KBS Growth & Income REIT Doubts it can continue as a “Going Concern”
The White Law Group continues to investigate the liability that some broker dealers may have for unsuitably recommending KBS Growth & Income REIT to investors.
KBS Growth & Income REIT is a publicly registered non-traded real estate investment trust formed in January 2015 focused on the office sector. According to a recent quarterly filing as of September 30, 2022, the company confirms it continues to struggle and has doubts as to whether if can “continue as a going concern.”
Last year we reported that the REIT suspended its private placement offering and terminated the company’s distribution reinvestment plan reportedly to pursue a liquidation strategy.
Unfortunately for investors, the REIT’s portfolio consisting of four office properties, has seen its occupancy decline from 90.4% as of Dec. 31, 2020, to 73.1% as of Sept. 30, 2022, and as tenant leases continue to expire, those numbers could continue to decline, causing a decrease in both cash flow from operations and the market value of its properties. The company noted in the filing that its board of directors is reviewing strategic alternatives for a “plan of liquidation” to dissolve the company.
KBS Growth and Income REIT notes that it may not be able to refinance near term loan maturities under current terms and it may be required to pay down a portion of the maturing debt in order to refinance the loans. The company reportedly notes that it currently lacks the required cash-on-hand to make such payments, or to invest the substantial amount that may be required for capital leasing costs to re-tenant their properties. It is possible the lenders could foreclose on the assets that have been pledged as collateral, fi they are unable to refinance the loans.
Filing a Complaint against your Brokerage Firm
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.
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.
To learn more, see: KBS Growth & Income REIT Inc. – Big Losses for Investors
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 Seattle, Washington.
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