitted to early adopt either the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (entire standard or only the provisions that eliminate or modify the requirements. ) Tj ET Q q 0 0 0 rg BT 372.29 242.10 Td (The amendments on changes in unrealized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (recent interim or annual period presented in the initial fiscal year of adoption. ) Tj ET Q q 0 0 0 rg BT 361.61 206.10 Td (All other amendments should be applied ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (retrospectively to all periods presented upon their ef) Tj ET Q q 0 0 0 rg BT 257.86 194.10 Td (fective date. ) Tj ET Q q 0 0 0 rg BT 309.04 194.10 Td (The Company is still evaluating the impact of adopting ) Tj ET Q q 0 0 0 rg BT 531.50 194.10 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (No. 2018-13 on its financial statements, but does not expect the adoption of ) Tj ET Q q 0 0 0 rg BT 354.16 182.10 Td (ASU No. 2018-13 to have a material impact on its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (financial statements. ) 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 265.85 676.60 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 54.50 632.25 Td (. ) Tj ET Q q 0 0 0 rg BT 72.00 632.25 Td (REAL) Tj ET Q q 0 0 0 rg BT 99.23 632.25 Td ( EST) Tj ET Q q 0 0 0 rg BT 119.89 632.25 Td (A) Tj ET Q q 0 0 0 rg BT 126.37 632.25 Td (TE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 614.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 614.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 238.09 614.25 Td (s real estate portfolio was composed of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 614.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 614.25 Td ( hotel properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.63 614.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.29 614.25 Td ( of) Tj ET Q q 0 0 0 rg BT 508.94 614.25 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (properties and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.92 602.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.36 602.25 Td ( apartment building. In addition, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.94 602.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.21 602.25 Td (, the Company has entered into a consolidated joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (venture to develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.42 590.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.86 590.25 Td ( retail property) Tj ET Q q 0 0 0 rg BT 199.63 590.25 Td (. ) Tj ET Q q 0 0 0 rg BT 204.45 590.25 Td (The following table summarizes the Company’) Tj ET Q q 0 0 0 rg BT 392.46 590.25 Td (s real estate as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.26 590.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.52 590.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 578.25 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 550.75 320.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 550.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 550.75 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 550.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 550.75 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 528.75 320.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 528.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 528.75 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 528.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 528.75 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 506.75 320.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 506.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 506.75 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 506.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 506.75 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 484.75 320.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 484.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 484.75 93.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 484.75 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 484.75 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 374 550.75 m 467 550.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 550.75 m 564 550.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 550.75 m 467 550.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 550.75 m 564 550.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 506.75 m 467 506.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 506.75 m 564 506.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 484.75 m 467 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 484.75 m 564 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 484.75 m 467 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 474.75 m 467 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 472.75 m 467 472.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 484.75 m 564 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 474.75 m 564 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 472.75 m 564 472.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.60 553.83 Td (September) Tj ET Q q 0 0 0 rg BT 423.41 553.83 Td ( 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.75 553.83 Td (December) Tj ET Q q 0 0 0 rg BT 519.25 553.83 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 542.70 Td (Land) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 376.50 542.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 542.70 Td (104,138) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.50 542.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.80 542.70 Td (104,138) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 531.70 Td (Buildings and improvements) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 531.70 Td (368,448) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.80 531.70 Td (362,210) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 520.70 Td (Construction in progress) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 520.70 Td (65,106) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.80 520.70 Td (63,732) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 509.70 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 509.70 Td (enant origination and absorption costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 509.70 Td (17,728) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.80 509.70 Td (19,006) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 498.70 Td (T) Tj ET Q q 0 0 0 rg BT 62.83 498.70 Td (otal real estate, cost and net of impairment char) Tj ET Q q 0 0 0 rg BT 214.40 498.70 Td (ge ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 223.95 502.33 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 498.70 Td (555,420) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.80 498.70 Td (549,086) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 487.70 Td (Accumulated depreciation and amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.10 487.70 Td (\(31,578) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.80 487.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.10 487.70 Td (\(18,646) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 560.80 487.70 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.50 476.70 Td (T) Tj ET Q q 0 0 0 rg BT 62.83 476.70 Td (otal real estate, net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 376.50 476.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.80 476.70 Td (523,842) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.50 476.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.80 476.70 Td (530,440) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 453.27 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 449.65 Td ( See “ – Impairment of Real Estate” below) Tj ET Q q 0 0 0 rg BT 191.44 449.65 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 425.65 Td (The following table provides summary information regarding the Company’) Tj ET Q q 0 0 0 rg BT 376.93 425.65 Td (s real estate as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.73 425.65 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.00 425.65 Td ( \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.65 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 368.15 52.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 102.00 368.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 106.00 368.15 35.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 368.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 145.00 368.15 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 368.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 368.15 21.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.00 368.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 368.15 32.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.00 368.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.00 368.15 30.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 368.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 368.15 50.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 368.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 368.15 38.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 368.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 368.15 57.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 368.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.00 368.15 41.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 368.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 368.15 38.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.00 368.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.00 368.15 36.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 334.15 52.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 102.00 334.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 106.00 334.15 35.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 334.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 145.00 334.15 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 334.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 334.15 21.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.00 334.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 334.15 32.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.00 334.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.00 334.15 30.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 334.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 334.15 50.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 334.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 334.15 38.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 334.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 334.15 57.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 334.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.00 334.15 41.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 334.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 334.15 38.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.00 334.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.00 334.15 36.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 300.15 52.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 102.00 300.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 106.00 300.15 35.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 300.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 145.00 300.15 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 300.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 300.15 21.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.00 300.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 300.15 32.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.00 300.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.00 300.15 30.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 300.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 300.15 50.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 300.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 300.15 38.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 300.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 300.15 57.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 300.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.00 300.15 41.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 300.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 300.15 38.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.00 300.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.00 300.15 36.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 266.15 52.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 102.00 266.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 106.00 266.15 35.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 266.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 145.00 266.15 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 266.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 266.15 21.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.00 266.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 266.15 32.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.00 266.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.00 266.15 30.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 266.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 266.15 50.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 266.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 266.15 38.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 266.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 266.15 57.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 266.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.00 266.15 41.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 266.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 266.15 38.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.00 266.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.00 266.15 36.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 232.15 52.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 102.00 232.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 106.00 232.15 35.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 232.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 145.00 232.15 39.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 232.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 232.15 21.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 209.00 232.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 213.00 232.15 32.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.00 232.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.00 232.15 30.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 232.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 232.15 50.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 232.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 232.15 38.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 232.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 232.15 57.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 232.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.00 232.15 41.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 232.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 232.15 38.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.00 232.15 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.00 232.15 36.00 -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 50 368.15 m 102 368.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 106 368.15 m 141 368.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 368.15 m 184 368.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 368.15 m 209 368.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 213 368.15 m 245 368.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 368.15 m 279 368.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 368.15 m 333 368.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 368.15 m 375 368.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 368.15 m 436 368.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 368.15 m 481 368.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 368.15 m 523 368.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 527 368.15 m 563 368.15 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 232.14999999999998 m 279 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 232.14999999999998 m 333 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 232.14999999999998 m 375 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 232.14999999999998 m 436 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 232.14999999999998 m 481 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 232.14999999999998 m 523 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 232.14999999999998 m 279 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 216.14999999999998 m 279 216.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 214.14999999999998 m 279 214.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 232.14999999999998 m 333 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 216.14999999999998 m 333 216.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 214.14999999999998 m 333 214.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 232.14999999999998 m 375 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 216.14999999999998 m 375 216.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 214.14999999999998 m 375 214.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 232.14999999999998 m 436 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 216.14999999999998 m 436 216.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 214.14999999999998 m 436 214.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 232.14999999999998 m 481 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 216.14999999999998 m 481 216.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 214.14999999999998 m 481 214.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 232.14999999999998 m 523 232.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 216.14999999999998 m 523 216.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 214.14999999999998 m 523 214.14999999999998 l s BT /F2 6.00 Tf ET q 0 0 0 rg BT 64.05 371.99 Td (Pr) Tj ET Q q 0 0 0 rg BT 70.27 371.99 Td (operty) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 117.00 377.99 Td (Date ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 111.05 371.99 Td (Acquir) Tj ET Q q 0 0 0 rg BT 128.94 371.99 Td (ed) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 158.50 371.99 Td (City) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 191.50 371.99 Td (State) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 217.05 377.99 Td (Pr) Tj ET Q q 0 0 0 rg BT 223.27 377.99 Td (operty ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 222.20 371.99 Td (T) Tj ET Q q 0 0 0 rg BT 225.76 371.99 Td (ype) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 256.65 371.99 Td (Land) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 296.45 383.99 Td (Building ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 302.65 377.99 Td (and ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 285.85 371.99 Td (Impr) Tj ET Q q 0 0 0 rg BT 299.07 371.99 Td (ovements) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 323.07 371.99 Td ( ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 324.57 374.71 Td (\(1\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 329.12 371.99 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 346.60 389.99 Td (T) Tj ET Q q 0 0 0 rg BT 350.05 389.99 Td (enant ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 340.45 383.99 Td (Origination ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 350.65 377.99 Td (and ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 340.95 371.99 Td (Absorption) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 384.35 389.99 Td (T) Tj ET Q q 0 0 0 rg BT 387.80 389.99 Td (otal Real Estate, ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 383.80 383.99 Td (at Cost and Net of ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 391.50 377.99 Td (Impairment ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 397.50 371.99 Td (Charge) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 443.00 389.99 Td (Accumulated ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 443.55 383.99 Td (Depr) Tj ET Q q 0 0 0 rg BT 456.44 383.99 Td (eciation ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 455.15 377.99 Td (and ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 442.80 371.99 Td (Amortization) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 490.35 377.99 Td (T) Tj ET Q q 0 0 0 rg BT 493.80 377.99 Td (otal Real ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 489.50 371.99 Td (Estate, Net) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 530.30 377.99 Td (Ownership ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 541.50 371.99 Td (%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 360.99 Td (Springmaid Beach ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 61.50 354.99 Td (Resort) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.30 354.99 Td (12/30/2014) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 147.55 354.99 Td (Myrtle Beach) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 194.30 354.99 Td (SC) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 221.80 354.99 Td (Hotel) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 251.50 354.99 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 260.00 354.99 Td (27,438) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 285.50 354.99 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 314.00 354.99 Td (33,402) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 339.50 354.99 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 366.50 354.99 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 381.50 354.99 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 417.00 354.99 Td (60,840) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 442.50 354.99 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 463.00 354.99 Td (\(6,475) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 478.50 354.99 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 487.50 354.99 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 504.00 354.99 Td (54,365) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 536.75 354.99 Td (90.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 337.99 Td (Q&C Hotel) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.30 337.99 Td (12/17/2015) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 148.25 337.99 Td (New Orleans) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 194.15 337.99 Td (LA) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 221.80 337.99 Td (Hotel) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 263.00 337.99 Td (1,232) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 314.00 337.99 Td (53,075) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 366.50 337.99 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 417.00 337.99 Td (54,307) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 463.00 337.99 Td (\(5,512) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 478.50 337.99 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 504.00 337.99 Td (48,795) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 536.75 337.99 Td (90.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 320.99 Td (2200 Paseo ) Tj ET Q q 0 0 0 rg BT 81.39 320.99 Td (V) Tj ET Q q 0 0 0 rg BT 85.06 320.99 Td (erde) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.30 320.99 Td (12/23/2015) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 151.00 320.99 Td (Henderson) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 193.70 320.99 Td (NV) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 220.85 320.99 Td (Of) Tj ET Q q 0 0 0 rg BT 227.07 320.99 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 263.00 320.99 Td (1,850) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 314.00 320.99 Td (1) Tj ET Q q 0 0 0 rg BT 317.00 320.99 Td (1,728) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 363.50 320.99 Td (553) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 417.00 320.99 Td (14,131) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 463.00 320.99 Td (\(1,505) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 478.50 320.99 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 504.00 320.99 Td (12,626) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 535.25 320.99 Td (100.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 303.99 Td (Lincoln Court) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.30 303.99 Td (05/20/2016) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 152.30 303.99 Td (Campbell) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 193.95 303.99 Td (CA) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 220.85 303.99 Td (Of) Tj ET Q q 0 0 0 rg BT 227.07 303.99 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 260.00 303.99 Td (14,706) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 314.00 303.99 Td (34,064) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 359.00 303.99 Td (2,881) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 417.00 303.99 Td (51,651) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 463.00 303.99 Td (\(4,137) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 478.50 303.99 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 504.00 303.99 Td (47,514) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 535.25 303.99 Td (100.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 292.99 Td (Lofts at NoHo ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 61.50 286.99 Td (Commons) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.40 286.99 Td (1) Tj ET Q q 0 0 0 rg BT 112.18 286.99 Td (1/16/2016) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 157.00 292.99 Td (North ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 150.50 286.99 Td (Hollywood) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 193.95 286.99 Td (CA) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 215.65 286.99 Td (Apartment) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 260.00 286.99 Td (26,222) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 314.00 286.99 Td (77,305) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 366.50 286.99 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 414.00 286.99 Td (103,527) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 463.00 286.99 Td (\(3,629) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 478.50 286.99 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 504.00 286.99 Td (99,898) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 536.75 286.99 Td (90.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 275.99 Td (210 ) Tj ET Q q 0 0 0 rg BT 62.89 275.99 Td (W) Tj ET Q q 0 0 0 rg BT 68.07 275.99 Td (est 31st ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 61.50 269.99 Td (Street ) Tj ET Q BT /F1 6.00 Tf ET BT /F1 3.90 Tf ET q 0 0 0 rg BT 77.00 272.71 Td (\(2\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.30 269.99 Td (12/01/2016) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 151.80 269.99 Td (New ) Tj ET Q q 0 0 0 rg BT 164.41 269.99 Td (Y) Tj ET Q q 0 0 0 rg BT 168.14 269.99 Td (ork) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 193.75 269.99 Td (NY) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 221.30 269.99 Td (Retail) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 270.50 269.99 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 314.00 269.99 Td (65,106) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 366.50 269.99 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 417.00 269.99 Td (65,106) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 472.50 269.99 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 504.00 269.99 Td (65,106) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 536.75 269.99 Td (80.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 258.99 Td (Oakland City ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 61.50 252.99 Td (Center) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.30 252.99 Td (08/18/2017) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 153.80 252.99 Td (Oakland) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 193.95 252.99 Td (CA) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 220.85 252.99 Td (Of) Tj ET Q q 0 0 0 rg BT 227.07 252.99 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 260.00 252.99 Td (22,150) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 311.00 252.99 Td (138,939) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 356.00 252.99 Td (1) Tj ET Q q 0 0 0 rg BT 359.00 252.99 Td (1,494) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 414.00 252.99 Td (172,583) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 463.00 252.99 Td (\(8,871) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 478.50 252.99 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 501.00 252.99 Td (163,712) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 535.25 252.99 Td (100.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 235.99 Td (Madison Square ) Tj ET Q BT /F1 6.00 Tf ET BT /F1 3.90 Tf ET q 0 0 0 rg BT 93.16 238.71 Td (\(3\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 109.30 235.99 Td (10/03/2017) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 154.15 235.99 Td (Phoenix) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 194.00 235.99 Td (AZ) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 220.85 235.99 Td (Of) Tj ET Q q 0 0 0 rg BT 227.07 235.99 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 260.00 235.99 Td (10,540) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 314.00 235.99 Td (19,935) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 359.00 235.99 Td (2,800) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 417.00 235.99 Td (33,275) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 463.00 235.99 Td (\(1,449) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 478.50 235.99 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 504.00 235.99 Td (31,826) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 536.75 235.99 Td (90.0%) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 251.50 218.99 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 257.00 218.99 Td (104,138) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 285.50 218.99 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 311.00 218.99 Td (433,554) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 339.50 218.99 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 356.00 218.99 Td (17,728) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 381.50 218.99 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 414.00 218.99 Td (555,420) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 442.50 218.99 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 460.00 218.99 Td (\(31,578) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 478.50 218.99 Td (\)) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 487.50 218.99 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 501.00 218.99 Td (523,842) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.65 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 194.67 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 191.05 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 49.50 182.08 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 178.45 Td ( ) Tj ET Q q 0 0 0 rg BT 57.42 178.45 Td (The Company acquired the rights to a leasehold interest with respect to this property) Tj ET Q q 0 0 0 rg BT 327.27 178.45 Td (. ) Tj ET Q q 0 0 0 rg BT 331.13 178.45 Td (The leasehold interest expires January 31, 21) Tj ET Q q 0 0 0 rg BT 475.00 178.45 Td (14.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 169.48 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 165.85 Td ( ) Tj ET Q q 0 0 0 rg BT 57.42 165.85 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 362.59 165.85 Td (. ) Tj ET Q q 0 0 0 rg BT 366.45 165.85 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 49.50 156.25 Td (re-named Madison Square in connection with the Company’) Tj ET Q q 0 0 0 rg BT 242.57 156.25 Td (s re-branding strategy for this property) Tj ET Q q 0 0 0 rg BT 365.79 156.25 Td (.) 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 265.85 676.60 Td (September 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 (Office Pr) Tj ET Q q 0 0 0 rg BT 88.46 632.25 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 (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 614.25 Td (, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.97 614.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.63 614.25 Td ( of) Tj ET Q q 0 0 0 rg BT 294.28 614.25 Td (fice properties encompassing in the aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.76 614.25 Td (864,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.26 614.25 Td ( rentable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (square feet which were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.45 602.25 Td (72%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.78 602.25 Td ( occupied. ) Tj ET Q q 0 0 0 rg BT 206.19 602.25 Td (The following table provides detailed information regarding the Company’) Tj ET Q q 0 0 0 rg BT 505.56 602.25 Td (s of) Tj ET Q q 0 0 0 rg BT 520.10 602.25 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (revenues and expenses for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.95 590.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.94 590.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.38 590.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.59 590.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.42 590.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.68 590.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.12 590.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.12 590.25 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 545.75 237.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 545.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 545.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 545.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 545.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 545.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 545.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 545.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 545.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 517.75 237.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 517.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 517.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 517.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 517.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 517.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 517.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 517.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 517.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 489.75 237.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 489.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 489.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 489.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 489.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 489.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 489.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 489.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 489.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 461.75 237.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 461.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 461.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 461.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 461.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 461.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 461.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 461.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 461.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 433.75 237.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 433.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 433.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 433.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 433.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 433.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 433.75 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 433.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 433.75 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 291 559.75 m 356 559.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 559.75 m 360 559.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 559.75 m 425 559.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 559.75 m 494 559.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 559.75 m 498 559.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 559.75 m 563 559.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 559.75 m 356 559.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 545.75 m 356 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 559.75 m 360 559.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 559.75 m 425 559.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 545.75 m 425 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 545.75 m 494 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 545.75 m 563 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 503.75 m 356 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 490.75 m 356 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 488.75 m 356 488.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 503.75 m 425 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 490.75 m 425 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 488.75 m 425 488.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 503.75 m 494 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 490.75 m 494 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 488.75 m 494 488.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 503.75 m 563 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 490.75 m 563 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 488.75 m 563 488.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 433.75 m 356 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 433.75 m 425 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 433.75 m 356 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 420.75 m 356 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 418.75 m 356 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 433.75 m 425 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 420.75 m 425 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 418.75 m 425 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 433.75 m 494 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 420.75 m 494 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 418.75 m 494 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 433.75 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 498 420.75 m 563 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 418.75 m 563 418.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 295.75 563.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 309.01 563.98 Td (ee Months Ended September) Tj ET Q q 0 0 0 rg BT 407.31 563.98 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 435.90 563.98 Td (Nine Months Ended September) Tj ET Q q 0 0 0 rg BT 543.17 563.98 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 315.00 549.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.00 549.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 549.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 549.98 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 536.00 Td (Of) Tj ET Q q 0 0 0 rg BT 60.80 536.00 Td (fice revenues:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 522.00 Td (Rental income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 522.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 522.00 Td (6,653) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.50 522.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 522.00 Td (3,983) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 522.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.80 522.00 Td (20,082) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 522.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 522.00 Td (7,406) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 508.00 Td (T) Tj ET Q q 0 0 0 rg BT 68.83 508.00 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 198.79 511.63 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 340.80 508.00 Td (862) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.80 508.00 Td (235) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 508.00 Td (2,393) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 508.00 Td (418) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 494.00 Td (Of) Tj ET Q q 0 0 0 rg BT 60.80 494.00 Td (fice revenues) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 494.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 494.00 Td (7,515) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.50 494.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 494.00 Td (4,218) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 494.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 468.80 494.00 Td (22,475) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 494.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 494.00 Td (7,824) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 466.00 Td (Of) Tj ET Q q 0 0 0 rg BT 60.80 466.00 Td (fice expenses:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 452.00 Td (Operating, maintenance, and management) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 452.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 452.00 Td (2,219) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.50 452.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 452.00 Td (1,094) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 452.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 452.00 Td (6,072) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 452.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 452.00 Td (1,890) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 438.00 Td (Real estate taxes and insurance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 438.00 Td (1,022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.80 438.00 Td (442) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 438.00 Td (2,879) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 438.00 Td (823) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 424.00 Td (Of) Tj ET Q q 0 0 0 rg BT 60.80 424.00 Td (fice expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 424.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 424.00 Td (3,241) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.50 424.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 424.00 Td (1,536) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 424.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 424.00 Td (8,951) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 424.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 424.00 Td (2,713) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 408.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 399.27 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 395.65 Td (For the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 81.75 395.65 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 97.74 395.65 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 113.29 395.65 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 127.06 395.65 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 175.72 395.65 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.93 395.65 Td (, included in tenant reimbursements and other income for of) Tj ET Q q 0 0 0 rg BT 431.73 395.65 Td (fice properties is ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.04 395.65 Td ($0.2 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 526.16 395.65 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.71 395.65 Td ($0.6 ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 386.05 Td (million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 72.61 386.05 Td (, respectively) Tj ET Q q 0 0 0 rg BT 114.74 386.05 Td (, of other operating income and tenant reimbursements for substantial services accounted for under ) Tj ET Q q 0 0 0 rg BT 432.64 386.05 Td (ASU No. 2014-09.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 362.05 Td (Operating Leases) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 347.05 Td (The Company’) Tj ET Q q 0 0 0 rg BT 131.71 347.05 Td (s of) Tj ET Q q 0 0 0 rg BT 146.25 347.05 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 542.95 347.05 Td (. ) Tj ET Q q 0 0 0 rg BT 549.90 347.05 Td (As ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.05 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 335.05 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.59 335.05 Td (, the leases had remaining terms, excluding options to extend, of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.31 335.05 Td (9.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.81 335.05 Td ( years with a weighted-average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.05 Td (remaining term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.20 323.05 Td (3.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.70 323.05 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 49.50 311.05 Td (termination for all or a part of the leased premises after paying a specified penalty) Tj ET Q q 0 0 0 rg BT 376.50 311.05 Td (, rights of first refusal to purchase the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.05 Td (property at competitive market rates, and other terms and conditions as negotiated. ) Tj ET Q q 0 0 0 rg BT 382.55 299.05 Td (The Company retains substantially all of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.05 Td (risks and benefits of ownership of the real estate assets leased to tenants. Generally) Tj ET Q q 0 0 0 rg BT 380.96 287.05 Td (, upon the execution of a lease, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.05 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 433.07 275.05 Td (The amount required as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.05 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 49.50 251.05 Td (not a significant amount. ) Tj ET Q q 0 0 0 rg BT 151.24 251.05 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 49.50 239.05 Td (amount of its security deposit. Security deposits received in cash related to of) Tj ET Q q 0 0 0 rg BT 361.46 239.05 Td (fice tenant leases are included in other liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.05 Td (in the accompanying consolidated balance sheets and totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.97 227.05 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.86 227.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.30 227.05 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.19 227.05 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.35 227.05 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.61 227.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.05 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 215.05 Td (, respectively) Tj ET Q q 0 0 0 rg BT 180.75 215.05 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 197.05 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 197.05 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 197.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 197.05 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.19 197.05 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.01 197.05 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.28 197.05 Td (, the Company recognized deferred rent from tenants of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.19 197.05 Td ($0.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.05 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 185.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 185.05 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.72 185.05 Td (, respectively) Tj ET Q q 0 0 0 rg BT 199.38 185.05 Td (, net of lease incentive amortization. During each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.29 185.05 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.28 185.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.72 185.05 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.94 185.05 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.05 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 173.05 Td (, the Company recognized deferred rent from tenants of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.68 173.05 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.57 173.05 Td (, net of lease incentive amortization. ) Tj ET Q q 0 0 0 rg BT 550.74 173.05 Td (As ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.05 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 161.05 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.59 161.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.03 161.05 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.62 161.05 Td (, the cumulative deferred rent receivable balance, including unamortized lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.05 Td (incentive receivables, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.67 149.05 Td ($2.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.56 149.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.00 149.05 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.89 149.05 Td (, respectively) Tj ET Q q 0 0 0 rg BT 326.56 149.05 Td (, and is included in rents and other receivables on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.05 Td (accompanying balance sheets. ) Tj ET Q q 0 0 0 rg BT 172.60 137.05 Td (The cumulative deferred rent balance included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.39 137.05 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.29 137.05 Td ( of unamortized lease incentives as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.05 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 125.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.20 125.05 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.79 125.05 Td (. ) Tj ET Q endstream endobj 37 0 obj <>] /Rotate 0 /Contents 38 0 R>> endobj 38 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 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 265.85 676.60 Td (September 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 /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 632.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 632.10 Td (, the future minimum rental income from the Company’) Tj ET Q q 0 0 0 rg BT 399.71 632.10 Td (s of) Tj ET Q q 0 0 0 rg BT 414.25 632.10 Td (fice properties under its non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (cancelable operating leases was as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 603.60 396.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 603.60 117.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 575.60 396.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 575.60 117.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 547.60 396.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 547.60 117.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 519.60 396.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 519.60 117.00 -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 446 519.6 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 446 506.6 m 563 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 504.6 m 563 504.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 594.70 Td (October 1, 2018 through December 31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 448.50 594.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 594.70 Td (5,406) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 580.70 Td (2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 580.70 Td (21,359) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 566.70 Td (2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 566.70 Td (19,285) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 552.70 Td (2021) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 552.70 Td (16,290) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 538.70 Td (2022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 538.70 Td (13,002) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 524.70 Td (Thereafter) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 524.70 Td (30,556) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 448.50 510.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 510.70 Td (105,898) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 482.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 482.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 482.10 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 238.09 482.10 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 499.36 482.10 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.36 482.10 Td ( tenants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (over a diverse range of industries and geographic areas. ) Tj ET Q q 0 0 0 rg BT 273.86 470.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.30 470.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.56 470.10 Td (, the highest tenant industry concentrations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (\(greater than 10% of annualized base rent\) in the Company’) Tj ET Q q 0 0 0 rg BT 288.58 458.10 Td (s portfolio were as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 420.60 200.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 420.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 420.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 420.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 420.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 420.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 420.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 394.60 200.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 394.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 394.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 394.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 394.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 394.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 394.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 368.60 200.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 368.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 368.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.00 368.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.00 368.60 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 368.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 368.60 100.00 -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 50 420.6 m 250 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 420.6 m 354 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 420.6 m 458 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 420.6 m 562 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 420.6 m 250 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 420.6 m 354 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 420.6 m 458 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 420.6 m 562 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 368.6 m 458 368.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 368.6 m 562 368.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 368.6 m 458 368.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 356.6 m 458 356.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 354.6 m 458 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 368.6 m 562 368.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 356.6 m 562 356.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 354.6 m 562 354.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 424.83 Td (Industry) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 270.65 424.83 Td (Number) Tj ET Q q 0 0 0 rg BT 298.95 424.83 Td ( of ) Tj ET Q q 0 0 0 rg BT 309.47 424.83 Td (T) Tj ET Q q 0 0 0 rg BT 314.07 424.83 Td (enants) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.65 432.83 Td (Annualized Base Rent ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 443.21 436.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.27 432.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.15 424.83 Td (\(in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.35 432.83 Td (Per) Tj ET Q q 0 0 0 rg BT 500.19 432.83 Td (centage of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.70 424.83 Td (Annualized Base Rent) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 411.85 Td (Professional, Scientific and Legal) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.50 411.85 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.50 411.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.80 411.85 Td (3,753) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 411.85 Td (16.1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 411.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 398.85 Td (Legal Services) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.50 398.85 Td (12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.80 398.85 Td (3,647) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 398.85 Td (15.6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 398.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 385.85 Td (Public ) Tj ET Q q 0 0 0 rg BT 74.72 385.85 Td (Administration \(Government\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.50 385.85 Td (6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.80 385.85 Td (3,168) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 385.85 Td (13.6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 385.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 372.85 Td (Finance) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.50 372.85 Td (13) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.80 372.85 Td (2,505) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 372.85 Td (10.7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 372.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.50 359.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 432.80 359.85 Td (13,073) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 359.85 Td (56.0) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 554.80 359.85 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 335.13 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 331.50 Td (Annualized base rent represents annualized contractual base rental income as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 314.30 331.50 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.51 331.50 Td (, adjusted to straight-line any contractual tenant ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 321.90 Td (concessions \(including free rent\), rent increases and rent decreases from the lease’) Tj ET Q q 0 0 0 rg BT 312.05 321.90 Td (s inception through the balance of the lease term.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 297.90 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 49.50 285.90 Td (of annualized base rent. No material tenant credit issues have been identified at this time.) Tj ET Q endstream endobj 39 0 obj <>] /Rotate 0 /Contents 40 0 R>> endobj 40 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 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 265.85 676.60 Td (September 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 /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 (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 614.25 Td (, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.97 614.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.97 614.25 Td ( hotel properties. ) Tj ET Q q 0 0 0 rg BT 354.27 614.25 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 (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.68 602.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.50 602.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.76 602.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.20 602.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.20 602.25 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 289.75 565.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 303.01 565.83 Td (ee Months Ended September) Tj ET Q q 0 0 0 rg BT 401.31 565.83 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.90 565.83 Td (Nine Months Ended September) Tj ET Q q 0 0 0 rg BT 541.17 565.83 Td ( 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 ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.80 528.00 Td (8,094) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 528.00 Td (4,973) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.50 528.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.80 528.00 Td (20,207) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 528.00 Td (13,304) 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 (1,574) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 515.00 Td (1,031) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 515.00 Td (3,893) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 515.00 Td (2,785) 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 (298) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 502.00 Td (288) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 502.00 Td (879) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 502.00 Td (838) 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 BT /F1 5.20 Tf ET q 0 0 0 rg BT 84.71 492.63 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 334.80 489.00 Td (495) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 489.00 Td (5,868) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 489.00 Td (1,255) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 489.00 Td (6,546) 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 ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 324.80 476.00 Td (10,461) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.50 476.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 395.80 476.00 Td (12,160) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.50 476.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.80 476.00 Td (26,234) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 476.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 476.00 Td (23,473) 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 ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.80 443.00 Td (1,824) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 443.00 Td (1,391) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.50 443.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 443.00 Td (4,839) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 443.00 Td (3,604) 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 (1,084) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 430.00 Td (868) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 430.00 Td (3,005) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 430.00 Td (2,381) 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 (704) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 417.00 Td (601) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 417.00 Td (2,149) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 417.00 Td (1,748) 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 (932) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 404.00 Td (690) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 404.00 Td (2,381) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 404.00 Td (2,058) 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 (571) 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 470.80 391.00 Td (1,566) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 391.00 Td (1,350) 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 (364) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 378.00 Td (325) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 378.00 Td (916) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 378.00 Td (777) 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 (447) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 365.00 Td (867) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.80 365.00 Td (1,31) Tj ET Q q 0 0 0 rg BT 484.80 365.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 365.00 Td (1,650) 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 (180) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.80 352.00 Td (61) Tj ET Q q 0 0 0 rg BT 413.80 352.00 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 352.00 Td (994) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 352.00 Td (1,271) 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 ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 328.80 339.00 Td (6,106) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.50 339.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 339.00 Td (5,807) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.50 339.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.80 339.00 Td (17,161) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.50 339.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 339.00 Td (14,839) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 314.27 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 310.65 Td ( Hotel revenues - other includes ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 159.53 310.65 Td ($5.5 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 198.64 310.65 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 214.19 310.65 Td ($5.8 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.30 310.65 Td ( of business interruption insurance recovery for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 418.59 310.65 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 434.57 310.65 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 450.13 310.65 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 463.90 310.65 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 512.56 310.65 Td (September 30, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 301.05 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 65.50 301.05 Td (, respectively) Tj ET Q q 0 0 0 rg BT 107.63 301.05 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 277.05 Td (Contract liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 262.05 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 49.50 250.05 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 411.89 250.05 Td (s hotels. ) Tj ET Q q 0 0 0 rg BT 446.61 250.05 Td (Advanced deposits are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.05 Td (recognized as revenue at the time of the guest’) Tj ET Q q 0 0 0 rg BT 234.98 238.05 Td (s stay or completion of the banquet services. ) Tj ET Q q 0 0 0 rg BT 415.03 238.05 Td (The following table summarizes the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.05 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 226.05 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 49.50 214.05 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 214.05 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.20 214.05 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.79 214.05 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 184.55 327.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 184.55 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 184.55 89.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 184.55 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 184.55 89.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 158.55 327.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 158.55 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 158.55 89.