KBS Growth & Income REIT – Suspends Offering & Terminates DRP
The White Law Group is continuing our investigation in regards to the liability that some broker dealers may have for unsuitably recommending KBS Growth & Income REIT to investors. It may be possible to recover your KBS Growth & Income REIT losses through FINRA Arbitration.
KBS Growth & Income REIT is a publicly registered non-traded real estate investment trust formed in January 2015.
According to SEC filings this week, KBS Growth & Income REIT , has suspended its private placement offering and has terminated the company’s distribution reinvestment plan offering effective as of August 15th in order to pursue a liquidation strategy.
This comes after the company reported in April 2020, that it anticipated that many of its tenants would likely suffer revenue losses and may seek such rent deferrals or become unable to pay their rent due to the Covid-19 global pandemic. The company cautioned that such risks were not priced into its most recent estimated NAV per share of $8.43 per share as of September 30, 2019. KBS G&I’s portfolio consists of 3 office properties, with a reported loan-to-value of 57% as of December 2019, according to FactRight, an alternative investment analyst.
The board also established a new dollar amount limitation under the share redemption program (SRP), which currently only allows special redemptions due to a stockholder’s death, qualifying disability, or determination of incompetence.
KBS indicated that it expects to present a liquidation plan for a vote of the stockholders within the next three to six months, with the goal of completing the liquidation no later than the end of 2022.
Non-traded REITs are generally speculative, high risk investments and due to these risks are often unsuitable for most investors. Investors looking to sell non-traded REITs often have difficulty finding a buyer, and can suffer significant losses on the sale.
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If you are concerned about your investment in KBS Growth & Income REIT or another non-traded REIT and would like to discuss your recovery options, please call the securities attorneys of The White Law Group at (888) 637-5510 for a free, no risk consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
FINRA provides an arbitration forum for investors to resolve disputes. The White Law Group represents investors in FINRA arbitration claims throughout the country. Visit the firm’s homepage to learn more about the firm’s representation of investors.