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KBS Strategic Opportunity REIT II Increases Valuation of its Common Stock

December 18, 2018

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Dec 18, 2018--KBS Strategic Opportunity REIT II, Inc., a public non-traded real estate investment trust based in Newport Beach, Calif., announced that its board of directors has approved an estimated net asset value (“NAV”) per share of its common stock of $9.65 as of September 30, 2018. This estimated value per share is based on the estimated value of the REIT’s assets less the estimated value of the REIT’s liabilities, or NAV, divided by the number of shares outstanding as of September 30, 2018.

“This multi-asset class strategy has continued to create value for our stockholders,” said Keith Hall, Chief Executive Officer and Director of KBS Strategic Opportunity REIT II. “We look forward to continuing our value-add strategies for the benefit of stockholders.”

The Company’s conflicts committee, composed solely of its independent directors, engaged Duff & Phelps, LLC (“Duff & Phelps”), an independent third-party real estate valuation firm, to provide an appraisal of the REIT’s real estate properties in order to provide a calculation of the range in estimated value per share of the REIT’s common stock. KBS Capital Advisors LLC, the REIT’s external advisor, performed valuations of the REIT’s other assets and liabilities. Upon the committee’s receipt and review of Duff & Phelps’ valuation report and consideration of the material assumptions and valuation methodologies applied and described therein, the committee recommended to the board of directors that it adopt $9.65 as the estimated per share of the REIT’s common stock, which the board unanimously approved.

The valuation was performed in accordance with the methodology provided in the Institute for Portfolio Alternatives’ (f/k/a the Investment Program Association) practice guideline regarding valuations of publicly registered non-listed REITs. The estimated NAV does not reflect any “portfolio premium”, nor does it reflect an enterprise value for the Company.

For a full description of the limitations, methodologies and assumptions used to value the REIT’s assets and liabilities in connection with the calculation of the REIT’s estimated value per share, see the REIT’s Current Report on Form 8-K, filed with the Securities and Exchange Commission (“SEC”) on December 6, 2018.

About KBS

KBS is a private equity real estate company and an SEC-registered investment adviser. Founded in 1992 by Peter Bren and Chuck Schreiber, it is recognized as one of the largest commercial office owners globally. Since inception, KBS-affiliated companies have completed transactional activity in excess of $38 billion via 16 separate accounts and six commingled funds for government and corporate pension funds. Additionally, KBS has sponsored five sovereign wealth funds and seven SEC-registered, non-traded REITs. For information, visit www.kbs.com.

Forward-Looking Statements

The foregoing includes forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. The REIT intends that such forward-looking statements be subject to the safe harbors created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements regarding the intent, belief or current expectations of the REIT and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should” or similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The REIT undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. Such statements are subject to known and unknown risks and uncertainties which could cause actual results to differ materially from those contemplated by such forward-looking statements. The REIT makes no representation or warranty (express or implied) about the accuracy of any such forward-looking statements. These statements are based on a number of assumptions involving the judgment of management.

The appraisal methodology for the Appraised Properties assumes the properties realize the projected net operating income and expected exit cap rates and that investors would be willing to invest in such properties at yields equal to the expected discount rates. Though the appraisals of the Appraised Properties, with respect to Duff & Phelps, and the valuation estimates used in calculating the estimated NAV per share, with respect to the Advisor and the REIT, are the respective party’s best estimates as of September 30, 2018 or December 6, 2018, as applicable, the REIT can give no assurance in this regard. Even small changes to these assumptions could result in significant differences in the appraised values of the Appraised Properties and the estimated NAV per share. These statements also depend on factors such as: future economic, competitive and market conditions; the REIT’s ability to maintain occupancy levels and rental rates at its real estate properties; and other risks identified in Part I, Item IA of the REIT’s Annual Report on Form 10-K for the year ended December 31, 2017, and Part II, Item 1A of the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2018, each as filed with the SEC. Actual events may cause the value and returns on the REIT’s investments to be less than that used for purposes of the REIT’s estimated NAV per share.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181218005536/en/

CONTACT: Media:

Janelle Joseph

Prosek Partners for KBS

(646) 818-9119

jjoseph@prosek.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES REIT FINANCE CONSTRUCTION & PROPERTY OTHER CONSTRUCTION & PROPERTY

SOURCE: KBS Strategic Opportunity REIT II, Inc.

Copyright Business Wire 2018.

PUB: 12/18/2018 10:06 AM/DISC: 12/18/2018 10:06 AM

http://www.businesswire.com/news/home/20181218005536/en

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