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 158.55 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 158.55 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 381 184.54999999999995 m 470 184.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 184.54999999999995 m 563 184.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 184.54999999999995 m 470 184.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 184.54999999999995 m 563 184.54999999999995 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.60 188.78 Td (September) Tj ET Q q 0 0 0 rg BT 428.41 188.78 Td ( 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 485.75 188.78 Td (December) Tj ET Q q 0 0 0 rg BT 520.25 188.78 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 175.80 Td (Contract liability) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 383.50 175.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 175.80 Td (431) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.50 175.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 175.80 Td (358) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 162.80 Td (Revenue recognized in the period from:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 149.80 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 383.50 149.80 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.80 149.80 Td (302) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 553.40 153.91 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.05 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 125.08 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 121.45 Td ( ) Tj ET Q q 0 0 0 rg BT 58.72 121.45 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 49.50 111.85 Td (December 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 112.37 111.85 Td (, as the Company adopted ) Tj ET Q q 0 0 0 rg BT 196.80 111.85 Td (ASU No. 2014-09 ef) Tj ET Q q 0 0 0 rg BT 263.31 111.85 Td (fective January 1, 2018.) 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 265.85 676.60 Td (September 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 /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 (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 614.25 Td (, the Company owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.97 614.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.41 614.25 Td ( apartment property with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.04 614.25 Td (292) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.04 614.25 Td ( units which was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.48 614.25 Td (91%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.81 614.25 Td ( occupied. ) Tj ET Q q 0 0 0 rg BT 529.23 614.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (following table provides detailed information regarding the Company’) Tj ET Q q 0 0 0 rg BT 330.82 602.25 Td (s apartment revenues and expenses for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.14 602.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.13 602.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.57 602.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.78 602.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 590.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 590.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.53 590.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.53 590.25 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 280.75 564.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 294.01 564.98 Td (ee Months Ended September) Tj ET Q q 0 0 0 rg BT 392.31 564.98 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.90 564.98 Td (Nine Months Ended September) Tj ET Q q 0 0 0 rg BT 538.17 564.98 Td ( 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 ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.80 526.70 Td (1,774) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 526.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 526.70 Td (1,638) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 526.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 526.70 Td (5,003) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 526.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 526.70 Td (4,856) 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 (166) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 514.70 Td (108) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.80 514.70 Td (456) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 514.70 Td (328) 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 ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 319.80 502.00 Td (1,940) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 502.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 502.00 Td (1,746) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 502.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 502.00 Td (5,459) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 502.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 502.00 Td (5,184) 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 ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 463.00 Td (639) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 463.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 463.00 Td (683) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 463.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 463.00 Td (1,844) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 463.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 463.00 Td (1,704) 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 (337) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 450.00 Td (343) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 450.00 Td (1,014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 450.00 Td (1,020) 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 ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 325.80 437.00 Td (976) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.50 437.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 437.00 Td (1,026) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 437.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.80 437.00 Td (2,858) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 437.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 437.00 Td (2,724) 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 (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 391.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 238.09 391.25 Td (s real estate investments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.78 391.25 Td (California) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.32 391.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.76 391.25 Td (New ) Tj ET Q q 0 0 0 rg BT 428.77 391.25 Td (Y) Tj ET Q q 0 0 0 rg BT 434.99 391.25 Td (ork) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.32 391.25 Td ( represented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.41 391.25 Td (53.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.24 391.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.25 Td (1) Tj ET Q q 0 0 0 rg BT 54.13 379.25 Td (1.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.96 379.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 127.62 379.25 Td (, of the Company’) Tj ET Q q 0 0 0 rg BT 199.83 379.25 Td (s total assets. ) Tj ET Q q 0 0 0 rg BT 254.28 379.25 Td (As a result, the geographic concentration of the Company’) Tj ET Q q 0 0 0 rg BT 487.82 379.25 Td (s portfolio makes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.25 Td (it particularly susceptible to adverse economic developments in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.80 367.25 Td (California) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.35 367.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.78 367.25 Td (New ) Tj ET Q q 0 0 0 rg BT 401.79 367.25 Td (Y) Tj ET Q q 0 0 0 rg BT 408.02 367.25 Td (ork) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.35 367.25 Td ( real estate markets. ) Tj ET Q q 0 0 0 rg BT 502.70 367.25 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 49.50 313.25 Td (Impairment of Real Estate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 295.25 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 295.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 295.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 295.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.19 295.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.01 295.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.28 295.25 Td (, the Company recorded an impairment char) Tj ET Q q 0 0 0 rg BT 491.42 295.25 Td (ge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.19 295.25 Td ($4.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 283.25 Td ( to write-down the carrying value of 210 ) Tj ET Q q 0 0 0 rg BT 242.61 283.25 Td (W) Tj ET Q q 0 0 0 rg BT 251.24 283.25 Td (est 31st Street, a development property located in New ) Tj ET Q q 0 0 0 rg BT 472.47 283.25 Td (Y) Tj ET Q q 0 0 0 rg BT 478.69 283.25 Td (ork, New ) Tj ET Q q 0 0 0 rg BT 518.04 283.25 Td (Y) Tj ET Q q 0 0 0 rg BT 524.26 283.25 Td (ork, to its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.25 Td (estimated fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.68 271.25 Td ($58.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.57 271.25 Td ( due to a change in the projected hold period and related decrease in projected cash flows. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 259.25 Td (The Company purchased 210 ) Tj ET Q q 0 0 0 rg BT 169.29 259.25 Td (W) Tj ET Q q 0 0 0 rg BT 177.93 259.25 Td (est 31st Street for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.69 259.25 Td ($48.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.58 259.25 Td ( plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.25 259.25 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.14 259.25 Td ( of closing costs. Since acquisition in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.25 Td (December 2016, the Company has capitalized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.82 247.25 Td ($6.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.71 247.25 Td ( related to a capital lease asset, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.21 247.25 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.10 247.25 Td ( in development costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 235.25 Td ($9.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.33 235.25 Td ( of other certain costs such as financing costs, real estate taxes and insurance costs that have been capitalized to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.25 Td (construction in progress. In addition, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.86 223.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.12 223.25 Td (, 210 ) Tj ET Q q 0 0 0 rg BT 323.44 223.25 Td (W) Tj ET Q q 0 0 0 rg BT 332.08 223.25 Td (est 31st Street had a capital lease liability with a carrying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.25 Td (value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.49 211.25 Td ($6.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.38 211.25 Td ( included in other liabilities.) 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 265.85 676.60 Td (September 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 (4. ) Tj ET Q q 0 0 0 rg BT 72.00 632.25 Td (TENANT) Tj ET Q q 0 0 0 rg BT 113.49 632.25 Td ( ORIGINA) Tj ET Q q 0 0 0 rg BT 160.26 632.25 Td (TION ) Tj ET Q q 0 0 0 rg BT 187.77 632.25 Td (AND ) Tj ET Q q 0 0 0 rg BT 211.38 632.25 Td (ABSORPTION COSTS, ) Tj ET Q q 0 0 0 rg BT 317.24 632.25 Td (ABOVE-MARKET) Tj ET Q q 0 0 0 rg BT 400.96 632.25 Td ( LEASE ) Tj ET Q q 0 0 0 rg BT 438.20 632.25 Td (ASSETS ) Tj ET Q q 0 0 0 rg BT 477.39 632.25 Td (AND ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 620.25 Td (BELOW) Tj ET Q q 0 0 0 rg BT 109.42 620.25 Td (-MARKET) Tj ET Q q 0 0 0 rg BT 157.57 620.25 Td ( LEASE LIABILITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 602.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 602.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 602.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.15 602.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.73 602.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 336.11 602.25 Td (s tenant origination and absorption costs, above-market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (lease assets and below-market lease liabilities \(excluding fully amortized assets and liabilities and accumulated amortization\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (were as follows \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 522.75 103.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 153.00 522.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.00 522.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 222.00 522.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 522.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 522.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 522.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 522.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 522.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 522.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 522.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 522.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 496.75 103.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 153.00 496.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.00 496.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 222.00 496.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 496.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 496.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 496.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 496.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 496.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 496.75 65.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 496.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 496.75 65.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 543.75 m 218 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218 543.75 m 222 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 222 543.75 m 287 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 543.75 m 356 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 543.75 m 360 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 543.75 m 425 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 543.75 m 494 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 543.75 m 498 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 543.75 m 563 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 543.75 m 218 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 522.75 m 218 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218 543.75 m 222 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 222 543.75 m 287 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 222 522.75 m 287 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 543.75 m 356 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 522.75 m 356 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 543.75 m 360 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 543.75 m 425 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 522.75 m 425 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 543.75 m 494 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 522.75 m 494 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 543.75 m 498 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 543.75 m 563 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 522.75 m 563 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 522.75 m 218 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 222 522.75 m 287 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 522.75 m 356 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 522.75 m 425 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 522.75 m 494 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 522.75 m 563 522.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 496.75 m 218 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 222 496.75 m 287 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 496.75 m 356 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 496.75 m 425 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 496.75 m 494 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 496.75 m 563 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 496.75 m 218 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 484.75 m 218 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 153 482.75 m 218 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 222 496.75 m 287 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 222 484.75 m 287 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 222 482.75 m 287 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 496.75 m 356 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 484.75 m 356 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 482.75 m 356 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 496.75 m 425 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 484.75 m 425 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 482.75 m 425 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 484.75 m 494 484.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 482.75 m 494 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 496.75 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 498 484.75 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 498 482.75 m 563 482.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 548.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 159.05 555.98 Td (T) Tj ET Q q 0 0 0 rg BT 163.65 555.98 Td (enant Origination and ) Tj ET Q q 0 0 0 rg BT 241.23 555.98 Td (Absorption ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 210.15 547.98 Td (Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 310.15 547.98 Td (Above-Market Lease ) Tj ET Q q 0 0 0 rg BT 383.47 547.98 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.95 547.98 Td (Below-Market Lease Liabilities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 527.00 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 160.60 534.98 Td (September) Tj ET Q q 0 0 0 rg BT 197.41 534.98 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 177.00 526.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 230.75 534.98 Td (December) Tj ET Q q 0 0 0 rg BT 265.32 534.98 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 246.00 526.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 298.60 534.98 Td (September) Tj ET Q q 0 0 0 rg BT 335.41 534.98 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 315.00 526.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 368.75 534.98 Td (December) Tj ET Q q 0 0 0 rg BT 403.32 534.98 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.00 526.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.60 534.98 Td (September) Tj ET Q q 0 0 0 rg BT 473.41 534.98 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 526.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.75 534.98 Td (December) Tj ET Q q 0 0 0 rg BT 541.25 534.98 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 526.98 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 514.00 Td (Cost) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 155.50 514.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 192.80 514.00 Td (17,728) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 224.50 514.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 261.80 514.00 Td (19,006) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 514.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 344.80 514.00 Td (99) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.50 514.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 514.00 Td (99) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 514.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.10 514.00 Td (\(1) Tj ET Q q 0 0 0 rg BT 472.76 514.00 Td (1,823) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.80 514.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 514.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 535.10 514.00 Td (\(12,869) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 514.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 501.00 Td (Accumulated ) Tj ET Q q 0 0 0 rg BT 96.71 501.00 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 194.10 501.00 Td (\(5,690) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 214.80 501.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.10 501.00 Td (\(3,473) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 283.80 501.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.10 501.00 Td (\(30) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.80 501.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.10 501.00 Td (\(16) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.80 501.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 501.00 Td (3,710) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 501.00 Td (2,086) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 488.00 Td (Net ) Tj ET Q q 0 0 0 rg BT 65.61 488.00 Td (Amount) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 155.50 488.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 192.80 488.00 Td (12,038) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 224.50 488.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 261.80 488.00 Td (15,533) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 488.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 344.80 488.00 Td (69) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.50 488.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 413.80 488.00 Td (83) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 488.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.10 488.00 Td (\(8,1) Tj ET Q q 0 0 0 rg BT 482.76 488.00 Td (13) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.80 488.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 488.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 535.10 488.00 Td (\(10,783) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 488.00 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 460.25 Td (Increases \(decreases\) in net income as a result of amortization of the Company’) Tj ET Q q 0 0 0 rg BT 391.16 460.25 Td (s tenant origination and absorption costs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 448.25 Td (above-market lease assets and below-market lease liabilities for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.34 448.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.32 448.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.76 448.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.98 448.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.80 448.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.07 448.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.50 448.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.50 448.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 436.25 Td (were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 367.75 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 134.00 367.75 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 202.00 367.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 206.00 367.75 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.00 367.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 278.00 367.75 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 367.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.00 367.75 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 367.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 367.75 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 367.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 367.75 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 134 401.75 m 202 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202 401.75 m 206 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206 401.75 m 274 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278 401.75 m 346 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 401.75 m 350 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 401.75 m 418 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 401.75 m 490 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 401.75 m 494 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 401.75 m 562 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 134 401.75 m 202 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 134 380.75 m 202 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202 401.75 m 206 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 202 380.75 m 206 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206 401.75 m 274 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206 380.75 m 274 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278 401.75 m 346 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278 380.75 m 346 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 401.75 m 350 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 380.75 m 350 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 401.75 m 418 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 380.75 m 418 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 401.75 m 490 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 380.75 m 490 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 401.75 m 494 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 380.75 m 494 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 401.75 m 562 401.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 380.75 m 562 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 134 380.75 m 202 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 134 367.75 m 202 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206 380.75 m 274 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206 367.75 m 274 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278 380.75 m 346 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278 367.75 m 346 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 380.75 m 350 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 380.75 m 418 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 367.75 m 418 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 380.75 m 490 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 367.75 m 490 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 380.75 m 494 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 380.75 m 562 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 367.75 m 562 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 134 367.75 m 202 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 134 355.75 m 202 355.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 134 353.75 m 202 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206 367.75 m 274 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206 355.75 m 274 355.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206 353.75 m 274 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278 367.75 m 346 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278 355.75 m 346 355.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 278 353.75 m 346 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 367.75 m 418 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 355.75 m 418 355.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 353.75 m 418 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 367.75 m 490 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 355.75 m 490 355.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 353.75 m 490 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 367.75 m 562 367.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 355.75 m 562 355.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 353.75 m 562 353.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 143.05 413.98 Td (T) Tj ET Q q 0 0 0 rg BT 148.02 413.98 Td (enant Origination and ) Tj ET Q q 0 0 0 rg BT 225.45 413.98 Td (Absorption) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 194.15 405.98 Td (Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 300.15 405.98 Td (Above-Market Lease ) Tj ET Q q 0 0 0 rg BT 373.69 405.98 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.95 405.98 Td (Below-Market Lease Liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 153.70 392.98 Td (For) Tj ET Q q 0 0 0 rg BT 166.07 392.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 180.58 392.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 193.78 392.98 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 179.10 384.98 Td (September) Tj ET Q q 0 0 0 rg BT 215.91 384.98 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.70 392.98 Td (For) Tj ET Q q 0 0 0 rg BT 310.07 392.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 324.58 392.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 337.78 392.98 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 323.10 384.98 Td (September) Tj ET Q q 0 0 0 rg BT 359.91 384.98 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.70 392.98 Td (For) Tj ET Q q 0 0 0 rg BT 454.07 392.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 468.58 392.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 481.78 392.98 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.10 384.98 Td (September) Tj ET Q q 0 0 0 rg BT 503.91 384.98 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 159.50 371.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 231.50 371.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 303.50 371.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.50 371.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.50 371.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.50 371.98 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 359.00 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 136.50 359.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 178.10 359.00 Td (\(1,1) Tj ET Q q 0 0 0 rg BT 190.76 359.00 Td (17) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 198.80 359.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.50 359.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 256.10 359.00 Td (\(865) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.80 359.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.50 359.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.10 359.00 Td (\(5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 342.80 359.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.50 359.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.10 359.00 Td (\(2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 414.80 359.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 424.50 359.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 474.80 359.00 Td (838) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 359.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.80 359.00 Td (647) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 277.75 85.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 135.00 277.75 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 203.00 277.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.00 277.75 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 277.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 277.75 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 277.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 351.00 277.75 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 277.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 277.75 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 277.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 277.75 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 135 311.75 m 203 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 203 311.75 m 207 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207 311.75 m 275 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 311.75 m 347 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 311.75 m 351 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 311.75 m 419 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 311.75 m 491 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 311.75 m 495 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 311.75 m 563 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 290.75 m 203 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 203 290.75 m 207 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207 290.75 m 275 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 311.75 m 347 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 290.75 m 347 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 311.75 m 351 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 290.75 m 351 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 311.75 m 419 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 290.75 m 419 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 311.75 m 491 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 290.75 m 491 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 311.75 m 495 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 290.75 m 495 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 311.75 m 563 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 290.75 m 563 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 290.75 m 203 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 277.75 m 203 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207 290.75 m 275 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207 277.75 m 275 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 290.75 m 347 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 277.75 m 347 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 290.75 m 351 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 290.75 m 419 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 277.75 m 419 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 290.75 m 491 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 277.75 m 491 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 290.75 m 495 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 290.75 m 563 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 277.75 m 563 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 265.75 m 203 265.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 263.75 m 203 263.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207 265.75 m 275 265.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207 263.75 m 275 263.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 265.75 m 347 265.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 263.75 m 347 263.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 265.75 m 419 265.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 263.75 m 419 263.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 265.75 m 491 265.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 263.75 m 491 263.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 265.75 m 563 265.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 263.75 m 563 263.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 144.05 323.98 Td (T) Tj ET Q q 0 0 0 rg BT 149.02 323.98 Td (enant Origination and ) Tj ET Q q 0 0 0 rg BT 226.45 323.98 Td (Absorption) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 195.15 315.98 Td (Costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 301.15 315.98 Td (Above-Market Lease ) Tj ET Q q 0 0 0 rg BT 374.69 315.98 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.95 315.98 Td (Below-Market Lease Liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 156.75 302.98 Td (For) Tj ET Q q 0 0 0 rg BT 169.12 302.98 Td ( the Nine Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 180.10 294.98 Td (September) Tj ET Q q 0 0 0 rg BT 216.91 294.98 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 300.75 302.98 Td (For) Tj ET Q q 0 0 0 rg BT 313.12 302.98 Td ( the Nine Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 324.10 294.98 Td (September) Tj ET Q q 0 0 0 rg BT 360.91 294.98 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.75 302.98 Td (For) Tj ET Q q 0 0 0 rg BT 457.12 302.98 Td ( the Nine Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.10 294.98 Td (September) Tj ET Q q 0 0 0 rg BT 504.91 294.98 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 160.50 281.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 232.50 281.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 304.50 281.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.50 281.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.50 281.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 281.98 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 269.00 Td (Amortization) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 137.50 269.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 179.10 269.00 Td (\(3,495) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 199.80 269.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 209.50 269.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 251.10 269.00 Td (\(2,578) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 271.80 269.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 281.50 269.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 333.10 269.00 Td (\(14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 343.80 269.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.50 269.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.10 269.00 Td (\(5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.80 269.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 425.50 269.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 269.00 Td (2,670) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.50 269.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 269.00 Td (979) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 241.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 241.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.21 241.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.65 241.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.23 241.25 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 49.50 229.25 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 484.36 229.25 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.25 229.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.25 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 240.29 217.25 Td (31.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.79 217.25 Td ( years. During each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.58 217.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.56 217.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.39 217.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 217.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 205.25 Td (, the Company recorded amortization expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.65 205.25 Td ($20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 205.25 Td ( related to the housing subsidy intangible asset. During each of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.25 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 193.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.43 193.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.26 193.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.52 193.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.96 193.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.96 193.25 Td (, the Company recorded amortization expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.11 193.25 Td ($60,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.61 193.25 Td ( related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.25 Td (housing subsidy intangible asset.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 163.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 123.40 163.25 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.06 163.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.33 163.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.76 163.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.35 163.25 Td (, the Company had recorded property tax abatement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.25 Td (intangible assets, net of amortization, which are included in prepaid expenses and other assets in the accompanying balance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.25 Td (sheets, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.77 139.25 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.66 139.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.10 139.25 Td ($2.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.99 139.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 259.65 139.25 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 503.45 139.25 Td (0.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.95 139.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.73 139.25 Td (6.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.23 139.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.25 Td (years. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.15 127.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.13 127.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.57 127.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.79 127.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.61 127.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.88 127.25 Td (, the Company recorded amortization expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.03 127.25 Td ($0.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 115.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 115.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.72 115.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 199.38 115.25 Td (, related to the property tax abatement intangible assets.) 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 265.85 676.60 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 661.60 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (5. ) Tj ET Q q 0 0 0 rg BT 72.00 632.25 Td (REAL) Tj ET Q q 0 0 0 rg BT 99.23 632.25 Td ( EST) Tj ET Q q 0 0 0 rg BT 119.89 632.25 Td (A) Tj ET Q q 0 0 0 rg BT 126.37 632.25 Td (TE LOAN RECEIV) Tj ET Q q 0 0 0 rg BT 211.21 632.25 Td (ABLE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 614.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.03 614.25 Td (, the Company had originated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.11 614.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.55 614.25 Td ( real estate loan receivable. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.32 614.25 Td (January 12, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.92 614.25 Td (, the real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 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 50.00 562.75 90.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 140.00 562.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 144.00 562.75 34.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 178.00 562.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 182.00 562.75 29.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.00 562.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 215.00 562.75 30.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 245.00 562.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.00 562.75 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.00 562.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.00 562.75 63.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 562.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 562.75 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 562.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 562.75 37.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 562.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 562.75 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 530.00 562.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 534.00 562.75 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 50 562.75 m 140 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 144 562.75 m 178 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182 562.75 m 211 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 215 562.75 m 245 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 562.75 m 313 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 562.75 m 380 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 562.75 m 445 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 562.75 m 486 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 562.75 m 530 562.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 534 562.75 m 564 562.75 l s BT /F2 6.00 Tf ET q 0 0 0 rg BT 52.50 578.59 Td (Loan Name ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 61.50 572.59 Td (Location of Related Pr) Tj ET Q q 0 0 0 rg BT 119.55 572.59 Td (operty ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 61.50 566.59 Td (or) Tj ET Q q 0 0 0 rg BT 67.05 566.59 Td ( Collateral) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 154.50 572.59 Td (Date) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 146.50 566.59 Td (Originated) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 184.55 572.59 Td (Pr) Tj ET Q q 0 0 0 rg BT 190.82 572.59 Td (operty) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 189.70 566.59 Td (T) Tj ET Q q 0 0 0 rg BT 193.48 566.59 Td (ype) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 222.80 572.59 Td (Loan) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 223.20 566.59 Td (T) Tj ET Q q 0 0 0 rg BT 226.98 566.59 Td (ype) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 251.90 578.59 Td (Outstanding Principal ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 263.65 572.59 Td (Balance as of) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 255.45 566.59 Td (September) Tj ET Q q 0 0 0 rg BT 283.00 566.59 Td ( 30, 2018) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 326.70 572.59 Td (Book ) Tj ET Q q 0 0 0 rg BT 341.43 572.59 Td (V) Tj ET Q q 0 0 0 rg BT 345.21 572.59 Td (alue as of ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 319.95 566.59 Td (September) Tj ET Q q 0 0 0 rg BT 347.50 566.59 Td ( 30, 2018 ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 371.50 569.31 Td (\(1\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 392.70 572.59 Td (Book ) Tj ET Q q 0 0 0 rg BT 407.43 572.59 Td (V) Tj ET Q q 0 0 0 rg BT 411.21 572.59 Td (alue as of ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 386.75 566.59 Td (December) Tj ET Q q 0 0 0 rg BT 412.63 566.59 Td ( 31, 2017 ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 436.63 569.31 Td (\(1\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 451.50 578.59 Td (Contractual) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 457.05 572.59 Td (Inter) Tj ET Q q 0 0 0 rg BT 469.99 572.59 Td (est) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 461.00 566.59 Td (Rate) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 494.80 578.59 Td (Annualized) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 498.15 572.59 Td (Effective) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 492.80 566.59 Td (Inter) Tj ET Q q 0 0 0 rg BT 505.74 566.59 Td (est Rate) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 536.80 572.59 Td (Maturity) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 542.50 566.59 Td (Date) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 52.50 552.59 Td (655 Summer Street First Mortgage) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 58.50 538.59 Td (Boston, Massachusetts) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 147.15 538.59 Td (09/04/2014) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 188.35 538.59 Td (Of) Tj ET Q q 0 0 0 rg BT 194.57 538.59 Td (fice) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 217.80 538.59 Td (Mortgage) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 251.50 538.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 304.50 538.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 319.50 538.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 371.50 538.59 Td (—) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 386.50 538.59 Td ($) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 429.00 538.59 Td (3,500) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 459.25 538.59 Td (9.25%) Tj ET Q BT /F1 3.90 Tf ET q 0 0 0 rg BT 507.20 541.63 Td (\(2\)) Tj ET Q BT /F1 3.90 Tf ET q 0 0 0 rg BT 546.20 541.63 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 514.27 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 510.65 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 49.50 501.05 Td (acquisition costs. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 492.07 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 488.45 Td (On ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 68.64 488.45 Td (January 12, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 123.52 488.45 Td (, the real estate loan receivable was repaid in full.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 464.45 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 418.52 464.45 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.74 464.45 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.57 464.45 Td (September 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.45 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 452.45 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 435.95 438.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 435.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 435.95 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 407.95 438.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 407.95 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 407.95 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 492 407.95 m 563 407.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 394.95 m 563 394.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 392.95 m 563 392.95 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 426.41 Td (Real estate loan receivable -) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 153.94 426.41 Td ( December 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.50 426.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.25 426.41 Td (3,500) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 412.41 Td (Principal repayment) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 536.25 412.41 Td (\(3,500) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 412.41 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 398.41 Td (Real estate loan receivable -) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 153.94 398.41 Td ( September 30, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.50 398.41 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 398.41 Td (—) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 370.45 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.11 370.45 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.09 370.45 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.53 370.45 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.75 370.45 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.57 370.45 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.84 370.45 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.28 370.45 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.28 370.45 Td (, interest income from the real estate loan receivable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.45 Td (consisted of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 310.95 209.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 310.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.00 310.95 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 310.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 310.95 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 310.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 310.95 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 310.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 310.95 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 280.95 209.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 280.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.00 280.95 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 280.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 280.95 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 280.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 280.95 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 280.95 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 280.95 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 263 325.95000000000005 m 335 325.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 325.95000000000005 m 339 325.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 325.95000000000005 m 411 325.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 325.95000000000005 m 487 325.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 325.95000000000005 m 491 325.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 325.95000000000005 m 563 325.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 310.95000000000005 m 335 310.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 310.95000000000005 m 411 310.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 310.95000000000005 m 487 310.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 310.95000000000005 m 563 310.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 310.95000000000005 m 335 310.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 310.95000000000005 m 411 310.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 310.95000000000005 m 487 310.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 310.95000000000005 m 563 310.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 280.95000000000005 m 335 280.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 280.95000000000005 m 411 280.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 280.95000000000005 m 487 280.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 280.95000000000005 m 563 280.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 266.95000000000005 m 335 266.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 264.95000000000005 m 335 264.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 266.95000000000005 m 411 266.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 264.95000000000005 m 411 264.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 266.95000000000005 m 487 266.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 264.95000000000005 m 487 264.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 266.95000000000005 m 563 266.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 264.95000000000005 m 563 264.95000000000005 l s BT /F2 8.50 Tf ET q 0 0 0 rg BT 283.60 338.79 Td (For) Tj ET Q q 0 0 0 rg BT 296.74 338.79 Td ( the ) Tj ET Q q 0 0 0 rg BT 312.17 338.79 Td (Thr) Tj ET Q q 0 0 0 rg BT 326.18 338.79 Td (ee Months Ended) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 310.60 330.29 Td (September) Tj ET Q q 0 0 0 rg BT 349.71 330.29 Td ( 30,) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 437.80 338.79 Td (For) Tj ET Q q 0 0 0 rg BT 450.94 338.79 Td ( the Nine Months Ended) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 462.60 330.29 Td (September) Tj ET Q q 0 0 0 rg BT 501.71 330.29 Td ( 30,) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 290.00 315.29 Td (2018) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 366.00 315.29 Td (2017) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 442.00 315.29 Td (2018) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 518.00 315.29 Td (2017) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 300.31 Td (Contractual interest income) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.50 300.31 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 323.15 300.31 Td (—) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 341.50 300.31 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 399.15 300.31 Td (83) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 417.50 300.31 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 475.15 300.31 Td (10) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 493.50 300.31 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 546.90 300.31 Td (245) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 285.31 Td (Amortization of closing costs and origination fees, net) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 323.15 285.31 Td (—) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 399.15 285.31 Td (20) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 475.15 285.31 Td (—) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 551.15 285.31 Td (58) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 52.50 270.31 Td (Interest income from real estate loan receivable) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 265.50 270.31 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 323.15 270.31 Td (—) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 341.50 270.31 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 394.90 270.31 Td (103) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 417.50 270.31 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 475.15 270.31 Td (10) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 493.50 270.31 Td ($) Tj ET Q BT /F1 8.50 Tf ET q 0 0 0 rg BT 546.90 270.31 Td (303) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 242.45 Td (6. ) Tj ET Q q 0 0 0 rg BT 72.00 242.45 Td (REAL) Tj ET Q q 0 0 0 rg BT 99.23 242.45 Td ( EST) Tj ET Q q 0 0 0 rg BT 119.89 242.45 Td (A) Tj ET Q q 0 0 0 rg BT 126.37 242.45 Td (TE EQUITY) Tj ET Q q 0 0 0 rg BT 181.29 242.45 Td ( SECURITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 224.45 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 224.45 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.76 224.45 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.59 224.45 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.85 224.45 Td (, the Company purchased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.99 224.45 Td (852,797) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.49 224.45 Td ( shares of common stock of Franklin ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.45 Td (Street Properties Corp. \(NYSE ) Tj ET Q q 0 0 0 rg BT 175.13 212.45 Td (T) Tj ET Q q 0 0 0 rg BT 180.89 212.45 Td (icker: FSP\) for an aggregate purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.48 212.45 Td ($7.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.38 212.45 Td (. ) Tj ET Q q 0 0 0 rg BT 421.19 212.45 Td (The Company’) Tj ET Q q 0 0 0 rg BT 480.91 212.45 Td (s real estate equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.45 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 430.63 200.45 Td (. ) Tj ET Q q 0 0 0 rg BT 435.45 200.45 Td (T) Tj ET Q q 0 0 0 rg BT 441.20 200.45 Td (ransaction costs that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.45 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 49.50 176.45 Td (on real estate equity securities are recognized in earnings.) 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 265.85 676.60 Td (September 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 72.00 632.10 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 408.27 632.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.49 632.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.31 632.10 Td (September 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 620.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 590.60 245.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.00 590.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 590.60 84.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 590.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 590.60 86.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 590.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 590.60 83.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 564.60 245.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.00 564.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 564.60 84.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 564.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 564.60 86.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 564.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 564.60 83.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 538.60 245.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.00 538.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 538.60 84.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 538.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 387.00 538.60 86.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 538.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 538.60 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 299 590.6 m 383 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387 590.6 m 473 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 590.6 m 560 590.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387 538.6 m 473 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 538.6 m 383 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 526.6 m 383 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 524.6 m 383 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387 538.6 m 473 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387 526.6 m 473 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387 524.6 m 473 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 538.6 m 560 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 526.6 m 560 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 524.6 m 560 524.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 303.60 594.83 Td (Amortized Cost Basis) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.10 594.83 Td (Unr) Tj ET Q q 0 0 0 rg BT 415.73 594.83 Td (ealized Loss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.25 594.83 Td (T) Tj ET Q q 0 0 0 rg BT 513.85 594.83 Td (otal) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 581.85 Td (Real estate equity securities - ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 148.24 581.85 Td (December 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.50 581.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.80 581.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.50 581.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 461.80 581.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.50 581.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.80 581.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 568.85 Td (Acquisition of real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.80 568.85 Td (6,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 461.80 568.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.80 568.85 Td (6,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 555.85 Td (Acquisition fee to af) Tj ET Q q 0 0 0 rg BT 117.89 555.85 Td (filiate and purchase commission) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 555.85 Td (186) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 461.80 555.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.80 555.85 Td (186) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 542.85 Td (Loss) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 67.61 542.85 Td ( on real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.80 542.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.10 542.85 Td (\(172) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 542.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 542.10 542.85 Td (\(172) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 556.80 542.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 529.85 Td (Real estate equity securities -) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 146.24 529.85 Td ( September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.50 529.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.80 529.85 Td (6,986) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.50 529.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.10 529.85 Td (\(172) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 529.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.50 529.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 538.80 529.85 Td (6,814) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 502.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 502.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 502.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 502.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.19 502.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.01 502.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.28 502.10 Td (, the Company recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.74 502.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.63 502.10 Td ( of dividend income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (from real estate equity securities.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (7. ) Tj ET Q q 0 0 0 rg BT 72.00 466.10 Td (INVESTMENT) Tj ET Q q 0 0 0 rg BT 139.06 466.10 Td ( IN UNCONSOLIDA) Tj ET Q q 0 0 0 rg BT 229.44 466.10 Td (TED ENTITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 448.10 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 433.20 448.10 Td (€2.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.09 448.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.92 448.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.81 448.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 436.10 Td (closing\). ) Tj ET Q q 0 0 0 rg BT 86.54 436.10 Td (The Company funded approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.50 436.10 Td (€2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.39 436.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.22 436.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.11 436.10 Td ( at closing\). ) Tj ET Q q 0 0 0 rg BT 389.36 436.10 Td (The proceeds were used by ST) Tj ET Q q 0 0 0 rg BT 511.58 436.10 Td (AM to fund ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 424.10 Td (a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.44 424.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.77 424.10 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 546.38 424.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 412.10 Td (total acquisition cost of the portfolio was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.12 412.10 Td (€95.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.01 412.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.84 412.10 Td ($105.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.73 412.10 Td ( at closing\). Under the terms of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 400.10 Td (participating loan facility) Tj ET Q q 0 0 0 rg BT 149.92 400.10 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 49.50 388.10 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 49.50 376.10 Td (joint venture. ) Tj ET Q q 0 0 0 rg BT 107.27 376.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 156.60 376.10 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 49.50 364.10 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 345.53 364.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.42 364.10 Td ( of acquisition costs and fees. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 352.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.92 352.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.14 352.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.97 352.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.23 352.10 Td (, the Company recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.70 352.10 Td ($94,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.20 352.