Tuesday, March 27, 2012

KBS REIT's New Valuation

It should have been a clue when KBS REIT did not file its 2011 10-K last week along with KBS REIT II and KBS REIT III.  In the back of my mind I wondered why KBS REIT hadn't filed its 10-K, and I even checked my filing service to make sure I hadn't missed the filing.  Yesterday we found out why KBS REIT didn't file its 10-K last week.  KBS REIT announced a drop in its valuation and suspended its dividend, as it struggles with its financial problems.   The filings' immediate takeaway points are below:
  • KBS REIT valued itself at $5.16 per share, as of March 22, 2012, which is down from its December 2010, valuation of $7.32 per share.  
  • On March 20, 2012, the REIT's board of directors approved the suspension of the REIT's distribution.
  • The REIT amended its share redemption program to allow redemptions only in the event of death or disability.
  • The REIT terminated its dividend reinvestment plan, effective April 10, 2012.
If the above is not bad enough, the tone of the report, from what I've read of it, is negative, preparing investors for more bad news.  I'll post more on the filings as I wade through them.


BWH said...

Dear RR,

Do you have any new information about the status of KBS either good or bad?

Thank you in advance.

Rational Realist said...

Nothing new. It should file its third quarter 10-Q within a week or so. That will provide the latest information.