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.63 352.10 Td ($225,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.13 352.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 496.79 352.10 Td (, of income with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (respect to this investment. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.97 340.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.96 340.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.39 340.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.61 340.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.44 340.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.70 340.10 Td (, the Company recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.17 340.10 Td ($14,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.67 340.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.10 Td ($40,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 328.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 134.66 328.10 Td (, of income with respect to this investment.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 304.10 Td (8. ) Tj ET Q q 0 0 0 rg BT 72.00 304.10 Td (NOTES P) Tj ET Q q 0 0 0 rg BT 113.77 304.10 Td (A) Tj ET Q q 0 0 0 rg BT 120.07 304.10 Td (Y) Tj ET Q q 0 0 0 rg BT 126.38 304.10 Td (ABLE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 286.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 286.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.21 286.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.65 286.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.23 286.10 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 337.61 286.10 Td (s notes payable consisted of the following \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 238.60 134.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 238.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 238.60 69.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.00 238.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 238.60 70.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 238.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 238.60 75.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 238.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 238.60 60.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 238.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 238.60 40.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 238.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 238.60 41.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 200.60 134.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 200.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 200.60 69.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.00 200.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 200.60 70.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 200.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 200.60 75.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 200.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 200.60 60.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 200.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 200.60 40.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 200.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 200.60 41.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 162.60 134.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 162.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 162.60 69.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.00 162.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 162.60 70.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 162.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 162.60 75.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 162.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 162.60 60.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 162.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 162.60 40.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 162.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 162.60 41.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 124.60 134.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 124.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 124.60 69.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.00 124.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 124.60 70.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 124.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 124.60 75.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 124.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 124.60 60.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 124.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 124.60 40.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 124.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 124.60 41.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 86.60 134.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 86.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 86.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.00 86.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 86.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 86.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 86.60 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 86.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 86.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 86.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 86.60 40.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 86.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 86.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 60.60 134.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.00 60.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 188.00 60.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.00 60.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.00 60.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.00 60.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 60.60 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 60.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 60.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 60.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.00 60.60 40.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 518.00 60.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.00 60.60 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 188 238.60000000000002 m 257 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 238.60000000000002 m 331 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 238.60000000000002 m 410 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 238.60000000000002 m 474 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 238.60000000000002 m 518 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 238.60000000000002 m 563 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 238.60000000000002 m 257 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 238.60000000000002 m 331 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 238.60000000000002 m 410 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 238.60000000000002 m 474 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 238.60000000000002 m 518 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 238.60000000000002 m 563 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 86.60000000000002 m 257 86.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 86.60000000000002 m 331 86.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 86.60000000000002 m 257 86.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 86.60000000000002 m 331 86.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 60.60000000000002 m 257 60.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 48.60000000000002 m 257 48.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 188 46.60000000000002 m 257 46.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 60.60000000000002 m 331 60.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 48.60000000000002 m 331 48.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 46.60000000000002 m 331 46.60000000000002 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 197.20 249.66 Td (Book ) Tj ET Q q 0 0 0 rg BT 214.39 249.66 Td (V) Tj ET Q q 0 0 0 rg BT 218.80 249.66 Td (alue as of ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 192.80 242.66 Td (September) Tj ET Q q 0 0 0 rg BT 224.94 242.66 Td ( 30, 2018) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 270.70 249.66 Td (Book ) Tj ET Q q 0 0 0 rg BT 287.89 249.66 Td (V) Tj ET Q q 0 0 0 rg BT 292.30 249.66 Td (alue as of ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 267.25 242.66 Td (December) Tj ET Q q 0 0 0 rg BT 297.44 242.66 Td ( 31, 2017) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 341.40 249.66 Td (Contractual Inter) Tj ET Q q 0 0 0 rg BT 394.35 249.66 Td (est ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 361.45 242.66 Td (Rate ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 377.19 245.83 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 417.80 249.66 Td (Effective Inter) Tj ET Q q 0 0 0 rg BT 461.01 249.66 Td (est ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 432.95 242.66 Td (Rate ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 448.69 245.83 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 484.25 249.66 Td (Payment) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 490.15 242.66 Td (T) Tj ET Q q 0 0 0 rg BT 494.56 242.66 Td (ype) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 528.35 249.66 Td (Maturity) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 535.00 242.66 Td (Date) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 223.65 Td (Springmaid Beach Resort Mortgage Loan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 190.50 223.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 234.90 223.65 Td (37,460) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 263.50 223.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.90 223.65 Td (38,000) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 230.65 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.95 223.65 Td (3.00%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 223.65 Td (5.1) Tj ET Q q 0 0 0 rg BT 443.20 223.65 Td (1%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.25 230.65 Td (Principal &) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 223.65 Td (Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 223.65 Td (12/30/2018) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 204.65 Td (Q&C Hotel Mortgage Loan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 234.90 204.65 Td (23,716) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.90 204.65 Td (28,330) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 211.65 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.95 204.65 Td (3.25%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 204.65 Td (5.36%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 481.25 211.65 Td (Principal &) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 204.65 Td (Interest) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 204.65 Td (12/17/2018) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 185.65 Td (2200 Paseo ) Tj ET Q q 0 0 0 rg BT 86.20 185.65 Td (V) Tj ET Q q 0 0 0 rg BT 90.48 185.65 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 149.38 188.82 Td (\(2\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 238.40 185.65 Td (7,947) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 312.40 185.65 Td (7,947) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 192.65 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.95 185.65 Td (2.25%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 185.65 Td (4.36%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 192.65 Td (Interest ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.95 185.65 Td (Only ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 502.70 188.82 Td (\(2\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 185.65 Td (07/01/2020) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 166.65 Td (Lincoln Court Mortgage Loan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 234.90 166.65 Td (33,500) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.90 166.65 Td (33,500) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 173.65 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.95 166.65 Td (1.75%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 166.65 Td (3.85%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 173.65 Td (Interest ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 490.50 166.65 Td (Only) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 166.65 Td (06/01/2020) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 147.65 Td (Lofts at NoHo Commons Mortgage Loan) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 234.90 147.65 Td (72,100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.90 147.65 Td (72,100) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 154.65 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.95 147.65 Td (2.66%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 147.65 Td (4.77%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 154.65 Td (Interest ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 490.50 147.65 Td (Only) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 147.65 Td (12/01/2019) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 128.65 Td (210 ) Tj ET Q q 0 0 0 rg BT 64.62 128.65 Td (W) Tj ET Q q 0 0 0 rg BT 70.67 128.65 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 156.79 131.82 Td (\(3\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 234.90 128.65 Td (37,821) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.90 128.65 Td (35,763) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 135.65 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.95 128.65 Td (5.50%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 128.65 Td (7.60%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 135.65 Td (Interest ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 490.50 128.65 Td (Only) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 128.65 Td (12/01/2019) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 109.65 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 157.28 112.82 Td (\(4\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 234.90 109.65 Td (94,500) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.90 109.65 Td (94,500) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 116.65 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.95 109.65 Td (1.75%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 109.65 Td (3.85%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 116.65 Td (Interest ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 486.95 109.65 Td (Only ) Tj ET Q BT /F1 7.00 Tf ET BT /F1 4.55 Tf ET q 0 0 0 rg BT 502.70 112.82 Td (\(4\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 109.65 Td (09/01/2022) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 90.65 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 93.82 Td (\(5\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 234.90 90.65 Td (21,895) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 308.90 90.65 Td (21,895) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 341.80 97.65 Td (One-month LIBOR + ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 359.40 90.65 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 93.82 Td (\(5\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 434.45 90.65 Td (6.1) Tj ET Q q 0 0 0 rg BT 443.20 90.65 Td (1%) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 487.00 97.65 Td (Interest ) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 490.50 90.65 Td (Only) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 527.60 90.65 Td (10/09/2020) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 77.65 Td (T) Tj ET Q q 0 0 0 rg BT 56.29 77.65 Td (otal notes payable principal outstanding) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 231.40 77.65 Td (328,939) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 305.40 77.65 Td (332,035) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 64.65 Td ( Deferred financing costs, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 236.05 64.65 Td (\(2,530) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 254.15 64.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 310.05 64.70 Td (\(3,684) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 328.15 64.65 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 52.50 51.65 Td (T) Tj ET Q q 0 0 0 rg BT 56.29 51.65 Td (otal notes payable, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 190.50 51.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 231.40 51.65 Td (326,409) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 263.50 51.65 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 305.40 51.65 Td (328,351) Tj ET Q BT /F1 10.00 Tf ET 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 265.85 676.60 Td (September 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 /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 55.56 619.50 Td ( Contractual interest rate represents the interest rate in ef) Tj ET Q q 0 0 0 rg BT 236.45 619.50 Td (fect under the loan as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 315.53 619.50 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 379.74 619.50 Td (. Ef) Tj ET Q q 0 0 0 rg BT 393.14 619.50 Td (fective interest rate is calculated as the actual ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 609.90 Td (interest rate in ef) Tj ET Q q 0 0 0 rg BT 103.33 609.90 Td (fect as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 134.64 609.90 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 198.86 609.90 Td ( \(consisting of the contractual interest rate, contractual floor rates and the ef) Tj ET Q q 0 0 0 rg BT 441.05 609.90 Td (fects of interest rate caps, if ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 600.30 Td (applicable\), using interest rate indices at ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 180.34 600.30 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.55 600.30 Td (, where applicable. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 591.33 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 587.70 Td ( ) Tj ET Q q 0 0 0 rg BT 57.12 587.70 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.68 587.70 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 140.89 587.70 Td (, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 144.89 587.70 Td ($7.9 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 184.00 587.70 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 334.20 587.70 Td ($1.6 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.31 587.70 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 49.50 578.10 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 49.50 568.50 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 303.68 568.50 Td ($10,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.68 568.50 Td ( per month.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 559.52 Td (\(3\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 555.90 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.42 555.90 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 140.63 555.90 Td (, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 144.63 555.90 Td ($37.8 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 187.74 555.90 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 337.94 555.90 Td ($9.3 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.05 555.90 Td ( is available for future disbursements to be used for ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 546.30 Td (capital improvement costs, tenant improvement costs, leasing commissions and operating/interest shortfall, subject to certain terms and conditions contained in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 536.70 Td (the loan documents.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 527.73 Td (\(4\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 524.10 Td ( ) Tj ET Q q 0 0 0 rg BT 58.42 524.10 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 77.98 524.10 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 142.19 524.10 Td (, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 146.19 524.10 Td ($94.5 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 189.30 524.10 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 339.50 524.10 Td ($8.9 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 378.61 524.10 Td ( is available for future disbursements to be used for ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 514.50 Td (tenant 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 49.50 504.90 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 279.66 504.90 Td ($1) Tj ET Q q 0 0 0 rg BT 287.37 504.90 Td (10,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.37 504.90 Td ( or) Tj ET Q q 0 0 0 rg BT 317.71 504.90 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 49.50 495.30 Td (principal payments calculated using an amortization schedule of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 256.98 495.30 Td (30) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 264.98 495.30 Td ( years and an annual interest rate of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.49 495.30 Td (6.0%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.15 495.30 Td (, subject to certain terms and conditions contained ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 485.70 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 49.50 476.73 Td (\(5\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 473.10 Td ( ) Tj ET Q q 0 0 0 rg BT 57.12 473.10 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.68 473.10 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 140.89 473.10 Td (, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 144.89 473.10 Td ($21.9 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 188.00 473.10 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 338.20 473.10 Td ($12.2 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.31 473.10 Td ( is available for future disbursements to be used for ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 463.50 Td (tenant improvements and leasing expenses, subject to certain terms and conditions contained in the loan documents. ) Tj ET Q q 0 0 0 rg BT 422.59 463.50 Td (The Madison Square Mortgage Loan bears ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 453.90 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 428.52 453.90 Td (5.05%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.19 453.90 Td (. ) Tj ET Q q 0 0 0 rg BT 453.04 453.90 Td (The property securing this ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 444.30 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 436.73 444.30 Td (s re-branding strategy of the property) Tj ET Q q 0 0 0 rg BT 555.50 444.30 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 420.30 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 420.30 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 420.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 420.30 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.19 420.30 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.01 420.30 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.28 420.30 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.20 420.30 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.09 420.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.53 420.30 Td ($9.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.42 420.30 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 408.30 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 408.30 Td (, of interest expense. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.68 408.30 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.66 408.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.10 408.30 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.32 408.30 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.14 408.30 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.41 408.30 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.33 408.30 Td ($2.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.30 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 396.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 396.30 Td ($5.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.72 396.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 199.38 396.30 Td (, of interest expense. Included in interest expense was: \(i\) the amortization of deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 384.30 Td (financing costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.09 384.30 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.99 384.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.42 384.30 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.32 384.30 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.69 384.30 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.68 384.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.12 384.30 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.33 384.30 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.16 384.30 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.42 384.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 522.08 384.30 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.02 384.30 Td ($0.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 372.30 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 372.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 372.30 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.72 372.30 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.10 372.30 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.08 372.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.52 372.30 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.74 372.30 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.56 372.30 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.83 372.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 428.49 372.30 Td (, \(ii\) the capitalization of interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 360.30 Td (to construction in progress related to its redevelopment project at 210 ) Tj ET Q q 0 0 0 rg BT 329.52 360.30 Td (W) Tj ET Q q 0 0 0 rg BT 338.16 360.30 Td (est 31st Street of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.59 360.30 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.48 360.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.92 360.30 Td ($3.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.81 360.30 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 348.30 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.49 348.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.92 348.30 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.14 348.30 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.97 348.30 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.23 348.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 299.89 348.30 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.83 348.30 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.72 348.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.16 348.30 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.05 348.30 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.43 348.30 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.41 348.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.85 348.30 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.07 348.30 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 336.30 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 336.30 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.14 336.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 208.80 336.30 Td (, and \(iii\) an unrealized gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.86 336.30 Td ($1,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.36 336.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.80 336.30 Td ($1) Tj ET Q q 0 0 0 rg BT 391.43 336.30 Td (1,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.93 336.30 Td ( on interest rate cap agreements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.30 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 324.30 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.20 324.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.64 324.30 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.86 324.30 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.68 324.30 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.95 324.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 314.61 324.30 Td (, and unrealized losses related to interest rate cap agreements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.30 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 312.30 Td ($12,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 312.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.27 312.30 Td ($84,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.77 312.30 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.15 312.30 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.13 312.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.57 312.30 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.79 312.30 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.61 312.30 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.88 312.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 426.54 312.30 Td (. ) Tj ET Q q 0 0 0 rg BT 430.98 312.30 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.43 312.30 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.69 312.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.30 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 300.30 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 189.47 300.30 Td (s interest payable was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.44 300.30 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.33 300.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.77 300.30 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.66 300.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 449.32 300.30 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 282.30 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 49.50 270.30 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 270.30 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.59 270.30 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 256.80 408.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 256.80 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 256.80 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 230.80 408.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 230.80 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 230.80 100.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 204.80 408.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 204.80 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.00 204.80 100.00 -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 462 191.79999999999995 m 562 191.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 179.79999999999995 m 562 179.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 177.79999999999995 m 562 177.79999999999995 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 248.05 Td (October 1, 2018 through December 31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.50 248.05 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.80 248.05 Td (61,176) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 235.05 Td (2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.80 235.05 Td (109,971) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 222.05 Td (2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.80 222.05 Td (63,622) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 209.05 Td (2021) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.80 209.05 Td (1,320) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 196.05 Td (2022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.80 196.05 Td (92,850) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.50 183.05 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.80 183.05 Td (328,939) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 155.30 Td (The Company’) Tj ET Q q 0 0 0 rg BT 133.21 155.30 Td (s notes payable contain financial and non-financial debt covenants. ) Tj ET Q q 0 0 0 rg BT 403.12 155.30 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.56 155.30 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.83 155.30 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.30 Td (Company was in compliance with all debt covenants, except that the borrower under the Madison Square Mortgage Loan was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.30 Td (out of debt service coverage compliance. Such non-compliance does not constitute an event of default under the loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.30 Td (agreement. ) Tj ET Q q 0 0 0 rg BT 95.59 119.30 Td (As a result of such non-compliance, the Company is required to maintain an interest shortfall reserve.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 101.30 Td (The Company’) Tj ET Q q 0 0 0 rg BT 133.21 101.30 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 89.30 Td (maintain a minimum working capital reserve in an amount suf) Tj ET Q q 0 0 0 rg BT 298.42 89.30 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 77.30 Td (Springmaid Beach Resort through the of) Tj ET Q q 0 0 0 rg BT 211.23 77.30 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 65.30 Td (reserved by the third-party hotel operator) Tj ET Q q 0 0 0 rg BT 213.61 65.30 Td (. ) Tj ET Q q 0 0 0 rg BT 218.43 65.30 Td (The working capital reserve was included in restricted cash on the accompanying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.30 Td (consolidated balance sheets.) 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 265.85 676.60 Td (September 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 /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (9. ) Tj ET Q q 0 0 0 rg BT 72.00 632.25 Td (DERIV) Tj ET Q q 0 0 0 rg BT 102.94 632.25 Td (A) Tj ET Q q 0 0 0 rg BT 109.42 632.25 Td (TIVE INSTRUMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 614.25 Td (The Company enters into derivative instruments for risk management purposes to hedge its exposure to cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (variability caused by changing interest rates. ) Tj ET Q q 0 0 0 rg BT 232.59 602.25 Td (The primary goal of the Company’) Tj ET Q q 0 0 0 rg BT 371.72 602.25 Td (s risk management practices related to interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (rate risk is to prevent changes in interest rates from adversely impacting the Company’) Tj ET Q q 0 0 0 rg BT 396.34 590.25 Td (s ability to achieve its investment return ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (objectives. ) Tj ET Q q 0 0 0 rg BT 97.36 578.25 Td (The Company does not enter into the derivatives for speculative purposes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 560.25 Td (The Company enters into interest rate 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 49.50 548.25 Td (payable. ) Tj ET Q q 0 0 0 rg BT 85.41 548.25 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 49.50 536.25 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 49.50 524.25 Td (the value of interest rate caps. ) Tj ET Q q 0 0 0 rg BT 170.84 524.25 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 49.50 512.25 Td (decrease towards zero.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 494.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 494.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.21 494.25 Td (, the Company had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.25 494.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.91 494.25 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 49.50 482.25 Td (instruments. ) Tj ET Q q 0 0 0 rg BT 100.98 482.25 Td (The following table summarizes the notional amount and other information related to the Company’) Tj ET Q q 0 0 0 rg BT 501.16 482.25 Td (s derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (instruments as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.33 470.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.59 470.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.03 470.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.61 470.25 Td (. ) Tj ET Q q 0 0 0 rg BT 305.93 470.25 Td (The notional amount is an indication of the extent of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (Company’) Tj ET Q q 0 0 0 rg BT 91.17 458.25 Td (s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (\(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 398.75 69.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 119.00 398.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 123.00 398.75 50.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 173.00 398.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 398.75 50.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 398.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 398.75 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 398.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 398.75 75.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 398.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 398.75 64.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 398.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 398.75 64.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 398.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 398.75 68.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 356.75 69.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 119.00 356.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 123.00 356.75 50.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 173.00 356.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 356.75 50.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 356.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 356.75 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 356.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 356.75 75.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 356.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 356.75 64.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 356.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 356.75 64.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 356.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 356.75 68.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 314.75 69.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 119.00 314.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 123.00 314.75 50.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 173.00 314.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 314.75 50.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 314.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 314.75 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.00 314.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.00 314.75 75.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 314.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 314.75 64.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.00 314.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.00 314.75 64.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 314.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 314.75 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 359 419.75 m 423 419.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 419.75 m 427 419.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 419.75 m 491 419.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 398.75 m 119 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 123 398.75 m 173 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 398.75 m 227 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231 398.75 m 276 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 398.75 m 355 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 419.75 m 423 419.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 398.75 m 423 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 419.75 m 427 419.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 419.75 m 491 419.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 398.75 m 491 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 398.75 m 563 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 293.75 m 423 293.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 293.75 m 491 293.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 293.75 m 423 293.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 281.75 m 423 281.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 279.75 m 423 279.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 293.75 m 491 293.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 281.75 m 491 281.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 279.75 m 491 279.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 392.45 423.98 Td (Fair) Tj ET Q q 0 0 0 rg BT 406.97 423.98 Td ( ) Tj ET Q q 0 0 0 rg BT 408.82 423.98 Td (V) Tj ET Q q 0 0 0 rg BT 413.86 423.98 Td (alue of ) Tj ET Q q 0 0 0 rg BT 438.31 423.98 Td (Asset) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 410.98 Td (Derivative ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 402.98 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 132.35 410.98 Td (Effective ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 139.50 402.98 Td (Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 185.90 410.98 Td (Maturity ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 193.50 402.98 Td (Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 238.30 410.98 Td (Notional ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 243.35 402.98 Td (V) Tj ET Q q 0 0 0 rg BT 248.39 402.98 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.95 402.98 Td (Refer) Tj ET Q q 0 0 0 rg BT 309.90 402.98 Td (ence Rate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.10 410.98 Td (September) Tj ET Q q 0 0 0 rg BT 402.91 410.98 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 402.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 435.25 410.98 Td (December) Tj ET Q q 0 0 0 rg BT 469.75 410.98 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.50 402.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.60 410.98 Td (Balance Sheet ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.35 402.98 Td (Location) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 382.00 Td (Interest Rate Cap) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.25 382.00 Td (12/29/2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.25 382.00 Td (01/01/2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.50 382.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.75 382.00 Td (26,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.75 390.00 Td (One-month LIBOR ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.75 382.00 Td (at 3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.50 382.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.80 382.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.50 382.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 382.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 390.00 Td (Prepaid expenses ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.15 382.00 Td (and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 361.00 Td (Interest Rate Cap) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.25 361.00 Td (12/15/2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.25 361.00 Td (12/23/2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.50 361.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.75 361.00 Td (28,330) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.75 369.00 Td (One-month LIBOR ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.75 361.00 Td (at 3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.80 361.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 361.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 369.00 Td (Prepaid expenses ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.15 361.00 Td (and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 340.00 Td (Interest Rate Cap) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.25 340.00 Td (12/01/2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.25 340.00 Td (12/01/2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.50 340.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.75 340.00 Td (47,1) Tj ET Q q 0 0 0 rg BT 264.75 340.00 Td (10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.75 348.00 Td (One-month LIBOR ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.75 340.00 Td (at 3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.80 340.00 Td (22) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 340.00 Td (9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 348.00 Td (Prepaid expenses ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.15 340.00 Td (and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 319.00 Td (Interest Rate Cap) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.25 319.00 Td (10/03/2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.25 319.00 Td (10/15/2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.50 319.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.75 319.00 Td (34,125) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.75 327.00 Td (One-month LIBOR ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.75 319.00 Td (at 3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.80 319.00 Td (10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.80 319.00 Td (4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 327.00 Td (Prepaid expenses ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.15 319.00 Td (and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 298.00 Td (Interest Rate Cap) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.25 298.00 Td (02/02/2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.25 298.00 Td (12/30/2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.50 298.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.75 298.00 Td (26,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.75 306.00 Td (One-month LIBOR ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.75 298.00 Td (at 3.00%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.80 298.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 298.00 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 306.00 Td (Prepaid expenses ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 503.15 298.00 Td (and other assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 285.00 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 285.00 Td (otal Derivative Instruments not designated as hedging instruments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.50 285.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 411.80 285.00 Td (32) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.50 285.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 285.00 Td (13) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 257.25 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 257.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.03 257.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.47 257.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.69 257.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.51 257.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.78 257.25 Td (, the Company recorded an unrealized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.43 257.25 Td (gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 257.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.98 257.25 Td ($1,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.48 257.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.25 Td ($1) Tj ET Q q 0 0 0 rg BT 59.13 245.25 Td (1,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.63 245.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 134.29 245.25 Td (, on interest rate cap agreements, which is included as an of) Tj ET Q q 0 0 0 rg BT 372.08 245.25 Td (fset to interest expense on the accompanying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.25 Td (consolidated statements of operations. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.29 233.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.27 233.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.71 233.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.93 233.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.75 233.25 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.02 233.25 Td (, the Company recorded an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.25 Td (unrealized loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.53 221.25 Td ($12,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.03 221.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.47 221.25 Td ($84,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.97 221.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 259.63 221.25 Td (, on interest rate cap agreements, which is included in interest expense on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.25 Td (the accompanying consolidated statements of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 191.25 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 49.50 179.25 Td (movements on its investment in unconsolidated entity) Tj ET Q q 0 0 0 rg BT 264.38 179.25 Td (. ) Tj ET Q q 0 0 0 rg BT 269.20 179.25 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 49.50 167.25 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 73.50 149.25 Td (The following table summarizes the notional amount and other information related to the Company’) Tj ET Q q 0 0 0 rg BT 473.68 149.25 Td (s foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.25 Td (forward contract as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.01 137.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.28 137.25 Td (. ) Tj ET Q q 0 0 0 rg BT 225.10 137.25 Td (The notional amount is an indication of the extent of the Company’) Tj ET Q q 0 0 0 rg BT 494.20 137.25 Td (s involvement in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.25 Td (each 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 98.75 513.00 -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 98.75 m 263 98.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 98.75 m 338 98.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 98.75 m 413 98.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 98.75 m 488 98.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 98.75 m 563 98.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 102.98 Td (Derivative Instrument) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 272.55 102.98 Td (Notional ) Tj ET Q q 0 0 0 rg BT 303.67 102.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 356.65 102.98 Td (Strike Price) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.85 102.98 Td (T) Tj ET Q q 0 0 0 rg BT 437.89 102.98 Td (rade Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.45 102.98 Td (Maturity Date) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 89.98 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 77.00 Td (Foreign currency forward contract) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 269.50 77.00 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 316.80 77.00 Td (2,668) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.65 77.00 Td (1.2704 USD-EUR) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.75 77.00 Td (09/05/2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 508.75 77.00 Td (09/07/2021) Tj ET Q BT /F1 10.00 Tf ET 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 265.85 676.60 Td (September 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 (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 632.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.03 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.47 632.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.69 632.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.51 632.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.78 632.10 Td (, the Company recorded a foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 632.10 Td (gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.36 632.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.69 632.10 Td ($22,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.19 632.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 620.10 Td ($73,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.94 620.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 151.60 620.10 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 405.12 620.10 Td (of) Tj ET Q q 0 0 0 rg BT 413.26 620.10 Td (fset) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.70 620.10 Td ( to general and administrative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (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 376.91 608.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.90 608.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.34 608.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.55 608.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.38 608.10 Td (September 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 596.10 Td (, the Company recorded a foreign currency loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.76 596.10 Td ($33,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.26 596.10 Td ( on foreign currency forward contract, which is included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (general and administrative expenses on the accompanying consolidated statements of operations. ) Tj ET Q q 0 0 0 rg BT 439.75 584.10 Td (The fair value of the foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (currency forward contract was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.88 572.10 Td ($6,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.38 572.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.82 572.10 Td ($79,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.32 572.10 Td ( liability as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.09 572.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.35 572.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.79 572.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.37 572.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 542.03 572.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (included in other liabilities on the accompanying balance sheets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (10. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 536.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 536.10 Td (F) Tj ET Q q 0 0 0 rg BT 77.37 536.10 Td (AIR ) Tj ET Q q 0 0 0 rg BT 98.02 536.10 Td (V) Tj ET Q q 0 0 0 rg BT 103.95 536.10 Td (ALUE DISCLOSURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 518.10 Td (Under GAAP) Tj ET Q q 0 0 0 rg BT 125.61 518.10 Td (, the Company is required to measure certain financial instruments at fair value on a recurring basis. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (addition, the Company is required to measure other non-financial and financial assets at fair value on a non-recurring basis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 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 49.50 482.10 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 49.50 470.10 Td (measurement date. ) Tj ET Q q 0 0 0 rg BT 129.29 470.10 Td (The GAAP) Tj ET Q q 0 0 0 rg BT 174.19 470.10 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 49.50 458.10 Td (disclosed in one of the following three categories:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 440.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 440.10 Td (Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 428.10 Td (liabilities; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 413.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 413.10 Td (Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 401.10 Td (markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 389.10 Td (observable in active markets; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 374.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 374.10 Td (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 90.00 362.10 Td (significant to the fair value measurement and unobservable. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 341.10 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 49.50 329.10 Td (valuation techniques that involve significant management judgment. ) Tj ET Q q 0 0 0 rg BT 327.86 329.10 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 49.50 317.10 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 426.61 317.10 Td (s financial instruments. Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 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 49.50 293.10 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 49.50 281.10 Td (or consist of non-orderly trades. ) Tj ET Q q 0 0 0 rg BT 182.34 281.10 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 49.50 269.10 Td (market transactions are not orderly) Tj ET Q q 0 0 0 rg BT 188.24 269.10 Td (. ) Tj ET Q q 0 0 0 rg BT 195.56 269.10 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 49.50 257.10 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 72.00 239.10 Td (Cash and cash equivalents, r) Tj ET Q q 0 0 0 rg BT 187.45 239.10 Td (estricted cash, r) Tj ET Q q 0 0 0 rg BT 251.24 239.10 Td (ent and other r) Tj ET Q q 0 0 0 rg BT 310.58 239.10 Td (eceivables and accounts payable and accrued liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.41 239.10 Td (: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 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 72.00 209.10 Td (Real estate equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.91 209.10 Td (: ) Tj ET Q q 0 0 0 rg BT 189.01 209.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 248.72 209.10 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 49.50 197.10 Td (consolidated balance sheet. ) Tj ET Q q 0 0 0 rg BT 160.94 197.10 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 49.50 185.10 Td (major stock exchange. ) Tj ET Q q 0 0 0 rg BT 141.51 185.10 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 72.00 167.10 Td (Real estate loan r) Tj ET Q q 0 0 0 rg BT 142.45 167.10 Td (eceivable:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.53 167.10 Td ( ) Tj ET Q q 0 0 0 rg BT 185.85 167.10 Td (The Company’) Tj ET Q q 0 0 0 rg BT 245.56 167.10 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 49.50 155.10 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 447.78 155.10 Td (The fair value of real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 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 49.50 131.10 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 49.50 119.10 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 546.36 119.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (Company classifies these inputs as Level 3 inputs.) Tj ET Q endstream endobj 55 0 obj <>] /Rotate 0 /Contents 56 0 R>> endobj 56 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 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 265.85 676.60 Td (September 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 /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 631.40 Td (Derivative instruments:) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 166.70 631.40 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.45 631.40 Td (The Company’) Tj ET Q q 0 0 0 rg BT 229.16 631.40 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 49.50 619.40 Td (consolidated balance sheets. ) Tj ET Q q 0 0 0 rg BT 167.33 619.40 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 49.50 607.40 Td (observable inputs. ) Tj ET Q q 0 0 0 rg BT 126.71 607.40 Td (As such, the Company classifies these inputs as Level 2 inputs. ) Tj ET Q q 0 0 0 rg BT 384.27 607.40 Td (The proprietary model uses the contractual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.40 Td (terms of the derivatives, including the period to maturity) Tj ET Q q 0 0 0 rg BT 275.18 595.40 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 49.50 583.40 Td (curves and volatility) Tj ET Q q 0 0 0 rg BT 130.50 583.40 Td (. ) Tj ET Q q 0 0 0 rg BT 137.82 583.40 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 49.50 571.40 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 49.50 559.40 Td (strike rate of the caps \(floors\). ) Tj ET Q q 0 0 0 rg BT 172.33 559.40 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 49.50 547.40 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 546.90 547.40 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.40 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 49.50 523.40 Td (market exchange rate. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 505.40 Td (Notes payable:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.76 505.40 Td ( ) Tj ET Q q 0 0 0 rg BT 136.08 505.40 Td (The fair value of the Company’) Tj ET Q q 0 0 0 rg BT 261.87 505.40 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 49.50 493.40 Td (on management’) Tj ET Q q 0 0 0 rg BT 115.87 493.40 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 49.50 481.40 Td (loan term, loan-to-value ratio, type of collateral and other credit enhancements. ) Tj ET Q q 0 0 0 rg BT 368.26 481.40 Td (Additionally) Tj ET Q q 0 0 0 rg BT 418.16 481.40 Td (, when determining the fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.40 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 49.50 457.40 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 49.50 445.40 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 49.50 433.40 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 495.83 433.40 Td (The Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.40 Td (classifies these inputs as Level 3 inputs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 403.40 Td (The following were the face value, carrying amount and fair value of the Company’) Tj ET Q q 0 0 0 rg BT 406.87 403.40 Td (s financial instruments as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.40 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 391.40 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.20 391.40 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.79 391.40 Td (, which carrying amounts do not approximate the fair values \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 353.90 150.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 353.90 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 353.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 353.90 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 353.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 353.90 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 353.90 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 353.90 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 353.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 353.90 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 353.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 353.90 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 327.90 150.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 200.00 327.90 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.00 327.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 327.90 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 327.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 327.90 52.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 327.90 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 327.90 50.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 327.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 327.90 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 327.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 327.90 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 200 366.9 m 250 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250 366.9 m 254 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 366.9 m 323 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 366.9 m 327 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 366.9 m 379 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 366.9 m 434 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 366.9 m 438 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 366.9 m 507 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 366.9 m 511 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 366.9 m 563 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200 353.9 m 250 353.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 353.9 m 323 353.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 353.9 m 379 353.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 366.9 m 434 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 353.9 m 434 353.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 366.9 m 438 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 366.9 m 507 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 353.9 m 507 353.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 366.9 m 511 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 366.9 m 563 366.9 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 353.9 m 563 353.9 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 255.60 371.13 Td (September) Tj ET Q q 0 0 0 rg BT 292.41 371.13 Td ( 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.75 371.13 Td (December) Tj ET Q q 0 0 0 rg BT 475.32 371.13 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 205.90 358.13 Td (Face ) Tj ET Q q 0 0 0 rg BT 223.82 358.13 Td (V) Tj ET Q q 0 0 0 rg BT 229.15 358.13 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 257.40 358.13 Td (Carrying ) Tj ET Q q 0 0 0 rg BT 290.73 358.13 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 334.65 358.13 Td (Fair) Tj ET Q q 0 0 0 rg BT 349.24 358.13 Td ( ) Tj ET Q q 0 0 0 rg BT 351.09 358.13 Td (V) Tj ET Q q 0 0 0 rg BT 356.43 358.13 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.90 358.13 Td (Face ) Tj ET Q q 0 0 0 rg BT 407.82 358.13 Td (V) Tj ET Q q 0 0 0 rg BT 413.15 358.13 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.40 358.13 Td (Carrying ) Tj ET Q q 0 0 0 rg BT 474.73 358.13 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.65 358.13 Td (Fair) Tj ET Q q 0 0 0 rg BT 533.17 358.13 Td ( ) Tj ET Q q 0 0 0 rg BT 535.02 358.13 Td (V) Tj ET Q q 0 0 0 rg BT 540.06 358.13 Td (alue) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 345.15 Td (Financial asset:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 332.15 Td (Real estate loan receivable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.50 332.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 238.80 332.15 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 256.50 332.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.80 332.15 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.50 332.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.80 332.15 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 386.50 332.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.75 332.15 Td (3,500) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 440.50 332.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 485.80 332.15 Td (3,500) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 513.50 332.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 332.15 Td (3,500) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 319.15 Td (Financial liability:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 306.15 Td (Notes payable) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.50 306.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 220.75 306.15 Td (328,939) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 256.50 306.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.80 306.15 Td (326,409) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.50 306.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 349.75 306.15 Td (331,265) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 386.50 306.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.75 306.15 Td (332,035) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 440.50 306.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 306.15 Td (328,351) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 513.50 306.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.75 306.15 Td (333,336) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 278.40 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 49.50 266.40 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 518.40 266.40 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.40 Td (transaction volume for certain financial instruments remains relatively low) Tj ET Q q 0 0 0 rg BT 347.64 254.40 Td (. ) Tj ET Q q 0 0 0 rg BT 352.46 254.40 Td (This has made the estimation of fair values dif) Tj ET Q q 0 0 0 rg BT 537.78 254.40 Td (ficult ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.40 Td (and, therefore, both the actual results and the Company’) Tj ET Q q 0 0 0 rg BT 273.32 242.40 Td (s estimate of value at a future date could be materially dif) Tj ET Q q 0 0 0 rg BT 503.32 242.40 Td (ferent.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 224.40 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 224.40 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 224.40 Td (, the Company measured the following assets at fair value on a recurring basis \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 165.90 217.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 165.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 165.90 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 165.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 165.90 81.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 165.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 165.90 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 165.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 165.90 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 139.90 217.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 139.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 139.90 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 139.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 139.90 81.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 139.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 139.90 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 139.90 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 139.90 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 334 200.89999999999998 m 415 200.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 200.89999999999998 m 419 200.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 200.89999999999998 m 489 200.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 200.89999999999998 m 493 200.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 200.89999999999998 m 563 200.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 165.89999999999998 m 330 165.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 200.89999999999998 m 415 200.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 165.89999999999998 m 415 165.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 165.89999999999998 m 489 165.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 165.89999999999998 m 563 165.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 165.89999999999998 m 415 165.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 165.89999999999998 m 489 165.89999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 165.89999999999998 m 563 165.89999999999998 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 205.15 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 205.15 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.35 205.13 Td (Fair) Tj ET Q q 0 0 0 rg BT 407.94 205.13 Td ( ) Tj ET Q q 0 0 0 rg BT 409.79 205.13 Td (V) Tj ET Q q 0 0 0 rg BT 415.13 205.13 Td (alue Measur) Tj ET Q q 0 0 0 rg BT 457.13 205.13 Td (ements Using) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 170.15 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 291.25 170.13 Td (T) Tj ET Q q 0 0 0 rg BT 295.85 170.13 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 345.55 192.98 Td (Quoted Prices in ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.60 184.98 Td (Active Markets for) Tj ET Q q 0 0 0 rg BT 406.31 184.98 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 347.40 176.98 Td (Identical ) Tj ET Q q 0 0 0 rg BT 379.18 176.98 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.00 168.98 Td (\(Level 1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.90 186.13 Td (Significant Other) Tj ET Q q 0 0 0 rg BT 483.09 186.13 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.80 178.13 Td (Observable Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.50 170.13 Td (\(Level 2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.05 192.98 Td (Significant ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.90 184.98 Td (Unobservable ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.35 176.98 Td (Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.50 168.98 Td (\(Level 3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 157.15 Td (Recurring Basis:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 144.15 Td (Real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 144.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 144.15 Td (6,814) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.50 144.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.80 144.15 Td (6,814) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 144.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 144.15 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 144.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 144.15 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 131.15 Td (Asset derivatives - interest rate caps) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 131.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 318.80 131.15 Td (32) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.50 131.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 131.15 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 131.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 131.15 Td (32) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 131.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 131.15 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 118.15 Td (Liability derivative - foreign currency forward contract) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 118.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 322.80 118.15 Td (6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.50 118.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 118.15 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 118.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.80 118.15 Td (6) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 118.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 118.15 Td (—) Tj ET Q BT /F1 10.00 Tf ET 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 265.85 676.60 Td (September 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 /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 632.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 632.10 Td (, the Company measured the following assets at fair value on a nonrecurring basis \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 561.60 217.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.00 561.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.00 561.60 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.00 561.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 561.60 81.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 561.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 561.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 561.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 561.60 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 334 596.6 m 415 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 596.6 m 419 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 596.6 m 489 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 596.6 m 493 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 596.6 m 563 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 561.6 m 330 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 596.6 m 415 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 561.6 m 415 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 561.6 m 489 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 561.6 m 563 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 561.6 m 415 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 561.6 m 489 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 561.6 m 563 561.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 600.85 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 600.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.35 600.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 407.94 600.83 Td ( ) Tj ET Q q 0 0 0 rg BT 409.79 600.83 Td (V) Tj ET Q q 0 0 0 rg BT 415.13 600.83 Td (alue Measur) Tj ET Q q 0 0 0 rg BT 457.13 600.83 Td (ements Using) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 565.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 291.25 565.83 Td (T) Tj ET Q q 0 0 0 rg BT 296.22 565.83 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 345.55 588.68 Td (Quoted Prices in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.60 580.68 Td (Active Markets for) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 347.40 572.68 Td (Identical ) Tj ET Q q 0 0 0 rg BT 379.40 572.68 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.00 564.68 Td (\(Level 1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.90 581.83 Td (Significant Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.80 573.83 Td (Observable Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.50 565.83 Td (\(Level 2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.05 588.68 Td (Significant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.90 580.68 Td (Unobservable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.35 572.68 Td (Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.50 564.68 Td (\(Level 3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 552.85 Td (Nonrecurring Basis:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.50 539.85 Td (Impaired real estate ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 135.57 543.48 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.50 539.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.80 539.85 Td (58,300) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.50 539.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.80 539.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.50 539.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.80 539.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 495.50 539.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 539.85 Td (58,300) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 515.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 511.50 Td ( ) Tj ET Q q 0 0 0 rg BT 57.12 511.50 Td (Amount represents the fair value for a real estate asset impacted by an impairment char) Tj ET Q q 0 0 0 rg BT 335.97 511.50 Td (ge during the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 380.18 511.50 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.96 511.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 442.62 511.50 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 506.83 511.50 Td (, as of the date ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 501.90 Td (that the fair value measurement was made. ) Tj ET Q q 0 0 0 rg BT 187.96 501.90 Td (The carrying value for the real estate asset may have subsequently increased or decreased from the fair value ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 492.30 Td (reflected due to activity that has occurred since the measurement date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 468.30 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 468.30 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.76 468.30 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.59 468.30 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.85 468.30 Td (, one of the Company’) Tj ET Q q 0 0 0 rg BT 365.00 468.30 Td (s real estate properties was measured at its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 456.30 Td (estimated fair value based on a sales comparison approach. ) Tj ET Q q 0 0 0 rg BT 287.75 456.30 Td (As a result, this property was impaired and the carrying value was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 444.30 Td (adjusted due to a change in the projected hold period and related decrease in projected cash flows. See Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.22 444.30 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.22 444.30 Td (, “Real Estate – ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 432.30 Td (Impairment of Real Estate” for a further discussion on the impaired real estate property) Tj ET Q q 0 0 0 rg BT 397.89 432.30 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 408.30 Td (1) Tj ET Q q 0 0 0 rg BT 53.95 408.30 Td (1. ) Tj ET Q q 0 0 0 rg BT 72.00 408.30 Td (RELA) Tj ET Q q 0 0 0 rg BT 99.04 408.30 Td (TED P) Tj ET Q q 0 0 0 rg BT 127.47 408.30 Td (AR) Tj ET Q q 0 0 0 rg BT 141.56 408.30 Td (TY) Tj ET Q q 0 0 0 rg BT 155.08 408.30 Td ( ) Tj ET Q q 0 0 0 rg BT 157.40 408.30 Td (TRANSACTIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 390.30 Td (The Company has entered into the ) Tj ET Q q 0 0 0 rg BT 211.41 390.30 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 250.58 390.30 Td (Agreement with the ) Tj ET Q q 0 0 0 rg BT 331.95 390.30 Td (Advisor and dealer manager agreements with the Dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.30 Td (Manager) Tj ET Q q 0 0 0 rg BT 84.64 378.30 Td (, with respect to the Private Of) Tj ET Q q 0 0 0 rg BT 206.92 378.30 Td (fering and the Public Of) Tj ET Q q 0 0 0 rg BT 303.38 378.30 Td (fering. ) Tj ET Q q 0 0 0 rg BT 334.58 378.30 Td (These agreements entitle the ) Tj ET Q q 0 0 0 rg BT 450.64 378.30 Td (Advisor and the Dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.30 Td (Manager to specified fees upon the provision of certain of) Tj ET Q q 0 0 0 rg BT 281.18 366.30 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 49.50 354.30 Td (related investments, among other services, as well as reimbursement of or) Tj ET Q q 0 0 0 rg BT 344.78 354.30 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 414.02 354.30 Td (fering costs incurred by the ) Tj ET Q q 0 0 0 rg BT 525.38 354.30 Td (Advisor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.30 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 386.88 342.30 Td (Advisor in providing services to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.30 Td (Company) Tj ET Q q 0 0 0 rg BT 87.74 330.30 Td (. In addition, the ) Tj ET Q q 0 0 0 rg BT 155.51 330.30 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 49.50 318.30 Td (performance goals, as described in the ) Tj ET Q q 0 0 0 rg BT 204.72 318.30 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 243.89 318.30 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 293.13 318.30 Td (The ) Tj ET Q q 0 0 0 rg BT 310.63 318.30 Td (Advisor also serves or has served as the advisor for KBS Real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.30 Td (Estate Investment ) Tj ET Q q 0 0 0 rg BT 123.19 306.30 Td (T) Tj ET Q q 0 0 0 rg BT 128.94 306.30 Td (rust, Inc. \(“KBS REIT) Tj ET Q q 0 0 0 rg BT 218.47 306.30 Td ( I”\), KBS Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 353.53 306.30 Td (T) Tj ET Q q 0 0 0 rg BT 359.29 306.30 Td (rust II, Inc. \(“KBS REIT) Tj ET Q q 0 0 0 rg BT 457.98 306.30 Td ( II”\), KBS Real Estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.30 Td (Investment ) Tj ET Q q 0 0 0 rg BT 96.25 294.30 Td (T) Tj ET Q q 0 0 0 rg BT 102.01 294.30 Td (rust III, Inc. \(“KBS REIT) Tj ET Q q 0 0 0 rg BT 204.03 294.30 Td ( III”\), KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 317.88 294.30 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 384.62 294.30 Td (, Inc. \(“KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 503.75 294.30 Td (Apartment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.30 Td (REIT”\), KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 217.34 282.30 Td (, Inc. \(“KBS Strategic Opportunity REIT”\) and KBS Growth & Income REIT) Tj ET Q q 0 0 0 rg BT 527.93 282.30 Td (, Inc. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.30 Td (\(“KBS Growth & Income REIT”\). ) Tj ET Q q 0 0 0 rg BT 189.84 270.30 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 49.50 258.30 Td (plan of) Tj ET Q q 0 0 0 rg BT 77.37 258.30 Td (ferings for KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 254.65 258.30 Td (, KBS REIT) Tj ET Q q 0 0 0 rg BT 303.64 258.30 Td ( III and KBS Growth & Income REIT) Tj ET Q q 0 0 0 rg BT 454.81 258.30 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 240.30 Td (On January 6, 2014, the Company) Tj ET Q q 0 0 0 rg BT 209.77 240.30 Td (, together with KBS REIT) Tj ET Q q 0 0 0 rg BT 314.31 240.30 Td ( I, KBS REIT) Tj ET Q q 0 0 0 rg BT 369.13 240.30 Td ( II, KBS REIT) Tj ET Q q 0 0 0 rg BT 427.27 240.30 Td ( III, KBS Legacy Partners ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.30 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 116.24 228.30 Td (, KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 254.09 228.30 Td (, the Dealer Manager) Tj ET Q q 0 0 0 rg BT 338.09 228.30 Td (, the ) Tj ET Q q 0 0 0 rg BT 357.26 228.30 Td (Advisor and other KBS-af) Tj ET Q q 0 0 0 rg BT 462.34 228.30 Td (filiated entities, entered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.30 Td (into an errors and omissions and directors and of) Tj ET Q q 0 0 0 rg BT 244.28 216.30 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 49.50 204.30 Td (coverage were shared. ) Tj ET Q q 0 0 0 rg BT 143.43 204.30 Td (The cost of these lower tiers was allocated by the ) Tj ET Q q 0 0 0 rg BT 342.25 204.30 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 49.50 192.30 Td (various entities covered by the program, and was billed directly to each entity) Tj ET Q q 0 0 0 rg BT 359.58 192.30 Td (. ) Tj ET Q q 0 0 0 rg BT 366.90 192.30 Td (The allocation of these shared coverage costs is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.30 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 421.69 180.30 Td (ficers liability coverage purchased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.30 Td (individually by each REIT) Tj ET Q q 0 0 0 rg BT 155.12 168.30 Td (. ) Tj ET Q q 0 0 0 rg BT 162.44 168.30 Td (The ) Tj ET Q q 0 0 0 rg BT 179.93 168.30 Td (Advisor) Tj ET Q q 0 0 0 rg BT 212.53 168.30 Td (’) Tj ET Q q 0 0 0 rg BT 215.31 168.30 Td (s and the Dealer Manager) Tj ET Q q 0 0 0 rg BT 318.41 168.30 Td (’) Tj ET Q q 0 0 0 rg BT 321.18 168.30 Td (s portion of the shared lower tiers’) Tj ET Q q 0 0 0 rg BT 458.18 168.30 Td ( cost was proportionate to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.30 Td (the respective entities’) Tj ET Q q 0 0 0 rg BT 138.72 156.30 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 518.19 156.30 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.30 Td (added to the insurance program at terms similar to those described above. KBS REIT) Tj ET Q q 0 0 0 rg BT 390.34 144.30 Td ( I elected to cease participation in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.30 Td (program at the June 2017 renewal and obtained separate insurance coverage. ) Tj ET Q q 0 0 0 rg BT 358.26 132.30 Td (At renewal in June 2018, the Company) Tj ET Q q 0 0 0 rg BT 513.97 132.30 Td (, KBS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.30 Td (Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 160.96 120.30 Td ( and KBS Legacy Partners ) Tj ET Q q 0 0 0 rg BT 269.00 120.30 Td (Apartment REIT) Tj ET Q q 0 0 0 rg BT 336.30 120.30 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 49.50 108.30 Td (separate insurance coverage. ) Tj ET Q q 0 0 0 rg BT 166.47 108.30 Td (The Company) Tj ET Q q 0 0 0 rg BT 222.76 108.30 Td (, together with KBS Strategic Opportunity REIT) Tj ET Q q 0 0 0 rg BT 416.16 108.30 Td (, entered into an errors and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.30 Td (omissions and directors and of) Tj ET Q q 0 0 0 rg BT 171.52 96.30 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 84.30 Td (The cost of these lower tiers is allocated by the ) Tj ET Q q 0 0 0 rg BT 239.44 84.30 Td (Advisor and its insurance broker among each REIT) Tj ET Q q 0 0 0 rg BT 445.03 84.30 Td ( covered by the program, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 72.30 Td (is billed directly to each REIT) Tj ET Q q 0 0 0 rg BT 169.55 72.30 Td (. ) Tj ET Q q 0 0 0 rg BT 176.87 72.30 Td (The program is ef) Tj ET Q q 0 0 0 rg BT 248.05 72.30 Td (fective through June 30, 2019.) 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 265.85 676.60 Td (September 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 /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 632.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 632.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.19 632.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.01 632.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.28 632.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.71 632.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.71 632.10 Td (, no other business transactions occurred between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (the Company and these other KBS-sponsored programs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 602.10 Td (The ) Tj ET Q q 0 0 0 rg BT 89.50 602.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 128.67 602.10 Td (Agreement has a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.36 602.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.80 602.10 Td (-year term that expires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.98 602.10 Td (August 12, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.37 602.10 Td (. ) Tj ET Q q 0 0 0 rg BT 376.19 602.10 Td (The Company may terminate the ) Tj ET Q q 0 0 0 rg BT 509.76 602.10 Td (Advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (Agreement on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.92 590.10 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.92 590.10 Td ( days’) Tj ET Q q 0 0 0 rg BT 142.34 590.10 Td ( written notice and the ) Tj ET Q q 0 0 0 rg BT 233.70 590.10 Td (Advisor may terminate on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.90 590.10 Td (90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.90 590.10 Td ( days’) Tj ET Q q 0 0 0 rg BT 374.32 590.10 Td ( written notice. ) Tj ET Q q 0 0 0 rg BT 436.90 590.10 Td (The ) Tj ET Q q 0 0 0 rg BT 454.39 590.10 Td (Advisor in its sole ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (discretion may defer any fee payable to it under the ) Tj ET Q q 0 0 0 rg BT 257.20 578.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 296.37 578.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 347.74 578.10 Td (All or any portion of such fee not taken may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (deferred without interest and paid when the ) Tj ET Q q 0 0 0 rg BT 225.28 566.10 Td (Advisor determines. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 548.10 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 49.50 536.10 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 (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.14 536.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.97 536.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.23 536.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.67 536.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.67 536.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 339.33 536.10 Td (, and any related amounts payable as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.55 536.10 Td (September 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 524.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 524.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.52 524.10 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 461.60 129.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 179.00 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re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 183.00 435.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 237.00 435.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 241.00 435.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.00 435.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 435.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 435.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 435.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 435.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 435.60 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 435.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 435.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 409.60 129.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 179.00 409.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 183.00 409.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 237.00 409.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 241.00 409.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 295.00 409.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 299.00 409.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 409.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 409.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.00 409.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 409.60 73.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 409.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 409.60 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 383.60 129.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 179.00 383.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 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0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 495.6 m 295 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 495.6 m 299 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 495.6 m 353 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 495.6 m 357 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 495.6 m 411 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 495.6 m 488 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 495.6 m 492 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 495.6 m 563 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 179 495.6 m 183 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 495.6 m 237 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 474.6 m 237 474.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237 495.6 m 241 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237 474.6 m 241 474.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 495.6 m 295 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 474.6 m 295 474.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 495.6 m 299 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 495.6 m 353 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 474.6 m 353 474.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 495.6 m 357 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 474.6 m 357 474.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 495.6 m 411 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 474.6 m 411 474.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 495.6 m 488 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 495.6 m 563 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 474.6 m 237 474.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 461.6 m 237 461.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237 474.6 m 241 474.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i 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RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 318.6 m 295 318.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 306.6 m 295 306.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 304.6 m 295 304.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 318.6 m 353 318.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 306.6 m 353 306.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 304.6 m 353 304.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 318.6 m 411 318.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 306.6 m 411 306.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 304.6 m 411 304.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 318.6 m 488 318.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 306.6 m 488 306.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 304.6 m 488 304.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 318.6 m 563 318.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 306.6 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ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 259.50 465.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 317.50 465.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.50 465.83 Td (2017) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 452.83 Td (Expensed) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 439.85 Td (Asset management fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 185.50 439.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 215.80 439.85 Td (1,020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 243.50 439.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 279.80 439.85 Td (739) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.50 439.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.80 439.85 Td (2,940) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.50 439.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 439.85 Td (1,820) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.50 439.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 439.85 Td (20) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.50 439.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 439.85 Td (22) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 426.85 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 162.02 430.48 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 221.80 426.85 Td (1) Tj ET Q q 0 0 0 rg BT 225.80 426.85 Td (13) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 283.80 426.85 Td (65) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.80 426.85 Td (337) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 395.80 426.85 Td (239) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 426.85 Td (64) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 426.85 Td (42) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 413.83 Td (Capitalized) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 400.85 Td (Acquisition fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 225.80 400.85 Td (19) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.80 400.85 Td (4,126) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.80 400.85 Td (234) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 400.85 Td (4,151) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 400.85 Td (133) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 400.85 Td (76) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 387.85 Td (Asset management fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 225.80 387.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 283.80 387.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.80 387.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 387.85 Td (67) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 387.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 387.85 Td (—) Tj ET Q BT /F4 8.00 Tf ET q 0 0 0 rg BT 52.50 374.83 Td (Additional Paid-in Capital) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 361.85 Td (Sales commissions) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 221.80 361.85 Td (190) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 279.80 361.85 Td (267) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.80 361.85 Td (614) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 361.85 Td (2,028) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 361.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 361.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 348.85 Td (Dealer manager fees) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 225.80 348.85 Td (92) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 279.80 348.85 Td (133) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.80 348.85 Td (337) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 348.85 Td (1,180) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 348.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 348.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 335.85 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 139.36 339.48 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 227.10 335.85 Td (\(2) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 233.80 335.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 279.80 335.85 Td (505) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.80 335.85 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 335.85 Td (1,041) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 335.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 335.85 Td (680) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 322.85 Td (Reimbursable other of) Tj ET Q q 0 0 0 rg BT 123.89 322.85 Td (fering costs ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 162.99 326.48 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 225.80 322.85 Td (45) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 283.80 322.85 Td (87) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 337.80 322.85 Td (174) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 395.80 322.85 Td (583) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 322.85 Td (54) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 322.85 Td (1,042) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 185.50 309.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 215.80 309.85 Td (1,477) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 243.50 309.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.80 309.85 Td (5,922) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.50 309.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.80 309.85 Td (4,650) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.50 309.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 385.75 309.85 Td (1) Tj ET Q q 0 0 0 rg BT 389.75 309.85 Td (1,109) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.50 309.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 309.85 Td (271) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.50 309.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 309.85 Td (1,862) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 285.13 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 281.50 Td (Reimbursable operating expenses primarily consists of internal audit personnel costs, accounting software and cyber) Tj ET Q q 0 0 0 rg BT 429.48 281.50 Td (-security related expenses incurred by ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 271.90 Td (the ) Tj ET Q q 0 0 0 rg BT 60.83 271.90 Td (Advisor under the ) Tj ET Q q 0 0 0 rg BT 120.16 271.90 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 151.49 271.90 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 190.89 271.90 Td (The Company has reimbursed the ) Tj ET Q q 0 0 0 rg BT 300.42 271.90 Td (Advisor for the Company’) Tj ET Q q 0 0 0 rg BT 384.63 271.90 Td (s allocable portion of the salaries, benefits and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 262.30 Td (overhead of internal audit department personnel providing services to the Company) Tj ET Q q 0 0 0 rg BT 316.46 262.30 Td (. ) Tj ET Q q 0 0 0 rg BT 320.31 262.30 Td (These amounts totaled ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 394.29 262.30 Td ($0.1 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.41 262.30 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 448.96 262.30 Td ($0.3 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.07 262.30 Td ( for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 513.17 262.30 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 529.16 262.30 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 544.71 262.30 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.48 262.30 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 252.70 Td (months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.16 252.70 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 160.37 252.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 202.50 252.70 Td (, and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 220.05 252.70 Td ($0.1 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.16 252.70 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 274.71 252.70 Td ($0.2 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 313.83 252.70 Td ( for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 338.93 252.70 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 354.92 252.70 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 370.47 252.70 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.24 252.70 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 432.90 252.70 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.11 252.70 Td (, respectively) Tj ET Q q 0 0 0 rg BT 539.24 252.70 Td (, and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 243.10 Td (were the only employee costs reimbursed under the ) Tj ET Q q 0 0 0 rg BT 215.67 243.10 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 247.01 243.10 Td (Agreement for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 307.65 243.10 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 323.64 243.10 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 339.19 243.10 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.96 243.10 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.62 243.10 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.83 243.10 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.38 243.10 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 497.38 243.10 Td (. ) Tj ET Q q 0 0 0 rg BT 501.24 243.10 Td (The ) Tj ET Q q 0 0 0 rg BT 515.23 243.10 Td (Advisor may ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 233.50 Td (seek reimbursement for certain other employee costs under the ) Tj ET Q q 0 0 0 rg BT 251.87 233.50 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 283.21 233.50 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 322.60 233.50 Td (The Company will not reimburse for employee costs in connection with ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 223.90 Td (services for which the ) Tj ET Q q 0 0 0 rg BT 121.48 223.90 Td (Advisor earns acquisition or origination fees or disposition fees \(other than reimbursement of travel and communication expenses\) or for ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 214.30 Td (the salaries or benefits the ) Tj ET Q q 0 0 0 rg BT 134.58 214.30 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 186.65 214.30 Td (filiates may pay to the Company’) Tj ET Q q 0 0 0 rg BT 293.07 214.30 Td (s executive of) Tj ET Q q 0 0 0 rg BT 337.36 214.30 Td (ficers. In addition to the amounts above, the Company reimburses the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 204.70 Td (Advisor for certain of the Company’) Tj ET Q q 0 0 0 rg BT 166.14 204.70 Td (s direct costs incurred from third parties that were initially paid by the ) Tj ET Q q 0 0 0 rg BT 391.63 204.70 Td (Advisor on behalf of the Company) Tj ET Q q 0 0 0 rg BT 502.42 204.70 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 195.73 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 192.10 Td (Reflects the stockholder servicing fee paid based on the terms of the Class ) Tj ET Q q 0 0 0 rg BT 296.42 192.10 Td (T) Tj ET Q q 0 0 0 rg BT 301.17 192.10 Td ( Shares. Pursuant to the terms of the Class ) Tj ET Q q 0 0 0 rg BT 437.89 192.10 Td (T) Tj ET Q q 0 0 0 rg BT 442.64 192.10 Td ( shares as set forth in the ) Tj ET Q q 0 0 0 rg BT 523.28 192.10 Td (Articles ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 182.50 Td (Supplementary and Multiple Class Plan of the Company) Tj ET Q q 0 0 0 rg BT 229.63 182.50 Td (, the Company ceased accruing for stockholder servicing fees after ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 444.87 182.50 Td (July 31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.21 182.50 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 173.52 Td (\(3\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 169.90 Td (See “Other Of) Tj ET Q q 0 0 0 rg BT 102.48 169.90 Td (fering Costs” below) Tj ET Q q 0 0 0 rg BT 165.94 169.90 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 145.90 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.55 145.90 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.76 145.90 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.59 145.90 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.85 145.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.29 145.90 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.29 145.90 Td (, the ) Tj ET Q q 0 0 0 rg BT 334.46 145.90 Td (Advisor reimbursed the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.77 145.90 Td ($35,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.27 145.90 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.71 145.90 Td ($21,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.21 145.90 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.90 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 133.90 Td (, for property insurance rebates.) 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 265.85 676.60 Td (September 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 (Other) Tj ET Q q 0 0 0 rg BT 74.87 632.25 Td ( Offering Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 Td (Or) Tj ET Q q 0 0 0 rg BT 82.37 614.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 151.61 614.25 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 49.50 602.25 Td (the Company may be paid by the ) Tj ET Q q 0 0 0 rg BT 183.64 602.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 215.46 602.25 Td (, the Dealer Manager or their af) Tj ET Q q 0 0 0 rg BT 341.60 602.25 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 49.50 590.25 Td (directly by the Company) Tj ET Q q 0 0 0 rg BT 148.00 590.25 Td (. ) Tj ET Q q 0 0 0 rg BT 155.32 590.25 Td (These of) Tj ET Q q 0 0 0 rg BT 189.84 590.25 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 49.50 578.25 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 578.25 Td (fering and the Public Of) Tj ET Q q 0 0 0 rg BT 156.33 578.25 Td (fering. Or) Tj ET Q q 0 0 0 rg BT 198.08 578.25 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 49.50 566.25 Td (formation of the Company) Tj ET Q q 0 0 0 rg BT 155.22 566.25 Td (, including but not limited to legal fees and other costs to incorporate the Company) Tj ET Q q 0 0 0 rg BT 486.44 566.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 548.25 Td (The Company recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.91 548.25 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.80 548.25 Td ( of of) Tj ET Q q 0 0 0 rg BT 239.28 548.25 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 49.50 536.25 Td (the Private Of) Tj ET Q q 0 0 0 rg BT 105.41 536.25 Td (fering, all of which was initially paid by the ) Tj ET Q q 0 0 0 rg BT 282.60 536.25 Td (Advisor or its af) Tj ET Q q 0 0 0 rg BT 347.68 536.25 Td (filiates on behalf of the Company and subsequently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (reimbursed by the Company) Tj ET Q q 0 0 0 rg BT 162.44 524.25 Td (. In addition, the Company paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.86 524.25 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.75 524.25 Td ( in selling commissions and dealer manager fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (related to the Private Of) Tj ET Q q 0 0 0 rg BT 145.39 512.25 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 494.25 Td (During the Public Of) Tj ET Q q 0 0 0 rg BT 155.97 494.25 Td (fering, pursuant to the ) Tj ET Q q 0 0 0 rg BT 246.23 494.25 Td (Advisory ) Tj ET Q q 0 0 0 rg BT 285.40 494.25 Td (Agreement and the Dealer Manager ) Tj ET Q q 0 0 0 rg BT 430.61 494.25 Td (Agreement, the Company is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (obligated to reimburse the ) Tj ET Q q 0 0 0 rg BT 156.14 482.25 Td (Advisor) Tj ET Q q 0 0 0 rg BT 187.96 482.25 Td (, the Dealer Manager or their af) Tj ET Q q 0 0 0 rg BT 314.10 482.25 Td (filiates, as applicable, for or) Tj ET Q q 0 0 0 rg BT 425.54 482.25 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 517.83 482.25 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (costs paid by them on behalf of the Company) Tj ET Q q 0 0 0 rg BT 230.48 470.25 Td (, provided that no reimbursements made by the Company to the ) Tj ET Q q 0 0 0 rg BT 487.10 470.25 Td (Advisor or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (Dealer Manager may cause total or) Tj ET Q q 0 0 0 rg BT 189.53 458.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 258.77 458.25 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 49.50 446.25 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 446.25 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 477.22 446.25 Td (15%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.55 446.25 Td ( of the aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (gross proceeds from the Public Of) Tj ET Q q 0 0 0 rg BT 186.23 434.25 Td (fering as of the date of reimbursement. In addition, the ) Tj ET Q q 0 0 0 rg BT 406.72 434.25 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 477.92 434.25 Td (filiates reimbursed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (the Company to the extent that the or) Tj ET Q q 0 0 0 rg BT 197.89 422.25 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 290.18 422.25 Td (fering expenses \(which exclude selling commissions, dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (manager fees and stockholder servicing fees\) 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 49.50 398.25 Td (portion of the Public Of) Tj ET Q q 0 0 0 rg BT 144.86 398.25 Td (fering, regardless of when incurred, exceeded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.77 398.25 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.60 398.25 Td ( of gross of) Tj ET Q q 0 0 0 rg BT 395.70 398.25 Td (fering proceeds from the primary portion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (of the Public Of) Tj ET Q q 0 0 0 rg BT 113.47 386.25 Td (fering. ) Tj ET Q q 0 0 0 rg BT 142.17 386.25 Td (The ) Tj ET Q q 0 0 0 rg BT 159.67 386.25 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 230.86 386.25 Td (filiates are responsible for any or) Tj ET Q q 0 0 0 rg BT 362.58 386.25 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 454.86 386.25 Td (fering expenses related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (the primary portion of the Public Of) Tj ET Q q 0 0 0 rg BT 193.73 374.25 Td (fering to the extent they exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.01 374.25 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.84 374.25 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 49.50 362.25 Td (Public Of) Tj ET Q q 0 0 0 rg BT 87.93 362.25 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 344.25 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 344.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.20 344.25 Td (, the ) Tj ET Q q 0 0 0 rg BT 208.37 344.25 Td (Advisor and its af) Tj ET Q q 0 0 0 rg BT 279.56 344.25 Td (filiates had incurred or) Tj ET Q q 0 0 0 rg BT 370.18 344.25 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 462.46 344.25 Td (fering costs \(which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (exclude selling commissions dealer manager fees and stockholder servicing fees\) on the Company’) Tj ET Q q 0 0 0 rg BT 445.49 332.25 Td (s behalf in connection with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (the Public Of) Tj ET Q q 0 0 0 rg BT 102.64 320.25 Td (fering of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.11 320.25 Td ($10.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.00 320.25 Td (. ) Tj ET Q q 0 0 0 rg BT 260.95 320.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.39 320.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.66 320.25 Td (, the Company had recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.17 320.25 Td ($14.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.07 320.25 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (selling commissions and dealer manager fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.71 308.25 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.61 308.25 Td ( of stockholder servicing fees. ) Tj ET Q q 0 0 0 rg BT 420.79 308.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.24 308.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.50 308.25 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (Company had recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.30 296.25 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.19 296.25 Td ( of other or) Tj ET Q q 0 0 0 rg BT 238.72 296.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 307.96 296.25 Td (fering expenses, which amounts represent the Company’) Tj ET Q q 0 0 0 rg BT 534.29 296.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (maximum liability for or) Tj ET Q q 0 0 0 rg BT 148.47 284.25 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 240.75 284.25 Td (fering costs as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.29 284.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.56 284.25 Td ( based on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.54 284.25 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.37 284.25 Td ( limitation described ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.25 Td (above.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 254.25 Td (In addition, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.26 254.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.53 254.25 Td (, the ) Tj ET Q q 0 0 0 rg BT 241.69 254.25 Td (Advisor had incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.17 254.25 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.06 254.25 Td ( in or) Tj ET Q q 0 0 0 rg BT 398.99 254.25 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 468.23 254.25 Td (fering costs on behalf ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.25 Td (of the Company in connection with a proposed follow-on of) Tj ET Q q 0 0 0 rg BT 289.55 242.25 Td (fering the Company filed with the SEC on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.64 242.25 Td (August 10, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.03 242.25 Td (. ) Tj ET Q q 0 0 0 rg BT 533.98 242.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 230.25 Td (, the Company had not commenced the follow-on of) Tj ET Q q 0 0 0 rg BT 338.70 230.25 Td (fering.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (12. ) Tj ET Q q 0 0 0 rg BT 72.00 206.25 Td (COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 153.95 206.25 Td (AND CONTINGENCIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 188.25 Td (Management ) Tj ET Q q 0 0 0 rg BT 107.55 188.25 Td (Agr) Tj ET Q q 0 0 0 rg BT 124.03 188.25 Td (eement) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 170.25 Td (Springmaid Beach Resort) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 155.25 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 49.50 143.25 Td (entered into a management agreement with Doubletree Management LLC, an independent third-party hotel operator \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.25 Td (“Operator”\) pursuant to which the Operator will manage and operate the Springmaid Beach Resort. ) Tj ET Q q 0 0 0 rg BT 449.46 131.25 Td (The hotel was branded a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.25 Td (DoubleT) Tj ET Q q 0 0 0 rg BT 84.70 119.25 Td (ree by Hilton in September 2016 \(the “Brand Commencement Date”\).) 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 265.85 676.60 Td (September 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 /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 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 49.50 620.10 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 49.50 608.10 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 49.50 596.10 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 49.50 584.10 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 49.50 572.10 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 49.50 560.10 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 49.50 548.10 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 49.50 536.10 Td (receives a termination fee an amount equal to two years of the base fee. ) Tj ET Q q 0 0 0 rg BT 340.31 536.10 Td (The Company is permitted to terminate the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 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 49.50 512.10 Td (approved for) Tj ET Q q 0 0 0 rg BT 100.47 512.10 Td (, and enters into a DoubleT) Tj ET Q q 0 0 0 rg BT 208.97 512.10 Td (ree by Hilton franchise agreement for the balance of the agreement’) Tj ET Q q 0 0 0 rg BT 479.40 512.10 Td (s term. Finally) Tj ET Q q 0 0 0 rg BT 536.80 512.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 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 49.50 488.10 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 73.50 470.10 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 85.50 452.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 452.10 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 393.09 452.10 Td (2.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.92 452.10 Td ( and increases to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.79 452.10 Td (2.75%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.62 452.10 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 440.10 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 103.50 428.10 Td (Commencement Date and thereafter to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.93 428.10 Td (3.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.76 428.10 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 413.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 413.10 Td (a campground area management fee, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.97 413.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.30 413.10 Td ( of any campground revenue;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 398.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 398.10 Td (an incentive fee, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.90 398.10 Td (15%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.23 398.10 Td ( of operating cash flow \(after deduction for capital renewals reserve and the joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 386.10 Td (venture owner) Tj ET Q q 0 0 0 rg BT 161.35 386.10 Td (’) Tj ET Q q 0 0 0 rg BT 164.13 386.10 Td (s priority) Tj ET Q q 0 0 0 rg BT 199.86 386.10 Td (, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.97 386.10 Td (12%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.30 386.10 Td ( of the joint venture owner) Tj ET Q q 0 0 0 rg BT 366.03 386.10 Td (’) Tj ET Q q 0 0 0 rg BT 368.81 386.10 Td (s total investment\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 371.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 371.10 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 85.50 356.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 356.10 Td (a brand services fee in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.44 356.10 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.77 356.10 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 103.50 344.10 Td (determined by the Operator from time to time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 323.10 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 49.50 311.10 Td (Operator to maintain uniformity in the system created by the Operator) Tj ET Q q 0 0 0 rg BT 330.34 311.10 Td (’) Tj ET Q q 0 0 0 rg BT 333.12 311.10 Td (s franchise. Such standards generally regulate the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (appearance of the hotel, quality and type of goods and services of) Tj ET Q q 0 0 0 rg BT 311.45 299.10 Td (fered, signage and protection of trademarks. Compliance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 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 73.50 269.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.05 269.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.03 269.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.47 269.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.69 269.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.51 269.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.78 269.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.70 269.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.59 269.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.03 269.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.92 269.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 257.10 Td (, of fees related to the management agreement, which are included in hotel expenses on the accompanying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (consolidated statements of operations. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.29 245.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.27 245.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.71 245.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.93 245.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.75 245.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.02 245.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.93 245.10 Td ($0.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 233.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 233.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.72 233.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 199.38 233.10 Td (, of fees related to the management agreement, which are included in hotel expenses on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.10 Td (the accompanying consolidated statements of operations. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (Q&C Hotel) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.89 203.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 188.10 Td (A) Tj ET Q q 0 0 0 rg BT 78.67 188.10 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 49.50 176.10 Td (\(“Q&C Hotel Operations”\) has entered into a management agreement with Encore Hospitality) Tj ET Q q 0 0 0 rg BT 425.67 176.10 Td (, LLC \(“Encore Hospitality”\), an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 164.10 Td (filiate of the joint venture partner) Tj ET Q q 0 0 0 rg BT 189.69 164.10 Td (, pursuant to which Encore Hospitality will manage and operate the Q&C Hotel. ) Tj ET Q q 0 0 0 rg BT 513.04 164.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 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 49.50 140.10 Td (of the agreement for a period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.16 140.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.71 140.10 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 49.50 128.10 Td (which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.61 128.10 Td (4.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.44 128.10 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 398.27 128.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.26 128.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.70 128.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.92 128.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 116.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.68 116.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.57 116.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.01 116.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.90 116.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 396.57 116.10 Td (, of fees related to the management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (agreement, which 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 534.91 104.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.89 104.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 92.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.66 92.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.48 92.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.74 92.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.66 92.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.55 92.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.99 92.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.88 92.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 491.55 92.10 Td (, of fees related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.10 Td (to the management agreement, which are included in hotel expenses on the accompanying consolidated statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 68.10 Td (operations.) 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 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 265.85 676.60 Td (September 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 (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.10 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 49.50 620.10 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 49.50 608.10 Td (using certain of Marriott’) Tj ET Q q 0 0 0 rg BT 150.31 608.10 Td (s proprietary marks and systems and the hotel was branded as a Marriott ) Tj ET Q q 0 0 0 rg BT 441.62 608.10 Td (Autograph Collection hotel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (on May 25, 2016. ) Tj ET Q q 0 0 0 rg BT 122.65 596.10 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 49.50 584.10 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 534.37 584.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.70 584.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (and increases to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.86 572.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.19 572.10 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 426.63 572.10 Td (1.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.46 572.10 Td ( of the Q&C Hotel’) Tj ET Q q 0 0 0 rg BT 524.67 572.10 Td (s gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 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 49.50 548.10 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 295.25 548.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.58 548.10 Td ( of gross revenues and increases to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.92 548.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.25 548.10 Td ( of gross revenues on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 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 448.93 536.10 Td (ges and costs as set forth in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (the agreement. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.40 524.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.39 524.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.83 524.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.04 524.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.87 524.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.13 524.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.05 524.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.94 524.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.38 524.10 Td ($0.8 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 512.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 131.05 512.10 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 387.34 512.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.32 512.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.76 512.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.98 512.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 500.10 Td (, the Company incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.68 500.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.57 500.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.01 500.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.90 500.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 396.57 500.10 Td (, of fees related to the Marriott franchise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (agreement. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 470.10 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 49.50 458.10 Td (unconditional guarantee that all Q&C Hotel Operations’) Tj ET Q q 0 0 0 rg BT 273.69 458.10 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 49.50 446.10 Td (performed. Finally) Tj ET Q q 0 0 0 rg BT 123.83 446.10 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 49.50 434.10 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 49.50 422.10 Td (to a competitor of Marriott.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (Lease Obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 386.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 386.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 386.10 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 513.01 386.10 Td (October 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 374.10 Td ( and 21) Tj ET Q q 0 0 0 rg BT 98.57 374.10 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 456.81 374.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.08 374.10 Td ( are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 345.60 439.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 345.60 74.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 323.60 439.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 323.60 74.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 301.60 439.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 301.60 74.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 279.60 439.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 279.60 74.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 257.60 439.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 257.60 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 489 279.6 m 563 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 279.6 m 563 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 257.6 m 563 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 247.60000000000002 m 563 247.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 245.60000000000002 m 563 245.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 337.55 Td (October 1, 2018 through December 31, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.50 337.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 337.55 Td (150) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 326.55 Td (2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 326.55 Td (635) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 315.55 Td (2020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 315.55 Td (680) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 304.55 Td (2021) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 304.55 Td (735) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 293.55 Td (2022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 293.55 Td (935) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 282.55 Td (Thereafter) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 282.55 Td (53,841) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 271.55 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 271.55 Td (otal expected minimum lease obligations) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 271.55 Td (56,976) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 260.55 Td (Less: ) Tj ET Q q 0 0 0 rg BT 70.95 260.55 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 166.25 264.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 535.10 260.55 Td (\(48,648) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 260.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 249.55 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 201.57 253.18 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 491.50 249.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 249.55 Td (8,328) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 226.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 222.50 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 501.64 222.50 Td (s incremental ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 212.90 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 49.50 203.92 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 200.30 Td ( ) Tj ET Q q 0 0 0 rg BT 57.42 200.30 Td (The present value of net minimum lease payments are presented in other liabilities in the accompanying consolidated balance sheets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 176.30 Td (Economic Dependency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 158.30 Td (The Company is dependent on the ) Tj ET Q q 0 0 0 rg BT 210.86 158.30 Td (Advisor for certain services that are essential to the Company) Tj ET Q q 0 0 0 rg BT 456.52 158.30 Td (, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.30 Td (identification, evaluation, negotiation, origination, acquisition and disposition of investments; management of the daily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.30 Td (operations of the Company’) Tj ET Q q 0 0 0 rg BT 160.87 134.30 Td (s investment portfolio; and other general and administrative responsibilities. In the event that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.30 Td (Advisor is unable to provide these services, the Company will be required to obtain such services from other sources.) Tj ET Q endstream endobj 67 0 obj <>] /Rotate 0 /Contents 68 0 R>> endobj 68 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 1. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Financial Statements \(continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 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 265.85 676.60 Td (September 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 (32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Envir) Tj ET Q q 0 0 0 rg BT 73.77 632.25 Td (onmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 614.25 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 49.50 602.25 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 49.50 590.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 590.25 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 292.86 590.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.12 590.25 Td (. However) Tj ET Q q 0 0 0 rg BT 416.87 590.25 Td (, changes in applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’) Tj ET Q q 0 0 0 rg BT 471.08 578.25 Td (s properties, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (could result in future environmental liabilities. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (Legal Matters) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 518.25 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 49.50 506.25 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 49.50 494.25 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.13 494.25 Td (fect on the Company’) Tj ET Q q 0 0 0 rg BT 176.49 494.25 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 49.50 482.25 Td (contingency and the possible range of loss. ) Tj ET Q q 0 0 0 rg BT 225.85 482.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 275.75 482.25 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 49.50 470.25 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 49.50 446.25 Td (13. ) Tj ET Q q 0 0 0 rg BT 72.00 446.25 Td (SUBSEQUENT) Tj ET Q q 0 0 0 rg BT 139.07 446.25 Td ( EVENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 428.25 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 49.50 410.25 Td (Cash Distributions Paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 392.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 392.25 Td (October 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.93 392.25 Td (, the Company paid distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.08 392.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.98 392.25 Td ( related to cash distributions on the outstanding shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (of 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 326.36 380.25 Td (September 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.62 380.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.73 380.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.00 380.25 Td (. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (November 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.21 368.25 Td (, the Company paid distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.36 368.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.25 368.25 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 49.50 356.25 Td (common stock based on daily record dates for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.81 356.25 Td (October 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.52 356.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.63 356.25 Td (October 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.34 356.25 Td (. Distributions for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.25 Td (period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.49 344.25 Td (September 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.75 344.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.86 344.25 Td (October 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.56 344.25 Td ( were calculated based on stockholders of record each day during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (these periods at a rate of \(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.39 332.25 Td ($0.00052548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.89 332.25 Td ( per share per day less \(ii\) the applicable daily stockholder servicing fees accrued for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (and allocable to any class of common stock, divided by the number of shares of common stock of such class outstanding as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (the close of business on each respective record date. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 290.25 Td (Stock Dividends Issued) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 272.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.67 272.25 Td (August 9, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.06 272.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 208.44 272.25 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 465.88 272.25 Td (September 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.14 272.25 Td (, in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.25 Td (amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 260.25 Td (0.001667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.33 260.25 Td ( shares of each class of the Company’) Tj ET Q q 0 0 0 rg BT 281.11 260.25 Td (s common stock on each outstanding share of common stock issuable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.25 Td (to 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 320.83 248.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.09 248.25 Td (. ) Tj ET Q q 0 0 0 rg BT 408.41 248.25 Td (The Company issued the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.06 248.25 Td (September ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 236.25 Td ( stock dividend, consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.49 236.25 Td (50,1) Tj ET Q q 0 0 0 rg BT 206.62 236.25 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.62 236.25 Td ( shares, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.61 236.25 Td (October 2, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.32 236.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 218.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.67 218.25 Td (August 9, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.06 218.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 208.44 218.25 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 465.88 218.25 Td (October 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.59 218.25 Td (, in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 206.25 Td (0.001667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.33 206.25 Td ( shares of each class of the Company’) Tj ET Q q 0 0 0 rg BT 281.11 206.25 Td (s common stock on each outstanding share of common stock issuable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (to 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 320.83 194.25 Td (October 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.54 194.25 Td (. ) Tj ET Q q 0 0 0 rg BT 397.85 194.25 Td (The Company issued the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 194.25 Td (October 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.21 194.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.25 Td (stock dividends, consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.88 182.25 Td (50,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.38 182.25 Td ( shares, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.37 182.25 Td (November 2, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.08 182.25 Td (.) Tj ET Q endstream endobj 69 0 obj <>] /Rotate 0 /Contents 70 0 R>> endobj 70 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 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 265.85 676.60 Td (September 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 (33) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 632.25 Td (Distributions Declar) Tj ET Q q 0 0 0 rg BT 136.26 632.25 Td (ed) 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 (October 10, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.93 614.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 217.31 614.25 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 49.50 602.25 Td (of 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 323.59 602.25 Td (November 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.30 602.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.41 602.25 Td (November 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.11 602.25 Td (, which the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (Company expects to pay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.87 590.25 Td (December 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.45 590.25 Td (. Investors may choose to receive cash distributions or purchase additional shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (through the Company’) Tj ET Q q 0 0 0 rg BT 139.49 578.25 Td (s dividend reinvestment plan. Distributions for these periods will be calculated based on stockholders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (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 233.87 566.25 Td ($0.00052548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.37 566.25 Td ( per share per day) Tj ET Q q 0 0 0 rg BT 356.79 566.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 548.25 Td (Also on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.39 548.25 Td (October 10, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.10 548.25 Td (, the Company’) Tj ET Q q 0 0 0 rg BT 236.48 548.25 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 496.96 548.25 Td (November 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.67 548.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.82 536.25 Td (0.001667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.32 536.25 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 49.50 524.25 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 260.56 524.25 Td (November 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.27 524.25 Td (. Stock dividends are issued in the same class of shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (as the shares for which such stockholder received the stock dividend. ) Tj ET Q q 0 0 0 rg BT 328.12 512.25 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 49.50 500.25 Td (December 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.08 500.25 Td (.) 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Tf ET q 0 0 0 rg BT 301.00 33.60 Td (34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 704.10 Td (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 depend on our advisor to identify suitable investments, conduct our operations and eventually dispose of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 488.10 Td (investments. ) 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 (All of our executive of) Tj ET Q q 0 0 0 rg BT 180.90 473.10 Td (ficers, our af) Tj ET Q q 0 0 0 rg BT 231.52 473.10 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 90.00 461.10 Td (of) Tj ET Q q 0 0 0 rg BT 98.15 461.10 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 90.00 449.10 Td (advisor) Tj ET Q q 0 0 0 rg BT 119.04 449.10 Td (, our dealer manager and other KBS-af) Tj ET Q q 0 0 0 rg BT 274.07 449.10 Td (filiated entities. ) Tj ET Q q 0 0 0 rg BT 340.72 449.10 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 90.00 437.10 Td (significant conflicts created by our advisor) Tj ET Q q 0 0 0 rg BT 261.15 437.10 Td (’) Tj ET Q q 0 0 0 rg BT 263.93 437.10 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 90.00 425.10 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 476.67 425.10 Td (These conflicts could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 413.10 Td (result in unanticipated actions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 398.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 398.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 398.10 Td (e raised substantially less than the maximum of) Tj ET Q q 0 0 0 rg BT 288.14 398.10 Td (fering amount in our initial public of) Tj ET Q q 0 0 0 rg BT 434.59 398.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 463.29 398.10 Td (Therefore, we will not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 386.10 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 90.00 374.10 Td (stockholders’) Tj ET Q q 0 0 0 rg BT 143.13 374.10 Td ( investment to vary more widely with the performance of specific assets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 359.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 359.10 Td (Our board of directors has begun to explore strategic alternatives for the company) Tj ET Q q 0 0 0 rg BT 417.01 359.10 Td (. If we consummate a mer) Tj ET Q q 0 0 0 rg BT 520.68 359.10 Td (ger or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 347.10 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 90.00 335.10 Td (of) Tj ET Q q 0 0 0 rg BT 98.15 335.10 Td (fering prices or our estimated NA) Tj ET Q q 0 0 0 rg BT 231.54 335.10 Td (V) Tj ET Q q 0 0 0 rg BT 238.58 335.10 Td ( per share.) 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 advisor and its af) Tj ET Q q 0 0 0 rg BT 176.46 320.10 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 90.00 308.10 Td (management of our investments. ) Tj ET Q q 0 0 0 rg BT 222.84 308.10 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 90.00 296.10 Td (of the investment or the quality of the services rendered to us. ) Tj ET Q q 0 0 0 rg BT 339.47 296.10 Td (This may influence our advisor to recommend riskier ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 284.10 Td (transactions to us and increase our stockholders’) Tj ET Q q 0 0 0 rg BT 283.09 284.10 Td ( risk of loss.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 269.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 269.10 Td (Our distribution policy is generally not to use of) Tj ET Q q 0 0 0 rg BT 282.57 269.10 Td (fering proceeds to pay distributions. However) Tj ET Q q 0 0 0 rg BT 465.45 269.10 Td (, we may pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 257.10 Td (distributions from any source, including, without limitation, from of) Tj ET Q q 0 0 0 rg BT 362.29 257.10 Td (fering proceeds or borrowings \(which may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 245.10 Td (constitute a return of capital\). 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 90.00 233.10 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 90.00 221.10 Td (reduced and subsequent investors may experience dilution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 206.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 206.10 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 90.00 194.10 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 90.00 182.10 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 472.21 182.10 Td (fering, and to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 170.10 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 90.00 158.10 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 90.00 146.10 Td (distribute and could result in a decline in the value of an investment in us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 131.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 131.10 Td (Disruptions in the financial markets and uncertain economic conditions could adversely af) Tj ET Q q 0 0 0 rg BT 451.10 131.10 Td (fect our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 119.10 Td (implement our business strategy and generate returns to stockholders.) 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 72.00 704.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 704.10 Td (Our 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 90.00 692.10 Td (stabilized properties.) 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 (W) Tj ET Q q 0 0 0 rg BT 98.64 677.10 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 90.00 665.10 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 90.00 653.10 Td (standards and changes in foreign laws.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.10 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 481.74 632.10 Td ( “Risk Factors” and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (in Part I, Item 1A) Tj ET Q q 0 0 0 rg BT 119.21 620.10 Td ( of our ) Tj ET Q q 0 0 0 rg BT 147.82 620.10 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 344.16 620.10 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.74 620.10 Td ( and in Part II, Item 1A) Tj ET Q q 0 0 0 rg BT 515.22 620.10 Td ( of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 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 49.50 596.10 Td (\(the “SEC”\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 560.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 560.10 Td (e 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 49.50 548.10 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 49.50 536.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 536.10 Td (fering exempt from registration under the Securities ) Tj ET Q q 0 0 0 rg BT 267.31 536.10 Td (Act of 1933, as amended \(the “Securities ) Tj ET Q q 0 0 0 rg BT 433.37 536.10 Td (Act”\), to of) Tj ET Q q 0 0 0 rg BT 479.00 536.10 Td (fer a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 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 527.80 524.10 Td (fered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (pursuant to our dividend reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 228.73 512.10 Td (W) Tj ET Q q 0 0 0 rg BT 237.37 512.10 Td (e ceased of) Tj ET Q q 0 0 0 rg BT 281.60 512.10 Td (fering shares in our private of) Tj ET Q q 0 0 0 rg BT 399.99 512.10 Td (fering on ) Tj ET Q q 0 0 0 rg BT 438.31 512.10 Td (August 1) Tj ET Q q 0 0 0 rg BT 474.33 512.10 Td (1, 2014. KBS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (Capital Markets Group LLC, an af) Tj ET Q q 0 0 0 rg BT 187.62 500.10 Td (filiate of our advisor) Tj ET Q q 0 0 0 rg BT 269.13 500.10 Td (, served as the dealer manager of the of) Tj ET Q q 0 0 0 rg BT 425.82 500.10 Td (fering pursuant to a dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (manager agreement and was responsible for marketing our shares in the of) Tj ET Q q 0 0 0 rg BT 347.27 488.10 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 470.10 Td (On November 14, 2013, we filed a registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 352.41 470.10 Td (1 with the Securities and Exchange Commission ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 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 49.50 446.10 Td (were to be of) Tj ET Q q 0 0 0 rg BT 101.79 446.10 Td (fered pursuant to our dividend reinvestment plan. ) Tj ET Q q 0 0 0 rg BT 304.06 446.10 Td (The SEC declared our registration statement ef) Tj ET Q q 0 0 0 rg BT 491.59 446.10 Td (fective on ) Tj ET Q q 0 0 0 rg BT 533.24 446.10 Td (August ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 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 501.14 434.10 Td (fering pursuant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (to a dealer manager agreement. On February 1) Tj ET Q q 0 0 0 rg BT 237.65 422.10 Td (1, 2016, we filed an amended registration statement on Form S-1) Tj ET Q q 0 0 0 rg BT 497.22 422.10 Td (1 with the SEC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (to of) Tj ET Q q 0 0 0 rg BT 67.93 410.10 Td (fer a second class of common stock designated as Class ) Tj ET Q q 0 0 0 rg BT 292.69 410.10 Td (T) Tj ET Q q 0 0 0 rg BT 298.62 410.10 Td ( shares and to designate our initially of) Tj ET Q q 0 0 0 rg BT 453.67 410.10 Td (fered and outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (common stock as Class ) Tj ET Q q 0 0 0 rg BT 145.05 398.10 Td (A) Tj ET Q q 0 0 0 rg BT 151.72 398.10 Td ( shares. Pursuant to the amended registration statement, we were of) Tj ET Q q 0 0 0 rg BT 423.40 398.10 Td (fering to sell any combination of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (Class ) Tj ET Q q 0 0 0 rg BT 73.12 386.10 Td (A) Tj ET Q q 0 0 0 rg BT 79.79 386.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 123.22 386.10 Td (T) Tj ET Q q 0 0 0 rg BT 129.14 386.10 Td ( shares in our primary of) Tj ET Q q 0 0 0 rg BT 227.55 386.10 Td (fering and dividend reinvestment plan of) Tj ET Q q 0 0 0 rg BT 390.37 386.10 Td (fering but in no event could we sell more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (than 180,000,000 of shares of our common stock pursuant to the of) Tj ET Q q 0 0 0 rg BT 317.88 374.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 349.08 374.10 Td (W) Tj ET Q q 0 0 0 rg BT 357.72 374.10 Td (e commenced of) Tj ET Q q 0 0 0 rg BT 423.62 374.10 Td (fering our Class ) Tj ET Q q 0 0 0 rg BT 489.81 374.10 Td (T) Tj ET Q q 0 0 0 rg BT 495.74 374.10 Td ( shares of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (common stock for sale to the public on February 17, 2016. ) Tj ET Q q 0 0 0 rg BT 288.72 362.10 Td (The dealer manager was responsible for marketing our shares in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (initial public of) Tj ET Q q 0 0 0 rg BT 110.97 350.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 139.67 350.10 Td (W) Tj ET Q q 0 0 0 rg BT 148.31 350.10 Td (e ceased of) Tj ET Q q 0 0 0 rg BT 192.54 350.10 Td (fering shares of common stock in our initial public of) Tj ET Q q 0 0 0 rg BT 405.93 350.10 Td (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.80 350.10 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.97 350.10 Td ( and terminated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (our initial public of) Tj ET Q q 0 0 0 rg BT 126.80 338.10 Td (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.68 338.10 Td (September 28, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.95 338.10 Td (. ) Tj ET Q q 0 0 0 rg BT 250.76 338.10 Td (W) Tj ET Q q 0 0 0 rg BT 259.40 338.10 Td (e continue to of) Tj ET Q q 0 0 0 rg BT 321.70 338.10 Td (fer shares of common stock under our dividend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (reinvestment plan. In some states, we will need to renew the registration statement annually or file a new registration statement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (to continue our dividend reinvestment plan of) Tj ET Q q 0 0 0 rg BT 232.05 314.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 260.75 314.10 Td (W) Tj ET Q q 0 0 0 rg BT 269.39 314.10 Td (e may terminate our dividend reinvestment plan of) Tj ET Q q 0 0 0 rg BT 471.64 314.10 Td (fering at any time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 296.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 296.10 Td (e have used substantially all of the net proceeds from our of) Tj ET Q q 0 0 0 rg BT 319.55 296.10 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 49.50 284.10 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 49.50 272.10 Td (in the United States and Europe. Such investments include the origination and acquisition of mortgage, mezzanine, bridge and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (other real estate-related loans and investment in opportunistic real estate. ) Tj ET Q q 0 0 0 rg BT 343.01 260.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.45 260.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.71 260.10 Td (, we had invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.92 260.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.92 260.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (hotel properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.98 248.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.64 248.10 Td ( of) Tj ET Q q 0 0 0 rg BT 144.29 248.10 Td (fice properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.76 248.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.20 248.10 Td ( apartment building, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.51 248.10 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.95 248.10 Td ( investment in an unconsolidated entity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.31 248.10 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.74 248.10 Td ( investment in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (real estate equity securities. ) Tj ET Q q 0 0 0 rg BT 161.96 236.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 211.86 236.10 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.52 236.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.78 236.10 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 509.55 236.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.99 236.10 Td ( retail ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (property) Tj ET Q q 0 0 0 rg BT 82.73 224.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 206.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 206.10 Td (e sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.75 206.10 Td (1) Tj ET Q q 0 0 0 rg BT 111.38 206.10 Td (1,977,758) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.38 206.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.81 206.10 Td (1) Tj ET Q q 0 0 0 rg BT 175.44 206.10 Td (1,537,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.44 206.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 279.88 206.10 Td (A) Tj ET Q q 0 0 0 rg BT 286.55 206.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 329.98 206.10 Td (T) Tj ET Q q 0 0 0 rg BT 335.91 206.10 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 449.67 206.10 Td (, for aggregate gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 194.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.89 194.10 Td ($228.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.79 194.10 Td ( in our initial public of) Tj ET Q q 0 0 0 rg BT 281.87 194.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 310.19 194.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.64 194.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.90 194.10 Td (, we had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.17 194.10 Td (549,572) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.67 194.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.11 194.10 Td (178,325) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.61 194.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (shares of Class ) Tj ET Q q 0 0 0 rg BT 111.44 182.10 Td (A) Tj ET Q q 0 0 0 rg BT 118.11 182.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 161.54 182.10 Td (T) Tj ET Q q 0 0 0 rg BT 167.46 182.10 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 281.23 182.10 Td (, under our dividend reinvestment plan for aggregate gross of) Tj ET Q q 0 0 0 rg BT 525.97 182.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.37 170.10 Td ($6.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.26 170.10 Td (. ) Tj ET Q q 0 0 0 rg BT 151.71 170.10 Td (Also as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.76 170.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.02 170.10 Td (, we had redeemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.48 170.10 Td (440,842) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.98 170.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.42 170.10 Td (63,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.92 170.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 496.36 170.10 Td (A) Tj ET Q q 0 0 0 rg BT 503.03 170.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 546.46 170.10 Td (T) Tj ET Q q 0 0 0 rg BT 552.39 170.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (common stock, respectively) Tj ET Q q 0 0 0 rg BT 160.76 158.10 Td (, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.92 158.10 Td ($4.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.82 158.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 140.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 140.10 Td (e sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.75 140.10 Td (3,619,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.75 140.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 211.18 140.10 Td (A) Tj ET Q q 0 0 0 rg BT 217.85 140.10 Td ( common stock for gross of) Tj ET Q q 0 0 0 rg BT 327.38 140.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.63 140.10 Td ($32.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.52 140.10 Td ( in our private of) Tj ET Q q 0 0 0 rg BT 523.54 140.10 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.40 128.10 Td (, on each of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.00 128.10 Td (April 2, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.60 128.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.04 128.10 Td (July 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.21 128.10 Td (, we issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.87 128.10 Td (120,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.37 128.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 418.81 128.10 Td (A) Tj ET Q q 0 0 0 rg BT 425.48 128.10 Td ( common stock to an entity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 116.10 Td (filiated with two of our of) Tj ET Q q 0 0 0 rg BT 160.50 116.10 Td (ficers and af) Tj ET Q q 0 0 0 rg BT 209.73 116.10 Td (filiated directors for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.20 116.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.09 116.10 Td ( in separate private transactions exempt from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (registration requirements of the Securities ) Tj ET Q q 0 0 0 rg BT 219.17 104.10 Td (Act. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.33 104.10 Td (July 14, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.50 104.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.94 104.10 Td (February 13, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.54 104.10 Td (, we issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.20 104.10 Td (214,175) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.70 104.10 Td ( shares and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.63 104.10 Td (10,935) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.13 104.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.10 Td (shares, respectively) Tj ET Q q 0 0 0 rg BT 127.15 92.10 Td (, of Class ) Tj ET Q q 0 0 0 rg BT 166.60 92.10 Td (A) Tj ET Q q 0 0 0 rg BT 173.27 92.10 Td ( common stock to a business associate of two of our of) Tj ET Q q 0 0 0 rg BT 392.21 92.10 Td (ficers and af) Tj ET Q q 0 0 0 rg BT 441.45 92.10 Td (filiated director for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.02 92.10 Td ($2.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 80.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 80.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.72 80.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 199.38 80.10 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 68.10 Td (Securities ) Tj ET Q q 0 0 0 rg BT 90.88 68.10 Td (Act. ) 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 /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 have no employees and KBS Capital ) Tj ET Q q 0 0 0 rg BT 236.44 704.10 Td (Advisors LLC \(“KBS Capital ) Tj ET Q q 0 0 0 rg BT 356.99 704.10 Td (Advisors”\) has served as our external advisor since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (commencement of the private of) Tj ET Q q 0 0 0 rg BT 179.27 692.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 210.09 692.10 Td (As our advisor) Tj ET Q q 0 0 0 rg BT 268.57 692.10 Td (, KBS Capital ) Tj ET Q q 0 0 0 rg BT 326.36 692.10 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 49.50 680.10 Td (our portfolio of real estate properties and real estate-related investments. KBS Capital ) Tj ET Q q 0 0 0 rg BT 394.67 680.10 Td (Advisors also provides asset-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (management, marketing, investor) Tj ET Q q 0 0 0 rg BT 183.15 668.10 Td (-relations and other administrative services on our behalf. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 650.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 650.10 Td (e have formed a strategic relationship with ST) Tj ET Q q 0 0 0 rg BT 264.50 650.10 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 49.50 638.10 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 541.14 638.10 Td (W) Tj ET Q q 0 0 0 rg BT 549.78 638.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (can give no assurances as to the number) Tj ET Q q 0 0 0 rg BT 209.32 626.10 Td (, if any) Tj ET Q q 0 0 0 rg BT 236.72 626.10 Td (, of investments we may make in Europe. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 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 72.00 590.10 Td (V) Tj ET Q q 0 0 0 rg BT 77.93 590.10 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 49.50 578.10 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 49.50 566.10 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 450.08 566.10 Td (, to retain tenants who are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 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 49.50 542.10 Td (of financing due to higher interest rates may cause dif) Tj ET Q q 0 0 0 rg BT 264.52 542.10 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 49.50 530.10 Td (favorable as the terms of existing indebtedness. Further) Tj ET Q q 0 0 0 rg BT 270.71 530.10 Td (, increases in interest rates would increase the amount of our debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (payments on our variable rate debt to the extent the interest rates on such debt are not limited by interest rate caps. Market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (conditions can change quickly) Tj ET Q q 0 0 0 rg BT 170.20 506.10 Td (, potentially negatively impacting the value of real estate investments. Management continuously ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (reviews our investment and debt financing strategies to optimize our portfolio and the cost of our debt exposure.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (Liquidity and Capital Resour) Tj ET Q q 0 0 0 rg BT 175.18 476.10 Td (ces) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 458.10 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 49.50 446.10 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 49.50 434.10 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 49.50 422.10 Td (stockholders. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 404.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.41 404.10 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 72.00 386.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 386.10 Td (Proceeds from the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 318.93 386.10 Td (fering; ) 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 (Proceeds from our dividend reinvestment plan;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 356.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 356.10 Td (Proceeds from the repayment of a real estate loan receivable;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 341.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 341.10 Td (Debt financings; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 326.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 326.10 Td (Cash flow generated by our real estate investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 305.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 305.10 Td (e sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.75 305.10 Td (1) Tj ET Q q 0 0 0 rg BT 111.38 305.10 Td (1,977,758) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.38 305.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.81 305.10 Td (1) Tj ET Q q 0 0 0 rg BT 175.44 305.10 Td (1,537,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.44 305.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 279.88 305.10 Td (A) Tj ET Q q 0 0 0 rg BT 286.55 305.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 329.98 305.10 Td (T) Tj ET Q q 0 0 0 rg BT 335.91 305.10 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 449.67 305.10 Td (, for aggregate gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 293.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.89 293.10 Td ($228.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.79 293.10 Td ( in our initial public of) Tj ET Q q 0 0 0 rg BT 281.87 293.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 310.19 293.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 360.10 293.10 Td (, we sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.43 293.10 Td (3,619,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.43 293.10 Td ( shares of common stock in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (our private of) Tj ET Q q 0 0 0 rg BT 103.74 281.10 Td (fering for gross of) Tj ET Q q 0 0 0 rg BT 176.04 281.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.29 281.10 Td ($32.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.18 281.10 Td (. ) Tj ET Q q 0 0 0 rg BT 310.00 281.10 Td (W) Tj ET Q q 0 0 0 rg BT 318.64 281.10 Td (e ceased of) Tj ET Q q 0 0 0 rg BT 362.87 281.10 Td (fering shares of common stock in our primary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (public of) Tj ET Q q 0 0 0 rg BT 85.14 269.10 Td (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.02 269.10 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.19 269.10 Td ( and terminated on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.39 269.10 Td (September 28, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.65 269.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 251.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.41 251.10 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 432.11 251.10 Td (fering in real estate and do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 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 528.63 239.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.00 227.10 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.17 227.10 Td (. ) Tj ET Q q 0 0 0 rg BT 120.99 227.10 Td (W) Tj ET Q q 0 0 0 rg BT 129.63 227.10 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 49.50 215.10 Td (dividend reinvestment plan as our primary sources of immediate and long-term liquidity) Tj ET Q q 0 0 0 rg BT 401.82 215.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 197.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 197.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.71 197.10 Td (, we had invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.91 197.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.91 197.10 Td ( hotel properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.89 197.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.55 197.10 Td ( of) Tj ET Q q 0 0 0 rg BT 371.20 197.10 Td (fice properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.67 197.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.11 197.10 Td ( apartment building, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.42 197.10 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.86 197.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (investment in an unconsolidated entity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.35 185.10 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.79 185.10 Td ( investment in real estate equity securities. ) Tj ET Q q 0 0 0 rg BT 404.41 185.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 454.31 185.10 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.97 185.10 Td (September 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 173.10 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 260.27 173.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.71 173.10 Td ( retail property) Tj ET Q q 0 0 0 rg BT 333.48 173.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 155.10 Td (Our of) Tj ET Q q 0 0 0 rg BT 98.20 155.10 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 49.50 143.10 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 49.50 131.10 Td (corporate general and administrative expenses. Cash flow from operations from of) Tj ET Q q 0 0 0 rg BT 378.93 131.10 Td (fice and apartment properties is primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (dependent upon the occupancy level of our properties, the net ef) Tj ET Q q 0 0 0 rg BT 306.17 119.10 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 49.50 107.10 Td (operating recoveries from our tenants and how well we manage our expenditures. ) Tj ET Q q 0 0 0 rg BT 377.44 107.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.89 107.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 107.10 Td (, we owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.47 107.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.13 107.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 95.10 Td (fice properties that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.04 95.10 Td (72%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.37 95.10 Td ( occupied and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.41 95.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.84 95.10 Td ( apartment property that was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.75 95.10 Td (91%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.08 95.10 Td ( occupied.) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 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 49.50 692.10 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 49.50 680.10 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 49.50 668.10 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 49.50 656.10 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 400.52 656.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.78 656.10 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 618.60 123.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 173.00 618.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 177.00 618.60 54.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 618.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 618.60 131.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.00 618.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.00 618.60 103.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 618.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 618.60 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 50 618.6 m 173 618.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 618.6 m 231 618.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 235 618.6 m 366 618.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 618.6 m 473 618.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 618.6 m 563 618.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 618.6 m 231 618.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 235 618.6 m 366 618.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 618.6 m 473 618.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 618.6 m 563 618.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 622.83 Td (Pr) Tj ET Q q 0 0 0 rg BT 60.79 622.83 Td (operty) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 185.00 630.83 Td (Number) Tj ET Q q 0 0 0 rg BT 213.37 630.83 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 191.70 622.83 Td (Rooms) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 242.60 630.83 Td (Per) Tj ET Q q 0 0 0 rg BT 254.44 630.83 Td (centage Occupied for) Tj ET Q q 0 0 0 rg BT 326.73 630.83 Td ( the Nine ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 240.40 622.83 Td (Months Ended September) Tj ET Q q 0 0 0 rg BT 329.60 622.83 Td ( 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.70 630.83 Td (A) Tj ET Q q 0 0 0 rg BT 390.18 630.83 Td (verage Revenue per) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.85 622.83 Td (A) Tj ET Q q 0 0 0 rg BT 399.33 622.83 Td (vailable Room) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 486.45 622.83 Td (A) Tj ET Q q 0 0 0 rg BT 491.63 622.83 Td (verage Daily Rate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 609.85 Td (Springmaid Beach Resort) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 197.50 609.85 Td (452) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.65 609.85 Td (65.7%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.00 609.85 Td ($1) Tj ET Q q 0 0 0 rg BT 416.00 609.85 Td (1) Tj ET Q q 0 0 0 rg BT 420.00 609.85 Td (1.78) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 506.50 609.85 Td ($170.09) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 596.85 Td (Q&C Hotel) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 197.50 596.85 Td (196) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.65 596.85 Td (75.7%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.00 596.85 Td ($1) Tj ET Q q 0 0 0 rg BT 416.00 596.85 Td (19.61) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 506.50 596.85 Td ($158.08) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 569.10 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 49.50 557.10 Td (management fees. ) Tj ET Q q 0 0 0 rg BT 123.64 557.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.08 557.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.34 557.10 Td (, we had an investment in real estate equity securities outstanding with a total book ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.10 Td (value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.49 545.10 Td ($6.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.38 545.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 527.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.94 527.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.21 527.10 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 465.95 527.10 Td ($328.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.85 527.10 Td (, with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (weighted-average remaining term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.77 515.10 Td (1.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.27 515.10 Td ( years. ) Tj ET Q q 0 0 0 rg BT 238.31 515.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.76 515.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.02 515.10 Td (, an aggregate amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 515.10 Td ($32.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.54 515.10 Td ( was available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (under 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 49.50 491.10 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 49.50 479.10 Td (documents. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 461.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 461.10 Td (e expect to use our capital resources to make certain payments to our advisor in connection with the management of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.10 Td (assets and costs incurred by our advisor in providing services to us. Our currently ef) Tj ET Q q 0 0 0 rg BT 385.63 449.10 Td (fective advisory agreement expires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.10 Td (August 12, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.89 437.10 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 49.50 425.10 Td (Capital ) Tj ET Q q 0 0 0 rg BT 80.33 425.10 Td (Advisors and our conflicts committee.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 407.10 Td (Among the fees payable to our advisor is an asset management fee. ) Tj ET Q q 0 0 0 rg BT 342.62 407.10 Td (W) Tj ET Q q 0 0 0 rg BT 351.26 407.10 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 49.50 395.10 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 49.50 383.10 Td (secured by or attributable to the investments. ) Tj ET Q q 0 0 0 rg BT 231.49 383.10 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 49.50 371.10 Td (allocated to acquire the real property) Tj ET Q q 0 0 0 rg BT 195.72 371.10 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 49.50 359.10 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 520.27 359.10 Td (The cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 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 49.50 335.10 Td (to acquire or fund the loan or other investment, including fees and expenses related thereto \(but excluding acquisition fees paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (or payable to our advisor\) 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 49.50 311.10 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 49.50 299.10 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 49.50 287.10 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 72.00 269.10 Td (In addition, an af) Tj ET Q q 0 0 0 rg BT 140.13 269.10 Td (filiate of our advisor) Tj ET Q q 0 0 0 rg BT 221.65 269.10 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 49.50 257.10 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 49.50 245.10 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 431.70 245.10 Td (W) Tj ET Q q 0 0 0 rg BT 440.74 245.10 Td (ith respect to any such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (properties, we would expect to pay KBS Management Group a monthly fee equal to a percentage of the rent \(to be determined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.10 Td (on a property by property basis, consistent with current market rates\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 203.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 203.10 Td (e elected to be taxed and to operate as a REIT) Tj ET Q q 0 0 0 rg BT 263.70 203.10 Td ( beginning with our taxable year ended December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 505.67 203.10 Td (T) Tj ET Q q 0 0 0 rg BT 511.08 203.10 Td (o maintain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (our qualification as a REIT) Tj ET Q q 0 0 0 rg BT 157.61 191.10 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 49.50 179.10 Td (our REIT) Tj ET Q q 0 0 0 rg BT 87.37 179.10 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 49.50 167.10 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 414.23 167.10 Td ( status depending on our financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (condition and such other factors as our board of directors deems relevant. ) Tj ET Q q 0 0 0 rg BT 345.61 155.10 Td (W) Tj ET Q q 0 0 0 rg BT 354.25 155.10 Td (e have not established a minimum distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (level.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 125.10 Td (Under our charter) Tj ET Q q 0 0 0 rg BT 142.67 125.10 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 49.50 113.10 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 523.92 113.10 Td (, unless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.10 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 89.10 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 89.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.60 89.10 Td ( did not exceed the charter imposed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.10 Td (limitation.) 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 /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 (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.21 689.25 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (had invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.54 677.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.54 677.25 Td ( hotel properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.52 677.25 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.18 677.25 Td ( of) Tj ET Q q 0 0 0 rg BT 224.83 677.25 Td (fice properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.30 677.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.74 677.25 Td ( apartment building, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.06 677.25 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.50 677.25 Td ( investment in an unconsolidated entity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 665.25 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 665.25 Td ( investment in real estate equity securities. ) Tj ET Q q 0 0 0 rg BT 247.49 665.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 297.40 665.25 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.06 665.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.32 665.25 Td (, we had entered into a joint venture to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.66 653.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.09 653.25 Td ( retail property) Tj ET Q q 0 0 0 rg BT 156.86 653.25 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.41 653.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.63 653.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.45 653.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.72 653.25 Td (, net cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.70 653.25 Td (provided by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.75 653.25 Td ( operating activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td ($5.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 641.25 Td (. ) Tj ET Q q 0 0 0 rg BT 105.71 641.25 Td (W) Tj ET Q q 0 0 0 rg BT 114.35 641.25 Td (e expect that our cash flows from operating activities will generally increase in future periods as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (leasing additional space that is currently unoccupied and owning real estate securities acquired during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.36 629.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.36 629.25 Td ( for an entire period.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 611.25 Td (Cash Flows from Investing ) Tj ET Q q 0 0 0 rg BT 163.60 611.25 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 596.25 Td (Net cash used in investing activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.13 596.25 Td ($14.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.02 596.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.40 596.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.62 596.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.44 596.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.71 596.25 Td ( and primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.25 Td (consisted of the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 566.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 566.25 Td ($7.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 566.25 Td ( investment in real estate equity securities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 551.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 551.25 Td ($6.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 551.25 Td ( of improvements to real estate; ) 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 ($4.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 536.25 Td ( of payments for construction in progress; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 521.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 521.25 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 521.25 Td ( of cash received in connection with the real estate loan receivable payof) Tj ET Q q 0 0 0 rg BT 429.13 521.25 Td (f; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 506.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 506.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 506.25 Td ( of proceeds from insurance claims.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 485.25 Td (Cash Flows from Financing ) Tj ET Q q 0 0 0 rg BT 168.61 485.25 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 470.25 Td (Net cash provided by financing activities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.67 470.25 Td ($7.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.56 470.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.94 470.25 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.15 470.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.98 470.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.24 470.25 Td ( and primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (consisted of the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 440.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 440.25 Td ($15.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.89 440.25 Td ( of net cash provided by of) Tj ET Q q 0 0 0 rg BT 250.90 440.25 Td (fering proceeds related to our initial public of) Tj ET Q q 0 0 0 rg BT 432.60 440.25 Td (fering, net of payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 428.25 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 364.35 428.25 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.24 428.25 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 413.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 413.25 Td ($3.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 413.25 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 534.89 413.25 Td ($5.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 401.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.89 401.25 Td ( and payments of deferred financing costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.38 401.25 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.28 401.25 Td (, partially of) Tj ET Q q 0 0 0 rg BT 397.25 401.25 Td (fset by proceeds from notes payable of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 389.25 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 389.25 Td (;) 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 ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 374.25 Td ( of cash used for redemptions of common stock; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 359.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 359.25 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 359.25 Td ( of net cash distributions, after giving ef) Tj ET Q q 0 0 0 rg BT 298.67 359.25 Td (fect to distributions reinvested by stockholders of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.91 359.25 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.80 359.25 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 344.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 344.25 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 344.25 Td ( of payments of other of) Tj ET Q q 0 0 0 rg BT 235.07 344.25 Td (fering costs;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 329.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 329.25 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 329.25 Td ( of noncontrolling interest contributions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 314.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 314.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 314.25 Td ( of distributions to noncontrolling interest; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 299.25 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 299.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.89 299.25 Td ( of principal payments on capital lease obligations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 278.25 Td (In order to execute our investment strategy) Tj ET Q q 0 0 0 rg BT 242.96 278.25 Td (, we utilize secured debt and we may) Tj ET Q q 0 0 0 rg BT 390.03 278.25 Td (, to the extent available, utilize unsecured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.25 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 49.50 254.25 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 49.50 242.25 Td (balanced with the benefit of using leverage. ) Tj ET Q q 0 0 0 rg BT 228.97 242.25 Td (W) Tj ET Q q 0 0 0 rg BT 237.61 242.25 Td (e expect our debt financing will be 60% or less of the cost of our tangible assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.25 Td (\(before deducting depreciation or other non-cash reserves\). ) Tj ET Q q 0 0 0 rg BT 290.60 230.25 Td (There is no limitation on the amount we may borrow for any single ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.25 Td (investment. Our charter limits our total liabilities such that our total liabilities may not exceed 75% of the cost of our tangible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (assets \(before deducting depreciation or other non-cash reserves\); however) Tj ET Q q 0 0 0 rg BT 348.42 206.25 Td (, we may exceed that limit if a majority of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (Conflicts Committee approves each borrowing in excess of our charter limitation and we disclose such borrowing to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.25 Td (common stockholders in our next quarterly report with an explanation from the conflicts committee of the justification for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.25 Td (excess borrowing. ) Tj ET Q q 0 0 0 rg BT 126.71 170.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.15 170.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.41 170.25 Td (, our borrowings and other liabilities were approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.19 170.25 Td (59%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.52 170.25 Td ( of the cost \(before ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.25 Td (depreciation and other noncash reserves\) and book value \(before depreciation\) of our tangible assets.) 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 /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 (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.71 686.25 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 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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 ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 281.25 623.21 Td (328,939) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 320.50 623.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 351.75 623.21 Td (61,176) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.50 623.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 408.25 623.21 Td (173,593) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.50 623.21 Td ($) 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 (27,537) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.25 607.21 Td (3,771) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.75 607.21 Td (17,801) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.25 607.21 Td (5,965) 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 (Capital lease obligations) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.75 591.21 Td (56,976) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.00 591.21 Td (150) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 417.25 591.21 Td (1,315) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.25 591.21 Td (1,670) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 591.21 Td (53,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.25 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 566.27 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 562.65 Td ( ) Tj ET Q q 0 0 0 rg BT 57.12 562.65 Td (Amounts include principal payments only) Tj ET Q q 0 0 0 rg BT 190.80 562.65 Td (. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 553.67 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 550.05 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 371.10 550.05 Td (fect at ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.86 550.05 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.07 550.05 Td (. ) Tj ET Q q 0 0 0 rg BT 462.93 550.05 Td (W) Tj ET Q q 0 0 0 rg BT 469.84 550.05 Td (e incurred interest expense ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 540.45 Td (of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.16 540.45 Td ($12.4 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.28 540.45 Td (, excluding amortization of deferred financing costs of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 277.44 540.45 Td ($1.3 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 316.55 540.45 Td ( and unrealized ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.41 540.45 Td (gain) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.19 540.45 Td ( on interest rate cap of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.49 540.45 Td ($1) Tj ET Q q 0 0 0 rg BT 462.19 540.45 Td (1,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.19 540.45 Td ( and including interest ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 530.85 Td (capitalized of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 94.81 530.85 Td ($3.9 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 133.92 530.85 Td ( for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 159.02 530.85 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 172.80 530.85 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 221.46 530.85 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 285.67 530.85 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 506.85 Td (Results of Operations) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 488.85 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 473.85 Td ( ) Tj ET Q q 0 0 0 rg BT 73.95 473.85 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 473.85 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.66 473.85 Td (, we had invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.86 473.85 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.86 473.85 Td ( hotel properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.84 473.85 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.82 473.85 Td ( of) Tj ET Q q 0 0 0 rg BT 376.47 473.85 Td (fice properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.94 473.85 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.38 473.85 Td ( apartment building, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.70 473.85 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.14 473.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.85 Td (investment in an unconsolidated entity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.35 461.85 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.79 461.85 Td ( first mortgage loan. ) Tj ET Q q 0 0 0 rg BT 320.83 461.85 Td (Additionally) Tj ET Q q 0 0 0 rg BT 370.73 461.85 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.39 461.85 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 461.85 Td (, we had entered into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 449.85 Td (a joint venture to develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.19 449.85 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.63 449.85 Td ( retail property) Tj ET Q q 0 0 0 rg BT 227.40 449.85 Td (. ) Tj ET Q q 0 0 0 rg BT 231.85 449.85 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.29 449.85 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.56 449.85 Td (, we had invested in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.76 449.85 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.76 449.85 Td ( hotel properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.74 449.85 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.40 449.85 Td ( of) Tj ET Q q 0 0 0 rg BT 531.05 449.85 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.85 Td (properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.49 437.85 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.92 437.85 Td ( apartment building, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.24 437.85 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.68 437.85 Td ( investment in an unconsolidated entity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.03 437.85 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.47 437.85 Td ( investment in real estate equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.85 Td (securities. ) Tj ET Q q 0 0 0 rg BT 91.71 425.85 Td (Additionally) Tj ET Q q 0 0 0 rg BT 141.61 425.85 Td (, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.27 425.85 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.54 425.85 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 439.31 425.85 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.75 425.85 Td ( retail property) Tj ET Q q 0 0 0 rg BT 512.52 425.85 Td (. ) Tj ET Q q 0 0 0 rg BT 517.34 425.85 Td (W) Tj ET Q q 0 0 0 rg BT 525.97 425.85 Td (e funded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.85 Td (the acquisitions of these investments with proceeds from our terminated of) Tj ET Q q 0 0 0 rg BT 348.13 413.85 Td (ferings and debt financing. Our results of operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.85 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 401.85 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.36 401.85 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.80 401.85 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.02 401.85 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.84 401.85 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.11 401.85 Td ( are not indicative of those in future periods as we commenced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.85 Td (operations on September 4, 2014 in connection with our first investment and we have acquired additional investments since that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.85 Td (time. In general, we expect that our revenue and expenses related to our portfolio will increase in future periods as our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.85 Td (development of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.48 365.85 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.92 365.85 Td ( retail property is completed and the occupancies at our properties stabilize as discussed below) Tj ET Q q 0 0 0 rg BT 506.48 365.85 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.85 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.40 353.85 Td (, our investment objectives include acquiring properties with significant possibilities for short-term capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.85 Td (appreciation, such as non-stabilized properties, properties with moderate vacancies or near) Tj ET Q q 0 0 0 rg BT 411.38 341.85 Td (-term lease rollovers, poorly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.85 Td (managed and positioned properties, properties owned by distressed sellers and built-to-suit properties. ) Tj ET Q q 0 0 0 rg BT 461.91 329.85 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.35 329.85 Td (September 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.85 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 317.85 Td (, the occupancy in our properties has not been stabilized. However) Tj ET Q q 0 0 0 rg BT 335.12 317.85 Td (, due to the amount of near) Tj ET Q q 0 0 0 rg BT 442.39 317.85 Td (-term lease expirations, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.85 Td (do not put significant emphasis on quarterly changes in occupancy \(positive or negative\) in the short run. Our underwriting and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.85 Td (valuations are generally more sensitive to “terminal values” that may be realized upon the disposition of the assets in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.85 Td (portfolio and less sensitive to ongoing cash flows generated by the portfolio in the years leading up to an eventual sale. ) Tj ET Q q 0 0 0 rg BT 527.53 281.85 Td (There ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.85 Td (are no guarantees that occupancies of our assets will increase, or that we will recognize a gain on the sale of our assets. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.85 Td (general, we expect that our income and expenses related to our portfolio will increase in future periods as a result of leasing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.85 Td (additional space and improving our properties but decrease due to disposition activity) Tj ET Q q 0 0 0 rg BT 391.26 245.85 Td (.) 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 /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 309.099609375 702.7669921875 l s q 0 0 0 rg BT 229.39 704.10 Td (September 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 309.099609375 702.7669921875 m 354.3681640625 702.7669921875 l s q 0 0 0 rg BT 309.10 704.10 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 354.3681640625 702.7669921875 m 374.5439453125 702.7669921875 l s q 0 0 0 rg BT 354.37 704.10 Td (thr) Tj ET Q q 0 0 0 rg BT 365.67 704.10 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 374.5439453125 702.7669921875 m 434.8125 702.7669921875 l s q 0 0 0 rg BT 374.54 704.10 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 434.8125 702.7669921875 m 514.51953125 702.7669921875 l s q 0 0 0 rg BT 434.81 704.10 Td (September 30, 2017) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 514.52 704.10 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 49.50 677.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 677.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.20 677.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.20 677.10 Td ( \(dollar amounts in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 624.60 179.00 -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 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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 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 417.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 417.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 417.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 417.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 417.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 417.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 417.60 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 251.60 646.83 Td (September) Tj ET Q q 0 0 0 rg BT 288.33 646.83 Td ( 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 ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 615.85 Td (7,515) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 281.50 615.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 615.85 Td (4,218) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 326.50 615.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 615.85 Td (3,297) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 615.85 Td (78) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 615.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 424.50 615.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.80 615.85 Td (3,256) 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 551.80 615.85 Td (41) 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 (10,461) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 294.75 602.85 Td (12,160) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 345.10 602.85 Td (\(1,699) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 602.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.45 602.85 Td (\(14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.15 602.85 Td (\)%) 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 539.10 602.85 Td (\(1,699) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 602.85 Td (\)) 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 (1,940) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 589.85 Td (1,746) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 589.85 Td (194) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 589.85 Td (1) Tj ET Q q 0 0 0 rg BT 404.15 589.85 Td (1) 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 (194) 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 (77) 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 (77) 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 (77) 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 (103) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 563.85 Td (\(103) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 563.85 Td (\)) 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 (\(103) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 563.85 Td (\)) 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 (3,241) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 550.85 Td (1,536) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 550.85 Td (1,705) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.15 550.85 Td (1) Tj ET Q q 0 0 0 rg BT 400.15 550.85 Td (1) Tj ET Q q 0 0 0 rg BT 404.15 550.85 Td (1) 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 (1,826) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 550.85 Td (\(121) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 550.85 Td (\)) 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 (6,106) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 537.85 Td (5,807) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 537.85 Td (299) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.15 537.85 Td (5) 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 547.80 537.85 Td (299) 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 (976) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 524.85 Td (1,026) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 524.85 Td (\(50) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 524.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.45 524.85 Td (\(5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.15 524.85 Td (\)%) 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 549.10 524.85 Td (\(50) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 524.85 Td (\)) 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 253.75 512.55 Td (1,020) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 512.55 Td (739) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 512.55 Td (281) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 512.55 Td (38) 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 (243) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 512.55 Td (38) 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 (704) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 499.85 Td (1,146) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 499.85 Td (\(442) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 499.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.45 499.85 Td (\(39) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.15 499.85 Td (\)%) 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 (5,150) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 486.85 Td (3,709) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 486.85 Td (1,441) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 486.85 Td (39) 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 (1,298) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 486.85 Td (143) 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 (3,435) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 473.85 Td (2,255) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 473.85 Td (1,180) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 473.85 Td (52) 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 469.80 473.85 Td (1,012) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 473.85 Td (168) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 460.85 Td (Impairment char) Tj ET Q q 0 0 0 rg BT 105.44 460.85 Td (ge on real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 460.85 Td (4,245) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 460.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 460.85 Td (4,245) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.70 460.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 460.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 460.85 Td (4,245) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 447.85 Td (Other interest income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 447.85 Td (105) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 447.85 Td (178) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.10 447.85 Td (\(73) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 447.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.45 447.85 Td (\(41) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.15 447.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.70 447.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 447.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 434.85 Td (Equity in income of unconsolidated entity) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.80 434.85 Td (94) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 434.85 Td (14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 357.80 434.85 Td (80) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.15 434.85 Td (571) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 434.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 434.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 434.85 Td (80) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 421.85 Td (Loss on real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.10 421.85 Td (\(486) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 271.80 421.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 421.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 421.85 Td (\(486) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 421.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.70 421.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.10 421.85 Td (\(486) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 421.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 421.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 408.85 Td (Income tax expense) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.80 408.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 302.10 408.85 Td (\(431) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 316.80 408.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 408.85 Td (431) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 393.45 408.85 Td (\(100) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.15 408.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 408.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 408.85 Td (431) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 384.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 380.50 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 380.50 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.25 380.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.91 380.50 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 368.12 380.50 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.65 380.50 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.64 380.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 380.50 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.51 380.50 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 370.90 Td (related to real 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 323.59 370.90 Td (July) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 336.92 370.90 Td ( 1, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 346.92 370.90 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 362.92 370.90 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 361.93 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 358.30 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 358.30 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 255.25 358.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.91 358.30 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 368.12 358.30 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.65 358.30 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.64 358.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.30 358.30 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.51 358.30 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 348.70 Td (with respect 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 70.50 324.70 Td (Of) Tj ET Q q 0 0 0 rg BT 80.87 324.70 Td (fice revenues increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.59 324.70 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.48 324.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.85 324.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.84 324.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.67 324.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.93 324.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.71 324.70 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.60 324.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.98 324.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.96 324.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.70 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 312.70 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 312.70 Td ( primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 437.83 312.70 Td (W) Tj ET Q q 0 0 0 rg BT 446.47 312.70 Td (e expect of) Tj ET Q q 0 0 0 rg BT 490.15 312.70 Td (fice revenues to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.70 Td (vary in future periods based on occupancy rates and rental rates of our of) Tj ET Q q 0 0 0 rg BT 341.15 300.70 Td (fice properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 282.70 Td (Hotel revenues decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.11 282.70 Td ($12.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.00 282.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.38 282.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.36 282.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.19 282.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.45 282.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.23 282.70 Td ($10.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.12 282.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.50 282.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.48 282.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.70 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 270.70 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 270.70 Td ( primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.52 270.70 Td ($5.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.41 270.70 Td ( of business interruption insurance recovery recorded in hotel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.70 Td (revenues during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.86 258.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.85 258.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.67 258.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.94 258.70 Td (, partially of) Tj ET Q q 0 0 0 rg BT 340.91 258.70 Td (fset by the impact of Hurricane Matthew in October ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.70 Td (2016, the result of which placed certain 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 452.72 246.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.71 246.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 234.70 Td (. ) Tj ET Q q 0 0 0 rg BT 134.58 234.70 Td (W) Tj ET Q q 0 0 0 rg BT 143.22 234.70 Td (e expect hotel revenues to 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 72.00 216.70 Td (Dividend income from real estate equity securities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.15 216.70 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.04 216.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.42 216.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.40 216.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.23 216.70 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.49 216.70 Td (. ) Tj ET Q q 0 0 0 rg BT 540.31 216.70 Td (W) Tj ET Q q 0 0 0 rg BT 548.95 216.70 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.70 Td (expect dividend income from real estate equity securities to vary in future periods as a result of declaration of dividends and to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 192.70 Td (the extent we buy or sell any securities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 174.70 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 451.46 174.70 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.35 174.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.73 174.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.72 174.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.70 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 162.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 162.70 Td (. ) Tj ET Q q 0 0 0 rg BT 192.91 162.70 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 401.70 162.70 Td (January 12, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 162.70 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 144.70 Td (Of) Tj ET Q q 0 0 0 rg BT 80.87 144.70 Td (fice expenses increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.15 144.70 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.04 144.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.42 144.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.40 144.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.23 144.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.49 144.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.27 144.70 Td ($3.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.16 144.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.54 144.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.52 144.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.70 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 132.70 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 132.70 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 49.50 120.70 Td ($5.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 120.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.77 120.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.75 120.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.58 120.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.84 120.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.62 120.70 Td ($6.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.51 120.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.89 120.70 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.88 120.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.70 120.70 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.96 120.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.70 Td (primarily due to an increase in occupancy rates. ) Tj ET Q q 0 0 0 rg BT 242.85 108.70 Td (W) Tj ET Q q 0 0 0 rg BT 251.49 108.70 Td (e expect total expenses to vary in future periods based on occupancy rates.) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 704.10 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 185.28 704.10 Td (filiate increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.29 704.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.18 704.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.56 704.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.54 704.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.37 704.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.63 704.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.41 704.10 Td ($1.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 692.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.77 692.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.75 692.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.58 692.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.84 692.10 Td ( primarily as a result of the growth of our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 521.14 692.10 Td (W) Tj ET Q q 0 0 0 rg BT 529.78 692.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (expect asset management fees to increase in future periods as a result of any improvements we make to our properties and as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (result of 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 347.75 668.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.75 668.10 Td ( for an entire period. ) Tj ET Q q 0 0 0 rg BT 451.60 668.10 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.65 668.10 Td ($20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.15 668.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (asset management fees incurred were payable as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.62 656.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.89 656.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 638.10 Td (General and administrative expenses decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.74 638.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.63 638.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.01 638.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.00 638.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.82 638.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.08 638.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.86 638.10 Td ($0.7 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 626.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.77 626.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.75 626.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.58 626.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.84 626.10 Td ( primarily as a result of professional fees incurred during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.49 626.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.47 626.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 614.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 614.10 Td ( related to the Hurricane Matthew insurance claim. ) Tj ET Q q 0 0 0 rg BT 393.66 614.10 Td (W) Tj ET Q q 0 0 0 rg BT 402.29 614.10 Td (e expect general and administrative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (expenses to fluctuate based on our legal expenses and investment and disposition activity) Tj ET Q q 0 0 0 rg BT 405.98 602.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 584.10 Td (Depreciation and amortization expenses increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.41 584.10 Td ($3.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.30 584.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.68 584.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.66 584.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.49 584.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.75 584.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td ($5.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 572.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.77 572.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.75 572.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.58 572.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.84 572.10 Td ( primarily due to the growth of our real estate portfolio and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (improvements to real estate for properties held throughout both periods. ) Tj ET Q q 0 0 0 rg BT 339.52 560.10 Td (W) Tj ET Q q 0 0 0 rg BT 348.16 560.10 Td (e expect depreciation and amortization expenses to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (vary in future periods as a result of a decrease in amortization related to fully amortized tenant origination and absorption costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (and increase as a result of improvements to real estate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 518.10 Td (Interest expense increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.88 518.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.78 518.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.15 518.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.14 518.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.96 518.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.23 518.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.01 518.10 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.90 518.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.27 518.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.26 518.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 506.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 506.10 Td ( primarily due to increased borrowings in connection with our acquisition activity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (increased one-month LIBOR rates during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.78 494.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.77 494.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.59 494.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.86 494.10 Td (. Excluded from interest expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 482.10 Td ( of interest capitalized to our construction in progress during each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.13 482.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.12 482.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.94 482.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.21 482.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 470.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 470.10 Td (. Our interest expense in future periods will vary based on our level of future borrowings, which will depend on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (amount of proceeds raised in our ongoing initial public of) Tj ET Q q 0 0 0 rg BT 280.10 458.10 Td (fering, the availability and cost of debt financing and the opportunity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (to acquire real estate and real estate-related investments meeting our investment objectives. ) Tj ET Q q 0 0 0 rg BT 417.23 446.10 Td (The increase in interest expense due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (to increases in LIBOR rates would be minimized to the extent rates are above the strike rates on our interest rate cap ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (instruments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 404.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.05 404.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.03 404.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.86 404.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.12 404.10 Td (, we recorded an impairment char) Tj ET Q q 0 0 0 rg BT 411.32 404.10 Td (ge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.09 404.10 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.98 404.10 Td ( to write-down the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (carrying value of 210 ) Tj ET Q q 0 0 0 rg BT 137.62 392.10 Td (W) Tj ET Q q 0 0 0 rg BT 146.26 392.10 Td (est 31st Street, a development property located in New ) Tj ET Q q 0 0 0 rg BT 367.49 392.10 Td (Y) Tj ET Q q 0 0 0 rg BT 373.71 392.10 Td (ork, New ) Tj ET Q q 0 0 0 rg BT 413.05 392.10 Td (Y) Tj ET Q q 0 0 0 rg BT 419.27 392.10 Td (ork, to its estimated fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td ($58.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 380.10 Td ( due to a change in the projected hold period and related decrease in projected cash flows. ) Tj ET Q q 0 0 0 rg BT 464.73 380.10 Td (W) Tj ET Q q 0 0 0 rg BT 473.37 380.10 Td (e purchased 210 ) Tj ET Q q 0 0 0 rg BT 540.66 380.10 Td (W) Tj ET Q q 0 0 0 rg BT 549.30 380.10 Td (est ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (31st Street for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.66 368.10 Td ($48.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.55 368.10 Td ( plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.22 368.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.11 368.10 Td ( of closing costs. Since acquisition in December 2016, we have capitalized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.13 368.10 Td ($3.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 356.10 Td ( in development costs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.76 356.10 Td ($9.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.65 356.10 Td ( of other certain costs such as financing costs, real estate taxes and insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (costs that have been capitalized to construction in progress.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 326.10 Td (Loss on real estate equity securities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.95 326.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.84 326.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.67 326.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.65 326.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.48 326.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.74 326.10 Td (, primarily as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (result of a decrease in share price of our investment in real estate equity securities.) Tj ET Q endstream endobj 87 0 obj <>] /Rotate 0 /Contents 88 0 R>> endobj 88 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (42) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 72 702.7669921875 m 148.9482421875 702.7669921875 l s q 0 0 0 rg BT 72.00 704.10 Td (Comparison of the ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 148.9482421875 702.7669921875 m 166.1650390625 702.7669921875 l s q 0 0 0 rg BT 148.95 704.10 Td (nine) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 166.1650390625 702.7669921875 m 226.43359375 702.7669921875 l s q 0 0 0 rg BT 166.17 704.10 Td ( months ended ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 226.43359375 702.7669921875 m 306.140625 702.7669921875 l s q 0 0 0 rg BT 226.43 704.10 Td (September 30, 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 306.140625 702.7669921875 m 351.4091796875 702.7669921875 l s q 0 0 0 rg BT 306.14 704.10 Td ( versus the ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 351.4091796875 702.7669921875 m 368.6259765625 702.7669921875 l s q 0 0 0 rg BT 351.41 704.10 Td (nine) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 368.6259765625 702.7669921875 m 428.89453125 702.7669921875 l s q 0 0 0 rg BT 368.63 704.10 Td ( months ended ) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 428.89453125 702.7669921875 m 508.6015625 702.7669921875 l s q 0 0 0 rg BT 428.89 704.10 Td (September 30, 2017) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 508.60 704.10 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 (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.97 689.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 677.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 677.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.20 677.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.20 677.10 Td ( \(dollar amounts in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 624.60 179.00 -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 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 417.60 179.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 417.60 42.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.00 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 417.60 41.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 417.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.00 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 417.60 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 417.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 417.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 417.60 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 241.75 654.83 Td (Nine Months Ended ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 251.60 646.83 Td (September) Tj ET Q q 0 0 0 rg BT 288.33 646.83 Td ( 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 ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 249.75 615.85 Td (22,475) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 281.50 615.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 615.85 Td (7,824) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 326.50 615.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 343.75 615.85 Td (14,651) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.15 615.85 Td (187) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 615.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 424.50 615.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.80 615.85 Td (14,544) 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 547.80 615.85 Td (107) 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 (26,234) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 294.75 602.85 Td (23,473) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 602.85 Td (2,761) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 602.85 Td (12) 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 (2,761) 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 (5,459) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 589.85 Td (5,184) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 589.85 Td (275) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.15 589.85 Td (5) 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 (275) 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 259.75 576.85 Td (1) Tj ET Q q 0 0 0 rg BT 263.75 576.85 Td (13) 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 353.80 576.85 Td (1) Tj ET Q q 0 0 0 rg BT 357.80 576.85 Td (13) 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 475.80 576.85 Td (1) Tj ET Q q 0 0 0 rg BT 479.80 576.85 Td (13) 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 (10) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 563.85 Td (303) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 563.85 Td (\(293) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 563.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.45 563.85 Td (\(97) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.15 563.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.10 563.85 Td (\(293) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 563.85 Td (\)) 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 (8,951) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 550.85 Td (2,713) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 550.85 Td (6,238) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.15 550.85 Td (230) 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 (6,455) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 550.85 Td (\(217) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 550.85 Td (\)) 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 249.75 537.85 Td (17,161) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 294.75 537.85 Td (14,839) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 537.85 Td (2,322) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 537.85 Td (16) 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 (2,322) 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 253.75 524.85 Td (2,858) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 524.85 Td (2,724) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 524.85 Td (134) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.15 524.85 Td (5) 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 (134) 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 253.75 512.55 Td (2,940) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 512.55 Td (1,820) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 512.55 Td (1,120) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 512.55 Td (62) 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 (958) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 512.55 Td (162) 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 253.75 499.85 Td (1,947) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 499.85 Td (2,492) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 499.85 Td (\(545) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 499.85 Td (\)) 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 249.75 486.85 Td (15,322) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 486.85 Td (9,176) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 486.85 Td (6,146) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 486.85 Td (67) 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 (6,382) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 486.85 Td (\(236) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 486.85 Td (\)) 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 (9,740) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.75 473.85 Td (5,798) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 473.85 Td (3,942) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 473.85 Td (68) 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 469.80 473.85 Td (3,614) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 473.85 Td (328) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 460.85 Td (Impairment char) Tj ET Q q 0 0 0 rg BT 105.44 460.85 Td (ge on real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.75 460.85 Td (4,245) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 460.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 347.75 460.85 Td (4,245) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.70 460.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 460.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 460.85 Td (4,245) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 447.85 Td (Other interest income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 447.85 Td (257) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 304.75 447.85 Td (467) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 447.85 Td (\(210) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 447.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.45 447.85 Td (\(45) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 408.15 447.85 Td (\)%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.70 447.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.70 447.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 434.85 Td (Equity in income of unconsolidated entity) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.75 434.85 Td (225) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 434.85 Td (40) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.80 434.85 Td (185) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 396.15 434.85 Td (463) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 434.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 434.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 434.85 Td (185) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 421.85 Td (Loss on real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 257.10 421.85 Td (\(172) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 271.80 421.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.80 421.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 351.10 421.85 Td (\(172) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.80 421.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.70 421.85 Td (n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 473.10 421.85 Td (\(172) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.80 421.85 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 421.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 408.85 Td (Income tax benefit) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 267.80 408.85 Td (9) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.80 408.85 Td (5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.80 408.85 Td (4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 400.15 408.85 Td (80) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.75 408.85 Td (%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 479.80 408.85 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 555.80 408.85 Td (4) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 384.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 380.50 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 380.50 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.03 380.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.69 380.50 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.90 380.50 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.44 380.50 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.21 380.50 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.87 380.50 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.08 380.50 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 370.90 Td (related to real 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 323.59 370.90 Td (January) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 348.46 370.90 Td ( 1, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.46 370.90 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.46 370.90 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 361.93 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 358.30 Td ( Represents the dollar amount increase \(decrease\) for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 239.26 358.30 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.03 358.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 301.69 358.30 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 365.90 358.30 Td ( compared to the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.44 358.30 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.21 358.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.87 358.30 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.08 358.30 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 348.70 Td (with respect 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 70.50 324.70 Td (Of) Tj ET Q q 0 0 0 rg BT 80.87 324.70 Td (fice revenues increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.59 324.70 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.48 324.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.85 324.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.07 324.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.90 324.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.16 324.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.94 324.70 Td ($22.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.83 324.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.21 324.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.42 324.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.70 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 312.70 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 312.70 Td ( primarily as a result of the growth in our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 437.83 312.70 Td (W) Tj ET Q q 0 0 0 rg BT 446.47 312.70 Td (e expect of) Tj ET Q q 0 0 0 rg BT 490.15 312.70 Td (fice revenues to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.70 Td (vary in future periods based on occupancy rates and rental rates of our of) Tj ET Q q 0 0 0 rg BT 341.15 300.70 Td (fice properties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 282.70 Td (Hotel revenues increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.45 282.70 Td ($23.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.34 282.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.71 282.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.93 282.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.76 282.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.02 282.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.80 282.70 Td ($26.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.69 282.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.07 282.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.28 282.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.70 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 270.70 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 270.70 Td ( primarily due to the impact of Hurricane Matthew in October 2016, the result of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.70 Td (placed certain 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 350.52 258.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.74 258.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.56 258.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.83 258.70 Td (. ) Tj ET Q q 0 0 0 rg BT 513.65 258.70 Td (W) Tj ET Q q 0 0 0 rg BT 522.28 258.70 Td (e expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.70 Td (hotel revenues to 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 70.50 228.70 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 497.26 228.70 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.15 228.70 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.70 Td (the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.22 216.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.43 216.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.26 216.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.52 216.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.30 216.70 Td ($10,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.80 216.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.18 216.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.39 216.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.22 216.70 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.48 216.70 Td ( as a result of the real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.70 Td (estate loan receivable being repaid in full on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.43 204.70 Td (January 12, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.03 204.70 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 186.70 Td (Of) Tj ET Q q 0 0 0 rg BT 80.87 186.70 Td (fice expenses increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.15 186.70 Td ($2.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.04 186.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.42 186.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.63 186.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.46 186.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.72 186.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.50 186.70 Td ($9.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.39 186.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.77 186.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.99 186.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.70 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 174.70 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 174.70 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 49.50 162.70 Td ($14.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 162.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.77 162.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.99 162.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.81 162.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.07 162.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.85 162.70 Td ($17.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.74 162.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.12 162.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.34 162.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.16 162.70 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.43 162.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.70 Td (primarily due to an increase in occupancy rates. ) Tj ET Q q 0 0 0 rg BT 242.85 150.70 Td (W) Tj ET Q q 0 0 0 rg BT 251.49 150.70 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 70.50 132.70 Td (Asset management fees to af) Tj ET Q q 0 0 0 rg BT 185.28 132.70 Td (filiate increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.29 132.70 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.18 132.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.56 132.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.77 132.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.60 132.70 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.86 132.70 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.64 132.70 Td ($2.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.70 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 120.70 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.77 120.70 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.99 120.70 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.81 120.70 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.07 120.70 Td ( primarily as a result of the growth of our real estate portfolio. ) Tj ET Q q 0 0 0 rg BT 518.37 120.70 Td (W) Tj ET Q q 0 0 0 rg BT 527.01 120.70 Td (e expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.70 Td (asset 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 96.70 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 96.70 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.20 96.70 Td ( for an entire period. ) Tj ET Q q 0 0 0 rg BT 416.06 96.70 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.10 96.70 Td ($20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.60 96.70 Td ( of asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.70 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 84.70 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.95 84.70 Td (.) 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 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 ($2.5 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 (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.23 704.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.05 704.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.32 704.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.09 704.10 Td ($1.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 692.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.77 692.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.99 692.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.81 692.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.07 692.10 Td ( primarily as a result of professional fees incurred during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.72 692.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.93 692.10 Td ( months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 680.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.14 680.10 Td ( related to the Hurricane Matthew insurance claim, as well as a foreign currency gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.60 680.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.49 680.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (on our foreign currency forward contract, which is included as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.85 668.10 Td (of) Tj ET Q q 0 0 0 rg BT 322.00 668.10 Td (fset) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.43 668.10 Td ( to general and administrative expenses during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.71 668.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.92 668.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 656.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 656.10 Td (. ) Tj ET Q q 0 0 0 rg BT 192.91 656.10 Td (W) Tj ET Q q 0 0 0 rg BT 201.55 656.10 Td (e expect general and administrative expenses to fluctuate based on our legal expenses and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (investment and disposition activity) Tj ET Q q 0 0 0 rg BT 188.56 644.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 626.10 Td (Depreciation and amortization expenses increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.41 626.10 Td ($9.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.30 626.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.68 626.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.89 626.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.72 626.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.98 626.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td ($15.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 614.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.77 614.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.99 614.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.81 614.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.07 614.10 Td ( primarily due to the growth of our real estate portfolio, partially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 602.10 Td (fset by the ef) Tj ET Q q 0 0 0 rg BT 109.39 602.10 Td (fect of fully amortized assets related to properties held throughout both periods. ) Tj ET Q q 0 0 0 rg BT 430.51 602.10 Td (W) Tj ET Q q 0 0 0 rg BT 439.15 602.10 Td (e expect depreciation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (amortization expenses to vary in future periods as a result of a decrease in amortization related to fully amortized tenant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (origination and absorption costs and increase as a result of improvements to real estate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 560.10 Td (Interest expense increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.88 560.10 Td ($5.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.78 560.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.15 560.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.37 560.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.20 560.10 Td (September 30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.46 560.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.24 560.10 Td ($9.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.13 560.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.51 560.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.72 560.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 548.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 548.10 Td ( primarily due to increased borrowings in connection with our acquisition activity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (increased one-month LIBOR rates during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.78 536.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.00 536.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.82 536.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.09 536.10 Td (. Excluded from interest expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.98 536.10 Td ($3.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 524.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 524.10 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.72 524.10 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 405.82 524.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.04 524.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.86 524.10 Td (September 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 512.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 512.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 512.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 161.60 512.10 Td (. Our interest expense in future periods will vary based on our level of future borrowings, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (will depend on the amount of proceeds raised in our ongoing initial public of) Tj ET Q q 0 0 0 rg BT 356.75 500.10 Td (fering, the availability and cost of debt financing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (and the opportunity to acquire real estate and real estate-related investments meeting our investment objectives. ) Tj ET Q q 0 0 0 rg BT 498.05 488.10 Td (The increase in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (interest expense due to increases in LIBOR rates would be minimized to the extent rates are above the strike rates on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (interest rate cap instruments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 446.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.05 446.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.26 446.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.09 446.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.35 446.10 Td (, we recorded an impairment char) Tj ET Q q 0 0 0 rg BT 408.55 446.10 Td (ge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.32 446.10 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.21 446.10 Td ( to write-down the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (carrying value of 210 ) Tj ET Q q 0 0 0 rg BT 137.62 434.10 Td (W) Tj ET Q q 0 0 0 rg BT 146.26 434.10 Td (est 31st Street, a development property located in New ) Tj ET Q q 0 0 0 rg BT 367.49 434.10 Td (Y) Tj ET Q q 0 0 0 rg BT 373.71 434.10 Td (ork, New ) Tj ET Q q 0 0 0 rg BT 413.05 434.10 Td (Y) Tj ET Q q 0 0 0 rg BT 419.27 434.10 Td (ork, to its estimated fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td ($58.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 422.10 Td ( due to a change in the projected hold period and related decrease in projected cash flows. ) Tj ET Q q 0 0 0 rg BT 464.73 422.10 Td (W) Tj ET Q q 0 0 0 rg BT 473.37 422.10 Td (e purchased 210 ) Tj ET Q q 0 0 0 rg BT 540.66 422.10 Td (W) Tj ET Q q 0 0 0 rg BT 549.30 422.10 Td (est ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (31st Street for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.66 410.10 Td ($48.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.55 410.10 Td ( plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.22 410.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.11 410.10 Td ( of closing costs. Since acquisition in December 2016, we have capitalized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.13 410.10 Td ($3.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 398.10 Td ( in development costs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.76 398.10 Td ($9.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.65 398.10 Td ( of other certain costs such as financing costs, real estate taxes and insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (costs that have been capitalized to construction in progress.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 368.10 Td (Loss on real estate equity securities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.95 368.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.84 368.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.67 368.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.88 368.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.71 368.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.97 368.10 Td (, primarily as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (result of a decrease in share price of our investment in real estate equity securities.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (Funds fr) Tj ET Q q 0 0 0 rg BT 86.27 338.10 Td (om Operations, Modified Funds fr) Tj ET Q q 0 0 0 rg BT 233.04 338.10 Td (om Operations and ) Tj ET Q q 0 0 0 rg BT 317.22 338.10 Td (Adjusted Modified Funds fr) Tj ET Q q 0 0 0 rg BT 436.78 338.10 Td (om Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 320.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 320.10 Td (e believe that funds from operations \(“FFO”\) is a beneficial indicator of the performance of an equity REIT) Tj ET Q q 0 0 0 rg BT 510.02 320.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 308.10 Td (e compute FFO in accordance with the current National ) Tj ET Q q 0 0 0 rg BT 282.79 308.10 Td (Association of Real Estate Investment ) Tj ET Q q 0 0 0 rg BT 437.84 308.10 Td (T) Tj ET Q q 0 0 0 rg BT 443.60 308.10 Td (rusts \(“NAREIT”\) definition. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (FFO represents net income, excluding gains and losses from sales of operating real estate assets \(which can vary among owners ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (of identical assets in similar conditions based on historical cost accounting and useful-life estimates\), impairment losses on real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (estate assets, depreciation and amortization of real estate assets, and adjustments for unconsolidated partnerships and joint ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (ventures. ) Tj ET Q q 0 0 0 rg BT 90.70 260.10 Td (W) Tj ET Q q 0 0 0 rg BT 99.33 260.10 Td (e believe FFO facilitates comparisons of operating performance between periods and among other REIT) Tj ET Q q 0 0 0 rg BT 515.99 260.10 Td (s. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (However) Tj ET Q q 0 0 0 rg BT 85.75 248.10 Td (, our computation of FFO may not be comparable to other REIT) Tj ET Q q 0 0 0 rg BT 341.66 248.10 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 49.50 236.10 Td (NAREIT) Tj ET Q q 0 0 0 rg BT 85.98 236.10 Td ( definition or that interpret the current NAREIT) Tj ET Q q 0 0 0 rg BT 276.57 236.10 Td ( definition dif) Tj ET Q q 0 0 0 rg BT 331.38 236.10 Td (ferently than we do. Our management believes that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 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 49.50 212.10 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 49.50 200.10 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 49.50 188.10 Td (operating results for real estate companies that use historical cost accounting to be insuf) Tj ET Q q 0 0 0 rg BT 400.60 188.10 Td (ficient by themselves. ) Tj ET Q q 0 0 0 rg BT 492.52 188.10 Td (As a result, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (believe that the use of FFO, together with the required GAAP) Tj ET Q q 0 0 0 rg BT 296.02 176.10 Td ( presentations, provides a more complete understanding of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 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 49.50 152.10 Td (involving operating, financing, and investing activities.) 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 72.00 704.10 Td (Changes in accounting rules have resulted in a substantial increase in the number of non-operating and non-cash items ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 692.10 Td (included in the calculation of FFO. ) Tj ET Q q 0 0 0 rg BT 193.92 692.10 Td (As a result, our management also uses modified funds from operations \(“MFFO”\) as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 Td (indicator of our ongoing performance as well as our dividend sustainability) Tj ET Q q 0 0 0 rg BT 349.89 680.10 Td (. MFFO excludes from FFO: acquisition fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 668.10 Td (expenses \(to the extent that such fees and expenses have been recorded as operating expenses\); adjustments related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (contingent purchase price obligations; amounts relating to straight-line rents and amortization of above- and below-market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.10 Td (intangible lease assets and liabilities; accretion of discounts and amortization of premiums on debt investments; amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (closing costs relating to debt investments; impairments of real estate-related investments; mark-to-market adjustments included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (in net income; and gains or losses included in net income for the extinguishment or sale of debt or hedges. ) Tj ET Q q 0 0 0 rg BT 479.22 620.10 Td (W) Tj ET Q q 0 0 0 rg BT 487.85 620.10 Td (e compute MFFO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (in accordance with the definition of MFFO included in the practice guideline issued by the Institute for Portfolio ) Tj ET Q q 0 0 0 rg BT 501.62 608.10 Td (Alternatives ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (\(“IP) Tj ET Q q 0 0 0 rg BT 65.24 596.10 Td (A”\) in November 2010 as interpreted by management. Our computation of MFFO may not be comparable to other REIT) Tj ET Q q 0 0 0 rg BT 549.97 596.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (that do not compute MFFO in accordance with the current IP) Tj ET Q q 0 0 0 rg BT 292.97 584.10 Td (A) Tj ET Q q 0 0 0 rg BT 299.64 584.10 Td ( definition or that interpret the current IP) Tj ET Q q 0 0 0 rg BT 461.72 584.10 Td (A) Tj ET Q q 0 0 0 rg BT 468.39 584.10 Td ( definition dif) Tj ET Q q 0 0 0 rg BT 523.20 584.10 Td (ferently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (than we do. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 554.10 Td (In addition, our management uses an adjusted MFFO \(“Adjusted MFFO”\) as an indicator of our ongoing performance as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (well as our dividend sustainability) Tj ET Q q 0 0 0 rg BT 186.05 542.10 Td (. ) Tj ET Q q 0 0 0 rg BT 193.00 542.10 Td (Adjusted MFFO provides adjustments to reduce MFFO related to operating expenses that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (are capitalized with respect to certain of our investments in undeveloped land. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 512.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 512.10 Td (e believe that MFFO and ) Tj ET Q q 0 0 0 rg BT 184.07 512.10 Td (Adjusted MFFO are helpful as measures of ongoing operating performance because they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 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 49.50 488.10 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 49.50 476.10 Td (from MFFO and ) Tj ET Q q 0 0 0 rg BT 117.56 476.10 Td (Adjusted MFFO provides investors with supplemental performance information that is consistent with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (management’) Tj ET Q q 0 0 0 rg BT 103.37 464.10 Td (s analysis of the operating performance of the portfolio over time, including periods after our acquisition stage. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (MFFO and ) Tj ET Q q 0 0 0 rg BT 95.62 452.10 Td (Adjusted MFFO also exclude non-cash items such as straight-line rental revenue. ) Tj ET Q q 0 0 0 rg BT 425.27 452.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 475.17 452.10 Td (, we believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (MFFO and ) Tj ET Q q 0 0 0 rg BT 95.62 440.10 Td (Adjusted MFFO provide investors with supplemental performance information that is consistent with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (performance indicators and analysis used by management, in addition to net income and cash flows from operating activities as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (defined by GAAP) Tj ET Q q 0 0 0 rg BT 120.60 416.10 Td (, to evaluate the sustainability of our operating performance. MFFO provides comparability in evaluating the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (operating performance of our portfolio with other non-traded REIT) Tj ET Q q 0 0 0 rg BT 317.60 404.10 Td (s which typically have limited lives with short and defined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (acquisition periods and tar) Tj ET Q q 0 0 0 rg BT 155.13 392.10 Td (geted exit strategies. MFFO, or an equivalent measure, is routinely reported by non-traded REIT) Tj ET Q q 0 0 0 rg BT 542.93 392.10 Td (s, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 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 73.50 362.10 Td (FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 142.97 362.10 Td (Adjusted MFFO are non-GAAP) Tj ET Q q 0 0 0 rg BT 271.21 362.10 Td ( financial measures and do not represent net income as defined by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (GAAP) Tj ET Q q 0 0 0 rg BT 75.62 350.10 Td (. Net income as defined by GAAP) Tj ET Q q 0 0 0 rg BT 214.66 350.10 Td ( is the most relevant measure in determining our operating performance because FFO, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (MFFO and ) Tj ET Q q 0 0 0 rg BT 95.62 338.10 Td (Adjusted MFFO include adjustments that investors may deem subjective, such as adding back expenses such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (depreciation and amortization and the other items described above. ) Tj ET Q q 0 0 0 rg BT 321.90 326.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 371.24 326.10 Td (, FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 445.71 326.10 Td (Adjusted MFFO should not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (be considered as alternatives to net income as an indicator of our current and historical operating performance. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 118.97 302.10 Td (Adjusted MFFO do not represent cash flows from operating activities determined in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 552.38 302.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (and should not be considered an indication of our liquidity) Tj ET Q q 0 0 0 rg BT 282.97 290.10 Td (. ) Tj ET Q q 0 0 0 rg BT 290.29 290.10 Td (W) Tj ET Q q 0 0 0 rg BT 298.93 290.10 Td (e believe FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 406.71 290.10 Td (Adjusted MFFO, in addition to net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (income and cash flows from operating activities as defined by GAAP) Tj ET Q q 0 0 0 rg BT 326.10 278.10 Td (, are meaningful supplemental performance measures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 260.10 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 49.50 248.10 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 49.50 236.10 Td (presented. ) Tj ET Q q 0 0 0 rg BT 95.13 236.10 Td (W) Tj ET Q q 0 0 0 rg BT 103.77 236.10 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 72.00 218.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 218.10 Td (Adjustments for straight-line r) Tj ET Q q 0 0 0 rg BT 211.02 218.10 Td (ent. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.24 218.10 Td ( ) Tj ET Q q 0 0 0 rg BT 230.56 218.10 Td (These are adjustments to rental revenue as required by GAAP) Tj ET Q q 0 0 0 rg BT 477.60 218.10 Td ( to recognize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 206.10 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 439.68 206.10 Td (W) Tj ET Q q 0 0 0 rg BT 448.32 206.10 Td (e have excluded these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 194.10 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 90.00 182.10 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 90.00 170.10 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 72.00 155.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 155.10 Td (Amortization of above- and below-market leases.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.64 155.10 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 90.00 143.10 Td (lease related costs that are excluded from FFO, GAAP) Tj ET Q q 0 0 0 rg BT 307.62 143.10 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 90.00 131.10 Td (liabilities diminishes predictably over time and requires that these char) Tj ET Q q 0 0 0 rg BT 372.79 131.10 Td (ges be recognized currently in revenue. Since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 119.10 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 90.00 107.10 Td (believes that by excluding these char) Tj ET Q q 0 0 0 rg BT 237.27 107.10 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 95.10 Td (of the real estate; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 80.10 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 80.10 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 80.10 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 68.10 Td (real estate equity securities. ) Tj ET Q q 0 0 0 rg BT 202.83 68.10 Td (W) Tj ET Q q 0 0 0 rg BT 211.46 68.10 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 56.10 Td (reflect core operating performance. ) 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 73.50 704.10 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 49.50 692.10 Td (which are capitalized with respect to certain renovation projects. ) Tj ET Q q 0 0 0 rg BT 312.26 692.10 Td (W) Tj ET Q q 0 0 0 rg BT 320.90 692.10 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 49.50 680.10 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 49.50 668.10 Td (with GAAP) Tj ET Q q 0 0 0 rg BT 96.63 668.10 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 72.00 650.10 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 499.50 650.10 Td (, is presented in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (the following table, along with our calculations of MFFO and ) Tj ET Q q 0 0 0 rg BT 298.07 638.10 Td (Adjusted MFFO, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.80 638.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.78 638.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.22 638.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.44 638.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 626.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.20 626.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.20 626.10 Td ( \(in thousands\). No conclusions or comparisons should be made from the presentation of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (periods.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 567.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 567.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 567.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 567.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 567.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 567.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 567.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 567.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 567.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 543.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 543.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 543.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 543.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 543.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 543.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 543.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 543.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 543.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 519.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 519.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 519.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 519.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 519.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 519.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 519.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 519.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 519.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 495.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 495.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 495.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 495.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 495.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 495.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 495.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 495.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 495.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 471.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 471.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 471.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 471.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 471.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 471.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 471.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 471.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 471.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 447.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 447.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 447.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 447.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 447.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 447.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 447.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 447.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 447.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 423.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 423.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 423.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 423.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 423.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 423.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 423.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 423.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 423.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 399.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 399.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 399.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 399.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 399.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 399.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 399.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 399.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 399.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 375.60 275.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 375.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.00 375.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.00 375.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 375.60 56.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.00 375.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 375.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 375.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 375.60 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 329 579.6 m 385 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 579.6 m 445 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 579.6 m 504 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 579.6 m 563 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 579.6 m 385 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 567.6 m 385 567.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 579.6 m 389 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 579.6 m 445 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 567.6 m 445 567.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 579.6 m 504 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 567.6 m 504 567.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 579.6 m 508 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 579.6 m 563 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 567.6 m 563 567.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 567.6 m 385 567.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 567.6 m 445 567.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 567.6 m 504 567.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 567.6 m 563 567.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 495.6 m 385 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 495.6 m 445 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 495.6 m 504 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 495.6 m 563 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 495.6 m 385 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 495.6 m 445 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 495.6 m 504 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 495.6 m 563 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 423.6 m 385 423.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 423.6 m 445 423.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 423.6 m 504 423.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 423.6 m 563 423.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 411.6 m 385 411.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 411.6 m 445 411.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 411.6 m 504 411.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 411.6 m 563 411.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 375.6 m 385 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 375.6 m 445 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 375.6 m 504 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 375.6 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 329 375.6 m 385 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 364.6 m 385 364.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329 362.6 m 385 362.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 375.6 m 445 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 364.6 m 445 364.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 362.6 m 445 362.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 375.6 m 504 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 364.6 m 504 364.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 362.6 m 504 362.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 375.6 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 508 364.6 m 563 364.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 362.6 m 563 362.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.70 591.83 Td (For) Tj ET Q q 0 0 0 rg BT 349.07 591.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 363.58 591.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 376.78 591.83 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 362.10 583.83 Td (September) Tj ET Q q 0 0 0 rg BT 398.91 583.83 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.75 591.83 Td (For) Tj ET Q q 0 0 0 rg BT 470.12 591.83 Td ( the Nine Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.10 583.83 Td (September) Tj ET Q q 0 0 0 rg BT 517.91 583.83 Td ( 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.50 571.68 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.50 571.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 571.68 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.00 571.68 Td (2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 559.55 Td (Net) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.05 559.55 Td ( \(loss\) income ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 111.38 559.55 Td (attributable to common stockholders) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.50 559.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 361.10 559.55 Td (\(4,963) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 559.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.50 559.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 559.55 Td (2,893) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.50 559.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.10 559.55 Td (\(8,133) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 559.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.50 559.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 559.55 Td (\(834) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 559.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 547.55 Td (Depreciation of real estate assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 547.55 Td (3,373) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 547.55 Td (2,416) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.80 547.55 Td (9,788) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 547.55 Td (5,870) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 535.55 Td (Amortization of lease-related costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 535.55 Td (1,777) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 535.55 Td (1,293) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.80 535.55 Td (5,534) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 535.55 Td (3,306) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 523.55 Td (Impairment char) Tj ET Q q 0 0 0 rg BT 117.44 523.55 Td (ge on real estate) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 523.55 Td (4,245) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 523.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.80 523.55 Td (4,245) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 523.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 511.55 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 196.04 515.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.10 511.55 Td (\(517) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 511.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.10 511.55 Td (\(166) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 511.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.10 511.55 Td (\(967) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 511.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 511.55 Td (\(534) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 511.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 499.55 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 234.25 503.18 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.10 499.55 Td (\(35) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 499.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 499.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.10 499.55 Td (\(53) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 499.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 499.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 487.55 Td (FFO attributable to common stockholders ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 188.26 491.18 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 487.55 Td (3,880) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 487.55 Td (6,436) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 478.80 487.55 Td (10,414) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 487.55 Td (7,808) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 475.55 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 361.10 475.55 Td (\(1,035) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 475.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.10 475.55 Td (\(953) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 475.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 480.10 475.55 Td (\(3,900) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 475.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 475.55 Td (\(1,293) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 475.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 463.55 Td (Amortization of discounts and closing costs) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 463.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.10 463.55 Td (\(20) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 463.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 463.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 463.55 Td (\(58) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 463.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 451.55 Td (Loss ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 81.61 451.55 Td (on real estate equity securities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.80 451.55 Td (486) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 451.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 488.80 451.55 Td (172) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 551.80 451.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 439.55 Td (Unrealized losses on derivative instruments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 371.10 439.55 Td (\(23) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 439.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.80 439.55 Td (44) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.10 439.55 Td (\(84) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 439.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 439.55 Td (1) Tj ET Q q 0 0 0 rg BT 551.80 439.55 Td (17) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 427.55 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 196.04 431.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 375.10 427.55 Td (\(5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 427.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.10 427.55 Td (\(5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 427.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 490.10 427.55 Td (\(12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 427.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.10 427.55 Td (\(16) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 427.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 415.55 Td (MFFO attributable to common stockholders ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 195.38 419.18 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 415.55 Td (3,303) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 415.55 Td (5,502) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.80 415.55 Td (6,590) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 415.55 Td (6,558) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 403.55 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 184.45 407.18 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 367.10 403.55 Td (\(298) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 381.80 403.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.10 403.55 Td (\(159) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 403.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.10 403.55 Td (\(998) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.80 403.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 545.10 403.55 Td (\(446) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 403.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 391.55 Td (Casualty-related income, net ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 158.24 395.18 Td (\(5\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 391.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 421.10 391.55 Td (\(1,614) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 441.80 391.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 391.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.10 391.55 Td (\(1,614) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 559.80 391.55 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 379.55 Td (Adjustments for noncontrolling interests - consolidated entity ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 263.36 383.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 373.80 379.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.80 379.55 Td (161) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.80 379.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.80 379.55 Td (161) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 367.55 Td (Adjusted MFFO attributable to common stockholders ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 226.26 371.18 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.50 367.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.80 367.55 Td (3,005) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.50 367.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 423.80 367.55 Td (3,890) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.50 367.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 482.80 367.55 Td (5,592) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 510.50 367.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 367.55 Td (4,659) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 343.13 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 339.50 Td ( Reflects adjustments to eliminate the noncontrolling interest holders’) Tj ET Q q 0 0 0 rg BT 278.03 339.50 Td ( share of the adjustments to convert our ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 406.44 339.50 Td (net \(loss\) income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 461.54 339.50 Td ( attributable to common ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 329.90 Td (stockholders to FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 155.73 329.90 Td (Adjusted MFFO.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 320.93 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 317.30 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 378.59 317.30 Td (net \(loss\) income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 433.69 317.30 Td ( attributable to common stockholders to ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 307.70 Td (FFO for our equity investment in an unconsolidated entity) Tj ET Q q 0 0 0 rg BT 235.18 307.70 Td (.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 298.73 Td (\(3\)) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 55.56 295.10 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.81 295.10 Td (FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 112.39 295.10 Td (Adjusted MFFO includes ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 195.72 295.10 Td ($5.5 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 234.84 295.10 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 250.39 295.10 Td ($5.8 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.50 295.10 Td ( of business interruption insurance recovery for the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 454.78 295.10 Td (three) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 470.77 295.10 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.32 295.10 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.09 295.10 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 285.50 Td (September 30, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 113.71 285.50 Td (, respectively) Tj ET Q q 0 0 0 rg BT 155.84 285.50 Td (. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 276.52 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.56 272.90 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 49.50 263.30 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 493.06 263.30 Td ( and not reflected in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 253.70 Td (our ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 62.16 253.70 Td (net \(loss\) income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 117.26 253.70 Td (, FFO and MFFO. ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 244.73 Td (\(5\)) Tj ET Q BT /F1 5.00 Tf ET q 0 0 0 rg BT 55.56 241.10 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.81 241.10 Td (Reflects property damages and insurance recoveries related to the impact of Hurricane Matthew at the Springmaid Beach Resort. ) Tj ET Q q 0 0 0 rg BT 471.40 241.10 Td (W) Tj ET Q q 0 0 0 rg BT 478.31 241.10 Td (e exclude them from ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 231.50 Td (Adjusted MFFO to more appropriately present the ongoing operating performance of our real estate investments on a comparative basis. ) Tj ET Q q 0 0 0 rg BT 487.90 231.50 Td (W) Tj ET Q q 0 0 0 rg BT 494.81 231.50 Td (e believe this ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 221.90 Td (exclusion is useful to investors as it allows investors to more accurately evaluate the sustainability of our operating performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 197.90 Td (FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 141.47 197.90 Td (Adjusted MFFO may also be used to fund all or a portion of certain capitalizable items that are excluded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.90 Td (from FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 140.91 185.90 Td (Adjusted MFFO, such as tenant improvements, building improvements and deferred leasing costs. ) Tj ET Q q 0 0 0 rg BT 538.99 185.90 Td (W) Tj ET Q q 0 0 0 rg BT 547.63 185.90 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.90 Td (expect FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 147.56 173.90 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 49.50 161.90 Td (and acquire additional assets. ) Tj ET Q q 0 0 0 rg BT 169.00 161.90 Td (W) Tj ET Q q 0 0 0 rg BT 177.64 161.90 Td (e expect FFO, MFFO and ) Tj ET Q q 0 0 0 rg BT 282.64 161.90 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 49.50 143.90 Td (Organization and Offering Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 125.90 Td (Our or) Tj ET Q q 0 0 0 rg BT 98.20 125.90 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 167.44 125.90 Td (fering costs \(other than selling commissions, dealer manager fees and the stockholder servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.90 Td (fee\) were paid by our advisor) Tj ET Q q 0 0 0 rg BT 166.55 113.90 Td (, the dealer manager or their af) Tj ET Q q 0 0 0 rg BT 289.36 113.90 Td (filiates on our behalf or paid directly by us. ) Tj ET Q q 0 0 0 rg BT 467.19 113.90 Td (These of) Tj ET Q q 0 0 0 rg BT 501.71 113.90 Td (fering costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.90 Td (include all expenses incurred in connection with our of) Tj ET Q q 0 0 0 rg BT 269.25 101.90 Td (ferings. Or) Tj ET Q q 0 0 0 rg BT 314.89 101.90 Td (ganization costs include all expenses incurred in connection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.90 Td (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 71.90 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 71.90 Td (e recorded $1.0 million of of) Tj ET Q q 0 0 0 rg BT 195.42 71.90 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 59.90 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 59.90 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 59.90 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 47.90 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 47.90 Td (fering.) 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 (During our initial public of) Tj ET Q q 0 0 0 rg BT 180.13 704.10 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 49.50 692.10 Td (reimburse our advisor) Tj ET Q q 0 0 0 rg BT 136.85 692.10 Td (, the dealer manager or their af) Tj ET Q q 0 0 0 rg BT 259.66 692.10 Td (filiates, as applicable, for or) Tj ET Q q 0 0 0 rg BT 371.10 692.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 463.39 692.10 Td (fering costs paid by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 680.10 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 49.50 668.10 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 668.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 126.89 668.10 Td (fering expenses incurred by us in connection with our initial public of) Tj ET Q q 0 0 0 rg BT 405.80 668.10 Td (fering \(including selling commissions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 656.10 Td (dealer manager fees and the stockholder servicing fees\) 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 49.50 644.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 644.10 Td (fering as of the date of reimbursement. In addition, our advisor and its af) Tj ET Q q 0 0 0 rg BT 348.22 644.10 Td (filiates reimbursed us to the extent that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.10 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 632.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 149.93 632.10 Td (fering expenses \(which exclude selling commissions, dealer manager fees and stockholder servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.10 Td (fees\) 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 451.72 620.10 Td (fering, regardless of when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.10 Td (incurred, exceeded 1.0% of gross of) Tj ET Q q 0 0 0 rg BT 193.43 608.10 Td (fering proceeds from the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 448.18 608.10 Td (fering. Our advisor and its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 596.10 Td (filiates are responsible for any or) Tj ET Q q 0 0 0 rg BT 188.80 596.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 281.09 596.10 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 49.50 584.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 584.10 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 447.91 584.10 Td (fering as of the termination ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (of the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 228.72 572.10 Td (fering. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 554.10 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 554.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.20 554.10 Td (, our advisor and its af) Tj ET Q q 0 0 0 rg BT 278.45 554.10 Td (filiates had incurred or) Tj ET Q q 0 0 0 rg BT 369.06 554.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 461.35 554.10 Td (fering costs \(which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (exclude selling commissions dealer manager fees and stockholder servicing fees\) on our behalf in connection with our initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (public of) Tj ET Q q 0 0 0 rg BT 85.14 530.10 Td (fering of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.61 530.10 Td ($10.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.50 530.10 Td (. ) Tj ET Q q 0 0 0 rg BT 240.95 530.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.39 530.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.66 530.10 Td (, we had recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.23 530.10 Td ($14.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.12 530.10 Td ( in selling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (commissions and dealer manager fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.55 518.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.44 518.10 Td ( of stockholder servicing fees. ) Tj ET Q q 0 0 0 rg BT 391.63 518.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.07 518.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.34 518.10 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.10 Td (recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.98 506.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.87 506.10 Td ( of other or) Tj ET Q q 0 0 0 rg BT 180.39 506.10 Td (ganization and of) Tj ET Q q 0 0 0 rg BT 249.63 506.10 Td (fering expenses, which amounts represent our maximum liability for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 494.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 149.93 494.10 Td (fering costs based on the 1.0% limitation described above.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (Distributions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 458.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.41 458.10 Td (o maintain our qualification as a REIT) Tj ET Q q 0 0 0 rg BT 230.51 458.10 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 49.50 446.10 Td (of our REIT) Tj ET Q q 0 0 0 rg BT 98.20 446.10 Td ( taxable income \(which is computed without regard to the dividends paid deduction or net capital gain and which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (does not necessarily equal net income as calculated in accordance with GAAP\). If we meet the REIT) Tj ET Q q 0 0 0 rg BT 452.78 434.10 Td ( qualification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 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 49.50 410.10 Td (year) Tj ET Q q 0 0 0 rg BT 66.16 410.10 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 454.49 410.10 Td ( taxable income so that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 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 49.50 386.10 Td (required for us to maintain REIT) Tj ET Q q 0 0 0 rg BT 180.67 386.10 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 49.50 374.10 Td (deems relevant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 356.10 Td (From time to time during our operational stage, we may not pay distributions solely from our cash flow from operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (activities, in which case distributions may be paid in whole or in part from debt financing. Distributions declared, distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (paid and cash flow provided by operations were as follows for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.09 332.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.20 332.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.20 332.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.97 332.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.41 332.10 Td (third) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.29 332.10 Td ( quarters of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.33 332.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.33 332.10 Td ( \(in thousands, except ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (per share amounts\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 267.60 79.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 129.00 267.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 133.00 267.60 54.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 187.00 267.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 191.00 267.60 69.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.00 267.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.00 267.60 69.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 267.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 267.60 53.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 267.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 267.60 54.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 267.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 267.60 53.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 267.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 267.60 54.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 245.60 79.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 129.00 245.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 133.00 245.60 54.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 187.00 245.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 191.00 245.60 69.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.00 245.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.00 245.60 69.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 333.00 245.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 245.60 53.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 245.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 245.60 54.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 245.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 245.60 53.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 245.60 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 245.60 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 337 280.6 m 390 280.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 280.6 m 394 280.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 280.6 m 448 280.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 280.6 m 452 280.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 280.6 m 505 280.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 267.6 m 129 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133 267.6 m 187 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 267.6 m 260 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 267.6 m 333 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 267.6 m 390 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 267.6 m 448 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 267.6 m 505 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 267.6 m 563 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 267.6 m 129 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133 267.6 m 187 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 267.6 m 390 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 267.6 m 448 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 267.6 m 563 267.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133 234.60000000000002 m 187 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133 234.60000000000002 m 187 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133 224.60000000000002 m 187 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 133 222.60000000000002 m 187 222.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 234.60000000000002 m 260 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 224.60000000000002 m 260 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 222.60000000000002 m 260 222.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 234.60000000000002 m 333 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 224.60000000000002 m 333 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 222.60000000000002 m 333 222.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 234.60000000000002 m 390 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 224.60000000000002 m 390 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 222.60000000000002 m 390 222.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 234.60000000000002 m 448 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 224.60000000000002 m 448 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 222.60000000000002 m 448 222.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 234.60000000000002 m 505 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 224.60000000000002 m 505 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 222.60000000000002 m 505 222.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 234.60000000000002 m 563 234.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 224.60000000000002 m 563 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 222.60000000000002 m 563 222.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 284.85 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 137.05 279.83 Td (Distributions ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 140.20 271.83 Td (Declar) Tj ET Q q 0 0 0 rg BT 162.71 271.83 Td (ed ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 172.71 275.46 Td (\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 202.55 287.83 Td (Distributions ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 202.80 279.83 Td (Declar) Tj ET Q q 0 0 0 rg BT 225.31 279.83 Td (ed Per) Tj ET Q q 0 0 0 rg BT 247.15 279.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 195.40 271.83 Td (Class ) Tj ET Q q 0 0 0 rg BT 215.19 271.83 Td (A) Tj ET Q q 0 0 0 rg BT 220.52 271.83 Td ( Shar) Tj ET Q q 0 0 0 rg BT 238.83 271.83 Td (e) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 242.38 275.46 Td (\(1\)\(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 275.55 287.83 Td (Distributions ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 275.80 279.83 Td (Declar) Tj ET Q q 0 0 0 rg BT 298.31 279.83 Td (ed Per) Tj ET Q q 0 0 0 rg BT 320.15 279.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 268.35 271.83 Td (Class ) Tj ET Q q 0 0 0 rg BT 288.43 271.83 Td (T) Tj ET Q q 0 0 0 rg BT 293.62 271.83 Td ( Shar) Tj ET Q q 0 0 0 rg BT 311.93 271.83 Td (e) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 315.48 275.46 Td (\(1\)\(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.20 284.83 Td (Distributions Paid ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 449.66 288.46 Td (\(3\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.80 295.68 Td (Cash Flows) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.05 287.68 Td (\(Used in\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.75 279.68 Td (Pr) Tj ET Q q 0 0 0 rg BT 523.12 279.68 Td (ovided by) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.35 271.68 Td (Operations) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 77.65 271.83 Td (Period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.30 271.83 Td (Cash) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.80 271.83 Td (Reinvested) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.25 271.83 Td (T) Tj ET Q q 0 0 0 rg BT 473.85 271.83 Td (otal) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 259.90 Td (First Quarter 2018) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 135.50 259.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 167.10 259.90 Td (1,082) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 193.50 259.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 240.10 259.90 Td (0.047) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 266.50 259.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 313.10 259.90 Td (0.024) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 339.50 259.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 375.75 259.90 Td (407) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 396.50 259.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 433.75 259.90 Td (665) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 454.50 259.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 485.10 259.90 Td (1,072) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 511.50 259.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 540.60 259.90 Td (\(1,928) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 560.00 259.90 Td (\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 52.50 248.90 Td (Second Quarter 2018) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 167.10 248.90 Td (1,124) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 240.10 248.90 Td (0.048) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 313.10 248.90 Td (0.025) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 375.75 248.90 Td (435) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 433.75 248.90 Td (691) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 485.10 248.90 Td (1,126) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 543.10 248.90 Td (4,494) Tj ET Q BT /F1 7.50 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 52.50 243.10 58.32 -6.82 re f /GS0 gs q 0 0 0 rg BT 52.50 237.90 Td (Third Quarter 2018) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 167.10 237.90 Td (1,349) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 240.10 237.90 Td (0.048) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 313.10 237.90 Td (0.041) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 375.75 237.90 Td (480) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 433.75 237.90 Td (770) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 485.10 237.90 Td (1,250) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 543.10 237.90 Td (3,037) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 135.50 226.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 167.10 226.90 Td (3,555) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 193.50 226.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 240.10 226.90 Td (0.143) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 266.50 226.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 313.10 226.90 Td (0.090) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 339.50 226.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 370.10 226.90 Td (1,322) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 396.50 226.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 428.10 226.90 Td (2,126) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 454.50 226.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 485.10 226.90 Td (3,448) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 511.50 226.90 Td ($) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 543.10 226.90 Td (5,603) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 49.50 203.13 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 199.50 Td (Distributions for the period from January 1, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 198.61 199.50 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 214.61 199.50 Td ( through ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 243.50 199.50 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 307.71 199.50 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 49.50 189.90 Td ($0.00052548) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 91.50 189.90 Td ( per 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 49.50 180.92 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 177.30 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 49.50 168.33 Td (\(3\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 56.86 164.70 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 49.50 155.10 Td (month.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 131.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.61 131.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.83 131.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.65 131.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.91 131.10 Td (, we paid aggregate distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.49 131.10 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.38 131.10 Td ( including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 131.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.04 131.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (distributions paid in cash and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.21 119.10 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.10 119.10 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 508.88 119.10 Td (net loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.16 119.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (attributable to common stockholders for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.23 107.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.45 107.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.28 107.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.54 107.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.09 107.10 Td ($8.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.98 107.10 Td ( and cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.52 107.10 Td (provided ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.50 95.10 Td ( operations was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.21 95.10 Td ($5.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.10 95.10 Td (. ) Tj ET Q q 0 0 0 rg BT 177.92 95.10 Td (W) Tj ET Q q 0 0 0 rg BT 186.56 95.10 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 83.10 Td (reinvested by stockholders, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.42 83.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.31 83.10 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 83.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.36 83.10 Td ( prior period cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.10 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 59.10 Td (assume first that we use cash flow from operating activities from the relevant or prior periods to fund distribution payments.) Tj ET Q 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 70.50 704.10 Td (T) Tj ET Q q 0 0 0 rg BT 75.91 704.10 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 49.50 692.10 Td (funds available, the overall return to our stockholders may be reduced and subsequent investors will experience dilution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 674.10 Td (In addition, during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.43 674.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.65 674.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.47 674.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.73 674.10 Td (, our board of directors declared stock dividends for each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (month based on a single record date at the end of each month in an amount that would equal a 2% annualized stock dividend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (per share of common stock if paid each month for a year) Tj ET Q q 0 0 0 rg BT 275.25 650.10 Td (. Stock dividends are issued in the same class of shares as the shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (for which such stockholder received the stock dividend.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 620.10 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 49.50 608.10 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 367.59 608.10 Td (fering stage to continue to authorize and declare ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 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 49.50 584.10 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 49.50 572.10 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 49.50 560.10 Td (stock dividends or cash distributions to stockholders. ) Tj ET Q q 0 0 0 rg BT 263.74 560.10 Td (W) Tj ET Q q 0 0 0 rg BT 272.38 560.10 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 49.50 548.10 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 73.50 530.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 530.10 Td (e expect that we will fund these cash distributions from dividend income from real estate equity securities and rental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (and other income on our real property investments. ) Tj ET Q q 0 0 0 rg BT 256.20 518.10 Td (W) Tj ET Q q 0 0 0 rg BT 264.84 518.10 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 49.50 506.10 Td (investments that have appreciated in value after our acquisition. Generally) Tj ET Q q 0 0 0 rg BT 345.96 506.10 Td (, our distribution policy is not to pay cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 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 530.09 494.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 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 49.50 470.10 Td (source, including proceeds from our public of) Tj ET Q q 0 0 0 rg BT 232.32 470.10 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 49.50 458.10 Td (party borrowings, advances from our advisor or sponsors or from our advisor) Tj ET Q q 0 0 0 rg BT 358.69 458.10 Td (’) Tj ET Q q 0 0 0 rg BT 361.47 458.10 Td (s deferral of its fees under the advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 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 49.50 434.10 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 49.50 422.10 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 49.50 410.10 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 535.32 410.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (distribution requirement. In such an event, we would look first to other third party borrowings to fund these distributions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 380.10 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 49.50 368.10 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 49.50 356.10 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 500.56 356.10 Td (These stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 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 49.50 332.10 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 49.50 320.10 Td (In addition, these stock dividends may reflect in part cash flow from operations. However) Tj ET Q q 0 0 0 rg BT 408.16 320.10 Td (, we can provide no assurances that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 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 49.50 296.10 Td (amount suf) Tj ET Q q 0 0 0 rg BT 94.04 296.10 Td (ficient to of) Tj ET Q q 0 0 0 rg BT 140.51 296.10 Td (fset the dilutive ef) Tj ET Q q 0 0 0 rg BT 212.80 296.10 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 49.50 284.10 Td (will be below the return per share of earlier investors. ) Tj ET Q q 0 0 0 rg BT 266.18 284.10 Td (W) Tj ET Q q 0 0 0 rg BT 275.22 284.10 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 49.50 272.10 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 49.50 260.10 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 49.50 248.10 Td (the property) Tj ET Q q 0 0 0 rg BT 97.44 248.10 Td (, which reduces uncertainty in the market and alleviates concerns regarding the property’) Tj ET Q q 0 0 0 rg BT 452.58 248.10 Td (s management, ownership ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (and future. ) Tj ET Q q 0 0 0 rg BT 95.13 236.10 Td (W) Tj ET Q q 0 0 0 rg BT 103.77 236.10 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 49.50 224.10 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 49.50 212.10 Td (properties, which enables us to attract substantially increased interest from brokers and tenants.) Tj ET Q endstream endobj 99 0 obj <>] /Rotate 0 /Contents 100 0 R>> endobj 100 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 2. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 221.35 730.60 Td (Analysis of Financial Condition and Results of Operations \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (48) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Critical ) Tj ET Q q 0 0 0 rg BT 84.21 704.25 Td (Accounting Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 686.25 Td (Our consolidated interim financial statements have been prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 441.77 686.25 Td ( and in conjunction with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (rules and regulations of the SEC. ) Tj ET Q q 0 0 0 rg BT 184.02 674.25 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 49.50 662.25 Td (assumptions and estimates about matters that are inherently uncertain. ) Tj ET Q q 0 0 0 rg BT 332.01 662.25 Td (These judgments af) Tj ET Q q 0 0 0 rg BT 410.14 662.25 Td (fect the reported amounts of assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 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 49.50 638.25 Td (amounts of revenue and expenses during the reporting periods. ) Tj ET Q q 0 0 0 rg BT 303.14 638.25 Td (W) Tj ET Q q 0 0 0 rg BT 312.18 638.25 Td (ith dif) Tj ET Q q 0 0 0 rg BT 336.16 638.25 Td (ferent estimates or assumptions, materially dif) Tj ET Q q 0 0 0 rg BT 520.93 638.25 Td (ferent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (amounts could be reported in our financial statements. ) Tj ET Q q 0 0 0 rg BT 268.61 626.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 318.51 626.25 Td (, other companies may utilize dif) Tj ET Q q 0 0 0 rg BT 449.95 626.25 Td (ferent estimates that may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 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 439.42 614.25 Td (A) Tj ET Q q 0 0 0 rg BT 446.09 614.25 Td ( discussion of the accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 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 49.50 590.25 Td (is included in our ) Tj ET Q q 0 0 0 rg BT 121.16 590.25 Td (Annual Report on Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.50 590.25 Td (December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.08 590.25 Td ( filed with the SEC. ) Tj ET Q q 0 0 0 rg BT 477.56 590.25 Td (There have been no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (significant changes to our policies during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.24 578.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.24 578.25 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 49.50 566.25 Td (standards issued by the Financial ) Tj ET Q q 0 0 0 rg BT 183.65 566.25 Td (Accounting Standards Board ef) Tj ET Q q 0 0 0 rg BT 309.27 566.25 Td (fective on January 1, 2018.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 530.25 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.26 530.25 Td (fective January 1, 2018, we adopted ) Tj ET Q q 0 0 0 rg BT 227.32 530.25 Td (ASU No. 2014-09, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 305.38 530.25 Td (Revenue fr) Tj ET Q q 0 0 0 rg BT 348.04 530.25 Td (om Contracts with Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.22 530.25 Td ( \(T) Tj ET Q q 0 0 0 rg BT 478.46 530.25 Td (opic 606\) \(“ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (No. 2014-09”\), using the modified retrospective approach, which requires a cumulative ef) Tj ET Q q 0 0 0 rg BT 409.20 518.25 Td (fect adjustment as of the date of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (entity’) Tj ET Q q 0 0 0 rg BT 75.05 506.25 Td (s adoption. Under the modified retrospective approach, an entity may also elect to apply this standard to either \(i\) all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (contracts as of January 1, 2018 or \(ii\) only to contracts that were not completed as of January 1, 2018. ) Tj ET Q q 0 0 0 rg BT 461.61 494.25 Td (A) Tj ET Q q 0 0 0 rg BT 468.28 494.25 Td ( completed contract is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (a contract for which all \(or substantially all\) of the revenue was recognized under legacy GAAP) Tj ET Q q 0 0 0 rg BT 432.60 482.25 Td ( that was in ef) Tj ET Q q 0 0 0 rg BT 488.51 482.25 Td (fect before the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (date of initial application. ) Tj ET Q q 0 0 0 rg BT 154.56 470.25 Td (W) Tj ET Q q 0 0 0 rg BT 163.20 470.25 Td (e elected to apply this standard only to contracts that were not completed as of January 1, 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 452.25 Td (Based on our evaluation of contracts within the scope of ) Tj ET Q q 0 0 0 rg BT 299.16 452.25 Td (ASU No. 2014-09, revenue that is impacted by ) Tj ET Q q 0 0 0 rg BT 489.13 452.25 Td (ASU No. 2014-09 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.25 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 535.80 440.25 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (properties and hotel revenues. ) Tj ET Q q 0 0 0 rg BT 171.78 428.25 Td (The recognition of such revenue will occur when the services are provided and the performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (obligations are satisfied.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (Hotel Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 383.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 383.25 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 49.50 371.25 Td (collected from our guests. ) Tj ET Q q 0 0 0 rg BT 155.31 371.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 205.21 371.25 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 49.50 359.25 Td (If the guest pays the independent internet travel intermediary directly) Tj ET Q q 0 0 0 rg BT 325.69 359.25 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 49.50 347.25 Td (room to the independent internet travel intermediary) Tj ET Q q 0 0 0 rg BT 258.22 347.25 Td (, less any discount or commission paid. If the guest pays us directly) Tj ET Q q 0 0 0 rg BT 527.53 347.25 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.25 Td (book revenue for the room on a gross basis. ) Tj ET Q q 0 0 0 rg BT 226.50 335.25 Td (W) Tj ET Q q 0 0 0 rg BT 235.14 335.25 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 49.50 323.25 Td (hotels and we expense the char) Tj ET Q q 0 0 0 rg BT 173.44 323.25 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 49.50 311.25 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 49.50 299.25 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. 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 49.50 245.25 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 49.50 233.25 Td (check-out by the customer from our hotel. ) Tj ET Q q 0 0 0 rg BT 220.38 233.25 Td (W) Tj ET Q q 0 0 0 rg BT 229.02 233.25 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 49.50 221.25 Td (group of customers provides a deposit for a future stay at our hotels. ) Tj ET Q q 0 0 0 rg BT 324.44 221.25 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 49.50 209.25 Td (balance of other liabilities on the consolidated balance sheet. ) Tj ET Q q 0 0 0 rg BT 294.41 209.25 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 49.50 197.25 Td (guest’) Tj ET Q q 0 0 0 rg BT 73.39 197.25 Td (s stay) Tj ET Q q 0 0 0 rg BT 95.24 197.25 Td (. ) Tj ET Q q 0 0 0 rg BT 100.06 197.25 Td (W) Tj ET Q q 0 0 0 rg BT 108.69 197.25 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 72.00 179.25 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 49.50 167.25 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 49.50 155.25 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 49.50 143.25 Td (the customer) Tj ET Q q 0 0 0 rg BT 100.32 143.25 Td (. ) Tj ET Q q 0 0 0 rg BT 105.14 143.25 Td (W) Tj ET Q q 0 0 0 rg BT 113.78 143.25 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 486.41 143.25 Td (. ) Tj ET Q q 0 0 0 rg BT 491.23 143.25 Td (W) Tj ET Q q 0 0 0 rg BT 499.87 143.25 Td (e record ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.25 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 49.50 119.25 Td (banquet event at our hotels. ) Tj ET Q q 0 0 0 rg BT 161.69 119.25 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 49.50 107.25 Td (the consolidated balance sheet. ) Tj ET Q q 0 0 0 rg BT 175.29 107.25 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 95.25 Td (the banquet services. ) Tj ET Q q 0 0 0 rg BT 135.40 95.25 Td (W) Tj ET Q q 0 0 0 rg BT 144.04 95.25 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 77.25 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 65.25 Td (assured.) 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 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 (49) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (Real Estate Equity Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 686.25 Td (Our real estate equity securities are carried at their estimated fair value based on quoted market prices for the security) Tj ET Q q 0 0 0 rg BT 541.42 686.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 674.25 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 49.50 662.25 Td (Upon adoption of ) Tj ET Q q 0 0 0 rg BT 122.00 662.25 Td (ASU No. 2016-01, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 200.05 662.25 Td (Financial Instruments - Overall \(Subtopic 825-10\): Recognition and Measur) Tj ET Q q 0 0 0 rg BT 506.85 662.25 Td (ement of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (Financial ) Tj ET Q q 0 0 0 rg BT 90.70 650.25 Td (Assets and Financial Liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.14 650.25 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 49.50 638.25 Td (equity securities are recognized in earnings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 620.25 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 49.50 608.25 Td (dividend date. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (Subsequent Events) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 572.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 572.25 Td (e evaluate subsequent events up until the date the consolidated financial statements are issued.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (Cash Distributions Paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 539.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 539.25 Td (October 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.43 539.25 Td (, we paid distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.64 539.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.53 539.25 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 49.50 527.25 Td (common stock based on daily record dates for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.81 527.25 Td (September 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.08 527.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.19 527.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.45 527.25 Td (. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.25 Td (November 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.21 515.25 Td (, we paid distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.42 515.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.31 515.25 Td ( related to cash distributions on the outstanding shares of the common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.25 Td (stock based on daily record dates for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.32 503.25 Td (October 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.03 503.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.13 503.25 Td (October 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.84 503.25 Td (. Distributions for the period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.44 491.25 Td (September 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.70 491.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.81 491.25 Td (October 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.52 491.25 Td ( were calculated based on stockholders of record each day during the period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (at a rate of \(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.41 479.25 Td ($0.00052548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.91 479.25 Td ( per share per day less \(ii\) the applicable daily stockholder servicing fees accrued for and allocable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (to any class of common stock, divided by the number of shares of common stock of such class outstanding as of the close of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.25 Td (business on each respective record date.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 437.25 Td (Stock Dividends Issued) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 422.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.17 422.25 Td (August 9, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.56 422.25 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 419.44 422.25 Td (September 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.70 422.25 Td (, in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (0.001667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 410.25 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 49.50 398.25 Td (record as of the close of business on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.68 398.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.95 398.25 Td (. ) Tj ET Q q 0 0 0 rg BT 284.27 398.25 Td (W) Tj ET Q q 0 0 0 rg BT 292.90 398.25 Td (e issued the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.06 398.25 Td (September 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.32 398.25 Td ( stock dividend, consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.31 398.25 Td (50,1) Tj ET Q q 0 0 0 rg BT 544.44 398.25 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.44 398.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (shares, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.99 386.25 Td (October 2, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.70 386.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 368.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.17 368.25 Td (August 9, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.56 368.25 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 419.44 368.25 Td (October 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.14 368.25 Td (, in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (0.001667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 356.25 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 49.50 344.25 Td (record as of the close of business on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.68 344.25 Td (October 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.39 344.25 Td (. ) Tj ET Q q 0 0 0 rg BT 273.71 344.25 Td (W) Tj ET Q q 0 0 0 rg BT 282.35 344.25 Td (e issued the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.50 344.25 Td (October 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.21 344.25 Td ( stock dividend, consisting of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.20 344.25 Td (50,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.70 344.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (shares, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.99 332.25 Td (November 2, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.70 332.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (Distributions Declared) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 299.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.22 299.25 Td (October 10, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.93 299.25 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 49.50 287.25 Td (common stock based on daily record dates for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.81 287.25 Td (November 1, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.52 287.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.63 287.25 Td (November 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.34 287.25 Td (, which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.25 Td (expect to pay in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.59 275.25 Td (December 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.17 275.25 Td (. Investors may choose to receive cash distributions or purchase additional shares through our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.25 Td (dividend reinvestment plan. Distributions for this period will be calculated based on stockholders of record each day during this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.25 Td (period at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.52 251.25 Td ($0.00052548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.02 251.25 Td ( per share per day) Tj ET Q q 0 0 0 rg BT 245.44 251.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 233.25 Td (Also on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.39 233.25 Td (October 10, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.10 233.25 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 450.02 233.25 Td (November 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.73 233.25 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.25 Td (amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 221.25 Td (0.001667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.33 221.25 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 49.50 209.25 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 207.51 209.25 Td (November 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.22 209.25 Td (. Stock dividends are issued in the same class of shares as the shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.25 Td (for which such stockholder received the stock dividend. ) Tj ET Q q 0 0 0 rg BT 275.09 197.25 Td (W) Tj ET Q q 0 0 0 rg BT 283.72 197.25 Td (e expect to issue this stock dividend in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.36 197.25 Td (December 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.95 197.25 Td (.) Tj ET Q endstream endobj 103 0 obj <>] /Rotate 0 /Contents 104 0 R>> endobj 104 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 3. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Quantitative and Qualitative Disclosur) Tj ET Q q 0 0 0 rg BT 255.60 730.60 Td (es about Market Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 704.10 Td (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 (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.99 506.10 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 ($328.9 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 (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.26 494.10 Td (, we have also entered into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.38 494.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.04 494.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (interest rate cap agreements with an aggregate notional value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.17 482.10 Td ($135.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.06 482.10 Td (, which ef) Tj ET Q q 0 0 0 rg BT 405.58 482.10 Td (fectively caps one-month LIBOR at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (3.00%. ) Tj ET Q q 0 0 0 rg BT 80.15 470.10 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 340.04 470.10 Td (0.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.54 470.10 Td ( years. Based on interest rates as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.54 470.10 Td (September 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 458.10 Td (, if 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 406.93 458.10 Td (September 30, 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.20 458.10 Td (, interest expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (on our variable rate debt would increase or decrease, respectively) Tj ET Q q 0 0 0 rg BT 310.39 446.10 Td (, by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.89 446.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.79 446.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.22 446.10 Td ($3.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.12 446.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 497.78 446.10 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 (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.52 428.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.08 428.10 Td (4.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.91 428.10 Td (. ) Tj ET Q q 0 0 0 rg BT 462.22 428.10 Td (The weighted-average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (interest rate represents the actual interest rate in ef) Tj ET Q q 0 0 0 rg BT 250.33 416.10 Td (fect as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.48 416.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.74 416.10 Td ( \(consisting of the contractual interest rate and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (the ef) Tj ET Q q 0 0 0 rg BT 71.80 404.10 Td (fect of interest rate caps, if applicable\), using interest rate indices as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.41 404.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.67 404.10 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 (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.27 290.10 Td (, we owned real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (equity securities with a book value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.96 278.10 Td ($6.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.85 278.10 Td (. Based solely on the prices of real estate equity securities for the three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 266.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 266.10 Td (, if prices were to increase or decrease by 10%, our net income would increase or decrease, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 254.10 Td (, by approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.92 254.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.81 254.10 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 105 0 obj <>] /Rotate 0 /Contents 106 0 R>> endobj 106 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( I. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 146.62 748.60 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 197.26 748.60 Td (TION \(CONTINUED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.60 Td (Item 4. ) Tj ET Q q 0 0 0 rg BT 90.50 730.60 Td (Contr) Tj ET Q q 0 0 0 rg BT 115.87 730.60 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 159.03 730.60 Td (ocedur) Tj ET Q q 0 0 0 rg BT 188.29 730.60 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (51) 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 107 0 obj <>] /Rotate 0 /Contents 108 0 R>> endobj 108 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 748.60 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 748.60 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 748.60 Td ( II. ) Tj ET Q q 0 0 0 rg BT 90.50 748.60 Td (OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.26 748.60 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (52) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 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 (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.83 329.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.65 329.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.91 329.25 Td (, we paid aggregate distributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.49 329.25 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.38 329.25 Td ( including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 329.25 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.04 329.25 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 ($2.1 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 (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.45 305.25 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.28 305.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.54 305.25 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.09 305.25 Td ($8.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.98 305.25 Td ( and cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.52 305.25 Td (provided ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.25 Td (by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.50 293.25 Td ( operations was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.21 293.25 Td ($5.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.10 293.25 Td (. ) Tj ET Q q 0 0 0 rg BT 177.92 293.25 Td (W) Tj ET Q q 0 0 0 rg BT 186.56 293.25 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 ($2.3 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 70.50 239.25 Td (T) Tj ET Q q 0 0 0 rg BT 75.91 239.25 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, the overall return to our stockholders may be reduced and subsequent investors will experience dilution.) 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 1A. Risk Factors \(continued\)) 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 /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 704.25 Td (In ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 61.37 704.25 Td (July ) Tj ET Q q 0 0 0 rg BT 81.56 704.25 Td (2018) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 101.56 704.25 Td ( ) Tj ET Q q 0 0 0 rg BT 103.97 704.25 Td (we ) Tj ET Q q 0 0 0 rg BT 117.49 704.25 Td (exhausted ) Tj ET Q q 0 0 0 rg BT 161.57 704.25 Td (funds ) Tj ET Q q 0 0 0 rg BT 187.33 704.25 Td (available ) Tj ET Q q 0 0 0 rg BT 226.95 704.25 Td (for ) Tj ET Q q 0 0 0 rg BT 241.58 704.25 Td (redemptions ) Tj ET Q q 0 0 0 rg BT 294.55 704.25 Td (under ) Tj ET Q q 0 0 0 rg BT 321.42 704.25 Td (our ) Tj ET Q q 0 0 0 rg BT 338.28 704.25 Td (share ) Tj ET Q q 0 0 0 rg BT 363.48 704.25 Td (redemption ) Tj ET Q q 0 0 0 rg BT 412.56 704.25 Td (program, ) Tj ET Q q 0 0 0 rg BT 453.03 704.25 Td (other ) Tj ET Q q 0 0 0 rg BT 477.11 704.25 Td (than ) Tj ET Q q 0 0 0 rg BT 498.43 704.25 Td (those ) Tj ET Q q 0 0 0 rg BT 522.51 704.25 Td (submitted ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 692.25 Td (in ) Tj ET Q q 0 0 0 rg BT 60.34 692.25 Td (connection ) Tj ET Q q 0 0 0 rg BT 108.40 692.25 Td (with ) Tj ET Q q 0 0 0 rg BT 128.69 692.25 Td (a ) Tj ET Q q 0 0 0 rg BT 136.19 692.25 Td (stockholder) Tj ET Q q 0 0 0 rg BT 184.34 692.25 Td (’) Tj ET Q q 0 0 0 rg BT 186.93 692.25 Td (s ) Tj ET Q q 0 0 0 rg BT 193.33 692.25 Td (death, ) Tj ET Q q 0 0 0 rg BT 221.11 692.25 Td (“qualifying ) Tj ET Q q 0 0 0 rg BT 270.84 692.25 Td (disability” ) Tj ET Q q 0 0 0 rg BT 315.56 692.25 Td (or ) Tj ET Q q 0 0 0 rg BT 326.95 692.25 Td (“determination ) Tj ET Q q 0 0 0 rg BT 392.24 692.25 Td (of ) Tj ET Q q 0 0 0 rg BT 403.07 692.25 Td (incompetence” ) Tj ET Q q 0 0 0 rg BT 467.22 692.25 Td (for ) Tj ET Q q 0 0 0 rg BT 481.95 692.25 Td (which ) Tj ET Q q 0 0 0 rg BT 509.46 692.25 Td (we ) Tj ET Q q 0 0 0 rg BT 523.07 692.25 Td (have ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 545.01 692.25 Td ($0.2 ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 680.25 Td (million) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 78.95 680.25 Td ( ) Tj ET Q q 0 0 0 rg BT 81.30 680.25 Td (available ) Tj ET Q q 0 0 0 rg BT 120.87 680.25 Td (as ) Tj ET Q q 0 0 0 rg BT 132.11 680.25 Td (of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 142.79 680.25 Td (September 30, ) Tj ET Q q 0 0 0 rg BT 203.47 680.25 Td (2018) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 223.47 680.25 Td (. ) Tj ET Q q 0 0 0 rg BT 228.32 680.25 Td (Therefore, ) Tj ET Q q 0 0 0 rg BT 274.27 680.25 Td (except ) Tj ET Q q 0 0 0 rg BT 302.71 680.25 Td (in ) Tj ET Q q 0 0 0 rg BT 313.40 680.25 Td (limited ) Tj ET Q q 0 0 0 rg BT 344.08 680.25 Td (circumstances, ) Tj ET Q q 0 0 0 rg BT 407.82 680.25 Td (our ) Tj ET Q q 0 0 0 rg BT 424.63 680.25 Td (stockholders ) Tj ET Q q 0 0 0 rg BT 478.65 680.25 Td (will ) Tj ET Q q 0 0 0 rg BT 496.00 680.25 Td (be ) Tj ET Q q 0 0 0 rg BT 507.79 680.25 Td (unable ) Tj ET Q q 0 0 0 rg BT 538.48 680.25 Td (to ) Tj ET Q q 0 0 0 rg BT 548.61 680.25 Td (sell ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 668.25 Td (their ) Tj ET Q q 0 0 0 rg BT 71.54 668.25 Td (shares ) Tj ET Q q 0 0 0 rg BT 100.81 668.25 Td (under ) Tj ET Q q 0 0 0 rg BT 127.85 668.25 Td (our ) Tj ET Q q 0 0 0 rg BT 144.90 668.25 Td (share ) Tj ET Q q 0 0 0 rg BT 170.27 668.25 Td (redemption ) Tj ET Q q 0 0 0 rg BT 219.53 668.25 Td (program ) Tj ET Q q 0 0 0 rg BT 257.68 668.25 Td (until ) Tj ET Q q 0 0 0 rg BT 279.73 668.25 Td (January ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 316.78 668.25 Td (2019) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 336.78 668.25 Td ( ) Tj ET Q q 0 0 0 rg BT 339.37 668.25 Td (when ) Tj ET Q q 0 0 0 rg BT 364.19 668.25 Td (the ) Tj ET Q q 0 0 0 rg BT 379.56 668.25 Td (dollar ) Tj ET Q q 0 0 0 rg BT 406.60 668.25 Td (limitation ) Tj ET Q q 0 0 0 rg BT 449.20 668.25 Td (resets. ) Tj ET Q q 0 0 0 rg BT 477.63 668.25 Td (However) Tj ET Q q 0 0 0 rg BT 513.73 668.25 Td (, ) Tj ET Q q 0 0 0 rg BT 518.82 668.25 Td (because ) Tj ET Q q 0 0 0 rg BT 554.18 668.25 Td (of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 656.25 Td (the ) Tj ET Q q 0 0 0 rg BT 64.29 656.25 Td (amount ) Tj ET Q q 0 0 0 rg BT 97.98 656.25 Td (of ) Tj ET Q q 0 0 0 rg BT 108.32 656.25 Td (unfulfilled ) Tj ET Q q 0 0 0 rg BT 154.22 656.25 Td (redemption ) Tj ET Q q 0 0 0 rg BT 202.90 656.25 Td (requests, ) Tj ET Q q 0 0 0 rg BT 241.30 656.25 Td (and ) Tj ET Q q 0 0 0 rg BT 258.87 656.25 Td (limitations ) Tj ET Q q 0 0 0 rg BT 304.78 656.25 Td (on ) Tj ET Q q 0 0 0 rg BT 317.35 656.25 Td (the ) Tj ET Q q 0 0 0 rg BT 332.14 656.25 Td (dollar ) Tj ET Q q 0 0 0 rg BT 358.59 656.25 Td (amount ) Tj ET Q q 0 0 0 rg BT 392.28 656.25 Td (of ) Tj ET Q q 0 0 0 rg BT 402.62 656.25 Td (shares ) Tj ET Q q 0 0 0 rg BT 431.31 656.25 Td (that ) Tj ET Q q 0 0 0 rg BT 449.43 656.25 Td (may ) Tj ET Q q 0 0 0 rg BT 468.66 656.25 Td (be ) Tj ET Q q 0 0 0 rg BT 480.11 656.25 Td (redeemed, ) Tj ET Q q 0 0 0 rg BT 524.04 656.25 Td (it ) Tj ET Q q 0 0 0 rg BT 531.61 656.25 Td (is ) Tj ET Q q 0 0 0 rg BT 540.29 656.25 Td (likely ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 644.25 Td (that ) Tj ET Q q 0 0 0 rg BT 68.12 644.25 Td (we ) Tj ET Q q 0 0 0 rg BT 81.73 644.25 Td (will ) Tj ET Q q 0 0 0 rg BT 99.23 644.25 Td (not ) Tj ET Q q 0 0 0 rg BT 115.07 644.25 Td (be ) Tj ET Q q 0 0 0 rg BT 127.01 644.25 Td (able ) Tj ET Q q 0 0 0 rg BT 146.73 644.25 Td (to ) Tj ET Q q 0 0 0 rg BT 157.00 644.25 Td (redeem ) Tj ET Q q 0 0 0 rg BT 189.49 644.25 Td (all ) Tj ET Q q 0 0 0 rg BT 202.55 644.25 Td (shares ) Tj ET Q q 0 0 0 rg BT 231.72 644.25 Td (when ) Tj ET Q q 0 0 0 rg BT 256.45 644.25 Td (the ) Tj ET Q q 0 0 0 rg BT 271.73 644.25 Td (dollar ) Tj ET Q q 0 0 0 rg BT 298.68 644.25 Td (limitation ) Tj ET Q q 0 0 0 rg BT 341.19 644.25 Td (resets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 629.25 Td (During any calendar year) Tj ET Q q 0 0 0 rg BT 171.44 629.25 Td (, except with respect to redemptions made upon a stockholder) Tj ET Q q 0 0 0 rg BT 418.96 629.25 Td (’) Tj ET Q q 0 0 0 rg BT 421.74 629.25 Td (s death, “qualifying disability” or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.25 Td (“determination of incompetence” \(for which we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.24 617.25 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.13 617.25 Td ( available as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.88 617.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.14 617.25 Td (\), we may redeem only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (the number of shares that we could purchase with the amount of net proceeds from the sale of shares under our distribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.25 Td (reinvestment plan during the prior calendar year) Tj ET Q q 0 0 0 rg BT 241.65 593.25 Td (. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.48 593.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.48 593.25 Td (, our net proceeds from the distribution reinvestment plan were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.13 593.25 Td ($2.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 581.25 Td (. ) Tj ET Q q 0 0 0 rg BT 82.84 581.25 Td (As of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 581.25 Td (July 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.17 581.25 Td ( redemption date, we had exhausted this amount, and as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.49 581.25 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.76 581.25 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.86 581.25 Td ($3.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 569.25 Td ( outstanding and unfulfilled redemption requests representing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.94 569.25 Td (327,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.44 569.25 Td ( shares.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 551.25 Td (The annual limitation on the dollar amount of shares that may be redeemed under our share redemption program will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.25 Td (reset on January 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.98 539.25 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.98 539.25 Td (. Once we have funds available for redemption, if we cannot redeem all shares presented for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.25 Td (redemption in any month because of the dollar limitation on redemptions or the limitation on the number of shares that we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.25 Td (redeem during the calendar year) Tj ET Q q 0 0 0 rg BT 177.92 515.25 Td (, each set forth in our share redemption program, then we will honor redemption requests on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.25 Td (pro rata basis, except that if a pro rata redemption would result in a stockholder owning less than the minimum purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (requirement described in our most recently ef) Tj ET Q q 0 0 0 rg BT 231.47 491.25 Td (fective registration statement, then we would redeem all of such stockholder) Tj ET Q q 0 0 0 rg BT 537.02 491.25 Td (’) Tj ET Q q 0 0 0 rg BT 539.80 491.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (shares. ) Tj ET Q q 0 0 0 rg BT 79.31 479.25 Td (Therefore, even once the annual limitation on the dollar amount of shares that may be redeemed is reset, it is likely that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (our stockholders will be unable to have all of their shares redeemed under our share redemption program because we will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.25 Td (forced to redeem our stockholders pro rata based on the amount of funds we have available for redemption.) 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 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 (54) 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 of) Tj ET Q q 0 0 0 rg BT 249.54 488.10 Td (fered to sell any combination of Class ) Tj ET Q q 0 0 0 rg BT 403.12 488.10 Td (A) Tj ET Q q 0 0 0 rg BT 409.79 488.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 453.21 488.10 Td (T) Tj ET Q q 0 0 0 rg BT 459.14 488.10 Td ( shares in our primary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 476.10 Td (of) Tj ET Q q 0 0 0 rg BT 98.15 476.10 Td (fering and dividend reinvestment plan of) Tj ET Q q 0 0 0 rg BT 260.98 476.10 Td (fering but in no event could we sell more than 180,000,000 of shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 464.10 Td (our common stock pursuant to the of) Tj ET Q q 0 0 0 rg BT 237.02 464.10 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 446.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 446.10 Td (e ceased of) Tj ET Q q 0 0 0 rg BT 142.87 446.10 Td (fering shares of common stock in our primary of) Tj ET Q q 0 0 0 rg BT 337.08 446.10 Td (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.96 446.10 Td (July 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.13 446.10 Td ( and terminated our primary ) 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 (fering on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.03 434.10 Td (September 28, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.29 434.10 Td ( upon the completion of review of subscriptions submitted in accordance with our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 422.10 Td (processing procedures. ) Tj ET Q q 0 0 0 rg BT 183.96 422.10 Td (W) Tj ET Q q 0 0 0 rg BT 192.59 422.10 Td (e continue to of) Tj ET Q q 0 0 0 rg BT 254.89 422.10 Td (fer shares under our dividend reinvestment plan. In some states, we will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 410.10 Td (need to renew the registration statement annually or file a new registration statement to continue the dividend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 398.10 Td (reinvestment plan of) Tj ET Q q 0 0 0 rg BT 172.02 398.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 200.71 398.10 Td (W) Tj ET Q q 0 0 0 rg BT 209.35 398.10 Td (e may terminate our dividend reinvestment plan of) Tj ET Q q 0 0 0 rg BT 411.61 398.10 Td (fering at any time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 380.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.64 380.10 Td (e sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.75 380.10 Td (1) Tj ET Q q 0 0 0 rg BT 129.38 380.10 Td (1,977,758) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.38 380.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.81 380.10 Td (1) Tj ET Q q 0 0 0 rg BT 193.44 380.10 Td (1,537,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.44 380.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 297.88 380.10 Td (A) Tj ET Q q 0 0 0 rg BT 304.55 380.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 347.98 380.10 Td (T) Tj ET Q q 0 0 0 rg BT 353.91 380.10 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 467.67 380.10 Td (, in our ongoing initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 368.10 Td (public of) Tj ET Q q 0 0 0 rg BT 125.64 368.10 Td (fering for aggregate gross of) Tj ET Q q 0 0 0 rg BT 239.31 368.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.55 368.10 Td ($228.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.44 368.10 Td ( in our initial public of) Tj ET Q q 0 0 0 rg BT 463.53 368.10 Td (fering. ) Tj ET Q q 0 0 0 rg BT 491.85 368.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 356.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.26 356.10 Td (, we had sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.53 356.10 Td (549,572) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.03 356.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.47 356.10 Td (178,325) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.97 356.10 Td ( shares of Class ) Tj ET Q q 0 0 0 rg BT 374.41 356.10 Td (A) Tj ET Q q 0 0 0 rg BT 381.08 356.10 Td ( and Class ) Tj ET Q q 0 0 0 rg BT 424.51 356.10 Td (T) Tj ET Q q 0 0 0 rg BT 430.43 356.10 Td ( common stock, respectively) Tj ET Q q 0 0 0 rg BT 544.20 356.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 344.10 Td (under our dividend reinvestment plan for aggregate gross of) Tj ET Q q 0 0 0 rg BT 329.75 344.10 Td (fering proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.99 344.10 Td ($6.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.88 344.10 Td (. ) Tj ET Q q 0 0 0 rg BT 458.33 344.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.77 344.10 Td (September 30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 332.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.00 332.10 Td (, we had incurred selling commissions, dealer manager fees and or) Tj ET Q q 0 0 0 rg BT 375.84 332.10 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 468.13 332.10 Td (fering costs in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 320.10 Td (connection with our initial public of) Tj ET Q q 0 0 0 rg BT 233.96 320.10 Td (fering in the amounts set forth below) Tj ET Q q 0 0 0 rg BT 381.05 320.10 Td (. ) Tj ET Q q 0 0 0 rg BT 385.87 320.10 Td (W) Tj ET Q q 0 0 0 rg BT 394.51 320.10 Td (e paid selling commissions and dealer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 308.10 Td (manager fees to KBS Capital Markets Group, and KBS Capital Markets Group reallowed all selling commissions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 296.10 Td (a portion of the dealer manager fees to participating broker) Tj ET Q q 0 0 0 rg BT 325.53 296.10 Td (-dealers. In addition, we reimbursed KBS Capital ) Tj ET Q q 0 0 0 rg BT 525.21 296.10 Td (Advisors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 284.10 Td (and KBS Capital Markets Group for certain of) Tj ET Q q 0 0 0 rg BT 275.61 284.10 Td (fering expenses as described in our prospectus, as amended and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 272.10 Td (supplemented.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 242.60 295.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 242.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 242.60 101.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 242.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 242.60 68.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 208.60 295.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 208.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 208.60 101.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 208.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 208.60 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 90.5 242.60000000000002 m 385.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 242.60000000000002 m 490.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 242.60000000000002 m 562.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 242.60000000000002 m 490.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 208.60000000000002 m 490.5 208.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 196.60000000000002 m 490.5 196.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 194.60000000000002 m 490.5 194.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 93.00 246.83 Td (T) Tj ET Q q 0 0 0 rg BT 97.74 246.83 Td (ype of Expense ) Tj ET Q q 0 0 0 rg BT 150.41 246.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.15 246.83 Td (Amount \(in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.20 246.83 Td (Estimated/Actual) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 234.55 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 240.96 238.18 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.00 233.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.30 233.85 Td (14,475) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 517.30 233.85 Td (Actual) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 221.55 Td (Or) Tj ET Q q 0 0 0 rg BT 101.30 221.55 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 175.13 221.55 Td (fering costs \(excluding selling commissions, dealer manager ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 213.55 Td (fees and stockholder servicing fees\) ) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 209.62 217.18 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.30 212.85 Td (2,306) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 517.30 212.85 Td (Actual) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 200.55 Td (T) Tj ET Q q 0 0 0 rg BT 97.33 200.55 Td (otal expenses) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.00 199.85 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 465.30 199.85 Td (16,781) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 113 0 obj <>] /Rotate 0 /Contents 114 0 R>> endobj 114 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 748.60 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 (55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 704.10 Td (______________________________________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 90.00 695.13 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 97.36 691.50 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 90.00 681.90 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 521.25 681.90 Td (T) Tj ET Q q 0 0 0 rg BT 526.00 681.90 Td ( shares ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 672.30 Td (sold in the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 248.27 672.30 Td (fering was paid to our dealer manager and accrued daily and was paid monthly in arrears. Our ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 662.70 Td (dealer manager reallowed all of the stockholder servicing fees paid to it. ) Tj ET Q q 0 0 0 rg BT 322.88 662.70 Td (The stockholder servicing fee was an ongoing fee that was not paid at the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 653.10 Td (time of purchase and was not intended to be a principal use of of) Tj ET Q q 0 0 0 rg BT 296.68 653.10 Td (fering proceeds; it was therefore excluded from the table above. ) Tj ET Q q 0 0 0 rg BT 502.59 653.10 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 643.50 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 154.21 643.50 Td (, we ceased paying the stockholder servicing fee and had recorded approximately ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 416.11 643.50 Td ($1.7 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.22 643.50 Td ( in stockholder servicing fees, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 633.90 Td (which is the amount of the stockholder servicing fee payable with respect to all Class ) Tj ET Q q 0 0 0 rg BT 364.67 633.90 Td (T) Tj ET Q q 0 0 0 rg BT 369.41 633.90 Td ( shares sold in the primary portion of our initial public ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 624.30 Td (of) Tj ET Q q 0 0 0 rg BT 96.52 624.30 Td (fering as of the termination of the of) Tj ET Q q 0 0 0 rg BT 212.56 624.30 Td (fering.) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 90.00 615.33 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 97.36 611.70 Td (Or) Tj ET Q q 0 0 0 rg BT 105.66 611.70 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 179.49 611.70 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 90.00 602.10 Td (1.0% of gross of) Tj ET Q q 0 0 0 rg BT 142.74 602.10 Td (fering proceeds from the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 346.54 602.10 Td (fering. KBS Capital ) Tj ET Q q 0 0 0 rg BT 413.86 602.10 Td (Advisors and its af) Tj ET Q q 0 0 0 rg BT 473.93 602.10 Td (filiates are responsible for ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 592.50 Td (any or) Tj ET Q q 0 0 0 rg BT 110.07 592.50 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 183.90 592.50 Td (fering costs related to the primary portion of our initial public of) Tj ET Q q 0 0 0 rg BT 389.70 592.50 Td (fering that exceed this limit. ) Tj ET Q q 0 0 0 rg BT 483.53 592.50 Td (The amount included ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 582.90 Td (above represents our maximum liability for or) Tj ET Q q 0 0 0 rg BT 237.37 582.90 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 311.20 582.90 Td (fering costs based on the 1.0% limit. ) Tj ET Q q 0 0 0 rg BT 431.63 582.90 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.18 582.90 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 515.39 582.90 Td (, KBS Capital ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 573.30 Td (Advisors and its af) Tj ET Q q 0 0 0 rg BT 150.07 573.30 Td (filiates had incurred an additional ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.59 573.30 Td ($8.6 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.70 573.30 Td ( in or) Tj ET Q q 0 0 0 rg BT 315.44 573.30 Td (ganization and other of) Tj ET Q q 0 0 0 rg BT 389.27 573.30 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 90.00 563.70 Td (initial public of) Tj ET Q q 0 0 0 rg BT 139.18 563.70 Td (fering.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 539.70 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.44 539.70 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.71 539.70 Td (, we have used substantially all of the net proceeds from our of) Tj ET Q q 0 0 0 rg BT 445.84 539.70 Td (ferings to invest in and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 527.70 Td (manage a diverse portfolio of opportunistic real estate, real estate-related loans, real estate-related debt securities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 515.70 Td (other real estate-related investments located in the United States and Europe. Such investments include the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 503.70 Td (origination and acquisition of mortgage, mezzanine, bridge and other real estate-related loans and investment in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 491.70 Td (opportunistic real estate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 473.70 Td (The net proceeds from our of) Tj ET Q q 0 0 0 rg BT 206.72 473.70 Td (ferings, along with debt financing, we used to invest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.62 473.70 Td ($571.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.51 473.70 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.29 473.70 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.29 473.70 Td ( hotel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 461.70 Td (properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.99 461.70 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.65 461.70 Td ( of) Tj ET Q q 0 0 0 rg BT 162.29 461.70 Td (fice properties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.77 461.70 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.20 461.70 Td ( apartment building, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.52 461.70 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.96 461.70 Td ( investment in an unconsolidated entity) Tj ET Q q 0 0 0 rg BT 488.22 461.70 Td (, a leasehold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 449.70 Td (interest through a joint venture to develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.23 449.70 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.67 449.70 Td ( retail property) Tj ET Q q 0 0 0 rg BT 333.44 449.70 Td (, one first mortgage loan and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.91 449.70 Td (an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.35 449.70 Td ( investment in real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 437.70 Td (equity securities, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.53 437.70 Td ($18.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.42 437.70 Td ( of 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 72.00 419.70 Td (c\) ) Tj ET Q q 0 0 0 rg BT 90.00 419.70 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 90.00 407.70 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 468.31 407.70 Td (The terms of the share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 395.70 Td (redemption program described below are the terms as are currently in ef) Tj ET Q q 0 0 0 rg BT 378.31 395.70 Td (fect. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 377.70 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 90.00 359.70 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 359.70 Td (Unless the shares are being redeemed in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 396.11 359.70 Td (’) Tj ET Q q 0 0 0 rg BT 398.89 359.70 Td (s death, “qualifying disability” or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 347.70 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 112.50 335.70 Td (shares until the stockholder has held the shares for one year) Tj ET Q q 0 0 0 rg BT 350.21 335.70 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 320.70 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 320.70 Td (During each calendar year) Tj ET Q q 0 0 0 rg BT 217.31 320.70 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 112.50 308.70 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 112.50 296.70 Td (reinvestment plan during the prior calendar year) Tj ET Q q 0 0 0 rg BT 304.65 296.70 Td (. ) Tj ET Q q 0 0 0 rg BT 311.97 296.70 Td (W) Tj ET Q q 0 0 0 rg BT 320.61 296.70 Td (e may) Tj ET Q q 0 0 0 rg BT 344.11 296.70 Td (, however) Tj ET Q q 0 0 0 rg BT 383.14 296.70 Td (, increase or decrease the funding available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 284.70 Td (for the redemption of shares pursuant to the program upon ten business days’) Tj ET Q q 0 0 0 rg BT 420.58 284.70 Td ( notice to our stockholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 269.70 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 269.70 Td (During any calendar year) Tj ET Q q 0 0 0 rg BT 213.44 269.70 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 112.50 257.70 Td (outstanding during the prior calendar year) Tj ET Q q 0 0 0 rg BT 279.95 257.70 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 242.70 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 242.70 Td (W) Tj ET Q q 0 0 0 rg BT 121.14 242.70 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 112.50 230.70 Td (Maryland law) Tj ET Q q 0 0 0 rg BT 167.67 230.70 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 112.50 218.70 Td (solvency) Tj ET Q q 0 0 0 rg BT 147.40 218.70 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 197.70 Td (On June 6, 2017, our board of directors approved an estimated NA) Tj ET Q q 0 0 0 rg BT 355.59 197.70 Td (V) Tj ET Q q 0 0 0 rg BT 362.63 197.70 Td ( per share of our common stock of $9.05. ) Tj ET Q q 0 0 0 rg BT 529.54 197.70 Td (As a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 185.70 Td (result, and unless the shares are being redeemed in connection with a stockholder) Tj ET Q q 0 0 0 rg BT 415.54 185.70 Td (’) Tj ET Q q 0 0 0 rg BT 418.32 185.70 Td (s death, qualifying disability) Tj ET Q q 0 0 0 rg BT 531.54 185.70 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 173.70 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 90.00 155.70 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 155.70 Td (For those shares held by the redeeming stockholder for at least one year) Tj ET Q q 0 0 0 rg BT 399.23 155.70 Td (, 92.5% of our most recent estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 143.70 Td (NA) Tj ET Q q 0 0 0 rg BT 125.65 143.70 Td (V) Tj ET Q q 0 0 0 rg BT 132.70 143.70 Td ( per share as of the applicable redemption date;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 128.70 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 128.70 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 112.50 116.70 Td (NA) Tj ET Q q 0 0 0 rg BT 125.65 116.70 Td (V) Tj ET Q q 0 0 0 rg BT 132.70 116.70 Td ( per share as of the applicable redemption date;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 101.70 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 101.70 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 89.70 Td (NA) Tj ET Q q 0 0 0 rg BT 125.65 89.70 Td (V) Tj ET Q q 0 0 0 rg BT 132.70 89.70 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 74.70 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 74.70 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 62.70 Td (NA) Tj ET Q q 0 0 0 rg BT 125.65 62.70 Td (V) Tj ET Q q 0 0 0 rg BT 132.70 62.70 Td ( per share as of the applicable redemption date.) Tj ET Q endstream endobj 115 0 obj <>] /Rotate 0 /Contents 116 0 R>> endobj 116 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 (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 704.10 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 90.00 692.10 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 90.00 680.10 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 90.00 668.10 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 541.63 668.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 656.10 Td (date of the share’) Tj ET Q q 0 0 0 rg BT 158.58 656.10 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 90.00 644.10 Td (a stockholder may be redeemed at dif) Tj ET Q q 0 0 0 rg BT 239.76 644.10 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 90.00 632.10 Td (submitted for redemption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 614.10 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 486.38 614.10 Td (’) Tj ET Q q 0 0 0 rg BT 489.16 614.10 Td (s death, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 602.10 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 90.00 584.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 584.10 Td (There is no one-year holding requirement;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 569.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 569.10 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 90.00 554.10 Td (• ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 554.10 Td (The redemption price is the estimated NA) Tj ET Q q 0 0 0 rg BT 278.94 554.10 Td (V) Tj ET Q q 0 0 0 rg BT 285.98 554.10 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 90.00 533.10 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 90.00 521.10 Td (of the date we accept the transfer) Tj ET Q q 0 0 0 rg BT 221.60 521.10 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 90.00 509.10 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 90.00 491.10 Td (Our board may amend, suspend or terminate the share redemption program upon 30 days’) Tj ET Q q 0 0 0 rg BT 449.16 491.10 Td ( notice to stockholders, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 479.10 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 90.00 467.10 Td (redemption program upon 10 business days’) Tj ET Q q 0 0 0 rg BT 266.73 467.10 Td ( notice. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 449.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.55 449.10 Td (nine) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.76 449.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.59 449.10 Td (September 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.85 449.10 Td (, we fulfilled redemption requests and redeemed shares pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 437.10 Td (the share redemption program as follows: ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 399.60 81.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.50 399.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.50 399.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 399.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 399.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 399.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 399.60 183.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 375.60 81.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.50 375.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.50 375.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 375.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 375.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 375.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 375.60 183.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 351.60 81.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.50 351.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.50 351.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 351.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 351.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 351.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 351.60 183.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 327.60 81.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.50 327.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.50 327.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 327.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 327.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 327.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 327.60 183.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.50 303.60 81.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.50 303.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 175.50 303.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 273.50 303.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 303.60 98.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.50 303.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 303.60 183.00 -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 90.5 399.6 m 171.5 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175.5 399.6 m 273.5 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 277.5 399.6 m 375.5 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 399.6 m 562.5 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 399.6 m 171.5 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175.5 291.6 m 273.5 291.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175.5 280.6 m 273.5 280.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 175.5 278.6 m 273.5 278.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 118.90 403.83 Td (Month) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 183.25 411.83 Td (T) Tj ET Q q 0 0 0 rg BT 187.85 411.83 Td (otal Number) Tj ET Q q 0 0 0 rg BT 231.04 411.83 Td ( of Shar) Tj ET Q q 0 0 0 rg BT 258.00 411.83 Td (es ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 206.20 403.83 Td (Redeemed) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 241.74 407.46 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.50 411.83 Td (A) Tj ET Q q 0 0 0 rg BT 291.68 411.83 Td (verage Price Paid Per) Tj ET Q q 0 0 0 rg BT 365.50 411.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 312.35 403.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 328.65 403.83 Td (e) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 332.21 407.46 Td ( \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.85 411.83 Td (Appr) Tj ET Q q 0 0 0 rg BT 400.93 411.83 Td (oximate Dollar) Tj ET Q q 0 0 0 rg BT 451.66 411.83 Td ( ) Tj ET Q q 0 0 0 rg BT 453.52 411.83 Td (V) Tj ET Q q 0 0 0 rg BT 458.56 411.83 Td (alue of Shar) Tj ET Q q 0 0 0 rg BT 499.75 411.83 Td (es ) Tj ET Q q 0 0 0 rg BT 507.98 411.83 Td (A) Tj ET Q q 0 0 0 rg BT 513.16 411.83 Td (vailable ) Tj ET Q q 0 0 0 rg BT 541.68 411.83 Td (That) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 397.70 403.83 Td (May ) Tj ET Q q 0 0 0 rg BT 414.95 403.83 Td (Y) Tj ET Q q 0 0 0 rg BT 419.84 403.83 Td (et Be Redeemed Under) Tj ET Q q 0 0 0 rg BT 498.12 403.83 Td ( the Pr) Tj ET Q q 0 0 0 rg BT 521.08 403.83 Td (ogram) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 391.55 Td (January 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.30 391.55 Td (72,262) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.00 391.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.30 391.55 Td (8.82) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 467.45 395.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 379.55 Td (February 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.30 379.55 Td (10,602) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.00 379.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.30 379.55 Td (8.37) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 467.45 383.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 367.55 Td (March 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.30 367.55 Td (1) Tj ET Q q 0 0 0 rg BT 252.30 367.55 Td (1,025) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.00 367.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.30 367.55 Td (8.57) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 467.45 371.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 355.55 Td (April 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.30 355.55 Td (27,994) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.00 355.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.30 355.55 Td (8.39) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 467.45 359.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 343.55 Td (May 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.30 343.55 Td (36,198) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.00 343.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.30 343.55 Td (8.53) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 467.45 347.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 331.55 Td (June 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.30 331.55 Td (84,916) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.00 331.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.30 331.55 Td (8.91) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 467.45 335.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 319.55 Td (July 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 248.30 319.55 Td (32,689) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.00 319.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 358.30 319.55 Td (9.05) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 467.45 323.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 307.55 Td (August 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 262.30 307.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.00 307.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.30 307.55 Td (—) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 467.45 311.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 93.00 295.55 Td (September 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 262.30 295.55 Td (—) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 280.00 295.55 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 364.30 295.55 Td (—) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 467.45 299.96 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 105.00 283.55 Td (T) Tj ET Q q 0 0 0 rg BT 109.33 283.55 Td (otal) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.30 283.55 Td (275,686) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 270.50 Td (_____________________) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 90.00 261.52 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 97.36 257.90 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 90.00 248.92 Td (\(2\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 97.36 245.30 Td (W) Tj ET Q q 0 0 0 rg BT 104.27 245.30 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 443.71 245.30 Td (nine) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.48 245.30 Td ( months ended ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 506.14 245.30 Td (September 30, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 235.70 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 106.00 235.70 Td (, we redeemed ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 154.42 235.70 Td ($2.4 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 193.53 235.70 Td ( of common stock. In ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 263.74 235.70 Td (July 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 295.08 235.70 Td (, we exhausted all funds available for redemption of shares in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.68 235.70 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 509.68 235.70 Td ( in connection ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 226.10 Td (with redemption requests not made upon a stockholder) Tj ET Q q 0 0 0 rg BT 265.59 226.10 Td (’) Tj ET Q q 0 0 0 rg BT 267.81 226.10 Td (s death, “qualifying disability” or “determination of incompetence.” ) Tj ET Q q 0 0 0 rg BT 486.85 226.10 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 506.41 226.10 Td (September 30, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 216.50 Td (2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 106.00 216.50 Td (, we have ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 138.43 216.50 Td ($0.2 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 177.54 216.50 Td ( available for redemptions that are submitted in connection with a stockholders’) Tj ET Q q 0 0 0 rg BT 432.21 216.50 Td ( death, “qualifying disability” or ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 206.90 Td (“determination of incompetence.” ) Tj ET Q q 0 0 0 rg BT 200.18 206.90 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 219.73 206.90 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 283.94 206.90 Td (, we had a total of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 343.25 206.90 Td ($3.0 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.37 206.90 Td ( outstanding and unfulfilled redemption requests ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 197.30 Td (representing ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 131.54 197.30 Td (327,841) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 157.54 197.30 Td ( shares. ) Tj ET Q q 0 0 0 rg BT 185.39 197.30 Td (W) Tj ET Q q 0 0 0 rg BT 192.30 197.30 Td (e recorded ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 227.83 197.30 Td ($2.1 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 266.94 197.30 Td ( to redeemable common stock payable on the accompanying consolidated balance sheets, ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 187.70 Td (which represents the amount available to be redeemed in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 273.71 187.70 Td (2019) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 289.71 187.70 Td ( based on net proceeds from the sale of shares under our distribution reinvestment ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 90.00 178.10 Td (plan as of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 123.10 178.10 Td (September 30, 2018) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 187.31 178.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (Item 3. ) Tj ET Q q 0 0 0 rg BT 90.00 154.10 Td (Defaults upon Senior) Tj ET Q q 0 0 0 rg BT 179.83 154.10 Td ( Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 136.10 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 112.10 Td (Item 4. ) Tj ET Q q 0 0 0 rg BT 90.00 112.10 Td (Mine Safety Disclosur) Tj ET Q q 0 0 0 rg BT 183.70 112.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 94.10 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (Item 5. ) Tj ET Q q 0 0 0 rg BT 90.00 70.10 Td (Other) Tj ET Q q 0 0 0 rg BT 115.37 70.10 Td ( Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 52.10 Td (None.) Tj ET Q endstream endobj 117 0 obj <>] /Rotate 0 /Contents 118 0 R>> endobj 118 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 (57) 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 of common stock \(to appear on stock certificate or ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 448.7333984375 m 554.25390625 448.7333984375 l s q 0 0 1 rg BT 111.50 450.07 Td (to be sent upon request and without char) Tj ET Q q 0 0 1 rg BT 273.22 450.07 Td (ge to stockholders issued shares without certificates\), incorporated by ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 438.7333984375 m 555.8408203125 438.7333984375 l s q 0 0 1 rg BT 111.50 440.07 Td (reference to Exhibit 4.2 to the Company’) Tj ET Q q 0 0 1 rg BT 275.06 440.07 Td (s Quarterly Report on Form 10-Q for the period ended June 30, 2014, ) 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 111.5 428.7333984375 m 212.5888671875 428.7333984375 l s q 0 0 1 rg BT 111.50 430.07 Td (filed 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 52.50 411.07 Td (4.3) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 409.7333984375 m 553.052734375 409.7333984375 l s q 0 0 1 rg BT 111.50 411.07 Td (Fourth ) Tj ET Q q 0 0 1 rg BT 140.12 411.07 Td (Amended and Restated Dividend Reinvestment Plan adopted May 18, 2017, incorporated by reference ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 399.7333984375 m 438.4140625 399.7333984375 l s q 0 0 1 rg BT 111.50 401.07 Td (to Exhibit 4.2 to the Company’) Tj ET Q q 0 0 1 rg BT 235.38 401.07 Td (s Current Report on Form 8-K, filed May 24, 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 52.50 382.07 Td (4.4) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 380.7333984375 m 520.3525390625 380.7333984375 l s q 0 0 1 rg BT 111.50 382.07 Td (Escrow ) Tj ET Q q 0 0 1 rg BT 143.44 382.07 Td (Agreement dated January 22, 2016, incorporated by reference to Exhibit 4.5 to Post-Ef) Tj ET Q q 0 0 1 rg BT 490.65 382.07 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 111.5 370.7333984375 m 554.72265625 370.7333984375 l s q 0 0 1 rg BT 111.50 372.07 Td (Amendment no. 3 to the Company’) Tj ET Q q 0 0 1 rg BT 252.59 372.07 Td (s Registration Statement on Form S-1) Tj ET Q q 0 0 1 rg BT 403.05 372.07 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 111.5 360.7333984375 m 208.8828125 360.7333984375 l s q 0 0 1 rg BT 111.50 362.07 Td (dated February 1) Tj ET Q q 0 0 1 rg BT 178.88 362.07 Td (1, 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 52.50 343.07 Td (4.5) 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 111.5 340.8333984375 m 557.857421875 340.8333984375 l s q 0 0 1 rg BT 111.50 342.17 Td (Amended and Restated Multiple Class Plan, ef) Tj ET Q q 0 0 1 rg BT 298.23 342.17 Td (fective as of May 18, 2017, incorporated by reference to Exhibit ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 330.8333984375 m 393.6923828125 330.8333984375 l s q 0 0 1 rg BT 111.50 332.17 Td (4.1 to the Company’) Tj ET Q q 0 0 1 rg BT 193.16 332.17 Td (s Current Report on Form 8-K filed May 24, 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 52.50 314.07 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 312.7333984375 m 550.03515625 312.7333984375 l s q 0 0 1 rg BT 111.50 314.07 Td (Advisory ) Tj ET Q q 0 0 1 rg BT 150.67 314.07 Td (Agreement, by and between the Company and KBS Capital ) Tj ET Q q 0 0 1 rg BT 391.17 314.07 Td (Advisors, LLC, dated October 10, 2018) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 295.07 Td (31.1) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 293.7333984375 m 510.09375 293.7333984375 l s q 0 0 1 rg BT 111.50 295.07 Td (Certification of Chief Executive Of) Tj ET Q q 0 0 1 rg BT 252.94 295.07 Td (ficer pursuant to Section 302 of the Sarbanes-Oxley ) Tj ET Q q 0 0 1 rg BT 462.33 295.07 Td (Act of 2002) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 276.07 Td (31.2) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 111.5 274.7333984375 m 507.3251953125 274.7333984375 l s q 0 0 1 rg BT 111.50 276.07 Td (Certification of Chief Financial Of) Tj ET Q q 0 0 1 rg BT 250.17 276.07 Td (ficer pursuant to Section 302 of the Sarbanes-Oxley ) Tj ET Q q 0 0 1 rg BT 459.56 276.07 Td (Act of 2002) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT 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